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Category: topSource: redinewsMay 1st, 2021

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. 27 min. ago

Here is Why UnitedHealth (UNH) Should Grace Your Portfolio

A solid positioning in an ever-growing industry makes UnitedHealth (UNH) a top pick for strong investment gains. Making an industry leader part of your investment portfolio provides an overall stability and boosts profitability. Industry leaders by virtue of their dominant market position and robust balance sheet have higher capabilities to tide the economic swings and emerge unhurt. Thus, one should always keep such stocks at one’s disposal and if such a company belongs to a resilient industry such as health insurance then the degree of stability increases.  Today we will talk about the health insurance leader UnitedHealth  Group Inc. UNH, which has gained 16.8% year to date compared with the industry's growth of 14.8%, and why buying this stock can be a good investment move. Image Source: Zacks Investment ResearchFirst of all, the company has an exemplary track record of earnings outperformance and a look at the last 28 quarters show surprises in each period. Though past performances do not guarantee future results but the same does give a great deal of insights into the company’s ability to successfully navigate the ups and downs in the economy and business cycles, its enterprise risk management and its business resilience.UnitedHealth is a dynamic company, which has evolved constantly. Since the Affordable Care Act came into effect in 2010 and imposed a number of restrictions on health insurers. The company kept modifying and diversifying its business to align with the changes in the industry and has emerged successfully over the past decade. An investor holding its shares for the past 10 years would have lapped up a return of 766% compared with the S&P’s Index return of 288% over the same time frame.UnitedHealth looks well poised for growth for the foreseeable future. Let’s analyze the reasons here:A Well-Diversified Business: UnitedHealth is present across different verticals, right from selling its health insurance plans via its segment, UnitedHealthcare to other areas of health care, such as pharmacy management, information and technology-enabled health services business, ambulatory care systems etc. These services are provided by its unit named Optum. Most of the same has been built by making small and big acquisitions over the past several years. No other insurer matches the scale of diversification like UnitedHealth.The company’s flourishing business will continue to propel its earnings. It is on a continuous hunt for acquiring the best-fitting entity that can add to its capabilities. With a successful integration track record, the company will be able to reap synergies from its judicious takeovers.Large-Scale Presence in an Attractive Market: UnitedHealth holds the number one spot in the for-profit or private Medicare Advantage (MA) market with other players like Aetna, a unit of CVS, Anthem Inc. ANTM, Centene Corp. CNC and Cigna Corp. CI following close.UnitedHealthcare has the largest share of Medicare Advantage enrollment since 2010. Its share of Medicare Advantage enrollment has grown from 19% in 2010 to 27% in 2021. The MA market, which is the private version of the public Medicare plans, is expected to grow fast as it caters to the aging baby boomer population, which is growing each year. A large market share with many of its plans carrying star ratings should fetch the company impressive membership growth.  International Operations Augur Well: UnitedHealth is one of the few insurers that has presence outside the United States, which provides it with benefits of geographical diversification. Its global business continues to be an early-stage investment area and bodes well for the long term.Solid Growth Outlook: The company’s guidance raises enough optimism for the long haul. Its long-term earnings per share (EPS) growth view is projected at 13-16% per annum, on average, with about two-thirds (8-11%) of the same being driven by earnings from operations and one-third (3-5%) from capital deployment.Sturdy Capital Position: A consistent favorable cash flow enables it to pursue growth strategies, such as buyouts and capital management via dividend payments and share buybacks. The current dividend yield is 1.36%, which has grown at 25.16% rate per year for the past 10 years. With a payout ratio of 30%, dividend growth is well-cushioned by the company’s robust earnings.BottomlineThe stock currently carries a Zacks Rank #2 (Buy) and is sure to display a share price appreciation by virtue of its strong business and growth visibility. It should thus be part of one’s investment portfolio for solid gains. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.  Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Cigna Corporation (CI): Free Stock Analysis Report Centene Corporation (CNC): Free Stock Analysis Report Anthem, Inc. (ANTM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 2021

JPMorgan (JPM) Hikes Dividend: Is the Stock Worth a Look?

