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IT companies see Vietnam as new production hub

Vietnam is becoming a new manufacturing hub outside of China for many first-tier IT companies......»»

Category: topSource: digitimesJun 24th, 2022

China"s Productive Capacity Is Starting To Slip Away To India And Southeast Asia

China's Productive Capacity Is Starting To Slip Away To India And Southeast Asia Continued lockdowns in China aren't helping the country's ongoing, decade-long, production exodus, a new report from Caixin notes. The accelerating exodus from Asian production powerhouse has been helped along by Covid policy disruptions, rising labor costs and worsening trade tensions between the U.S. and China, the report notes.  Southeast Asia and India are looking to take China's place thanks to low labor costs and rising domestic demand. This falls in line with India's political objectives, where Prime Minister Narendra Modi is pushing a “Made in India” campaign.  As an example, Apple said earlier this year that it had started making its iPhone 13 at a factory in India instead of Taiwanese contract manufacturer Foxconn. Like other smartphone makers, it has an incentive not only for exports, but for domestic sales, the report notes: In India, Chinese smartphone makers set up factories aiming at the huge domestic market. With 1.4 billion people — almost as many as in China — and a high proportion of young people, India has attracted Chinese brands including Xiaomi, Meizu, Vivo and Oppo to build factories. Many Chinese phone part makers have also set up factories there. Now Chinese brands account for nearly two-thirds of India’s smartphone market. But that doesn't mean China doesn't have advantages: it has an enormous domestic market and decades of manufacturing infrastructure and experience, the Caixin report notes. And while no major aftershocks have been felt in China's economy, the trend is heading in the wrong direction for the country.  Li Xingqian, director general of the Ministry of Commerce's Foreign Trade Department said the exodus from China was  “in line with the law of economics.” Exports in the country were up 16.9% in May, the report says, accelerating from April's 3.9%. The country's trade surplus was $78.76 billion in May.  However, thanks to weak demand in developed countries, "export orders for delivery in June and July, usually the peak season for booking goods for the back-to-school and holiday seasons, didn’t come in as expected," the report said. This weak demand was seen in falling shipping rates.  Americans may take until the end of this year to work through inventories that were pulled forward over the last year.  At the same time, President Joe Biden has said that he is considering lifting tariffs on $350 billion a year in Chinese goods. His administration, however, still seems to be divided on the matter and no decision is expected quickly.  The report noted clearly that, to this day, China remains "the world's factory", which is unlikely to change anytime soon: Neither Southeast Asia nor India can replace China as the global manufacturing hub in the near future as they are mainly engaged in labor-intensive and low value-added manufacturing, several foreign trade participants told Caixin. They also face problems such as incomplete industrial chains and low labor efficiency to varying degrees, experts said. To foreign companies, China is not only a manufacturing base but also a huge market, said He Xiaoqing, president of consulting firm Kearney Greater China. In 2020, global companies had $1.4 trillion of domestic sales, far more than their exports of $900 billion, showing the attractiveness of China’s local market, He said. In addition to India, Vietnam has also been a beneficiary of factories leaving China. Imports for the country were up 16.7% for the first five months of this year, data shows. Most of the production moving to Southeast Asia involves textiles, furniture and low-end assembly of consumer electronics, the report said.  Tyler Durden Wed, 06/29/2022 - 18:00.....»»

Category: blogSource: zerohedge15 hr. 10 min. ago

Oil Markets Could Face A Doomsday Scenario This Week

Oil Markets Could Face A Doomsday Scenario This Week Authored by Cyril Widdershoven via Oilprice.com, Expect lots of oil price volatility in the coming months as markets finally discover just how much spare capacity OPEC members really have. Oil production outages in Libya and the continued impact of Russia’s invasion of Ukraine are going to push oil prices higher if new supply isn’t found. While some analysts are predicting oil demand destruction in the near future, there is little evidence to back up those claims. Global oil markets are going to be very volatile in the coming months if news emerging from OPEC’s main producers about production capacity constraints turns out to be true. OPEC will be meeting again in the coming days to discuss its export agreements, while today the oil group is presenting its Annual Statistical Bulletin (ASB) 2022. While the media is likely to be focused on rumors in the next 24 hours of a possible change in the export strategy of OPEC+, the real focus should be on whether or not the oil cartel is even capable of substantially increasing its production.  For years, OPEC producers have been the main swing producers in oil markets. With a presumed spare capacity of more than 3-4 million bpd, Saudi Arabia and the UAE have always been seen as a point of last resort in case of a major crisis in oil and gas markets. During the former global oil glut, it seemed nothing could threaten the oil market, even when major conflicts emerged in Libya, Iraq, or elsewhere. The re-opening of the global economy after COVID-19, however, has brought fear back into the market that leading oil producers, including the USA and Russia, are unable to supply adequate volumes to the market. OPEC kingpins Saudi Arabia and the UAE are now being looked upon to increase production to historically high levels and bring oil prices down. Russia’s war against Ukraine, removing a possible 4.4 million bpd of crude and products in the coming months, has thrown this spare capacity problem into sharp relief.  This week, a possible doomsday scenario could emerge in oil markets, based not only on OPEC+ export strategies but also due to increased internal turmoil in Libya, Iraq, and Ecuador. Possible other political and economic turmoil is also brewing in other producers, while US shale is still not showing any signs of a substantial production increase in the coming months.  Global oil markets have long believed that OPEC has enough spare production capacity to stabilize markets, with Saudi Arabia and the UAE just needing to open their taps. There is ,however, no real evidence to suggest that OPEC has increased production capacity in place in the short term. A research note by Commonwealth Bank commodities analyst Tobin Gorey already noted that OPEC’s two leaders are producing at near-term capacity limits. At the same time, UAE Minister of Energy Suhail Al Mazrouei put even more pressure on oil prices as he stated that the UAE is producing near-maximum capacity based on its quota of 3.168 million barrels per day (bpd) under the agreement with OPEC and its allies. That comment could still indicate that there is some spare capacity left in Abu Dhabi, but the remarks were made after French President Emmanuel Macron had stated to US president Biden during the G7 meeting that not only is the UAE producing at maximum production capacity, but also that Saudi Arabia only has another 150,000 bpd of spare capacity available.  Macron stated that UAE’s president Mohammed bin Zayed (MBZ) told him that the UAE is at maximum production capacity while claiming that Saudi Arabia can increase production by another 150,000 bpd. Macron also claimed that Saudi Arabia won’t have a huge additional capacity within the coming six months. The official figures for both OPEC producers counter this narrative, however. Saudi Arabia is producing at 10.5 million bpd, with official capacity between 12-12.5 million bpd. The UAE is producing around 3 million bpd, claiming to have a capacity of 3.4 million bpd. The two countries’ spare production is still officially slated to be around 3.9 million bpd combined. Most analysts, however, have been questioning these figures for years.  Looking at OPEC+'s own production targets, the group has not been producing at agreed levels for months. At the Middle East and North Africa-Europe Future Energy Dialogue in Jordan, UAE’s Al Mazrouei said that OPEC+ was running 2.6 million barrels a day short of its production target. That means a potential shortage in the market, which could increase even further if internal turmoil causes further production decreases. For July-August, OPEC+ agreed to increase output by another 648,000 bpd, which would mean that the total output cut during COVID-19 pandemic of 5.8 million bpd has been restored. Whether or not OPEC+ is able to reach that level in the coming weeks remains very uncertain.  Pressure will build in the coming days, as Al Mazrouei’s remarks seem to rebuke claims of a spare capacity shortage, but as always “where there is smoke, there is a fire”.  A possible spare production capacity shortage, or non-availability at all, combined with an expected force majeure of Libya’s NOC in the Gulf of Sirte, and a suspension of Ecuador’s oil output (520,000 bpd) in the coming days due to anti-government protests, are likely to lead to an oil price spike.  There is still some optimism in markets about a real demand-supply crunch, as high inflation levels and a possible global economic slowdown could lead to lower demand. Until now, however, that optimism has not materialized at all, demand is still increasing, even though gasoline and diesel prices are breaking historical price levels. The re-opening of the Chinese economy, a natural gas shortage globally, and higher temperatures in the coming weeks, combined with the normal peak in demand due to the US and EU driving season, all look set to push oil prices higher. OPEC’s future is at stake if spare production capacity really has run out. For years, analysts (including myself) have been warning about a lack of investment in upstream worldwide. That has already led to lower production capacity of independent oil companies, such as most IOCs, and for national oil companies, the situation appears to be similar. Even though Saudi Aramco, ADNOC, and some others, have been keeping their upstream (and downstream) investments level during the last decade (even during COVID), other main OPEC producers have seen dwindling investment budgets or even full-scale crises. Most OPEC producers could increase their overall production still, but only for a limited period of time. Where most spare production capacity is short-term based, partly to avoid damaging reserves in the long run, the current oil crisis is a much more prolonged long-term issue. Western sanctions on Russia, combined with existing sanctions on Venezuela and Iran, will hurt markets for years to come.  There is no quick-fix solution to the current oil market crisis, even the lifting of sanctions on Venezuela or Iran will not result in substantial volume increases. At the same time, increased Western political interference in the already struggling market will hit volumes too. The growing call in the USA, UK, and EU, to put a windfall tax on oil and gas companies will not only constrain further investments in upstream but will also lead to higher prices at the pump. Consumers are not going to feel any positive price effects and can expect steadily increasing energy bills in the coming months.  No statements made by OPEC in the coming two days are going to be able to remove the worries in the market. OPEC’s future depends fully on its power to stabilize markets. At present, there appear to be no options available to the cartel. Without new oil production hitting markets soon, OPEC leaders MBZ and Crown Prince Mohammed bin Salman need to try to maintain the illusion of spare capacity. If spare production capacity is revealed to be under 1.5-2 million bpd, the future of both OPEC and oil markets would be bleak. Tyler Durden Wed, 06/29/2022 - 14:05.....»»

