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Goldman Raises Year-End Oil Price Target To $90

Goldman Raises Year-End Oil Price Target To $90 Just days after Goldman's head commodity analyst Jeff Currie told Bloomberg TV that the bank anticipates oil spiking to $90 if the winter is colder than usual, on Sunday afternoon Goldman went ahead and made that its base case and in a note from energy strategist Damien Courvalin, he writes that with Brent prices reaching new highs since October 2018, the bank now forecasts that this rally will continue, "with our year-end Brent forecast of $90/bbl vs. $80/bbl previously." What tipped the scales is that while Goldman has long held a bullish oil view, "the current global oil supply-demand deficit is larger than we expected, with the recovery in global demand from the Delta impact even faster than our above consensus forecast and with global supply remaining short of our below consensus forecasts." Among the supply factors cited by Goldman is hurricane Ida - the "most bullish hurricane in US history" - which more than offset the ramp-up in OPEC+ production since July with non-OPEC+ non-shale production continuing to disappoint. Meanwhile, as noted above, on the demand side Goldman cited low hospitalization rates which are leading more countries to re-open, including to international travel in particularly COVID-averse countries in Asia. Finally, from a seasonal standpoint, Courvalin sees winter demand risks as "further now squarely skewed to the upside" as the global gas shortage will increase oil fired power generation. From a fundamental standpoint, the current c.4.5 mb/d observable inventory draws are the largest on record, including for global SPRs and oil on water, and follow the longest deficit on record, started in June 2020. For the oil bears, Goldman does not see this deficit as reversing in coming months as its scale will overwhelm both the willingness and ability for OPEC+ to ramp up, with the shale supply response just starting. This sets the stage for inventories to fall to their lowest level since 2013 by year-end (after adjusting for pipeline fill), supporting further backwardation in the oil forward curve where positioning remains low. But what about a production response? While Goldman does expect short-cycle production to respond by 2022 at the bank's higher price forecast, from core-OPEC, Russia and shale, this according to Goldman, will only lay bare the structural nature of the oil market repricing. To be sure, there will likely be a time to be tactically bearish in 2022, especially if a US-Iran deal is eventually reached. The bank's base-case assumption is for such an agreement to be reached in April, leading the bank to then trim its price target to an $80/bbl price forecast in 2Q22-4Q22 (vs. its 4Q21-1Q22 $85/bbl quarterly average forecast). This would, however, remain a tactical call and a likely timespread trade according to Courvalin, with long-dated oil prices poised to reset higher from current levels, especially as the hedging momentum shifts from US producer selling to airline buying (a move which Goldman says to position for with a long Dec-22 Brent and short Dec-22 Brent put trade recommendations).   Meanwhile, the lack of long-cycle capex response - here you can thank the green crazy sweeping the world - the quickly diminishing OPEC spare capacity (Goldman expects normalization by early 2022), the inability for shale producers to sustain production growth (given their low reinvestment rate targets) and oil service and carbon cost inflation will all instead point to the need for sustainably higher long-dated oil prices. Remarkably, Goldman now expects the market to return to a structural deficit by 2H23, which leads it to raise its 2023 oil price forecast from $65/bbl to $85/bbl, and the mid-cycle valuation oil price used by Goldman's equity analysts to $70/bbl. Translation: expect a slew of price hikes on energy stocks in the coming days from Goldman. Finally, where could Goldman's forecast - which would infuriate the white house as gasoline prices are about to explode higher - be wrong? For what it's worth, the bank sees the greatest risk on the timeline of its bullish view. On the demand side, it would take a potentially new variant that renders vaccine ineffective. Beyond that, however, the bank expects limited downside risk from China, with its economists not expecting a hard landing and with our demand growth forecast driven by DMs and other EMs instead. This leaves near-term risks having to come from the supply side, most notably OPEC+, which next meets on October 4. And while an aggressively faster ramp-up in production by year-end would soften (but not derail) our projected deficit, it would only further delay the shale rebound, which would reinforce the structural nature of the next rally given binding under-investment in oil services by 2023. In addition, a large ramp-up in OPEC+ production would simply fast-forward the decline in global spare capacity to historically low levels, replacing a cyclical tight market with a structural one. The full report as usual available to pro subscribers in the usual place. Tyler Durden Sun, 09/26/2021 - 20:36.....»»