JPMorgan (JPM) increases its quarterly dividend by 11.1% to $1 per share. JPMorgan JPM has increased its regular quarterly dividend. The bank announced a dividend of $1 per share, representing a hike of 11.1% from the prior payout. The dividend will be paid out on Oct 31 to shareholders of record as of Oct 6.Based on last day’s closing price, the dividend yield currently stands at 2.6%.JPMorgan has a track record of increasing its dividends since 2011. From paying 5 cents a share as the quarterly dividend during the financial crisis, the company has come a long way in terms of capital strength.Last year, amid the coronavirus-induced economic slowdown, the Federal Reserve restricted dividends and share repurchases by JPMorgan along with other major banks to conserve liquidity. However, with the removal of restrictions, the Wall Street giant is expected to be able to continue to enhance shareholder value in the future through efficient capital deployments, given its earnings and capital strength.So far this year, shares of JPMorgan have gained 20.4% compared with 23.8% growth recorded by the industry. Image Source: Zacks Investment Research Investors, who are interested in this Zacks Rank #3 (Hold) stock, should first take a look at its fundamentals and growth opportunities mentioned below before making any investment decision.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Strength: Over the past three-five years, JPMorgan witnessed earnings growth of 13.6% compared with the industry average of 8.8%. In 2021, the company’s earnings are projected to grow 58.2%.Its long-term (three-five years) estimated earnings growth rate of 5% promises rewards for investors in the long run.Further, JPMorgan has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 33.3%.Superior Return on Equity (ROE): JPMorgan’s ROE is 19.26% compared with the industry average of 12.10%. This indicates that the company reinvests cash more efficiently compared with its peers.Impressive Expansion Strategy: JPMorgan has been expanding its footprint in new regions by opening branches. In 2018, it announced plans of entering 25 markets by opening 400 new branches by 2022-end. On this front, the bank has already added more than 220 new branches and has a presence in 48 of 50 U.S. states.Moreover, supported by a solid balance sheet position, the company has been growing through strategic acquisitions. Of late, it has been on an expansion spree and has announced several deals that are expected to help grow fee income and support the bank's plan to diversify revenues. In the current year, JPMorgan’s top line is expected to grow 2.4%.Elevated Expenses: The company’s operating expenses have witnessed a compound annual growth rate of 4.3% over the five-year period ended 2020. The upward trend continued in the first two quarters of 2021. As JPMorgan continues with strategic on-bolt acquisitions and invests to upgrade technology, expenses are likely to remain elevated.Margin Pressure: Over the past several quarters, JPMorgan’s net interest income growth has been hampered and its net yield on interest-earning assets has contracted because of the low interest rate environment. Notably, after slashing rates thrice in 2019, the Fed cut the interest rates to near zero in March 2020, with an aim to support the U.S. economy from the coronavirus-induced mayhem. Since the central bank has signaled no major change in the interest rate scenario anytime soon, JPMorgan’s margins are expected to remain under pressure.Competitive LandscapeMany finance companies have raised their dividend over the past few months.A few days ago, Fifth Third Bancorp FITB raised its quarterly cash dividend by 11%. The company will now pay out a dividend of 30 cents per share. The dividend will be paid out on Oct 15 to its shareholders of record as of Sep 30.While Spirit of Texas Bancshares, Inc. STXB announced a 33.3% hike in its dividend to 12 cents per share, Virtus Investment Partners, Inc. VRTS increased its regular quarterly cash dividend by 83%. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Fifth Third Bancorp (FITB): Free Stock Analysis Report Virtus Investment Partners, Inc. (VRTS): Free Stock Analysis Report Spirit of Texas Bancshares, Inc. (STXB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 2021

Should Legg Mason Low Volatility High Dividend ETF (LVHD) Be on Your Investing Radar?

Style Box ETF report for LVHD The Legg Mason Low Volatility High Dividend ETF (LVHD) was launched on 12/28/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.The fund is sponsored by Franklin Templeton Investments. It has amassed assets over $726.47 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.Why Large Cap ValueLarge cap companies typically 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.While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.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 0.27%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 2.89%.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.Looking at individual holdings, Eaton Corp Plc accounts for about 2.64% of total assets, followed by Philip Morris Internation and Emerson Electric Co.The top 10 holdings account for about 25.47% of total assets under management.Performance and RiskLVHD seeks to match the performance of the QS Low Volatility High Dividend Index before fees and expenses. The QS Low Volatility High Dividend Index provides stable income through investment in stocks of profitable U.S. companies with relatively high dividend yields, lower price and earnings volatility.The ETF has added roughly 14.99% so far this year and was up about 28.29% in the last one year (as of 09/22/2021). In the past 52-week period, it has traded between $28.63 and $38.25.The ETF has a beta of 0.80 and standard deviation of 21.70% for the trailing three-year period. With about 87 holdings, it effectively diversifies company-specific risk.AlternativesLegg Mason Low Volatility High Dividend 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, LVHD is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $53 billion in assets, Vanguard Value ETF has $81.80 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Legg Mason Low Volatility High Dividend ETF (LVHD): ETF Research Reports Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 22nd, 2021

Is Invesco Defensive Equity ETF (DEF) a Strong ETF Right Now?

Smart Beta ETF report for DEF The Invesco Defensive Equity ETF (DEF) made its debut on 12/15/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Growth 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 $369.35 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Growth. DEF is managed by Invesco. DEF seeks to match the performance of the Guggenheim Defensive Equity Index before fees and expenses.The Guggenheim Defensive Equity Index is comprised of approximately 100 stocks selected from the S&P 500 Index based on investment and other screening criteria. The companies selected have potentially superior risk-return profiles during periods of stock market weakness while still offering the potential for gains during periods of market strength.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 DEF are 0.53%, which makes it on par with most peer products in the space.DEF's 12-month trailing dividend yield is 1.18%.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 Healthcare sector - about 24.20% of the portfolio. Industrials and Consumer Discretionary round out the top three.Looking at individual holdings, Danaher Corp (DHR) accounts for about 1.14% of total assets, followed by Thermo Fisher Scientific Inc (TMO) and Copart Inc (CPRT).Its top 10 holdings account for approximately 10.95% of DEF's total assets under management.Performance and RiskThe ETF has added roughly 15.33% so far this year and was up about 25.25% in the last one year (as of 09/22/2021). In the past 52-week period, it has traded between $53.51 and $70.The ETF has a beta of 0.88 and standard deviation of 21.74% for the trailing three-year period, making it a medium risk choice in the space. With about 102 holdings, it effectively diversifies company-specific risk.AlternativesInvesco Defensive Equity ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth ETF has $83.68 billion in assets, Invesco QQQ has $188.90 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Growth.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. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco Defensive Equity ETF (DEF): ETF Research Reports Danaher Corporation (DHR): Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report Copart, Inc. (CPRT): Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 22nd, 2021

