Advertisements


AMC Theaters CEO uses Twitter to build relationships with retail investors

If you’re a small investor and own shares of AMC, don’t be surprised if you get a Twitter follow from the company’s Chairman and Chief Executive Officer, Adam Aron. .....»»

Category: topSource: foxnewsMay 24th, 2021

AMC Theaters CEO uses Twitter to build relationships with retail investors

If you’re a small investor and own shares of AMC, don’t be surprised if you get a Twitter follow from the company’s Chairman and Chief Executive Officer, Adam Aron. .....»»

Category: topSource: foxnewsMay 24th, 2021

The Zacks Rank Explained: How to Find Strong Buy Oils and Energy Stocks

Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Rank. Building a successful investment portfolio takes skill and hard work, no matter if you're a growth, value, income, or momentum-focused investor.How do you find the right combination of stocks that will generate returns that could fund your retirement, or your kids' college tuition, or your short- and long-term savings goals?Enter the Zacks Rank.What is the Zacks Rank?The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, that makes building a winning portfolio easier.There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.Each factor is given a raw score, which is recalculated every night and compiled into the Zacks Rank. Utilizing this data, stocks are put into five different groups: Strong Buy, Buy, Hold, Sell, and Strong Sell.The Power of Institutional InvestorsThe Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.Institutional investors are responsible for managing the trillions of dollars invested in mutual funds, hedge funds, and investment banks. Research has shown that these investors can and do move the market due to the large amount of money they deal with, and thus, the market tends to move in the same direction as them.In order to figure out the fair value of a company and its shares, these investors will build valuation models focused on earnings and earnings expectations. Because if you raise estimates for the bottom line, it creates a higher fair value for a company.Institutional investors then act on these changes in earnings estimates, typically buying stocks with rising estimates and selling those with falling estimates; an increase in earnings estimates can translate into higher stock prices and bigger gains for the investor.Since it can often take weeks, if not months, for an institutional investor to build a position (given their size), retail investors who get in at the first sign of upward earnings estimate revisions have a distinct advantage over these larger investors, and can benefit from the expected institutional buying that will follow.Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.How to Invest with the Zacks RankThe Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +25.41%.Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.Let's take a look at Ovintiv (OVV), which was added to the Zacks Rank #1 list on September 23, 2021.Ovintiv Inc. is an independent energy producer, which explores and churns out oil and natural gas from diverse assets located in the United States and Canada. Previously known as Encana, the company rebranded and shifted its corporate domicile from Calgary, Canada to Denver, U.S.  Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2021, while the Zacks Consensus Estimate has increased $0.50 to $5.03 per share. OVV also boasts an average earnings surprise of 24.3%.Earnings are forecasted to see growth of 1337.1% for the current fiscal year, and sales are expected to increase 25.4%.Additionally, OVV has climbed higher over the past four weeks, gaining 12.6%. The S&P 500 is down 0.9% in comparison.Bottom LineWith a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Ovintiv should be on investors' shortlist.If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.Discover Today's Top StocksOur private Zacks #1 Rank List, based on our quantitative Zacks Rank stock-rating system, has more than doubled the S&P 500 since 1988. Applying the Zacks Rank in your own trading can boost your investing returns on your very next trade. See Today's Zacks #1 Rank List >> More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>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 Ovintiv Inc. (OVV): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 33 min. ago

JPMorgan (JPM) Buys College Financial Planning Platform Frank

JPMorgan (JPM) acquires the college financial planning platform, Frank. JPMorgan JPM has acquired the college financial planning platform, Frank. The acquisition adds to the many deals entered by the bank over the past few months in a bid to compete with technology firms.The entire business of Frank, including its Easy FAFSA, Classfinder College Course Marketplace, Scholarships & Employment tools, and Financial Education and Careers content, is being acquired by the bank.Serving more than five million students at more than 6,000 higher education institutions, Frank’s simple online portal allows students to apply for financial aid in minutes and enroll in its catalog of affordable online college courses.Jennifer Piepszak, co-CEO of JPMorgan, stated, “We want to build lifelong relationships with our customers. Frank offers a unique opportunity for deeper engagement with students. Together, we’ll be able to expand our capabilities for students and their families, helping them financially prepare for college and other major moments in their future.”The founder and CEO of Frank, Charlie Javice, said, “We launched Frank to make college more accessible for students and their families, and have already helped millions across the nation. We look forward to joining the Chase family to further this mission. Together, we can multiply our impact to help more students and their families achieve their financial goals and education dreams.”The buyout is expected to accelerate JPMorgan’s strong foundation with students, including products, content and guidance for students of all ages, with branches and ATMs on or in close proximity to more than 300 college campuses across the country.Our TakeOf late, JPMorgan has been undertaking several strategic buyouts. The company has been on an expansion spree for a long time now. In a bid to expand into the dining business, recently, JPMorgan agreed to acquire the popular restaurant recommendation website, The Infatuation. Also, it signed a deal with Volkswagen AG’s VWAGY subsidiary, Volkswagen Financial Services, in a bid to enter the automotive industry and bolster digital payment competencies.A few other notable buyouts in recent months include that of OpenInvest, a 40% stake in Brazil's C6 Bank and 55ip. The deals are expected to help boost JPMorgan’s fee income.Further, as part of its plan of establishing a banking presence in the U.K., JPMorgan acquired one of the largest robo advisory firms of the U.K., Nutmeg. Also, it has recently launched its long-planned digital retail bank Chase in the region.While the bank’s expansion in the U.K. will help it in capitalizing on the acceleration of the digital banking boom, it is expected to face tough competition from the large traditional banks like HSBC Holdings HSBC and Barclays BCS, which are looking to expand digital offerings.So far this year, shares of JPMorgan have gained 20.4% compared with 23.8% growth recorded by the industry.2 Image Source: Zacks Investment Research Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>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 JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Barclays PLC (BCS): Free Stock Analysis Report HSBC Holdings plc (HSBC): Free Stock Analysis Report Volkswagen AG (VWAGY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 2021

How to Find Strong Buy Auto, Tires and Trucks Stocks Using the Zacks Rank

Finding strong, market-beating stocks with a positive earnings outlook becomes easier with the Zacks Rank. Building a successful investment portfolio takes skill and hard work, no matter if you're a growth, value, income, or momentum-focused investor.How do you find the right combination of stocks that will generate returns that could fund your retirement, or your kids' college tuition, or your short- and long-term savings goals?Enter the Zacks Rank.What is the Zacks Rank?The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, that makes building a winning portfolio easier.There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.These four factors are assigned a raw score that's recalculated every night, which is then compiled into the ranking system. Stocks are classified into five groups using this data, ranging from "Strong Buy" to "Strong Sell."The Power of Institutional InvestorsThe Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.Institutional investors are the professionals who manage the trillions of dollars invested in mutual funds, investment banks, and hedge funds. Studies have shown that these investors can and do move the market due to the large amounts of money they invest with. Because of this, the market tends to move in the same direction as institutional investors.In order to determine the fair value of a company and its shares, institutional investors design valuation models that focus on earnings and earnings estimates. Because if you raise earnings estimates, it then creates a higher fair value for a company and its stock price.With these changes, institutional investors will act, usually buying stocks with rising estimates and selling those with falling estimates. An increase in earnings expectations can potentially lead to higher stock prices and bigger gains for the investor.Retail investors who get in at the first sign of upward revisions have a distinct advantage over larger investors since it can often take weeks, if not months, for an institutional investor to build a position. They'll also benefit from the expected institutional buying that could follow.Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.How to Invest with the Zacks RankThe Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +25.41%.Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.Let's take a look at CNH Industrial (CNHI), which was added to the Zacks Rank #1 list on September 22, 2021.CNH Industrial N.V., with principal office in London, United Kingdom, offers vehicles for agricultural and industrial purposes. Its products range from tractors to trucks and buses, along with powertrain solutions for off and on-road, and marine vehicles. It has 12 brands that offer equipment, catering to a wide consumer base. In September 2013, the company was formed after merging Fiat Industrial S.p.A. (“Fiat Industrial”) and CNH Global N.V. (“CNH Global”). It has four operating segments:For fiscal 2021, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.19 to $1.32 per share. CNHI boasts an average earnings surprise of 179.7%.Earnings are forecasted to see growth of 371.4% for the current fiscal year, and sales are expected to increase 25.9%.Additionally, CNHI has climbed higher over the past four weeks, gaining 0.1%. The S&P 500 is down 1.9% in comparison.Bottom LineWith a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, CNH Industrial should be on investors' shortlist.If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.Discover Today's Top StocksOur private Zacks #1 Rank List, based on our quantitative Zacks Rank stock-rating system, has more than doubled the S&P 500 since 1988. Applying the Zacks Rank in your own trading can boost your investing returns on your very next trade. See Today's Zacks #1 Rank List >> Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>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 CNH Industrial N.V. (CNHI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 2021

This Top Oils and Energy Stock is a #1 (Strong Buy): Why It Should Be on Your Radar

Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Rank. Building a successful investment portfolio takes skill and hard work, no matter if you're a growth, value, income, or momentum-focused investor.But what's the best way to find the right combination of stocks? Because funding things like your retirement, your kids' college tuition, or your short- and long-term savings goals will definitely require significant returns.Enter the Zacks Rank.What is the Zacks Rank?A unique, proprietary stock-rating model, the Zacks Rank uses earnings estimate revisions, or changes to a company's earnings expectations, to help investors create a winning portfolio.There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.Each one of these factors is given a raw score that's recalculated every night, and then compiled into the Zacks Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."The Power of Institutional InvestorsThe Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.These professionals manage the trillions of dollars invested in hedge funds, mutual funds, and investment banks, and studies have shown that they can and do move the market because of the large amounts of money they invest with. Thus, the market tends to move in the same direction as institutional investors.In order to figure out the fair value of a company and its shares, these investors will build valuation models focused on earnings and earnings expectations. Because if you raise estimates for the bottom line, it creates a higher fair value for a company.Institutional investors will use these changes to help in their decision-making, typically buying stocks with rising estimates and selling those with falling estimates. Higher earnings expectations can translate into a rise in stock price and bigger gains for the investor.Because it can take a long time for an institutional investor to build a position -- sometimes weeks, if not months -- retail investors who get in at the first sign of upward revisions have a distinct advantage over these larger investors, and can benefit from the expected institutional buying that will follow.Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.How to Invest with the Zacks RankThe Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +25.41%.Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.Let's take a look at Northern Oil and Gas (NOG), which was added to the Zacks Rank #1 list on September 21, 2021.Northern Oil and Gas, Inc. is an independent upstream operator engaged in the acquisition, exploration, development and production of oil and natural gas properties. Headquartered in Minnetonka, MN, the firm is primarily focused on three leading basins of the United States — the Williston, Permian and the Appalachian.Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2021. The Zacks Consensus Estimate has increased $0.40 to $3.14 per share. NOG boasts an average earnings surprise of 19.2%.Analysts are expecting earnings to grow 72.5% for the current fiscal year, with revenue forecasted to rise 209.7%.Even more impressive, NOG has gained in value over the past four weeks, up 12.7% compared to the S&P 500's loss of 1.8%.Bottom LineWith a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Northern Oil and Gas should be on investors' shortlist.If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.Discover Today's Top StocksOur private Zacks #1 Rank List, based on our quantitative Zacks Rank stock-rating system, has more than doubled the S&P 500 since 1988. Applying the Zacks Rank in your own trading can boost your investing returns on your very next trade. See Today's Zacks #1 Rank List >> 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Northern Oil and Gas, Inc. (NOG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

This Top Retail and Wholesale Stock is a #1 (Strong Buy): Why It Should Be on Your Radar

Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Rank. Building a successful investment portfolio takes skill and hard work, no matter if you're a growth, value, income, or momentum-focused investor.But what's the best way to find the right combination of stocks? Because funding things like your retirement, your kids' college tuition, or your short- and long-term savings goals will definitely require significant returns.Enter the Zacks Rank.What is the Zacks Rank?A unique, proprietary stock-rating model, the Zacks Rank uses earnings estimate revisions, or changes to a company's earnings expectations, to help investors create a winning portfolio.There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.Each one of these factors is given a raw score that's recalculated every night, and then compiled into the Zacks Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."The Power of Institutional InvestorsThe Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.These professionals manage the trillions of dollars invested in hedge funds, mutual funds, and investment banks, and studies have shown that they can and do move the market because of the large amounts of money they invest with. Thus, the market tends to move in the same direction as institutional investors.In order to figure out the fair value of a company and its shares, these investors will build valuation models focused on earnings and earnings expectations. Because if you raise estimates for the bottom line, it creates a higher fair value for a company.Institutional investors will use these changes to help in their decision-making, typically buying stocks with rising estimates and selling those with falling estimates. Higher earnings expectations can translate into a rise in stock price and bigger gains for the investor.Because it can take a long time for an institutional investor to build a position -- sometimes weeks, if not months -- retail investors who get in at the first sign of upward revisions have a distinct advantage over these larger investors, and can benefit from the expected institutional buying that will follow.Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.How to Invest with the Zacks RankThe Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +25.41%.Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.Let's take a look at O'Reilly Automotive (ORLY), which was added to the Zacks Rank #1 list on August 13, 2021.O'Reilly Automotive, Inc. is a leading specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. Founded in 1957, O'Reilly’s initially operated from a single store in Springfield, MO. The company’s stores offer several services and programs to customers, which include battery diagnostic testing, check engine light code extraction and loaner tool program, among others. The products offered by the company stores are vehicle accessories, such as floor mats and seat cover as well as maintenance items like antifreeze, engine additives, filters, fluids, lighting and wiper blades. Besides these, it provides new as well as remanufactured automotive hard parts like alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts and fuel pumps.11 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2021. The Zacks Consensus Estimate has increased $1.85 to $27.65 per share. ORLY boasts an average earnings surprise of 15.8%.Analysts are expecting earnings to grow 17.5% for the current fiscal year, with revenue forecasted to rise 8.6%.Even more impressive, ORLY has gained in value over the past four weeks, up 0.6% compared to the S&P 500's loss of 1.8%.Bottom LineWith a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, O'Reilly Automotive should be on investors' shortlist.If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.Discover Today's Top StocksOur private Zacks #1 Rank List, based on our quantitative Zacks Rank stock-rating system, has more than doubled the S&P 500 since 1988. Applying the Zacks Rank in your own trading can boost your investing returns on your very next trade. See Today's Zacks #1 Rank List >> 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 OReilly Automotive, Inc. (ORLY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

This Top Retail and Wholesale Stock is a #1 (Strong Buy): Why It Should Be on Your Radar

Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Rank. Building a successful investment portfolio takes skill and hard work, no matter if you're a growth, value, income, or momentum-focused investor.But what's the best way to find the right combination of stocks? Because funding things like your retirement, your kids' college tuition, or your short- and long-term savings goals will definitely require significant returns.Enter the Zacks Rank.What is the Zacks Rank?A unique, proprietary stock-rating model, the Zacks Rank uses earnings estimate revisions, or changes to a company's earnings expectations, to help investors create a winning portfolio.There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.Each one of these factors is given a raw score that's recalculated every night, and then compiled into the Zacks Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."The Power of Institutional InvestorsThe Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.These professionals manage the trillions of dollars invested in hedge funds, mutual funds, and investment banks, and studies have shown that they can and do move the market because of the large amounts of money they invest with. Thus, the market tends to move in the same direction as institutional investors.In order to figure out the fair value of a company and its shares, these investors will build valuation models focused on earnings and earnings expectations. Because if you raise estimates for the bottom line, it creates a higher fair value for a company.Institutional investors will use these changes to help in their decision-making, typically buying stocks with rising estimates and selling those with falling estimates. Higher earnings expectations can translate into a rise in stock price and bigger gains for the investor.Because it can take a long time for an institutional investor to build a position -- sometimes weeks, if not months -- retail investors who get in at the first sign of upward revisions have a distinct advantage over these larger investors, and can benefit from the expected institutional buying that will follow.Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.How to Invest with the Zacks RankThe Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +25.41%.Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.Let's take a look at Penske Automotive (PAG), which was added to the Zacks Rank #1 list on July 31, 2021.Established in 1990, Penske Automotive Group, Inc., based in Bloomfield Hills, MI, engages in the operation of automotive and commercial truck dealerships in the United States, Canada and Western Europe. The company also distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in Australia and New Zealand. It employs more than 27,000 people across the globe.Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2021. The Zacks Consensus Estimate has increased $3.10 to $13.37 per share. PAG boasts an average earnings surprise of 33.9%.Analysts are expecting earnings to grow 101.4% for the current fiscal year, with revenue forecasted to rise 26.7%.Even more impressive, PAG has gained in value over the past four weeks, up 10.8% compared to the S&P 500's loss of 1.8%.Bottom LineWith a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Penske Automotive should be on investors' shortlist.If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.Discover Today's Top StocksOur private Zacks #1 Rank List, based on our quantitative Zacks Rank stock-rating system, has more than doubled the S&P 500 since 1988. Applying the Zacks Rank in your own trading can boost your investing returns on your very next trade. See Today's Zacks #1 Rank List >> 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Penske Automotive Group, Inc. (PAG): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 21st, 2021

"Many People Will Be Arrested" - Evergrande Lured Retail Investors Into Billions Of "Wealth Management Products" With Gucci Bags, Dyson Air Purifiers