Category: blogSource: zerohedge19 hr. 10 min. ago

Equinor (EQNR) to Buy Triton Power as Part of Low-Carbon Plan

Upon the deal closure, Equinor (EQNR) and SSE Thermal will own and operate Triton Power with equal opportunities. Equinor ASA EQNR collaborated with SSE Thermal to acquire power generating company Triton Power for £341 million.The move is part of the initiative taken by European energy companies to clean up their operations and transit to renewable energy.The acquisition involves three U.K. electricity facilities, which will be used to develop low-carbon projects to drive the net-zero transition. The Saltend power station is the main facility acquired with Triton Power, with an installed capacity of 1.2 gigawatts (GW).The Saltend power station is a typical natural gas-powered combined gas turbine plant in Yorkshire. Equinor and SSE Thermal intend to develop the facility to operate on up to 30% hydrogen from 2027. The companies plan to have the facility operating on 100% hydrogen in the future, which can be derived from Equinor’s Hydrogen to Humber (H2H) Saltend decarbonization project.Triton Power is part of Equinor’s H2H Saltend decarbonization project. The project involves the construction of a blue hydrogen plant in northeast England, which has a hydrogen production capacity of 0.6 GW.Upon the deal closure, Equinor and SSE Thermal will own and operate Triton Power with equal opportunities. The companies are already developing hydrogen power plants, hydrogen storage and conventional combined gas turbine with carbon-capture facilities in Keadby and Peterhead in Scotland.The latest acquisition reflects Equinor’s dedication to developing a strong energy partnership with the U.K.  The flexibility of the power system is crucial as the demand for clean energy is expected to significantly grow over the coming years. The companies will explore ways to decarbonize Saltend and create opportunities at other assets to play a continued role in a net-zero future.Price PerformanceShares of Equinor have outperformed the industry in the past six months. The stock has gained 34.4% compared with the industry’s 29% growth. Image Source: Zacks Investment Research Zacks Rank & Stocks to ConsiderEquinor currently carries a Zack Rank #3 (Hold).Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Matador Resources Company MTDR is among the leading oil and gas explorer in unconventional resources in the United States. MTDR has hedging deals for 2022 oil and gas production in place, which will help it to navigate through any weak price environment.Matador has a strong focus on returning capital to shareholders. MTDR recently announced a quarterly cash dividend of 10 cents per share, which doubled from the cash dividend of 5 cents initiated last year.Range Resources Corporation RRC is among the top 10 natural gas producers in the United States. The upstream energy firm expects the free cash flow to exceed $1.4 billion this year, which could be the highest among Appalachian players.Range Resources has reinstated its regular quarterly cash dividend, expected to start in the second half of this year. The company anticipated its annual dividend rate at 32 cents per share. RRC’s board of directors approved the authorization of a $500-million share repurchase program, which is likely to be funded with the company’s free cash flow generation.Phillips 66 PSX is the leading player in each of its operations like refining, chemicals and midstream in terms of size, efficiency and strengths. Precisely, it has an oil and gas pipeline network of 22,000 miles, which is expected to increase in the coming days.Phillips 66 has hiked its quarterly dividend to 97 cents per share, representing an increase of 5% from the prior quarter. With the recent resumption of the stock repurchase program, the increment in the quarterly dividend represents Phillips 66’s strong focus on returning capital to stockholders. Since the company’s inception in 2012, this has resulted in its 11th annual dividend hike. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Range Resources Corporation (RRC): Free Stock Analysis Report Phillips 66 (PSX): Free Stock Analysis Report Matador Resources Company (MTDR): Free Stock Analysis Report Equinor ASA (EQNR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks19 hr. 38 min. ago