4 Dirt Cheap Stocks to Bet on Amid September Market Meltdown

Amid the decline of the benchmarks, investors should bet on discounted stocks like SNDR, NOG, GIII, and ANF for future growth. The number of new COVID-19 cases and the market both displayed a rising trend in the last three months. The job market gained consistently in this period, reflecting a stable economy. In August, particularly, unemployment rates were lower in 15 states and the District of Columbia and stable in 35 states. Nonfarm payroll employment increased in 11 states, decreased in three states, and was unchanged in 36 states and the District — per the data by the U.S. Bureau of Labour Statistics.While many of the market watchers assured us about this sustained bull run despite a massive spread of the more lethal Delta strain, others apprehended a bloodbath round the corner. Eventually, over the past two trading days, the market is deep into the bear territory, displaying the worst run since May.Yesterday, the stock market crashed with benchmarks like the S&P 500 and Dow Jones both down nearly 2%. NASDAQ Composite Index, which gained support last week from the technology bigwigs, declined 2.2% yesterday, shedding more than 300 points.Two Primary Pull-Down FactorsThe intensifying China property market crisis is expected to have played a major role behind the dragging down of the benchmarks. Alliance Bernstein’s Co-Head of Asia Pacific Fixed Income Jenny Zeng recently warned that the highly distressed real estate developer of China, Evergrande (tagged as the world’s most indebted developer with $300 billion of debt at present) is on the edge of default. As quoted by CNBC, she also stated that this collapse will have a ‘domino effect’ on China’s property sector. In the overseas dollar market, these distressed developers combinedly hold a meaningful portion. Consequently, market watchers are worried that the collapse, if it occurs, will have a spillover effect worldwide.Another point that is troubling the investors is the apprehension that amid the job market growth, the COVID-19 induced monetary stimulus might get significantly tapered. During the economic crisis, several stimulus measures were launched mainly in the form of rate cuts and bond purchases.  There are concerns that the Fed and other central banks, which are going to have a two-day meeting starting today, might start winding down stimulus.Market to Revive with OSHA RuleThanks to the ongoing market selloffs, a number of growth stocks have once again moved into the undervalued territory. However, the ongoing extensive rollout of vaccines across the nation, particularly, the latest launch of President Biden’s COVID-19 action plan called “Path Out of the Pandemic” is claimed to boost the financial market rebound.As per the six-pronged, comprehensive national strategy, the Department of Labor’s Occupational Safety and Health Administration (OSHA) will develop a rule that will require all employers with 100 or more employees to ensure that their workforce is fully vaccinated. Any worker who remains unvaccinated will be required to produce a negative test result on at least a weekly basis before coming to work. The OSHA will issue an Emergency Temporary Standard (ETS) to implement this requirement.Once the OSHA rule is implemented, the COVID-19 fear factor is likely to ease further. Market watchers believe that steep rebounds are once again in the cards for the currently beaten-down stocks.Value Investing: The Ideal Strategy NowGiven the grim U.S. stock market scenario, investors may choose some fundamentally strong stocks,which have been currently pushed into the value territory because of the September market meltdown. These beaten-down stocks are currently available at dirt-cheap prices.It has been observed that growth stocks outshine value stocks during economic downturns. However, when the economy picks up pace, post the pandemic-led economic mayhem, value stocks are expected to outperform the market.To narrow down the list, we have selected stocks with a Value Style Score of A or B. Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Listed below are four companies that investors can consider during these trying times.Schneider National SNDR: This Zacks Rank #1 stock with a Value Score of A is a leading transportation and logistics services company. The company is currently being aided by strong performances of the Intermodal and Logistics units. The Intermodal segment is benefiting from yield management and increased volumes, while the Logistics unit is thriving on the back of favorable constructive market conditions and other factors. The stock is currently priced at $22.30. In 2021, the company’s earnings and sales are expected to grow 56.8% and 8.5% respectively.Schneider National, Inc. Price Schneider National, Inc. price | Schneider National, Inc. QuoteNorthern Oil and Gas NOG: The company’s core operations are focused on three leading basins of the United States — the Williston, Permian,and the Appalachian. The company employs a unique non-operating business model, which helps it to keep costs down and increase free cash flow. Prioritizing returns to investors, Northern Oil and Gas recently initiated a 3 cents per share quarterly base dividend, with the first payment to be made in the third quarter.This Zacks Rank #1 stock with a Value Score of A is currently priced at $19 a share. In 2021, the company’s earnings and sales are expected to grow 70.9% and 209.7% respectively.Northern Oil and Gas, Inc. Price Northern Oil and Gas, Inc. price | Northern Oil and Gas, Inc. QuoteG-III Apparel, Ltd. GIII: Solid gains from the company’s assortments and digital business are currently driving results. Although the retail business has been sluggish, management has completed the division’s restructuring and the new model is poised to attain profitability. G-III Apparel’s digital business also continues to exhibit strength.This stock too sports a Zacks Rank #1 and has a Value Score of A. It is currently priced at $28.45 a share. In 2021, the company’s earnings and sales are expected to grow 341.6% and 30.2%, respectively.GIII Apparel Group, LTD. Price GIII Apparel Group, LTD. price | GIII Apparel Group, LTD. QuoteAbercrombie & Fitch Company ANF: The company operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids through a network of approximately 850 stores across North America, Europe, Asia, and the Middle East. Abercrombie is making significant progress in expanding digital and omni-channel capabilities to better engage with consumers. Despite the reopening of stores, the company’s strong digital momentum continued in the last-reported second-quarter 2021.This stock too sports a Zacks Rank #1 and has a Value Score A. It is currently priced at $28.45 a share.In 2021, the company’s earnings and sales are expected to grow 341.6% and 30.2%, respectively.Abercrombie & Fitch Company Price Abercrombie & Fitch Company price | Abercrombie & Fitch Company Quote 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report GIII Apparel Group, LTD. (GIII): Free Stock Analysis Report Northern Oil and Gas, Inc. (NOG): Free Stock Analysis Report Schneider National, Inc. (SNDR): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 21st, 2021

