Sunday, February 24, 2019

3 Stocks That Have Doubled, and Still Have Room to Grow

Rapid growth has already sent shares of Invitae (NYSE:NVTA), Wix.com (NASDAQ:WIX), and Canada Goose (NYSE:GOOS) skyrocketing. But it may still be the early innings for each of them, according to these three Motley Fool contributors. The potential to develop existing markets more deeply could cause sales and share prices to continue climbing at all three companies. Read on as these Fool.com contributors explain how:

Technological advances are making Invitae's genetic screening more useful, less expensive, and more popular. New web tools could accelerate growth at Wix.com. Direct-to-consumer sales could be a boon to apparel maker Canada Goose. A man with a jetpack soaring into the sky.

Image source: Getty Images.

Get in on genetic testing

Todd Campbell (Invitae): The age of personalized medicine is fast approaching, and Invitae's genetic screening tools could be a key cog in its success.

Invitae is already enjoying rapid growth because of increased demand from patients and would-be parents interested in genetic insights. The company's test volume more than doubled in 2018, and because average revenue per test improved to about $500 (excluding one-time Medicare payments), Invitae's revenue increased 117% to $148 million last year. In 2019, the company expects its growth will continue, so it's guiding for revenue of $220 million.

The costs associated with completing its tests are falling as its test volume increases. The company's cost of goods sold per sample declined 24% year over year to below $250 in the fourth quarter, and that helped gross margin increase to 53% last quarter from 33% in Q4 2017.

Invitae is losing money because it's plowing money back into its products to make them more valuable. Those losses are likely to continue for a while, but the sheer size of Invitae's addressable market suggests it could be money well spent. For instance, over 1.7 million Americans every year receive a cancer diagnosis, and many of them could benefit from genetic screening. As Invitae's tests become more robust, providing insight into increasingly more indications, its addressable market could someday be everybody.

Why surf the web when you can be part of it?

Nicholas Rossolillo (Wix.com): Even though shares of website-building phenom Wix.com fell by double digits after reporting fourth-quarter 2018 results, the stock has still nearly doubled in value since the beginning of 2018. And for good reason: Revenue climbed 42% on the year, and free cash flow (money left over after basic operations are paid for and after purchase of property and equipment) increased 44% to $102 million.

The pullback following the earnings report could be the buying opportunity some investors were waiting for. There was some disappointment in 2019 guidance -- revenue is expected to grow 25% to 26% in the first quarter and on the year -- but management said that all the growth it expects to realize from new initiatives is not fully factored into the numbers. Those initiatives include things like a new online order and payment system, customer communications and management tools, and enhancements to increase website speeds. Besides, who's going to complain about expansion north of 20%, especially coming from a company that is now hauling in over $600 million a year in sales?

Plus, as Wix.com adds more users to its website development and management services -- everyone from small personal blog writers to aspiring e-commerce stores to established enterprises -- it's finding new ways to monetize that user base. As it does so, the story is becoming less about growth and more about profitability. Thus, even though the 25% to 26% guidance for 2019 is a deceleration from years past, free cash flow is expected to shoot up at least another 33% to $135 million.

Wix.com is still a fast-growing internet company with lots of room left to grow -- even though it has already handsomely rewarded shareholders.

A golden egg surrounded by $100 bills.

Image source: Getty Images.

Direct to the consumer, with a fleet of flagships

Jamal Carnette, CFA (Canada Goose): Canada Goose has more than doubled, and shares are up approximately 300% since its 2017 IPO. Despite the strong performance, a recent sell-off presents an opportunity to scoop up shares of this luxury coat and apparel market on sale.

Canada Goose shares tanked 33% in December as concerns about a boycott in China scared investors. China's anger was tied to Canada's arrest of Huawei CFO Meng Wanzhou at the behest of the United States. The bearishness, while understandable because CEO Dani Reiss summed up the opportunity in China as "massive," appeared overstated. Later, Canada Goose went on to beat analyst estimates in its fiscal third quarter and even raised full-year guidance for its top and bottom lines.

Still, the long-term drivers for growth remain strong. During the third quarter, total revenue increased by 50% over the prior year. More importantly, revenue in the higher-margin direct-to-consumer (DTC) segment increased by 75% during the period. Canada Goose has doubled down on growing the DTC channel, improving its online store and building out its single-brand retail stores (dubbed flagships), opening five alone during the quarter.

Despite the focus, the company has only 12 flagship stores at this point. It has only scratched the surface on brand recognition and in its massive China opportunity. Growth-oriented investors would be well suited to try Canada Goose on for size.

Saturday, February 23, 2019

Here’s How AMD Is Turning the Tables on NVIDIA

Advanced Micro Devices (NASDAQ:AMD) shares spiked big time after the company's fourth-quarter results came out in late January, which might seem a bit surprising given its lukewarm performance and outlook. AMD's top line missed expectations and its earnings simply matched up to what Wall Street was anticipating.

Moreover, the company's first-quarter revenue estimate is way behind what Wall Street was expecting. The only positive from AMD's side was that it expects full-year 2019 revenue to increase in high single digits as compared to the market's expectation of a 5.6% annual jump. So why did this moderate performance lead to such a big positive reaction from investors? Here's a possible explanation.

Data center momentum

The bad news was already priced into AMD stock going into its latest earnings report. The company had warned investors last year that an oversupply of graphics cards would knock the wind out of its sails and bring an end to its days of rapid growth. So Wall Street was prepared for a bleak near-term outlook as AMD's retail partners are still working through elevated inventory levels as the cryptocurrency craze has waned.

The inside of a data center.

Image source: Getty Images.

But AMD said that its graphics revenue grew sequentially thanks to "strong Radeon data center GPU sales." The statement seems to have struck a chord with AMD investors as rival NVIDIA (NASDAQ:NVDA) has been making waves in this segment, striking deals with major cloud and server players for its Tesla graphics cards.

But NVIDIA's latest revenue warning provides a hint that AMD could be gaining against its biggest rival. NVIDIA slashed its fourth-quarter revenue guidance to the tune of $500 million, citing weakness in the gaming and data center businesses. The company said that it saw a drop in data center deals last quarter on the back of a cautious spending approach by customers, but AMD was singing a different tune.

In fact, revenue from AMD's computing and graphics segment was up 9% year over year -- to $986 million -- despite the headwinds in the GPU (graphics processing unit) market. Analysts were originally expecting the segment to generate $939 million in revenue, so data center sales seem to have played a big role in the segment's better-than-expected performance.

Looking ahead, AMD's data center business can get stronger due to its 7-nanometer (nm) data center accelerators. The company launched the 7nm Radeon Instinct data center GPU accelerators in November last year, claiming that it was the first one to launch data center GPUs based on this manufacturing platform. NVIDIA's latest Tesla data center GPU is based on the Turing architecture that uses the 12nm manufacturing process.

AMD's smaller manufacturing process means that its graphics cards pack more computing power and consume less electricity, which is probably why it has been able to bag some big names that had been using NVIDIA chips. The likes of Microsoft, Amazon, and Baidu have signed up to use AMD's data center chips, so it isn't surprising to see AMD expects sales of Radeon data center GPUs to increase in the coming quarters.

Gaming to get back on track?

Gaming has been a sore point for both NVIDIA and AMD in recent quarters because of the cryptocurrency-related fallout, but the latter believes that this business will soon be back on track. AMD believes that sales of gaming GPUs will contribute to its overall growth this year as it brings more 7nm chips to the market.

In fact, it is quite possible that AMD could hurt NVIDIA in the gaming hardware space by launching competing products at affordable prices. Such a strategy could work in AMD's favor as NVIDIA has made its high-end cards pricier. So, if gaming enthusiasts are looking to stretch their dollar, then AMD will be the way to go.

Moreover, AMD will be pushing the envelope on the product development front by launching the 7nm Navi graphics cards from the second quarter onward. NVIDIA, meanwhile, is expected to bring its own 7nm chips to the market in 2020, giving AMD a one-year head start. The technology advantage could play massively in AMD's favor as its latest 7nm Radeon VII GPU can match NVIDIA's RTX 2080 in performance terms, according to official benchmarks, but costs $100 less.

Of course, NVIDIA packs more technology such as ray tracing, but AMD has clarified that it is working to integrate the same into its graphics cards.

In the end, market share gains over NVIDIA will be a big deal for AMD given the sway the former holds over the graphics card market. This is probably why investors are excited about AMD, because management seems to be promising progress at a time when its archrival is singing a different tune.

Thursday, February 21, 2019

Best Medical Stocks To Watch For 2019

tags:HEES,ORAN,TUP,NFBK,RARE,SERV,

VentriPoint Diagnostics states, "It's time for the whole heart." The medical device company has redesigned VMS to meet the demands of every market. Preparing to move beyond the Right and Left Ventricle to become the first platform to offer 3D volumes for all cardiac chambers, with accuracy equivalent to MRI. All from the convenience of 2D Ultrasound. The Cleveland Clinic quipped, "The VMS™ will enable us to better image the hearts of patients at risk for pulmonary hypertension and is a wonderful alternative to MRI." The Cleveland Clinic is the second-highest rated hospital in the United States.

Rapid measurement of right ventricular volume and function in patients with congenital heart disease is the foundation of Knowledge Based Reconstruction. The same technique also measures left ventricular volume. The measurements are made from either three-dimensional (3-D) ultrasound or magnetic resonance images (MRI). Physician monitoring detects when the heart begins to fail. The primary advantage to Knowledge Based Reconstruction is that it will help pediatricians choose the best timing for surgery. The product can also be used to evaluate how well patients respond to treatment.

Best Medical Stocks To Watch For 2019: H&E Equipment Services Inc.(HEES)

Advisors' Opinion:
  • [By Shane Hupp]

    H&E Equipment Services (NASDAQ: HEES) and WillScot (NASDAQ:WSC) are both small-cap industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

  • [By Joseph Griffin]

    SG Americas Securities LLC trimmed its holdings in shares of H&E Equipment Services, Inc. (NASDAQ:HEES) by 42.9% in the 1st quarter, Holdings Channel reports. The firm owned 4,026 shares of the industrial products company’s stock after selling 3,030 shares during the quarter. SG Americas Securities LLC’s holdings in H&E Equipment Services were worth $155,000 at the end of the most recent quarter.