"Many People Will Be Arrested" - Evergrande Lured Retail Investors Into Billions Of "Wealth Management Products" With Gucci Bags, Dyson Air Purifiers In our post detailing how Evergrande became a "too big to fail" anchor of China's shadow banking system, we noted that a key missing piece in the company's funding was selling wealth management products  - i.e., unregulated "shadow banking" products - to outside investors, as well as its own employees and their families, promising returns up to 13%. It is these WMP investors that are currently besieging the company's offices across the country in hopes of getting some of their principal back, and which include everyone from paint suppliers to decoration and construction companies. To them, Evergrande owes more than 800 billion yuan ($124 billion) due within one year, while it has only a 10th of that amount of cash on hand. It will have even less once the now officially defaulted company makes priority payments to its banks and creditors. Expanding on this striking funding source, Reuters today writes that lured by the promise of yields as high as 12, "tens of thousands of investors bought wealth management products" through China Evergrande, a transaction which was softened by gifts such as Dyson air purifiers and Gucci bags, not to mention the guarantee of China’s top-selling developer, a guarantee which we now know was worthless. And now, many investors fear they may never get their investments back after the cash-strapped property developer recently stopped repaying some investors and set off global alarm bells over its massive debt. Some have been protesting at Evergrande offices, refusing to accept the company’s plan to provide payment with discounted apartments, offices, stores and parking units, which it began to implement on Saturday. “I bought from the property managers after seeing the ad in the elevator, as I trusted Evergrande for being a Fortune Global 500 company,” said the owner of an Evergrande property in the conglomerate’s home province of Guangdong surnamed Du. “It’s immoral of Evergrande not to pay my hard-earned money back,” said the investor, who had put 650,000 yuan ($100,533) into Evergrande wealth management products (WMPs) last year at an interest rate of more than 7%. That investor is about to learn that in addition to return, there is also risk, a concept almost forgotten in today's world where central banks and authoritarian governments do everything to preserve the "wealth effect" and avoid social unrest resulting from stock price crashes. According to a sales manager of Evergrande Wealth, launched in 2016 as a peer-to-peer (P2) online lending platform that originally was used to fund its property project, more than 80,000 people – including employees, their families and friends as well as owners of Evergrande properties - bought WMPs that raised more than 100 billion yuan in the past five years. Of these investments, some 40 billion yuan are still outstanding, and will likely never be repaid. Last week, Evergrande revealed that even Ding Yumei, the wife of billionaire founder Hui Ka Yan, had bought $3 million of the company’s investment products in a show of support. As the FT adds, Evergrande financial advisers marketed the products widely, including to homeowners in its apartment blocks, while its managers persuaded subordinates to invest, the executives of Evergrande’s wealth management division said. The publication adds that one executive - who spoke during a meeting with angry investors who went to the company’s Shenzhen headquarters to try to get their money back - suggested the products were too high risk for ordinary retail investors and should not have been offered to them. Of course, it is way too late now. "My parents put the bulk of their savings, which is Rmb200,000 and not a lot by Evergrande’s standard, into its [wealth management products],” said the daughter of one investor who asked to be identified by her surname Xu. She said an Evergrande financial adviser stationed in an apartment tower built by the company in central China had persuaded her mother to invest. “They wouldn’t have trusted Evergrande’s wealth products had they not bought the developer’s apartment,” she said. “All they wanted was to ease the financial pressure from buying expensive cancer drugs [for Xu’s mother], nothing else.” Last week, Xu was one of hundreds of people who travelled to Evergrande’s Shenzhen headquarters in hopes of recovering their investment. One investor named Rosy Chen and her husband, an Evergrande employee, invested Rmb100,000 this year in a product with an advertised 11.5 per cent annual return on the urging of one of his superiors. The cash went to “supplement” the working capital of a company called Hubei Gangdun Materials, according to the investment contract. Hundreds of home buyers, retail investors and Evergrande contractors converged on the property group’s Shenzhen headquarters last week seeking repayment. Photo: AFP/Getty “At first we waited, but when we saw we were among the only families in the whole [Evergrande] division not to buy in, we decided to invest too,” said Chen. “We believed Evergrande wouldn’t cheat its own employees.” Remarkably, this hit to Chinese investors and resulting social unrest, comes as a time when China's Xi has launched a renewed pursuit of core Marxism with his "Common prosperity" initiative, which also coincides with China’s years-long effort to deleverage its economy, which has pushed companies to resort to off-balance sheet investments in search of funding. It's why we said recently that what is happening to Evergrande is a symptom of China's great deleveraging campaign, which however for a country with 350% debt/GDP is doomed to fail. The funniest thing about the whole Evergrande fiasco is that it's due to China pretending it can reduce its debt without a crash. Guys, ain't happening: at least the US accepts this and has adopted the idiocy that is MMT to justify perpetual debt increase until it all blows up pic.twitter.com/xdw4F7CTQV — zerohedge (@zerohedge) September 20, 2021 Incidentally China has only itself to blame for the Evergrande crisis. Having allowed unprecedented debt growth for much of the past decade, last year Beijing capped debt levels of property developers last year as part of its "three red lines" policy which limited how much debt growth various tiers of developers can engage in. As a result, the most indebted players like Evergrande - feeling even more pressure to find new sources of capital to ease mounting liquidity stress - ended up moving to the unregulated "shadow banking" market, and turned to employees, suppliers and clients for cash through commercial paper, trust and wealth management products. Evergrande Wealth started to sell WMPs to individuals in 2019 after a regulatory crackdown led to a collapse of the P2P lending sector, said the sales manager and another Evergrande employee who bought the WMPs. To attract investors, the sales manager offered gifts such as Dyson air purifiers and Gucci handbags to each person who bought more than 3 million yuan of WMPs during a Christmas promotion last year. A product leaflet provided by the sales manager seen by Reuters showed the WMPs are categorized as fixed-income products suitable for “conservative investors seeking steady returns”. It was anything but. In an interview with local media, one Evergrande financial adviser said the products were a type of “supply chain finance”. While the money from retail investors may in years past have gone to its suppliers, the Evergrande executives in Shenzhen receiving retail investors said this was no longer the case. Asked about Hubei Gangdun, one of the executives of Evergrande’s wealth management division said that it was just a shell company. “Proceeds from the WMPs have been used to bridge various funding gaps faced by the parent company,” the executive said. “There is no need to thoroughly examine where the money actually went. “Some WMP proceeds were used to repay previous products but sales plummeted, making it difficult for the business model to continue,” he admitted. "Many people . . . might be arrested for financial fraud if investors don’t get paid off,” he said. “Our products were not for everyone. But our grassroots salespeople didn’t consider this when making their sales pitches and they targeted everyone in order to meet their own sales targets.” Translation: Evergrande used not just Ponzi instruments, but unregulated Ponzi instruments, which are now worth nothing. In two products sold last November, a construction company in Qingdao was looking to raise up to 10 million yuan with annualized yield of 7% in one and 20 million yuan with yields ranging from 7.8% to 9.5%, depending on the investment size, in another. Minimum investments were 100,000 yuan and 300,000 yuan, respectively. According to the sale manager, to make its products especially attractive, Evergrande offered additional yield up to 1.8% to certain investors, which would push returns to above 11% for a 12-month investment, an interest rate which in a world of zero rates, indicates funding stress if nothing else. Proceeds were to be used for Qingdao Lvye International Construction Co’s working capital, the documents showed. Repayment would either come from the issuer’s income or from Evergrande Internet Information Service (Shenzhen) Co, a subsidiary that runs Evergrande Wealth and promises to cover the principal and interest if an issuer fails to repay, the prospectus said. The sales manager said the Qingdao company was working on Evergrande projects and would use the payment from Evergrande upon completion to repay investors. “It’s a de-facto Evergrande product,” he said. Other highly leveraged Chinese conglomerates including HNA Group, which declared bankruptcy early this year, and China Baoneng have used similar products. It was the overreliance of China's giant conglomerates on shadow banking - among others - that prompted us back all the way back in 2018 to predict that after HNA and Anbang, Evergrande would fail next. Anbang first, then HNA, Evergrande and Dalian Wanda — zerohedge (@zerohedge) February 23, 2018 Earlier this week, Evergrande said that six senior executives would face “severe punishment” for securing early redemptions on investment products after retail investors were told that they would not be repaid on time. Another big question is whether Evergrande ever included the 40 billion yuan of WMPs among the liabilities on its balance sheet; as the FT notes, the answer "remains unclear." “We expect part of it should be included in the total liabilities . . . however, there was no detailed disclosure in its financial statement, so it is difficult to verify,” said Cedric Lai, a senior credit analyst at Moody’s Investors Service. Nigel Stevenson of GMT Research agreed it was unclear how Evergrande accounted for the WMPs. “Once the lid is lifted on its financials, it’s possible more horrors will be discovered,” he said. In a petition to various government bodies, a group of WMP investors in Guangdong accused Evergrande of inappropriately using money that should have gone to the issuers to fund its own projects, and not sufficiently disclosing the risks. They also complained that they were misled by the stature of its chairman, Hui Ka-yan, noting that he was seated prominently during a 2019 celebration of the 70th anniversary of the founding of the People’s Republic of China. “The investors trusted Evergrande and bought Evergrande’s WMPs out of our love for and faith in the Party and government,” they wrote. Tyler Durden Tue, 09/21/2021 - 11:10.....»»