Looking for Value? Why It Might Be Time to Try Petroleo Brasileiro (PBR)

Petroleo Brasileiro (PBR) seems to be a good value pick, as it has decent revenue metrics to back up its earnings, and is seeing solid earnings estimate revisions as well. Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Petroleo Brasileiro S.A. Petrobras PBR.Petroleo Brasileiro in FocusPBR may be an interesting play thanks to its forward PE of 4.16, its P/S ratio of 0.99, and its decent dividend yield of 6.4%. These factors suggest that Petroleo Brasileiro is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that PBR has decent revenue metrics to back up its earnings.Petroleo Brasileiro S.A. Petrobras PE Ratio (TTM) Petroleo Brasileiro S.A. Petrobras pe-ratio-ttm | Petroleo Brasileiro S.A. Petrobras QuoteBut before you think that Petroleo Brasileiro is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 7.9% in the past 30 days, thanks to one upward revision in the past one month compared to none lower.This estimate strength is actually enough to push PBR to a Zacks Rank #3 (Hold), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.So really, Petroleo Brasileiro is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Petroleo Brasileiro S.A. Petrobras (PBR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Why Commercial Metals (CMC) Could Be a Top Value Stock Pick

Commercial Metals (CMC) seems to be a good value pick, as it has decent revenue metrics to back up its earnings, and is seeing solid earnings estimate revisions as well. Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Commercial Metals Company CMC.Commercial Metals in FocusCMC may be an interesting play thanks to its forward PE of 9.2, its P/S ratio of 0.6, and its decent dividend yield of 1.6%. These factors suggest that Commercial Metals is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that CMC has decent revenue metrics to back up its earnings.Commercial Metals Company PE Ratio (TTM) Commercial Metals Company pe-ratio-ttm | Commercial Metals Company QuoteBut before you think that Commercial Metals is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 2.3% in the past 30 days, thanks to one upward revision in the past one month compared to none lower.This estimate strength is actually enough to push CMC to a Zacks Rank #1 (Strong Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank stocks here.So really, Commercial Metals is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Commercial Metals Company (CMC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Why Penske (PAG) is Such a Great Value Stock Pick Right Now

Penske (PAG) seems to be a good value pick, as it has decent revenue metrics to back up its earnings, and is seeing solid earnings estimate revisions as well. Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Penske Automotive Group, Inc. PAG.Penske in FocusPAG may be an interesting play thanks to its forward PE of 7.2 its P/S ratio of 0.3, and its decent dividend yield of 1.9%. These factors suggest that Penske is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that PAG has decent revenue metrics to back up its earnings.Penske Automotive Group, Inc. PE Ratio (TTM) Penske Automotive Group, Inc. pe-ratio-ttm | Penske Automotive Group, Inc. QuoteBut before you think that Penske is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 2.1% in the past 30 days, thanks to one upward revision in the past one month compared to none lower.This estimate strength is actually enough to push PAG to a Zacks Rank #1 (Strong Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank stocks here.So really, Penske is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Penske Automotive Group, Inc. (PAG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Key Highlights From Williams" (WMB) Latest Presentation