  • [By Peter Graham]

    A long term performance chart shows shares of United Rentals giving a similar performance but also pulling away from small cap peer H&E Equipment Services, Inc (NASDAQ: HEES):

  • [By Logan Wallace]

    H&E Equipment Services (NASDAQ: HEES) and WillScot (NASDAQ:WSC) are both small-cap industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Best Medical Stocks To Watch For 2019: Orange(ORAN)

Advisors' Opinion:
  • [By Shane Hupp]

    Bank of America Corp DE boosted its holdings in Orange SA (NYSE:ORAN) by 5.9% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 5,916,094 shares of the technology company’s stock after purchasing an additional 330,125 shares during the quarter. Bank of America Corp DE owned approximately 0.22% of Orange worth $98,621,000 at the end of the most recent quarter.

  • [By Anders Bylund, Timothy Green, and Dan Caplinger]

    The trick is to separate high-quality income generators from their lower-quality peers. So we asked a few of your fellow investors here at The Motley Fool to share their best dividend ideas with yields of 4% or more. Read on to see why they recommend tech titan International Business Machines (NYSE:IBM), international telecom Orange (NYSE:ORAN), and energy giant ExxonMobil (NYSE:XOM).

  • [By Stephan Byrd]

    Get a free copy of the Zacks research report on Orange (ORAN)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Shane Hupp]

    ValuEngine downgraded shares of Orange (NYSE:ORAN) from a buy rating to a hold rating in a research report released on Monday morning.

    ORAN has been the topic of several other reports. Zacks Investment Research cut Orange from a hold rating to a sell rating in a research report on Wednesday, April 25th. BNP Paribas raised Orange from an underperform rating to a neutral rating in a research report on Tuesday, January 23rd. Two analysts have rated the stock with a sell rating, three have given a hold rating and two have given a buy rating to the stock. Orange has a consensus rating of Hold and an average price target of $19.00.

  • [By Joseph Griffin]

    Get a free copy of the Zacks research report on Orange (ORAN)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

Best Medical Stocks To Watch For 2019: Tupperware Brands Corporation(TUP)

Advisors' Opinion:
  • [By Logan Wallace]

    LSV Asset Management increased its stake in shares of Tupperware Brands (NYSE:TUP) by 26.3% in the first quarter, according to its most recent 13F filing with the SEC. The firm owned 99,275 shares of the company’s stock after purchasing an additional 20,700 shares during the period. LSV Asset Management owned approximately 0.19% of Tupperware Brands worth $4,802,000 at the end of the most recent reporting period.

  • [By Logan Wallace]

    LPL Financial LLC increased its position in shares of Tupperware Brands Co. (NYSE:TUP) by 9.5% during the 1st quarter, HoldingsChannel reports. The fund owned 102,259 shares of the company’s stock after purchasing an additional 8,848 shares during the period. LPL Financial LLC’s holdings in Tupperware Brands were worth $4,947,000 at the end of the most recent reporting period.

  • [By Shane Hupp]

    Allianz Asset Management GmbH trimmed its holdings in shares of Tupperware Brands Co. (NYSE:TUP) by 71.0% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 21,109 shares of the company’s stock after selling 51,757 shares during the quarter. Allianz Asset Management GmbH’s holdings in Tupperware Brands were worth $1,021,000 as of its most recent SEC filing.

Best Medical Stocks To Watch For 2019: Northfield Bancorp Inc.(NFBK)

Advisors' Opinion:
  • [By Stephan Byrd]

    Media coverage about Northfield Bancorp (NASDAQ:NFBK) has trended somewhat positive recently, according to Accern Sentiment Analysis. Accern rates the sentiment of media coverage by monitoring more than 20 million blog and news sources. Accern ranks coverage of publicly-traded companies on a scale of -1 to 1, with scores closest to one being the most favorable. Northfield Bancorp earned a media sentiment score of 0.10 on Accern’s scale. Accern also gave press coverage about the bank an impact score of 46.1080127060523 out of 100, meaning that recent media coverage is somewhat unlikely to have an effect on the stock’s share price in the next several days.

  • [By Shane Hupp]

    Shares of Northfield Bancorp Inc. (NASDAQ:NFBK) have received a consensus recommendation of “Hold” from the eight brokerages that are covering the company, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation and six have assigned a hold recommendation to the company. The average twelve-month target price among brokers that have covered the stock in the last year is $17.50.

  • [By Logan Wallace]

    Northfield Bancorp Inc. (NASDAQ:NFBK) EVP Kenneth J. Doherty sold 2,449 shares of the firm’s stock in a transaction on Thursday, May 10th. The stock was sold at an average price of $16.19, for a total value of $39,649.31. Following the completion of the transaction, the executive vice president now owns 198,742 shares in the company, valued at $3,217,632.98. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.

  • [By Logan Wallace]

    Shares of Northfield Bancorp Inc (NASDAQ:NFBK) have earned a consensus rating of “Hold” from the seven research firms that are presently covering the company, Marketbeat reports. One research analyst has rated the stock with a sell rating and five have issued a hold rating on the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $17.25.

  • [By Logan Wallace]

    These are some of the news stories that may have impacted Accern Sentiment’s scoring:

    Get Northfield Bancorp alerts: Head-To-Head Contrast: Northfield Bancorp (NFBK) & The Competition (americanbankingnews.com) Northfield Bancorp (NFBK) and Its Competitors Critical Survey (americanbankingnews.com) Head to Head Survey: Northfield Bancorp (NFBK) versus The Competition (americanbankingnews.com) Northfield Bancorp (NFBK) Stock Rating Lowered by BidaskClub (americanbankingnews.com) Northfield Bancorp (NFBK) & Its Rivals Head to Head Analysis (americanbankingnews.com)

    Shares of Northfield Bancorp opened at $15.96 on Thursday, MarketBeat reports. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.71. Northfield Bancorp has a twelve month low of $15.88 and a twelve month high of $15.92. The firm has a market capitalization of $777.27 million, a P/E ratio of 21.86, a price-to-earnings-growth ratio of 2.37 and a beta of 0.35.

  • [By Joseph Griffin]

    BidaskClub upgraded shares of Northfield Bancorp (NASDAQ:NFBK) from a hold rating to a buy rating in a research note released on Saturday morning.

    Other equities analysts also recently issued reports about the stock. TheStreet raised shares of Northfield Bancorp from a c+ rating to a b rating in a research note on Thursday, April 26th. ValuEngine downgraded shares of Northfield Bancorp from a hold rating to a sell rating in a research note on Tuesday, June 12th. Zacks Investment Research downgraded shares of Northfield Bancorp from a buy rating to a hold rating in a research note on Thursday, May 17th. Finally, Keefe, Bruyette & Woods reaffirmed a hold rating and set a $18.50 target price on shares of Northfield Bancorp in a research note on Tuesday, February 27th. Six analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. Northfield Bancorp presently has an average rating of Hold and an average price target of $17.60.

Best Medical Stocks To Watch For 2019: Ultragenyx Pharmaceutical Inc.(RARE)

Advisors' Opinion:
  • [By Shane Hupp]

    Ultragenyx Pharmaceutical Inc (NASDAQ:RARE) Director Matthew K. Fust sold 6,319 shares of the business’s stock in a transaction that occurred on Wednesday, May 30th. The shares were sold at an average price of $72.00, for a total value of $454,968.00. Following the transaction, the director now owns 8,750 shares of the company’s stock, valued at $630,000. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website.

  • [By Joseph Griffin]

    BidaskClub upgraded shares of Ultragenyx Pharmaceutical (NASDAQ:RARE) from a hold rating to a buy rating in a report released on Monday.

    A number of other brokerages have also recently weighed in on RARE. JPMorgan Chase restated an overweight rating and issued a $66.00 price objective (down from $68.00) on shares of Ultragenyx Pharmaceutical in a research note on Wednesday, February 21st. Evercore ISI upgraded shares of Ultragenyx Pharmaceutical from an in-line rating to an outperform rating in a research note on Monday, January 22nd. Stifel Nicolaus restated a buy rating and issued a $74.00 price objective (down from $85.00) on shares of Ultragenyx Pharmaceutical in a research note on Wednesday, February 21st. ValuEngine upgraded shares of Ultragenyx Pharmaceutical from a sell rating to a hold rating in a research note on Wednesday, April 4th. Finally, Wedbush reiterated a positive rating and set a $71.00 target price (up from $64.00) on shares of Ultragenyx Pharmaceutical in a research note on Wednesday, April 18th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and sixteen have issued a buy rating to the company. Ultragenyx Pharmaceutical presently has a consensus rating of Buy and an average price target of $69.76.

  • [By Shane Hupp]

    These are some of the media headlines that may have effected Accern’s scoring:

    Get Ultragenyx Pharmaceutical alerts: Burosumab Improves Outcomes in Children with XLH in Phase 2 Trial (raredr.com) RARE Stock Is on the Verge of Breaking Out Toward Higher Prices (profitconfidential.com) Burosumab may benefit children with X-linked hypophosphatemia (medicalxpress.com) A Look Inside the Quant Data For Ultragenyx Pharmaceutical Inc. (NasdaqGS:RARE) (parkcitycaller.com) Ultragenyx Pharmaceutical Inc. (RARE)- Stock in the Trader’s Radar (nasdaqfortune.com)

    A number of research firms have recently weighed in on RARE. ValuEngine raised Ultragenyx Pharmaceutical from a “hold” rating to a “buy” rating in a report on Saturday. BidaskClub raised Ultragenyx Pharmaceutical from a “buy” rating to a “strong-buy” rating in a report on Saturday, May 19th. Barclays raised Ultragenyx Pharmaceutical from an “equal weight” rating to an “overweight” rating and lifted their target price for the stock from $62.00 to $74.00 in a report on Friday, May 11th. Goldman Sachs Group began coverage on Ultragenyx Pharmaceutical in a report on Thursday, May 10th. They set a “neutral” rating and a $63.00 target price for the company. Finally, Zacks Investment Research downgraded Ultragenyx Pharmaceutical from a “hold” rating to a “sell” rating in a report on Tuesday, January 30th. One research analyst has rated the stock with a sell rating, four have issued a hold rating, seventeen have given a buy rating and one has given a strong buy rating to the stock. The company has an average rating of “Buy” and a consensus target price of $70.06.

