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Category: blogSource: theflyonthewallMay 25th, 2021

How Has HEI Performed 30 Days Post Earnings

Heico Corporation (HEI) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. It has been about a month since the last earnings report for Heico Corporation (HEI). Shares were flat in that time frame, outperforming the S&P 500.Will the recent trend continue leading up to its next earnings release, or is Heico Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Heico Q3 Earnings Beat Estimates, Sales Improve Y/YThe company’s third-quarter fiscal 2021 earnings per share (EPS) of 56 cents surpassed the Zacks Consensus Estimate of 54 cents by 3.7%. The bottom line improved 40% from the prior-year period’s figure of 40 cents.The year-over-year improvement can be attributed to sales and operating income growth witnessed in the fiscal third quarter.Total SalesThe company’s net sales increased 22.1% year over year to $471.71 million in the reported quarter, primarily driven by improvement in commercial aerospace market conditions.However, total sales missed the Zacks Consensus Estimate of $476 million by 1.9%.Operational UpdateHEICO’s total costs and expenses increased 16.6% year over year to $370.9 million in the quarter under review. The increase was due to higher cost of sales, and selling, general and administrative expenses.Segmental PerformanceFlight Support Group:Net sales surged 33% year over year to $237.1 million, driven by enhanced demand for its commercial aerospace products across all product lines.Operating income soared 250% year over year to $42.1 million, on account of net sales growth and an improved gross profit margin. Further, its operating margin expanded a massive 1100 basis points (bps) to 17.7% compared with 6.7% in the prior-year period.Electronic Technologies Group: The segment’s net sales climbed 14% to $239.5 million in the quarter under review, driven by organic growth, and benefits from fiscal 2020 and 2021 acquisitions.The segment reported an operating income surge of 11% year over year to $69 million, primarily on account of quarterly net sales growth. However, the company’s operating margin contracted 60 bps to 28.8%.Financial DetailsAs of Jul 31, 2021, HEICO’s cash and cash equivalents totaled $269.8 million compared with $406.9 million as of Oct 31, 2020.Cash flow provided by operating activities was $124 million at the end of third-quarter fiscal 2021, reflecting a solid 33% growth over prior-year period.HEICO reported long-term debt (net of current maturities) of $385.4 million as of Jul 31, 2021, down from $738.8million as of Oct 31, 2020.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.VGM ScoresAt this time, Heico Corporation has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Heico Corporation 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 Heico Corporation (HEI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 6 min. ago

Intuit (INTU) Up 1.3% Since Last Earnings Report: Can It Continue?

Intuit (INTU) 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 Intuit (INTU). Shares have added about 1.3% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Intuit due for a pullback? 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 drivers. Intuit Crushes Q4 Earnings & Revenue Estimates, Guides StrongIntuit ended fiscal 2021 with outstanding fourth-quarter results, wherein revenues and earnings surpassed the respective Zacks Consensus Estimate, as well as marked significant year-over-year improvement.The company reported fiscal fourth-quarter non-GAAP earnings of $1.97 per share, which beat the Zacks Consensus Estimate of $1.59. Moreover, the bottom-line figure increased 9% from the year-ago quarter’s earnings of $1.81 per share.Revenues of $2.56 billion surpassed the consensus mark of $2.32 billion and climbed 41% year on year as well.The year-over-year surges in the top and bottom lines reflect strong growth in the do-it-yourself category as well as solid revenue contribution from the newly-acquired Credit Karma business. Credit Karma contributed $405 million to the company’s quarterly total revenues.Solid contribution from TurboTax Live was a positive. Moreover, solid customer growth was a top-line driver.Quarter in DetailSegment wise, Small Business and Self-Employed Group revenues grew 19% year over year to $1.25 billion. This rise was primarily driven by solid growth in customers for QuickBooks Online and a favorable mix-shift. In addition, approximately $4 million of non-recurring revenues from the Paycheck Protection Program boosted this segment.Total Online Ecosystem revenues climbed 30% year on year to $770 million. QuickBooks Online Accounting revenues were up 28% year over year. Online Services revenues, which include payroll, payments, time tracking and capital, grew 35% year over year.Within QuickBooks Online payroll, a mix-shift to Intuit’s full-service offering was a tailwind. Also, within QuickBooks Online payments, continued uptick in the customer base drove revenues.Total international online revenues increased 47%, year over year, on a constant-currency basis.Total Desktop ecosystem revenues grew 5%, year on year, during the reported quarter.In the fiscal fourth quarter, revenues from Consumer Group jumped 20% year on year to $852 million.Intuit’s non-GAAP operating income increased 16% to $715million.Fiscal 2021 HighlightsThe company reported fiscal 2021 non-GAAP earnings of $9.74 per share, which beat the Zacks Consensus Estimate of $9.35. Moreover, the bottom-line figure increased 24% from the year-ago quarter’s earnings of $7.86 per share. Revenues of $9.63 billion surpassed the consensus mark of $9.39 billion and climbed 25% year on year as well.Balance Sheet and Cash FlowAs of Jul 31, 2021, Intuit’s cash and investments were $3.87 billion compared with $4.1 billion as of Apr 30.The company repurchased stocks worth $467 million during the reported quarter and $1 billion in fiscal 2021.The company’s board of directors has approved a new $2-billion share-repurchase authorization, increasing the total authorization limit to $3.3 billion.Additionally, the company announced that its board has approved a quarterly cash dividend of 68 cents per share to be payable on Oct 18, 2021. The newly-approved cash dividend represents a year-over-year increase of 15%.First-Quarter and Fiscal 2022 OutlookFor the fiscal first quarter, Intuit expects revenues between 36% and 38% on a year-over-year basis. Adjusted earnings for the quarter are estimated in the range of 94-99 cents per share.For fiscal 2022, the company projects revenues in the band of $11.05-$11.20 billion, calling for year-over-year growth of 15-16%. Adjusted earnings are projected between $11.05 and $11.25 per share, indicating a year-over-year increase of 13-16%.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -56.49% due to these changes.VGM ScoresAt this time, Intuit has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Intuit has a Zacks Rank #5 (Strong Sell). We expect a below average 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 Intuit Inc. (INTU): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks1 hr. 6 min. ago

Nordstrom (JWN) Down 8.5% Since Last Earnings Report: Can It Rebound?

