If you're looking for a trade that is looking primed for a run, this NASDAQ company has a modern-day device that you're going to want to hear about
CNBC host Jim Cramer talked about Monday’s sharp selloff in the stock market, which is shaping up to be the worst we’ve seen in several months amid mounting fears of the spread of the coronavirus.
MARK HULBERT CHAPEL HILL, N.C. — The coronavirus is getting a bum rap as the cause of the stock market’s recent weakness. That decline gathered steam on Monday, when the Dow Jones Industrial Average (DJIA)? was at one point down more than 500 points.
The selling was so intense in that period that it didn't matter if you were buying Verizon or Caterpillar or American Electric Power . There were so many people who left Wuhan, the epicenter, when they were still healthy and they are now coming down with the illness. It's pretty clear that the virus spreads from rapidly person to person, so rapidly that we are hearing lots of conspiracies about a bio lab in Wuhan that might have mistakenly discharged the coronavirus and it was not transmitted initially by animals to humans.
Futures edged up after China coronavirus fears slammed the stock market Monday. China-exposed Apple, AMD and Starbucks report earnings Tuesday.
Do this instead of buying expensive solar panels. It's absolutely genius. This program has power companies furious.
Michael Wilson, Morgan Stanley’s chief U.S. equity strategist, says the first major stock market pullback since October is under way.
Shares of a handful of small and mid-sized biotechs that are working on vaccines for the Wuhan coronavirus are surging.
Are your IRA and 401(k) balances as big as retirement savings by other people your age? Bigger? If yours are smaller, here are tips for saving more.
Lucky’s Market has filed for bankruptcy and is closing its corporate headquarters in Niwot. The Lucky's Market Parent Company — a registered LLC —?owes about $36 million to its 30 largest creditors, based on Chapter 11 bankruptcy reorganization petitions the company and its affiliated stores filed Monday in the U.S. Bankruptcy Court in Delaware. The company checked the box on the paperwork saying it had between 10,001 and 25,000 creditors.
(Bloomberg) -- It’s almost as if the last decade never happened for investors of Exxon Mobil Corp. shares.Once the gold-standard of Big Oil, the stock closed Monday at its lowest since October 2010, amid a slump in oil prices due to concerns about weak demand coupled with a glut. The S&P 500 also posted its worst one-day decline since October.But for Exxon, which dropped out of the index’s top 10 largest companies by market value for the first time last year, the malaise runs deeper than the state of the crude market.Chief Executive Officer Darren Woods is running a counter-cyclical strategy by investing heavily in new oil and gas assets, at a time when many investors are demanding energy companies improve returns for shareholders. Some shareholders are even demanding a plan to move away from fossil fuels altogether. Exxon is betting on a “windfall of cash” to arrive from its investments sometime in the mid to late 2020s, said Noah Barrett, a Denver-based energy analyst at Janus Henderson, which manages $356 billion. “Right now there’s higher value placed on generating cash flow today.”Exxon is ramping up capital spending to more than $30 billion a year, without a hard ceiling, as it develops offshore oil in Guyana, liquefied natural gas in Mozambique, chemical facilities in China and the U.S. Gulf Coast, as well as a series of refinery upgrades. Woods is convinced the world will need oil and gas for the foreseeable future and sees an opportunity for expansion while competitors shy away from such long-term investments.The short-term cost of those investments is that Exxon can’t fund dividend payouts with cash generated from operations, instead resorting to asset sales and borrowing, according to Jennifer Rowland, an analyst at Edward Jones & Co. Exxon is the “clear outlier” among Big Oil companies on that front, she said. Exxon declined to comment.Exxon’s current challenges stem in large part from flag-planting deals made when commodity prices peaked during the past decade. It spent $35 billion on U.S. shale gas producer XTO Energy Inc. in 2010 when shale oil promised outsize returns. It has invested $16 billion in Canadian oil sands since 2009, only to remove much of those reserves from its books. Former CEO Rex Tillerson’s 2013 exploration pact signed with Russia was caught behind a wall of sanctions and later abandoned.Also read: Exxon in ‘Bull’s-Eye’ as Worst Year Since Reagan Nears End To contact the reporter on this story: Kevin Crowley in Houston at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Carlos CaminadaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.?2020 Bloomberg L.P.