Despite being a fundamentally strong midstream operator, The Williams Companies (WMB) has largely underperformed the industry in a year's time. At a recent presentation, The Williams Companies WMB discussed its current business and growth prospects.Here’s a rundown of what the company had to say at the Barclays CEO Energy-Power Conference:The diversified midstream giant has a strong fundamental position in natural gas infrastructure in the United States, handling around 30% of the nation’s total volumes. Williams’ operations include the company’s crown jewel and the nation’s largest and fastest growing natural gas pipeline system, Transco. Williams has a market capitalization of more than $30 billion at a Sep 20 closing stock price of $24.97 per share.The adjusted EPS guidance range provided by the company suggests a roughly 14% CAGR from 2018 through 2021 (at the midpoint). Besides, it expects adjusted EBITDA at a CAGR of approximately 5% over that time. This provided some support to its leverage metrics, with debt to adjusted EBITDA set to come down from 4.80X in 2018 to below 4.20X by the end of this year. During the read-through of the presentation, it was quite clear that Williams’ adjusted EBITDA has increased in line with the volume of natural gas that it transmits and gathers. As it is, the stable fee-based business model allows the company to generate a relatively stable EBITDA hardly affected by the gyrations of commodity prices.Williams, which carries investment grade ratings from the major credit agencies such as the S&P, Moody's and Fitch, is working on a number of new infrastructure projects that are slated to come online over the next few years. This will help the company meet its growth objectives apart from providing long-term cash flow visibility.With an attractive yield of 6.6%, the Tulsa, OK-based company is also a favourite in the dividend investing community. Williams currently pays a quarterly dividend of 41 cents per share. That's after the company increased its payout by 2.5% earlier this year.On top of its improving financial position and focus on shareholder value, the company has strong 2021 guidance. Management predicts adjusted EBITDA to increase 3.8% compared to 2020, while available funds from operations (“AFFO”) is expected to witness a year-over-year rise of 5.6%. This robust AFFO should provide Williams with a strong dividend coverage ratio of 1.9 and assure investors about the safety of the payout.Zacks Rank & Stock PicksNotwithstanding these rafts of positive updates, Williams currently carries a Zacks Rank #4 (Sell) and its shares are only meant for the brave-of-heart. The stock has largely underperformed the industry in a year’s time (+20.8% versus +28.4%). The reason for the unfavourable rank stems from a growing debt burden, which is a concern for investors and restricts its credit profile. The company's debt-to-capitalization as of the end of the second quarter was 62%, not only quite high but also deteriorating from 61.6% three months ago. Image Source: Zacks Investment ResearchEarrings estimates have moved lower too. The Zacks Consensus Estimate for Williams’ 2021 earnings has come down from $1.20 to $1.18 over the past 60 days while next year’s number is off from $1.19 to $1.16.Some better-ranked players in the energy space are Continental Resources CLR, Imperial Oil IMO and Northern Oil and Gas NOG, each presently flaunting a Zacks Rank of 1.You can see the complete list of today’s Zacks #1 Rank stocks here.Continental Resources has an expected earnings growth rate of 436.75% for the current year.Imperial Oil has an expected earnings growth rate of 421.95% for the current year.Northern Oil and Gas has an expected earnings growth rate of 70.88% for the current year. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Williams Companies, Inc. The (WMB): Free Stock Analysis Report Imperial Oil Limited (IMO): Free Stock Analysis Report Continental Resources, Inc. (CLR): Free Stock Analysis Report Northern Oil and Gas, Inc. (NOG): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 21st, 2021

Should ALPS Equal Sector Weight ETF (EQL) Be on Your Investing Radar?

Style Box ETF report for EQL Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the ALPS Equal Sector Weight ETF (EQL), a passively managed exchange traded fund launched on 07/07/2009.The fund is sponsored by Alps. It has amassed assets over $204.04 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.Why Large Cap BlendCompanies that find themselves in the large cap category typically 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 usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.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 0.28%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.33%.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.Looking at individual holdings, Xlktechnology Select Sector Spdr Fund accounts for about 9.34% of total assets, followed by Xlyconsumer Discretionary Select Sector Spdr Fund and Xlffinancial Select Sector Spdr Fund.The top 10 holdings account for about 91.09% of total assets under management.Performance and RiskEQL seeks to match the performance of the NYSE Select Sector Equal Weight Index before fees and expenses. The NYSE Select Sector Equal Weight Index comprises of all active Select Sector SPDR ETFs in an equal weighted portfolio. These sector includes Consumer Discretionary, Consumer Staples, Materials, Energy, Technology, Utilities, Financial, Industrial, Health Care & Real Estate.The ETF return is roughly 20.88% so far this year and is up about 32.65% in the last one year (as of 09/20/2021). In the past 52-week period, it has traded between $74.60 and $104.58.The ETF has a beta of 0.97 and standard deviation of 22.19% for the trailing three-year period, making it a medium risk choice in the space. With about 12 holdings, it has more concentrated exposure than peers.AlternativesALPS Equal Sector Weight 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, EQL is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.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 $301.99 billion in assets, SPDR S&P 500 ETF has $401.21 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. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ALPS Equal Sector Weight ETF (EQL): ETF Research Reports 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. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Is First Trust Capital Strength ETF (FTCS) a Strong ETF Right Now?

Smart Beta ETF report for FTCS Launched on 07/06/2006, the First Trust Capital Strength ETF (FTCS) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.What Are Smart Beta ETFs?Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.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.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.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 & IndexFTCS is managed by First Trust Advisors, and this fund has amassed over $8.42 billion, which makes it one of the largest ETFs in the Style Box - Large Cap Blend. FTCS seeks to match the performance of the The Capital Strength Index before fees and expenses.The Capital Strength Index is an equal-dollar weighted index which provides exposure to well-capitalized companies with strong market positions based on strong balance sheets, high degree of liquidity, ability to generate earnings growth & record financial strength & profit growth.Cost & Other ExpensesWhen considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.Annual operating expenses for FTCS are 0.56%, which makes it on par with most peer products in the space.FTCS's 12-month trailing dividend yield is 1%.Sector Exposure and Top HoldingsMost ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.For FTCS, it has heaviest allocation in the Consumer Staples sector --about 19.80% of the portfolio --while Industrials and Financials round out the top three.Taking into account individual holdings, Agilent Technologies, Inc. (A) accounts for about 2.28% of the fund's total assets, followed by Garmin Ltd. (GRMN) and Keysight Technologies, Inc. (KEYS).The top 10 holdings account for about 21.86% of total assets under management.Performance and RiskYear-to-date, the First Trust Capital Strength ETF has added about 17.34% so far, and is up about 24.35% over the last 12 months (as of 09/20/2021). FTCS has traded between $60.98 and $79.92 in this past 52-week period.The ETF has a beta of 0.89 and standard deviation of 21.06% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.AlternativesFirst Trust Capital Strength ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $301.99 billion in assets, SPDR S&P 500 ETF has $401.21 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.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. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Trust Capital Strength ETF (FTCS): ETF Research Reports Garmin Ltd. (GRMN): Free Stock Analysis Report Agilent Technologies, Inc. (A): Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Keysight Technologies Inc. (KEYS): Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 21st, 2021