Nordstrom (JWN) 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 Nordstrom (JWN). Shares have lost about 8.5% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Nordstrom due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Nordstrom Tops Earnings & Revenue Q2 Estimates, Ups ViewNordstrom reported impressive second-quarter fiscal 2021 results, wherein the top and bottom lines rose on a year-over-year basis. Results gained from solid demand, better inventory, stringent cost-cutting actions as well as improved sales trends in Nordstrom and Nordstrom Rack across regions and categories. Enhanced customer engagement, improved merchandise assortment and robust performance in the anniversary sale also contributed to quarterly growth. The company witnessed strength in shoes, apparel and accessories on a sequential basis with active, home and designer categories getting back to pre-pandemic level. Management lifted 2021 view.It remains focused on closer-to-you strategy which aims to link stores and services to expedite deliveries, expanding online offerings and adding cheaper merchandise at its Rack off-price stores, to improve customers shopping experience.Nordstrom posted adjusted earnings of 49 cents per share, which came ahead of the year-ago quarter’s loss of $1.62. The figure surpassed the Zacks Consensus Estimate of 26 cents.Total revenues surged 96.4% year over year to $3,657 million and beat the Zacks Consensus Estimate of $3,382 million. The company’s revenues represented a 700-bps sequential improvement from the first quarter of fiscal 2021, marking the fourth straight quarter of sequential top-line growth. However, net sales skyrocketed 101% year over year to $3,565 million while the metric declined 6% from second-quarter fiscal 2019. Credit Card net revenues grew 9.5% to $92 million.The company witnessed sturdy sales in the Anniversary event, with 1% growth from second-quarter fiscal 2019. The uptick can be attributable to improved traffic and sales, both in stores and online, stemming from positive customer response, trendy products and expanded capabilities, including convenient pick-up options at Nordstrom and Nordstrom Rack stores. The final week of the event fell in third-quarter fiscal 2021, which adversely impacted the top line by roughly 200 basis points (bps) compared with second-quarter fiscal 2019.In second-quarter fiscal 2021, net sales for the Nordstrom brand skyrocketed 127% year over year to $2,417 million. Sales for the Nordstrom Rack brand rose 61% year over year to $1,148 million. Nordstrom’s sales improved 800 bps sequentially, whereas Nordstrom Rack sales rose 500 bps. However, sales for Nordstrom and Nordstrom Rack brands reflected declines of 5% and 8% from second-quarter fiscal 2019, respectively.Momentum in the digital business continued to aid the top line. Digital sales advanced 30% year over year and 24% from the second quarter of fiscal 2019. The digital business witnessed gains from improved traffic across both Nordstrom and Nordstrom Rack. In the fiscal second quarter, digital sales represented 40% of net sales compared with 61% in the year-ago quarter. The company also completed the integration of Rack.com onto Nordstrom.com, thus, offering a better customer experience.  Nordstrom's gross profit margin expanded 1,370 bps year over year to 35% in the reported quarter. This substantial growth resulted from lower markdowns and leverage from higher net sales. However, gross margin remained flat as compared with second-quarter fiscal 2019 as lower markdowns somewhat offset drab sales. Ending inventory grew 13% from second-quarter fiscal 2019, owing to the timing shift of the anniversary sale and efforts to improve the supply chain and advanced sales trends.Selling, general and administrative (“SG&A”) expenses, as a percentage of sales, declined 1,350 bps year over year to 33% in the fiscal second quarter. The SG&A decline was mainly driven by leverage on higher sales and the continued benefit of permanently reducing overhead costs by 15%. SG&A expenses also gained from the absence of $250 million in charges associated with the impacts of COVID-19 in fiscal 2020. However, SG&A expenses increased 170 bps from second-quarter fiscal 2019 due to higher COVID-related labor and freight costs.Earnings before interest and taxes (“EBIT”) of $151 million reflected significant growth from a loss of $370 million in the year-ago quarter. The increase was mainly the result of higher sales volume and expanded merchandise margins. EBIT declined by $65 million from second-quarter fiscal 2019 due to higher freight, labor costs and drab sales volume, offset by gains from the resetting of cost structures in 2020.Other FinancialsNordstrom ended second-quarter fiscal 2021 with a strong balance sheet. Available liquidity as of Jul 31, 2021, was $1.3 billion, including $487 million of cash and cash equivalents. It had long-term debt (net of current liabilities) of $2,849 million and total shareholders’ equity of $268 million. As of Jul 31, 2021, the company used $545 million of net cash for operating activities and spent $217 million as capital expenditure.Fiscal 2021 OutlookDriven by solid quarterly results, management raised the fiscal 2021 view. The company anticipates revenue growth of 35%, up from the earlier mentioned 25%. It expects an EBIT margin of 3-3.5% compared with the previously mentioned 3%. Nordstrom forecast sales improvement in the third and fourth quarters of fiscal 2021 on a sequential basis.EBIT margin is likely to rise further, with gross margin improvement in the fiscal fourth quarter, driven by better inventory management and lower promotions. SG&A costs are expected to be higher in the second half of fiscal 2021 due to higher freight and labor costs.How Have Estimates Been Moving Since Then?It turns out, fresh estimates flatlined during the past month.VGM ScoresCurrently, Nordstrom has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second 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.OutlookNordstrom 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 Nordstrom, Inc. (JWN): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks1 hr. 6 min. ago

Why Is Medtronic (MDT) Down 4.2% Since Last Earnings Report?

Medtronic (MDT) 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 Medtronic (MDT). Shares have lost about 4.2% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Medtronic due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Medtronic Q1 Earnings, Revenues Top EstimatesMedtronic reported first-quarter fiscal 2022 adjusted earnings per share of $1.41, beating the Zacks Consensus Estimate by 6.8%. Adjusted earnings also showed a stupendous 127.4% improvement from the year-ago figure of 62 cents per share. Currency-adjusted earnings per share came in at $1.38 for the quarter.Without certain one-time adjustments — including restructuring, acquisition, amortization expenses and certain European Union medical device regulations charges — GAAP earnings per share was 56 cents, reflecting a 55.6% surge from the year-ago reported figure.Total RevenuesWorldwide revenues in the reported quarter grossed $7.99 billion, up 19% on an organic basis (excluding the impacts of currency) and 22.7% on a reported basis. The top line exceeded the Zacks Consensus Estimate by 1.7%.In the quarter under review, U.S. sales (51% of total revenues) rose 22% year over year on a reported basis to $4.1 billion. Non-U.S. developed market revenues totaled $2.6 billion (33% of total revenues), depicting a 20% improvement on a reported basis (up 11% on an organic basis).Emerging market revenues (16% of total revenues) amounted to $1.27 billion, up 31% on a reported basis (up 25% organically).Segment DetailsThe company currently generates revenues from four major segments, namely Cardiovascular Portfolio, Medical Surgical Portfolio, Neuroscience Portfolio, and Diabetes.In the fiscal first quarter, Cardiovascular revenues rose 15% at CER to $2.89 billion, reflecting low-twenties organic growth in SHA, mid-teens organic growth in CRHF, and high-single digit growth in CPV. CRHF sales totaled $1.48 billion, up 15% year over year at CER. Revenues from SHA were up 21% at CER to $787 million. CPV revenues were up 7% at CER to $620 million.In Medical Surgical, worldwide sales totaled $2.32 billion, marking a 25% year-over-year improvement at CER with high-thirties organic growth in SI and mid-single digit organic growth in RGR. SI rose 39% while RGR registered an improvement of 3% both at CER.In Neuroscience, worldwide revenues of $2.2 billion were up 26% year over year at CER, driven by high-thirties growth in Neuromodulation and Specialty Therapies and high-teens growth in CST, all on an organic basis. Cranial and Spinal Technologies reported 17% rise at CER. Sales in Specialty Therapies and Neuromodulation both were up 37% year over year at CER.Revenues at the Diabetes group fell 3% at CER to $572 million. The quarter registered high single-digit growth in durable pumps, including strong growth in international markets on the continued launch of the MiniMed 780G system. This growth however was offset by mid-teens declines in U.S. sales of consumables and continuous glucose monitoring (CGM) products.MarginsGross margin in the reported quarter expanded 597 basis points (bps) to 67.5% on a 34.7% rise in gross profit to $5.39 billion. Adjusted operating margin expanded 1138 bps year over year to 26.2%. Selling, general and administrative expenses rose 5.4% to $2.55 billion. Research and development expenses increased 20.8% to $750 million.GuidanceMedtronic has updated its fiscal 2022 financial guidance.The company continues to expect organic revenue growth of approximate 9% from fiscal 2021. Considering current foreign exchange rate, fiscal 2022 revenues are expected to be positively impacted by $100 to $200 million. The Zacks Consensus Estimate for the company’s fiscal 2022 worldwide revenues is pegged at $33.29 billion.The lower end of the full-year adjusted earnings per share guidance has been raised this time to a range of $5.65 to $5.75 including an estimated 5 to 10 cents positive impact from foreign exchange (the earlier band was $5.60 to $5.75 on an estimated 10 to 15 cents positive foreign exchange impact). The Zacks Consensus Estimate for the year’s adjusted earnings is $5.68.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.VGM ScoresCurrently, Medtronic has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Medtronic 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 Medtronic PLC (MDT): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks1 hr. 6 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: zacks1 hr. 6 min. ago

Toll Brothers (TOL) Down 5.1% Since Last Earnings Report: Can It Rebound?