We’re coming off a year of major-league gains in the markets, and analysts are predicting a flatter year ahead. With the strong likelihood that share price returns will slow down, now is a logical time to start reassessing your portfolio. It’s time to decide which stocks to shed, and which to snap up.Income is the deciding factor. Investing is all about making money, making your investments grow. So, if markets follow the predictions, and growth slows, that leaves dividends as the sensible route to go. Dividends provide a steady income stream, whether markets go up or down. But not all dividend stocks are created equal.With that in mind, we delved into the market data from TipRanks.com to get the lowdown on 3 high-yield dividend stocks, two of which analysts think are set to shine in 2020, and one whose prospects aren’t quite as bright. Let’s dive in:Viper Energy Partners (VNOM)We’ll start with the cash-rich energy industry. Specifically, with Viper Energy, an oil company operating in the Midland formation of the Texas Permian Basin. This basin holds the largest proven oil reserves in North America, and operations in the Permian have made the US the world’s largest producer of crude oil. Viper has exploration rights in more than 14,000 acres in the Midland, which are exploited by third parties and subsidiaries who then pay the royalties that make up Viper’s income. Viper Energy’s land holdings contain an estimated 10 billion barrels of recoverable oil and oil equivalents.Despite low oil prices, Viper’s position as a land holder rather than direct operator allowed it to continue recording profits in 2H19. At the same time, lower forward guidance pushed the stock price down. The top- and bottom-line numbers in Q3 – the last reported – disappointed; revenues missed the forecast by 6% and came in at $71.8 million, while EPS, at 13 cents, missed the estimate by only a penny. At the same time, EPS was up 160% year-over-year, and oil production showed a 9% sequential gain.Better for investors, Viper has held fast to its dividend commitment. The company is consistent about making the payments, and has a history of adjusting the payment to make sure that it is sustainable. Currently, VNOM shares pay out a quarterly dividend of 46 cents, or $1.84 annually, giving a yield of 8.21%. This is more than four times the average yield found among S&P 500 stocks.Viper’s production has been strong in recent months, and Wall Street analysts are taking notice. Pearce Hammond, of Piper Sandler, writes, “Positive news for VNOM as the company announced Q4'19 total production of 26.1 Mboe/d which bested our estimate by 2%… Taking into account increased equity unit count, VNOM increased production per million partnership units outstanding by ~5% q/q despite the headwinds of a broad activity slowdown on non-operated properties in Q4.” Hammond puts a Buy rating on the stock, along with a price target of $33, indicating an upside potential of 47%. (To watch Hammond’s track record, click here)Also bullish is Welles Fitzpatrick from SunTrust Robinson. Fitzpatrick notes the strategic implications of Viper’s more recent land acquisitions: “While the company has been extremely active on the acquisition front, as of the last update interest had gone down somewhat. Instead we expect the company to refrain from adding acreage that it cannot reasonably predict activity plans for, a move that we think will be rewarded by the currently more conservative energy investor base.” Fitzpatrick backs his Buy rating with a $32 price target, showing confidence in an upside of 42%. (To watch Fitzpatrick’s track record, click here)Overall, Wall Street likes VNOM shares. In fact, the analyst consensus on this stock is a unanimous Strong Buy, with 9 positive reviews. Shares are selling for $22.04, and the average price target of $33.67 suggests an impressive 50% upside potential. (See Viper stock analysis at TipRanks)Hercules Capital (HTGC)Venture capital is the lifeblood of innovation. Start-ups couldn’t start without money, and all new research and development has to be paid for. Venture firms are a major vehicle for injecting private money into the business world. Hercules Capital inhabits that niche, and to date has committed $10 billion to the life sciences, technology, and financial SaaS sectors.Venture capitalists are necessary for innovators to succeed, but they don’t operate