Category: blogSource: zerohedgeSep 21st, 2021

The Zacks Rank Explained: How to Find Strong Buy Consumer Discretionary Stocks

Finding strong, market-beating stocks with a positive earnings outlook becomes easier with the Zacks Rank. Building a successful investment portfolio takes skill and hard work, no matter if you're a growth, value, income, or momentum-focused investor.But how do you find the right combination of stocks? Funding your retirement, your kids' college tuition, or your short- and long-term savings goals certainly requires significant returns.Enter the Zacks Rank.What is the Zacks Rank?A unique, proprietary stock-rating model, the Zacks Rank uses earnings estimate revisions, or changes to a company's earnings expectations, to help investors create a winning portfolio.There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.Each factor is given a raw score, which is recalculated every night and compiled into the Zacks Rank. Utilizing this data, stocks are put into five different groups: Strong Buy, Buy, Hold, Sell, and Strong Sell.The Power of Institutional InvestorsThe Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.Institutional investors are responsible for managing the trillions of dollars invested in mutual funds, hedge funds, and investment banks. Research has shown that these investors can and do move the market due to the large amount of money they deal with, and thus, the market tends to move in the same direction as them.In order to figure out the fair value of a company and its shares, these investors will build valuation models focused on earnings and earnings expectations. Because if you raise estimates for the bottom line, it creates a higher fair value for a company.Institutional investors then act on these changes in earnings estimates, typically buying stocks with rising estimates and selling those with falling estimates; an increase in earnings estimates can translate into higher stock prices and bigger gains for the investor.Because it can take a long time for an institutional investor to build a position -- sometimes weeks, if not months -- retail investors who get in at the first sign of upward revisions have a distinct advantage over these larger investors, and can benefit from the expected institutional buying that will follow.Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.How to Invest with the Zacks RankThe Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +25.41%.Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.Let's take a look at Crocs (CROX), which was added to the Zacks Rank #1 list on September 17, 2021.Founded in 1999 and based in Niwot, CO, Crocs, Inc. is one of the leading footwear brands with its focus on comfort and style. Famous for its iconic clog material, Crocs’ simple design and great comfort was an instant hit among consumers. The company offers a wide variety of footwear products including sandals, wedges, flips and slide that cater to people of all age.For fiscal 2021, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.05 to $6.89 per share. CROX boasts an average earnings surprise of 43.6%.Analysts are expecting earnings to grow 114% for the current fiscal year, with revenue forecasted to rise 63.6%.CROX has been moving higher over the past four weeks as well, up 9.3% compared to the S&P 500's loss of 0.3%.Bottom LineWith a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Crocs should be on investors' shortlist.If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.Discover Today's Top StocksOur private Zacks #1 Rank List, based on our quantitative Zacks Rank stock-rating system, has more than doubled the S&P 500 since 1988. Applying the Zacks Rank in your own trading can boost your investing returns on your very next trade. See Today's Zacks #1 Rank List >> Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>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 Crocs, Inc. (CROX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

5 Must-Buy Stocks on Rebound in U.S. Retail Sales in August

Shrugging off challenges, Foot Locker (FL), Macy's (M), Tapestry (TPR), Costco (COST) and Capri Holdings (CPRI) look well-poised to tap favorable consumer demand. Americans had their fill of shopping last month. The Commerce Department highlighted that U.S. retail and food services sales in August jumped 0.7% on a sequential basis to $618.7 billion, following a revised reading of 1.8% decline in July. Consumer spending activity, one of the pivotal factors driving the economy, was strong with sales rising across most of the categories during the month.Given the challenges related to supply chain and the Delta variant, the rise in August retail sales caught most analysts by surprise, who were expecting consumers to rein in spending. Evidently, the back-to-school shopping season and payments under the Child Tax Credit program to qualifying families supported the metric.Retail sales advanced despite continued sluggishness in sales at motor vehicle and parts dealers, thanks to global chip shortage that has severely hit the auto industry. We note that excluding motor vehicle and parts dealers, retail sales advanced 1.8% sequentially.August Retail Sales Tick UpThe Commerce Department’s report suggests that sales at furniture & home furnishing stores jumped 3.7%, while the same at building material & supplies dealers rose 0.9% on a sequential basis. Sales at miscellaneous store retailers and general merchandise stores grew 1.4% and 3.5%, respectively.Sales at health & personal care stores and clothing & clothing accessories outlets increased 0.2% and 0.1%, respectively. While sales at food & beverage stores climbed 1.8%, sales at food services & drinking places remained flat. Meanwhile, receipts at gasoline stations were up 0.2%. Impressively, non-store retailers witnessed a rise of 5.3% in sales.However, sales at motor vehicle & parts dealers declined 3.6%, while the same at electronics & appliance stores fell 3.1%. Again, at sporting goods, hobby, book & music stores, the metric decreased 2.7%.Indicator of Strong Holiday SalesSurge in retail sales is a positive indicator ahead of the holiday season, especially when the industry is currently grappling with supply chain woes, rising freight charges and labor shortages. Retailers need to address any logistical or inventory issues and roll out strategies to provide a seamless shopping experience, whether offline or online.To beat the COVID-19 blues, retailers are emphasizing on membership programs, upgradation of store technology and omni-channel capabilities, shopping via mobile app, and last mile delivery solutions. Undeniably, expedited delivery services like doorstep delivery, curbside pickup or buy online and pick up at store, and contactless payment gateway will continue to play a crucial role in maximizing share of customers’ wallet.Per Mastercard SpendingPulse, U.S. retail sales, excluding automotive and gas, are anticipated to increase 7.4% from a year earlier during the traditional holiday period that runs from Nov 1-Dec 24. With e-commerce still being one of the preferred modes for shopping, Mastercard SpendingPulse foresees online sales to rise by 7.6%.That said, we have highlighted five stocks from the Retail - Wholesale sector that look well positioned based on their sound fundamentals and earnings growth prospects. These stocks have either a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.Price Performance Year-to-Date Image Source: Zacks Investment Research5 Prominent PicksInvestors can count on Foot Locker, Inc. FL, a retailer of athletic footwear and apparel. The company has been witnessing strong demand for athleisure and fitness products. It plans to continue investing in boosting store fleet, including revamping and remodeling of the same. Markedly, it is on track with converting Footaction stores to other existing banner concepts. It has been bolstering omni-channel capabilities by adding new functionalities. The company is progressing well with the expansion of FLX membership program. At the end of the second quarter, FLX program members exceeded 25 million, globally. Impressively, the company has a trailing four-quarter earnings surprise of 73.1%, on average. The stock has a Zacks Rank #1 and a VGM Score of A. The Zacks Consensus Estimate for its current financial year sales and earnings suggests growth of 17.7% and 146.6%, respectively, from the year-ago period.Macy's, Inc. M, one of the nation’s premier omni-channel retailers, is worth betting on. In spite of a tough retail landscape, the company has managed to stay afloat, courtesy of its Polaris Strategy. The strategy includes rationalizing store base, revamping assortments and managing costs prudently. Markedly, customers have been responding well to the company’s expanded omni-channel offerings such as curbside, store pickup and same-day delivery. In this respect, its tie-up with DoorDash for expediting delivery service is encouraging. Macy's also collaborated with Sweden-based buy-now, pay-later group — Klarna — for offering online shoppers financial ease and payment flexibility. The company is constantly improving its mobile and website features to deliver enhanced shopping experience. Notably, this New York-based company has a trailing four-quarter earnings surprise of 269.8%, on average. The stock has a Zacks Rank #1 and a VGM Score of B. The Zacks Consensus Estimate for its current financial year sales and earnings suggests growth of 37.3% and 269.7%, respectively, from the year-ago period.Tapestry, Inc. TPR is another potential pick. The company has been benefiting from the successful execution of Acceleration Program. The program is aimed at transforming the company into a leaner and more responsive organization. It intends to build significant data and analytics capabilities with focus on enhancing digital and omni-channel capabilities, and operating with a clearly defined path and strategy for each of its brands namely Coach, Kate Spade and Stuart Weitzman. The stock has a Zacks Rank #1 and a VGM Score of B. This provider of luxury accessories and branded lifestyle products has a trailing four-quarter earnings surprise of 65.2%, on average. The Zacks Consensus Estimate for its current financial year sales and earnings indicates an improvement of 11.6% and 12.5%, respectively, from the year-ago period.You may invest in Costco Wholesale Corporation COST. The company’s growth strategies, better price management, decent membership trends and increasing penetration of the e-commerce business have been contributing to its upbeat performance. Cumulatively, these factors have been aiding the Issaquah, WA-based company in registering impressive sales numbers. Costco’s net sales increased 16.2% to $15.75 billion for the retail month of August — the four-week period ended Aug 29, 2021 — from $13.56 billion in the last year. This followed an improvement of 16.6%, 16.9% and 24.2% in July, June and May, respectively. Remarkably, the company has a trailing four-quarter earnings surprise of 7.7%, on average. The stock has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for its current financial year sales and earnings suggests growth of 17.6% and 20.5%, respectively, from the year-ago period.We also suggest betting on Capri Holdings Limited CPRI. The company has been reinforcing its position in the luxury fashion space, and looks to maximize the potentials of Versace, Jimmy Choo and Michael Kors brands through expanded products and categories. While exploring growth opportunities in apparel is crucial to the company, it is emphasizing on boosting its accessories business including leather goods and handbags. The company has been constantly deploying resources to expand product offerings, upgrade distribution infrastructure, create seamless omni-channel capabilities and deepen engagement with customers. The stock has a Zacks Rank #2 and a VGM Score of A. The company’s bottom line has outperformed the Zacks Consensus Estimate by a wide margin in the trailing four quarters. The Zacks Consensus Estimate for its current financial year sales and earnings suggests growth of 30.8% and 138.4%, respectively, from the year-ago period. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>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 Macys, Inc. (M): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report Foot Locker, Inc. (FL): Free Stock Analysis Report Tapestry, Inc. (TPR): Free Stock Analysis Report Capri Holdings Limited (CPRI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Bet on Dividend ETFs to Ride Out Market Uncertainties