Toll Brothers (TOL) 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 Toll Brothers (TOL). Shares have lost about 5.1% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Toll Brothers 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. Toll Brothers Q3 Earnings & Revenues Top, Margin UpToll Brothers, Inc. reported strong third-quarter fiscal 2021 (ended Jul 31, 2021) results. Both the top and bottom lines topped the Zacks Consensus Estimate and increased significantly on a year-over-year basis. The company has been benefiting from its strategy of broadening the product lines, price points and geographies.Douglas C. Yearley, Jr., chairman and chief executive officer, said, “Demand continues to be very strong. Net signed contracts were up 35% in dollars to approximately $3 billion compared to the prior year period. The housing market is being driven by many strong fundamentals, including low mortgage rates, favorable millennial-driven demographics, a decade of pent-up demand, low new home supply, and a tight resale market. We expect strong and sustainable demand for our homes in the years to come.”He continued, “Our record backlog, our focus on capital and operating efficiency, and the continued strength of the housing market give us confidence that our full FY 2022 margins will significantly exceed the strong margins we project for our FY 2021 fourth quarter and that our return on beginning equity will exceed 20% in FY 2022 and beyond.”On Aug, 24, 2021, Toll Brothers announced a strategic partnership with Equity Residential to selectively acquire and develop sites for new rental apartment communities in Metro Boston, MA; Atlanta, GA; Austin, TX; Denver, CO; Orange County/San Diego, CA; Seattle, WA, and Dallas-Fort Worth, TX.Earnings & Revenue DiscussionThe country’s leading luxury homebuilder reported earnings of $1.87 per share, surpassing the Zacks Consensus Estimate of $1.52 by 23%. Also, the said figure grew 74.4% from the year-ago figure of 90 cents per share as a result of higher revenues and margins.Revenues of $2.26 billion topped the consensus mark of $2.22 billion by 1.7% and increased 26.8% year over year, backed by solid demand during the quarter.Segment DetailToll Brothers operates under two reportable segments, namely Traditional Home Building and Urban Infill ("City Living").Revenues from Traditional Home Building totaled $2.15 billion, up 28.1% year over year, and that of City Living increased more than 594% to $184 million.Inside the Headline NumbersHome sales revenues grew 37% from the prior year to $2.23 billion. Homes delivered grew 28% year over year to 2,597 units. Deliveries increased in all regions served by the company. The average price of homes delivered was $806,600 for the quarter, up 1.7% from the year-ago level of $793,100.The number of net signed contracts for the reported quarter was 3,154 units, up 11% year over year. The value of net signed contracts was $2.98 billion, reflecting a rise of 35% from the year-ago quarter. These marked record third-quarter numbers.At fiscal third quarter-end, Toll Brothers had a backlog of 10,661 homes, representing a 47% year-over-year increase. Also, potential revenues from backlog improved 55% year over year to $9.44 billion. Backlog for the quarter, in both dollars and units, marked an all-time record high. The average price of homes in backlog totaled $885,200, up from $840,600 at the end of the comparable period of fiscal 2020.Cancellation rate for the reported quarter was 3.1% compared with 8% in the prior-year period.MarginsThe company’s home sales adjusted gross margin was 25.6%, expanding 170 basis points (bps) for the quarter.SG&A expenses — as a percentage of home sales revenues — were 10.5%, which decreased from 11.9% in the year-ago quarter.FinancialsToll Brothers had $946 million cash and cash equivalents as of Jul 31, 2021 compared with $1.37 billion at fiscal 2020-end. At fiscal third quarter-end, it had $1.79 billion available under the $1.905-billion bank revolving credit facility, scheduled to mature in November 2025.Total debt at fiscal third quarter-end was $3.59 billion, down from $3.96 billion at fiscal 2020-end. Debt to capital was 41.6% at fiscal third quarter-end versus 44.8% a year ago.During the quarter, the company repurchased nearly 1.7 million shares of its common stock at an average price of $57.66 per share for approximately $95.4 million.Fiscal Fourth-Quarter GuidanceToll Brothers expects home deliveries of 3,450 units (indicating an improvement from 2,940 units delivered in the prior-year quarter) at an average price of $840,000 (suggesting a rise from $805,000 a year ago).Adjusted home sales gross margin is now expected to be 25.6% (up from prior projection of 24.8), implying an increase from 21.9% in the year-ago period. SG&A expenses are estimated to be 9.8% of home sales revenues (pointing to fall from 9.9% a year ago). The projection has improved from prior expectation of 11.6%. The company expects effective tax rate to be 26%.Fiscal 2021 GuidanceFor full-year fiscal 2021, home deliveries are now anticipated to be 10,100 units (indicating an improvement from 8,496 units reported in fiscal 2020) at an average price of $830,000. Average price in the year-ago quarter was $816,500.Toll Brothers expects adjusted home sales gross margin of 24.9% (reflecting a marginal increase from 24.6% projected earlier). The current projection implies growth from 23.5% recorded in the year-ago period. SG&A expenses, as a percentage of home sales revenues, for full-year fiscal 2021 are projected to be 11.3% (suggesting fall from 12.5% in fiscal 2020). The current estimate reflects a decrease from the prior projection of 11.8%.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 5.27% due to these changes.VGM ScoresAt this time, Toll Brothers has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% 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, Toll Brothers 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 Toll Brothers Inc. (TOL): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks1 hr. 6 min. ago

Orion (ORN) Wins Multiple Deals, Aids Marine and Concrete

Orion (ORN) is set to benefit from multiple contracts in Marine and Concrete segments. Orion Group Holdings, Inc. ORN has won several contracts within the Marine and Concrete segments for a combined value of approximately $61 million.Inside the HeadlinesWithin the Marine segment, the company was awarded four contracts to conduct marine and infrastructure construction work in the gulf coast and in Alaska for a total value of $35 million. Also, it received three contracts in the gulf coast to construct marine infrastructure for private sector clients in Texas and Louisiana. Of these, two are valued at $11.8 million and $6.7 million, and includes construction and dredging of new ship and barge berths for petrochemical loading and unloading in the greater Houston area.The third one is valued at approximately $9 million and will replace the existing barge dock at a terminal located west of New Orleans. The three projects will likely commence in the fourth quarter and be completed by third-quarter 2022. Orion received the US Department of Transportation contract to demolish and replace an existing bridge in Alaska’s Denali National Park for $7.8 million. The work will begin late in the first quarter of 2022 and is anticipated to be completed in late 2023.In the Concrete segment, the company received two contracts within the Houston, TX area, which includes the construction of a building for a new industrial park worth $8 million. The other contract pertains to the construction of four tilt-wall buildings in a new distribution center for $9 million. Both the projects are expected to begin in the fourth quarter and likely to be completed before 2022-end.The company acquired a $3.2-million buildings construct contract for a new school in its Dallas market as well as two new townhome facilities building contracts in Austin, TX for more than $4 million. These projects are expected to commence in the fourth quarter and be completed by second-quarter 2022. Orion also inked a $2.1-million deal to construct a single-story tilt-wall building with associated site work in Daytona, FL. The first Concrete segment project outside Texas is likely to begin in the fourth quarter and be completed by first-quarter 2022-end.Contract Wins to Boost ProfitabilityOrion — which share space with Dycom Industries, Inc. DY, Sterling Construction Company, Inc. STRL and Primoris Services Corporation PRIM in the Zacks Building Products - Heavy Construction industry — derives its revenues from various marine construction, dredging, turnkey concrete services as well as other specialty services contracts. These projects are of typically short duration and usually span a period of less than a year.Image Source: Zacks Investment ResearchFor the six months of 2021, contract revenues declined 14.6% year over year. The downside was primarily due to severe winter weather in February, reduction in project activity in the marine segment and lower production volumes in the concrete segment due to weather-related impacts in the second quarter. Backlogs also declined from prior year’s levels due to headwinds stemming from the COVID-19 pandemic in certain end-market sectors, which has slowed the timing of project awards.Nonetheless, the same increased sequentially. The company is optimistic in its end markets and emerging opportunities across the market as evident from the $2 billion of quoted bids outstanding at quarter-end.Shares of this Zacks Rank #4 (Sell) company have surged 88.4% compared with the industry’s 69.3% rally in the past year.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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 Dycom Industries, Inc. (DY): Free Stock Analysis Report Sterling Construction Company Inc (STRL): Free Stock Analysis Report Orion Group Holdings, Inc. (ORN): Free Stock Analysis Report Primoris Services Corporation (PRIM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 6 min. ago

Household Net Worth Hits Record $142 Trillion, Up $31 Trillion Since COVID, But There Is A Catch...