  • [By Shane Hupp]

    Ultragenyx Pharmaceutical (NASDAQ:RARE) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “Ultragenyx launched its second drug, Crysvita, in the United States to treat X-linked hypophosphatemia (XLH) in April. We are optimistic on the drug’s uptake. The drug was also approved in the EU in February on a conditional basis. In May, the company announced positive phase II data from the drug in pediatric setting, but according to the FDA those were not sufficient to support an NDA. Thus, the company is in discussions with FDA and EMA, which would provide further clarity regarding whether an additional study would be required for the approval. The company also remains focused on its two-gene therapy programs — DTX301 for ornithine transcarbamylase deficiency and DTX401 for glycogen storage disease type Ia. However, developmental or regulatory setbacks could result in higher operating expenses and the need for additional capital. Loss estimates have narrowed ahead of  Q3 earnings release.”

  • [By Chris Lange]

    Ultragenyx Pharmaceutical Inc. (NASDAQ: RARE) is expected to report Phase 2 data from all its tumor-induced osteomalacia patients. Shares of Ultragenyx closed Friday at $76.87, in a 52-week range of $41.67 to $86.10 and with a consensus analyst target of $68.74.

  • [By Shane Hupp]

    Get a free copy of the Zacks research report on Ultragenyx Pharmaceutical (RARE)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

Best Medical Stocks To Watch For 2019: ServiceMaster Global Holdings, Inc.(SERV)

Advisors' Opinion:
  • [By Rich Smith]

    The clock reads 11:45 AM EDT, and shares of ServiceMaster Global Holdings (NYSE:SERV) are either down 34% or maybe down less than 2%, depending on whom you ask. Google Finance says the former, while Yahoo! Finance reports the latter. 

  • [By Rich Smith]

    That's how ServiceMaster CEO Nik Varty describes the future of his own company, ServiceMaster Global Holdings (NYSE:SERV), with its stable of brands like Terminix, Furniture Medic, and Merry Maids. It's also the future he sees for the company ServiceMaster just spun off: Frontdoor (UNKNOWN:UNKNOWN), which inherited probably the company's best-known brand, American Home Shield (AHS). And already, some analysts on Wall Street are nodding their heads.

  • [By Stephan Byrd]

    Get a free copy of the Zacks research report on Servicemaster Global (SERV)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Shane Hupp]

    Servicemaster Global Holdings Inc (NYSE:SERV) hit a new 52-week high and low during trading on Thursday . The company traded as low as $59.70 and last traded at $59.03, with a volume of 15886 shares trading hands. The stock had previously closed at $59.62.

  • [By Max Byerly]

    ServiceMaster (NYSE:SERV)’s share price reached a new 52-week high and low during trading on Tuesday . The company traded as low as $55.63 and last traded at $54.76, with a volume of 207508 shares traded. The stock had previously closed at $55.35.

Wednesday, February 20, 2019

Trade Facebook Stock With Confidence

So far, 2019 is starting the opposite manner of how 2018 ended. The major difference is that this year, sentiment on Wall Street flipped back to positive. Investors are buying every dip and leaving no room for the sellers to gain momentum. Without any new, nasty geopolitical headlines, the instinct to “sell the rip” died and gave resurgence to the buy-the-dip crowd. Investors are still not out of the woods, however, as there are a slew of headlines and deadlines looming over the next few weeks. The most major of which is the U.S. political showdown and the tariff headlines from China.

Facebook (NASDAQ:FB), unlike most other stocks, has the added risk of data breach headlines. Not that the other companies are not also vulnerable to hacking, but because Facebook has already suffered a major incident last year and used up its free pass. So, from now on, it’s on notice, and it cannot afford another one.

By “free pass,” I don’t mean that it didn’t suffer any consequences. FB stock fell 40% from the July of 2018 high to the Christmas lows. And its management had to embark on a public relations tour, which included testifying in front of the governing bodies to justify its existence.

FB also had to hire 20,000 people to sensor its streams and limit the possibility of errant or criminal content. This worries me a bit because more eyeballs sifting through data means higher probabilities of leaks.

The good news is that so far, the added expense hasn’t crippled the operational results. More importantly, neither the users of the Facebook platform nor the advertisers have left the company. I personally know friends who are heavy advertisers and they still prefer using Facebook over Alphabet (NASDAQ:GOOGL).

This is why, recently, Facebook stock has been strong. It rebounded 39% off the December lows. But investors are still on edge. They react negatively, selling any FB headline related to penalties or breaches. The key point to this is how sustainable are the dips.

So far those interruptions in the chart have been minor and short. However, the earnings spike reaction left a giant gap below from $151 per share. So those who enter the stock long here may have to contend with the magnetism from this gap. Not every one of those gaps will fill, but they do leave the stock more vulnerable than normal. Add to it the macro-headline threat and, this week, FB stock has the potential of having an even worse week than last.


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Along the way, there is the zone near $156 per share that could lend support if the selling persists. It played a key role last October, so there may be more battles around it this time around, too. So the dip to fill the gap may not even happen now but I need to know that the scenario is there.

In the long run, I bet that the data issues will die down … if we intend on staying connected, we have to accept the vulnerability of our data and privacy. Especially since Facebook’s situation wasn’t actually a breach. Rather, one of its clients breached Facebook’s terms of service. Facebook’s mistake was not telling the world about it at the time it happened.

Bottom Line on FB Stock

Nevertheless, for now, I have to remain nimble when investing in Facebook stock. Which means that I have to become a short-term trader if I want to avoid big draw-downs from headlines. So I use the aforementioned levels to watch for support.

On the way up, the opportunity levels which are also resistance are at $164.50, $166.20 and $168.60. If the bulls can take FB stock above $172.60, they’d invite more momentum buyers for a much bigger rally. This will probably coincide with positive headlines from the tariff negotiations with China.

Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and 

Tuesday, February 19, 2019

3 Warren Buffett Stocks Worth Buying Now

Warren Buffett's Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B) is one of the world's biggest conglomerates. It owns a slate of large companies, including GEICO, and it invests about $200 billion in publicly traded companies. Buffett's significant success over the past four decades suggests following in his footsteps is wise, but that doesn't necessarily mean now's the right time to buy every stock he owns.

To figure out which holdings might be the best stocks to buy today, we asked three Motley Fool contributors to take a closer look at Berkshire's holdings and then give us their ideas. Here's why they think Suncor Energy (NYSE:SU), Delta Air Lines (NYSE:DAL), and Apple (NASDAQ:AAPL) could be top stocks to buy now. 

Warren Buffett at an investor conference.

IMAGE SOURCE: THE MOTLEY FOOL.

Todd Campbell (Suncor Energy): Buffett is best known for his long-term, buy-and-hold philosophy, but that doesn't mean he plans to own forever everything he buys. For instance, he has a history of opportunistically buying and selling cyclical companies, like energy stocks, rather than owning them through thick and thin.

In the fourth quarter, Suncor Energy showed up in Berkshire Hathaway's portfolio as a new buy. It's a relatively small position at $300 million, but it could become a bigger position in the future.

A Canadian company that explores, produces, transports, and refines crude oil and natural gas into gas and chemicals, Suncor Energy's stock tumbled significantly in the fourth quarter of 2018 as a decline in crude oil prices took a toll on the industry. The company's shares have bounced back from their low of $26 in December, but they are still significantly below their $42 peak last August and there's reason to be optimistic that additional gains are coming. 

First, the company's Fort Hills oil sands play began producing last year and its expected 40-year life span should help Suncor deliver steady, investor-friendly cash flow for the foreseeable future. Fort Hills was in part responsible for Suncor's production reaching a record 831,000 barrels of oil equivalent per day (BOE/D) in the fourth quarter, up from 736,400 BOE/D last year.

Second, the company still delivered fourth-quarter revenue of $8.94 billion, despite weak commodity prices. Fair-value writedowns caused the company to lose money last quarter, but Suncor still generated over 3 billion Canadian dollars in operating cash flow in the period so it has plenty of financial flexibility.

Finally, despite the headwinds, Suncor was still able to increase its dividend by 17% recently, and it added CA$2 billion to its share repurchase program, too. Clearly, management's confident about its prospects.

Admittedly, there's no knowing if Buffett will continue buying Suncor Energy, but this company's 5% plus dividend yield and the fact that oil prices have rebounded from last quarter's lows make me think this stock is a buy. 

Airlines won't be grounded forever

Nicholas Rossolillo (Delta Air Lines): Shares of Delta Air Lines were humbled over the last few months. The stock is down 10% since the beginning of 2018, and investors were underwhelmed after the company reported full-year results. The top Buffett holding fell hard on an increasingly gloomy economic outlook, and flattish guidance for the first quarter of 2019 seemed to back up evidence that the global economy is slowing down. Add to the mix Amazon.com's (NASDAQ:AMZN) launch of its own air delivery system -- a key area of growth for passenger airlines -- and it all equated to a bloody nose for Delta at the end 2018.

For value investors, though, all of that angst means a buying opportunity is nigh. While the company expects revenue per average seat mile (RASM) to grow by only 1% to 3% in the year ahead, it does forecast earnings-per-share growth of 15%. It's a much slower pace than what was set last year (4% and 19%, respectively), but growth is growth. For the first quarter, results should be even lower than that as a result of a strong U.S. dollar weighing down income overseas and the U.S. government shutdown impacting passenger travel. But Delta management was confident that the negativity will subside. 

Nevertheless, Wall Street's worries that a stale first quarter will carry over into the rest of 2019 is all the rage right now, and as a result, the stock trades at a lowly 7.1 forward price to earnings. That's pricing in quite a bit of risk that may or may not transpire. But if Delta is able to manage its headwinds and deliver another year of growth -- even a modest year of growth -- shares could be a real bargain. Along the way, shareholders also get a decent 2.8% dividend payout. Now's the time to add this Buffett stock to your watchlist.  

Millennials using electronic devices while sitting on a floor.

IMAGE SOURCE: GETTY IMAGES.

Buffett proves rules are made to be broken

Jamal Carnette, CFA (Apple): Buffett has often said he has an aversion to investing in tech, even quipping, "If there's lots of technology, we won't understand it." Buffett's been true to his word, only owning a few tech companies in his portfolio.