Dividend aristocrats are likely to perform well and are attractive investment options for an impressive finish to 2021, especially at a time when the Delta variant is rapidly spreading. The month of September has been dull so far for the Wall Street. Considering the period being historically weak, all three major indices are negative for the present month. In fact, the Dow Jones Industrial Average witnessed three consecutive weeks of losses for the first time since September 2020.Investors keep a close watch on the minutes from the Federal Reserve’s two-day policy meeting that will begin Sep 21. It is being speculated that the rising inflation levels may build more pressure on the Fed to tighten its monetary policies. They are concerned about the Federal Reserve’s chances of tapering the fiscal stimulus support, which includes the $120 billion a month bond-buying program. The withdrawal of the stimulus package might slow down the U.S. economic recovery achieved so far from the pandemic-led slump.Several economic data releases are also weighing on investors’ minds. The U.S. economy added only 235,000 jobs in August 2021 (the lowest in seven months). The metric was far behind the forecast of 750,000 as the surge in COVID-19 infection prevented companies from hiring and workers from actively looking for a job. Consumer confidence in the United States slipped to a six-month low in August.Raymond James’ chief investment officer Larry Adam noted that “Factors to build a ‘wall of worry’ are present (i.e., China, supply chain issues, Fed policy, debt ceiling, infrastructure/tax bill), though markets are not too disturbed for now. Normal pullbacks and volatility are to be expected, and we would use these periods as opportunities,” per a CNBC article.President Joe Biden outlined a very effective plan to increase the vaccination rate and control the coronavirus outbreak. He made it mandatory for the federal employees to get the COVID-19 vaccination, per a CNBC article. The Biden government will also issue guidelines to the Labor Department for imposing vaccine mandates on the employers with more than 100 employees or run weekly tests.The latest retail sales data pleasantly surprised investors. The metric rose 0.7% sequentially in August 2021 against the market expectations of a 0.8% decline, per a CNBC article.The U.S. consumer sentiment marginally improved despite the growing concerns about the surging coronavirus cases and the rising inflationary levels. The University of Michigan’s preliminary consumer sentiment inched up to 71 in September from 70.3 last month. The metric, however, lagged the market’s forecast of 72 per a Bloomberg’s survey of economists.Why Invest in Dividend Aristocrat ETFs?Dividend aristocrats are blue-chip dividend-paying companies with a long track record of increasing dividend payments year over year. Moreover, dividend aristocrat funds provide investors with dividend growth opportunities in comparison to other products in the space but might not necessarily have the highest yields.‘Dividend aristocrats’ or ‘dividend growers’ are mostly deemed the smartest way to deal with the market turmoil. The inclination toward dividend investing is rising on account of easing monetary policy on the global front, and the market uncertainty triggered by the pandemic and deceleration in global growth. Demand for these funds is mostly driven by their characteristic of being the major source of consistent income for investors when returns from the equity markets are uncertain.These products also form a strong portfolio with a higher scope of capital appreciation against simple dividend-paying stocks or those with high yields. As a result, these products deliver a nice combination of annual dividend growth and capital-appreciation opportunity and are mostly beneficial to risk averse long-term investors.Against this backdrop, let’s take a look at some ETFs that investors can consider:Vanguard Dividend Appreciation ETF VIGThis is the largest and the most popular ETF in the dividend space with an AUM of $65.99 billion. The fund follows the S&P U.S. Dividend Growers Index. It charges 6 basis points (bps) in annual fees (read: Tax Hike Worries Drive Last Week's Inflows: 5 Hot ETFs).SPDR S&P Dividend ETF SDYThis fund seeks to provide investment results that before fees and expenses correspond generally to the total return performance of the S&P High Yield Dividend Aristocrats Index. The index screens companies that consistently increased their dividend for at least 20 consecutive years. The fund has an AUM of $19.40 billion. It charges 35 bps in fees per year (read: Dividend Aristocrat ETFs Investing Guide).iShares Select Dividend ETF DVYThe fund provides exposure to broad-cap U.S. companies with a consistent history of dividends and tracks the Dow Jones U.S. Select Dividend Index. The fund has an AUM of $18.31 billion. It charges 38 bps in fees per year (as stated in the prospectus).ProShares S&P 500 Dividend Aristocrats ETF NOBLThis fund seeks investment results before fees and expenses that track the performance of the S&P 500 Dividend Aristocrats Index. It is the only ETF focusing exclusively on the S&P 500 Dividend Aristocrats, which are high-quality companies that not just paid out dividends but also raised the same for at least 25 consecutive years with most doing so for 40 years or more. NOBL amassed $8.96 billion in its asset base. It has an expense ratio of 0.35%.iShares Core Dividend Growth ETF DGROThis fund provides exposure to companies boasting a history of sustained dividend growth by tracking the Morningstar US Dividend Growth Index. The fund has an AUM of $21.28 billion. It charges 8 bps in fees per year. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>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 SPDR S&P Dividend ETF (SDY): ETF Research Reports Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports iShares Select Dividend ETF (DVY): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Will ETFs Gain as US Consumer Sentiment Improves in September?

The U.S. consumer sentiment slightly improved in early-September amid rising concerns about surging coronavirus cases and inflationary levels. The U.S. consumer sentiment has marginally improved amid rising concerns about surging coronavirus cases and inflationary levels. The University of Michigan’s preliminary consumer sentiment inched up to 71 in September from 70.3 last month. The metric, however, lagged market’s forecast of 72, per a Bloomberg survey of economists.The measure of current economic conditions slipped to 77.1 in September from August’s 78.5. Meanwhile, a gauge of consumer expectations edged up to 67.1 in September from 65.1 in the previous month.Moving on, one-year inflation expectation increased to 4.7% (the highest since 2008) in September from 4.6% in August. Meanwhile, the survey's five-year inflation outlook remained steady at 2.9% in September.In this regard, Surveys of Consumers chief economist Richard Curtin, said that “The steep August falloff in consumer sentiment ended in early September, but the small gain still meant that consumers expected the least favorable economic prospects in more than a decade," (per a Reuters article).Notably, consumers seem to be disturbed about the rising prices of homes, vehicles and household durables. In fact, the buying attitude for vehicles and homes is contracting.Current U.S. Economic ScenarioInvestors have their eyes on the minutes from the Fed’s two-day policy meeting that will begin on Sep 21. Fears surrounding the rising inflationary levels have aggravated as the producer price index witnessed the largest annual surge since November 2010 (per a CNBC article). The metric rose 0.7% in August and 8.3% year over year. It is being speculated that rising inflation levels may build more pressure on the Fed to tighten monetary policies.Several economic data releases are also weighing on investors’ minds. The U.S. economy added only 235,000 jobs in August 2021 (the lowest in seven months). The metric lagged the forecast of 750,000 as a surge in COVID-19 infections kept companies from hiring and workers from actively looking for a job. Consumer confidence in the United States slipped to a six-month low in August.The latest update on U.S. industrial output looks disappointing as the damages from Hurricane Ida and the ongoing health crisis took a toll on the metric. The consistent crunch in raw material supplies and labor as a result of the pandemic has been a serious concern. Per the Fed’s recently-released data, total industrial production rose 0.4% in August versus an increase of 0.8% in July.There are still certain positive developments that can help stimulate a market rally. President Joe Biden has outlined a very effective plan to increase the vaccination rate and control the outbreak. He has made it mandatory for federal employees to get the COVID-19 vaccination, per a CNBC article. The Biden government will also issue guidelines to the Labor Department for imposing vaccine mandates for employers with more than 100 employees or run weekly tests.The latest retail sales data has pleasantly surprised investors. The metric rose 0.7% sequentially in August 2021, comparing favorably with market expectations of a 0.8% decline, per a CNBC article.The latest ISM Manufacturing Purchasing Managers' Index (PMI) data for the United States is painting a rosy picture for the industrial sector. The metric rose to 59.9 in August  from 59.5 in July and surpassed forecasts of 58.6, per a Reuters article. Any reading above 50% indicates expansion in U.S. manufacturing activities. Notably, the manufacturing sector, which makes up 11.9% of the U.S. economy, saw the reading expanding for the 15th consecutive month.ETFs That Might GainThe nominal improvement in consumer sentiment might support the consumer discretionary sector, which attracts a major portion of consumer spending amid rising inflation levels. Here we have highlighted the four most popular funds that target the broader consumer discretionary sector (see all Consumer Discretionary ETFs):The Consumer Discretionary Select Sector SPDR Fund XLYThis is the largest and most popular product in the consumer discretionary space, with AUM of $19.94 billion. It tracks the Consumer Discretionary Select Sector Index. The fund charges 12 basis points (bps) in fees per year and carries a Zacks ETF Rank #2 (Buy), with a Medium-risk outlook (read: ETF Areas to Gain From the Upcoming Holiday Shopping Season).Vanguard Consumer Discretionary ETF VCRThis fund currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index. VCR charges investors 10 bps in annual fees. The product has managed $6.70 billion in its asset base and carries a Zacks ETF Rank #1 (Strong Buy), with a Medium-risk outlook (read: Will ETFs Gain on Starbucks' Q3 Earnings Beat Amid Pandemic?).First Trust Consumer Discretionary AlphaDEX Fund FXDThis fund tracks the StrataQuant Consumer Discretionary Index, which employs the AlphaDEX stock-selection methodology to select stocks from the Russell 1000 Index. FXD has AUM of $1.99 billion. It charges 63 bps in annual fees and has a Zacks ETF Rank #3 (Hold), with a Medium-risk outlook.Fidelity MSCI Consumer Discretionary Index ETF FDISThis fund tracks the MSCI USA IMI Consumer Discretionary Index. The product has amassed $1.62 billion in its asset base. It charges 8 bps in annual fees from investors and carries a Zacks ETF Rank #2, with a Medium-risk outlook (read: ETFs to Rise on Full FDA Approval for Pfizer COVID-19 Vaccine). Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>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 Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports Fidelity MSCI Consumer Discretionary Index ETF (FDIS): ETF Research Reports First Trust Consumer Discretionary AlphaDEX ETF (FXD): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Market Inches Higher While Meme Mania Takes Off