Household Net Worth Hits Record $142 Trillion, Up $31 Trillion Since COVID, But There Is A Catch... Another quarter, another record high in (1%er) household net worth. The Fed's latest Flow of Funds report released at noon today showed the latest snapshot of the US "household" sector as of June 30 2021, which confirmed that one year after the biggest drop in household net worth on record when $8 trillion was wiped out in Q1, 2020, in the 2nd quarter of 2021 the net worth of US households soared by another $5.85 trillion, or 4.3%, rising to a new all time high of $141.7 trillion. As has traditionally been the case, real estate ($34.9 trillion) and directly and indirectly held corporate equities ($47.0 trillion) were the largest components of household net worth. Meanwhile, household debt (seasonally adjusted) was $17.3 trillion. This means that over the past 12 months, US household net worth has increased by: Q2 2020: $7.92TN Q3 2020: $4.26TN Q4 2020: $7.9TN Q1 2021: $5.1TN Q2 2021: $5.85TN ... a grand total of $31 trillion. And since the bulk of this wealth goes to a fraction of the wealthiest 1% (see chart at the bottom), it means that the covid pandemic has been the biggest wealth transfer in history, making America's richest even richer. Looking at the composition of the wealth change, $3.54 trillion came from a gain in stocks, $1.2 trillion was from an increase in real estate values - the biggest quarterly increase in housing values on record -  and another $1.1 trillion coming from "other sources." And visually: It wasn't just housing and real-estate: net private savings grew at an annualized pace of almost $2.9 trillion in the second quarter after a $4.8 trillion surge in the prior quarter -- which while still a high number, suggests that almost $2 trillion in excess savings have already been spent. Excess savings have been a key driver of consumer spending, including last quarter, where consumer outlays jumped at one of the fastest paces on record. Of course, in addition to assets, liabilities also grew, and in Q2 2021 household debt grew at a 7.9% SAAR, a more rapid pace than in previous quarters as home mortgages surged by 8.0%, spurred by rising home prices and sale activity as well as by the Fed keeping borrowing costs near zero. That’s led to record-low mortgage rates, which have bolstered demand for homes. The median selling price for previously owned homes is at a record high. Homeowners’ real estate holdings minus the change in mortgage debt rose $879.7 billion (a positive value indicates that the value of real estate is growing at a faster pace than household mortgage debt). Meanwhile, nonmortgage consumer credit increased by 8.6%, as credit cards, auto loans, and student debt all increased. Nonfinancial business debt grew at a rate of 1.4%, reflecting continuing growth in commercial mortagages, nonbank loans, and corporate bonds and a decline in nonmortgage depository loans. Federal debt rose 9.6%. State and local debt increased 3.1%. As GDP continued to grow, the ratio of nonfinancial debt to GDP edged down a bit further. In the second quarter of 2020, the ratio had spiked, driven by the drop in GDP and the expansion in federal debt related to the fiscal stimulus. Looking at the various components of nonfinancial business debt, nonmortgage depository loans to nonfinancial business decreased $143 billion in the first quarter. Contributing to the decline was the forgiveness of many loans extended under the Paycheck Protection Program (PPP), which more than offset the extension of new PPP loans. However, nonmortgage depository loans declined even excluding PPP loans. More than 400 billion of PPP loans were on the lenders’ balance sheet at the end of the second quarter and thus are still included in our measure of nonfinancial business debt. However, a large fraction of them is expected to be forgiven. In contrast to nonmortgage depository loans, commercial mortgages and nonbank loans continued to increase. Corporate bonds also increased, though at a slower pace than in the first quarter. Overall, outstanding nonfinancial corporate debt was $11.2 trillion. Corporate bonds, at roughly $6.6 trillion, accounted for 59% of the total. Nonmortgage depository loans were about $1.0 trillion. Other types of debt include loans from nonbank institutions, loans from the federal government, and commercial paper. The nonfinancial noncorporate business sector consists mostly of smaller businesses, which are typically not incorporated. Nonfinancial noncorporate business debt was $6.7 trillion, of which $4.7 trillion were mortgage loans and $1.6 trillion were nonmortgage depository loans. And while it would be great if this wealth increase was spread across most Americans, there is - as usual - a catch as unfortunately, most Americans aren’t benefiting from recent gains in wealth, and while the pandemic has led to a surge in savings and opportunities for many to buy a home or invest while pushing up the financial assets of the "top 10%" to record highs, the downturn has disproportionately impacted low-income workers, many of whom rent and don’t participate in the stock market. Indeed, the latest data as of Q1 shows that the top 1% accounts for over $41.5 trillion of total household net worth, with the number rising to over $90 trillion for just the top 10%. Meanwhile, the bottom half of the US population has virtually no assets at all. On a percentage basis, just the Top 1% now own a record 32.1% share of total US net worth, or $45.6 trillion. In other words, the richest Americans have never owned a greater share of US household income than they do, largely thanks to the Fed. Meanwhile, the bottom 50% own just 2% of all net worth, or a paltry $2.8 trillion. They do own most of the debt though... A closer look at the percentile breakdown: And the saddest chart of all: the wealth of the bottom 50% is virtually unchanged since 2006, while the net worth of the Top 1% has risen by 132% from $17.9 trillion to $41.5 trillion. Bottom line: the data underscore how the government's fiscal scramble to speed up the "economic recovery" paired with the Fed's continued ultra easy monetary policy have helped to protect and grow the wealth of the richest Americans: those who own assets, and who have seen their net worth hit an all time high... unlike the bottom 50% of Americans who mostly "own" debt.  Tyler Durden Thu, 09/23/2021 - 13:13.....»»