However, there's one exception to this rule: Apple. And it's rather notable considering the size of the investment. Berkshire Hathaway owns 5% of Apple's outstanding shares and the stock is approximately 22% of Berkshire's portfolio value. Buffett has rapidly increased Berkshire's investment in Apple, from 9.8 million shares in early 2016 to 250 million as of Dec. 31.

Buffett's rationale is simple: He considers Apple less of a tech stock and more of a consumer stock. Apple's massive installed base will allow the company to sell services for years to come. We're starting to see just how important services are becoming to Apple's bottom line. Not only is services revenue growing at 19% per year, but it's nearly twice as profitable due to significantly higher gross margins (62.8% vs. 38%).

CEO Tim Cook continues to look for ways to monetize that installed base, recently working with publishers to offer a subscription-based news service and content providers for a streaming service while growing Apple Music and transactions under Apple Pay. Despite Buffett's legendary discipline, he's smart enough to know when rules should be broken -- Apple stock has more gains in store.

Monday, February 18, 2019

$0.34 Earnings Per Share Expected for Incyte Co. (INCY) This Quarter

Equities analysts predict that Incyte Co. (NASDAQ:INCY) will announce earnings of $0.34 per share for the current quarter, Zacks Investment Research reports. Four analysts have issued estimates for Incyte’s earnings, with the lowest EPS estimate coming in at $0.19 and the highest estimate coming in at $0.47. Incyte posted earnings of ($0.01) per share in the same quarter last year, which would indicate a positive year-over-year growth rate of 3,500%. The firm is expected to issue its next quarterly earnings report on Tuesday, May 7th.

According to Zacks, analysts expect that Incyte will report full year earnings of $2.08 per share for the current fiscal year, with EPS estimates ranging from $1.62 to $2.41. For the next year, analysts anticipate that the business will post earnings of $2.78 per share, with EPS estimates ranging from $1.85 to $3.68. Zacks’ EPS averages are a mean average based on a survey of analysts that that provide coverage for Incyte.

Get Incyte alerts:

Incyte (NASDAQ:INCY) last announced its quarterly earnings data on Thursday, February 14th. The biopharmaceutical company reported $0.40 EPS for the quarter, beating the Zacks’ consensus estimate of $0.25 by $0.15. Incyte had a negative net margin of 6.07% and a positive return on equity of 2.23%. The company had revenue of $528.40 million for the quarter, compared to the consensus estimate of $485.72 million. During the same period in the prior year, the firm posted $0.02 EPS. The company’s quarterly revenue was up 19.0% compared to the same quarter last year.

INCY has been the topic of a number of recent analyst reports. Goldman Sachs Group raised shares of Incyte from a “buy” rating to a “conviction-buy” rating in a research report on Tuesday, January 15th. Raymond James restated a “buy” rating and issued a $85.00 target price on shares of Incyte in a report on Thursday, October 25th. Guggenheim upgraded shares of Incyte from a “neutral” rating to a “buy” rating in a report on Thursday, January 3rd. Cantor Fitzgerald restated a “hold” rating and issued a $74.00 target price (up previously from $73.00) on shares of Incyte in a report on Sunday, October 21st. Finally, JPMorgan Chase & Co. restated a “buy” rating on shares of Incyte in a report on Thursday, January 10th. One research analyst has rated the stock with a sell rating, seven have given a hold rating, fourteen have given a buy rating and two have assigned a strong buy rating to the stock. The company presently has an average rating of “Buy” and a consensus target price of $90.73.

In related news, insider Paul Trower sold 9,187 shares of the stock in a transaction on Monday, January 7th. The shares were sold at an average price of $75.00, for a total transaction of $689,025.00. Following the completion of the sale, the insider now owns 23,359 shares in the company, valued at approximately $1,751,925. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Barry P. Flannelly sold 1,000 shares of the stock in a transaction on Monday, January 28th. The stock was sold at an average price of $80.00, for a total transaction of $80,000.00. The disclosure for this sale can be found here. In the last quarter, insiders have sold 81,354 shares of company stock valued at $6,058,524. 17.20% of the stock is owned by company insiders.

Large investors have recently modified their holdings of the stock. Bremer Trust National Association acquired a new stake in Incyte during the 4th quarter worth $42,000. Bronfman E.L. Rothschild L.P. lifted its stake in shares of Incyte by 46.3% in the 4th quarter. Bronfman E.L. Rothschild L.P. now owns 730 shares of the biopharmaceutical company’s stock worth $46,000 after acquiring an additional 231 shares during the period. Edge Wealth Management LLC acquired a new stake in shares of Incyte in the 4th quarter worth $64,000. Ledyard National Bank acquired a new stake in shares of Incyte in the 4th quarter worth $80,000. Finally, ETF Managers Group LLC lifted its stake in shares of Incyte by 15.8% in the 4th quarter. ETF Managers Group LLC now owns 1,564 shares of the biopharmaceutical company’s stock worth $99,000 after acquiring an additional 213 shares during the period. Hedge funds and other institutional investors own 89.82% of the company’s stock.

Shares of NASDAQ:INCY traded up $0.73 during trading hours on Tuesday, reaching $84.15. The stock had a trading volume of 1,904,402 shares, compared to its average volume of 1,807,753. Incyte has a 1 year low of $57.00 and a 1 year high of $96.33. The company has a current ratio of 4.02, a quick ratio of 4.01 and a debt-to-equity ratio of 0.01. The company has a market cap of $17.91 billion, a PE ratio of 131.48, a P/E/G ratio of 1.04 and a beta of 1.34.

Incyte Company Profile

Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of proprietary therapeutics in the United States. It offers JAKAFI, a drug for the treatment of myelofibrosis and polycythemia vera cancers; and ICLUSIG, a kinase inhibitor for the treatment of chronic myeloid leukemia and philadelphia-chromosome positive acute lymphoblastic leukemia.

Featured Article: What is an SEC Filing?

Get a free copy of the Zacks research report on Incyte (INCY)

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Earnings History and Estimates for Incyte (NASDAQ:INCY)

Saturday, February 16, 2019

Top 10 Insurance Stocks To Watch For 2019

tags:AIG,TOP,WRB,PFG,PRU,AON, &l;p&g;&l;img class=&q;dam-image shutterstock size-large wp-image-1007282815&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/1007282815/960x0.jpg?fit=scale&q; data-height=&q;640&q; data-width=&q;960&q;&g; Shutterstock

I have a big problem with conventional personal financial planning. Unfortunately, it has little connection to what basic economics and, indeed, common sense recommends. As a consequence, it produces inappropriate spending, saving, insurance, and investment advice.

But before laying out my concerns, I need to disclose a major conflict of interest. My company, &l;a href=&q;http://www.economicsecurityplanning.com&q; target=&q;_blank&q;&g;www.economicsecurityplanning.com&l;/a&g;, markets economics-based personal financial planning software, which produces, I believe, far more appropriate guidance than conventional planning. Given this conflict, you may want to take what I say with a grain of salt. This said I believe my reaction to conventional financial planning is that of economists in general.

Top 10 Insurance Stocks To Watch For 2019: American International Group Inc.(AIG)

Advisors' Opinion:
  • [By Stephan Byrd]

    American International Group (NYSE:AIG)‘s stock had its “buy” rating reiterated by stock analysts at Wells Fargo & Co in a research note issued to investors on Wednesday. They presently have a $54.00 target price on the insurance provider’s stock. Wells Fargo & Co‘s price target indicates a potential upside of 33.12% from the stock’s current price.

  • [By Max Byerly]

    These are some of the media stories that may have effected Accern’s rankings:

    Get American International Group alerts: AIG’s loss for European business worsens in 2017 (businessinsurance.com) $1.26 EPS Expected for American International Group (AIG) This Quarter (americanbankingnews.com) UBS: Buy AIG After Earnings Estimates ‘Bottom Out’ (finance.yahoo.com) American International Group (AIG) Stock Rating Upgraded by UBS (americanbankingnews.com) American International Group (AIG) Receives Average Recommendation of “Hold” from Analysts (americanbankingnews.com)

    American International Group traded up $0.36, hitting $55.15, during mid-day trading on Friday, MarketBeat.com reports. The stock had a trading volume of 9,821,608 shares, compared to its average volume of 6,828,715. The company has a debt-to-equity ratio of 0.53, a current ratio of 0.27 and a quick ratio of 0.27. American International Group has a 1-year low of $49.57 and a 1-year high of $67.30. The firm has a market cap of $49.51 billion, a P/E ratio of 22.98, a PEG ratio of 1.01 and a beta of 1.24.

  • [By Motley Fool Transcribing]

    American International Group (NYSE:AIG) Q4 2018 Earnings Conference CallFeb. 14, 2019 8:00 a.m. ET

    Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:

    Operator 

  • [By Motley Fool Transcribers]

    American International Group Inc (NYSE:AIG)Q2 2018 Earnings Conference CallAug. 3, 2018, 8:00 a.m. ET

    Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:

    Operator

Top 10 Insurance Stocks To Watch For 2019: Topdanmark A/S (TOP)

Advisors' Opinion:
  • [By Max Byerly]

    TopCoin (CURRENCY:TOP) traded flat against the U.S. dollar during the one day period ending at 7:00 AM E.T. on September 8th. In the last seven days, TopCoin has traded flat against the U.S. dollar. TopCoin has a total market capitalization of $0.00 and $0.00 worth of TopCoin was traded on exchanges in the last day. One TopCoin coin can now be bought for about $0.0008 or 0.00000010 BTC on major cryptocurrency exchanges.

  • [By Logan Wallace]

    TopCoin (CURRENCY:TOP) traded down 15.4% against the dollar during the 1-day period ending at 7:00 AM E.T. on June 21st. During the last seven days, TopCoin has traded up 4% against the dollar. TopCoin has a market cap of $0.00 and approximately $123.00 worth of TopCoin was traded on exchanges in the last day. One TopCoin coin can currently be bought for about $0.0010 or 0.00000015 BTC on popular exchanges.