Category: dealsSource: nytSep 26th, 2021

Transcript: Hubert Joly

       The transcript from this week’s, MiB: Hubert Joly, Best Buy CEO, is below. You can stream and download our full conversation, including the podcast extras on iTunes, Spotify, Google, Bloomberg, and Acast. All of our earlier podcasts on your favorite pod hosts can be found here.   ~~~   BARRY RITHOLTZ,… Read More The post Transcript: Hubert Joly appeared first on The Big Picture.        The transcript from this week’s, MiB: Hubert Joly, Best Buy CEO, is below. You can stream and download our full conversation, including the podcast extras on iTunes, Spotify, Google, Bloomberg, and Acast. All of our earlier podcasts on your favorite pod hosts can be found here.   ~~~   BARRY RITHOLTZ, HOST, MASTERS IN BUSINESS: This week on the podcast, I have an extra special guest. Hubert Joly is the man who helped turn around Best Buy when they were floundering about a decade ago. The stock has since returned 10X from when he joined as Chairman and Chief Executive Officer. He is the author of a fascinating new book, “The Heart of Business: Leadership Principles for the Next Era of Capitalism.” He’s really a fascinating guy, has an amazing background, both as a consultant for McKinsey and being on a number of different boards and running a number of different companies. Everybody who’s looked at his work always put him amongst the best CEOs, top 100 this, top 30 that, really just a tremendous, tremendous track record. And I had a fascinating time speaking with him. I think if you’re at all interested in anything involving leadership or the next era of capitalism or why the old-school Neutron Jack approach to just firing everybody and cutting costs away to restore profitability no longer works, you’re going to find this to be a fascinating conversation. So, with no further ado, my interview with Hubert Joly. VOICEOVER: This is Masters in Business with Barry Ritholtz on Bloomberg Radio. RITHOLTZ: This week, my special guest is Hubert Joly. He is the former Chairman and Chief Executive Officer of Best Buy. He is currently the Senior Lecturer on Business at Harvard Business School. He is on the boards of directors at Johnson & Johnson and Ralph Lauren and has been named one of the top 100 CEOs by Harvard Business Review, one of the top 30 CEOs by Barron’s and one of the top 10 CEOs to work for in the U.S. by Glassdoor. Hubert Joly, welcome to Bloomberg. HUBERT JOLY, Senior Lecturer, Harvard Business School: Well, thank you, Barry, very much looking forward to our conversation. RITHOLTZ: So, let’s start with a little bit of your background, you’ve been the CEO of three major companies. Tell us about how that came about. Take us to the beginning or early days of your career. JOLY: Yes, Barry. I started my career with McKinsey & Company in France and then also in the U.S. Essentially, I didn’t know what I wanted to do. So, that, I thought, it’d be a great training ground and I ending up staying a dozen years at the firm, done a great deal and had wonderful opportunities to lead great companies. At first, I left McKinsey to lead a client that was EDS, Electronic Data Systems in France and I ended up doing a number of turnaround and transformations of companies in industry sectors that were challenged by technology. So, in videogames, in travel, and then, of course, ended up with Best Buy. And I’ve ended up working a variety of industry sectors and those specializations there and every move was a move that was based on — it was – there was somebody with whom I had developed relationship that played a critical role. And so, for example, when I left Vivendi Universal to become the CEO of Carlson Wagonlit Travel, the CEO of (inaudible), which was one of the two shareholders, had been a client of mine and where we have stayed friends. So, Barry, one of the key lessons is that try to minimize the number of people you annoy or irritate along the way and try to focus on doing a great job when you are and then I hope that God provides in the end, which is, I think, the lesson for me of my career. RITHOLTZ: So, I want to spend more time talking about your career. But I have to ask, how did you find yourself moving from France to the United States, what led to that and what was that transition like? Because every time I’m in Paris, I always end up saying to myself, God, I could live here. JOLY: Yes. Thank you for that, Barry. So, the first time I moved to the U.S. in 1985, I was with McKinsey & Company. I’d gone to school in France and there had been discussion of should I do an MBA in the U.S. and after a while, McKinsey said no, you really don’t need to do that. But if you want to spend time in the U.S., we’ll send you to one of our offices. So, I ended up in the San Francisco office, quite the years where the minors were at the top of their game, right? So, that — it’s quite fascinating. And then the last time I moved to the U.S. was in ’08, 2008, when I became the CEO of Carlson Companies. So, I moved there from Paris, France to Minneapolis, Minnesota. And I love France. I think it’s a great country. I love the U.S. What I love about the U.S. is that since Jefferson, we’ve been optimistic. It’s been the dream of a better life and it’s this optimism. Let me tell you, in France, you talk about a problem that has never been solved. People will say, well, who are you to talk about it. Nobody has been able to solve it, right. But in the U.S., if a problem has never been solved, immediately, your friends is like, this is interesting, let’s see whether we can solve it. I love this optimism in this great country and I’m now a dual citizen, Barry. RITHOLTZ: Very — really, really interesting. So, let’s talk a little bit about how one becomes a good CEO. Is it effectively on-the-job training or is it a function of your experience and ability that makes you a great leader? JOLY: Yes. There’s the myth that you’re born a leader. I think that every leader was born, of course, but none of us were born leaders and I think it’s a learning journey. And for me, it’s been — yes, I’m learning by doing, learning on the job, learning from great mentors. One thing I learned the most about — with McKinsey was watching my client’s lead and I learned so much from a number of them. Learning from colleagues, at Best Buy, I learned so much from the frontliners and some of our great executives and then our coach. So, let’s slow down here. Can we agree, Barry, that exactly 100% of the top 100 tennis players in the world have a coach. RITHOLTZ: Sure. JOLY: I think the same is true for all of the NFL teams, all of the Champions League teams. What about us executives, right? And so, it’s interesting that now, for CEOs and senior executives have coaches much more popular. But 10 or 15 years ago, not so much. And I’ve benefited enormously, my first coach was the inimitable Marshall Goldsmith. I’ve learned a ton from him. He helped me deal with feedback and focus on getting better and asking for advice. And without Marshall, I would not be – it is infomercial before and after picture, it’s most improved. RITHOLTZ: Marshall Goldsmith was where? Was that at McKinsey or? JOLY: It was — the first time I worked with Marshall was in 2009. I had just became the CEO of Carlson Companies and my head of HR, Elizabeth Bastoni, told me, would you like to work with a coach and my first reaction was, am I doing anything wrong, is everything wrong with this? He said, no, no. I know Marshall, he helps in a great deal get better. His clients are – were, at that time, Alan Mullally of Ford and Jim Kim of the World Bank. I said, that’s cool, I want to be a member of that club. And Marshall was so helpful because when I was getting feedback, you do a 360 and you hear the goods and then you hear the other parts and my reaction initially was, what’s wrong with them, right? What are they talking about? And Marshall helped me — and the way he helped was — so, I did the 360. He gave me first all of the good things that people have said and says, spend the time to swallow this, digest this. And then the next day, he gave me the other stuff and he said, here’s the scoop, you don’t need to do anything with it, right? There’s no god that says that you need to get better at any of these things but you can — but you get to decide what you want to work on and get better at, right? And think about, so, here’s a question that we could ask, right, think about things that you’d like to get better at, right, and if you cannot think about anything, try humility, right, as a potential area. And then what Marshall made me do is talk to my team and said, thank you very much for all of the feedback you’ve given me and then based on what you said, I’m going to start to work on three things, number one, number two, number three, and I’m going to follow up with each of you to ask you for advice on how I can get better at these three things and then a few months from now, I’ll follow up to see how I’m doing. Now, believe me, Barry, first time I did this, this was excruciating pain having to admit to my team that I was not perfect. They knew it. They knew I was not perfect but having to say it out loud and then I wanted to get better at something. But this getting better at something makes it very positive. And then — so, later on, when I joined Best Buy, I repeated that signaling to every one of the executives that it was OK to want to get better at something. And so, later on, everybody at Best Buy had a coach and we were all helping out each other on getting better at our job, which is what I think you need to do. So, coaching — executive coaching plays a key role in my life. RITHOLTZ: Very interesting. And I recall seeing Marshall Goldsmith’s name on a book, “What Got You Here Won’t Get You There” and a quick Google search shows me that like you, he also is a professor. He teaches at Dartmouth’s Tuck School of Business and has quite an impressive CV. But I want to stick with the concept of coaching and mentors, what did you learn at McKinsey who helped you when you were there sort of develop into the CEO that you are today? JOLY: Yes. So, there was — for me, there were two phases, Barry, at McKinsey that we serve, before the partnership and then the partnership. So, in my first say six years as an associate and then a manager, I learned a lot about problem-solving, communications, serving functional matters and so forth. So, I could say I learned a bunch of technical skills. But when I became a partner, the opportunity I got was sit down next to the CEO of the clients, watch them do their thing and listen and learn from them and that makes me — I got a great deal, right, because they were paying us and I was learning from them, right? Couldn’t get a better deal than that. And so, I will always remember, there was a client in, Jean-Marie Descarpentries was the CEO of a computer company Honeywell Bull and this is the guy who told me that the purpose of the company is not to make money, right? It’s an outcome, right? In business, you have three imperatives. You have the people imperative, which are the right teams. We have the business imperatives, which are the customers or clients and then great products and services. And then there’s a financial imperative and, of course, you have to understand that excellence on the financial imperative is the result of excellence on the business imperative, which itself is the result of excellence on the people imperative. So, it’s people, business, finance and finance is an outcome. And by the way, it’s not the ultimate goal because if you think about a company as a human organization, a bunch of people working together, they’re probably in there to create something in the world, right, and we can dig into this but that was — and believe me that was 30 years before the BRT statement of 2019 that we said we need (ph) in August the second anniversary. And so then, it was — the practical implications around this is that when you do your monthly review with your team, start with people and organization. Don’t start with financial results. If you should start with financial result, you’re going to spend your entire time on financials and you want to understand what’s driving these results whereas if you start with people and organization, you have a chance to spend time on that, then business, customers, products and then the CFO will make sure that you’ll spend enough time on the financial results. So, for me, that was a game changer and I applied this throughout my career and you could say whether it was in videogames or in travel or hospitality or in Best Buy, this focus on people first and treating profit as an outcome was a big driver performance. And this has not smoked anything illegal when I say this, Barry. As you know, the share price of Best Buy went from beyond low, it was $11. Recently, it’s been between 110 and 120. So, time spent in nine years, that’s not bad. Maybe you could have done better, Barry, but it’s OK, I think. RITHOLTZ: No. I don’t think I could have done better than 10X and PES no longer illegal in New York. So, you could smoke whatever you like. We’re going to — by the way, those three steps that you just mentioned are right from the book and we’re going to talk a little more about the book in a few minutes. But before we get to that, I have one last question to ask you which has to do with the fact that Best Buy, you mentioned it’s up 10X, it’s a publicly-traded company. Before you were at Best Buy, you are also at a giant company but it was privately held. Tell us a little bit about what that transition was like having to answer to shareholders and Wall Street. How did you manage that? Very different experience from everybody I’ve spoken with over the years. JOLY: Yes. Barry, so, I’ve worked in a public company, Best Buy. I’ve worked in a family-owned company, this was Carlson Companies. I’ve worked in a partially private equity-owned company, Carlson Wagonlit Travel, one equity partner of JPMorgan with 45 different shareholders and frankly, I think it’s pretty much all the same. You have shareholders whether they are large entities like Fidelity or Wellington or it’s a private equity player or it’s a family, they have expectations and needs and, by the way, all of them are human beings, right, by the way and that’s focused on the high-intensity trading that all the longs and all the shorts, they are human beings, and I’ve had – even though I say profit is an outcome and is not the ultimate goal, shareholders, even in stakeholder capitalism, are very important stakeholders. They’re taking care of our retirement. So, we love them for that. And so, when I was a CEO of Best Buy, I so enjoyed spending time with our shareholders sharing with them what we’re doing, answering their questions, they’re smart. It was always taking things away and the key was pay attention, listen and then pay attention to the say/do ratio. Best Buy had lost its credibility because they were saying a lot but not doing much, right? So, with my wonderful CFO sharing the column with me, we’re going to say less and do more and that’s how we’re going to build our credibility and we would be very transparent, share our situation, the opportunities we saw, what we’re going to do, and then we update them in our progress. And so, I really enjoy the competition. But in many ways, Barry, I think public, private equity or a family is largely the same. It’s people, we have to respect them and take care of their needs. RITHOLTZ: My extra special guest this week is Hubert Joly. He is the former Chairman and Chief Executive at Best Buy, a company that he helped turn around over the course of his tenure there. Let’s talk a little bit about that. If you would have asked me a decade ago what the future look like for Best Buy, I would have said they were toast that Amazon was going to eat their lunch and they were heading to the garbage pile. Tell us what the key was to turning the company around so successfully. JOLY: You’re, right. Everybody thought we’re going to die. There was zero buy recommendation on the start in 2012 and what I found as I was examining the opportunity to become the CEO because my first reaction when I was approached was this is crazy, right? This is the same reaction as you described. But what I found is that there was nothing wrong with the markets or the business outside. All of the problems were self-inflicted. In fact, the customers needed Best Buy because we needed a place where to see and touch and feel the products and ask questions. And the vendors ultimately needed Best Buy. They needed a place where to showcase their products, the fruit of their billions of dollars of R&D investments. The problems were self-inflicted. Prices were not competitive. The online shopping experience was terrible. Speed of shipping was bad. The customer experiences in the stores have deteriorated. The cost structure was bloated and, and, and. That’s great news because if a problem is self-inflicted, you can fix it. RITHOLTZ: Right. JOLY: And so the first phase was all about fixing what was broken and the advice I had been getting, Barry, was cut, cut, cut. We’re going to have to close stores, cut headcounts. We did the opposite. All of the stores were profitable. So, frankly, there was no point of closing stores in a significant fashion. RITHOLTZ: Right. JOLY: It was very — the first phase was a very people centric approach, listening to the frontliners. My first week on the job, I spent it in the store in St. Cloud, Minnesota. I think in France, we would say St. Cloud but over there it’s St. Cloud so there you go. And really listening to the frontliners, they had all of the answers about what needed to be done. And so, my job was pretty easy, it was do what they have to — what they said we needed to do like fix the website, make sure the prices were competitive and so forth. The second on the people centric approach, build the right team at the top and then instead of focusing on headcount reduction, focus on growing the top line by meeting the customer needs and fixing what was broken in the customer experience and treating headcount reduction really as a last resort. And then focus on mobilizing the team on what we need to do for the customers. That sounds soft but that was our opportunity and that’s what we need to do in the first two or three or four years. And then once we have saved the company, it was about how do we — where do we go from here, how — what kind of company do we want to build for the future. And that’s why we focused on designing our purpose as a company. We said we’re actually not a consumer electronics retailer. We are a company in the business of enriching life through technology by addressing key human needs, which we’ll talk more about this. But this was transported because it’s expanded our addressable market and have to mobilize everybody. And as a company, we have to work on making this come to life in all of our activities and really creating an environment where – I think the summary at that time was we unleashed human magic. We had a hundred thousand people plus, I think spring in their step, connecting would drive them in life with their job and doing magical things for customers. And frankly, Barry, I learned so much along the way and, again, all of this sound soft but go back to — we went from $11 to 110 or 120. That was the key. RITHOLTZ: To say the very least. So, let’s talk a little bit about what you guys had done in the physical stores. The big threat to Best Buy was people showrooming, meaning showing up to look it up products and then buying it for a little cheaper at Amazon. How did you — and this is the line from the book, quote, “How did you kill showrooming and turned it into showcasing?” unquote. JOLY: Yes. So, everybody was talking about showrooming at that time. The frequenct was not that high actually but of course, it was incredibly frustrating for the blue shirt associates in our store to spend time with you, Barry, we love you but we spent 30 minutes with you answering all of your questions about the TV and then you buy it online. So, after 30 days at the company, we actually decided that we were going to take price off the table by lining up places with Amazon and giving the blue shirts the authority on the spot to match Amazon prices. And so, I took price off the table … RITHOLTZ: Right. JOLY: … and the customers, once they were in our stores, they were ours to lose. RITHOLTZ: Right. When you want to drive home with the TV in the back of the car instead of waiting a couple of days from it to come from Amazon, immediate gratification has to be a huge benefit you guys have as the physical store. JOLY: Exactly. And then, yes, of course, the (inaudible) but you’re still going to die because your cost structure is too high, it’s higher than Amazon or Walmart. So, we did take $2 billion of cost out. RITHOLTZ: Wow. JOLY: But the way we won in the end was we just had aha moment of, as I said, showcasing. If you are a Samsung or HP or Amazon and Google products, you need a place where to showcase your products, right, because you spend billions of dollars on R&D and if it’s just I’d say vignette on a website or box on a shelf, you’re not going to excite the customers. RITHOLTZ: Right. JOLY: You need a place where to showcase your products. And so, we did deals. The first one was with Samsung where we had a meeting in December of 2012, Barry. J.K. Shin, the then CEO of Samsung Electronics came to visit us in Minneapolis in December of 2012 and over dinner, we did a deal where in a matter of months, you would have 1,000 Samsung stores within our stores where you could showcase these products. It was just across the aisle from — we already had an Apple store within the store and it was good for the customers because they could see the products, they could compare with Apple. It was good for Samsung, right, because the alternative for them first was to build 1,000 stores in the U.S., it takes time, it’s difficult, and. of course, we have this great location and great traffic. And good for us because it was part of our OPM strategy, other people’s money strategy, right, because there were some good economics for us. And so, that allowed us to offset the cost advantage in Walmart or Amazon we have and then over time, we did deal with all of the world’s foremost almost tech companies, including Amazon for crying out loud, and that was the game changer. And we look — if you look at our stores today, they are shiny because — we have all of these shiny objects and you can see and experience all of these products. So, that was really a game changer. RITHOLTZ: So, let’s talk a little bit about both Samsung and Amazon. First, I’m always surprised that people don’t realize what a giant product company Samsung is. It’s not just phones but it’s phones, its TVs, it’s washers, dryers. I mean, Samsung basically anything in your house is a product that Samsung makes and not just entry-level washer, dryers or refrigerators. I think was it last year or two years ago, they bought Dacor, which is like a subzero, high-end manufacturer of kitchen appliances. So, when you set up the store within a store with Samsung, tell us about what that did and how did that impact Samsung’s sales at Best Buys? JOLY: Sure. Yes. I mean, you’re right to highlight this great company. The first deal we did with them was focused on phones and tablets and cameras. So, in a matter of months, they had these stores within our stores and it really put them on the map. It is I think — if you go back to the ’90s, Samsung was not the same company. They were really low end and the chairman at that time, so, the father of the current — of J.Y. Lee now, came to the U.S. and said, at some point, I want Best Buy to carry us and it would be the ultimate goal. And now, they’re one of our top five vendors, probably better than top five. And so, it really gives them the physical presence and to prove that it’s worth for them was then we did the same in the TV department and then in the appliance department. So, it’s been a series of wins for them. And once we have announced the deal with Samsung, other — we had similar conversation with Microsoft, Steve Ballmer, we had a conversation at CES and then two months later, we did the Microsoft stores within Best Buy and then it went on and on. And Tim Cook at Apple told me that he didn’t really like what we were doing, he understood it but he didn’t really like it and Apple has been a very important vendor to Best Buy. So, what we decided to do with them is do more. And so, it was stronger partnership. So, Best Buy is not simply carrying products and partners with the world’s foremost tech companies and with some of these companies and partners on product development, new product introduction and because there’s so much innovation that drives the business, it’s a critical role we play. We also partner in service, Best Buy sells AppleCare, an authorized Apple service provider. So, these partnerships really changed the game. And in the U.S., I think it’s not arrogant to say that Best Buy is the only player which these large companies can do these meaningful deals. So, it really changed the trajectory. RITHOLTZ: I have to ask you about the Geek Squad. Whose idea was that and how significant is it to the company? JOLY: Sure. Robert Stephens was a student at the University of Minnesota, was the — is the founder of Geek Squad in 1994. Very creative guy. The name itself is good — is cool, the logo and so forth, and then Best Buy acquired the company in 2002 when it was quite — still quite small and now, of course, it’s become really big, it’s 20,000 employees. And it’s the key elements of Best Buy’s differentiation because Best Buy is not just in the business of selling you something. We’re — our target customer — people who are excited about technology need technology but also need help with it. And so, with the Geek Squad and the blue shirts, we’re able to advise you when you’re looking at what to do but also help you implement in your home, helps you figure out if something is not working across, right? Of course, let’s take an example. If Netflix is not working tonight at your house, Barry, is it because of Netflix, is it piping to the home, is it the router, is it the streaming device, is it the TV, honey, what is it, right? And we’re honey, right, and we’re going to be able to help you across all of these vendors. And so, that’s a big differentiator for the company. So, really genius. RITHOLTZ: My extra special guest this week is Hubert Joly. His new book is called, “The Heart of Business.” Let’s talk a little bit about writing a book which is quite an endeavor. What motivated you to sit down and say, sure, I’ll write a book? JOLY: Well, this is not a traditional field book. So, this is not a memoir. This is not about the story of the Best Buy turnaround per se. It was reflection, Barry, and it’s really been something I’ve been thinking about for the last 30 years that so much of what I’ve learned at business school, what McKinsey or the early years of my career is wrong, dated or incomplete. And when sit back today or in the last couple of years, even though I’m the eternal (ph) optimist, I have to say it out loud, the world as we know it is not working, right? We’re in this multifaceted crisis, you have, of course, the health crisis and economic crisis, suicidal issues, racial issues, environmental problems, geopolitical tension, it simply is not working. And what’s the definition of madness, right? It’s doing the same thing and hoping for different outcome. And for me, on my FBI’s most wanted list, is two people. One is Milton Friedman, shareholder primacy, and two is Bob McNamara, the former Secretary of Defense and executive at Ford who’s the — almost the inventor top-down scientific management. These approaches don’t work and I think they got us in trouble and there’s a growing number of us, right, and certainly, I’m not the only one, who believe that there’s a better formula that business can be a force for good that — it’s the idea that business should pursue a noble purpose and take care of all of the stakeholders that you put people at the center. You embrace all stakeholders in some kind of declaration of future dependents. There’s no need to choose between employees and customers and shareholders. It’s by taking care of customers and employees and the community that generate great returns for shareholders. We treat profit as an outcome and this formula, people call it stakeholder capitalism or purposeful leadership, I think everybody now talks about it and embrace it, most people. There’s still a few who don’t agree. But the challenge then is how do you do this, how do you make this happen and, Barry, I felt that with my experience and the credibility of the Best Buy turnaround, I could add my voice and my energy to call this necessary foundation of business and capitalism around purpose and humanity and provide like a guide for any leader at any level frankly who is keen to move in that direction but like the rest of us, we would help. And so, that was the genesis of the book and the subtitle of the book is leadership principles, right, for the next era of capitalism and the book is full of very concrete examples and stories and illustrations. There’s questions at the end of each chapter that people can use to reflect and act at their company. So, that’s the book. RITHOLTZ: Speaking of the book, it got a terrific review from all — of all people, Amazon’s Jeff Bezos. How did that come about, how did Bezos give you a review and what’s the relationship like between Best Buy and Amazon these days? JOLY: Sure. Best Buys has always sold Amazon products because we think about Amazon as the retailer, of course, as a cloud company but Amazon is also a product company, right? They have the Kindle and, of course, all of their Echo products. And Best Buy have always sold Amazon’s products in the stores. Other retailers say it otherwise but we felt these were great products and we’re here to serve customers. I got to know Jeff firstly through the business council. Both of us were members there on the executive committee and once, I was invited to discuss our turnaround and how we had approached that transformation and Jeff was in the first row and being very kind. But then we did this significant partnership where I think it was in 2018. Amazon gave Best Buy exclusive rights to Fire TV platform, which is their smart TV platform, to be embedded into smart TVs. So, any smart TV with the Fire TV embedded in