as a charity. They want to see a return on their money. Hercules has been fortunate, and its investments have provided strong returns. In Q3, the most recent report on record, the company showed a record in net investment income of $38.9 million, which came out to 37 cents per share. For the 12 months ending on September 30, the company showed a total of $103.2 million net investment income, or $1.03 per share. In three of the past four quarter reported, HTGC has beating the earnings forecasts.The company has also grown its dividend. After holding the payment steady at 31 cents from 2013 to 2018, HTGC began increasing the payout, raising it three times in 2019. The current payment, 35 cents, annualizes to $1.40, for a yield of 8.9%. It’s a clear boon for investors.Writing for Jefferies, 5-star analyst John Hecht points out the generally strong position of HTGC stock: “We observe positive trends and developments at HTGC, and we believe this reflects inherent competitive advantages and strong execution. Additionally, we point to an ongoing strong VC market backdrop and further enhanced balance sheet…”Hecht maintains a Buy rating here, and puts a $16 price target on HTGC. His target suggests room for 11% upside growth in this stock. (To watch Hecht’s track record, click here)HTGC is another company with a unanimous analyst consensus of Strong Buy, this one based on 4 Buy ratings. Shares sell for $14.30, and the average price target of $15.33 implies a modest upside of 6.6%. The key point here is the high dividend. (See Hercules Capital’s stock analysis at TipRanks)Macy’s, Inc. (M)Macy’s is a storied name in American retail, a long-time mainstay of the department store segment. Before the decline of indoor shopping malls, there was a time when Macy’s stores were frequently seen as anchors for the country’s retail shopping outlets. But times have been hard for American retail. Since 2015, Macy’s has closed more than 150 under-performing locations.In the most recent quarterly report, for third quarter 2019, M showed the first same-store sales decline in two years. The drop was 3.5%, and came in hand with a fall-off in revenue of 4.25%, to $5.17 billion. EPS did beat expectations, however, coming in at 7 cents versus the breakeven forecast. On the downside, that was a 65% drop year-over-year.Falling earnings and a gloomy long-term outlook for brick-and-mortar retail have this stock on the ropes for now – but Macy’s is still paying out the dividend. At 37.75 cents per quarter, it annualizes to $1.51, and gives the highest yield on this list, of 9%. It’s a solid performance, but unless the EPS moves back up, it may not be sustainable.Top analysts are not sanguine about the future for Macy’s. From Credit Suisse, 4-star analyst Michael Binetti writes, “[W]e think negative -0.6% SSS and -3% YOY gross profit dollar declines in a booming economy offer little evidence so far of a change in the ultimate medium and long-term challenges facing the company. Importantly, we still have little visibility on how EBIT margins can stabilize from here… We continue to believe it’s going to be increasingly difficult for the stock to stabilize on valuation alone.”Binetti puts a $12 target on M stock, implying a 28% downside for the shares. This is inline with his Sell rating, and his believe that the stock will underperform in coming months. (To watch Binetti’s track record, click here)Kimberly Green, 5-star analyst with Morgan Stanley, is also bearish here. She writes, “Despite closing stores proactively, store-only comps remain negative and we forecast them to remain so in the future, eroding ROIC. Expense cuts, real estate monetization, and secondary growth initiatives are encouraging, but we think the market needs to see core retail EBIT stabilization and a return to strong cash flow generation in order to become more constructive on the stock.”Green’s price target is slightly higher than Binetti’s, at $13, but even that implies a downside of 22.5%. Again, this is in-line with her Sell rating. (To watch Green’s track record, click here)The analysts clear on this stock: the consensus rating here is a Moderate Sell, based on 6 Sells, 5 Holds, and just 1 Buy. Despite the high dividend, Wall Street does not see this as a strong market play. Shares are selling for $16.78, but the average price target is $15.40, suggesting the stock will slip 8% in the next year.