Top 10 Insurance Stocks To Watch For 2019: W.R. Berkley Corporation(WRB)

Advisors' Opinion:
  • [By Logan Wallace]

    Get a free copy of the Zacks research report on W. R. Berkley (WRB)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Joseph Griffin]

    Get a free copy of the Zacks research report on W. R. Berkley (WRB)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Logan Wallace]

    W. R. Berkley (NYSE: WRB) and State Auto Financial (NASDAQ:STFC) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

  • [By Logan Wallace]

    Standard Life Aberdeen plc increased its stake in shares of W. R. Berkley Corp (NYSE:WRB) by 56.6% in the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 15,374 shares of the insurance provider’s stock after purchasing an additional 5,555 shares during the period. Standard Life Aberdeen plc’s holdings in W. R. Berkley were worth $1,113,000 as of its most recent filing with the Securities & Exchange Commission.

Top 10 Insurance Stocks To Watch For 2019: Principal Financial Group Inc(PFG)

Advisors' Opinion:
  • [By Logan Wallace]

    Get a free copy of the Zacks research report on Principal Financial Group (PFG)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Max Byerly]

    Glenmede Trust Co. NA cut its holdings in Principal Financial Group Inc (NYSE:PFG) by 61.1% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 235,266 shares of the financial services provider’s stock after selling 369,372 shares during the period. Glenmede Trust Co. NA owned 0.08% of Principal Financial Group worth $12,458,000 as of its most recent SEC filing.

  • [By Shane Hupp]

    These are some of the news articles that may have impacted Accern’s scoring:

    Get Principal Financial Group alerts: Principal Financial Group (PFG) Approves New $300M Buyback (streetinsider.com) Principal Financial Group (PFG) Announces Share Repurchase Plan (americanbankingnews.com) Is Principal Large Cap Growth I Institutional (PLGIX) a Strong Mutual Fund Pick Right Now? (finance.yahoo.com) Principal Financial Group is Oversold (nasdaq.com) Principal Names New Chief Human Resources Officer (finance.yahoo.com)

    Several equities analysts have recently commented on PFG shares. Morgan Stanley decreased their target price on Principal Financial Group from $79.00 to $77.00 and set an “equal weight” rating on the stock in a research report on Thursday, April 5th. Wells Fargo reaffirmed a “market perform” rating and issued a $76.00 target price on shares of Principal Financial Group in a research report on Monday, January 8th. Credit Suisse Group started coverage on Principal Financial Group in a research report on Wednesday, April 25th. They issued a “neutral” rating and a $62.00 target price on the stock. Bank of America started coverage on Principal Financial Group in a research report on Monday, March 26th. They issued a “neutral” rating and a $65.00 target price on the stock. Finally, UBS started coverage on Principal Financial Group in a research report on Friday, March 2nd. They issued a “neutral” rating and a $69.00 target price on the stock. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and three have issued a buy rating to the company. Principal Financial Group currently has an average rating of “Hold” and an average price target of $71.18.

  • [By Max Byerly]

    Shore Capital reissued their hold rating on shares of Provident Financial (LON:PFG) in a report issued on Thursday.

    PFG has been the subject of several other reports. Liberum Capital reissued a sell rating and set a GBX 483 ($6.48) price objective on shares of Provident Financial in a research note on Monday, February 26th. Peel Hunt reissued a hold rating and set a GBX 870 ($11.67) price objective on shares of Provident Financial in a research note on Tuesday, February 27th. JPMorgan Chase & Co. reduced their price objective on Provident Financial from GBX 1,100 ($14.76) to GBX 750 ($10.06) and set a neutral rating for the company in a research note on Thursday, May 10th. Barclays reissued an underweight rating and set a GBX 584 ($7.84) price objective on shares of Provident Financial in a research note on Wednesday, January 31st. Finally, Societe Generale lowered Provident Financial to a hold rating and set a GBX 1,050 ($14.09) price objective for the company. in a research note on Wednesday, February 28th. Two investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and two have assigned a buy rating to the company’s stock. Provident Financial presently has a consensus rating of Hold and a consensus price target of GBX 1,190.14 ($15.97).

  • [By Logan Wallace]

    ING Groep NV boosted its stake in Principal Financial Group Inc (NYSE:PFG) by 7.8% during the 1st quarter, HoldingsChannel.com reports. The institutional investor owned 27,524 shares of the financial services provider’s stock after purchasing an additional 1,991 shares during the period. ING Groep NV’s holdings in Principal Financial Group were worth $1,676,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

  • [By Joseph Griffin]

    Sawtooth Solutions LLC bought a new position in Principal Financial Group Inc (NYSE:PFG) during the second quarter, according to its most recent Form 13F filing with the SEC. The firm bought 17,428 shares of the financial services provider’s stock, valued at approximately $922,000.

Top 10 Insurance Stocks To Watch For 2019: Prudential Financial Inc.(PRU)

Advisors' Opinion:
  • [By Zacks]

    Well, given the growing demand for securitized mortgage deals, Barclays plans to package and sell these Irish loans over the next two months. The group of investors that has shown interest in buying residential mortgage backed securities includes M&G Investments, the investment management division of British insurer Prudential Plc (NYSE: PRU) and Pacific Investment Management Co. ("PIMCO").

  • [By Stephan Byrd]

    Sentinel Trust Co. LBA lifted its stake in shares of Prudential Financial Inc (NYSE:PRU) by 18.0% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 65,450 shares of the financial services provider’s stock after buying an additional 9,980 shares during the quarter. Prudential Financial comprises 1.4% of Sentinel Trust Co. LBA’s portfolio, making the stock its 15th largest position. Sentinel Trust Co. LBA’s holdings in Prudential Financial were worth $6,120,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

  • [By Jason Hall, Chuck Saletta, and Reuben Gregg Brewer]

    But that doesn't mean you need to make risky bets to capture solid returns, either, and buying solid companies at reasonable prices can help create a margin of safety and improve your returns, while also decreasing your risk of permanent losses. Three stocks that meet these criteria are small healthcare real-estate specialist Caretrust REIT Inc (NASDAQ:CTRE), financial services giant Prudential Financial Inc (NYSE:PRU), and energy behemoth ExxonMobil Corporation (NYSE:XOM). 

  • [By Joseph Griffin]

    These are some of the headlines that may have effected Accern Sentiment Analysis’s analysis:

    Get Prudential Financial alerts: Prudential (PUK) Presents At 2018 Deutsche Bank Annual Global Financial Services Conference – Slideshow (seekingalpha.com) Leston Welsh joins Prudential Group Insurance as head of Disability and Absence Management (finance.yahoo.com) Contrasting Prudential Financial (PRU) & Old Mutual (ODMTY) (americanbankingnews.com) Prudential again accused with unauthorised money deduction (vir.com.vn) An Application for the Trademark "MULLINTBG" Has Been Filed by Prudential Insurance Company (insurancenewsnet.com)

    Prudential Financial traded down $5.05, hitting $94.97, during midday trading on Tuesday, MarketBeat Ratings reports. 2,919,216 shares of the company’s stock were exchanged, compared to its average volume of 2,144,103. The company has a current ratio of 0.12, a quick ratio of 0.12 and a debt-to-equity ratio of 0.35. The firm has a market cap of $42.01 billion, a PE ratio of 8.98, a P/E/G ratio of 0.97 and a beta of 1.52. Prudential Financial has a one year low of $94.51 and a one year high of $127.14.

  • [By ]

    Along with index ETFs, consider redeploying the capital into solid dividend producing names like Prudential Financial (NYSE: PRU), AT&T (NYSE: T) and Omega Health Care (NYSE: OHI) for their expected future stability and consistent dividend payouts.

  • [By Ethan Ryder]

    State of Tennessee Treasury Department lessened its position in Prudential Financial Inc (NYSE:PRU) by 29.7% during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 312,450 shares of the financial services provider’s stock after selling 132,238 shares during the period. State of Tennessee Treasury Department owned approximately 0.07% of Prudential Financial worth $32,354,000 at the end of the most recent reporting period.

Top 10 Insurance Stocks To Watch For 2019: Aon Corporation(AON)

Advisors' Opinion:
  • [By Shane Hupp]

    BB&T Securities LLC raised its holdings in Aon PLC (NYSE:AON) by 6.2% during the 1st quarter, HoldingsChannel.com reports. The institutional investor owned 23,068 shares of the financial services provider’s stock after purchasing an additional 1,352 shares during the period. BB&T Securities LLC’s holdings in AON were worth $3,237,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

  • [By Joseph Griffin]

    AON (NYSE:AON) had its price target hoisted by Citigroup from $160.00 to $165.00 in a report issued on Tuesday morning. They currently have a buy rating on the financial services provider’s stock.

  • [By Logan Wallace]

    Get a free copy of the Zacks research report on AON (AON)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

Friday, February 15, 2019

Silicon Valley hedge funder Glen Katcher sees an 'incredible opportunity' in SoftBank

Some of the best investments that Silicon Valley has been chasing after can be found on just one stock: Softbank, hedge funder Glen Kacher told CNBC on Wednesday.

The founder and chief investment officer of Light Street Capital, based in Palo Alto, California, called the Japanese conglomerate an "incredible opportunity." SoftBank is the firm's largest equity holding.

"Their stake in Alibaba is their entire market cap. They also own incredible assets," including a big stake in Yahoo Japan and Sprint, which is awaiting approval of its merger with T-Mobile, Kacher said in an interview with Leslie Picker on "Fast Money: Halftime Report."

"They've got the Vision Fund, which is an incredible business operation where they're shooting guided missiles [of cash] at the best companies..., right? They want to be investors in these companies. And the investors in Silicon Valley are running around with rifles and pistols investing in these companies."

Kacher founded the hedge fund, which largely focuses on tech, in 2010. It has $1.4 billion in assets under management. Its second-largest stock holding is Amazon.

He said he doesn't expect SoftBank to disrupt the venture capital community but instead succeed side by side with it. "It's an incredible opportunity for the individual investor as well as the institutional investor like us to get real exposure to this incredible growth part of the industry where Softbank is investing."

— CNBC's Laura Batchelor contributed to this report.

Disclaimer

Wednesday, February 13, 2019

Japanese yields rebound after BOJ trims bond-buying

Japanese government bond prices fell, pushing up yields, albeit from ultralow levels, after the Bank of Japan reportedly trimmed its routine purchases of long-dated paper.

According to Reuters , the central bank cut its purchases of bonds with maturities between 10 and 25 years to ¥180 billion ($1.63 billion) on Tuesday from ¥200 billion yen at its last round of purchases, its first cut among such debt since last June. The central bank had announced it would buy between ¥150 billion and ¥250 billion of bonds with such maturities at every operation in February.