Whirlpool (WHR) to Incur Losses Due to Sale of Russia Business

Whirlpool (WHR) is expected to incur a loss of $300-$400 million in Q2 due to the sale of its Russia operations. Whirlpool Corporation’s WHR subsidiary Whirlpool EMEA SpA is selling its Russian operations to Arçelik A.?? for $220 million. The sale will include the manufacturing site in Lipetsk, Russia, the sales organization in Moscow, and sales operations in Kazakhstan and other select Commonwealth of Independent States.The deal transaction is likely to be concluded by the third quarter of 2022 and the deferred payment will take more than ten years to complete. Post the divestiture, Whirlpool will likely incur a loss of $300-$400 million in the second quarter of 2022.The move comes following WHR’s decision to scale down its operations in Russia, as its invasion of Ukraine resulted in limited production. According to sources, foreign companies are accelerating their exit from Russia due to a new law, which is likely to allow Moscow to seize assets and impose criminal penalties.Some other notable U.S.-based companies that have opted to leave Russia are McDonald’s MCD, Nike NKE and Cisco CSCO.In May, McDonald’s announced the sale of its Russia business to its existing licensee Alexander Govor.  Post the deal, Govor will operate the restaurants under a new brand. Current employees are likely to be retained for at least two years and the salaries of corporate employees of Russia will be funded by him until the deal closes.The move is also expected to result in a non-cash charge of $1.2-$1.4 billion for MCD. The company already incurred a loss of $127 million in the first quarter of 2022.Another retail giant exiting the Russia market following the invasion of Ukraine is Nike. In doing so, the company will not renew any of its franchise agreements with Russia. In March, Nike halted its online orders and shut down some stores.However, the company’s non-franchised stores remain operational. Also, NKE extended its support to the existing employees in Russia during the exit process.  Treading a similar path, Cisco Systems revealed plans to shut down its business in Russia and Belarus in a phased manner. The company offered relocation options to its employees in Russia.In March, the telecom giant temporarily suspended its operations in Russia due to the war in Ukraine. It also provided assistance to Ukrainian organizations to avoid cyber threats.Coming back to Whirlpool, the company has been reeling under other headwinds, including global supply-chain disruptions and rising raw material costs. WHR expects the inefficiencies across the supply chain, particularly in distribution and labor, to continue. It also continues to monitor the global cost inflation, largely in steel and resins, which is likely to remain a headwind.The company expects inflationary pressures to significantly impact the 2022 results. It anticipates net cost takeout to negatively impact margins by 250 bps in 2022, due to increased logistics and labor costs stemming from the Russia-Ukraine conflict. Management expects raw material inflation to hurt its margin by 700 bps and its business by $1.5-$1.75 billion in 2022, led by higher component and resin costs.Consequently, management trimmed the view for 2022. This Zacks Rank #4 (Sell) company envisions net sales growth of 2-3%, down from the previously mentioned 5-6%. On a GAAP and ongoing basis, it expects earnings per share of $24-$26, lower than the $27-$29 stated earlier.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.That said, the company has implemented cost takeout actions, including curtailing structural and discretionary costs, capturing raw material deflation opportunities, effectively managing working capital, and syncing supply chain and labor levels with demand. We hope that these cost savings and pricing measures will aid growth in the near term. Image Source: Zacks Investment Research Notably, shares of WHR lost 30.1% year to date but came ahead of the industry’s decline of 33.4%. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE): Free Stock Analysis Report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report Whirlpool Corporation (WHR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks19 hr. 38 min. ago

4 Sector ETFs That Survived Market Turmoil in June

June has proved to be a brutal month for the stock market. The combination of factors such as decades-high inflation, the Russia-Ukraine conflict and Fed???s aggressive tightening policy are weighing heavily on investors' sentiment. June has proved to be a brutal month for the stock market. The S&P 500 Index entered a bear market in mid-June but retreated last week on bargain hunting. In fact, the benchmark jumped more than 6% last week, its first weekly advance since late May and its second-best week of 2022 to date. This has made up for some losses for the month.The S&P 500 is down more than 7% in June. Despite the broad indices’ losses, a few sector ETFs survived the turmoil. These include Global X Solar ETF RAYS, Volt Crypto Industry Revolution & Tech ETF BTCR, Virtus LifeSci Biotech Clinical Trials ETF BBC and Global X Lithium & Battery Tech ETF LIT.The combination of factors such as decades-high inflation, the Russia-Ukraine conflict and Fed’s aggressive tightening policy are weighing heavily on investors’ sentiment. Investors have increasingly been concerned that the economy will plunge into recession (read: 5 Undervalued ETFs to Buy for Second Half 2022).The sell-off in the S&P 500 Index aggravated when the Fed raised interest rates by 75 bps in its latest FOMC meeting — the biggest increase since 1994 — and signaled continued tightening ahead, which could further weigh on stocks. Fed Chair Jerome Powell said that another hike of 50 or 75 bps at the next meeting in July is likely. An increase in interest rates means higher loan rates for consumers and businesses, including mortgages, credit cards and auto loans that will likely cut consumer spending and hurt economic growth.Additionally, rounds of data suggest a slowdown in economic activity in the key sectors. Mortgage rates reached their highest levels in more than 13 years, while retail sales registered a bigger-than-expected drop in May as record gasoline prices prompted households to cut back on spending. As the global economy is struggling with skyrocketing inflation and low growth, the World Bank has warned of a recession. The war in Ukraine, lockdowns in China, supply-chain disruptions, and the risk of stagflation are curtailing growth.Global X Solar ETF (RAYS) – Up 10.3%Global X Solar ETF seeks to invest in companies positioned to benefit from the advancement of the global solar technology industry. This includes companies involved in solar power production; the integration of solar into energy systems; and the development/manufacturing of solar-powered generators, engines, batteries, and other technologies related to the utilization of solar as an energy source.Global X Solar ETF has accumulated $7.6 million in its asset base and charges 50 bps in annual fees.Volt Crypto Industry Revolution & Tech ETF (BTCR) – Up 9.2%Volt Crypto Industry Revolution & Tech ETF is the first ETF offering exposure to Bitcoin companies and its supporting infrastructure. It employs a call options overlay designed to boost performance in extreme run-ups of companies with high bitcoin-correlation. BTCR is actively managed and looks to indicators such as the stock-to-flow model to adjust its level of Bitcoin-related investments (read: 5 ETFs Surge As S&P 500 Slips to Bear Market).Volt Crypto Industry Revolution & Tech ETF has accumulated $2.8 million in its asset base and charges 85 bps in annual fees.Virtus LifeSci Biotech Clinical Trials ETF (BBC) – Up 8.9%Virtus LifeSci Biotech Clinical Trials ETF offers exposure to companies with promising drugs in clinical human trials that have not yet been approved by the FDA or gone into production. Virtus LifeSci Biotech Clinical Trials ETF follows the LifeSci Biotechnology Clinical Trials Index and holds 196 securities in its basket.Virtus LifeSci Biotech Clinical Trials ETF has amassed $15.7 million in its asset base and charges 79 bps in fees per year from its investors. It carries a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: ETFs Winners of S&P 500's Second Best Week in 2022).Global X Lithium & Battery Tech ETF (LIT) – Up 1.3%Global X Lithium & Battery Tech ETF invests in companies throughout the lithium cycle, including mining, refinement and battery production, cutting across the traditional sectors and geographic definitions by tracking the Solactive Global Lithium Index. It holds 40 securities in its basket, with the Chinese firms taking the largest share at 39.5%, followed by the United States (20.8%) and South Korea (12%).Global X Lithium & Battery Tech ETF charges investors 75 bps in annual fees and has amassed $4.7 billion in AUM. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>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 Virtus LifeSci Biotech Clinical Trials ETF (BBC): ETF Research Reports Global X Lithium & Battery Tech ETF (LIT): ETF Research Reports Global X Solar ETF (RAYS): ETF Research Reports Volt Crypto Industry Revolution and Tech ETF (BTCR): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks19 hr. 38 min. ago