Category: blogSource: zerohedge1 hr. 7 min. ago

Pizza Hut seeks 40,000 new workers by the end of the year

Pizza Hut said Thursday that the pizza chain and its franchisees are looking for 40,000 new permanent workers by the end of 2021. Most of the openings are for drivers and cooks. Pizza Hut and franchisees are also hosting a virtual career event, Pizza Hut: Pathways to Possibility, on Sept. 29 to showcase how workers can advance their career with the brand. Pizza Hut joins a number of companies that are offering programs, benefits and pay to attract and retain workers in a tight labor market. Pizza Hut is part of the Yum Brands Inc. portfolio. Yum stock has gained 15.7% for the year to date while the S&P 500 index is up 18.6% for the period.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch1 hr. 51 min. ago

Michigan Gov. Whitmer Bans Masks/Vaxx Mandates As Polls Crash, Re-Election Fight Looks Grim

Michigan Gov. Whitmer Bans Masks/Vaxx Mandates As Polls Crash, Re-Election Fight Looks Grim Authored by Thomas Lifson via AmericanThinker.com, Gretchen Whitmer, the governor of Michigan, early on distinguished herself as a pandemic hypocrite, demanding severe lockdowns of her citizens subjects while exempting her family and herself.  Her husband was caught boating when she had forbidden ordinary Michiganders to do the same, and she was caught traveling to Florida, violating her own proclamations. Resentment has grown, and not even an FBI informant–led bogus kidnapping plot has been enough to keep her polls strong as she faces re-election in November 2022.  Mary Chastain of Legal Insurrection spotted Whitmer signing legislation that specifically banned the state from enforcing mask mandates and vaccine passports: Whitmer and the Michigan state legislature agreed on a budget. This is no ordinary budget because it bans mask mandates and vaccine passports: Democratic Michigan Gov. Gretchen Whitmer and the state legislature have agreed on a budget proposal that includes language banning health officials from enforcing mask mandates in schools and preventing state public agencies from enforcing vaccines on employees or customers. "The director or local health officer shall not issue or enforce any orders or other directives that require an individual in this state who is under the age of 18 to wear a face mask or face covering," the 1,000-page budget states in one section. Chastain notes that school districts are still free to enforce mask mandates. The reason for Whitmer's reversal is not hard to figure out.  Her polls stink. The Hill reports on a Trafalgar Group poll that shows her six points behind former Detroit police chief James Craig (who notably kept the peace there as Minneapolis and other cities were burning): Top ArticlesREAD MORERepeal the 17th Amendment Michigan Gov. Gretchen Whitmer (D) trails former Detroit Police Chief James Craig by 6 points in a hypothetical general election match-up, according to a poll released this week.  The survey from the GOP-leaning Trafalgar Group shows Craig, a Republican, leading Whitmer 50.4 percent to 44.4 percent among likely general election voters. Another 5.2 percent of respondents remain undecided.  Craig, who retired as Detroit police chief in June after nearly eight years on the job, announced his campaign for governor earlier this month at the urging of top Michigan Republicans.  Trafalgar may be right-leaning, but other polls also indicate trouble.  The Detroit News: Gov. Gretchen Whitmer's job approval has fallen to a point where Michigan voters are nearly split about how she is doing, according to a new poll released Monday, marking a large decline from prior surveys. The decrease has occurred as the Aug. 31-Sept. 3 survey by the Glengariff Group found that a majority of 600 registered voters said the state is on the wrong track and that they disapprove by a wide margin of the job that President Joe Biden is doing.  About 48% of voters approve of the Democratic governor's performance and 46% disapprove, according to the poll commissioned by the Detroit Regional Chamber, whose political action committee in 2018 endorsed Whitmer over Republican Bill Schuette for governor. The latest numbers are a marked shift from September 2020, when 59% of voters approved of Whitmer's performance and 38% disapproved (snip) Much of Whitmer's approval decline has occurred among independent voters, 39% of whom approved of her performance and 51% of whom disapproved, according to the poll, which has a margin of error of plus or minus four percentage points. "Michigan elections are decided by independent voters and how she does with these independent voters moving forward will really dictate" her performance in the 2022  election, said Richard Czuba, a pollster with the Lansing-based Glengariff Group.  It looks as though, worldwide, resentment and rebellion against lockdowns and other severe restrictions are on the rise.  The fact that so many politicians exempt themselves and their families from the masking and other restrictions they place on those they regard as inferiors isn't helping. Tyler Durden Thu, 09/23/2021 - 12:30.....»»

Category: blogSource: zerohedge2 hr. 7 min. ago

Is Invesco S&P 500 Equal Weight Utilities ETF (RYU) a Strong ETF Right Now?

Smart Beta ETF report for RYU The Invesco S&P 500 Equal Weight Utilities ETF (RYU) made its debut on 11/01/2006, and is a smart beta exchange traded fund that provides broad exposure to the Utilities/Infrastructure ETFs category of the market.What Are Smart Beta ETFs?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.Fund Sponsor & IndexBecause the fund has amassed over $236.42 million, this makes it one of the average sized ETFs in the Utilities/Infrastructure ETFs. RYU is managed by Invesco. RYU seeks to match the performance of the S&P 500 Equal Weight Telecommunication Services & Utilities Index before fees and expenses.This index is an unmanaged equal weighted version of the S&P 500 Utilities Index that consists of common stocks of the following industries: electric utilities, gas utilities, multi-utilities & unregulated power & water utilities,telecommunication service companies, including fixed-line, cellular, wireless, high bandwidth & fiber-optic cable networks.Cost & Other ExpensesSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for RYU are 0.40%, which makes it one of the cheaper products in the space.RYU's 12-month trailing dividend yield is 2.66%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Utilities sector - about 100% of the portfolio.Looking at individual holdings, Nrg Energy Inc (NRG) accounts for about 4.03% of total assets, followed by Nextera Energy Inc (NEE) and American Electric Power Co Inc (AEP).Its top 10 holdings account for approximately 36.79% of RYU's total assets under management.Performance and RiskThe ETF has added roughly 9.61% so far this year and was up about 17.18% in the last one year (as of 09/23/2021). In the past 52-week period, it has traded between $91.65 and $112.58.The ETF has a beta of 0.40 and standard deviation of 25.21% for the trailing three-year period, making it a medium risk choice in the space. With about 29 holdings, it has more concentrated exposure than peers.AlternativesInvesco S&P 500 Equal Weight Utilities ETF is a reasonable option for investors seeking to outperform the Utilities/Infrastructure ETFs segment of the market. However, there are other ETFs in the space which investors could consider.Vanguard Utilities ETF (VPU) tracks MSCI US Investable Market Utilities 25/50 Index and the Utilities Select Sector SPDR ETF (XLU) tracks Utilities Select Sector Index. Vanguard Utilities ETF has $4.93 billion in assets, Utilities Select Sector SPDR ETF has $12.82 billion. VPU has an expense ratio of 0.10% and XLU charges 0.12%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Utilities/Infrastructure ETFs.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 S&P 500 Equal Weight Utilities ETF (RYU): ETF Research Reports NextEra Energy, Inc. (NEE): Free Stock Analysis Report NRG Energy, Inc. (NRG): Free Stock Analysis Report American Electric Power Company, Inc. (AEP): Free Stock Analysis Report Utilities Select Sector SPDR ETF (XLU): ETF Research Reports Vanguard Utilities ETF (VPU): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks2 hr. 23 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: zacks2 hr. 23 min. ago

Should Franklin LibertyQ U.S. Equity ETF (FLQL) Be on Your Investing Radar?

Style Box ETF report for FLQL If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Franklin LibertyQ U.S. Equity ETF (FLQL), a passively managed exchange traded fund launched on 04/26/2017.The fund is sponsored by Franklin Templeton Investments. It has amassed assets over $1.18 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.Why Large Cap BlendCompanies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.CostsWhen considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.It has a 12-month trailing dividend yield of 1.77%.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation to the Information Technology sector--about 23.50% of the portfolio. Healthcare and Industrials round out the top three.Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 1.20% of total assets, followed by Adobe Inc (ADBE) and Eli Lilly + Co (LLY).The top 10 holdings account for about 10.92% of total assets under management.Performance and RiskFLQL seeks to match the performance of the LibertyQ US Large Cap Equity Index before fees and expenses. The U.S. Large Cap Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 1000 Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 1000 Index that have favorable exposure to four investment style factors quality, value, momentum and low volatility.The ETF has added about 17.14% so far this year and was up about 28.96% in the last one year (as of 09/23/2021). In the past 52-week period, it has traded between $33.63 and $45.19.The ETF has a beta of 0.90 and standard deviation of 21.48% for the trailing three-year period. With about 258 holdings, it effectively diversifies company-specific risk.AlternativesFranklin LibertyQ U.S. Equity ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FLQL is an excellent option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $300.17 billion in assets, SPDR S&P 500 ETF has $398.44 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.To 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 Franklin LibertyQ U.S. Equity ETF (FLQL): ETF Research Reports Eli Lilly and Company (LLY): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Adobe Inc. (ADBE): Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here......»»

