A study by the American Medical Association has shown lower use of opioid drugs by cancer patients in states with medical cannabis programs. The study by Yuhua Bao, Hao Zhang and Eduardo Bruera sampled 38,189 patients with recently diagnosed breast cancer; 12,816 with colorectal cancer, and 7,190 with lung cancer. According to the findings published on Thursday, medical marijuana legalization carried out between 2012 and 2017 was associated with a 5.5% to 19.2% relative reduction in the rate of opioid dispensing. "Medical marijuana could be serving as a substitute for opioid therapies among some adult patients receiving cancer treatment," the study said. "Future studies need to elucidate the nature of the associations and implications for patient outcomes." On Friday, President Joe Biden signed the Medical Marijuana and Cannabidiol Research Expansion Act into law. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

U.S. stocks fell Monday to kick off a fresh week, with the S&P 500 and Nasdaq both down more than 1.2% heading into midday. The Dow Jones Industrial Average was down about 299 point, or 0.9%, trading near 34,134, while the S&P 500 index was off 1.2% and the Nasdaq Composite Index was 1.4% lower, according to FactSet. Stocks were lower on fears that the Federal Reserve might need to be more aggressive in 2023 in tightening monetary policy than previously expected to tame high inflation, given that the U.S. economy has proven relatively resilient to the Fed's aggressive pace of rate hikes already this year. The 10-year Treasury yield also was marching higher, up 7 basis points to about 3.58% on Monday, while the shorter 2-year Treasury rate was at 4.36%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Fabrice Coffrini/Agence France-Presse/Getty ImagesThere’s a “huge, missing and growing” problem inside the round-the-clock foreign-exchange market, and it’s one that can’t be seen. That’s according to the Bank for International Settlements, which cited trillions in dollar debt by non-U.S. borrowers contained in FX swaps/forwards and currency swaps which do not appear on balance sheets and are missing from statistics. Non-U.S. banks owe upwards of $35 trillion, while non-bank entities outside the U.S. owe as much as $25 trillion, the BIS said in a quarterly report. The total amount in outstanding obligations embedded inside the foreign-exchange market, however, is closer to “$80 trillion-plus,” the report said.“The $80 trillion-plus in outstanding obligations to pay US dollars in FX swaps/forwards and currency swaps, mostly very short-term, exceeds the stocks of dollar Treasury bills, repo and commercial paper combined,” according to the report written by Claudio Borio, Patrick McGuire, and Robert McCauley.FX swap markets, in particular, are vulnerable to funding squeezes and the lack of information about the dollar debt “makes it harder for policy makers to anticipate the scale and geography or dollar rollover needs,” they said. “Thus, in times of crisis, policies to restore the smooth flow of short-term dollars in the financial system (eg central bank swap lines) are set in a fog.”A global squeeze on dollars is one big way that the strong greenback can reverberate around the world. For much of 2022, the dollar has been on a tear and wreaking havoc, though it fell off dramatically in November — shrinking its gain over the past 12 months to 8.9% from 20.6% in late October, based on the ICE U.S. Dollar Index DXY.The Bank for International Settlements, based in Basel, Switzerland, is regarded as the central bank for central banks, with a unique but often overlooked role in the international financial system. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

The latest price moves in bitcoin (BTC) and crypto markets in context for Dec. 5, 2022. First Mover is CoinDesk’s daily newsletter that contextualizes the latest actions in the crypto markets......»»