it, Best Buy is going to control that. It’s only going to be sold at Best Buy or by Best Buy and Amazon. And when we did the announcement for this deal, we did it in a store in Beverly, Washington, and Jeff came and we had some media there and Jeff said, TV is a considerate purchase. You got to see the TV. Best Buy is the best place in the world we you can do this. That’s why we’re doing the partnership and we built this stress-based relationship. And, of course, the media was — this was a jaw-dropping moment and Jeff is a very generous man. It’s interesting because it raises another question which is how do you think about competition. As you lead a company, do you obsess about competition or do you obsess about your customers and what you can become. And that’s one of the things that Jeff and and I share which is you obsess about your customers and becoming the best version of yourself you can be. Of course, at Best Buy, we look at Amazon. We wanted to — actually, in the sense, we neutralize them, right, because same prices, same great shopping experience and we ship as fast as they do. So, let’s call it a draw on the online business and then we have unique asset. And so, you’re not obsessed about your competition. In fact, in some cases, you partner with them and I think the world — other than the COVID pandemic, there’s another pandemic in the world which is the fear or the obsession about zero-sum games. The only way that Amazon could win is if Best Buy loses or vice versa. The only way this podcast can be successful, Barry, is if you win and I lose. That’s crazy, right? You get to collaborate and create great outcomes and I think in this world as leaders, we have to think about how we can create when win, win, win outcomes for our customers, our employees, our vendors, the community and ultimately, their shareholders. RITHOLTZ: And to put some flesh on those bones, some numbers on it, in 2007, before the financial crisis, Best Buy had done about $35 billion in revenue. In 2020, they were somewhere in the neighborhood of 47 billion and this year, I think the company is looking for an excess of 50 billion. So, clearly, that’s been heading in the right direction. Let’s talk a little bit about your experience on other boards. You’re in the board of directors of Johnson & Johnson and you’re on the board of directors at Ralph Lauren. What have you learned from those firms that were applicable to Best Buy and what do you bring to the table for those companies? JOLY: Yes. So, I joined — the first board I joined was Ralph Lauren in 2009 and I was the CEO of Carlson Companies, which was Carlson Wagonlit Travel, TGI Fridays and then a bunch of hotels, Regent and Radisson. The reason why I was interested in joining another board was to try to become a better CEO in the relationship with my board and sitting on somebody else’s board, you can see the needs of the board and then you can see how the CEO and their team are dealing with you. So, that was a great experience because when you become CEO and you deal with the board, you have zero experience, right, dealing with the board. So, that’s one of the things you learn on the job. So, that was a great way for me to learn. And these two companies, J&J and Ralph Lauren, they’re two amazing companies. J&J, I joined recently. I joined about 18 months ago. And so, watching Alex Gorsky and his team navigate the pandemic, their Credo-based approach. I mean, they’re the inventor of stakeholder capitalism before (inaudible), right, with their Credo that they created in 1943 that’s focused on all of the stakeholders. They’re one of the most innovative companies. So, they show the value of doing meaningful innovation for the benefit of, in their case, their patients. This is a wonderful entrepreneur. The company was founded in ’67 and it’s a great company, one of the most iconic brands on the planet. So, how do drive this and how do you balance left brain and right brain and, of course, enjoying cooperating with Patrice Louvet, the CEO, who is a terrific guy. And so, learning — I’m like a sponge, I love learning (ph) from others. What I bring, I would frame it along the lines of what I was looking for my board to do when I was CEO and I was not looking for the board to give me all of the answers and do my job, right? But I use the board — I wanted — I build a board that would give me complementary skills. So, I wanted to have the best people on the board that would have skills that would be additive to our management team and use the board as a sounding board to — I would get 80 percent of the value of the board meeting in preparation to the board meeting. And then getting reaction at the sounding board. When you are in the weed, sometimes, you’re missing something and then being able to access unique expertise from my board. So, what I try to bring on these boards is I try to be a resource for the management team, a sounding board, and helping them with their most important issues. I really enjoyed that. I’m in the state now where I started a new chapter as you highlighted, I’m no longer a CEO but it’s a matter of giving back and helping the next generation of leaders be the — become the best version of themselves they can be. So, I do that through boards and through executive education at Harvard Business School, also coach and mentor of a number of CEOs and executives. So, it’s — I just love doing that. RITHOLTZ: So, let’s talk a little bit about what you’re doing now. Tell us about the class you’re teaching at Harvard. JOLY: So, on Monday, August 30th, that is the first day of school for the incoming MBA class. So, I’m one of the professors in the first year. I teach marketing, which is about — it’s focused really on how do you grow a company focusing on the customers. So, that’s one of the things I do. I’m also part of the faculty that’s — as a program for new CEOs. So, twice per year with a small bunch of new CEOs, I did this when I became CEO, that come here for three days and we try to help them out. I’m also part of the faculty that’s doing a program called Leading Global Businesses and last but not the least, I’m really passionate about this, we’re designing and we’re going to pilot program for companies and then also in the MBA program called Putting Purpose to Work and Unleashing Human Magic. So, many companies on this purpose journey today. And so, there’s going to be a series of workshops for the top 30 people, custom programs, one company at a time, and we’re going to try to support them in their journey. We’re doing our first pilot this fall and to look forward to learning from that experience. And I think we’re just in the early innings of that new era of capitalism. So, so much to learn. I’m super excited to be part of that journey with a number of companies. RITHOLTZ: Quite interesting. I have to ask you the obvious question, is your book a book you assigned to your students? What do you have them read? JOLY: So, HBS is a school where there’s really not, for the most part, mandatory reading of any books. So, I know that last year, before the book was established, my wonderful Section E from the MBA program, they all got a copy of the manuscript and they had great conversations, too. Sometimes, the book gets distributed to the participants of the executive education programs. But in the MBA, there’s little mandatory reading. It’s all about, as you know, the case study methodology, which is a wonderful way to learn because it’s hard to learn just from reading. Reading, I mean, I encourage people to read the books for sure but it’s by practicing that you really learned, right? So, that’s the HBS way. RITHOLTZ: To say the very least. And one of the things that Bezos specifically mentioned was that he thought your turnarounds at Best Buy was going on eventually become a Harvard Business School case study. What are your thoughts on that? JOLY: Well, we’re actually working on that with Professor Gupta and it’s going to be taught for the first time. This is going to be fun, right? It’s going to be the last case of the marketing class in December. And so, of course, in my section, it’s going to be ironic. I’m going to be Professor Joly and I’m going to be one of the protagonists. There’s been other cases on Best Buy but this one is going to be much on the turnaround and transformation. So, that’s going to be fun. I’ve also taught it — we’ve also taught it in some of the executive education programs. So, Jeff – I know Jeff is right, there’s a Best Buy case now at Harvard Business School. RITHOLTZ: Really, really quite interesting. So, you mentioned purposeful leadership. Let’s delve into that a little bit. How does one become a purposeful leader who’s focused on creating the sort of environment where others can flourish and perform at their best? JOLY: Yes. This is, for me, such an important information and I grew up believing that as the leader, what was important was to be smart, right, where I went to school and to — some of the best schools and in the early years of my career, this is the left brain would highlight being the smartest person in the room. I’ve learned over the years that this is not what drives great outcome over time. I had an entire reflection and we slowed down. One of the things that is important to do is reflect on why do we work. Is work markedly a mixed reputation, right? We work — is work a punishment because some dude send in paradise, right, or is work something we do so that we can do something else that’s more fun or is work part of our fulfillment as a human being, part of our quest for meaning, right, to talk about Victor Frankl. And one of the things that I really invite myself to do and every leader to do is reflect on this. What’s going to be the meaning of my life professionally? How do I want to be remembered? One of the things we ask the CEOs to do in the CEO program in Harvard is write your retirement speech or with my wife when I — when we coach or mentor CEOs, we ask them to write their eulogy. What would you like other people to say on that day when you’re not here to listen? And I think this is so meaningful because people talk about the purpose of the corporation. I think it starts with our individual purpose, right, because motivation is intrinsic, right? And so, how can you lead others if you cannot lead your life and yourself? For me, that’s the beginning. And very practical, one of the turning points in our journey at Best buy, Barry, was every quarter, we would get together as an executive team for an offsite and one day, I asked every one of the executive team members to come to the offsite with a picture of themselves when they were little, maybe two or three years old. We got some really cute pictures, Barry, I can tell you that and over dinner, we spent the evening sharing with each other our life story and what drives us in life, what’s the meaning of our life. And what came out of that discussion, several things, one is we realized that all of us were human beings, not just a CFO or CMO or CHO, and that, with a couple of exceptions, all of us had the same kind of goals in life, which is it is the golden rule, do something good to other people. And that was transformational because we said, well, we’re the executive team of Best Buy. At that time, Best Buy — we had saved Best Buy and it was — where do we go from here? Why don’t we use Best Buy as a platform to do something good in the world and become a company that customers are going to love, employees are going to love, community is going to love and, of course, shareholders are going to continue to love. And so, there’s a similar idea in my mind which is connecting what drives us as individuals with the purpose of the company and the thing for companies that are embarked on the purpose journey, they write down their purpose but if they just try to cascade it down and communicate it to everybody and say, why don’t you — why aren’t you excited about this new purpose, right, it doesn’t work. We really have to start with what drives every individual and the company and then you realize that, yes, what is your role. So, in the book, I talked about the five Bs of purposeful leadership. The first B is be clear about your — what we are talking about, be clear about your own purpose, be clear about the purpose of people around you and how it connects with what you’re doing at the company. The second one is be clear about your role as a leader. It’s not to be the smartest person in the room but to create the environment in which others can be the best version of themselves. And, of course, if you’re leading a significant company and Best buy has more than 100,000 people, the only thing that happens is the thing that you decide that you come up with, you know it’s going to go far, right? So, it’s all about creating this environment which is significant mind shift. It’s also about — yes, Barry? RITHOLTZ: I was going to say, I’m struck by your comments and this comes through the book about showing vulnerability, inspiring people, embracing your humanity. I think back to the former CEO of General Electric, Jack Welch, whose nickname was Neutron Jack for how frequently he would lay off people and close divisions and fire other executives. When you were putting your philosophy to work at Best Buy, were you aware that this is a radical break from what had come before you? JOLY: Yes. And to quote — so, to go back to France in 1789, at the moment of the Storming of Bastille, there is Louis XVI asked La Rochefoucauld, is this a revolt, and La Rochefoucauld’s response says, no, sire, this is a revolution. And I think that’s what it is and it’s really shifting things. People are not the problem. They’re the source and they’re also the ultimate goal. And I think that most people agree with this, Barry, the challenge is not agreeing with this now, I think it’s really doing it and it’s — I can speak from experience. If you were to look at my face, you would see all of these scars on my face. Learning from experience and trying to get better at this is a lifelong journey of learning to be vulnerable. I was raised — being taught that I — you couldn’t say I don’t know and now, in the world we live, did you have a manual for the COVID pandemic, did you have a manual for back-to-the-office, Barry? No. So, it’s clear that we don’t know. So, we have to be able to say my name is Hubert and I need help and we’re going to work together to figure it out. So, there’s a C change in leadership, meaning from a place of purpose and with humanity and a great deal of humility. RITHOLTZ: So, I want to talk about the pandemic in a moment. I want to stick with this revolution that you mentioned. There’s a quote from the book that I really like, quote, “The Milton Friedman version of capitalism got us here. But now, this model is failing.” Explain to us how it got us here, why it’s failing now and what comes next. JOLY: I used this to highlight the idea which mainly has been Milton Friedman’s, only I get was the context when he spoke. But the obsession with profits being the only thing that matters is proven to be poisonous and excessive focus on profit is poisonous and there’s several reasons for this. One is when we look at the reported profit of the company — by the way, if anybody believes that U.S. GAAP really tries to equate economic performance, study your accounting again, it’s not even trying, it’s a set of principles. There’s many things that GAAP profit does not capture, including your negative impact on the environment or how well your sales force is trained. The other thing is that it focuses on an outcome. So, in medicine, the (inaudible) analogous is my MD was focused on my temperature, right, and I don’t want a doctor that’s purely focused on my temperature because maybe he’s going to put the thermometer in the fridge or in the oven, right, depending. I want somebody who’s going to be interested in what’s driving my health and try to help me get healthy. And so, we got confused by this obsession and that was (inaudible) and, of course, there’s extreme cases. Enron is one of them but — where we lost track of why we’re on this planet and responsibility with doing the right thing. So, this new model, the reinvention of business probably going back to some of our roots, right, with the idea that business is here to purse enabled (ph) purpose. And this is not about socialism, this is about doing something good in the world that could be responding to needs of customers in a way that’s responsible. It’s about putting people at the center embracing all of the stakeholders in a harmonious fashion, refusing zero-sum games and treating profit as an outcome. I think that’s the formula that’s employed by some of the best companies on the planet. And as leaders, we need to go back to that and to learn new things because we’re so influenced by some of the techniques we learned last century, including this top-down management approach and using it extensively. So, that’s something you’re going to learn over time. There’s research by the MIT that shows that financial incentive deteriorates performance, which is the opposite of what we’ve learned, right? But if you feed somebody with carrots and sticks, beware because you’re going to get a donkey, right? RITHOLTZ: Right. JOLY: And in a world where you need creativity and people to be their best, motivation is going to be intrinsic. So, that’s what you need to be able to touch and get to the environment where people want to be their best and make a meaningful contribution in their work. So, I think this is a very exciting phase. This is an urgent phase because I’m concerned probably like you and many others that we have a few ticking timebombs and I have three wonderful granddaughters. I want to do my best to try to, quote-unquote, “make the planet” be a better world, right, than the current trajectory. RITHOLTZ: And this is very consistent, I have a fuller understanding of your philosophy that profit should be an outcome and not just the goal in and of itself. You’ve really put some meat on those bones. JOLY: Yes. Thank you, Barry, and there’s practical implications of that again and starting your monthly business meetings or even your board meetings with people and organization and then customers and business and then basically (ph) with with financial results. You should take care of the first two, the profits will follow. So, it’s a significant practical and philosophical transformation. Talking about quotes here, we quoted Milton Friedman, but I love this quote from the Lebanese prophet, Kahlil Gibran, who said that work is love made visible. RITHOLTZ: That’s a wonderful quote. And let’s talk a little bit about visibility of some of the changes you did. By the time you stepped down from the board of directors in June of last year, Best Buy’s board of 13 directors had, for the first time ever, a majority of women and three African-American directors. Tell us how you brought about this increase of diversity. What about diversity throughout the rest of the company and what was the impact of so much inclusion and a shift away from the older homogenous types of boards? JOLY: I think, Barry, it’s clear for every one of us today that having diversity is going to get to a better business outcome and I do believe that has there been Lehman brothers and sisters instead of Lehman brothers, we would have had a different outcome. But if you also take it a very practical fashion, in one of our stores in Chicago that’s in the Polish neighborhood, if the blue shirts don’t speak Polish, they’re not going to sell much. RITHOLTZ: Right. JOLY: Or when we had Brazilian tourists in Orlando, the blue shirts didn’t speak Portuguese, they were not going to sell much. So, having diversity of every dimension, talent, skills, profiles, gender, race, the country’s color is changing very rapidly, it’s becoming black and brown, we have to represent — it’s very simple, we have to represent the diversity of the customers we serve. If we don’t, bad things happen. And so, there’s a business imperative, there’s also a moral imperative when we see the state of the country. So, from a gender standpoint, as I said, I have three granddaughters, I want them to have the best opportunities, and why would it make sense to only recruit from a quarter of the population, right? RITHOLTZ: Right. JOLY: The board’s — I’ll say the board’s composition was a great place to focus now. It’s not the only one. When we rebuilt the board study in 2013, we want to have the best skills. We were determined to be diverse. So, we had an early focus on gender diversity and when I started to focus more on ethnic diversity, probably starting in 2016, 2017, I met — I had a great meeting with Mellody Hobson of Ariel Investments and … RITHOLTZ: Sure. JOLY: … she’s now the Chair of Starbucks, everyone knows Mellody, she’s amazing, one of the things she told me is that people cannot be who they cannot see. And so, starting at the top and having a board that would signal the direction was important. So, what’s really — and changing the composition of the board is not that hard with only 10 or 12 or 13 people, how hard can it be? So, we told the headhunter don’t bother giving us resumes of non-black directors, right, and if you believe that you are unable to find great black candidates, well, say that’s OK, we won’t have a problem with that. We’ll just work with another firm. It’s not a problem. And so, we recruited three amazing directors and we got them on the board that they’ve concluded (ph) in this direction and I think it makes a huge difference. And, of course, Best Buy is headquartered in Minneapolis and following the killing — the murder of George Floyd, it’s pretty simple, if you — if the city is on fire, right, if the community is on fire, you just can’t open stores, right? You can’t run a business. RITHOLTZ: Right. JOLY: So, in this country, we have this big racial issue that has been going on for centuries. I think generation has the opportunity to end systemic racism and that’s something we, I think, business can play a big role in this. So, that was determined and that’s what we did. RITHOLTZ: Let’s jump to our favorite questions that we ask all our guest starting with tell us what you’re streaming these days, give us your favorite Netflix or Amazon Prime, what’s keeping you entertained during the pandemic? JOLY: I have so much electronic equipment in our place that I’m doing a lot of streaming. I love — I always listen to music. I’m a movie buff. I have a collection of probably 800 movies on my (inaudible) setup. Our favorite I would say recently has been “Good Doctor.” I think that’s Season 5, it’s starting at the end of September. We’re very excited about this. And then from a podcast standpoint, I like listening to HBR’s Idea Cast. That’s a weekly – a great weekly podcast. Whitney Johnson has a great leadership podcast called “Disrupt Yourself.” And then I have to mention, there’s a young teenager, well, teenager would be young anyway, right, but let’s call him a teenager, Logan Lin has got a FinanZe podcast that focused on the Z generation. My God, the guy is so cool. So, everybody joins and downloads FinanZe spelled F-I-N-A-N-Z-E and that’s Logan Lin. RITHOLTZ: Quite interesting. We hinted at some of your mentors but let’s jump into that in more depth. Tell us some of the people who helped to shape your career. JOLY: There’s so many, Barry. Jean-Marie Descarpentries, a client of mine, had this big influence on me teaching me so much about how to put people first and treating profits as an outcome. There were two great friends, yes, who happened to be monks in a religious congregation in the early ’90s. That was a turning point. They asked me to write a couple of articles with them on the theology and philosophy of work which is where I got a lot of my roots in terms of work as part of our search for meaning as individuals, as human beings. It changed my perspective on work. Another turning point, too, in my early 40s, you could say throughout the book, it was at the top of my first mountain, right, had been a partner at McKinsey & Company. I was on the executive team of Vivendi Universal, by many measures., I’ve been successful, right, except I think the top of that first mountain was very dry which was not fulfilling. There was no real meaning. So, I call it my midlife crisis, right? So, instead of going on to an island, I did — I stepped back and I did the spiritual exercises of Ignatius of Loyola. So, you could say the founder of the Jesuits, of course. You could say he was one of my mentors that was really helpful to help me discern my calling in life, which today or since then has been to try to make a positive difference on people around me and use the platform I have to make a positive difference in the world which is what I’m doing now teaching and mentoring and so forth. And then we mentioned Marshall Goldsmith, my first coach and a good friend. Later on, I also worked with Eric Pliner at YSC. When the board — so, Marshall was doing my annual — having that board with my annual evaluation and the board realized that Marshall and I were such good friends and said, we need somebody more objective now. And we got Eric Pliner, who is now the CEO of YSC, worked with me but also his firm works with every one of our executives and helps us with executive team’s effectiveness and that was quite transformative. You should have spent more time earlier on not just on building the right team but enhancing our team effectiveness and I learned a lot working with Eric in that journey. RITHOLTZ: Let’s talk a little bit about everybody’s favorite question, tell us about some of your favorite books and what are you reading right now. JOLY: I read three books this summer. The first one is by Rakesh Khurana who’s now the President of Harvard College and it’s called “From Higher Aims to Hired Hands” which is the history — exactly for me, the history of business education in the U.S. over the last 120 years and how the business school curriculum were saved and how — and why he believes and I do believe as well that we need to evolve it not just learning techniques but also with — it’s not just about learning something or learning to do something, it’s also learning to be, which is I think an entire journey. I also read “Caste” by Isabel Wilkerson and a book by my colleague, Tsedal Neeley, “Remote Work Revolution” which is, of course, a very timely book. Best book ever read, I have to mention Marcel Proust being French, “In Search of Lost Time.” It’s only 3,000 pages. So, if you have a minute or two, I encourage you to get to it. Victor Frankl’s “Man’s Search for Meaning” is another favorite. And you mentioned the Marshall Goldsmith’s “What Got You Here Won’t Get You There.” And finally, I have to mention my wife’s book called “Aligned: Becoming the Leader You’re Meant To Be” and her name is Hortense Le Gentil. It’s one of the best leadership books that I’ve ever read and, of course, a little bias maybe. RITHOLTZ: Maybe you’re a little bit bias. So, you work with grad students and college students, what sort of advice would you give to a recent college graduate who is interested in a career either as an executive or leadership or even in retail? JOLY: I think the advice is the same as we give the new CEOs is write your retirement speech or even better, write your eulogy. And I know my good friend John Donahoe, who’s now the CEO of Nike, did this when he graduated and he’s always kept it. And I understand he goes back to it every year and it’s hard. (Inaudible) between the ages of 26 and 34, early in your adult life, you don’t necessarily know everything but try to write it and see what journey you want to be on and how you want to be remembered. That would be one plot. RITHOLTZ: Quite interesting. And our final question, what do you know about the world’s of leadership and executive management today that you wish you knew a couple of decades ago when you were first getting started? JOLY: Well, there’s so much over the years. I think it has to do with profits being an outcome not the goal. It’s about importance of looking at drivers of performance. It’s about my role as a leader is not to be the smartest person in the room but to create the right environment. Not about being perfect. Nobody’s perfect. And I think the quest for — maybe I’ll finish with this, the quest for perfection can be very dangerous, can be evil, right, because if you’re trying to be perfect, guess what, you’re not going to be successful. You’re going to be incredibly demanding and harsh with people around you because you expect them to be perfect. And so, you have to be laxed and be kind with yourself and others around you and be able to open up and share what you are struggling with, understand what they’re struggling with and help each other out. That’s the — I think to me, that’s — it’s such an important consideration. The quest of perfection can be very dangerous. Be kind to yourself. During the pandemic, we learned so much, right? We used to fly around Barry, long time ago on planes, right, and we were told by the steward or the stewardess, if the oxygen mask comes down, put it on yourself first before you help others. So, as we continue to go through challenging time, taking care of yourself as a leader, making sure you meditate, you reflect, you exercise, you ask for help either from your personal board of directors, your best friends, that’s the key thing, that’s going to be the way that we can then help others. So, take care of yourself first. RITHOLTZ: Quite interesting. We have been speaking with Hubert Joly, former Chairman and CEO at Best Buy and currently a lecturer at Harvard Business School. Thank you, Hubert, for being so generous with your time. If you enjoy this conversation, be sure and check out any of our previous 376 former discussions that we’ve had. You can find those at iTunes, Spotify, Acast, wherever you feed your podcast fix. We love your comments, feedback and suggestions. Write to us at mibpodcast@bloomberg.net. You can sign up for my daily reads, you can find those at ritholtz.com. Follow me on Twitter @Ritholtz. I would be remiss if I did not thank the crack staff that helps put these conversations together each week, Charlie Vollmer is my audio engineer extraordinaire, Atika Valbrun is my project manager, Paris Wald is my producer, Michael Batnick is my researcher. I’m Barry Ritholtz. You’ve been listening to Masters in Business on Bloomberg Radio   ~~~   The post Transcript: Hubert Joly appeared first on The Big Picture......»»