The Bank of Japan often tweaks its weekly buying operations under its yield-curve control policy, which was put into action in September 2016. It has insisted that adjustments in its routine purchases does not portend a turn in monetary policy, but market participants have speculated nonetheless over the significance of such changes.

The 10-year yield for the Japanese government bond, or JGB, TMBMKJP-10Y, +66.19% was up 1.7 basis points to a negative 0.011%, bouncing off its lowest levels in two years, while the 20-year note yield TMBMKJP-10Y, +66.19% rose 2.9 basis points to 0.434%, according to Tradeweb data. Bond prices move in the opposite direction of yields.

The BOJ's move helped to halt a slide in yields by Japanese government paper, driven by resurgent global growth fears in Europe and China. Against that worrisome backdrop, even the ultralow yields on offer in Japan's bond market haven't put off foreign and Japanese investors in search of liquid haven assets, said analysts.

The 10-year Japanese yield has now swum in negative waters in the past few weeks, after its recent peak of 0.16% in October.

The BOJ's cut to its purchases also reverberated across currency markets. The dollar last bought 110.55 yen USDJPY, +0.10% down from 110.38 yen late Monday in New York, leaving it weaker against the greenback by 0.7% this week, FactSet data shows.

As part of its yield-curve control measures, the Bank of Japan pledged to snap up an unlimited number of 10-year bonds to keep its benchmark yield between a range of zero to 0.1%, allowing the spread between the 10-year yield and its longer-dated peers to widen. This shift away from regular and fixed bond purchases was designed to give relief to a Japanese financial sector afflicted by low interest rates as a wider spread, or a steeper yield curve, correlates to richer margins in bank lending.

"Banks live and die by the yield curve and they've certainly died in Japan and in Europe over the past few years," wrote Peter Boockvar, chief market analyst for the Bleakley Advisory Group.

See: An inverted yield curve is a recession indicator, but only in the U.S.

Viraj Patel, global macro strategist for Arkera, likened the central bank's move to "stealth tapering" in a tweet. The widely-used term refers to how the Bank of Japan's pledge to keep the 10-year yield around zero has been effective in allowing the central bank to quietly lessen its bond-buying without disrupting markets, in contrast to the more explicit tapering by the Federal Reserve and the European Central Bank

Bank of Japan in stealth tapering mode... reducing pace of 10-25yr JGB purchases. Halts $USDJPY's aimless wander higher on revived risk sentiment (US-China trade progress & avoiding govt shutdown). Brexit's still a mess but Mrs May & Mr Carney speak today 👍. Enjoy the ride $GBP pic.twitter.com/mOHba4k6kr

— Viraj Patel (@VPatelFX) February 12, 2019

Read: Why the yen is still a haven despite Japan's sluggish economy

Top 10 Financial Stocks To Own Right Now

tags:PBIB,IVZ,BCS,RPT,CATY,BOFI,SAR,NC,BNCL,VRTS, What happened

Shares of Opko Health, Inc. (NASDAQ:OPK) closed 14.9% lower on Friday. Trading in the stock was halted one week ago after the company and its CEO, Phillip Frost, were charged by the U.S. Securities and Exchange Commission (SEC) with fraud. Opko shares resumed trading today, which prompted a further sell-off in the wake of the scandal.

So what

The SEC's allegations are really serious. Frost and Opko Health were among 10 individuals and 10 associated entities accused of manipulating the share prices of microcap stocks in what is commonly referred to as "pump-and-dump" schemes.

Image source: Getty Images.

When highly public scandals involving top executives emerge, it is a legitimate reason for investors to decide to bail out on a stock. It's even worse when the company itself is charged (although Opko notes that this SEC complaint does not contain any allegations about company-specific financial or business practices). That's exactly what has happened with Opko.

Top 10 Financial Stocks To Own Right Now: Porter Bancorp Inc.(PBIB)

Advisors' Opinion:
  • [By Max Byerly]

    Media stories about Porter Bancorp (NASDAQ:PBIB) have trended somewhat positive this week, Accern Sentiment reports. Accern identifies negative and positive news coverage by analyzing more than twenty million news and blog sources. Accern ranks coverage of public companies on a scale of negative one to positive one, with scores nearest to one being the most favorable. Porter Bancorp earned a media sentiment score of 0.07 on Accern’s scale. Accern also gave news coverage about the financial services provider an impact score of 44.3359026173577 out of 100, indicating that recent news coverage is somewhat unlikely to have an effect on the stock’s share price in the near future.

  • [By WWW.GURUFOCUS.COM]

    For the details of PATRIOT FINANCIAL PARTNERS GP, LP's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=PATRIOT+FINANCIAL+PARTNERS+GP%2C+LP

    These are the top 5 holdings of PATRIOT FINANCIAL PARTNERS GP, LPBanc of California Inc (BANC) - 2,850,564 shares, 32.49% of the total portfolio. Meta Financial Group Inc (CASH) - 397,069 shares, 25.6% of the total portfolio. Guaranty Bancorp (GBNK) - 1,391,767 shares, 23.3% of the total portfolio. MBT Financial Corp (MBTF) - 2,060,302 shares, 13.08% of the total portfolio. Sterling Bancorp (STL) - 323,980 shares, 4.31% of the total portfolio.

Top 10 Financial Stocks To Own Right Now: Invesco Plc(IVZ)

Advisors' Opinion:
  • [By Paul Ausick]

    Invesco Ltd. (NYSE: IVZ) traded down about 3.3% Thursday to set a new 52-week low of $23.25 after closing at $24.05 on Wednesday. The stock’s 52-week high is $38.43. Volume was 25% above the daily average of around 4 million. The company reported month-over-month assets under management growth of less than 0.1% as of the end of August after markets closed Wednesday.

  • [By Logan Wallace]

    First Bank & Trust boosted its stake in Invesco Ltd. (NYSE:IVZ) by 3,311.9% in the 3rd quarter, according to its most recent filing with the SEC. The fund owned 17,844 shares of the asset manager’s stock after purchasing an additional 17,321 shares during the period. First Bank & Trust’s holdings in Invesco were worth $429,000 at the end of the most recent quarter.

  • [By Joseph Griffin]

    Get a free copy of the Zacks research report on Invesco (IVZ)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Shane Hupp]

    Invesco Ltd. (NYSE:IVZ)’s share price fell 5.1% during trading on Thursday after Deutsche Bank lowered their price target on the stock from $30.00 to $27.00. Deutsche Bank currently has a buy rating on the stock. Invesco traded as low as $20.02 and last traded at $20.07. 11,476,202 shares changed hands during mid-day trading, an increase of 193% from the average session volume of 3,914,834 shares. The stock had previously closed at $21.14.

  • [By Paul Ausick]

    Invesco Ltd. (NYSE: IVZ) traded down about 4.1% Monday and posted a new 52-week low of $26.37 after closing Friday at $27.51. The stock’s 52-week high is $38.43. Volume totaled about 7.1 million, more than double the daily average of around  3.3 million. The investment management firm launched a European ETF that gives investors exposure to Saudi Arabia.

Top 10 Financial Stocks To Own Right Now: Barclays PLC(BCS)

Advisors' Opinion:
  • [By Joseph Griffin]

    Barclays PLC (NYSE:BCS) major shareholder Plc Barclays sold 62,390 shares of the business’s stock in a transaction dated Thursday, June 28th. The shares were sold at an average price of $5.63, for a total value of $351,255.70. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Large shareholders that own 10% or more of a company’s shares are required to disclose their transactions with the SEC.

  • [By Zacks]

    Last week, Barclays (NYSE: BCS) acquired £4.3 billion ($5.8 billion) worth of Irish residential mortgage loans from Lloyds Banking Group (NYSE: LYG). The portfolio comprises around 27,000 mortgages, originated between 2004 and 2010. Of the total loans acquired, nearly £300 million are impaired.

  • [By Max Byerly]

    Press coverage about Barclays (NYSE:BCS) has trended somewhat positive recently, Accern Sentiment Analysis reports. The research firm scores the sentiment of press coverage by reviewing more than 20 million blog and news sources in real time. Accern ranks coverage of public companies on a scale of -1 to 1, with scores closest to one being the most favorable. Barclays earned a daily sentiment score of 0.17 on Accern’s scale. Accern also assigned media coverage about the financial services provider an impact score of 45.4019094998773 out of 100, indicating that recent press coverage is somewhat unlikely to have an effect on the company’s share price in the near term.

Top 10 Financial Stocks To Own Right Now: Ramco-Gershenson Properties Trust(RPT)

Advisors' Opinion:
  • [By Shane Hupp]

    KeyCorp set a $15.00 price target on Ramco-Gershenson Properties Trust (NYSE:RPT) in a research note published on Wednesday. The brokerage currently has a buy rating on the real estate investment trust’s stock. KeyCorp also issued estimates for Ramco-Gershenson Properties Trust’s Q3 2018 earnings at $0.32 EPS, Q4 2018 earnings at $0.32 EPS, FY2018 earnings at $1.29 EPS, Q1 2019 earnings at $0.32 EPS, Q2 2019 earnings at $0.31 EPS, Q3 2019 earnings at $0.32 EPS, Q4 2019 earnings at $0.32 EPS and FY2019 earnings at $1.27 EPS.

  • [By Joseph Griffin]

    Ramco-Gershenson Properties Trust (NYSE:RPT) was downgraded by equities research analysts at ValuEngine from a “hold” rating to a “sell” rating in a research note issued on Tuesday.

  • [By Max Byerly]

    Ramco-Gershenson Properties Trust (NYSE:RPT) was upgraded by research analysts at ValuEngine from a “strong sell” rating to a “sell” rating in a research note issued on Wednesday.

Top 10 Financial Stocks To Own Right Now: Cathay General Bancorp(CATY)

Advisors' Opinion:
  • [By Stephan Byrd]

    Aurora Investment Counsel bought a new position in shares of Cathay General Bancorp (NASDAQ:CATY) in the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 43,515 shares of the bank’s stock, valued at approximately $1,803,000. Aurora Investment Counsel owned 0.05% of Cathay General Bancorp as of its most recent SEC filing.