Foxconn's COVID-hit plant in the Chinese city of Zhengzhou is expected to be back at full output in late December to early January, according to a Reuters report,, which cited an unnamed source at Foxconn. Electronics maker Foxconn, which is a key Apple Inc. supplier, has been battling a COVID outbreak at its Zhengzhou facility that sparked worker unrest. On Monday, Foxconn reported that its November revenue fell 11.4% compared to the same period last year. On a month-over-month basis, revenue fell 29%, which Foxconn said was due to the epidemic in Zhengzhou and production gradually entering off-peak seasonality. The month-over-month decline was roughly in line with the company's expectations, it said. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Manon Brouillette, the chief executive of Verizon Consumer Group, has stepped down from her position, the telecommunications company announced in a Monday morning press release. Brouillette held that role at Verizon Communications Inc. for less than a year, having assumed it in January 2022. Verizon CEO Hans Vestberg will take over leadership of the consumer group in addition to his other responsibilities. "My immediate focus for the Consumer Group will be on driving a closer consistency between the top quality network product we're bringing to market and the operational results we're producing," Vestberg said in a statement. Verizon has reported three straight quarters of subscriber losses in its retail postpaid phone business. Verizon's stock has declined nearly 27% so far this year as the S&P 500 has fallen almost 15%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

VF Corp. shares fell 7% in premarket trades on Monday after the apparel maker warned its 2022 adjusted profit will fall below its earlier view and said it's launching a search for a new chief executive officer. VF Corp. said it now expects 2022 adjusted earnings of $2 to $2.20 a share from $2.40 to $2.50 a share in its earlier view, due to macroeconomic factors as well as the impact of weaker-than-anticipated consumer demand across its categories, primarily in North America. The company is seeing "a more elevated than expected promotional environment as well as order cancellations in the wholesale channel to manage trade inventories." The company is also launching the search for a new CEO after the retirement of Steve Rendle. Lead independent director Benno Dorer has been named interim president and CEO.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Special purpose acquisition company Concord Acquisition Corp. said Monday its deal to buy stablecoin issuer Circle Internet Financial has been terminated. It was originally announced in July 2021 and amended in February. "Concord has been a strong partner and has added value throughout this process, and we will continue to benefit from the advice and support of Bob Diamond and the broader Concord team. We are disappointed the proposed transaction timed out, however, becoming a public company remains part of Circle's core strategy to enhance trust and transparency, which has never been more important," said Jeremy Allaire, co-founder and CEO of Circle, in a statement. Circle said it made a profit of $43 million on revenue of $274 million in the third quarter. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

The daily average of new COVID-19 cases in the U.S. was about 51,000, as of Sunday, according to a New York Times tracker. That's a 28% increase in people testing positive for the virus over the last two weeks. The number of people who are hospitalized with COVID-19 has also increased by 28% over the last 14 days. There are currently about 35,000 people in the hospital. The number of COVID-19 deaths is declining, though about 250 people are still dying every day. The current uptick in new infections in the U.S. is different than past surges, primarily because no one variant is responsible. Three variants - BQ.1, BQ.1.1, and BA.5 - made up at least 76% of cases last week, according to the latest data from the Centers for Disease Control and Prevention.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Tesla Inc. has denied a report that it will cut production at its Shanghai plant by 20% in December owing to weaker demand, according to Reuters. Reuters and Bloomberg Bloomberg reported earlier on Monday that the cuts could come as soon as this week, after the company reviewed the performance of the domestic market, according to sources. It would mark the first volunteer cut in output by the China plant, which also faces competition from BYD and Guangzhou Automobile. Tesla saw weaker deliveries in October. MarketWatch has reached out to Tesla for comment. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Exxon Mobil Corp. said Monday its compensation committee approved an increase in the annual salary for chairman and CEO Darren W. Woods to $1.875 million per year in 2023, up from $1.703 million for 2022. CFO Kathryn A. Mikells will receive an annual base salary of $1.221 million, up from $437,500 in 2021, when she joined the company. Shares of Exxon Mobil are up 79.5% in 2022 compared to a 14.6% loss by the S&P 500 . Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

U.S. stock indexes opened lower on Monday as China began easing its COVID-19 restrictions in major cities, while investors awaited more economic data ahead of next week's Federal Reserve policy meeting. The S&P 500 fell 0.6%, while the Dow Jones Industrial Average declined 0.7% and the Nasdaq Composite shed 0.5%. The 10-year Treasury yield advanced to 3.550% from 3.502% on Friday. Several Chinese cities relaxed movement curbs and testing mandates over the weekend, raising hopes for a broader scaling back of the world's most stringent anti-COVID controls. On Monday, commuters in Beijing and at least 16 other cities were allowed to board buses and subways without a virus test in the previous 48 hours for the first time in months. Shares of Chinese and Hong Kong stocks rallied on Monday, while the U.S.-traded Chinese stocks are on pace to book their biggest advance since at least March.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Shares of Rackspace Technology Inc. were off 8% in Monday morning trading as the cloud-computing company continued to provide information about a security issue that has impacted the company's Hosted Exchange environment. Rackspace disclosed early Saturday that it proactively powered down that environment after discovering an issue, which it determined to be a "security incident." In an update posted to the company's status page early Monday, Rackspace said that it "successfully restored email services to thousands of customers on Microsoft 365 and continue to make progress on restoring email service to every affected customer." Shares have lost two thirds of their value over the past 12 months, as the S&P 500 has fallen 11%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