Category: blogSource: TheBigPictureSep 27th, 2021

Amazon"s price target cut by Morgan Stanley as the bank sees hiring pressure building and wage costs surging

Morgan Stanley still sees upside for Amazon's stock price as it keeps its overweight rating on the retailing giant. Amazon has been increasing its workforce during 2021. Tom Williams/Getty Images Morgan Stanley on Monday cut its price target on Amazon stock to $4,100 from $4,300 but kept its overweight rating. The investment bank sees the retailer facing profit pressure as it hires thousands of people and raises wages. But the $4,100 target still implies a 21% gain from Monday's intraday stock price of $3,396. See more stories on Insider's business page. Amazon's plans to hire thousands of people and increase wages will likely put pressure on its profit, said Morgan Stanley on Monday in cutting its price target and profitability projections on the e-commerce behemoth. The investment bank lowered its price target by nearly 5% to $4,100 from $4,300 but kept its overweight rating intact. Morgan Stanley said Amazon's workforce growth will allow it to capture further gains in market share, increase shipping speeds, and open doors to new business avenues such as third-party logistics. However, "the cost of labor is rising," said analysts led by Brian Nowak in a research note.Amazon earlier in September said it would hire 125,000 people for fulfillment and transportation jobs across the US, coming on top of 40,000 corporate and technology jobs it had planned to add. It also said it would bump up its average starting wage to $18 an hour and up to $22.50 an hour in some locations. And Amazon is offering a $3,000 sign-on bonus in certain places. Morgan Stanley estimated Amazon's US logistics workforce this year will grow to 700,000 from 500,000. And with rising wages and benefits, the bank's analysts foresee total labor costs rising about $4 billion, or by 60%, in the fourth quarter of 2021 from the same quarter in 2020. That prompted the bank to lower its projection for 2021 earnings before interest and taxes by 16% to $5.6 billion, and by 19% to $9.5 billion for 2022. The $4,100 price target still suggests further upside for Amazon stock, which from Monday's price around $3,396 implied a 21% gain. "Near-term estimates are heading lower...but in our view it is also important to remember that rising wages are impacting all businesses (most recently FedEx last week) and AMZN competitors," wrote Nowak. This year, Amazon's stock had advanced 5.2% through last week.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderSep 27th, 2021

Micron"s stock soars toward 1 1/2-year high after Cowen turns raises rating, price target

Shares of Micron Technology Inc. powered up 6.7% in active morning tra.....»»

Category: topSource: marketwatchJan 7th, 2020

Twitter"s stock surges toward 1-year high after CFRA raises rating, boosts price target

Shares of Twitter Inc. surged 4.2% in midday trading Wed.....»»

Category: topSource: marketwatchJul 31st, 2019

Eli Lilly"s stock rallies after BMO raises rating, price target

Shares of Eli Lilly & Co. rallied 1.2% in morning trade Friday, after BMO Capital backed away from its bearish stance that it's kept for the past year, given the belief that previous concerns are now mostly reflected in the.....»»