  • [By Stephan Byrd]

    Cathay General Bancorp (NASDAQ:CATY) – Equities research analysts at Piper Jaffray Companies reduced their Q4 2018 EPS estimates for shares of Cathay General Bancorp in a research report issued on Wednesday, July 18th. Piper Jaffray Companies analyst M. Clark now anticipates that the bank will post earnings of $0.76 per share for the quarter, down from their prior estimate of $0.79. Piper Jaffray Companies also issued estimates for Cathay General Bancorp’s Q3 2019 earnings at $0.89 EPS, Q4 2019 earnings at $0.90 EPS, FY2019 earnings at $3.50 EPS, Q1 2020 earnings at $0.89 EPS, Q2 2020 earnings at $0.89 EPS and FY2020 earnings at $3.65 EPS.

  • [By Ethan Ryder]

    Get a free copy of the Zacks research report on Cathay General Bancorp (CATY)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top 10 Financial Stocks To Own Right Now: BofI Holding Inc.(BOFI)

Advisors' Opinion:
  • [By Rich Smith]

    The year was 1999 and "internet" stocks were all the rage. On opposite sides of the country, two banks -- BofI Holding (NASDAQ:BOFI) and First Internet Bancorp (NASDAQ:INBK) -- were both betting on a business model of asset-light internet banking. Nearly two decades later, one of these banks has grown into a $2.6 billion force to be contended with, while the other lags behind with a market cap of less than $350 million.

  • [By Stephan Byrd]

    Get a free copy of the Zacks research report on BofI (BOFI)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Matthew Frankel, Neha Chamaria, and Matthew DiLallo]

    While there's no way to know for sure which stocks will become the next Amazon, three of our contributors think BofI Holding (NASDAQ:BOFI), XPO Logistics (NYSE:XPO), and iQiyi (NASDAQ:IQ) have pretty good chances.

  • [By ]

    Bank of Internet (BOFI) : "I would hold that. I do like the major banks more right here."

    Melco Resorts (MLCO) : "No, no, I like MGM Resorts (MGM) ."

  • [By Peter Graham]

    Small cap diversified financial services stock BofI Holding (NASDAQ: BOFI) has elevated short interest of 36.43% according to Highshortinterest.com. BofI Holding is the holding company for BofI Federal Bank, a nationwide bank that provides financing for single and multifamily residential properties, small-to-medium size businesses in target sectors, and selected specialty finance receivables. With approximately $8.6 billion in assets, BofI Federal Bank provides consumer and business banking products through its low-cost distribution channels and affinity partners. BofI Holding is a component of the Russell 2000 Index, the S&P SmallCap 600 Index, and the KBW Nasdaq Financial Technology Index. Bank of Internet USA is the oldest and most trusted FDIC-insured internet bank in America and is a division of BofI Federal Bank. It was one of the first banks to offer banking services exclusively online.

Top 10 Financial Stocks To Own Right Now: Saratoga Investment Corp(SAR)

Advisors' Opinion:
  • [By Max Byerly]

    Headlines about Saratoga Investment (NYSE:SAR) have been trending somewhat positive this week, according to Accern Sentiment. Accern rates the sentiment of media coverage by analyzing more than 20 million news and blog sources. Accern ranks coverage of publicly-traded companies on a scale of negative one to positive one, with scores closest to one being the most favorable. Saratoga Investment earned a daily sentiment score of 0.17 on Accern’s scale. Accern also gave headlines about the financial services provider an impact score of 45.4912059514825 out of 100, meaning that recent media coverage is somewhat unlikely to have an impact on the company’s share price in the near future.

  • [By Shane Hupp]

    Media stories about Saratoga Investment (NYSE:SAR) have trended somewhat positive on Friday, Accern Sentiment Analysis reports. The research firm rates the sentiment of press coverage by reviewing more than 20 million blog and news sources in real-time. Accern ranks coverage of companies on a scale of negative one to one, with scores nearest to one being the most favorable. Saratoga Investment earned a daily sentiment score of 0.07 on Accern’s scale. Accern also assigned press coverage about the financial services provider an impact score of 45.7589775169552 out of 100, indicating that recent press coverage is somewhat unlikely to have an impact on the stock’s share price in the immediate future.

  • [By Logan Wallace]

    ValuEngine downgraded shares of Saratoga Investment (NYSE:SAR) from a buy rating to a hold rating in a research report released on Wednesday.

    A number of other analysts have also issued reports on the stock. National Securities reiterated a neutral rating and set a $24.00 price target (up from $23.00) on shares of Saratoga Investment in a research note on Friday, January 12th. Zacks Investment Research lowered shares of Saratoga Investment from a hold rating to a sell rating in a research note on Friday, March 2nd. Finally, B. Riley initiated coverage on shares of Saratoga Investment in a research note on Tuesday, March 27th. They set a buy rating and a $23.50 price target on the stock. Four investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. Saratoga Investment presently has a consensus rating of Buy and an average price target of $24.38.

  • [By Stephan Byrd]

    Saratoga Investment Corp (NYSE:SAR) – Equities research analysts at B. Riley dropped their Q3 2019 EPS estimates for shares of Saratoga Investment in a report issued on Thursday, August 23rd. B. Riley analyst T. Hayes now forecasts that the financial services provider will post earnings of $0.54 per share for the quarter, down from their prior forecast of $0.55. B. Riley also issued estimates for Saratoga Investment’s Q2 2020 earnings at $0.58 EPS.

  • [By Stephan Byrd]

    Get a free copy of the Zacks research report on Saratoga Investment (SAR)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Ethan Ryder]

    Get a free copy of the Zacks research report on Saratoga Investment (SAR)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top 10 Financial Stocks To Own Right Now: New Century Bancorp Inc.(NC)

Advisors' Opinion:
  • [By Stephan Byrd]

    Whirlpool (NYSE: WHR) and NACCO Industries (NYSE:NC) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Top 10 Financial Stocks To Own Right Now: Beneficial Mutual Bancorp Inc.(BNCL)

Advisors' Opinion:
  • [By Joseph Griffin]

    Media coverage about Beneficial Bancorp (NASDAQ:BNCL) has trended positive recently, according to Accern. Accern identifies positive and negative news coverage by monitoring more than twenty million news and blog sources in real-time. Accern ranks coverage of publicly-traded companies on a scale of negative one to one, with scores closest to one being the most favorable. Beneficial Bancorp earned a news impact score of 0.38 on Accern’s scale. Accern also gave media headlines about the bank an impact score of 45.8699493506664 out of 100, meaning that recent news coverage is somewhat unlikely to have an effect on the stock’s share price in the next several days.

  • [By Joseph Griffin]

    Beneficial Bancorp Inc (NASDAQ:BNCL) Director Thomas J. Lewis sold 973 shares of the company’s stock in a transaction dated Wednesday, May 30th. The stock was sold at an average price of $16.50, for a total value of $16,054.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.

  • [By Logan Wallace]

    Beneficial Bancorp (NASDAQ: BNCL) and Home Bancorp (NASDAQ:HBCP) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.

  • [By Ethan Ryder]

    Entegra Financial (NASDAQ: BNCL) and Beneficial Bancorp (NASDAQ:BNCL) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

  • [By Ethan Ryder]

    BidaskClub upgraded shares of Beneficial Bancorp (NASDAQ:BNCL) from a sell rating to a hold rating in a report released on Tuesday morning.

    Shares of Beneficial Bancorp opened at $16.35 on Tuesday, MarketBeat.com reports. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.51. The company has a market capitalization of $1.23 billion, a P/E ratio of 31.44 and a beta of 0.55. Beneficial Bancorp has a fifty-two week low of $14.40 and a fifty-two week high of $17.50.

Top 10 Financial Stocks To Own Right Now: Virtus Investment Partners Inc.(VRTS)

Advisors' Opinion:
  • [By Motley Fool Transcribers]

    Virtus Investment Partners Inc  (NASDAQ:VRTS)Q4 2018 Earnings Conference CallFeb. 01, 2019, 10:00 a.m. ET

    Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:

    Operator

  • [By Joseph Griffin]

    BidaskClub lowered shares of Virtus Investment Partners (NASDAQ:VRTS) from a buy rating to a hold rating in a report released on Tuesday morning.

    A number of other research firms also recently commented on VRTS. Zacks Investment Research upgraded Virtus Investment Partners from a hold rating to a buy rating and set a $147.00 price objective for the company in a report on Thursday, March 15th. Sandler O’Neill restated a hold rating and set a $142.00 price objective on shares of Virtus Investment Partners in a report on Thursday, March 15th. TheStreet downgraded Virtus Investment Partners from a b rating to a c+ rating in a report on Wednesday, February 14th. Morgan Stanley lowered their price target on Virtus Investment Partners from $136.00 to $135.00 and set an equal weight rating for the company in a report on Tuesday, April 10th. Finally, Barclays lowered their price target on Virtus Investment Partners from $140.00 to $130.00 and set an equal weight rating for the company in a report on Monday, April 23rd. Nine research analysts have rated the stock with a hold rating and one has given a buy rating to the company. Virtus Investment Partners presently has an average rating of Hold and an average price target of $138.13.

  • [By Ethan Ryder]

    BW Gestao de Investimentos Ltda. grew its holdings in Virtus Investment Partners Inc (NASDAQ:VRTS) by 12.9% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 9,490 shares of the closed-end fund’s stock after acquiring an additional 1,082 shares during the period. BW Gestao de Investimentos Ltda. owned about 0.13% of Virtus Investment Partners worth $1,175,000 as of its most recent SEC filing.

Tuesday, February 12, 2019

Capital protection now best strategy for investors; bet on these top 3 stocks: Equity99

Nitin Singh

Indian market witnessed a sell-off in the last two trading sessions of the week which pushed Nifty below psychological level of 11,000 on weak global cues.

During the week, the Reliance Anil Dhirubhai Ambani Group stocks saw their worst decline as most of the stocks hit their lifetime low during the week post Reliance Communications issue.

During the week, the Reserve Bank of India (RBI) reduced interest rate by 25 basis points to 6.25 percent but with this surprise news, the market has shown profit booking from higher levels.

related news Top buy and sell ideas by Ashwani Gujral, Mitessh Thakkar, Prakash Gaba for short term Reporter's Take | Bajaj Auto to roll out Husqvarna, Triumph takes a back seat Top buy and sell ideas by Ashwani Gujral, Mitessh Thakkar, Prakash Gaba for short term

In January 2019, equity inflows declined 6.8 percent over the previous month to Rs 6,158 crore and its third straight monthly decline which is not good sign.