The AdvisorShares Pure U.S. Cannabis ETF bucked a down trend in the broad equities market on Monday and rallied 7.8%. The surge came days after President Joe Biden signed legislation Friday to expand cannabis research. Reports have also surfaced in recent days that the SAFE Plus Banking measure to open up access to the financial system for cannabis companies may be passed by the end of the year. Among individual stocks, Curaleaf Holdings rose 6%, Green Thumb Industries advanced by 4.7%, Trulieve Cannabis Corp. rose 8.3%, Cresco Labs Inc. rose by 9% and Verano Holdings Corp. rose 5.9%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Pfizer Inc. and BioNTech SE said Monday that they asked the Food and Drug Administration to authorize their updated COVID-19 vaccine as the third dose for children between the ages of 6 months and 5 years old. Children in this age group receive three doses as their primary series of shots. (Older children, teens, and adults get two shots for their primary series.) If the FDA authorizes the new request, children in this age group would receive two of the original shots, and the third shot would be the bivalent dose, which equally targets the original strain of the virus and the BA.4/BA.5 variants. Pfizer's stock is down 14.3%, while BioNTech shares have declined 35.1% so far in 2022. The S&P 500 is down 14.5% for the year. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

All About That Base, No Trouble By Peter Tchir of Academy Securities Last weekend we published Positioning & Key Drivers. Much of the work on interest rates followed up on the previous week’s Rates, Risk & Taylor Swift, but we really wanted to highlight “positioning”, aka “the base”. Positioning has been forming the “base” for market moves in both directions. The market’s response to Fed Chair Powell finally agreeing with us (they have to be much more cautious on rate hikes going forward) exposed the broader positioning in bonds and possibly equities. The rallies were strong, though I’d argue that the equities rally was less about positioning and more about people finally having to accept that the Fed has little interest in driving the economy into the ground. Powell’s message was not contradicted by other Fed speakers and was actually reinforced by them (all good for stocks). There is some furious debate over Friday’s market behavior. What Did Friday’s Price Action Tell Us? Price action early in the week was quite obvious. We saw weak data come in, which was coupled with the Fed pulling back on their tightening narrative (terminal rate is probably still too high). Friday saw stocks and bonds collapse after the Non-Farm Payroll data was released. The strong headline data wasn’t the key driver (though it had some impact). What drove the initial sell-off in stocks and bonds was the high and unexpected jump in average wages. That part is clear. What is less clear is why stocks and bonds reversed course (the 10-year came back from 3.63% to 3.48% and the S&P 500 e-mini futures rebounded from 4,007 back to 4,075 at the 4pm close). There are two competing theories: It’s all about the base. Positioning was so bearish that the market had to rally on news that just a couple of weeks ago would have sent it spiraling down. There is some logic to this, but there is little evidence that the market is so bearishly positioned. We can concede that the market isn’t overly bullish, but this “short covering panic theory” leaves a lot to be desired, at least for me. People questioned the data. For those of you who are sick and tired of reading T-Reports highlighting inconsistencies in the data (big focus on jobs and owners equivalent rent), you may have received many such notes from others this past week. My inbox and social media channels were filled with people questioning the jobs report. There was the now “obvious” discrepancy between the Establishment and the Household Surveys (the Household showed job losses). The data from 2 months ago got revised down (again). There were questions about the birth/death adjustment (was high in a period where other evidence showed that existing small businesses struggled, which isn’t typically a sign that new small businesses were being created rapidly). There were also questions about the historically low response rate (possibly due to timing of the survey and Thanksgiving). Finally, many people started to question if the new and improved ADP data isn’t the better data to watch. Maybe neither explanation is correct? No Trouble? Maybe there are two other big factors influencing markets: The potential for some form of armistice, truce, détente, or something between Russia and Ukraine. While many members of our Geopolitical Intelligence Group see the slog grinding through the winter, there are three things that I think have changed, making some sort of peace more likely. The U.S. election is over. Whether we like it or not, support of Ukraine was an election issue. This support had already started to break down along party lines. Why? I don’t know, but that is certainly my perception. So, with the election over, the ongoing cost of supporting Ukraine with weapons and aid will come to the forefront. The tricky question of “how does this end?” will rise to the top. Can we give Ukraine enough support to push Russia completely out? Possibly, but at what expense and where does that leave Putin and Russia? Energy. It is the winter and energy needs are spiking. The West is set to impose more sanctions and there is something about price caps (which I admit I haven’t read, because they are so unlikely to work and far more likely to backfire). Russia, by all accounts, has done a much better job than the West in securing transport for their fuel (not shocking as we pat ourselves on the back about sanctions while they are busy working around the issues). The logistics of these new sanctions will