Category: topSource: marketwatchApr 13th, 2018

4 ETF Areas for Investors to Make the Most of Q4

Let's take a look at some ETF areas that are looking decent investment options for the investors to park their money in Q4. Investors are having a difficult time on Wall Street after a tough September. Apart from increased volatility, market participants are currently grappling with other issues like inflationary pressure, the Fed’s tapering concerns and supply-chain challenges. Investors are on edge regarding earnings growth in the third-quarter earnings season. Going by Refinitiv data, the September-quarter earnings growth rate might come in at 30% from the year-ago reported figure following a 96.3% rise in the second quarter (as mentioned in a CNBC article).A CNBC Market Strategist Survey reflects that Wall Street major strategists are expecting soft returns for the remainder of 2021 as the average year-end S&P 500 target is 4,433.In another disappointing development, Goldman Sachs (GS) decreased its U.S. economic growth prediction. The investment bank expects 2022 growth in the range of 4% to 4.4% (according to a CNBC article). It has also revised its 2021 estimate downward to 5.6% from 5.7%. It cited various factors like the diminishing fiscal stimulus support from the Congress and the slow pace of recovery in consumer spending for its decision.The latest jobs report for September was quite lacklustre as the U.S. economy has added the lowest number of jobs so far this year. 194,000 positions were added in September, which missed the forecast of 500,000. Nonfarm employment has risen 17.4 million since April 2020 but decreased 3.3% from its pre-pandemic level in February 2020.Against this backdrop, let’s take a look at some ETF areas that are looking decent investment options for the investors to park their money in Q4:Energy ETFsThe energy sector has been attracting investors’ attention on the latest rally in oil prices. Oil prices crossed the $80-a-barrel mark amid the ongoing global power crisis. The price of crude attained a seven-year high. Shrinking crude inventories, supply disruption in the Gulf of Mexico following a couple of hurricanes and surging fuel demand are pushing oil prices higher.Soaring coal and natural gas prices in Europe and Asia due to a supply-demand imbalance before the severe winter season is driving consumption of diesel and kerosene (according to a Bloomberg article). TheOrganization of the Petroleum Exporting Countries (OPEC) and a Russia-led group of oil producers, collectively called OPEC+ decided to raise production by 400,000 barrels a day each month. Also, the coronavirus vaccine rollout is gradually aiding in controllingthe spread of the pandemic. The optimism surrounding the gradual reopening of global economies and increasing demand are painting a rosy picture for cyclical sectors.Considering the bullish energy sector backdrop, let’s take a look at some energy ETFs that are worth adding to your portfolio for boosting returns Invesco Dynamic Energy Exploration & Production ETF PXE, Vanguard Energy ETF VDE, Fidelity MSCI Energy Index ETF (FENY) and The Energy Select Sector SPDR Fund (XLE) (read: Here's Why Energy ETFs Are Sizzling With Opportunities).Dividend ETFsDividend aristocrats are blue-chip dividend-paying companies with a long history of increasing dividend payments year over year. Moreover, dividend aristocrat funds provide investors with dividend growth opportunities compared to other products in the space but might not necessarily have the highest yields.‘Dividend aristocrats’ or ‘dividend growers’ are mostly deemed to be the smartest way to deal with market turmoil. Notably, the inclination toward dividend investing has been rising due to easing monetary policy on the global front and market uncertainty triggered by the pandemic and deceleration in global growth.These products also form a strong portfolio, with a higher scope of capital appreciation as against simple dividend-paying stocks or those with high yields. As a result, these products deliver an excellent combination of annual dividend growth and capital-appreciation opportunity and are primarily suitable for risk-averse long-term investors.Against this backdrop, let’s take a look at some ETFs that investors can consider like Vanguard Dividend Appreciation ETF VIG, SPDR S&P Dividend ETF SDY, iShares Select Dividend ETF (DVY) and ProShares S&P 500 Dividend Aristocrats ETF (NOBL) (read: September's Weak History Turning True: 5 ETF Buying Zones).Technology ETFsTechnology has played an instrumental role amid the ongoing COVID-19 uncertainty in aiding people to maintain safe-distancing norms. The work-from-home model has bumped up sales of PCs, laptops and other kinds of computer peripherals as well. Going by IDC’s Worldwide Quarterly Personal Computing Device Tracker, the global shipment of PCs that include laptops and tablets, desktops and notebooks, reached 83.6 million units in the second quarter, rising 13.2% on a year-over-year basis.Certain other ‘new normal’ trends have also emerged amid the health crisis like work from home, increasing digital payments, growing video streaming and soaring video game sales. The pandemic has also beena boon for the e-commerce industry as people continue staying indoors and shopping online for all essentials, especially food items.Further, the semiconductor space has been gaining from expanding digitization and growing dependency on the Internet. In fact, the growing adoption of cloud computing and the ongoing infusion of AI, machine learning and IoT are expected to keep the sector brewing with opportunities in 2021.Thus, investors could consider ETFs like Vanguard Information Technology ETF VGT, The Technology Select Sector SPDR Fund XLK, iShares U.S. Technology ETF IYW and First Trust NASDAQ-100-Technology Sector Index Fund (QTEC) (read: 5 ETFs & Stocks From the FavoriteSectors of Q3 Earnings).Retail ETFsMarket analysts are expecting an impressive retail sales figure in 2021 anda strong holiday season. Strengthin consumer sentiment can act as a major growth driver as consumers haveenough resources to splurge this holiday season after facing restrictions for more than a year.The retailers are prepping for the start to the holiday season (the late October-December period) that is considered a busy season for severalindustry players and market participants. The quarter is marked by some popular retail events like Halloween, Thanksgiving, Cyber Monday, Black Friday and Christmas, which increase its significance among retailers.According to Mastercard SpendingPulse,  U.S. retail sales — excluding automotive and gas — for the “75 Days of Christmas” spanning from Oct 11 to Dec 24 are anticipated to increase 6.8% from the year-earlier tally.Considering the strong trends, investors may park their money in the retail ETFs like Amplify Online Retail ETF IBUY, ProShares Online Retail ETF ONLN, SPDR S&P Retail ETF (XRT) and VanEck Retail ETF (RTH) to tap the sales boom (read: Online Retail ETFs to Gain From Holiday Shopping Craze). 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports SPDR S&P Dividend ETF (SDY): ETF Research Reports Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports Vanguard Energy ETF (VDE): ETF Research Reports Amplify Online Retail ETF (IBUY): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Invesco Dynamic Energy Exploration & Production ETF (PXE): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks7 hr. 50 min. ago

New to Investing? This 1 Building Products Stock Could Be the Perfect Starting Point

Finding strong, market-beating stocks with a positive earnings outlook becomes easier with the Focus List, a top feature of the Zacks Premium portfolio service. Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.The Zacks Premium service makes this easier. It features daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All of these can help you quickly identify what stocks to buy, what to sell, and what are today's hottest industries.Also included in Zacks Premium is the Focus List. This is a long-term portfolio of top stocks that have all the traits to beat the market.Breaking Down the Zacks Focus ListIf you could get access to a curated list of stocks to kickstart your investment portfolio, wouldn't you jump at the chance to take a peek?That's what the Zacks Focus List, a portfolio of 50 stocks, offers investors. Not only does it serve as a starting point for long-term investors, but all stocks included in the list are poised to outperform the market over the next 12 months.What makes the Focus List even more helpful is that each selection is accompanied by a full Zacks Analyst Report, which explains the reasoning behind every stock's selection and why we believe it's a good pick for the long-term.The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.Investors also need to look at what a company will earn down the road. This is why earnings estimate revisions are so important.Stocks that receive upward earnings estimate revisions are more likely to receive even more upward changes in the future. For example, if an analyst raised their estimates last month, they're more likely to do it again this month, and other analysts are likely to do the same.Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.Since stock prices respond to revisions, it can be very profitable to buy stocks with rising earnings estimates. By buying Focus List stocks, then, you're likely getting into companies whose future earnings estimates will be raised, potentially leading to price momentum.Focus List SpotlightWinnebago Industries, Inc. (WGO) is a leading producer of recreational vehicles in the United States. It has been manufacturing RVs for around 60 years. The motorhomes or RVs are made in the company's vertically integrated manufacturing facilities in Iowa, while the travel trailer and fifth wheel trailers are produced in Indiana. The company distributes its products through independent dealers throughout the United States and Canada.Since being added to the Focus List on July 18, 2016 at $23.30 per share, shares of Winnebago Industries have increased 203.56% to $70.73. The stock is currently a #2 (Buy) on the Zacks Rank.For fiscal 2021, one analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $7.95. WGO boasts an average earnings surprise of 50.1%.Moreover, analysts are expecting Winnebago Industries's earnings to grow 208.1% for the current fiscal year.Another standout Focus List stock you could consider is Huntington Ingalls Industries Inc. HII. HII builds, designs, and maintains both nuclear- and non-nuclear-powered ships for military and defense services around the globe.Huntington Ingalls is a #2 (Buy)-ranked stock, and shares have gained almost 35.64% since being added to the portfolio.Two analysts have raised their earnings outlook for the current fiscal year. HII's bottom line is now expected to rise about 34% year-over-year; the Zacks Consensus Estimate has increased $0.44 to $13.44 per share. Additionally, Huntington Ingalls has an average earnings surprise of 25.45%.Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >> 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 Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report Winnebago Industries, Inc. (WGO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks7 hr. 50 min. ago

Shares of MGM Resorts International Rise Above Previous 52-Week High

Shares of MGM Resorts International (NYSE: MGM) traded today at $49.13, eclipsing its 52-week high. Approximately 1.3 million shares have changed hands today, as compared to an average 30-day volume of 8.2 million shares. MGM Resorts International is currently priced 20.2% above its average consensus analyst price target of $38.57. MGM Resorts is the largest resort operator on the Las Vegas Strip with 35,000 guest rooms and suites, representing about one-fourth of all units in the market. The company’s Vegas properties include MGM Grand, Mandalay Bay, Mirage, Luxor, New York-New York, and CityCenter. The Strip contributed approximately 49% of total EBITDAR in the pre-pandemic year of 2019. MGM also owns U.S. regional assets, which represented 29% of 2019 EBITDAR. We estimate MGM’s U.S. sports and iGaming operations will be a mid-single-digit percentage of ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzinga10 hr. 34 min. ago