Category: topSource: zacks2 hr. 23 min. ago

What"s in the Offing for Micron Technology"s (MU) Q4 Earnings?

Micron's (MU) Q4 results likely to reflect benefits from significant memory chip demand from data-center operators and PC manufacturers amid the pandemic-induced work-and-learn-from-home wave. Micron Technology MU is scheduled to report fourth-quarter fiscal 2021 results on Sep 28.The company projects fiscal fourth-quarter adjusted earnings to be $2.30 (+/- 10 cents) per share. The Zacks Consensus Estimate for the quarterly earnings is pinned at $2.31 per share, having been revised upward by 16 cents over the past 90 days. The consensus mark indicates a 113.9% surge from the year-ago quarter.Meanwhile, Micron estimates revenues to be $8.2 billion (+/- $200 million). The consensus mark for revenues is currently pegged at $8.19 billion, suggesting a 35.3% increase from the year-earlier period.The company’s earnings surpassed the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 7.7%.Let’s see how things have shaped up prior to this announcement.Micron Technology, Inc. Price and EPS Surprise Micron Technology, Inc. price-eps-surprise | Micron Technology, Inc. QuoteFactors to ConsiderThe stay-at-home situation has spurred significant chip demand from PC manufacturers and data-center operators, which is anticipated to have driven Micron’s fiscal fourth-quarter earnings. The global quarantine situation has fueled significant demand for PCs and notebooks, with the surge in workers and students working and learning from homes.The remote-working and online-learning trend amid the coronavirus crisis has also stoked demand for cloud storage. Furthermore, lockdowns have fueled the usage of online and e-commerce services globally, compelling data-center operators to enhance their capacities in order to accommodate the demand spike for cloud services. All these factors are likely to have aided Micron’s top line during the quarter under review.A solid uptick in the DRAM bit shipments for the cloud, graphics, PC and notebook, 5G and automotive markets is anticipated to have been a positive during the quarter to be reported.Nonetheless, Micron’s heavy dependence on China is a headwind due to the ongoing tit-for-tat trade spat between the United States and China. Restrictions on exports to Huawei might have hurt top-line growth of the memory chip maker.Additionally, a higher mix of lower-margin NAND, coupled with low memory prices and minimal decline in manufacturing costs, is expected to have strained margins.Furthermore, higher prequalification and labor expenses are likely to have negatively impacted Micron’s fourth-quarter bottom-line performance. During the fiscal second-quarter conference call, the company noted that it expects a rise in operating expenses during the second half of fiscal 2021 due to the higher prequalification and labor expenses.Moreover, operating expenses are expected to have flared up during the fiscal fourth quarter due to the resumption of the previously-delayed fiscal 2021 salary hikes in the fiscal third quarter. This might have hurt the company’s margins and profitability during the quarter under review.What Our Model SaysOur proven model does not conclusively predict an earnings beat for Micron this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.Micron currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 0.00%.Stocks With Favorable CombinationsHere are some companies, which, per our model, have the right combination of elements to post earnings beats in their upcoming releases:Alcoa AA has an Earnings ESP of +33.55% and sports a Zacks Rank #1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.McCormick & Company MKC has an Earnings ESP of +0.28% and currently carries a Zacks Rank of 3.CarMax KMX has an Earnings ESP of +0.18% and holds a Zacks Rank of 3, currently. 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 Alcoa Corp. (AA): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report CarMax, Inc. (KMX): Free Stock Analysis Report McCormick & Company, Incorporated (MKC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks2 hr. 23 min. ago

Here"s What Makes Chemours (CC) Stock A Solid Bet Right Now

Chemours (CC) benefits from demand revival across all markets, strong execution and its cost-reduction actions. The Chemours Company CC is benefiting from higher demand for Opteon in mobile applications, strong execution and cost-cutting measures. We are positive on the company’s prospects and believe that the time is right for you to add the stock to the portfolio as it looks promising and is poised to carry the momentum ahead.Chemours currently carries a Zacks Rank #1 (Strong Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities for investors.Let's see what makes this chemical maker a compelling investment option at the moment.Price PerformanceShares of Chemours have rallied 36.6% over a year compared with the 20.7% rise of its industry. It has also outperformed the S&P 500’s 31.3% rise over the same period. Image Source: Zacks Investment Research Estimates Moving UpOver the past two months, the Zacks Consensus Estimate for Chemours for the current year has increased around 11.5%. The consensus estimate for third-quarter 2021 has also been revised 9% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.Positive Earnings Surprise HistoryChemours has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of 38.9%, on average.Solid Growth ProspectsThe Zacks Consensus Estimate for earnings for 2021 for Chemours is currently pegged at $3.69, reflecting an expected year-over-year growth of 86.4%. Moreover, earnings are expected to register 106.4% growth in third-quarter 2021.Attractive ValuationValuation looks attractive as Chemours’ shares are currently trading at a level that is lower than the industry average, suggesting that the stock still has upside potential.Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, which is often used to value chemical stocks, Chemours is currently trading at trailing 12-month EV/EBITDA multiple of 7.67, cheaper compared with the industry average of 9.89.Upbeat ProspectsChemours is gaining from a rebound in demand from the pandemic-led lows, strong execution and its cost-reduction actions. The company is seeing demand revival across all markets and regions on the global macroeconomic recovery.The company is witnessing increasing adoption of the Opteon platform. Demand for Opteon remains strong in mobile and stationary applications. Chemours remains committed toward driving Opteon adoption. It is ramping up production at the new low-cost Opteon Corpus Christi facility.Chemours should also gain from its efforts to reduce costs. It is undertaking actions to cut costs by reducing overhead, discretionary spend and capital expenditures. The company’s cost-reduction program along with its productivity and operational improvement actions across its businesses are expected to support margins in 2021.The company also remains focused on boosting its cash flows and returning value to shareholders. It generated strong free cash flow of $189 million in the second quarter. Chemours expects to generate free cash flow of more than $450 million in 2021 and return the majority of this to its shareholders through dividend and share repurchases. The Chemours Company Price and Consensus  The Chemours Company price-consensus-chart | The Chemours Company QuoteStocks to ConsiderOther top-ranked stocks worth considering in the basic materials space include The Mosaic Company MOS, United States Steel Corporation X and AdvanSix Inc. ASIX, each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.Mosaic has an expected earnings growth rate of 471.8% for the current year. The stock has also rallied around 76% over a year.U.S. Steel has a projected earnings growth rate of 368.9% for the current year. The company’s shares have shot up around 204% in a year.AdvanSix has a projected earnings growth rate of 160.4% for the current year. The company’s shares have surged around 204% in a year. 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 United States Steel Corporation (X): Free Stock Analysis Report The Mosaic Company (MOS): Free Stock Analysis Report The Chemours Company (CC): Free Stock Analysis Report AdvanSix Inc. (ASIX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks2 hr. 23 min. ago