cause the amount of transportation needed to skyrocket. Quite simply, energy markets used to be somewhat efficient. A delivered to B and C delivered to D because they were closer. If A has to ship to D and B has to ship to C, the distances are longer. Ships would be at sea for longer, reducing the number of shipments. For a lot of reasons, addressing global energy concerns may take precedence over what Ukraine wants (and possibly even deserves). Winter. Winter was already mentioned in the energy discussion, but it plays several other roles. Academy’s GIG expects Russia to try to take advantage of frozen rivers to renew their attack on Ukraine. Russia needs to push west and all the rivers run north/south. At the moment, this forces the Russians to cross over bridges in very specific areas which are easily defended by Ukrainians with their highly capable weapons systems. Frozen rivers could help the Russians, but increasingly the efficiency of Ukrainian soldiers will make any Russian advance more difficult. That has led to targeting more and more infrastructure in Ukraine. Ukrainian winters are bleak at the best of times, let alone without the energy and raw resources needed to survive. The human toll will be bad for Ukraine even if they are technically “winning.” Finally, the forced migration of Ukrainians into Europe is placing unexpected burdens on the countries receiving those refugees. The longer the war and destruction lasts, the less likely people are willing or able to go “home” when it is all said and done. Winter will crystalize many risks. China. China seems to be nudging Putin along. You could almost argue that Xi, when he met with Putin, gave him a “win it, or get out ultimatum.” Let’s not fool ourselves, China would be okay with a Russian victory, but they are tired of the daily headlines. Since Russia hasn’t achieved this victory there could be pressure on Putin (whose health is being questioned again in some circles) to find some “graceful” way out. Putin is a bully, but even bullies recognize bigger bullies and try to appease them. The end of China’s zero-COVID policy. This attracts a lot of attention and seems logical (at least from our perspective). It seems realistic that China will set in motion steps to have fewer and less severe restrictions after the winter (there is that word again). That should be good for global supply chains, but with inventory levels already too high, I’m not sure how much of a bounce can be expected from China shifting their policy. Of all these narratives, I like the “peace” one the best (as you can tell by the time spent on that subject relative to others). If we get another big rally in stocks, it could be linked to developments on this front. Mo Trouble? We’ve examined no trouble, so what could cause more trouble? We covered this in more detail in Doesn’t Goldilocks Get Eaten in the End?, so we will just highlight the key issues. The Fed has already set the dominos in motion. The wealth effect and higher rates are bringing the economy to a screeching halt in some areas that will in turn impact others. The recession is coming sooner and will be deeper than expected (we will ultimately recover, but first we need to get through the recession fears). Quantitative tightening is like a nagging cough. It doesn’t seem too bad, but it certainly isn’t good, and you have to be worried about whether it will develop into something more severe. Without a doubt the Fed is committed to balance sheet reduction (because they now believe what I’ve believed all along – that QE affects asset prices directly and that is a big issue and one they want to resolve). When does bad news become bad? My guess is soon, even after Friday’s reversal (remember, Friday’s NFP data wasn’t really “bad” in any traditional sense, so it’s difficult to garner much information on how the market will respond to truly bad economic news, especially on the jobs front). The Pseudo-Random Wildcard! I like using the term pseudo-random as opposed to random because it sounds “smart,” but is actually appropriate as I’m going to apply it to the trading of daily and weekly expiration options. The prominence of these very short-dated options should not be understated. Report after report comes in showing that volumes in these options are increasing and are a large part of all options trading. This includes not just open interest, but also the back-and-forth trading of these contracts. This literally sets us up for large gamma moves each and every day. Any significant move has a greater likelihood of triggering additional buying or more selling, rather than encouraging profit taking or dip buying. It’s a minefield out there wondering what price point triggers buying from those who sold options, which in turn risks pushing levels to the next option point. It is a massive wildcard in trading these days. But it is not random. There are clearly strategies involved in trading these and just because I don’t understand them (yet) doesn’t mean we should ignore them. I’m reasonably certain of two things about these short expiration options: They mostly amplify already large moves. They allow markets to shift from seemingly being overbought to oversold in record time (and vice versa). In terms of learning more, this is an area that requires more study and better understanding. Bottom Line If it weren’t for my “hopes” that we will see some progress with Russia and Ukraine, I’d be in full anti-Goldilocks mode. Barring any positive news out of this war, I’d like to be in a “risk-off” position. Long/overweight bonds (especially in the 2-to-7-year part of the curve) and short/underweight credit spreads and equities. Since this is what I believe most strongly, it is what I should do. But, if you can’t beat them, join them, so I’d also buy some daily or weekly calls to benefit from any headline risk. Maybe the “everyone is short thesis” is correct, but I’m still not there and don’t believe that last week really supported this theory. The moves were rational given the data (and guesstimating the impact of the short-dated expiration options). On the Fed, I don’t expect them to backtrack, and I am looking for the data to drive the terminal rate lower. It isn’t often that you can be in bearish mode with world peace as the risk against you, so hopefully we get that peace dividend and the daily call options pay off! Tyler Durden Mon, 12/05/2022 - 10:50.....»»