The best toaster ovens we tested in 2021

Toaster ovens are perfect for quick meals and small living spaces that don't have room for a full oven. These are the best toaster ovens of 2021. James Brains/Insider Table of Contents: Masthead Sticky A good toaster oven is easy to use, preheats quickly, and stays at the temperature you set it to. We cooked whole chickens, frozen pizza, cookies, and toast in eight toaster ovens to find the best. The Cuisinart Digital AirFryer Toaster Oven is our top pick with its fast and even cooking. Toaster ovens are the unsung heroes of kitchen appliances. During the holidays when a big turkey is hogging the oven, you can prepare your sides in the toaster oven. And, in the summer, you can cook meals efficiently without heating up your home. If your living situation doesn't fit a standard oven, a toaster oven allows you to bake, roast, and make anything else you might cook in a regular oven, only on a smaller scale.For this guide, I roasted, toasted, air fried, and baked 32 pounds of chicken, eight dozen chocolate chip cookies, eight pizzas, and four loaves of bread in eight toaster ovens.I also consulted with Roxanne Wyss and Kathy Moore, known as "The Electrified Cooks" and authors of the new toaster oven cookbook Toaster Oven Takeover.I have reviewed kitchen appliances for four years and have developed many objective tests to determine which models are best for different needs and budgets. You can find details about how I test toaster ovens here.Here are the best toaster ovens in 2021Best toaster oven overall: Cuisinart Digital AirFryer Toaster OvenBest budget toaster oven: Black+Decker Crisp 'N Bake Air Fry Toaster OvenBest large-capacity toaster oven: Breville Smart OvenBest combination toaster oven: Anova Precision Oven Best toaster oven overall James Brains/Insider The Cuisinart Digital AirFryer Toaster Oven maintains consistent heat to cook quickly and evenly, and it doubles as an air fryer and dehydrator.Toast capacity: 6 slicesPizza capacity: 12-inchConvection/air fryer: YesRack positions: 2Interior dimensions: 12 x 12 x 5 inchesExterior dimensions: 16 x 15.5 x 13.5 inchesTemperature range: 80 to 450 degrees FahrenheitTimer range: Up to two hoursPresets: Toast, bagel, bake, broil, pizza, roast, dehydrate, proof, low, airfry, reheat, warmExtras: Extra oven rack, baking/drip pan, air frying basket, recipe bookletWarranty: 3 yearsPros: Has convection cooking/air frying, large enough to fit a 12-inch pizza, provides consistent heat, cooked pizza, chicken, and cookies quickly and evenly Cons: Temperature settings appear to be inaccurate, did not toast evenlyThe Cuisinart Digital AirFryer Toaster Oven (Model TOA-65) had the best overall performance in our objective tests. It took less than five minutes to set up and features an easy-to-read backlit digital display. You navigate through the many different functions by turning a knob and pressing it to select the function and adjust the time and temp.The Cuisinart toaster oven was one of the best models for making pizza, chicken, and cookies. It heated a frozen pizza in under six minutes, and the cheese, crust, and pepperoni were evenly cooked. Using the convection cooking function, the chicken reached a safe internal temperature in 52 minutes, and the skin was a beautiful golden brown and tasted outstanding. The meat was moist and flavorful. And, the cookies were evenly cooked in about 12 minutes, which was significantly faster than the average, 13 minutes and 45 seconds.When we ran the Cuisinart Digital AirFryer Toaster Oven for two hours at 350 degrees, we noticed the temperature only varied by four degrees. However, the display said it was preheated when our thermometer read 270. It continued to heat up and reached 350 after eight minutes. The average temperature during the test was 314, well below 350.The Cuisinart toaster oven fell short of perfection in two other categories. We used the presets to toast six slices of bread, but after a blazing fast toasting speed of less than three minutes, the top was lighter than the medium shading we set it to. And, the bottom was uneven with the center almost burnt and the edges barely toasted. If I were to use this toaster oven for regular toasting, I'd likely up the time a little bit and flip the bread halfway through.Lastly, by our measurements, the Cuisinart was slower than average to preheat to 350. However, it was quick to get to 425, which made it ideal for frozen pizza. Best budget toaster oven James Brains/Insider If you want a cheap toaster oven but don't want to sacrifice performance, we recommend the Black+Decker Crisp 'N Bake Air Fry Toaster Oven with its fast preheating and accurate temperatures.Toast capacity: 6 slicesPizza capacity: 11-inchConvection/air fryer: YesRack positions: 3Interior dimensions: 12 x 11.5 x 5.5 inchesExterior dimensions: 17.5 x 14 x 11 inchesTemperature range: "Warm" to 450 degrees FahrenheitTimer range: Up to 60 minutes or stay onPresets: Air fry, bake, broil, toast, keep warmExtras: Baking pan and air fry basketWarranty: 2 yearsPros: Fast preheating, accurate temperature settings, even cooking, features air frying/convection cooking, timer has stay-on functionCons: Uneven toasting, was among slowest to roast a chickenDespite costing less than a third of the price of the other models in our guide, the Black+Decker Crisp 'N Bake Air Fry Toaster Oven (Model TO3217SS) held its own in our tests. We like that it has intuitive, no-nonsense analog knob controls, a roomy interior, and convection cooking/air frying. Another nice touch is the "stay on" option on the timer, which makes it so you don't have to keep adding more time during longer cooks.The Black+Decker toaster oven appeared to have the most accurate thermostat. At 347 degrees, it came closest to reaching a 350-degree average during our two-hour test. However, the temperature varied by 13 degrees, which put it in the middle of the pack.It was consistently one of the fastest to preheat. The oven reached 350 degrees in under four minutes, and getting to 425 only took about a minute more. The Black+Decker Crisp 'N Bake Air Fry Toaster Oven excelled at making cookies and frozen pizza. Each batch took about 14 minutes to bake, which was just fair, but the results were even and delicious. The story was the same with frozen pizza: the cooking time was about average, but the pizza was excellent. The chicken was also great: flavorful, juicy, and evenly cooked. However, it took nearly an hour and a half to finish, which made it one of the slowest models.The Black+Decker oven's toasting was subpar. It toasted six slices of bread in three-and-a-half minutes, which was about average, but the results weren't very even. The top of the toast was close to consistent, but it was noticeably less done near the front, and the bottom was much less toasted than the top. Best large-capacity toaster oven James Brains/Insider The Breville Smart Oven is large enough to fit nine slices of toast, a dozen cookies, or a 12-inch pizza making it ideal for larger families or if you just want to use it in place of your standard oven.Toast capacity: 9 slicesPizza capacity: 12-inchConvection/air fryer: YesRack positions: 3Interior dimensions: 13.5 x 12.5 x 5.5 inchesExterior dimensions: 18.5 x 15.7 x 11.1 inchesTemperature range: 120 to 450 degrees FahrenheitTimer range: Up to two hoursPresets: Toast, bagel, bake, roast, broil, pizza, cookies, reheat, warm, slow cook, convectionExtras: Broil rack, baking pan, pizza panWarranty: 1 yearPros: Can fit nine slices of toast and a 12-inch pizza, provides consistent and even heat, features convection cooking/air frying, attractive backlit digital display with several functions and sub-functionsCons: Temperature settings were consistently higher than what we measured, slow to preheatAlong with our best combination pick below, the Breville Smart Oven (Model BOV800XL) was one of two models that could toast nine slices of bread at once, and it did a good job of it. Plus, it can hold a 12.5-inch pizza. This is impressive considering the exterior dimensions aren't inordinately large.Like our top pick, the Breville Smart Oven has a backlit digital display with separate knobs for quickly adjusting the function, temperature, and time. It also has sub-functions that adjust the cooking time and heat based on the size of the pizza you are baking or the slices of toast you're toasting. Plus, the Smart Oven features convection cooking/air frying.The oven excelled at chicken and cookies. It took a little more than an hour to roast a whole chicken, and it was the best tasting and most evenly cooked of all the birds in our tests. We baked a dozen cookies at once in the roomy Breville Smart Oven using the Cookie function, which utilized 350-degree convection cooking. The cookies came out evenly baked in 14 minutes, which was average.The oven also cooked pizza evenly, but it took 17 minutes, which was longer than all but one of the models. It was also one of the slowest ovens to preheat. And, we weren't able to get it to preheat to 425 degrees. It maxed out at 387. This was a consistent problem. In our temperature variance test, we measured an average temp of 292 despite setting the controls to 350. Because of this, we'd recommend utilizing an oven thermometer to find your target temperature setting. On the plus side, the Breville toaster oven held its temperature consistently, only wavering by four degrees over the course of two hours. Best combination toaster oven James Brains/Insider In addition to baking, toasting, and air frying, the Anova Precision Oven offers sous vide cooking, and you can control it and monitor the internal temperature of your food using your phone.Toast capacity: 9 slicesPizza capacity: 12-inchConvection/air fryer: YesRack positions: 5Interior dimensions: 16.9 x 12.4 x 10 inchesExterior dimensions: 22.4 x 17.7 x 14.1 inchesTemperature range: 77 to 482 degrees FahrenheitTimer range: Up to 99 hoursPresets: Virtually limitless using the Anova Oven app (available for iOS and Android)Extras: Probe thermometer that connects to oven, extra oven rack, and baking panWarranty: 2 yearsPros: Features sous vide and air fryer/convection cooking, smart WiFi connectivity via app, comes with probe thermometer that connects to oven, does a good job of roastingCons: Slow to preheat, bake, and toast, temperature didn't stay consistent during our testThe Anova Precision Oven is the first toaster oven that offers sous vide, in addition to air frying/convection cooking. And, while most sous vide devices require vacuum sealing, the Precision Oven cooks your food without the need for additional packaging. I cooked several steaks and pork ribs using the sous vide function and found it worked just as well, if not better, than an immersion circulator. I especially liked that the oven comes with a probe thermometer that plugs into the unit so I could monitor the internal temperature of the meat while it cooked, which you can't do with vacuum-sealed meat in an immersion circulatorThe touch buttons on the handle of the oven aren't as responsive as I would like, and adjusting the temp one degree at a time using the up and down buttons is a hassle. So, I mainly used the Anova Oven app (available for iOS and Android), which allows you to key in your preferred temp and time. Or, you can automate the cooking process. The app features hundreds of recipes. One time, I used the app to preheat the oven as I waited in line at the store to pay for a frozen pizza so I could just pop it in when I got home.This feature is particularly important since the Anova Culinary Precision Oven was one of the slowest to preheat. It takes about 10 minutes to heat to 350 degrees and 17 minutes to reach 425. Also, while it has a relatively accurate setpoint, the temperature varied by 16 degrees during our two-hour test, which was more than most models.The Anova Precision Oven also took a long time to toast. We used the toast preset, which involved a little steam to keep the bread from drying out. However, the process took longer than any of the other models, and the toast was still underdone. It did much better on the other cooking tasks. The Anova oven fits a dozen cookies, and they baked quickly and evenly. We had the same experience with pizza: fast and even cooking. But, the oven really excelled at roasting a whole chicken. It completed the task in under an hour. The skin was crispy and flavorful, and the meat was moist and delicious. I particularly liked that the thermometer let me monitor the internal temperature of the chicken in the app. What else we tested We tested eight toaster ovens for this guide. These are the ones that missed the cut.What else we recommend and why:Hamilton Beach Countertop (Model 31401 - $59.99): There are two main reasons why you should consider the Hamilton Beach toaster oven. First, at $50, it's the cheapest model we recommend. Second, it was one of the best at quickly preheating. Plus, it was in the middle of the pack in our toasting, cookie, and temperature variance tests. However, there are a few negatives. The oven is small, only fitting four slices of bread. It also took the longest to cook pizza and chicken.Dash Chef Series 7-in-1 (Model DAFT2350GBGT01 - $129.64): There's a lot to like about the Dash toaster oven, but it just wasn't the best in any category. It has convection cooking/air frying and did an outstanding job baking cookies and pizza. The Dash oven was also one of the fastest to roast a chicken and one of the most even toasters. Yet, it took a long time to toast, parts of the chicken skin were burnt, the unit took longer than most to preheat, and it had the largest variance in temperature during our tests.Emeril Lagasse Power AirFryer 360 (Model S∙AFO-001 - $173): Though we prefer to roast our chicken on a roasting pan, we like that this toaster oven from superstar chef Emeril Lagasse comes with a rotisserie spit. It also has an easy-to-use knob control system with backlit digital display. The Power AirFryer 360 preheated quickly and did a good job with chicken, pizza, and cookies, but it took a long time to toast and was uneven. It also did the worst in our temp variance test.What we don't recommend and why:Panasonic FlashXpress Compact (Model NB-G110P - $126.15): We really wanted to like this attractive toaster oven because it looks like something you might find in a child's kitchen playset. It did the best job toasting and maintaining a consistent temperature. However, it was a pain to use. There are only eight temperature settings, and the timer only goes to 25 minutes. If you want to cook anything longer, you have to keep resetting the timer. Despite its small size, it took a long time to preheat. And, it didn't do well making cookies, pizza, or chicken. Our testing methodology James Brains/Insider I tested all of the toaster ovens in this guide. I put each through many objective tests, and during the testing period, my traditional oven sat idle as I relied exclusively on the toaster ovens. When testing toaster ovens, the most important factors to consider are ease of use, temperature accuracy and consistency, and how quickly it preheats.Here are the main attributes we look for and how we test them:Ease of use: I evaluate ease of use several ways. First, I look at how intuitive the functions are. I was able to get all but the Anova up and running without the use of instructions. I see how easy it is to clean each, if there's a removable crumb tray, if there are a few rack positions for different types of cooking, and if the timer allows you to run the unit for extended periods. I also looked for helpful functions, such as smart connectivity, convection/air fry cooking, and steam. Temperature variance: When you set a toaster oven to 350 degrees Fahrenheit, you want it to reach that temperature and stay there. To assess this, I set each unit to 350 degrees and took digital readings of the temperature every 15 minutes for two hours. Then, I looked at the average and range of the temperatures. All of the models I tested averaged less than 350 degrees. The median was about 336 degrees, and the median range was 9.7 degrees.Preheating: One of the main benefits of a toaster oven is that it preheats faster than a standard oven, and thus, you can enjoy your meal faster. I timed how quickly each oven reached 350 and 425 degrees, repeating each test several times, to see which models preheated fastest. Most models reached 350 in under six minutes, and half of the units had trouble even achieving a reading of 425 degrees.Cooking performance: I put each toaster oven through four cooking tests:Toasting bread: I evaluated how many slices of Hillbilly Old Fashion Bread each model held. Then, I set the controls to toast the bread to a medium shade. I looked at how long and how evenly each toasted.Frozen Pizza: In addition to evaluating how large of a pizza each unit can fit, I timed how long it took to bake the pizza and how even it turned out. I used Kirkland Signature Pepperoni Pizza in all but two of the toaster ovens. The Hamilton Beach and Panasonic models couldn't fit the 10.5-inch pizza so I used Totino's Party Pizzas in those models instead.Whole chicken: I cooked a whole chicken (between 3.5 and 4.5 pounds) according to the recipe in Toaster Oven Takeover. I used the Meater Block to monitor the internal temperature and removed the chicken once it hit 165 degrees. I timed how long it took to cook the chicken, how evenly it was cooked, and how different parts of the chicken tasted.Cookies: I baked gluten-free chocolate chip cookies using a homemade dough and evaluated how quickly and evenly they cooked. What we’re testing next We're always testing new toaster ovens and retesting our top picks to determine the best ones. Here's what we're looking forward to testing for potential inclusion in this guide:Chefman Toast-Air (Model RJ50-SS-T - $124.99): We've tested several Chefman kitchen appliances and have found the manufacturer makes quality products at an affordable price. We like that this features several preset functions and comes with two dehydrator racks, an air fry basket, baking/drip pan, and more.Breville Smart Oven (Model BOV900BSSUSC - $399.99): This is the best upgrade pick in our air fryer guide and appears to be quite similar to our best large-capacity toaster oven pick. I'm curious to see how it stacks up and if it's worth its hefty price tag.Calphalon Quartz Heat Countertop ($229.99): I tested this years ago but wasn't able to put it through our current testing methodology. I'm hoping to give it another try since it performed well, has an attractive appearance, and the digital display has an impressive array of functions and precise presets.Oster (Model TSSTTVMNDG-SHP-2 - $91.11): We think the Oster Toaster Oven has a chance to contend for the best budget model. It has convection cooking/air frying, an attractive display, easy to read and adjust buttons, and a large capacity. Toaster oven FAQs What are the benefits of using a toaster oven over a standard oven?"When compared to a standard oven, the toaster oven preheats quickly," said Roxanne Wyss, co-author of the toaster oven cookbook Toaster Oven Takeover. "This means it is convenient to use for quick, everyday meals. It also means that it is a 'green choice' as there is no big oven to heat up." "Newer toaster ovens on the market, with electronic controls and even heat, brown food beautifully and cook quickly," added Wyss. "You can place a toaster oven where it is convenient to use, which means at countertop height so no bending or lifting. It also means you can place the toaster oven in the family room or on the bar so it is easy to use for appetizers and snacks when friends gather."Additionally, since I started testing toaster ovens more than a month ago, I have not touched my standard oven. Every meal I've wanted to make for my family of four, I've been able to make in a toaster oven.What should I look for when shopping for a toaster oven?Kathy Moore pointed to several tips covered in the Toaster Oven Takeover cookbook she co-authored. "Think about what you want to prepare," said Moore. "Some toaster ovens accommodate larger pans while others do not. Select one that accommodates the pans you own and for the food you would like to prepare."She also suggests thinking about where you will put the toaster oven. "Does it fit under your upper cabinets with room to spare or is it too wide to sit securely on a cart?" added Moore. To help you with this, we list the interior and exterior dimensions of each unit in our guide.Also, think about the settings that are most appealing to your cooking preferences. "If your toaster oven advertises that it has a dehydrating setting, but that is not something you will do, it is not a necessary function," said Moore. "Many now slow cook, but if you typically use a slow cooker and enjoy taking a hot meal in a slow cooker to a gathering, you may never use your toaster oven's slow cook setting. Many people enjoy the toasting settings for bagels while others will enjoy the air fry settings. Evaluate the array of settings offered and be willing to experiment, but do not feel obligated to purchase an oven with settings you may never use."What can I make in a toaster oven?Basically, anything you want to toast, bake, roast, reheat, or broil can be made in the toaster oven. If you have a convection toaster oven, you can also air fry. We recommend using a toaster oven in place of a full-size oven whenever possible since it's usually more energy-efficient and faster.We like to reheat leftovers, especially pizza and French fries. We also turn to the toaster oven when roasting chicken, heating frozen pizza and other frozen foods, roasting vegetables, toasting nuts, and more.To give you an idea of what's possible, some of Wyss's favorite recipes from Toaster Oven Takeover include sheet pan beef fajitas, roasted Brussels sprouts au gratin, roasted fennel with wine and parmesan, family favorite pizza, freezer ready breakfast burritos, baked egg cups, baked french toast, mushroom blue cheese crostini, baked ziti, and Mississippi mud brownies.Is it worth buying a toaster oven?Toaster ovens are worth it. When you consider how versatile this appliance is and that you can get a good one for under $60, it's an obvious choice. A toaster oven is especially worth it if you don't have room for a full-size oven yet you want to be able to bake and toast. A toaster oven replaces several popular kitchen appliances, including an oven, toaster, and air fryer.Even if you have a traditional oven, it's worth having a toaster oven for smaller cooking jobs since you can save on energy costs by not heating as large of a unit. Toaster ovens also preheat faster so you can start enjoying your food faster. And, when the holidays come around and oven space is at a premium, a toaster oven can step in and bake those sides.How long do toaster ovens last?Since a toaster oven is a relatively basic appliance, you can count on it lasting you for several years. Its longevity will depend on how much you use it and how good of care you take of it. But, a good way to estimate how long any product will last is to look at its warranty. For example, our top pick has a three-year warranty. All of the models in our guide have a warranty of at least one year. If you want to prolong the life of your toaster oven, we recommend wiping down the interior regularly, including emptying the crumb tray.  Toaster oven vs. toaster Wyss believes toaster ovens are superior to toasters in several ways. "The versatility of the toaster oven outshines the regular toaster," said Wyss. "You can toast a wide variety of bread sizes and often toast the number of slices you need for a larger family. Once toasted, you can top the toast with sandwich fixings or appetizer spreads so hot sandwiches or crostini are ready to serve in minutes. The toaster oven easily toasts English muffins, bagels, rolls, and a wide range of specialty rolls, pastries and buns."As with the standard oven, I found my toaster gathered dust while I was testing toaster ovens. The single-purpose toaster just didn't seem worth the counter space. And, when making BLTs, it was nice to be able to toast six or more slices of bread at once.However, there are a few key ways in which a toaster is often superior. First, most of the toaster ovens I tested didn't toast as evenly or as quickly as most toasters. Second, toasters tend to cost much less than toaster ovens. Lastly, they take up less countertop space. Toaster oven vs. air fryer Many convection toaster ovens are now marketed as air fryers. You should know that "convection cooking" and "air frying" are the same thing. Both methods brown your food by using heat and a fan. So, if you see that a toaster oven is an "air fryer," know that it also does convection cooking and vice versa. We use both terms in our guide. So, what's the difference between the two? Convection toaster ovens give you the option of baking or broiling, while air fryers tend to only have one function: convection cooking. Also, the typical toaster oven is larger than an air fryer and fits more food. That said, not all toaster ovens can air fry, or convection cook, but a lot of them can these days. If this is a feature that's important to you, look for a model that advertises that it air fries or convection cooks. In my experience, this is a useful feature. It can cut down on cooking times, give your food a nice browned exterior, and I've found it does an excellent job of revitalizing leftovers, especially pizza and french fries. If you have a convection toaster oven, you don't need to buy a separate air fryer. Check out our other buying guides for small appliances Amazon; Alyssa Powell/Insider The best air fryersThe best toastersThe best Instant Pots and electric pressure cookersThe best microwaves Read the original article on Business Insider.....»»