5 Stocks to Watch Amid Surging Demand for Digital Payments

Watch out for stocks like Apple (AAPL), Usio (USIO), EVERTEC (EVTC), Visa (V) and Alphabet (GOOGL) amid continued demand for digital payment as a safe and convenient way of transacting. As the pandemic halted in-store shopping, people resorted to shopping online and preferred digital or contactless payments as a safer method for transacting. Safety has become a priority among consumers around the world and businesses have been adopting contactless payment methods to meet the growing demand. Per the Back to Business Study report by Visa Inc. V, 48% of consumers said that they wouldn’t shop at a store unless it offered some form of contactless payment, as mentioned in a Vending Market Watch article.In fact, a survey conducted by the National Retail Federation and Forrester in the United States last year found that 67% of the retailers surveyed were accepting some form of contactless payment. This included 58% of retailers that accept contactless cards that can be waved past or tapped on card readers compared to 40% in 2019, while 56% reported taking digital wallet payments on mobile phones, rising from 44% in 2019.Apart from being contactless, digital payments offer other benefits which can ensure that their demand continues to accelerate even beyond the pandemic. Digital payments provide faster and hassle-free transactions. Consumers don’t have to carry cash with them and can also complete transactions via their smartphones. Merchants and financial institutions too offer certain discounts upon purchases as well as other offers, making it even more exciting for consumers. It also helps consumers to easily keep track of how much they are spending and where, as the details of the transactions are readily available.Several forms of digital payments are available and while credit and debit cards have been popular choices, other methods like quick response (“QR”) code scanning are gaining traction. This is because consumers simply have to scan the merchant’s QR code to initiate the payment process, making it even more convenient. In fact, per a Juniper Research report, the number of QR code payments users is expected to exceed 2.2 billion in 2025, from 1.5 billion in 2020, and amount to 29% of mobile users worldwide.Reflective of the positive developments that digital payments have been witnessing, the digital payments market is expected to grow. Per a report by ReportLinker, the digital payments market is expected to witness a CAGR of 13.7% from 2021 to 2026, as mentioned in a GlobeNewswire article.5 Stocks to WatchThe popularity of digital payments is set to accelerate further, thanks to the myriad conveniences they offer. This seems then a good time to look at companies offering digital payment solutions that stand to benefit from this potential. We have selected five such stocks that carry a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.Apple Inc. AAPL offers Apple Card, a co-branded credit card; and Apple Pay, a cashless payment service. On Aug 19, the company announced that Apple Card, which is the only card issued by Goldman Sachs, ranked highest among the Midsize Credit Card segment in the J.D. Power 2021 U.S. Credit Card Satisfaction Study.Shares of Apple have risen 9.9% year to date and it currently flaunts a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings increased 7.7% over the past 60 days. The company’s expected earnings growth rate for the current year is 70.4%.Usio, Inc. USIO, together with its subsidiaries, provides integrated electronic payment processing services to merchants and businesses in the United States. The company offers various types of automated clearing house processing; and credit, prepaid card, and debit card-based processing services.Shares of Zacks Rank #2 Usio have risen 125.1% year to date. The Zacks Consensus Estimate for its current-year earnings improved 55.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 82.6%.EVERTEC, Inc. EVTC provides merchant acquiring services, which enable point of sales and e-commerce merchants to accept and process electronic methods of payment, such as debit, credit, prepaid, and electronic benefit transfer cards.Shares of EVERTEC have risen 17.1% year to date. The Zacks Consensus Estimate for its current-year earnings increased 13.8% over the past 60 days. This Zacks Rank #2 company’s expected earnings growth rate for the current year is 27.5%.Visa facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. On Apr 7, the company announced that it had processed one billion additional touch-free payments in Europe, within less than a year since contactless payment limits were increased across 29 countries in Europe due to the pandemic.Shares of Visa have gained 7.1% over the past six months and it currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 3.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 15.5%.Alphabet Inc.’s GOOGL Google offers Google Pay, a digital payment app where users can send or receive money with ease. The app also supports QR code scan payments.Shares of this Zacks Rank #3 company have risen 60.1% year to date. The Zacks Consensus Estimate for its current-year earnings increased 13.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 73.8%. 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 Apple Inc. (AAPL): Free Stock Analysis Report Visa Inc. (V): Free Stock Analysis Report Evertec, Inc. (EVTC): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Usio Inc (USIO): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks2 hr. 23 min. ago

Fed Gives Bond-Buy Tapering Signal Without Timeline: 5 Picks

We have narrowed down our search to five U.S. corporate behemoths that have strong growth potential for the rest of 2021. These are: AAPL, MSFT, NVDA, DHR and COST. On Sep 22, Wall Street closed sharply higher ending its 4-day losing streak and recouped some of the losses it has suffered in September. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — rallied 1% each, while the small-cap-centric Russell 2000 surged 1.5%.U.S. stock markets rebounded following Fed Chairman Jerome Powell’s confirmation that a shift from the central bank’s ultra-dovish monetary policy is not immediate. The Fed will maintain its monetary stimulus and stick to a near-zero short-term benchmark interest rate at least for the time being.Powell Maintains Dovish StanceIn his statement after the conclusion of the two-day FOMC meeting, Fed Chairman Jerome Powell said “If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted.”Fed Chairman made the point that it is “more important to do it right than fast.” “While no decisions were made, participants generally viewed that so long as the recovery remains on track, a gradual tapering process that concludes around the middle of next year is likely to be appropriate,” he said.Powell said that the central bank’s further progress test has been met regarding its inflation target. He added “My own view is the test for substantial further progress on employment is all but met.” However, Powell made it clear “For me it wouldn’t take a knockout, great, super strong employment report. It would take a reasonably good employment report for me to feel like that test is met.”Fed’s latest dot plot for rate projection is showing nine out of18 members believing that the first rate cut will come in the second half of 2022. This number was just seven after June’s FOMC meeting. However, Powell had commented in June that dot plots should be taken with a “big grain of salt.” It is “not a great forecaster of future rate moves." Fed's policy will be guided by the actual outcome of economic variables and not by its officials' expectations about the future.Tapering Likely Priced in Market ValuationThe Fed Chairman has said repeatedly that the central bank will give enough indication to market participants before it actually starts tapering in order to minimize volatility.Although the Fed has restrained from providing any timeline as to when the tapering of the monthly $120 billion bond-buy program will start, many economists and financial researchers believe that the announcement will come in the next FOMC meeting in November and the process will start from December.Despite this, yesterday’s rally indicates that the impact of tapering seems already factored in market valuations. The central bank had taken this extraordinary measure last year to tackle an extraordinary health hazard-led economic devastation. Everyone knows that this monetary stimulus will fade out gradually with the pace of U.S. economic recovery.Therefore, a possible tapering of the Fed’s monthly $80 billion Treasury Notes and $40 billion mortgage-backed bond-buying program this year may not shake market participants’ confidence. The important point is that the Fed has taken an extremely cautious approach to tapering its quantitative easing program.Stock Selection CriteriaAt this stage, it will be prudent to invest in stocks of U.S. corporate behemoths (market capital > $100 billion) that have performed better than the market’s benchmark — the S&P 500 Index — in the past month, amid September’s volatility.The stocks must carry a favorable Zacks Rank. These companies have highly established business models spread across the world, lucrative product pipelines, globally acclaimed brand recognition and robust financial positions, which will help them to cope with a higher interest rate.Accordingly, we have narrowed down our search to five U.S. corporate behemoths that have strong growth potential for the rest of 2021. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The chart below shows the price performance of our five picks in the past month.Image Source: Zacks Investment ResearchApple Inc.'s AAPL Services and Wearables businesses are expected to drive top-line growth in fiscal 2021 and beyond. Although Apple’s business primarily runs around its flagship iPhone, the Services portfolio has emerged as the company’s new cash cow. Its focus on autonomous vehicles and augmented reality/virtual reality technologies presents growth opportunities in the long haul.This Zacks Rank #1 company has an expected earnings growth rate of 2.2% for next year (ending September 2022) after estimated 70.4% growth in the current year (ending September 2021). The Zacks Consensus Estimate for next year improved 6.3% over the last 60 days.Microsoft Corp. MSFT is introducing new and improved Surface devices that could encourage enterprises to stick with Windows as they move toward BYOD and cloud computing. Microsoft’s advantages in this respect are two-fold.First, the company has a very large installed base of Office users. Most legacy data are based on Office, so enterprises are usually reluctant to use other productivity solutions. Second, the BYOD model is dependent on security and cloud integration, both of which are Microsoft’s strengths.This Zacks Rank#2 company has an expected earnings growth rate of 8.4% for the current year (ending June 2022). The Zacks Consensus Estimate for current-year earnings improved 3.7% over the last 60 days.NVIDIA Corp. NVDA is benefiting from the coronavirus-induced work-from-home and learn-at-home wave. It is also benefiting from strong growth in GeForce desktop and notebook GPUs, which are boosting gaming revenues.Moreover, a surge in Hyperscale demand remains a tailwind for the company’s Data Center business. The expansion of NVIDIA GeForce NOW is expected to drive its user base. Further, a solid uptake of artificial intelligence-based smart cockpit infotainment solutions is a boon.This Zacks Rank #2 company has an expected earnings growth rate of 68% for the current year (ending January 2022). The Zacks Consensus Estimate for current-year earnings has improved 5.8% over the last 60 days.Danaher Corp. DHR is poised to gain from Danaher Business System (“DBS”), the policy of rewarding shareholders through dividend payments, synergistic benefits from acquired assets and investment in product innovation in the quarters ahead.The company anticipates core revenue growth in the mid to high-teens range for the third quarter of 2021 and in the high-teens for 2021. The pandemic-led tailwinds are expected to boost core sales by high-single digits in the third quarter and by 10% in 2021.This Zacks Rank #2 company has an expected earnings growth rate of 50.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1% over the last 30 days.Costco Wholesale Corp. COST operates membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. It offers branded and private-label products in a range of merchandise categories.Its growth strategies, better price management, decent membership trend and increasing penetration of e-commerce business reinforce its position. The strategy to sell products at discounted prices has helped to draw customers seeking both value and convenience. These factors have been aiding in registering impressive sales numbers.This Zacks Rank #2 company has an expected earnings growth rate of 7.9% for the current year (ending August 2022). The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 30 days. 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 Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Danaher Corporation (DHR): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks2 hr. 23 min. ago