Here"s Why Investors Should Retain CNA Financial (CNA) Stock

CNA Financial (CNA) holds the potential to reap benefits from its solid capital position, higher new business, strong rate and favorable acquisition ratio. CNA Financial Corporation CNA is well-poised for growth, driven by higher new businesses, strong rate and higher net earned premiums as well as effective capital deployment.Growth ProjectionsThe Zacks Consensus Estimate for 2021 and 2022 earnings per share is pegged at $3.95 and $4.28, indicating growth of 46.3% and 8.2%, respectively, from the year-ago reported figures. The expected long-term earnings growth rate is pegged at 5%.Estimate RevisionEstimates for 2021 and 2022 have moved up 1.8% and 0.7%, respectively, in the past 60 days, which reflects investors’ optimism.Earnings Surprise HistoryCNA Financial has a decent earnings surprise history. It beat estimates in each of the last four quarters, the average being 10.81%.Zacks Rank & Price PerformanceCNA Financial currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 40.1% compared with the industry’s growth of 21.7%. Image Source: Zacks Investment Research Return on Equity (ROE)The company’s ROE for the trailing 12 months is 9.1%, better than the industry average of 5.7%, reflecting the company’s efficiency in utilizing shareholders’ funds.Business TailwindsCNA Financial remains well-poised to gain from higher new businesses, strong rate, lower net catastrophe losses, improved non-catastrophe current accident year underwriting results, higher net earned premium, which continue to contribute to premium growth across its Specialty, Commercial and International segments.By the virtue of strong investment income and lower level of catastrophe losses, earnings of the property and casualty insurer are likely to improve in the long run.The combined ratio has been improving largely due to lower net catastrophe losses as well as higher underlying underwriting profit.While the expense ratio should continue to gain from higher net earned premiums, lower acquisition costs and a favorable acquisition ratio; the loss ratio should benefit from improved non-catastrophe current accident year underwriting results and lower net catastrophe losses.Given higher income from limited partnerships, investment income is expected to improve despite the current low interest rate environment. The strong limited partnership returns across both P&C and life and group segments were significantly driven by private equity investments.The insurer maintains liquidity in the forms of cash and short-term investments, and has sufficient liquidity holdings to meet obligations and withstand significant business variability. Riding on improved current accident year underwriting profitability and a lower level of paid losses, operating cash flow continues to remain strong.Courtesy of solid financial strength, the insurer engages in capital deployment to enhance its shareholders’ value. Notably, its dividend payments have witnessed a CAGR of 24.1% in the past seven years (2014-2021) and currently yield 3.6%, which is better than the industry average of 0.4%. This makes the stock an attractive pick for yield-seeking investors.Stocks to ConsiderSome better-ranked players in the property and casualty industry are American Financial Group, Inc. AFG, Everest Re Group, Ltd. RE and Cincinnati Financial Corporation CINF, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The bottom line of American Financial surpassed estimates in each of the last four quarters, the average being 52.82%.Everest Re surpassed estimates in two of the last four quarters and missed in the other two, the average earnings surprise being 20.33%.Cincinnati Financial’s earnings surpassed estimates in three of the last four quarters and missed the mark on the remaining occasion, the average surprise being 36.01%. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cincinnati Financial Corporation (CINF): Free Stock Analysis Report Everest Re Group, Ltd. (RE): Free Stock Analysis Report CNA Financial Corporation (CNA): Free Stock Analysis Report American Financial Group, Inc. (AFG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Why Janus Henderson Group plc (JHG) is a Top Dividend Stock for Your Portfolio

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Janus Henderson Group plc (JHG) have what it takes? Let's find out. All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.Janus Henderson Group plc in FocusBased in London, Janus Henderson Group plc (JHG) is in the Finance sector, and so far this year, shares have seen a price change of 32.21%. Currently paying a dividend of $0.38 per share, the company has a dividend yield of 3.54%. In comparison, the Financial - Investment Management industry's yield is 1.69%, while the S&P 500's yield is 1.41%.Taking a look at the company's dividend growth, its current annualized dividend of $1.52 is up 5.6% from last year. In the past five-year period, Janus Henderson Group plc has increased its dividend 2 times on a year-over-year basis for an average annual increase of 10.11%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Right now, Janus Henderson Group plc's payout ratio is 40%, which means it paid out 40% of its trailing 12-month EPS as dividend.JHG is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2021 is $4.06 per share, representing a year-over-year earnings growth rate of 34.88%.Bottom LineInvestors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that JHG is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy). Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Janus Henderson Group plc (JHG): Get Free Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 21st, 2021