Category: personnelSource: nyt13 hr. 34 min. ago

Nintendo Switch Online is getting new features and a new price - here"s how it works

With a Nintendo Switch Online membership you can play online multiplayer games on your Nintendo Switch, along with a selection of classic games. You can sign up for a weeklong trial of Nintendo Switch Online. Nintendo With a Nintendo Switch Online membership you can play online multiplayer games on your Nintendo Switch. A basic Nintendo Switch Online membership is $19.99 for a year, while the "Expansion Pack" plan is $49.99. Nintendo Switch Online also gives you access to dozens of free games, including classics from the Nintendo 64. Visit Insider's Tech Reference library for more stories. If you want to make the most of your Nintendo Switch experience, then you need a Nintendo Switch Online subscription.Nintendo Switch Online gives you unlimited access to online multiplayer, which is great for games like Super Smash Bros. Ultimate, and necessary to play online-only games like Among Us.Quick tip: Some online-only games, like Fortnite and Pokemon UNITE, can be played even without a membership.You can sign up for Nintendo Switch Online using your Switch, or straight from your computer or phone. Here's how much Nintendo Switch Online costs, and some of the exclusive features you'll unlock with your membership.How much is Nintendo Switch Online?There are two Nintendo Switch Online membership tiers: The basic subscription and the "Expansion Pack" subscription. The Expansion Pack will launch on October 25th, and has all the same features of the basic plan, along with some extras that we'll explain below.A basic Nintendo Switch Online subscription costs $3.99 a month, $7.99 for three months, or $19.99 for a year.A Nintendo Switch Online + Expansion Pack subscription costs $49.99 for a year - there's no monthly option. This option will become available on October 25th, 2021. A basic Switch Online plan is about $20, while an Expansion Pack plan is about $50. Nintendo If you're planning on sharing your account, you can also sign up for a Family Membership, which gives up to eight Nintendo Account holders online access for a year. This raises the prices to $34.99 for a basic subscription, and $79.99 for an Expansion Pack subscription. Again, there's no monthly version.No matter which version you pick, you can try Nintendo Switch Online for free for seven days.What a Nintendo Switch Online membership offersLive multiplayer actionA Nintendo Switch Online account lets you play multiplayer games online with gamers from all around the world. This is the service's most important feature, and probably the one that you'll use the most.Quick tip: If the game you're playing has local multiplayer, you can still play that mode without Nintendo Switch Online. You'll need to have all the players in the same room together, though. Having online multiplayer can massively enhance some games. For example, it unlocks competitive tournaments in Pokémon Sword and Shield, and new game modes in Super Smash Bros. Ultimate. Some online-only games require Nintendo Switch Online just to play them - this includes megahits like Among Us and Overwatch. You'll need a subscription to play online in games like Super Smash Bros. Ultimate. Nintendo; Sora Ltd. New battle royale gamesWhen Nintendo Switch Online first launched, it came with an exclusive game: Tetris 99. This is a battle royale version of Tetris that pits you in a survival contest against 99 other players at once. Tetris 99 is exclusive to Nintendo Switch Online. Nintendo Since then, they've also released PAC-MAN 99 and Super Mario Bros. 35, two more modernized versions of classic games.These games are free, but you can only download and play them with a Switch Online membership.Classic Nintendo gamesOne of Nintendo Switch Online's most acclaimed features is its library of classic games. A subscription gives you free access to dozens of these games, which were originally released in the late 1980s and 90s but have been remastered specifically for play on the Switch. A selection of SNES games available for Switch Online members. Nintendo The basic Switch Online plan gives you games from the Nintendo Entertainment System and Super Nintendo Entertainment System, like Double Dragon and Mario Kart. The Expansion Pack adds Nintendo 64 and Sega Genesis games, like The Legend of Zelda: Ocarina of Time and Ecco the Dolphin.You can also play most of these games online with people on your Switch friends list, giving you a brand new way to experience the classics.Backup save dataSwitch Online automatically uploads all of your save data to Nintendo's servers. This means that even if your console is lost or damaged, you won't lose your progress. It also lets you move between Switch consoles easily, without worrying about which device you've played on more.Just remember that if you unsubscribe from the Nintendo Switch Online service, you'll need to resubscribe within 180 days or your cloud saves will be erased.Expansion Pack members get free DLC for popular gamesUsers who've signed up for the Nintendo Switch Online + Expansion Pack plan also have access to downloadable content for certain games.As of this writing, Expansion Pack users who play Animal Crossing: New Horizons will receive the Happy Home Paradise DLC for free. This DLC costs $24.99 by itself. Animal Crossing: New Horizons offers a DLC package to Expansion Pack members. Nintendo There's a good chance that more games will distribute DLC this way in the future.Use the Nintendo Switch Online app Nintendo Switch Online also includes the Nintendo Switch Online app for iPhone and Android, which lets you check your in-game stats and voice chat with other app users.Certain games, like Animal Crossing: New Horizons, gain new features when connected to the Nintendo Switch Online app too.Steven John contributed to a previous version of this article.Yes, the Nintendo Switch has Bluetooth - here's how to connect a headset or new controllerHow to sync Nintendo Switch controllers with your system, so that up to eight people can play at onceHow to add friends in 'Animal Crossing: New Horizons' and have them visit your in-game islandHow to add friends in 'Animal Crossing: New Horizons' and have them visit your in-game islandRead the original article on Business Insider.....»»

Category: worldSource: nyt16 hr. 34 min. ago

These 3 Integrated Majors Are Leading the Energy Transition Race

There are abundant opportunities for energy companies with a footprint in oil and gas resources and the renewable energy space. Three such companies are BP, Royal Dutch Shell plc (RDS.A) and Eni SpA (E). Economies across the world are gradually transitioning to cleaner energy sources. There has been a steady increase in pressure on energy companies to act on climate change on multiple fronts. Most analysts believe that although renewable energy will meet future energy needs, this will not completely wipe out oil and natural gas demand. Demand for fossils fuels will also grow but at a slower pace.The U.S. Energy Information Administration (EIA), in its International Energy Outlook 2021, revealed that global demand for renewables through 2050 will be the highest. Over the period, demand for oil and natural gas will also grow, although the pace of growth will not be like renewables, on the back of an expanding population and fast-growing economies, added EIA.  Thus, there are abundant opportunities for energy companies with a footprint in oil and gas resources and the renewable energy space. Three such companies are BP plc BP, Royal Dutch Shell plc (RDS.A) and Eni SpA E.BP plc, a British energy giant, is planning to become a net-zero emissions player by 2050 or earlier. The integrated company intends to invest and boost its renewable energy generation capacity to 20 gigawatts (GW) by 2025. The company also has strong upstream and downstream activities, aided by recovering oil price and fuel demand.Royal Dutch Shell also has the same ambitious target of becoming a net-zero emissions energy player by 2050 or earlier. The integrated energy company is expanding its presence in solar energy generation capabilities and foreseeing great potential in energy generations from offshore and onshore wind. The company also has sizable exposure to upstream and refining operations.Eni is also leading the energy transition. The integrated energy player has an ambitious plan of reaching 60 GW of installed renewable energy capacity by 2050. This suggests a massive improvement from 1 GW of installed and sanctioned capacity last year. By 2050, it is planning for net-zero Scope 1, 2 and 3 greenhouse gas emissions. The massive crude price recovery is aiding Eni’s upstream energy business since the company is targeting a compound annual production growth rate of 4% through 2024 since 2020. Eni’s other impressive plan for the upstream business is targeting new discoveries of 2 billion barrels of oil equivalent through 2024 since 2021. 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 BP p.l.c. (BP): Free Stock Analysis Report Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report Eni SpA (E): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks18 hr. 18 min. ago

Prologis (PLD) Beats Q3 FFO Estimates, Raises 2021 Guidance

Prologis (PLD) puts up a decent show in Q3 on robust activity and rent growth. The company boosts its 2021 outlook. Prologis, Inc. PLD has reported third-quarter 2021 core funds from operations (FFO) per share of $1.04, beating the Zacks Consensus Estimate of $1.03. It also compares favorably with the year-ago quarter’s figure of 90 cents.Results reflect solid increases in market rents and valuations amid unprecedented low vacancies in its markets. Further, the industrial REIT hiked its 2021 outlook.Prologis generated rental revenues of $1,037.3 million, up from the prior-year quarter’s $980.1 million. The Zacks Consensus Estimate for the same was pegged at $1,034.5 million. Total revenues were $1.18 billion, up from the year-ago quarter’s $1.08 billion.Per Hamid R. Moghadam, chairman and CEO of the company, "Our third quarter results were underpinned by record increases in market rents and valuations."Quarter in DetailThe average occupancy level in Prologis’ owned and managed portfolio was 96.6% in the third quarter, expanding 60 basis points (bps) from second-quarter 2021. Moreover, the company’s owned and managed portfolio was 98.0% leased as of Sep 30, 2021.In the quarter under review, 49.5 million square feet of leases commenced in the company’s owned and managed portfolio, with 42.1 million square feet in the operating portfolio and 7.4 million square feet in the development portfolio. The retention level was 79.3% in the quarter.Prologis’ share of net effective rent change was 27.9% in the July-September quarter. Cash rent change was 12.9%. Cash same-store net operating income (NOI) grew 6.7% and was driven by the United States business at 6.9% and the International business at 5.9%.The company’s share of building acquisitions amounted to $373 million, with a weighted average stabilized cap rate of 5.0% in the reported quarter. Development stabilization aggregated $368 million, while development starts totaled $1,449 million, with 60.3% being build to suit. The company’s total dispositions and contributions were $732 million, with a weighted average stabilized cap rate (excluding land and other real estates) of 4.1%.LiquidityPrologis exited third-quarter 2021 with cash and cash equivalents of $585.1 million. Its liquidity amounted to $5.5 billion in cash and availability on its credit facilities. Debt, as a percentage of total market capitalization, was 16.7%. The company's weighted average interest rate on its share of total debt was 1.8%, with a weighted average term of 10.4 years. The combined investment capacity of Prologis and its open-ended ventures, in line with their current ratings, is roughly $15 billion.The company and its co-investment ventures issued $1.3 billion of debt in the third quarter at a weighted average interest rate of 2.1%. This included $169 million in green bond raises.OutlookPrologis has revised its 2021 core FFO per share guidance to $4.11-$4.13 from the $4.04-$4.08 mentioned earlier, marking a 1.5% increase at the mid-point. The Zacks Consensus Estimate for the same is currently pegged at $4.07.The company expects average occupancy of 96.25-96.75%, which has been unrevised. Cash same-store NOI (Prologis share) is projected to be 5.75-6.00%, up from the previously mentioned 5.25-5.75%.The company anticipates $1.2-$1.4 billion of building acquisitions at Prologis share compared with the $700-$900 million stated earlier. Development starts are expected to be $3.5-$3.8 billion compared with the $3.05-$3.35 billion mentioned earlier.Prologis currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Prologis, Inc. Price, Consensus and EPS Surprise  Prologis, Inc. price-consensus-eps-surprise-chart | Prologis, Inc. QuoteWe now look forward to the earnings releases of other REITs, including Crown Castle International Corp. CCI, SL Green Realty Corp. SLG and Alexandria Real Estate Equities, Inc. ARE. While Crown Castle and SL Green are slated to release third-quarter 2021 results on Oct 20, Alexandria Real Estate is scheduled to report its numbers on Oct 25.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. 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 Prologis, Inc. (PLD): Free Stock Analysis Report Crown Castle International Corporation (CCI): Free Stock Analysis Report SL Green Realty Corporation (SLG): Free Stock Analysis Report Alexandria Real Estate Equities, Inc. (ARE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks18 hr. 18 min. ago