MRC Global (MRC) Displays Bright Prospects, Risks Persist

MRC Global (MRC) stands to benefit from strength across its end markets, lucrative contracts and shareholder-friendly policies. However, cost woes and supply-chain issues weigh on it. MRC Global Inc. MRC has been gaining from strength in end markets like upstream production, gas utilities, midstream pipelines, downstream, industrial and energy transition and others, of late. For 2022, it expects revenues from its business in the gas utility sector to witness double-digit percentage growth year over year, driven by higher gas distribution system integrity management activities. For the year, revenues from its business in the downstream, industrial and energy transition sectors are likely to increase in double-digit percentage, backed by project turnaround activity and new energy transition-related projects. For 2022, it anticipates revenues of $3.1 billion, suggesting growth of 14.9% year over year.MRC has been benefiting from contracts with some of the largest refiners in the United States and recent developments in the energy transition project. Also, several contracts from the largest gas utilities in the United States have benefited its businesses in the gas utility sector.The company intends to reward its shareholders through dividend payments and share buybacks. In 2021 and the first three months of 2022, MRC paid out dividends worth $24 million and $6 million, respectively. Improved cash positions will help it reward its shareholders in moving ahead.However, rising costs and operating expenses pose a concern. In first-quarter 2022, its cost of sales increased 19.8% on a year-over-year basis, while selling, general and administrative expenses recorded an increase of 7%. Supply chain issues and increases in raw material costs are likely to continue affecting its margins and profitability.Given its widespread presence in the international markets, MRC is exposed to unfavorable foreign currency movements. In first-quarter 2022, its revenues for the International segment declined 13% on a year-over-year basis. A stronger U.S. dollar might depress MRC's overseas business results in the quarters ahead.Image Source: Zacks Investment ResearchIn the past three months, this Zacks Rank #3 (Hold) stock has lost 15.3% compared with the industry’s decline of 10.8%.Stocks to ConsiderSome better-ranked companies from the Zacks Industrial Products sectors are discussed below.IDEX Corporation IEX presently has a Zacks Rank #2 (Buy). IEX delivered a trailing four-quarter earnings surprise of 2.8%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.IDEX’s earnings estimates have increased 1.9% for 2022 in the past 60 days. Its shares have declined 7.5% in the past three months.Roper Technologies, Inc. ROP presently has a Zacks Rank of 2. Its earnings surprise in the last four quarters was 2%, on average.In the past 60 days, ROP’s earnings estimates have increased 0.4% for 2022. The stock has declined 18.1% in the past three months.Ferguson plc FERG presently carries a Zacks Rank #2. Its earnings surprise in the last reported quarter was 13.7%.In the past 60 days, Ferguson’s earnings estimates have increased 10.6% for fiscal 2022 (ending July 2022). FERG’s shares have lost 17.7% in the past three months. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Roper Technologies, Inc. (ROP): Free Stock Analysis Report IDEX Corporation (IEX): Free Stock Analysis Report MRC Global Inc. (MRC): Free Stock Analysis Report Wolseley PLC (FERG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks19 hr. 38 min. ago

Should Investors Be Considering Dividend-Paying Stocks?