Philip Morris (PM) gains from its pricing power and focus on reduced risk products amid a rising cost scenario. Philip Morris International Inc. PM appears well-poised with its strong pricing power and focus on reduced risk products (RRPs) amid rising cost concerns and soft cigarette volumes.For 2022, the company expects proforma adjusted net revenues to increase by nearly 6.5-8% on an organic basis (compared with 6-8% before). The proforma adjusted EPS, excluding currency impacts, is expected to increase 10-12% to the $6.09-$6.20 range in 2022.Let’s delve deeper.Philip Morris International Inc. Price, Consensus and EPS Surprise Philip Morris International Inc. price-consensus-eps-surprise-chart | Philip Morris International Inc. QuoteFactors Backing Philip MorrisSerious health hazards due to cigarette smoking have pushed consumers toward RRPs. The company is progressing well with its business transformation, with smoke-free products generating more than 30% of the company’s net revenues in the third quarter of 2022.Philip Morris is well-placed toward becoming a majority smoke-free company by 2025. To this end, the company’s IQOS, a heat-not-burn device, counts among one of the leading RRPs in the industry.In the United States, the IQOS was launched in 2019 through a commercial deal with Altria. The deal was approved by the U.S. Food and Drug Administration.However, on Oct 20, 2022, Philip Morris reached a deal with Altria to cease their commercial association related to IQOS in the United States as of Apr 30, 2024. After this date, PM will have total rights to commercialize IQOS in the United States. For this deal, Philip Morris will pay a total cash consideration of $2.7 billion to Altria.In the third quarter of 2022, revenues from RRPs jumped 12.9% to $2,362 million. In the quarter, the company witnessed continued strength in IQOS performance. IQOS ILUMA continued to generate solid results across launch markets.Management expects solid prospects from IQOS in the future. As of Sep 30, 2022, the company is estimated to have roughly 19.5 million IQOS users on a pro-forma basis, reflecting growth of 22% year over year.Philip Morris has been benefiting from its strong pricing power. This has helped the company stay firm, even amid soft cigarette shipment volumes and times of higher taxes.Though higher pricing might lead to a possible decline in cigarette consumption, it is seen that smokers tend to absorb price increases due to the addictive quality of cigarettes. Higher pricing variance was an upside to the company’s performance across most regions in the third quarter of 2022.HurdlesCigarette volumes, in general, have been affected by consumers’ rising health consciousness and a shift to low-risk tobacco alternatives. In the third quarter of 2022, cigarette shipment volumes dropped 1.7% to around 162 billion units. In 2022, the total international industry volume growth (proforma basis) is estimated between flat and an increase of 1%, excluding China and the United States.PM has been battling cost-related headwinds for a while now. In the third quarter of 2022, the proforma adjusted operating income margin fell 1 point on an organic basis. The decline can be attributed to investments related to expanding IQOS ILUMA, the elevated initial cost of ILUMA devices and related heated tobacco units or HTUs, supply-chain constraints (mainly due to the Ukraine war) and global cost inflation.In 2022, the proforma adjusted operating margin growth on an organic basis is likely to come in the range of a decline of 50 basis points (bps) to flat (compared with flat to an increase of 50 bps expected earlier).The gross margin is expected to be lower due to a considerable rise in IQOS device volumes (with supply restrictions easing), the increased initial cost of IQOS ILUMA, elevated logistic costs, growth-oriented investments in the smoke-free space, raw material and energy cost inflation and incremental supply-chain costs.However, the hurdles are likely to be partially compensated by a continued product mix shift from cigarettes to smoke-free products. Pricing power and strength in RRPs are likely to keep Philip Morris on its growth track.Shares of this Zacks Rank #3 (Hold) company have climbed 10.3% in the past three months compared with the industry’s growth of 7.9%.Looking for Consumer Staple Stocks? Check TheseSome better-ranked stocks from the sector are Lamb Weston LW, Conagra Brands CAG and The J. M. Smucker Company SJM.Lamb Weston, a frozen potato product company, currently has a Zacks Rank #2 (Buy). LW has a trailing four-quarter earnings surprise of 47.3%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Lamb Weston’s current financial-year sales and earnings suggests growth of 14.6% and 45.7%, respectively, from the comparable year-ago reported numbers.Conagra Brands, which operates as a consumer-packaged goods food company, carries a Zacks Rank #2 at present. CAG has a trailing four-quarter earnings surprise of 1.8%, on average.The Zacks Consensus Estimate for Conagra Brands’ current financial-year sales and earnings suggests growth of 5.2% and 3.4%, respectively, from the corresponding year-ago reported numbers.The J. M. Smucker, which manufactures and markets branded food and beverage products, currently carries a Zacks Rank of 2. SJM has a trailing four-quarter earnings surprise of 18.5%, on average.The Zacks Consensus Estimate for The J. M. Smucker’s current financial-year sales suggests growth of 5.6% from the year-ago reported figure. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Philip Morris International Inc. (PM): Free Stock Analysis Report Conagra Brands (CAG): Free Stock Analysis Report The J. M. Smucker Company (SJM): Free Stock Analysis Report Lamb Weston (LW): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Owens Corning (OC) boosts shareholder value and announced a quarterly cash dividend hike of 50%. Owens Corning OC is focused on enhancing shareholders’ returns. The company, with world-leading capabilities in building materials systems and composite solutions, announced a quarterly cash dividend hike of 50%. This marks the company’s nineth consecutive annual dividend increase.Owens Corning will pay out a quarterly dividend of 52 cents per share on Jan 19, 2023, to shareholders on record as of Jan 4. The dividend yield is 2.28%, based on the closing share price of $91.16 on Dec 2.Additionally, the board of directors has approved a share repurchase authorization for up to 10 million shares. This is in addition to the previously announced share buyback program in which approximately 7.4 million shares remained available for buyback as of Sep 30, 2022.Share price of the company gained 1.2% during the trading session on Dec 2, 2022.Chief Financial Officer Ken Parks, said, “Moving forward, we will remain committed to maintaining an investment-grade balance sheet and returning at least 50% of free cash flow to shareholders over time."Owens Corning has been executing regular quarterly cash dividend payments. The recent hike instills greater optimism in investors. The move indicates the company’s commitment to delivering long-term shareholder value as well as reflects on its confidence in its financial position and ability to generate sufficient cash flows.At September-end, the company had $751 million in cash and cash equivalents. During the first nine months of 2022, the company returned $639 million to shareholders through share repurchases and dividends.Strategic InitiativesThe company has been progressing well on its key strategic initiatives to outperform the market in the near term. Owens Corning has been focusing on technical and other building insulation businesses on the back of geographic and product expansion through acquisitions as well as on network optimization and manufacturing performance for the Insulation business.In Composites, it is focused on key markets and geographies where it has a market-leading position like North America, Europe and India. In the Roofing segment, Owens Corning is leveraging vertical integration, material science capabilities, and commercial strength to design as well as market unique roofing shingles and components that attract contractors, homeowners and distributors. Image Source: Zacks Investment ResearchManagement believes that the company is well placed to continue with its growth momentum and keep boosting shareholders’ wealth, backed by strong pricing action, structural improvements and strategic investments. The Zacks Rank #3 (Hold) stock has gained more than 0.7% so far this year, broadly outperforming the Zacks Building Products - Miscellaneous industry’s 21.4% decline. The uptrend can be attributed to the above-mentioned tailwinds and a strong surprise history, having topped analysts’ expectations in the trailing 14 quarters.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Some better-ranked stocks which warrant a look in the Construction sector include:United Rentals URI — carrying a Zacks Rank #2 (Buy) — is the largest equipment rental company in the world, with an integrated network of 1,390 rental locations in the United States, Canada and Europe.URI’s expected earnings growth rates for 2022 and 2023 are 47.3% and 12.5%, respectively. The Zacks Consensus Estimate for current-year and next-year earnings has improved to $32.50 and 36.57 per share from $32.41 and $36.27 per share, respectively, over the past 30 days.EMCOR Group, Inc. EME — carrying a Zacks Rank #2 — is one of the leading providers of mechanical and electrical construction, industrial and energy infrastructure, as well as building services for a diverse range of businesses.EME’s expected earnings growth rates for 2022 and 2023 are 10.2% and 17%, respectively. The Zacks Consensus Estimate for current-year and next-year earnings has improved 0.4% and 3.3%, respectively, over the past 30 days.Sterling Infrastructure, Inc. STRL — also carrying a Zacks Rank #2 — has been benefiting from broad-based growth across the e-infrastructure, building and transportation solutions segments.STRL’s expected earnings growth rates for 2022 and 2023 are 47.4% and 6.3%, respectively. The Zacks Consensus Estimate for current-year and next-year earnings has improved 4.3% and 3.4%, respectively, over the past 30 days. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EMCOR Group, Inc. (EME): Free Stock Analysis Report United Rentals, Inc. (URI): Free Stock Analysis Report Owens Corning Inc (OC): Free Stock Analysis Report Sterling Infrastructure, Inc. (STRL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

MRC Global (MRC) stands to benefit from strength in its gas utility sector owing to distribution integrity upgrade programs and new home. MRC's measures to reward its shareholders are encouraging. MRC Global Inc. MRC is benefiting from strength in its businesses, accretive contract wins and a sound capital-deployment strategy.The currently Zacks Rank #1 (Strong Buy) player has a market capitalization of $996.6 million. In the past year, the stock has gained 64% compared with the industry’s growth of 45.5%.Let’s delve into the factors that make the company a smart investment choice at the moment.Image Source: Zacks Investment ResearchBusiness Strength: MRC Global stands to gain from its presence in diversified end markets, including upstream production, gas utilities, midstream pipelines, downstream, industrial and energy transition. Its gas utility sector will likely benefit from long-term market drivers including distribution integrity upgrade programs and new home construction. New energy transition-related projects, project turnaround activity and maintenance, repair and operations (MRO) activities is expected to aid the company’s second-largest sector (downstream, industrial and energy transition) DIET sector in the quarters ahead.Attractive Contract Wins: MRC Global will likely become more competent on attractive contract wins and projects. Its gas utility sector will likely benefit from several contracts awarded by the largest gas utilities in the United States. Also, MRC’s businesses in the industrial, downstream and energy transition sectors are expected to gain from contracts with some of the largest refiners in the United States. MRC generated 32.3% of revenues from valves, automation, and measurement & instrumentation product line in the third quarter of 2022.Rewards to Shareholders: MRC Global’s measures to reward its shareholders through dividend payments are impressive. In 2021 and during the first nine months of 2022, MRC paid out dividends worth $24 million and $18 million, respectively. It also bought back shares worth $2 million during the first nine months.Northbound Estimate Revision: In the past 60 days, the Zacks Consensus Estimate for 2022 earnings has been revised 42% upward.Other Key PicksSome other top-ranked companies from the Industrial Products sector are discussed below:Applied Industrial Technologies, Inc. AIT presently has a Zacks Rank #1 and a trailing four-quarter earnings surprise of 24.8%, on average. You can see the complete list of today’s Zacks #1  Rank stocks.AIT’s earnings estimates have increased 4.6% for fiscal 2023 (ending June 2023) in the past 60 days. Shares of Applied Industrial have risen 29.1% in the past year.IDEX Corporation IEX presently has a Zacks Rank of #2 (Buy). IEX’s earnings surprise in the last four quarters was 5.7%, on average.In the past 60 days, IDEX’s earnings estimates have increased 1.8% for 2022. The stock has rallied 3.1% in the past year.EnerSys ENS delivered an average four-quarter earnings surprise of 2.1%. ENS presently carries a Zacks Rank of 2.ENS’ earnings estimates have increased 0.6% for fiscal 2023 (ending March 2023) in the past 60 days. The stock has gained 1.1% in the past six months. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report IDEX Corporation (IEX): Free Stock Analysis Report MRC Global Inc. (MRC): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Robust leasing activity amid growing customers' preference for in-person shopping experience, healthy operating performance and strategic buyouts drive Kimco's (KIM) 22.8% quarter-to-date rise. Shares of Kimco Realty KIM have gained 22.8% in the quarter-to-date period compared with its industry’s rally of 19.6%.This Jericho, NY-based retail real estate investment trust (REIT) has well-located properties, which are predominantly grocery-anchored, in the drivable first-ring suburbs of its top major metropolitan Sunbelt and coastal markets. These markets offer several growth levers like high employment and strong spending power, poising Kimco well for growth.It reported third-quarter 2022 funds from