Beacon Roofing (BECN) Gains From Digital Efforts, Costs High

Beacon Roofing (BECN) benefits from demand in the residential housing market and focuses on enhancing digital platforms. However, coronavirus-related woes and stiff competition remain concerns. Beacon Roofing Supply, Inc. BECN is gaining from continued focus on enhancing digital platforms, disciplined cost management efforts and strategic initiatives. Also, a robust residential backdrop is expected to drive growth.However, inflationary pressure, coronavirus-related woes and stiff competition remain concerns. Also, weather-related challenges may jeopardize its profitability.  Let’s delve deeper.Factors Driving GrowthContinuous Focus on Productivity Enhancement & Digital Space: Beacon Roofing remains focused on its employees with additional tools and training enhancing overall productivity, including TRI-BUILT private label offering. Also, the company is targeting a new customer base, which includes building bonds with national accounts, large retailers and 2-step customers.Notably, the company is gaining strength from the successful implementation of technology in the developing e-commerce platform. The company’s digital platform achieved 10% of the its sales during fiscal 2020. It is on track with the long-term target of generating $1-billion annual digital sales. During third-quarter fiscal 2021, the company witnessed rising adoption rates across its digital platforms. The company had nearly 50% more active users of its online platform in the third quarter fiscal of 2021 than last year. Digital sales contributed to 14% of the company’s net sales during third-quarter fiscal 2021.Cost-Cutting Efforts: Beacon Roofing is moving forward with the integration of the Allied Building Products acquisition. The company is taking various initiatives to secure the best supply arrangement from vendors on a market-by-market basis. The company is also going through an employee transition phase and this process has just started to contribute positively to a reduction in operating costs. During third-quarter fiscal 2021, the company’s gross margin of 27.6% improved 380 basis points (bps) year over year and adjusted EBITDA margin improved 390 bps year over year. This upside is mainly attributable to the successful implementation of price increase, strong demand, and cost-control strategies. During the same period, SG&A expenses as a percentage of net sales contracted to 15.8% or 20 bps from a year ago. For fiscal 2021, the company expects adjusted EBITDA in the range of $635-$650 million from continuing operations, reflecting a significant increase from $399 million pro-forma adjusted EBITDA in fiscal 2020. Relentless cost-reduction and productivity initiatives helped the company reduce operating expenses and optimize margins.Focus on Core Business: In a bid to enhance financial flexibility and sharpen focus on the core exteriors business, Beacon Roofing divested the Interior Products business. This will help the company return to its legacy position as a focused leader with an exterior building products distribution. Notably, 80-85% of the company’s continuing business will be within residential and commercial roofing. Last year, the company undertook a strategic review decision. Under this, the company integrated 40 brands across the United States and Canada that sell exterior products under Beacon Building Products. The company’s strategic decisions continue to gain momentum and are delivering measurable results. The company’s primary growth plan includes improved sales growth, operational efficiency and profitability. In line with its plan, the company remains focused on four key strategic initiatives — organic growth, digital, OTC (On-Time and Complete) and branch operating performance — that have been boosting sales and helping improve operating profitability. Furthermore, the company prioritizes improving sales and operating performance at exterior and interior branches, and intends to enhance overall customer experience with increased scope and scale of business. It is improving sales and operating performance at exterior and interior branches and intends to enhance overall customer experience with increased scope and scale of business.Robust R&R Activity: Of late, Beacon Roofing has been observing an increased demand for housing and repair and remodel activities amid COVID-related restrictions. Housing markets have been showing resilience of late, given low mortgage rates. With the opening of the economy, demand for housing and building material products is improving, given the increasing trend of consumers to invest more in homes amid the pandemic. The momentum is expected to continue, which in turn will boost demand for Beacon Roofing’s products. The revival of housing demand has been a boon for Beacon Roofing and other industry players like Builders FirstSource, Inc. BLDR, Fastenal Company FAST and Lowe's Companies, Inc. LOW.ConcernsBeacon Roofing’s work is performed outdoors and is based on repair and remodeling activity. It is vulnerable to COVID-induced economic disruptions. About 70-75% of overall sales and more than 80% of the roofing business is R&R-based and largely non-discretionary. Though the company has regained financial strength and operational flexibility, COVID-related restrictions may still weigh on its results. During third-quarter fiscal 2021, Beacon Roofing incurred $0.4 million in SG&A expenses related to the pandemic.Of late, the company has been observing higher input costs. Despite undertaking various cost-saving initiatives, the company continues to see inflationary pressure across most product categories. During third-quarter fiscal 2021, the company’s cost increases for several product categories. 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 Fastenal Company (FAST): Free Stock Analysis Report Lowe's Companies, Inc. (LOW): Free Stock Analysis Report Beacon Roofing Supply, Inc. (BECN): Free Stock Analysis Report Builders FirstSource, Inc. (BLDR): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks18 hr. 18 min. ago

Wall Street Analysts See a 69% Upside in MacroGenics (MGNX): Can the Stock Really Move This High?

The average of price targets set by Wall Street analysts indicates a potential upside of 69.5% in MacroGenics (MGNX). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock. Shares of MacroGenics (MGNX) have gained 0.3% over the past four weeks to close the last trading session at $21.05, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $35.67 indicates a potential upside of 69.5%.The mean estimate comprises six short-term price targets with a standard deviation of $9.97. While the lowest estimate of $17 indicates a 19.2% decline from the current price level, the most optimistic analyst expects the stock to surge 109% to reach $44. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.But, for MGNX, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.Price, Consensus and EPS SurpriseHere's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.Here's Why There Could be Plenty of Upside Left in MGNXAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 0.7%.Moreover, MGNX currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Therefore, while the consensus price target may not be a reliable indicator of how much MGNX could gain, the direction of price movement it implies does appear to be a good guide. 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 MacroGenics, Inc. (MGNX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks18 hr. 18 min. ago

Wall Street Analysts See a 215% Upside in TScan Therapeutics, Inc. (TCRX): Can the Stock Really Move This High?

The average of price targets set by Wall Street analysts indicates a potential upside of 214.5% in TScan Therapeutics, Inc. (TCRX). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock. Shares of TScan Therapeutics, Inc. (TCRX) have gained 2.4% over the past four weeks to close the last trading session at $6.89, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $21.67 indicates a potential upside of 214.5%.The mean estimate comprises three short-term price targets with a standard deviation of $0.58. While the lowest estimate of $21 indicates a 204.8% increase from the current price level, the most optimistic analyst expects the stock to surge 219.3% to reach $22. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.But, for TCRX, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.Here's Why There Could be Plenty of Upside Left in TCRXAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 0.1%.Moreover, TCRX currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Therefore, while the consensus price target may not be a reliable indicator of how much TCRX could gain, the direction of price movement it implies does appear to be a good guide. 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 TScan Therapeutics, Inc. (TCRX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks18 hr. 18 min. ago

Wall Street Analysts See a 29% Upside in Thor Industries (THO): Can the Stock Really Move This High?

The average of price targets set by Wall Street analysts indicates a potential upside of 29.2% in Thor Industries (THO). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock. Thor Industries (THO) closed the last trading session at $111.22, gaining 1.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $143.71 indicates a 29.2% upside potential.The mean estimate comprises seven short-term price targets with a standard deviation of $7.23. While the lowest estimate of $130 indicates a 16.9% increase from the current price level, the most optimistic analyst expects the stock to surge 34.9% to reach $150. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.However, an impressive consensus price target is not the only factor that indicates a potential upside in THO. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.Price, Consensus and EPS SurpriseHere's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.Here's Why There Could be Plenty of Upside Left in THOAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.The Zacks Consensus Estimate for the current year has increased 20.4% over the past month, as six estimates have gone higher compared to no negative revision.Moreover, THO currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Therefore, while the consensus price target may not be a reliable indicator of how much THO could gain, the direction of price movement it implies does appear to be a good guide. 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 Thor Industries, Inc. (THO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks18 hr. 18 min. ago

Does ABM Industries (ABM) Have the Potential to Rally 25% as Wall Street Analysts Expect?

The mean of analysts' price targets for ABM Industries (ABM) points to a 25.4% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock. ABM Industries (ABM) closed the last trading session at $46, gaining 0.2% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $57.67 indicates a 25.4% upside potential.The average comprises three short-term price targets ranging from a low of $55 to a high of $60, with a standard deviation of $2.52. While the lowest estimate indicates an increase of 19.6% from the current price level, the most optimistic estimate points to a 30.4% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.But, for ABM, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.Price, Consensus and EPS SurpriseHere's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.Why ABM Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 0.1%, as one estimate has moved higher compared to no negative revision.Moreover, ABM currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Therefore, while the consensus price target may not be a reliable indicator of how much ABM could gain, the direction of price movement it implies does appear to be a good guide. 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 ABM Industries Incorporated (ABM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks18 hr. 18 min. ago

Can Accel Entertainment (ACEL) Climb 29% to Reach the Level Wall Street Analysts Expect?

The consensus price target hints at a 28.7% upside potential for Accel Entertainment (ACEL). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term. Accel Entertainment (ACEL) closed the last trading session at $12.04, gaining 3.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $15.50 indicates a 28.7% upside potential.The average comprises four short-term price targets ranging from a low of $13 to a high of $20, with a standard deviation of $3.11. While the lowest estimate indicates an increase of 8% from the current price level, the most optimistic estimate points to a 66.1% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.But, for ACEL, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.Price, Consensus and EPS SurpriseHere's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.Why ACEL Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 0.5%.Moreover, ACEL currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Therefore, while the consensus price target may not be a reliable indicator of how much ACEL could gain, the direction of price movement it implies does appear to be a good guide. 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 Accel Entertainment, Inc. (ACEL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks18 hr. 18 min. ago

"The Revenge Of The Fossil Fuels"

"The Revenge Of The Fossil Fuels" Authored by James Rickards via DailyReckoning.com, What have the climate alarmists been screaming about for the past 40 years or so? Their agenda is well-known. They want to close nuclear plants; shut down coal electric generators; eliminate natural gas and oil-fired electrical plants; and substitute wind, solar and hydropower in their place. According to the fanatics, this substitution of renewable energy sources for so-called “fossil fuels” and uranium-powered plants would reduce CO2 emissions and save the planet from the existential threat of global warming. Everything about this climate alarmist agenda is a fraud. The evidence that the planet is warming is slight and the effect is likely temporary with global cooling in the forecast. The contribution of CO2 emissions to any global warming is not clear and is at best unsettled science and at worst another fraud. Most importantly, global energy demand is growing much faster than renewables can come online, meaning that oil, natural gas, clean coal and nuclear energy will be needed whether renewables grow or not. Wind and Solar Won’t Cut It Wind turbines and solar panels cannot be the backbone of a modern energy grid because they are intermittent sources. Wind turbines require continual wind and solar panels require continual sunlight. Turbines don’t produce when the wind stops. Solar panels don’t produce at night or on cloudy days. I have firsthand experience with this because I once built the largest off-grid noncommercial solar panel array in New England. You learn quickly to do laundry, run the dishwasher and use other high-energy electrical appliances on sunny days because you’ll need to conserve your batteries through the snow and rain. A grid can’t run on intermittent sources; it needs continuous sources of energy that only come from oil, gas, coal and nuclear. Despite these scientific and practical hurdles, the climate alarmists have been very effective politically. Many countries such as Germany and Japan have shut down nuclear and coal plants in an effort to substitute renewables in major industrial economies. Now the day of reckoning has arrived. Billions of People Freezing in the Dark China is quickly running out of electrical-generating capacity. China gets more than 50% of its electricity from coal, but it is running out of coal. China has had to lift its ban on Australian coal imports (arising from a dispute about tracing the source of the COVID outbreak) and it’s now taking as much Australian coal as it can get. A similar situation exists in Germany where the failure of renewables to provide a reliable source of supply combined with a shutdown of nuclear plants have led to dependence on Russian natural gas. Putin is slowly closing the taps to increase Europe’s desperation. The price of natural gas in Europe is skyrocketing. In Lebanon, the two power plants that supply 40% of that country’s electricity have shut down due to oil shortages. There is no electricity and probably won’t be for days. Many will die this winter as power outages spread and as heating systems fail. The global economy will also suffer due to decreased output as China and Europe both close factories in order to conserve electricity for homes. This is what the climate alarm fanatics have produced — billions of people freezing in the dark and a slowing global economy — all in pursuit of the false dogma of global warming. Thanks, Biden It turns out the world still needs fossil fuels, and lots of them. “Green” energy just isn’t ready for prime time, and probably won’t be for decades. The International Energy Agency has said that if the world hopes to meet a net-zero carbon emissions target in 2050, it should stop investing in oil, gas and coal production now. The Biden administration, along with European leaders primarily, has sought to cripple the fossil fuel industries while incentivizing wind and solar. The result is serious underinvestment in oil and natural gas exploration. As journalist Noah Rothman writes, you can point a finger at policymakers: The intended consequence of these [Biden] policies was to create artificial energy scarcity and incentivize alternative fuel producers to enter the marketplace. “If you restrict the supply (of oil and gas), you alter the market and you create a better environment for more sustainable fuels,” New York University professor Max Sarinsky told The Associated Press. This was all part of the plan, to the extent there was a plan. So yes, there’s a lot of blame to go around if… a dark, cold and scary winter materializes. No small share of that blame should be apportioned out to the central planners who sought to kneecap the existing energy market in favor of an insufficient alternative. As our senior analyst, Dan Amoss, affirms: If predictions of oil’s demise are off the mark by a decade or three, there will be very painful, real-world consequences in the form of underinvestment in the oil patch. Underinvestment in oil projects as oil companies chase wind and solar could lead to trade-crippling, market-crashing gasoline and diesel prices. “This Is the Revenge of the Fossil Fuels” The ironic part, as others have noted, is that the suppression of oil, natural gas and nuclear energy has led to a dramatic increase in the dirtiest fossil fuel of all — coal. As Bloomberg reports: For nearly a decade, it appeared in terminal decline as investors shunned miners and European countries shut down coal-fired power plants. And yet the world’s dirtiest fossil fuel won’t go away. Global consumption peaked in 2014, but rather than fall rapidly, as many expected, it stabilized in a gentle plateau. And now, just as the fight against climate change intensifies, it’s growing again, with the resurgence largely driven by China. “This is the revenge of the fossil fuels,” said Thierry Bros, an energy expert and professor in Paris. So much for the Great Reset and “building back better.” This is just another example of how bureaucratic central planning often backfires and produces the very outcome it’s supposed to prevent. You can look to the endless five-year plans of the Soviet Union for examples. And it’s even worse at the global level because there’s no escape valve. Countries must follow the same policies, no matter how destructive they turn out to be. As With Vaccine Dissent, Google Bans Climate Dissent It’s all part of the climate change hysteria that global elites have embraced. And of course, Big Tech is all too eager to suppress dissent. The Big Tech companies have suppressed information about the widespread side effects and several thousand deaths of the experimental gene-therapy COVID vaccines. These companies have become censors. Now they’re extending the practice to climate change… Google is banning ads featuring content that contradict what it considers “inaccurate” information on climate change and will no longer allow ad revenue to come from them. “Inaccurate” information includes content such as “denying that long-term trends show the global climate is warming, and claims denying that greenhouse gas emissions or human activity contribute to climate change.” But as I explained earlier, the science is far from settled. The best data indicates that carbon dioxide has a limited warming effect, and that the planet may be approaching a cooling trend. And just as Google has relied on the WHO and CDC for information about COVID and the vaccines (which have often proven disastrously wrong), Google will rely on climate information from “authoritative sources.” In other words, from sources like the United Nations’ Intergovernmental Panel on Climate Change (IPCC), which has been a major source of climate alarmism. Unfortunately, these dangerous climate policies are having real-world consequences. I can only imagine how many people they will kill. Tyler Durden Fri, 10/15/2021 - 10:50.....»»

Category: blogSource: zerohedge19 hr. 34 min. ago

Forget health and wellness -- Twinkie parent Hostess will benefit from consumer desire for indulgent snacks

Hostess Brands Inc. was initiated at outperform with a $22 target price at Credit Suisse based on the consumer desire for indulgent snacks that bucks the health and wellness trend. "We believe investors who pigeonhole Hostess as structurally disadvantaged owing to health and wellness trends are not looking closely enough," wrote analysts led by Robert Moskow. Analysts say data shows that consumers are snacking more and they're frequently looking for sweet snacks. "Our conclusion is that event consumers leading healthy lives will frequently consume Hostess products because they view it as a reward," Credit Suisse said. Analysts also think Hostess is undergoing a transformation that will result in a more "consumer-centric" company, with research investments that make marketing more effective and product launches, like Baby Bundts, successful. Hostess stock has rallied nearly 25% for the year to date while the S&P 500 index has gained 19% 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: marketwatch19 hr. 50 min. ago