Why Lincoln National (LNC) is a Top Dividend Stock for Your Portfolio

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Lincoln National (LNC) have what it takes? Let's find out. All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.Lincoln National in FocusBased in Radnor, Lincoln National (LNC) is in the Finance sector, and so far this year, shares have seen a price change of 34.25%. Currently paying a dividend of $0.42 per share, the company has a dividend yield of 2.49%. In comparison, the Insurance - Life Insurance industry's yield is 0.44%, while the S&P 500's yield is 1.41%.Taking a look at the company's dividend growth, its current annualized dividend of $1.68 is up 5% from last year. In the past five-year period, Lincoln National has increased its dividend 5 times on a year-over-year basis for an average annual increase of 11.42%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Right now, Lincoln National's payout ratio is 28%, which means it paid out 28% of its trailing 12-month EPS as dividend.LNC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2021 is $10.32 per share, representing a year-over-year earnings growth rate of 131.91%.Bottom LineInvestors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that LNC is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy). Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lincoln National Corporation (LNC): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 21st, 2021

This is Why NexPoint Residential Trust Inc. (NXRT) is a Great Dividend Stock

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does NexPoint Residential Trust Inc. (NXRT) have what it takes? Let's find out. Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.NexPoint Residential Trust Inc. In FocusNexPoint Residential Trust Inc. (NXRT) is headquartered in Dallas, and is in the Finance sector. The stock has seen a price change of 46.87% since the start of the year. Currently paying a dividend of $0.34 per share, the company has a dividend yield of 2.2%. In comparison, the REIT and Equity Trust - Residential industry's yield is 2.81%, while the S&P 500's yield is 1.41%.Taking a look at the company's dividend growth, its current annualized dividend of $1.37 is up 7.1% from last year. In the past five-year period, NexPoint Residential Trust Inc. has increased its dividend 5 times on a year-over-year basis for an average annual increase of 11.57%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. NexPoint Residential Trust Inc.'s current payout ratio is 54%. This means it paid out 54% of its trailing 12-month EPS as dividend.NXRT is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2021 is $2.64 per share, representing a year-over-year earnings growth rate of 6.88%.Bottom LineInvestors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, NXRT is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold). Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NexPoint Residential Trust, Inc. (NXRT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Are You Looking for a High-Growth Dividend Stock? 3M (MMM) Could Be a Great Choice

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does 3M (MMM) have what it takes? Let's find out. Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.3M in FocusBased in St Paul, 3M (MMM) is in the Conglomerates sector, and so far this year, shares have seen a price change of 3.83%. The maker of Post-it notes, industrial coatings and ceramics is paying out a dividend of $1.48 per share at the moment, with a dividend yield of 3.26% compared to the Diversified Operations industry's yield of 0.31% and the S&P 500's yield of 1.41%.Looking at dividend growth, the company's current annualized dividend of $5.92 is up 0.7% from last year. In the past five-year period, 3M has increased its dividend 5 times on a year-over-year basis for an average annual increase of 6.85%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, 3M's payout ratio is 58%, which means it paid out 58% of its trailing 12-month EPS as dividend.MMM is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2021 is $10.11 per share, with earnings expected to increase 15.68% from the year ago period.Bottom LineInvestors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, MMM is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold). Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report 3M Company (MMM): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 21st, 2021

IDACORP (IDA) Rewards Shareholders With 5.6% Dividend Hike

IDACORP (IDA) raises quarterly dividend by 5.6%, and aims for a payout ratio between 60% and 70%. IDACORP Inc. IDA announced that the board of directors has approved a 5.6% increase in the quarterly dividend rate. The revised quarterly dividend will be 75 cents up from the previous quarterly rate of 71 cents. The company’s new annualized dividend rate is $3 and the current dividend yield is 2.9%, better than the Zacks S&P 500 composite’s 1.4%.IDACORP’s management has been annually raising the dividend rate and it belongs to an exclusive group of companies that have raised the dividend rate every year over the last decade. The board of directors approved a dividend increase this month, leading to a 150% total increase in annualized dividend over the aforesaid period.For the long term, the company’s management aims at upwardly revising the dividend rate by 5% or more. This would keep IDACORP near the upper end of the current target payout ratio between 60% and 70%.Can IDACORP Sustain Dividend Hikes?IDACORP’s regulated electric operations in Idaho generate a relatively stable earnings stream. Ongoing economic improvements in its service territories have helped the company in expanding the customer base. These factors are positively impacting its operating income.It projects capital expenditure to be $2 billion in the 2021-2025 time period. Owing to systematic investments for strengthening the generation portfolio, Idaho Power Hydroelectric Generation will be able to cater to the rising demand of the expanding customer base.The company has undertaken initiatives to enhance financial strength and improve the core business. An ongoing increase in the customer base results in an improvement in operating income and its steady performance paves the way for further increase in the annual dividend rate.Price MovementIn the past 12 months, IDACORP’s shares have outperformed the industry it belongs to.Image Source: Zacks Investment ResearchZacks Rank & Key PicksIDACORP currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry include Exelon Corporation EXC, Otter Tail Corporation OTTR and Black Hills Corporation BKH. While Exelon and Otter Tail sport a Zacks Rank #1 (Strong Buy), Black Hills has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Exelon, Otter Tail, and Black Hills have a long-term (three to five years) earnings growth rate of 2.99%, 4.7%, and 5.09%, respectively.The Zacks Consensus Estimate for 2021 earnings for Exelon and Otter Tail has increased 1.07% and 39.2%, respectively, in the past 60 days. Black Hills delivered an average surprise of 5.65% in the last four quarters. Its Zacks Consensus Estimate for 2021 earnings has been unchanged in the past 60 days. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exelon Corporation (EXC): Free Stock Analysis Report IDACORP, Inc. (IDA): Free Stock Analysis Report Black Hills Corporation (BKH): Free Stock Analysis Report Otter Tail Corporation (OTTR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Should You Invest in the Fidelity MSCI Consumer Discretionary Index ETF (FDIS)?