Companies often increase dividends in down markets to keep investors interested in the shares. With inflation hugging 40-year highs, the possibility of a recession looming in the not-too-distant future and constantly shrinking portfolio values, many of us are losing our appetite to spend.Whether it is the Conference Board or the University of Michigan, consumer surveys are telling the same story: Americans are incrementally cautious about the near future, about job prospects, their income growth and the business environment.According to the university, “consumers across income, age, education, geographic region, political affiliation, stockholding and homeownership status all posted large declines” (in sentiment). Food and gas inflation in particular appear to be “eroding living standards.”According to the Conference Board, “Purchasing intentions for cars, homes and major appliances held relatively steady—but intentions have cooled since the start of the year and this trend is likely to continue as the Fed aggressively raises interest rates to tame inflation. Meanwhile, vacation plans softened further as rising prices took their toll.”The board finds that consumer sentiment about the present situation has changed marginally (the present situation index went from 147.4 in May to 147.1 in June). But it is their expectation about the future (i.e. the next six months) that has changed dramatically: the expectations index continued its downward trajectory from 73.7 to 66.4 from May to June. This is the lowest level since the 63.7 recorded in March 2013.Rising inflation in essentials and rising interest rates to combat it will keep the pressure on sentiments, for sure.But while all of us are entering this uncertainty together, we will not all be exiting it in the same way. Some will be cutting all spending and hoarding cash. Some will be investing in essentials and commodities since they tend to hold relatively steady in bear markets. And some will look for bargains in the stock market.Stocks have outdone most other asset classes in recent history and at the cheap valuations to which many of them have sunk, they are certainly worth building strategies around.Today, I’m focusing on investors looking for income generating stocks. These are stocks that pay a dividend. The main reason a company pays a dividend is it generates more earnings that it can invest back into the business. This is usually because it is a mature player, but can also be because it operates in an industry where further growth in the near future is limited for some reason. It supports its stock price and investor interest by paying dividends. During a bear market, or a recession, dividend-paying companies are therefore incentivized to pay more dividend.A few things need to be kept in mind, however, when investing in these stocks.First, ascertain that the company’s growth outlook is sound, even if it is likely to be impacted by the current uncertainties. This can be done by choosing stocks in the top 50% of Zacks-classified industries. Our research shows that the top 50% outperforms the bottom 50% by a factor of 2 to 1. This will point you toward the industries that appear to be battling the uncertainties better than others.Second, revenue growth is the real indicator of quality earnings. It ensures that the earnings growth is really coming from more business and not just production efficiencies or accounting jugglery. Therefore, it’s worth checking out what’s happening with revenues, if possible. Analyst revenue expectations for up to a couple of years are usually available. Although these are moving numbers and liable to change as analysts update their expectations, they are worth checking out.Third, in order to lower your risk, ascertain that the debt/total capital ratio is low, say under 40-50%. If a company falls into very hard times, it will still be required to pay its debt obligations. So, the lower this is, the better.Fourth, check the dividend yield and how far the dividend has grown in the last few years. This gives you an idea of what to expect.Fifth, make sure you choose stocks that have Zacks #1 (Strong Buy) or #2 (Buy) ranks, because our research has shown consistently that this is where most of the action will be in the near term.Finally, be sure to buy cheap. For example, the price based on earnings potential should be relatively lower than the past year (for example) and also preferably lower than a benchmark, say the S&P 500.Here are a few stocks that satisfy the above criteria:The RMR Group, Inc. RMRThis provider of business and property management services in the U.S. belongs in the top 37% of Zacks-classified industries. It also carries a Zacks Rank #1. RMR’s current dividend yield is 5.63% while dividend growth over the last five years is 11.6%. Revenue growth expectations for the company are 22.6% and 2.9% in its current and following fiscal years (ending September). RMR has no long-term debt. The shares also trade at 12.5X earnings, which is below their median level over the past year and the S&P 500’s 16.4X.Nippon Yusen Kabushiki Kaisha NPNYYThis provider of marine, land and air transportation services worldwide is in the top 18% of Zacks-classified industries. Moreover, it carries a Zacks Rank #2. These two factors in combination are normally enough to indicate upside in the shares. But since we are concerned with dividend growth potential, it’s worth looking at Nippon Yusen’s other numbers as well. And so, we see that analysts expect the company to grow revenues by 25.2% in the current year ending in March 2023 followed by 17.4% growth the following year. Nippon Yusen pays a dividend that yields 22.17%. Its dividend has grown 125.9% over the last five years. The Debt/Cap of 32.0 is totally manageable. At 1.3X earnings, the shares are well below their annual highs.Petroleo Brasileiro S.A. - Petrobras PBRZacks #1 ranked Petrobras explores for, produces, and sells oil and gas in Brazil and internationally. The industry to which it belongs is in the top 25%. What’s more, its dividend which currently yields 25.92% has grown 104.04% in the last five years. Petrobras’ revenues are expected to grow 32.1% this year. While a decline is currently forecasted for the following year, the direction of analyst estimate revisions is encouraging. Debt/Cap of 34.9% isn’t a cause for concern. P/E of 2.9X is lower than its median value over the past year.One-Month Price PerformanceImage Source: Zacks Investment Research Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Petroleo Brasileiro S.A. Petrobras (PBR): Free Stock Analysis Report The RMR Group Inc. (RMR): Free Stock Analysis Report Nippon Yusen Kabushiki Kaisha (NPNYY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks19 hr. 38 min. ago

Wall Street on Track for Worst 1H: 4 Top-Ranked ETFs Win

While there have been losers in many corners of the space, we highlight five ETFs from different industries that have gained in the first half of the year. Wall Street is about to post its worst first half in 50 years, thanks to persistently high inflation and an economic downturn caused by a hawkish Fed. Russia’s invasion of Ukraine added to the chaos. Notably, the S&P 500 is down nearly 18% this year — the worst since 1970 — as tracked by Dow Jones Market Data Group.While there have been losers in many corners of the space, we highlight five ETFs from different industries that have gained in the first half of the year. These have a solid Zacks ETF Rank #1 (Strong Buy) or 2 (Buy). The funds are, namely, Invesco Dynamic Energy Exploration & Production ETF PXE, Invesco KBW Property & Casualty Insurance ETF KBWP, Morningstar Dividend Leaders Index Fund FDL, and VanEck Vectors Pharmaceutical ETF PPH. These are likely to continue outperforming should the trends prevail.With inflation soaring to a four-decade high, the Fed raised interest rates by 75 bps in its latest FOMC meeting — the biggest interest-rate increase since 1994 — and signaled continued tightening ahead, which could further weigh on stocks. This is because an increase in interest rates means higher loan rates for consumers and businesses, including mortgages, credit cards and auto loans that will likely cut consumer spending, thereby hurting economic growth. The central bank is on pace to hike rates again in July by another 75 basis points, as tracked by the CME's Fed Watch Tool.Additionally, the latest rounds of data suggest a slowdown in economic activity in the key sectors. Mortgage rates reached their highest level in more than 13 years, while retail sales registered a bigger-than-expected drop in May as record gasoline prices prompted households to cut back on spending (read: 5 Undervalued ETFs to Buy for Second Half 2022).Further, as the global economy is struggling with skyrocketing inflation and low growth, the World Bank has warned of a recession.We have profiled the above-mentioned ETFs in detail below:Invesco Dynamic Energy Exploration & Production ETF (PXE) – Up 43.1%Invesco Dynamic Energy Exploration & Production ETF follows the Dynamic Energy Exploration & Production Intellidex Index, which thoroughly evaluates companies involved in the exploration and production of natural resources used to produce energy based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action and value (read: Top ETF Stories of First-Half 2022 (revised)).Holding 32 stocks in its basket, Invesco Dynamic Energy Exploration & Production ETF has amassed $297.5 million in its asset base and charges 63 bps in annual fees. It has a Zacks ETF Rank #1 with a High risk outlook.Invesco KBW Property & Casualty Insurance ETF (KBWP) – Up 2.3%Invesco KBW Property & Casualty Insurance ETF provides exposure to the 25 leading national money centers and regional banks or thrifts. It follows the KBW Nasdaq Property & Casualty Index. Invesco KBW Property & Casualty Insurance ETF is concentrated on the top five firms that make up for more than 7% share each.Invesco KBW Property & Casualty Insurance ETF has managed $140.5 million in its asset base and expense ratio of 0.35%. KBWP has a Zacks ETF Rank #2 with a Medium risk outlook.First Trust Morningstar Dividend Leaders Index Fund (FDL) – Up 2.3%First Trust Morningstar Dividend Leaders Index Fund offers exposure to stocks that have shown the highest dividend consistency and sustainability by tracking the Morningstar Dividend Leaders Index. It holds 100 stocks in its basket with key holdings in financials, energy,  consumer staples, healthcare and information technology (read: ETF Areas Defying the Bear Market This Year: Can They Rally?).With AUM of $2.9 billion, First Trust Morningstar Dividend Leaders Index Fund charges 45 bps in annual fees from investors and has a Zacks ETF Rank #2 with a Medium risk outlook.VanEck Vectors Pharmaceutical ETF (PPH) – Up 0.6%VanEck Vectors Pharmaceutical ETF offers exposure to the companies involved in pharmaceuticals, including pharmaceutical research and development as well as production, marketing and sales of pharmaceuticals. It follows the MVIS US Listed Pharmaceutical 25 Index and holds 25 stocks in its basket.The product has amassed $545.9 million in its asset base and has expense ratio of 0.35%. VanEck Vectors Pharmaceutical ETF carries a Zacks ETF Rank #2 with a Medium risk outlook. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>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 VanEck Pharmaceutical ETF (PPH): ETF Research Reports First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Invesco Dynamic Energy Exploration & Production ETF (PXE): ETF Research Reports Invesco KBW Property & Casualty Insurance ETF (KBWP): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks19 hr. 38 min. ago