Market Inches Higher While Meme Mania Takes Off SPECIAL ALERT: The June episode of the Zacks Ultimate Strategy Session will be available for viewing no later than Wednesday, June 9. Kevin Matras, Tracey Ryniec, Kevin Cook and Sheraz Mian will cover the investment landscape from several angles in this popular event. Don’t miss your chance to hear: ▪ Kevin Cook and Tracey Agree to Disagree on whether history will write that Elon Musk disrupted both auto and oil industries ▪ Kevin Matras answers your questions in Zacks Mailbag ▪ Sheraz and Kevin Cook choose one portfolio to give feedback for improvement ▪ And much more Remember, we need your input. Please submit your questions for Zacks Mailbag and Portfolio Makeover by Friday morning, June 4. Email now to mailbag@zacks.com. Then log on to Zacks.com and bookmark this page. We had another slow session on Wednesday as the market sits directionless ahead of some big economic data set for the next couple of days. However, the major indices managed to stay on the positive side this time. The S&P rose by 0.14% to 4208.12, while the NASDAQ advanced by the same percentage (or nearly 20 points) to 13,756.33. Both of these indices started the week slightly lower yesterday. Meanwhile, the Dow climbed a modest 0.07% (or about 25 points) to 34,600.38. That makes five straight days of gains for the index, though it has only advanced about 0.8% in that time amid all the sluggishness. The slow trading makes the ‘meme mania’ stick out even more, though a 95% surge would probably attract a lot of attention in any environment. That’s how much AMC Entertainment (AMC) soared today, as retail investors have made this movie theater company their new project. And AMC is fine with all the craziness. The company just launched the AMC Investor Connect initiative to stay in contact with its “extraordinary base of enthusiastic and passionate individual shareholders”. Meanwhile, it is also raising capital to make improvements for the future. For example, it recently sold more than $230 million worth of shares to a hedge fund… which then promptly sold it for a nice profit. Investors are anxiously awaiting the monthly jobs report, which is just two days away now due to the short week. Expectations are for somewhere north of 650K, but we all know how far off expectations were last month when the result missed by more than 700K. There’s plenty of data coming tomorrow too, including the ADP employment report. Last month, this result came to 742K for April, which marked a nice improvement over the previous month’s 565K though missed expectations of 800K. And as usual, we’ll be getting the weekly jobless claims number. The ISM services is also scheduled for Thursday. It came to 62.7 for April, which was below the previous month though well within expansion territory over 50. Today's Portfolio Highlights: Stocks Under $10: The transportation space is “on fire” of late, so Brian added a name from this industry with “amazing” earnings estimate revisions and a great valuation. Diana Shipping (DSX) specializes in transporting dry bulk cargoes along worldwide shipping routes, including iron ore, coal, grain and other materials. The editor thinks the turnaround has begun for DSX, which just snapped three quarters of earnings misses with a 50% positive surprise in its most recent release. Earnings estimates have been soaring in recent weeks with this year moving to a profit of 34 cents from a loss of 5 cents over 60 days. Next year’s improvement is even more impressive by soaring to $1.32 from 32 cents in that time. Brian likes DSX’s solid fundamentals and believes it will move higher along with other transportation names as the economy continues to open up. Read the full write-up for more on this move.   Surprise Trader: Its now been 15 straight quarters of meeting or beating the Zacks Consensus Estimate for Signet Jewelers (SIG)… and Dave expects that trend to continue when it reports again before the bell on Thursday, June 10. This Zacks Rank #2 (Buy) jewelry retailer beat by 15% last time and has a positive Earnings ESP of 2.84% for the quarter coming next week. The editor added SIG on Wednesday with a 12.5% allocation, while also getting out of Capri Holdings (CPRI) with a slight gain. Read the full write-up for more. In other news, Dillards (DDS) continues to pay off for the service as the department store staple rose 18.1% today, which was the best performance among all ZU names. The company is also the biggest winner over the past 30 days with a gain of more than 54%. Counterstrike: "While the overall market could have put you to sleep, some “stonks” or “meme stocks” were back. AMC (AMC) led the way with an absurd move higher that had the stock up over 100%. BBBY, GME, KOSS, RKT and BB also had big moves higher. These stocks are fueled by a mania, not fundamental or technical reasons. "The AMC move stemmed from some neat moves by the company that are bringing shareholders together and even offering free popcorn at movies to those that hold the stock. "These gimmicks don’t add any real value, but can drive this momentum. And if the momo continues and the company can do more stock offerings to raise money, it will put them in great shape to thrive after the pandemic. "After they have cash, they can pay debt, buy distressed theaters and actually grow!" -- Jeremy Mullin Until Tomorrow, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

S&P, Dow Snap Five-Day Skid Ahead of CPI Report

S&P, Dow Snap Five-Day Skid Ahead of CPI Report The S&P and Dow closed in the green on Monday for the first time in six sessions, snapping a losing streak that began after the disappointing jobs report on September 3rd and persisted throughout last week (which was only four days long due to Labor Day). Meanwhile, the market is now preparing for a busy week of potentially market-moving data, which begins tomorrow with the most important inflation indicator, the CPI.    The Dow kicked off this week by climbing 0.76% (or nearly 262 points) to 34,869.63, while the S&P rose 0.23% to 4468.73. These gains snap five-day losing streaks for each index. However, the NASDAQ now has a four-day skid after sliding 0.07% (or less than 10 points) to 15,105.58. Apple (AAPL) gained 0.39% in the session after plunging 3.3% on Friday when a federal judge ruled against the company in regard to its App Store practices. Apple has one of its big and flashy events tomorrow when we’ll get a look at the iPhone 13 and other hardware. Stocks are coming back from a rough, though mercifully short, week that saw the Dow plunge over 2% while the other major indices slipped more than 1.5% each. “The garbage streak put in by the Dow Jones Industrial average is finally over,” said Dave Bartosiak in Surprise Trader (which added a stock on Tuesday despite entering the ‘quiet period’. See more below). “After a frustrating week of losing day in and day out, the market needed a bounce back. It almost didn’t happen as the over the weekend move was faded early. That negativity subsided late in the day and stocks got back on the good foot.” The big news tomorrow will be the consumer price index, which could move the market since inflation is a major concern of investors these days despite the Fed calling it ‘transitory’. The expectation is for consumer prices to have risen 5.3% year over year and 0.4% month on month. Those would still be very high, but a blip below the prior print for July. The PPI report from Friday showed that wholesale costs for businesses were up 8.3% through August and 0.7% from the previous month. And on Thursday we’ll be getting another important print on retail sales. All of this data – jobs, inflation, retail – promises to make next week’s Fed meeting that much more important as Chair Jerome Powell & friends try to decide when to start shifting the pandemic-era monetary policy. Today's Portfolio Highlights: Stocks Under $10: The portfolio is back to being fully invested at 15 names with today’s addition of Express (EXPR), a specialty clothing retailer focused on a younger audience with more than 500 retail and factory outlet stores in the country. The earnings history is mixed with two beats, a meet and a miss over the past four quarters; but the most recent report included a healthy 106% positive surprise. Rising earnings estimates pushed EXPR to an enviable Zacks Rank #2 (Buy) status. Growth expectations for this year are at 57% on the topline, but Brian is most excited for the company’s return to profitability next year. That turn should drive more interest to the name. Read the complete commentary for more info on today’s addition of EXPR. In other news, this portfolio had a top performer today as Diana Shipping (DSX) rose 6.9%. Surprise Trader: How do you build a better portfolio? Well, you can gain exposure to solid spaces like Building Products – Home Builders, which is in the top 19% of the Zacks Industry Rank. That’s what Dave did on Monday through the addition of KB Home (KBH), which has beaten the Zacks Consensus Estimate in 15 out of the last 16 quarters. The company has a positive Earnings ESP of 1.12% for the quarter coming after the bell on Wednesday, September 22, so the editor is expecting that impressive earnings history to continue. Analysts are looking for $1.60, which would represent year-over-year growth of 92%. Dave added KBH today with a 12.5% allocation, while also getting out of ABM Industries (ABM) with a small loss. Learn more about today’s action in the full write-up. Commodity Innovators: We knew that ProShares Ultra Bloomberg Natural Gas (BOIL) was a short-term investment when Jeremy added it back on August 25. But the more than 65% move in the name since then might have been a bit of surprise for the editor. Nevertheless, BOIL hit his target “and then some”, so the portfolio sold it on Monday and cashed in that double-digit profit in less than three weeks. Jeremy says it could run higher, but he’s a bit concerned about overnight headlines that could bring it down quickly. The big concern is that governments might be forced to step in and stop the surge in natural gas, so let’s not be greedy. Furthermore, the service had a top 5 winner today as EnLink Midstream (ENLC) rose 6%. Black Box Trader: The portfolio replaced four names in this week's adjustment. The stocks that were sold included: • CBRE Group (CBRE, +2.4%) • Cleveland-Cliffs (CLF) • Realogy (RLGY) • Sonos (SONO) The new buys that filled these spots were: • Levi Strauss (LEVI) • LKQ Corp. (LKQ) • PVH Corp. (PVH) • Textron (TXT) Read the Black Box Trader’s Guide to learn more about this computer-driven service. Meanwhile, Range Resources (RRC) was a top performer on Monday by climbing 6.6%. All the Best, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Retail Investors Bet, And Lost, Billions On Ghost Suburbs That Were Never Built