Sector ETF report for FDIS Looking for broad exposure to the Consumer Discretionary - Broad segment of the equity market? You should consider the Fidelity MSCI Consumer Discretionary Index ETF (FDIS), a passively managed exchange traded fund launched on 10/21/2013.While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.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. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.Index DetailsThe fund is sponsored by Fidelity. It has amassed assets over $1.58 billion, making it one of the larger ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. FDIS seeks to match the performance of the MSCI USA IMI Consumer Discretionary Index before fees and expenses.MSCI USA IMI Consumer Discretionary Index represents the performance of the consumer discretionary sector in the U.S. equity market.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 0.08%, making it the least expensive product in the space.It has a 12-month trailing dividend yield of 0.55%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Consumer Discretionary sector--about 98.40% of the portfolio.Looking at individual holdings, Amazon.com Inc Common Stock Usd.01 (AMZN) accounts for about 23.97% of total assets, followed by Tesla Inc Common Stock Usd.001 (TSLA) and Home Depot Inc Common Stock Usd.05 (HD).The top 10 holdings account for about 56.69% of total assets under management.Performance and RiskSo far this year, FDIS has added about 14.96%, and it's up approximately 34.76% in the last one year (as of 09/21/2021). During this past 52-week period, the fund has traded between $59.50 and $83.37.The ETF has a beta of 1.25 and standard deviation of 24.94% for the trailing three-year period, making it a medium risk choice in the space. With about 302 holdings, it effectively diversifies company-specific risk.AlternativesFidelity MSCI Consumer Discretionary Index 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, FDIS is an excellent option for investors seeking exposure to the Consumer Discretionary ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.Vanguard Consumer Discretionary ETF (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $6.55 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $19.49 billion. VCR has an expense ratio of 0.10% and XLY 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. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fidelity MSCI Consumer Discretionary Index ETF (FDIS): ETF Research Reports Amazon.com, Inc. (AMZN): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Is First Trust STOXX European Select Dividend ETF (FDD) a Strong ETF Right Now?

Smart Beta ETF report for FDD Designed to provide broad exposure to the European Equity ETFs category of the market, the First Trust STOXX European Select Dividend ETF (FDD) is a smart beta exchange traded fund launched on 08/27/2007.What Are Smart Beta ETFs?The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.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 $287.84 million, this makes it one of the average sized ETFs in the European Equity ETFs. FDD is managed by First Trust Advisors. Before fees and expenses, this particular fund seeks to match the performance of the STOXX Europe Select Dividend 30 Index.The STOXX Europe Select Dividend 30 Index consists of 30 high dividend-yielding securities selected from the STOXX Europe 600 Index.Cost & Other ExpensesInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.Annual operating expenses for FDD are 0.57%, which makes it on par with most peer products in the space.It's 12-month trailing dividend yield comes in at 3.80%.Sector Exposure and Top HoldingsETFs offer 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.Looking at individual holdings, Glaxosmithkline Plc (GSK.LN) accounts for about 6.17% of total assets, followed by Sse Plc (SSE.LN) and Legal & General Group Plc (LGEN.LN).The top 10 holdings account for about 45.1% of total assets under management.Performance and RiskSo far this year, FDD has added about 10.57%, and is up roughly 35.36% in the last one year (as of 09/21/2021). During this past 52-week period, the fund has traded between $9.81 and $15.54.The fund has a beta of 0.99 and standard deviation of 25.52% for the trailing three-year period, which makes FDD a medium risk choice in this particular space. With about 31 holdings, it has more concentrated exposure than peers.AlternativesFirst Trust STOXX European Select Dividend ETF is a reasonable option for investors seeking to outperform the European Equity ETFs segment of the market. However, there are other ETFs in the space which investors could consider.JPMorgan BetaBuilders Europe ETF (BBEU) tracks MORNINGSTAR DEV EUROPE TARGET MKT EXP ID and the Vanguard FTSE Europe ETF (VGK) tracks FTSE Developed Europe All Cap Index. JPMorgan BetaBuilders Europe ETF has $8.72 billion in assets, Vanguard FTSE Europe ETF has $20.38 billion. BBEU has an expense ratio of 0.09% and VGK charges 0.08%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the European Equity 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. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Trust STOXX European Select Dividend ETF (FDD): ETF Research Reports Vanguard FTSE Europe ETF (VGK): ETF Research Reports JPMorgan BetaBuilders Europe ETF (BBEU): ETF Research Reports To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 21st, 2021