Wall Street Digests Mixed Retail Earnings

Wall Street digests mixed retail earnings, Mester remains very hawkish, Oil market stays tight, Gold ready to shine, a Crypto fund ordered to liquidate – OANDA US stocks softened after key earnings from retailers provided limited optimism for the rest of the year and as rising long-term inflation expectations could tilt the Fed into sending […] Wall Street digests mixed retail earnings, Mester remains very hawkish, Oil market stays tight, Gold ready to shine, a Crypto fund ordered to liquidate – OANDA US stocks softened after key earnings from retailers provided limited optimism for the rest of the year and as rising long-term inflation expectations could tilt the Fed into sending the economy into a recession. ​ Record inflation for Spain caught everyone’s attention, as traders shrugged off the temporary improvement with pricing pressures from Germany, which are only coming down from the highest levels in nearly a century. .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Ray Dalio Series in PDF Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more No one wants to buy the dip anymore after seeing a few stock market rebounds get completely faded. ​ ​ Investors removed $10 billion out of equity funds last week and it doesn’t seem likely that sentiment will dramatically improve that the Fed will be able to deliver that soft landing. ​ ​ ​ Retailers Nike (NYSE:NKE) delivered strong earnings, but a cautious outlook was what traders focused on. ​ COVID lockdowns in China and a weakening US confirms are the two big red flags for the outlook for the rest of the year. ​ The world’s largest sportswear company is struggling with rising transportation costs and longer shipping times. If the retail giants and their preferred vendor and shipping relationships are still having trouble getting and shipping goods, that does not bode well for the smaller shops. Bed Bath & Beyond (NASDAQ:BBBY) posted terrible results, the CEO is leaving, and the outlook will not be improving anytime soon as the consumer is weakening and as supply chains issues persist. In Europe, H&M (STO:HM-B) gave a nice earnings report that included strong margins and a share buyback announcement. ​ The Swedish retailer was a beaten up stock so today’s rally should be taken with a grain of salt. ​ ​ Fed Now is not the time for Fed Chair Powell to abandon his hawkish stance at the ECB forum. ​ After hearing from hawkish Fed member Loretta Mester, investors are nervous the board could be pressured to send rates above 4% next year. Mester noted that inflation could rise further from now and that it is very necessary to get inflation down. ​ With longer-term inflation rising, Mester will likely advocate for a 75 basis point increase in July and traders should not be surprised if she maintains that stance in September Oil Crude prices rallied as the oil market looks like it will remain very tight after indirect nuclear deal talks between the US and Iran ended without result. ​ The supply outlook for crude is looking vulnerable and could see some disruptions lead to much higher oil prices. ​ Ecuador’s oil production is declining rapidly, down 1.8 million barrels during the 15 days of protest. ​ Libya is suspending oil exports from the Es Sider port. Unless the EIA crude oil inventory report posts a surprising large drop in demand and significant production increase, oil prices should be poised to climb higher. Gold Gold prices are higher as the bond market selloff eases. After inflation hit a record high in Spain, pressure has grown for the ECB to be a bit more aggressive and that helped soften the dollar. ​ Risk appetite will struggle to return here as inflation continues to hamper the outlooks for most companies. Gold is still stuck in a wide trading range, but a collapse below the $1800 seems less likely as the dollar peak might be in place. Wall Street will likely lean towards anticipating more rate hikes from the ECB, that will drive a weaker dollar, and weakening growth outlooks which should prompt the safe-haven buying of gold. Crypto The news cycle has been pretty awful for crypto markets. ​ After reports of default, it comes as no surprise that Three Arrows Capital, a cryptocurrency-focused hedge fund has been ordered to liquidate. ​ Concerns are growing that the collapse of Three Arrows Capital could trigger further market contagion. The British Virgin Islands court ordered the liquidation and that reminds traders that whatever crypto regulation takes hold, it will likely be bold and global. Bitcoin is under pressure and struggling to hold onto the $20,000 level. ​ There is a big risk that we could see miners be forced to unload some of their holdings as they’ve overcommitted with GPUs. ​ The big transition to a proof-of-stake (POS) for Ethereum is a game changer that could hurt miners who financed a lot of hardware. ​ If Bitcoin breaks below the recent low around $17,500, there isn't much support until the $14,500 level. Article By Edward Moya, OANDA Updated on Jun 29, 2022, 12:23 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalk20 hr. 26 min. ago