Whatever the reason a stock is trading for under $5 a share, these stocks are conversation starters. Some will point out the low valuation of these companies presents opportunity for upside which will be hard to come by when investing in a large-cap. What’s more, you can load up on a much larger number of shares than you could with a stock trading in triple or even double digits.On the other hand, the naysayers argue these tickers are likely to have bad fundamentals and face too many obstacles and, therefore, are more of a speculative shot at lottery like returns than an investment.Either way, both are right, and both could be wrong, too. The trick, as with any investment, is to find the most compelling opportunities the market presents.We went on our own intrepid search for 3 stocks trading at a bargain price, specifically looking for ones which those in the know think are poised to take off over the next 12 months. We used TipRanks’ Stock Screener tool which revealed that in addition to the low valuation, all three currently have a “Strong Buy” consensus rating. Let’s dive in.Orbcomm Inc. (ORBC)Orbcomm operates in an industry that is expected to grow substantially in the new decade. Orbcomm provides machine-to-machine (M2M) solutions across the globe, with its Internet of Things (IoT) technology used to track and monitor large assets. The company’s main markets are in transportation, heavy equipment, and government services, amongst others. Orbcomm is the only commercial satellite network 100% dedicated to M2M.The stock experienced a crushing 2019, losing almost 50% over the year due to disappointing earnings reports and transportation industry headwinds; Economic data suggests that in November, more than 1,000 truck drivers lost their jobs. Further data from October indicates heavy truck order activity is down 51% from 2018 levels.Canaccord's Michael Walkley expects the soft industrial data to continue until mid-2020 and believes it will affect some of Orbcomm’s hardware sales. Nevertheless, the analyst thinks “the shares have limited downside risk at the current valuation.”The 5-star analyst expounded, “Despite our cautious view of macro trends for a portion of Orbcomm’s transportation business unit, we believe the shares have priced in soft near-term hardware sales trends. With Orbcomm’s shares trading roughly 4X our 2021 adjusted EBITDA estimate, we view the risk reward on the shares as very positive… We believe if management can execute, the shares should return to higher multiples.”What does it mean, then? It means that Walkley keeps his Buy rating on Orbcomm. To reflect the headwinds, though, the price target comes down a notch, from $10 to $9. The reduced figure still represents outstanding returns in the shape of 132% could be in store over the next twelve months. (To watch Walkley’s track record, click here)Overall, the Street is with Walkley. 2 additional Buy ratings given to the M2M solutions provider over the last three months add up to a Strong Buy consensus rating. The average price target comes in at $7.67 and implies potential upside of a hefty 98%. (See Orbcomm stock analysis on TipRanks)Plug Power (PLUG)From M2M technology, we move on to another very modern solution, hydrogen fuel cell technology, or renewable energy. Plug Power’s fuel cell systems are designed to replace conventional batteries in electric vehicles and industrial trucks.In sharp contrast to ORBC, PLUG had an outstanding 2019. Its share price added considerable muscle in the shape of 154% throughout the year. Investors were buoyed by strong forecasts, management purchasing company stock, and an ambitious five-year plan, projecting revenue of $1 billion and adjusted EBITDA of $200 million.More good news has extended the rally into 2020; Plug is up by over 23% year-to-date following the announcement that it was awarded a $172 million contract for hydrogen fuel cell deployments from a Fortune 100 customer.B.Riley FBR’s Christopher Van Horn argues PLUG’s “stock and the fuel cell technology seem to be at an inflection point.” The 4-star analyst thinks the contract demonstrates the company’s competitive position, and with an addressable market of $30 billion, believes there should be more opportunities for PLUG coming up.Van Horn said, “PLUG has an implied 35% five-year CAGR from our 2019 revenue estimate and an almost 90% four-year CAGR from our 2020 adjusted EBITDA estimate. We believe this growth could come from its existing customer base, including Wal-Mart, Amazon, and others, as well as new customers. We think this award at roughly $172 million over two years is another step in the right direction to achieve these goals.”Therefore, Van Horn reiterated his Buy call on PLUG along with a price target of $6. This indicates upside potential of 54% over the next 12 months. (To watch Van Horn’s track record, click here)Is the Street