Calgary-based Walton Group had delivered 12% annual returns in the past, so when the company made its pitch to retail investors, planning to build subur.....»»

Category: blogSource: zerohedgeJun 15th, 2019

Paul Brandus: Follow the money — the mark-to-market grade for the Trump administration isn’t great

Trump has disrupted supply chains, blown up market relationships that took years to build and added uncertainty that makes executives cautious about capital spending, and foreign investors think twice about investing in America......»»

Category: topSource: marketwatchDec 10th, 2018

ETFs to Bet On as Fed Turns Hawkish, Signals Tapering

The Federal Reserve Chair Jerome Powell kept the interest rates near zero at 0-0.25% but signaled bond-buying tapering ahead followed by interest rate hikes as early as next year. In the FOMC meeting that concluded on Sep 22, the Federal Reserve Chair Jerome Powell kept the interest rates near zero at 0-0.25% but signaled bond-buying tapering ahead followed by interest rate hikes as early as next year.The central bank is expected to begin scaling back the monthly bond purchases as soon as November and complete the process by mid-2022. This is because it expects the Delta variant of the coronavirus, which has dented economic activity in the recent months, to have a short-lived effect on the recovery. Per the officials, the economy will likely make “substantial further progress” by the end of the year, a threshold needed for the central bank to begin slowing the pace of asset purchases (read: Buy the Dip With These Top-Ranked ETFs).Fed Chair Jerome Powell reiterated that he believes the U.S. economy has already surpassed the central bank's goals for inflation, and said a "reasonably good" September jobs report would indicate that the Fed's employment goals to begin tapering had been satisfied as well. Notably, the central bank has been buying $120 billion per month of Treasuries and mortgage-backed securities since the start of the COVID-19 crisis.The policy statement also revealed that nine of 18 Fed policymakers foresee a liftoff in interest rates next year, compared to seven policymakers in June. The median dot also projects three to four total rate hikes by the end of 2023. Through the end of 2024, the median FOMC member sees six to seven total rate hikes.Given this, investors should continue to focus on areas/sectors that will benefit the most from the Fed’s tightening policy. Here, we have detailed four of these and their ETFs below:FinancialsA rising interest rate scenario is highly profitable for the financial sector. This is because the steepening yield curve would bolster profits for banks, insurance companies, and discount brokerage firms. A broad way to play this trend is with Financial Select Sector SPDR Fund XLF, which has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.This is the most popular financial ETF in the space with AUM of $40 billion and an average daily volume of about 43 million shares. The fund follows the Financial Select Sector Index, holding 65 stocks in its basket. It is heavily concentrated on the top two firms, making up for double-digits share each while other firms hold no more than 7.2% share. In terms of industrial exposure, banks take the top spot at 37.5% while capital markets, insurance, and diversified financial services make up for double-digit exposure each. The fund charges 12 bps in annual fees and is up 27.5% in the year-to-date timeframe (read: 401(k) Balances at All-Time Highs: 6 ETFs to Buy).Consumer DiscretionaryConsumer discretionary stocks also seem good bets. This is because a tight policy is seemingly the result of a pickup in economic growth supported by solid job growth, wage growth and increased lending activity that result in higher spending power. One exciting pick in this space can be Vanguard Consumer Discretionary ETF VCR, which has a Zacks ETF Rank #1 with a Medium risk outlook (read: ETF Areas to Gain From the Upcoming Holiday Shopping Season).This fund follows the MSCI U.S. Investable Market Consumer Discretionary 25/50 Index and holds 296 stocks in its basket. It has heavy concentration on the top firm – Amazon AMZN – at 23.5% share while the other firms hold no more than 10% of the assets. The product has managed $6.7 billion in its asset base and charges 10 bps in annual fees. In terms of industrial exposure, Internet & direct marketing, retail takes the largest share at 27.6% while automobile manufacturers, restaurants, and home improvement retail round of the next three spots. The ETF trades in average daily volume of 59,000 shares and has gained 15.8% in the same timeframe.TechnologyIn a tight policy era, technology seems one of the safest sectors as most of the companies are sitting on a huge cash pile. The cash reserves will ensure that these companies are not plagued by any financial trouble even in a rising interest rate environment. While there are several ETFs to bet on, First Trust NASDAQ-100-Technology Sector Index Fund QTEC could be an intriguing option. It has a Zacks ETF Rank #1 with a High risk outlook.    This ETF tracks the NASDAQ-100 Technology Sector Index, holding 41 stocks in its basket with almost equal allocation. From an industry look, software and semiconductors dominate the list with 34.9% and 32.7% share, respectively, while production technology equipment and consumer digital services make up for the next two spots. QTEC is a large cap centric fund with AUM of $3.9 billion and average daily volume of around 66,000 shares. It charges 57 bps in annual fees and gained 19.6% so far this year.DollarTightening policy and higher rates would attract more capital to the country from foreign investors, thereby boosting the U.S. dollar against the basket of other currencies. Invesco DB US Dollar Index Bullish Fund UUP offers exposure to a dollar against a basket of six world currencies. This is done by tracking the Deutsche Bank Long USD Currency Portfolio Index - Excess Return plus the interest income from the fund’s holdings of U.S. Treasury securities. In terms of holdings, UUP allocates nearly 57.6% in euro and 25.5% collectively in the Japanese yen and British pound. The fund has so far managed an asset base of $487.9 million and sees an average daily volume of around 697,000 shares. It charges 76 bps in annual fees and has gained 3.5% so far this year. The fund has a Zacks ETF Rank #2 with a Medium risk outlook (read: U.S. Dollar to Gain Ahead? ETFs to Gain/Lose).  More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>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 Amazon.com, Inc. (AMZN): Free Stock Analysis Report Financial Select Sector SPDR ETF (XLF): ETF Research Reports Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports First Trust NASDAQ100Technology Sector ETF (QTEC): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks18 min. ago

Urban Outfitters (URBN) Down 11.6% Since Last Earnings Report: Can It Rebound?