5 Stocks to Buy as Markets Head Toward Worst 1H in 50 Years

We have narrowed our search to five U.S. corporate giants that have offered more than 10% returns year to date. These are: ADM, HSY, LMT, MPC and VLO. Wall Street has been witnessing a free fall since the beginning of this year. The day-to-day fluctuations of the major indexes are higher than what we saw in February-March 2020, during the coronavirus outbreak. Extreme volatility has gripped the U.S. stock markets and Wall Street remained capricious even though we are just two trading days away from completing the first half of 2022.A series of global headwinds like mounting inflation, slowing economic growth, concerns about a recession, a higher interest rate regime along with tougher monetary policies adopted by major central banks and prolonged devastation of the supply-chain system have significantly dented market participants’ confidence.Higher commodity prices, especially prices of crude oil and natural gas, due to the lingering war between Russia and Ukraine and uncertainty about China’s recovery from COVID-19 and its economic prosperity in the near term made investors jittery. In the United States, a large section of economists and financial experts apprehend a recession either in 2022 or next year.Despite these strong headwinds, a handful of U.S. corporate bigwigs have kept the banner flying high and provided double-digit returns in first-half 2022. Investment in such stocks with a favorable Zacks Rank should be lucrative in the near-term. Five of them are Archer-Daniels-Midland Co. ADM, Marathon Petroleum Corp. MPC, Valero Energy Corp. VLO, The Hershey Co. HSY and Lockheed Martin Corp. LMT.Markets Heading Toward the Worst 1H in 50 YearsOn Jun 28, U.S. stock markets witnessed severe volatility. The Dow, the S&P 500 and the Nasdaq Composite slumped 1.6%, 2% and 3%, respectively. At intraday high, the Dow, the S&P 500 and the Nasdaq Composite advanced 1.4%, 1.2% and 1%, respectively.The reason for this volatility was weak economic data. The Conference Board reported that the U.S. consumer confidence index came in at 98.7 in June, marking its 16-month low. The consensus estimate was 100. The index for May was revised downward to 103.2 from 106.4 reported earlier.The Present Situation Index— based on consumers’ assessment of current business and labor market conditions— dropped marginally to 147.1 from 147.4 in May. The Expectations Index— based on consumers’ short-term outlook for income, business, and labor market conditions— tumbled to 66.4 from 73.7 in May, reflecting its lowest level since March 2013.Per Lynn Franco, the Conference Board’s senior director of economic indicators, said “Consumers’ grimmer outlook was driven by increasing concerns about inflation, in particular rising gas and food prices. Expectations have now fallen well below a reading of 80, suggesting weaker growth in the second half of 2022 as well as growing risk of recession by year end.”The S&P 500 — popularly known as the broad-market index — has tanked 19.8% year to date and is heading for its worst first-half since 1970. The other two major benchmarks —  the blue-chip Dow and the tech-laden Nasdaq Composite —  have slid 14.85 and 28.5%, respectively.Our Top PicksWe have narrowed our search to five U.S. corporate giants that have offered more than 10% returns year to date with more upside left for the rest of 2022. These stocks have seen positive earnings estimate revisions in the last 30 days indicating market’s expectations of strong business going forward.Moreover, these companies are regular dividend payers, offering an income stream during market’s downturn. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The chart below shows the price performance of our five picks year to date.Image Source: Zacks Investment ResearchArcher-Daniels-Midland has been gaining from solid demand, improved productivity and product innovations. Persistent growth in the Nutrition segment of ADM, driven by significant gains in the Human and Animal Nutrition units, remained the key growth drivers.Archer-Daniels-Midland expects the nutrition segment’s operating profit growth of 20% in 2022. The company has been significantly progressing on its three strategic pillars — optimize, drive and growth.Zacks Rank #1 Archer-Daniels-Midland has an expected earnings growth rate of 22% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.3% over the last 30 days. The stock price of ADM has surged 12.5% year to date. The current dividend yield is of 2.10%.Marathon Petroleum is poised for further price gains based on a slew of positives. MPC’s $21 billion sales of its Speedway retail business provided it with a much-needed cash infusion. The deal also comes with a 15-year fuel supply agreement under which Marathon Petroleum will supply 7.7 billion gallons of gasoline per year to 7-Eleven, thus ensuring a steady revenue stream.MPC’s exposure to more stable cash flows from the logistics segment diversifies the earnings stream and offers a buffer against the volatile refining business. Consequently, Marathon Petroleum is primed for significant capital appreciation and is viewed as a preferred downstream operator to own now.Zacks Rank #1 Marathon Petroleum has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 24.4% over the last 30 days. The stock price of MPC has jumped 38.6% year to date. It has a current dividend yield of 2.64%.Valero Energy is the largest independent refiner and marketer of petroleum products in the United States. VLO offers the most diversified refinery base with a capacity of 3.2 million barrels per day in its 15 refineries throughout the United States, Canada and the Caribbean.The majority of Valero Energy’s refining plants are situated in the Gulf coast area from where there is easy access to the export facilities. VLO’s Gulf coast presence helped it to expand export volumes over the past years and gain from high distillate margins.Moreover, Valero Energy intends to quadruple renewable diesel production capacity by 2023. With low-carbon fuel policies being adopted by economies around the globe, demand for renewable fuel is expected to rise in the coming days. Also, VLO is expected to capitalize on the increasing demand for distillate fuel.Zacks Rank #1 Valero Energy has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings improved 16.6% over the last 30 days. The stock price of VLO has soared 54.8% year to date and the current dividend yield is of 3.49%.Lockheed Martin is the largest U.S. defense contractor with a steady inflow of orders from its leveraged presence in the Army, Air Force, Navy and IT programs. Consistent level of contract flows and subsequent backlog growth bolster the long-term revenue prospects for LMT. Expansionary U.S. budgets will also boost its business. The F-35 program continues to be a key growth program for Lockheed Martin’s Aeronautics business unit.Zacks Rank #2 Lockheed Martin has an expected earnings growth rate of 18.6% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.1% over the last 30 days. The stock price of LMT has climbed 18.4% year to date. It has a current dividend yield of 2.67%.The Hershey has raised its top and bottom-line view due to robust first-quarter results and greater visibility in 2022. Earnings and sales improved year over year, gaining from higher pricing, volumes and buyouts.The buyouts of Pretzels, Dot's and Lily's boosted net sales of HSY. Management expects pricing to remain strong in 2022. Also, Hershey has been gaining on its focus on innovation and capacity expansion.The Zacks Rank #2 Hershey has an expected earnings growth rate of 11.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 30 days. The stock price of HSY has advanced 12.9% year to date. It has a current dividend yield of 1.63%. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Hershey Company The (HSY): Free Stock Analysis Report Archer Daniels Midland Company (ADM): Free Stock Analysis Report Valero Energy Corporation (VLO): Free Stock Analysis Report Marathon Petroleum Corporation (MPC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks21 hr. 54 min. ago

Why Occidental Petroleum (OXY) is a Top Value Stock for the Long-Term

Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service. Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The research service 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, all of which will help you become a smarter, more confident investor.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scores?The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.The Style Scores are broken down into four categories:Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.How Style Scores Work with the Zacks RankA proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.That's where the Style Scores come in.To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.Stock to Watch: Occidental Petroleum (OXY)Founded in 1920, Houston, TX-based Occidental Petroleum Corporation is an integrated oil and gas company, with significant exploration and production exposure. The company is also a producer of a variety of basic chemicals, petrochemicals, polymers and specialty chemicals. The company conducts its operations through three segments: Oil and Gas, Chemical, and Midstream and Marketing. At 2021-end, Occidental’s preliminary worldwide proved reserves totaled 3.51 billion BOE compared with 2.91 billion BOE at the end of 2020. As of Dec 31, 2021,the company's proved reserves consisted of approximately 50.4% oil, 21.8% NGL and 27.8% gas.OXY is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 5.96; value investors should take notice.Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2022, while the Zacks Consensus Estimate has increased $1.07 to $10.36 per share. OXY also boasts an average earnings surprise of 26.2%.With a solid Zacks Rank and top-tier Value and VGM Style Scores, OXY should be on investors' short list. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Occidental Petroleum Corporation (OXY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks21 hr. 54 min. ago