ready to plug into PLUG? Yes, it is. The 5 Buy ratings and solitary Hold given over the last three months make the consensus rating a Strong Buy. An average price target of $4.50 puts the upside potential at 15%. (See Plug Power stock analysis on TipRanks)Carrols Restaurant (TAST)From modern solutions, we move to the food industry, where we take a seat at Carrols Restaurant. The company operates the largest Burger King franchisee in the world.It often happens that a stock trading for under $5 used to have a much larger market-cap, but for whatever reason, has lost its luster, and is now much cheaper. For Carrols, last year was a combination of underwhelming earnings reports plus a bizarre software mix up which charged customers incorrectly for discount meals that cost the company $8.3 million. As a result, the stock took a beating in 2019, starting the year at $9.84 and ending it down 28% at $7.05.The company recently announced preliminary 4Q19 results which has further worried investors; In October, Carrols had anticipated 4%-plus SSS (same store sales) for Burger King in its upcoming report, but the new data indicates the SSS figure lands at only 2%. Since then, the share price has dropped further and is down by 32% since the start of the year.So, should you stay away from TAST? Not according to SunTrust Robinson’s Jake Bartlett. The 5-star analyst explained, “TAST attributed the SSS miss to decreased traffic as Burger King laps its '10 Nuggets for $1' promotion last year (through mid-Feb.), a 'Winter Whopperland' game promotion in December that drove app downloads, but not sales, a potential impact from Popeye's new chicken sandwich (TAST's Popeyes 4Q19 21.2%-plus), a potential impact from MCD's '2 for $5' promotion and weak breakfast sales (negative in 4Q19 as lapped the $0.89 pancake promotion). While disappointing, TAST appears encouraged by upcoming menu innovation at Burger King… The promotional environment should remain balanced and significant acquisitions for both Popeyes and Burger King stores are expected in '20.”Accordingly, then, Bartlett reiterated a Buy recommendation on Carrols and kept his $14 price target. The target implies upside potential of a whopping 192%. (To watch Bartlett’s track record, click here)Currently, there are few on the Street taking a bite out of Carrols, but those who are, like the (TAST)e. A Strong Buy consensus rating is formed of 3 Buys, and at $8.83, the average price target suggests potential upside of a handsome 84%. (See Carrols Restaurant stock analysis on TipRanks)
(Bloomberg) -- An uncommon phenomenon in volatility markets is signaling that the U.S. equity rout may almost be over.Monday’s slump in the S&P 500 has created the rare situation where the term structure for the Cboe Volatility Index is inverted. As the VIX surged to its highest level since October, the spot price exceeded the the March future prices, indicating more perceived risk in the immediate term rather than the longer term.Such an inversion usually doesn’t last long and can be a sign that the sell-off may be nearing its end, according to Susquehanna’s co-head of derivatives strategy, Chris Murphy.“Going back to 2009, the SPX is on average flat a week after an inversion,” Murphy wrote in a research note Monday, as the S&P 500 Index sank as much as 1.9% amid growing concern about the spread of the deadly coronavirus from China. “Two weeks later it is up 88 basis points on average, and one month later up 1.7%.”Since hitting a record high on Jan. 22, the S&P has been under pressure as the coronavirus spreads, sparking a rally in the VIX spot index to its highest level since Oct. 10.Murphy pointed out that his historical analysis captures the inversion at the close of trading, but said “even if the term structure doesn’t close inverted today, there is still value to the indicator.”Susquehanna’s derivatives strategists also assessed the parallels between the coronavirus and the SARS outbreak that roiled global markets 17 years ago.In February 2003, both the S&P 500 and the Hang Seng Index fell about 5% in the month following the SARS outbreak, after trending lower for 30 days, U.S. indexes trended higher for the rest of the year, the strategist wrote. The Hang Seng continued lower until the end of April when the outbreak in Vietnam was declared over, the travel warning for Toronto was lifted and the SARS genome was sequenced, they noted.They also underscored key differences, including China’s gross domestic product being a 10th of what it is today, Apple Inc. shares trading around $1 before having introduced the iPhone and the VIX trading above 30 in anticipation of the war in Iraq.To contact the reporter on this story: Gregory Calderone in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Richard Richtmyer, Dave LiedtkaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.?2020 Bloomberg L.P.