Urban Outfitters (URBN) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. A month has gone by since the last earnings report for Urban Outfitters (URBN). Shares have lost about 11.6% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Urban Outfitters due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Urban Outfitters Q2 Earnings & Sales Beat, Rise Y/YUrban Outfitters reported sturdy second-quarter fiscal 2022 results wherein the top and the bottom line outshone the Zacks Consensus Estimate and also improved on a year-over-year basis. We note that sales across the company’s all brands and segments grew year over year.Deeper InsightThe company delivered earnings per share of $1.28 that beat the Zacks Consensus Estimate of 79 cents. The bottom line improved significantly from 35 cents recorded in the year-ago quarter and 61 cents earned in the quarter ended Jul 31, 2019.In the reported quarter, net sales of $1,157.7 million soared 44.1% year over year and surpassed the Zacks Consensus Estimate of $1,080 million. Also, the metric grew 20.3% from the figure reported in the quarter ended Jul 31, 2019. Brandwise, net sales were up 36.3% year over year to $441.6 million at Urban Outfitters, 52.7% to $450.6 million at Anthropologie Group and 40.3% to $249.7 million at Free People. Menus & Venues’ net sales amounted to $5.9 million, significantly up from $1.6 million recorded in the prior-year quarter. Nuuly, the subscription-based rental service for women’s clothes contributed $9.9 million to net sales, reflecting an increase 110.6% from the year-ago period’s level.Segmentwise, net sales at the company’s Retail Segment surged 43.8% year over year to $1,089 million while the same at the Wholesale Segment climbed 43.1% to $58.8 million. Comparable Retail segment net sales rose 40% year over year and 22% from the same-quarter fiscal 2020 level on account of double-digit sales growth across the digital channel. Growth was partly offset by low single-digit negative retail store sales on lower store traffic. Robust consumer demand in majority of the product categories, mainly apparel, as well as solid execution drove double-digit retail segment comps across all brands. When compared to the quarter ended Jul 31, 2019, comparable Retail segment net sales jumped 53% at the Free People Group, 14% at the Anthropologie Group and 20% at Urban Outfitters.An Insight Into MarginsIn the quarter under review, gross profit soared 82.9% year over year to $435.3 million from the year-ago quarter’s level. Also, gross margin expanded 800 basis points (bps) year over year and 478 bps from the second-quarter fiscal 2020 tally to 37.6%. Record low merchandise markdown rates in the Retail segment coupled with leveraged store occupancy expenses on higher penetration of the digital channel in Retail segment net sales aided the gross margin.Selling, general and administrative (SG&A) expenses shot up 59.8% year over year and 13.3% from the second-quarter fiscal 2020 level to $269.4 million. As a percentage of net sales, the metric increased 230 bps year over year while the same decreased 140 bps from the fiscal 2020 figure to 23.3%.The company recorded an operating income of $165.9 million, significantly up from $69.4 million recorded in the prior-year quarter and $78.1 million reported in second-quarter fiscal 2019. As a rate of sales, operating margin expanded 570 bps year over year and 620 bps from the quarter ended Jul 31, 2019 to 14.3%.Other Financial DetailsUrban Outfitters ended the quarter with cash and cash equivalents of $464.8 million and total shareholders’ equity of $1,669.4 million. As of Jul 31, 2021, total inventory increased 37.3% year over year to $483.1 million.This Philadelphia, PA-based company generated net cash of $195.2 million from operating activities during the first half of fiscal 2022. For fiscal 2022, management projects capital expenditures of nearly $285 million, mainly related to expanded distribution and fulfillment capacity to boost digital growth and store launches.Urban Outfitters did not buy back shares in the first six months of fiscal 2022. It repurchased and subsequently retired 0.5 million shares for roughly $7 million in fiscal 2021. As of Jul 31, 2021, the company had 25.9 million shares remaining under its share repurchase programs.OutlookManagement highlighted that comp sales in August at the Free People and Anthropologie brands are almost in line with the reported quarter’s levels while Urban Outfitters’ brand comps slowed down in mid-July. The company expects retail segment comps for the Urban Outfitters’ brand in the fiscal third quarter to moderate by high single-digits. August to date, the overall Urban Outfitters retail segment comp sales are mid-teens positive.Urban Outfitters projects the fiscal third quarter to continue reflecting a healthy sales improvement in comparison to fiscal 2020. It believes that retail segment comp sales will grow in mid teens while the wholesale segment sales are likely to decline at a rate similar to that of the fiscal second quarter. These will result in the overall company sales in low double-digits.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 19.89% due to these changes.VGM ScoresAt this time, Urban Outfitters has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Urban Outfitters has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>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 Urban Outfitters, Inc. (URBN): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks18 min. ago

Should You Invest in the Invesco DWA Healthcare Momentum ETF (PTH)?

Sector ETF report for PTH If you're interested in broad exposure to the Healthcare - Broad segment of the equity market, look no further than the Invesco DWA Healthcare Momentum ETF (PTH), a passively managed exchange traded fund launched on 10/12/2006.An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 16, placing it in bottom 0%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $528.88 million, making it one of the average sized ETFs attempting to match the performance of the Healthcare - Broad segment of the equity market. PTH seeks to match the performance of the DWA Healthcare Technical Leaders Index before fees and expenses.The DWA Healthcare Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges.CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.Looking at individual holdings, Moderna Inc (MRNA) accounts for about 5.49% of total assets, followed by Idexx Laboratories Inc (IDXX) and Horizon Therapeutics Plc (HZNP).The top 10 holdings account for about 36.69% of total assets under management.Performance and RiskSo far this year, PTH has gained about 7.67%, and it's up approximately 26.94% in the last one year (as of 09/23/2021). During this past 52-week period, the fund has traded between $128.32 and $188.39.The ETF has a beta of 0.95 and standard deviation of 32.75% for the trailing three-year period, making it a high risk choice in the space. With about 56 holdings, it effectively diversifies company-specific risk.AlternativesInvesco DWA Healthcare Momentum ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, PTH is a sufficient option for those seeking exposure to the Health Care ETFs area of the market. Investors might also want to consider some other ETF options in the space.Vanguard Health Care ETF (VHT) tracks MSCI US Investable Market Health Care 25/50 Index and the Health Care Select Sector SPDR ETF (XLV) tracks Health Care Select Sector Index. Vanguard Health Care ETF has $16.55 billion in assets, Health Care Select Sector SPDR ETF has $32.55 billion. VHT has an expense ratio of 0.10% and XLV charges 0.12%.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>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 Invesco DWA Healthcare Momentum ETF (PTH): ETF Research Reports Moderna, Inc. (MRNA): Free Stock Analysis Report IDEXX Laboratories, Inc. (IDXX): Free Stock Analysis Report Horizon Therapeutics Public Limited Company (HZNP): Free Stock Analysis Report Health Care Select Sector SPDR ETF (XLV): ETF Research Reports Vanguard Health Care ETF (VHT): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 33 min. ago

3 Hot Cannabis Stocks That Should be on Your Watchlist

Cannabis stocks are set to be the rage on Wall Street in hopes of legalization in the US. Thus, keep an eye on stocks like Tilray (TLRY), Innovative Industrial Properties (IIPR) & GrowGeneration (GRWG). In recent times, most cannabis stocks slipped, with major manufacturers like Jushi Holdings and Curaleaf Holdings tanking 23.8% and 9.9%, respectively, in the past three-month period. Meanwhile, the broader S&P 500 has risen more than 5%.However, it’s also true that the cannabis industry witnessed strong momentum prior to mid-February 2021. But now since cannabis companies haven’t been able to report earnings results as per expectations, their share prices took a beating and several marijuana investors are going through a rough patch at the moment. This has left many such investors speculating the fate of the cannabis industry in the near future.With a degree of certainty, cannabis stocks won’t stay down for long.  In fact, historically, whenever cannabis stocks have lost drastically, it didn’t take much time to bounce back to stupendous heights. Thus, this trend implies that now is the time to keep an eye on cannabis stocks that are well-poised to gain momentum in the near term. Furthermore, such stocks are surely trading at a discounted price right now, which undoubtedly should excite investors.And why won’t cannabis stocks gain momentum? In the United States, a series of regulatory updates proved quite helpful for the cannabis industry. Notable among these is the cannabis legalization draft released in summer by Senate Majority Leader Chuck Schumer that aims to get rid of the federal government’s ban on marijuana. The cannabis legalization bill, no doubt, has to go through a lot many bottlenecks but the sheer speculation that marijuana is going to be legalized will help cannabis stocks chug along in the near term and the pot industry should unquestionably fare well through this year.The legalization of cannabis, by the way, is a long process as there are several issues that need to be addressed by marijuana companies as well as trade associations. However, since the majority of the population in the United States is in favor of legalizing marijuana in the form of medical or recreational usage, it is just a matter of time that there will be momentous reform in the cannabis industry. Some analysts, in the meantime, argue that simply passing a banking reform for the cannabis industry would have helped cannabis companies. But whatever may be the opinion, Congress in all likelihood will legalize the cannabis industry, and that’s certainly good news for cannabis stocks.Let us also admit that the improvement in coronavirus-led expansion in delivery mechanisms and more curbside pickups will boost sales and revenues of cannabis companies in the days to come. Additionally, cannabis companies are entering a consolidation phase and are looking for product innovation, all of which bodes well for the marijuana industry.Thus, as mentioned above, here’re three promising cannabis stocks that are worth a watch right now.Tilray, Inc. TLRY is a pharmaceutical company. It develops cannabis-based medicines, drugs, drops and oil products. Tilray is a Canadian company, which intends to operate in the United States once the federal government legalizes marijuana. The company currently has a Zacks Rank #3 (Hold). The company’s expected earnings growth rate for the current and next year is 71.7% and 92.3%, respectively. Shares of Tilray have plunged 36.4% over the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Innovative Industrial Properties, Inc. IIPR is a real estate investment trust. It is focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for medical-use cannabis facilities. In this process, Innovative Industrial Properties is reaping rental income. The company currently has a Zacks Rank #3. The company’s expected earnings growth rate for the current and next year is 34.2% and 35%, respectively. Shares of Innovative Industrial Properties have dropped 0.1% in the past one-month period.GrowGeneration Corp. GRWG owns and operates specialty retail hydroponic and organic gardening stores in the United States. It actually doesn’t sell cannabis directly to consumers. Instead, the company sells hydroponic cultivation equipment to various marijuana companies. The company currently has a Zacks Rank #3. The company’s expected earnings growth rate for the current and next year is 318.2% and 39.1%, respectively. Shares of GrowGeneration have tanked 40.5% over the past three-month period. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>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 Innovative Industrial Properties, Inc. (IIPR): Free Stock Analysis Report GrowGeneration Corp. (GRWG): Get Free Report Tilray, Inc. (TLRY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 33 min. ago