Nifty managed by some stocks but broader markets are in bear grip and most of stocks are available 40-60 percent lower from their recent peak. In this scenario, capital protection is the best strategy for investors. Try to invest only in quality stocks. Do not try to bottom fishing in bad stocks.

For next week, Nifty has strong support at 10,885-10,815 levels and resistance at 11,040-11,120 levels.

Here is the list of three stocks to buy in staggered manner for medium to long term:

Bajaj Auto

Bajaj Auto is the world's 3rd largest manufacturer of motorcycles and the largest manufacturer of three-wheelers.

First ten months of FY19 became golden period for company. During this period its motorcycles sales grew by 28 percent and commercial vehicles sales grew by 26 percent. Total sales grew by 28 percent. Its motorcycle sales grew by 21 percent during January 2019.

Due to higher raw material price, we have seen some pressure on margin front during nine-month of FY19 but we are expecting margin improvement in coming quarters. During Q3FY19, its sales grew by 16 percent YoY, while PAT increased by 15.7 percent to Rs 1,101.88 crore.

During nine-month of FY19, its sales grew by 21.11 percent YoY, while PAT increased by 15.63 percent to Rs 3,519.12 crore. At the CMP, the stock trades at a P/E of 17.5x. We are recommending a buy in staggered manner for medium to long term.

Siemens

Siemens focuses on the areas of electrification, automation and digitalization. The company has posted strong numbers for Q3FY18. Its net profit increased by 19.69 percent to Rs 228 crore from Rs 190.5 crore on 15.7 percent higher sales of Rs 2,734.2 crore.

New orders grew by 4.1 percent to Rs 3,391 crore, compared to Rs 3,257 crore in the quarter ended December 2018. Siemens trades at PE ratio of 39.4x. We are recommending a buy in staggered manner for medium to long term.

AstraZeneca Pharma

AstraZeneca Pharma India Limited a subsidiary of AstraZeneca PLC, is a bio-pharmaceutical company, manufactures, distributes, and markets pharmaceutical products. It has reported excellent results for Q3FY19.

Sales and PBDIT grew by 67.42 percent YoY and 476.9 percent YoY, respectively, while it has reported PAT of Rs 29.09 crore against loss of Rs 10.35 crore. During nine-month of FY19, its PAT grew 95.43 percent to Rs 44.62 crore on 27.71 percent higher sales of Rs 537.99 crore.

Technically stock has formed inverted head and shoulder pattern break out on daily chart which is bullish in its nature. We are recommending a buy in staggered manner for medium to long term.

The author is Strategic Consultant at Equity99.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. First Published on Feb 10, 2019 10:02 am

Monday, February 11, 2019

Upcycling Your Way To Sustainability

&l;p&g;&l;img class=&q;dam-image getty size-large wp-image-1086306076&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/1086306076/960x0.jpg?fit=scale&q; data-height=&q;639&q; data-width=&q;960&q;&g; Renewable materials in processing center

As sustainability continues as a top trend in the retail industry, retailers and brands are adapting to stay relevant and offer sustainable solutions to their consumers. Customers are taking note: 93% of global consumers expect more of the brands they use to support local social and environmental issues, according to a report by the &l;span&g;&l;a href=&q;http://www.retailcrc.org/sustainability/Lists/Briefings/Attachments/14/RILA%20Issue%20Brief%20-%20The%20Value%20of%20Sustainability%20in%20Retail%20Marketing.pdf&q; target=&q;_blank&q;&g;Retail Industry Leaders Association&l;/a&g;&l;/span&g; (RILA). The report also found that an estimated 68 million adult Americans base purchasing decisions on their values &a;ndash; personal, social, and environmental &a;ndash; and say they will spend up to 20% more on environmentally sound products.

A survey published by &l;span&g;&l;a href=&q;https://content.elementthree.com/hubfs/Element%20Three%20SMARI%20Millennials%20and%20the%20Modern%20Buyer%202018.pdf&q; target=&q;_blank&q;&g;Element Three and SMARI&l;/a&g;&l;/span&g; supported that same idea: sustainability was a product attribute that 87% of US Millennial internet users would be willing to pay more for. Consumers are aligning what they&a;rsquo;re buying with their lifestyle. They&a;rsquo;re willing to spend more to know that the items they&a;rsquo;re purchasing are environmentally sound. They&a;rsquo;re looking for products with clear brand messaging - products that clearly deliver sustainability attributes and meet their social and environmental standards.

Retailers and brands of all sizes can take steps to become more sustainable by implementing green initiatives. In retail it&a;rsquo;s key to keep a forward-thinking approach. Technology is helping retailers reduce their carbon footprint, identify trends and utilize predictive analytics to create products the customer wants. Embracing technology like digital product testing, barcode scanners and cloud-based warehouse management helps reduce waste and leads retailers down a more sustainable path. And, there&a;rsquo;s a whole new side of sustainability that retailers are starting to develop.

Enter the newest sustainability trend within the retail industry: upcycling. Upcycling is reusing discarded objects or materials to create a product of higher quality or perceived value than the original. Upcycling reduces cloth and textile waste by reusing deadstock or gently used fabric to create new garments and products.

Upcycling can use pre-consumer or post-consumer waste or a combination of the two. There is also a new eco-centric trend that uses plastic bottles to create yarns and materials to produce everything from jackets and t-shirts to shoes and accessories. With the use of new technology innovations like &l;span&g;&l;a href=&q;https://www.plasticsmakeitpossible.com/plastics-recycling/what-happens-to-recycled-plastics/6-innovative-technologies-boost-plastics-recycling/&q; target=&q;_blank&q;&g;recycling robots with AI&l;/a&g;&l;/span&g;, recycling plastics is becoming more efficient and popularly used in consumer products. &a;nbsp;Prior to the sustainability trend and new development of technology, creating sustainable products out of completely recycled yarns and materials at such a high-quality standard was nearly impossible.

&l;span&g;&l;a href=&q;http://www.sharp-world.com/corporate/eco/ssr/environment/recycling/technology/&q; target=&q;_blank&q;&g;Sharp and Kansai Recycling Systems Co., Ltd.&l;/a&g;&l;/span&g; have been expanding closed-loop plastic material recycling technology for years. This process enables the repeated recovery of plastic from used consumer electronic products. They are developing technology that integrates everything from recovery to quality control. This increases the volume of recyclable plastic year after year and contributes to a sustainable recycle-based society.

As the sustainability trend continues, events that follow the circular approach to generate as little waste as possible are coming to fruition. The &l;span&g;&l;a href=&q;https://sourcingjournal.com/topics/sustainability/circular-fashion-games-135638/&q; target=&q;_blank&q;&g;Circular Fashion Games&l;/a&g;&l;/span&g; is a program designed to educate, connect and empower sustainable design. &a;nbsp;Members including scientists, designers, entrepreneurs and thought leaders guide participants based on circular design principles. Previous sessions delivered concepts such as an online tool that dispensed information about the circularity of its fibers and scored designs based on how recyclable they are. Another idea suggested the use of electrospinning to turn other types of plastics, including ocean microfibers, into fabric.

Many retailers like Tommy Hilfiger, Eileen Fisher and Adidas are jumping on the sustainability trend and creating different ways to recycle old goods.

&l;span&g;&l;a href=&q;https://sourcingjournal.com/denim/denim-brands/tommy-hilfiger-100-percent-recycled-cotton-jeans-135860/&q; target=&q;_blank&q;&g;Tommy Hilfiger&l;/a&g;&l;/span&g; is set to launch 100% recycled cotton jeans in spring &a;rsquo;19. The sustainable denim is the result of research from the PVH Denim Center in Amsterdam, which is dedicated to setting new standards for producing denim efficiently and in a more environmentally-friendly way.

&l;span&g;&l;a href=&q;https://sourcingjournal.com/topics/sustainability/renew-eileen-fisher-garment-renewable-135742/&q; target=&q;_blank&q;&g;Eileen Fisher&l;/a&g;&l;/span&g; stores feature a Green Eileen project which collects, repairs, and resells used company-brand clothing and donates the proceeds to nonprofit organizations that benefit women and children. I wrote about Eileen Fisher&a;rsquo;s initiatives in an earlier &l;span&g;&l;a href=&q;https://www.forbes.com/sites/gregpetro/2018/11/11/thirdlove-qurate-and-eileen-fisher-decode-the-future-of-retail/#1ae231054d61&q;&g;article&l;/a&g;&l;/span&g;.

Adidas was recently named &l;span&g;&l;a href=&q;https://sourcingjournal.com/topics/sustainability/adidas-burberry-dow-jones-sustainability-indices-119678/&q; target=&q;_blank&q;&g;one of the most sustainable companies in the world&l;/a&g;&l;/span&g; by Dow Jones. Adidas x Parley work to keep plastic from entering our oceans and transform it into high-performance sportswear. They are doubling down on their plan to take plastic out of the ocean by putting it into shoes, aiming to offer consumers real added value beyond the look, functionality and quality of the product. Over the past two years, &l;span&g;&l;a href=&q;https://sourcingjournal.com/footwear/footwear-brands/adidas-recycled-plastic-2019-137384/&q; target=&q;_blank&q;&g;Adidas&l;/a&g;&l;/span&g; has produced 6 million pairs of shoes by upcycling collected ocean plastics into yarn to make uppers for shoes, spinning the problem into a solution.

It&a;rsquo;s clear that consumers are holding the brands and retailers they love to a higher sustainability standard.&a;nbsp; As retailers learn to leverage consumers&a;rsquo; wants and needs for environmentally sound products it looks like the sustainability trend and creation of upcycled products will be here to stay in the retail industry. Technologies are now converging to make this a reality, from efficient recycling and reprocessing to consumer-driven analytics that help retailers create the products customers will want and avoid producing excess inventory of the ones that would just sit on the shelf &a;ndash; and eventually end up in the landfill. Technology innovators need to keep creating ways to help retailers and brands stay relevant to consumers in an increasingly eco-conscious market.&l;/p&g;