operations (FFO) per share of 41 cents, surpassing the Zacks Consensus Estimate of 39 cents. The figure grew 28.1% from the year-ago quarter.The quarterly results reflected year-over-year growth in the top line. The rise in occupancy levels and rental rate growth aided Kimco’s performance.Image Source: Zacks Investment ResearchLet us decipher the factors behind the surge in the stock price.Improving Leasing Environment: The increase in consumers’ preference for in-person shopping experience following the pandemic downtime has been driving the recovery in the retail real estate industry. Retailers continue to rent out more physical store spaces to meet this growing demand. As a result, Kimco’s portfolio of neighborhood and community shopping centers in the United States has been experiencing healthy leasing activity.For the nine months ended Sep 30, 2022, it executed 1,294 leases aggregating more than 8.3 million square feet. This comprised 397 new leases and 897 renewals and options.Healthy Operating Performance: A large portion of Kimco’s portfolio comprises grocery-anchored centers that offer essential goods and services. This segment generated 81% of Kimco’s annual base rent in the third quarter of 2022 and aided the company’s occupancy growth, leasing activity and continuation of positive leasing spreads.The company’s pro-rata portfolio occupancy at the end of the third quarter was 95.3%, reflecting an expansion of 120 basis points (bps) year over year.KIM’s blended pro-rata rental-rate spreads on comparable spaces increased 7.5%, with rental rates for new leases growing 16.5% and renewals and options rising 6.2% for the third quarter.Focus on Mixed-Use Assets: Kimco has been focusing on its mixed-use assets clustered in strong economic metropolitan statistical areas that serve the last mile. This segment is gaining from the recovery in both the apartment and retail sectors. Through a selected collection of mixed-use projects, redevelopments and active investment management, KIM has been targeting to increase its net asset value.Acquisitions & Development Initiatives: To enhance its overall portfolio quality, Kimco has been focusing on various acquisitions and development activities. This November, it acquired a private, multi-generationally-owned portfolio of eight shopping centers in Long Island, NY, for $375.8 million.The buyout boosts Kimco’s presence in the high barrier-to-entry market of New York. Moreover, the company is expected to capitalize on the highly captive consumer base with some of the best demographic profiles in the country that Long Island’s ultra-infill markets have to offer.In addition, Kimco’s active development and redevelopment pipeline is encouraging.Balance Sheet Strength: The company maintains a solid balance-sheet position with ample liquidity. It exited third-quarter 2022 with $2 billion of immediate liquidity and a net debt to EBITDA of 5.9X. KIM also enjoys investment-grade credit ratings of BBB+ from S&P Global Ratings and Baa1 from Moody’s, giving it favorable access to the debt market.Its well-laddered debt maturity schedule and strong financial flexibility have positioned it well to capitalize on long-term growth opportunities.Dividends: Solid dividend payouts remain the biggest enticement for REIT investors, and KIM has remained committed to that. Concurrent with its third-quarter earnings release on Oct 27, 2022, KIM increased its dividend payment from 22 cents per share paid out earlier to 23 cents. This represents a 4.5% sequential rise from the prior dividend payment and a 35.3% increase year over year. Such efforts boost investors’ confidence in the stock.FFO Growth: Kimco’s management raised the outlook for 2022 FFO per share. It now projects the same in the range of $1.57-$1.59, up from the prior outlook of $1.54-$1.57.Analysts, too, seem bullish on this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for the 2022 FFO per share, which is currently pegged at $1.58, implies a rise of 14.49% for 2022 compared with the industry’s average of 8.49%.Stocks to ConsiderSome better-ranked stocks from the retail REIT sector are Regency Centers REG, Tanger Factory Outlet Centers SKT and American Assets Trust AAT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Regency Centers’ current-year FFO per share is currently pegged at $3.99.The Zacks Consensus Estimate for Tanger Factory Outlet Centers’ ongoing year’s FFO per share has presently stands at $1.81.The Zacks Consensus Estimate for American Assets Trust’s 2022 FFO per share is pegged at $2.32, presently.Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kimco Realty Corporation (KIM): Free Stock Analysis Report Regency Centers Corporation (REG): Free Stock Analysis Report Tanger Factory Outlet Centers, Inc. (SKT): Free Stock Analysis Report American Assets Trust, Inc. (AAT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»