Bear Of The Day: NetEase (NTES)

Despite beating the number in three of the last four quarters, estimates are falling for this stock NetEase (NTES) is a Zacks Rank #5 (Strong Sell) despite beating the Zacks Consensus Estimate in the most recent quarter.  Stocks that miss the number don’t always fall to a Zacks Rank #5 (Strong Sell) so let’s take a look at why that is the case in this Bear of the Day article.DescriptionNetEase, Inc. is an Internet technology company engaged in the development of applications, services and other technologies for the Internet in China. It provides online gaming services that include in-house developed massively multi-player online role-playing games and licensed titles. NetEase, Inc.is based in Beijing, the People's Republic of China.Earnings HistoryWhen I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.In the case of NTES, I see one miss and three beats of the Zacks Consensus Estimate over the last year.  This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.Earnings EstimatesThe Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower.  For NTES I see estimates fluctuating.This quarter has dipped from  $0.74 to $0.73.Next quarter has moved from $1.01  to $1.00 over the last 60 days.The Zacks Rank is more heavily influenced by the move in the annual numbers, and the movement is negative for those numbers.The 2021 consensus number has decreased from $3.58 to $3.36.The 2022 number has moved from $4.56 to $3.98 over the last 60 days.Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).It should be noted that a majority of stocks in the Zacks universe are seeing positive earnings estimate revisions.  That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).Chart NetEase, Inc. Price, Consensus and EPS Surprise NetEase, Inc. price-consensus-eps-surprise-chart | NetEase, Inc. Quote 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 NetEase, Inc. (NTES): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks2 hr. 23 min. ago

4 Stocks to Watch in a Thriving Videogame Industry

High demand for videogames since the coronavirus outbreak has been boosting sales of consoles from Microsoft Corporation (MSFT) and Sony Corporation (SNE). The U.S. videogame industry has been doing great for quite some time. Although many had worried that that spending on videogames will slowdown as the economy reopens given that people will have more options for entertainment, that hasn’t happened.In fact, the optimism surrounding videogame sales is likely to continue. According to the latest report by the NPD Group, videogame sales increased once again in August.Videogame Sales RiseAccording to the latest report by the NPD Group, gamers spent $4.37 billion on videogames and accessories in August, increasing 7% year over year. On a year-to-date basis, consumer spending on videogames and accessories reached $37.9 billion, marking a whopping 13% jump from a year ago.Spending on hardware totaled $329 million, jumping 45% year over year. This was also the best August for hardware sales since 2008, when spending hit $395 million. On a year-to-date basis, spending on hardware increased 49%, reaching $3 billion.Sony Corporation’s SONY PlayStation 5 was the best-seller in terms of dollar sales. However, Nintendo Co.’s NTDOY Switch was the top-selling console in August.In terms of games, Electronic Arts Inc.’s EA Madden NFL 22 was the bestselling followed by Sony’s Ghost of Tsushima and Activision Blizzard, Inc.’s ATVI Call of Duty: Black Ops: Cold War.Videogame Market Looks PromisingThe videogame market holds immense potential for growth. It has been a great 2020 and 2021, with sales rising every month since the COVID-19 outbreak, except for a surprise decline in April.Also, new players are foraying into the market which proves that the industry is flourishing. Netflix, Inc. NFLX announced in July that it would be setting foot in the gaming market, as subscriber growth for the streaming giant is fast stagnating. This will only intensify competition in the market in the coming days.Experts had thought that the market would slow down once the economy reopens but sales have been a lot higher than the pre-pandemic and pandemic levels and the momentum is likely to stay. According to NPD Group’s Q2 2021 Games Market Dynamics: U.S., consumer spending on videogames in second-quarter 2021 increased 2% year over year to reach $14 billion. It is expected that the third quarter too will be a good one.Stocks to WatchThe videogame industry is seeing robust sales in2021, given that the pandemic is still keeping people indoors. This makes it an opportune time to invest in gaming stocks that are sure to benefit in the near term.Microsoft Corporation MSFT is one of the leading videogame makers and manufacturers of hardware and accessories. The company has been expanding its footprint in the industry and recently announced that it will be acquiring videogame maker ZeniMax Media.The company’s expected earnings growth rate for the current year is 8.4%. The Zacks Consensus Estimate for current-year earnings improved 3.8% over the past 60 days. Microsoft carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Sony Corporation designs, manufactures and sells several consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, displays, semiconductors, electronic components, gaming consoles, computers and computer peripherals, and telecommunication equipment. The company’s expected earnings growth rate for next year is 18.5%. The Zacks Consensus Estimate for current-year earnings improved 0.9% over the past 60 days.  Sony has a Zacks Rank #3 (Hold).Activision Blizzard, Inc. is a leading developer and publisher of console, online and mobile games. The company’s Call of Duty is one of the most-popular gaming franchises globally. Its Overwatch League can be considered a pioneer of the e-sports concept.The company’s expected earnings growth rate for the current year is 10.4%. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the past 60 days. Activision Blizzardcarries a Zacks Rank #3.Electronic Arts, Inc. is a leading developer, marketer, publisher and distributor of interactive games (video game software and content). It distributes gaming content and services through multiple distribution channels as well as directly to consumers (online and wirelessly) through its online portals.The company’s expected earnings growth rate for the current year is 15.8%. The Zacks Consensus Estimate for current-year earnings has improved 3.3% over the past 60 days.Electronic Arts has a Zacks Rank #3. 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 Microsoft Corporation (MSFT): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report Electronic Arts Inc. (EA): Free Stock Analysis Report Nintendo Co. (NTDOY): Free Stock Analysis Report Sony Corporation (SONY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks2 hr. 23 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: zacks2 hr. 23 min. ago