In a previous column, I detailed retirees’ biggest lifestyle regrets, such as not traveling more before their health gave out and not communicating clearly with a partner about what they hoped retirement would be like. The big ones, of course, are starting to save too late and not saving enough, but there are other common regrets, according to certified financial planners from the Financial Planning Association and the Alliance of Comprehensive Planners. About 1 out of 3 Social Security recipients apply for benefits at the earliest age, which is 62.
Berkshire Hathaway landed on millennials’ top 10 list of investments in the fourth quarter of 2019, according to new research.
Longtime stock-market bull and National Securities strategist Art Hogan shared his bearish stance in a CNBC interview ahead of what looks to be a busy week of trading. He says the S&P 500 could see a pullback of as much as 5%.
Fair Isaac Corp. (FICO) is changing how it calculates credit scores, and the new criteria reveal some of the trouble spots in Americans’ financial health. Two of the most substantial changes in the new scoring models, FICO Score 10 and 10T, are how they account for personal loans and how they measure creditworthiness over time. Previous FICO score models were not anchored as much to personal loan data, yet since 2015 the number of personal loans has risen 42%, making personal loans the fastest-growing category of debt in the country.
The stock market fell sharply early Monday but recovered some lost ground as concerns about the Chinese coronavirus hit markets around the world.
Lisa Su has overseen record revenues at Santa Clara chipmaker AMD, which earlier this month notched an all-time stock price high. Now she's joined the board of Cisco as the networking giant launches new software, silicon and router products.
One of the highest-growth secular tech trends of the 2020s will be cloud computing. Gartner projects global public cloud revenue will grow 17% in 2020 to $266.4 billion. Software-as-a-service (SaaS) is ...
Mortgage rates are lower this week and are closing in on record territory.
Consider that The Oracle is currently 89 years old - and that he made his single best portfolio investment in over a half century at 87 years old!
Chip-related stocks fell at a faster rate than the broader market Monday as coronavirus fears rattled investors, but analysts contend that the outbreak could have a positive effect for some domestic semiconductor companies.
DEEP DIVE The five biggest U.S. tech companies will report their quarterly results over the next week. The group, led by Apple (AAPL) has propelled the stock market over the past year. Let’s see how some of their numbers compare heading into Tuesday, when Apple kicks off the round of earnings reports.
Bain Capital co-chairman Steve Pagliuca tries to set the record straight on the private equity industry amid frequent attacks by two Democratic presidential hopefuls.
(Bloomberg) -- Boeing Co. has received more than $12 billion of orders for a loan that will help bolster the planemaker’s finances as it grapples with a crisis that’s left its 737 Max grounded since March, according to people familiar with the matter.The deal may be finalized as soon as Monday, said one of the people who asked not to be named because the information is private. The size of the loan is still to be determined, another person said.The loan is expected to have a margin of 100 basis points over the London interbank offered rate and a ticking fee of 9 basis points, as previously reported by Bloomberg News. It will also have a 5 basis points upfront fee, the people said.Citigroup Inc. is leading the financing, which was initially marketed at a size of $10 billion with a two-year delayed-draw term loan structure with potential to grow.The extra commitments from lenders show a vote of confidence by banks in Boeing, one of the people said.CNBC reported earlier on Monday that Boeing had secured more than $12 billion in financing from more than a dozen banks, citing unidentified people familiar with the matter.A representative for Citi declined to comment. A spokesperson for Boeing didn’t immediately respond to a request for comment.\--With assistance from Julie Johnsson.To contact the reporters on this story: Paula Seligson in New York at email@example.com;Jeannine Amodeo in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Natalie Harrison at email@example.com, Nikolaj GammeltoftFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.?2020 Bloomberg L.P.