Cummins (CMI) & Komatsu Partner for Zero-Emission Equipment

Cummins (CMI) signs MoU with Komatsu to focus on zero-emission solutions and power technologies for sustainable mining options. Cummins Inc. CMI recently signed a memorandum of understanding (MoU) with Komatsu Ltd. for the development of zero-emissions haulage equipment. Komatsu is a global provider of equipment and services for the construction and mining industries. Per the agreement, both companies will initially focus on zero-emission power technologies, which include hydrogen fuel cell solutions for large mining haul truck applications. Together they will work toward building a partnership of diesel engines across a wide range of mining and construction equipment.The venture is part of Cummins’ Destination-Zero strategy to bring down its products’ greenhouse gas and air quality impacts and reach net zero emission by 2050.Cummins already has a broad portfolio of batteries, fuel cell systems and electrolyzers, which are the basics for de-carbonization. Komatsu’s expertise in mining and equipment design and integration paired with Cummins’ advanced power technologies, including hydrogen fuel cells, will expedite the de-carbonization of mining equipment. The partnership seeks to leverage each of their strong areas and promises to deliver sustainable products to customers.In another development, Cummins has joined forces with Hyliion Holdings Corp. HYLN, a leading player in electrified powertrain solutions for Class 8 semi-trucks. The deal will optimize Cummins’ natural gas engine as the generator for the Hypertruck ERX powertrain.Together, the companies intend to obtain environmental certifications for Cummins’ natural gas internal-combustion engines to be used in Hyliion’s Hypertruck ERX powertrain using onboard power generation to recharge batteries.The production of the Hypertruck ERX with the ISX12N Cummins’ natural gas power is slated to begin in late 2023.The Hypertruck ERX, an electric range-extender semi-truck powertrain solution, offers 75 miles of electric range and can achieve up to 1,000 miles of full range through the generator, so the fear of the battery running out of charge is reduced. Cummins’ ISX12N will be optimized with the Hyliion Hypertruck ERX, so that it can use the existing 700 natural gas stations across North America for low-cost refueling.Presently, both companies are leading the industry-wide transition to use alternative fuels to aim for zero-emission, with improved fuel efficiency and economic value for customers, while also meeting more stringent EPA and CARB certifications. The collaboration will be a stepping stone toward a more sustainable transportation industry and offering a portfolio of powertrains across many fuel options.Cummins has been actively engaged in driving cleaner transportation. In April, through its affiliate, Hydrogenics Europe N.V., it inked a deal to supply a 2.5-megawatt electrolyzer to Hysetco, a hydrogen mobility company owned by Total Energies, Air Liquide, Toyota, Kouros and others. The Hysetco project aims to create the largest hydrogen taxi fleet worldwide, fueled by 12 large hydrogen refueling stations, by 2024. Cummins broke ground with the deal as it looks to power the world’s largest hydrogen taxi.Zacks Rank & Key PicksCMI carries a Zacks Rank #3 (Hold), currently.Some better-ranked players in the auto space are Wabash National Corporation WNC and Genuine Parts GPC, carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Wabash National has an expected earnings growth rate of 239.3% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.Wabash National’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. WNC pulled off a trailing four-quarter earnings surprise of 51.26%, on average. The stock has declined 11.3% over the past year.Genuine Parts has an expected earnings growth rate of 13.6% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 11.34%, on average. The stock has risen 7.1% over the past year. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Genuine Parts Company (GPC): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report Wabash National Corporation (WNC): Free Stock Analysis Report Hyliion Holdings Corp. (HYLN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks21 hr. 54 min. ago

Why Southwestern Energy (SWN) is a Top Growth Stock for the Long-Term

The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage. Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium also includes the Zacks Style Scores.What are the Zacks Style Scores?Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.The Style Scores are broken down into four categories:Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.How Style Scores Work with the Zacks RankA proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.#1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.That's where the Style Scores come in.You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only as a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.Stock to Watch: Southwestern Energy (SWN)Based in Spring, TX, Southwestern Energy Company engages in the exploration, development and production of natural gas, crude oil and natural gas liquids (NGLs) in the United States. It holds significant properties in the prolific Appalachian Basin, which is famous for its natural gas reservoirs. The company was founded in 1929.SWN is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.Additionally, the company could be a top pick for growth investors. SWN has a Growth Style Score of A, forecasting year-over-year earnings growth of 46.7% for the current fiscal year.Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.16 to $1.54 per share. SWN boasts an average earnings surprise of 3.1%.With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SWN should be on investors' short list. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Southwestern Energy Company (SWN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks21 hr. 54 min. ago

Enerpac (EPAC) Misses Q3 Earnings and Revenue Estimates

Enerpac's (EPAC) third-quarter fiscal 2022 revenues increase 6.1% year over year on account of solid performance across the Industrial Tools & Services segment. Enerpac Tool Group Corp. EPAC reported weaker-than-expected third-quarter fiscal 2022 (ended May 31, 2022) results. Earnings and revenues missed estimates by 44.8% and 1.8%, respectively.The company’s adjusted earnings per share were 16 cents, lagging the Zacks Consensus Estimate of 29 cents. The bottom line decreased 42.6% from 28 cents per share in the year-ago quarter on higher costs and expenses. The prevalent supply-chain, inflation and logistics woes were spoilsports.Revenue DetailsIn the reported quarter, the company’s revenues were $151.9 million, reflecting a 6.1% increase from the year-ago quarter’s figure. The top line gained from a healthy performance at Industrial Tools & Services and Other segments.The top line missed the Zacks Consensus Estimate of $155 million.Organic sales in the quarter under review were up 10% year over year, driven by 12% growth in product sales. Service revenues increased 1%. Movements in foreign currency had an adverse impact of 4% on the quarter’s revenues.The segmental information is briefly discussed below.Industrial Tools & Services (92.4% of third-quarter fiscal 2022 net sales): Revenues in the reported quarter totaled $140.4 million, reflecting a 5.2% increase from the year-ago figure. The year-over-year revenue growth was driven by market recovery worldwide and the impacts of pricing actions taken by the company.Other (7.6% of net sales in third-quarter fiscal 2022): Revenues in the segment totaled $11.5 million, up 7.6% from the year-ago quarter.Enerpac Tool Group Corp. Price, Consensus and EPS Surprise Enerpac Tool Group Corp. price-consensus-eps-surprise-chart | Enerpac Tool Group Corp. QuoteMargin ProfileIn the reported quarter, Enerpac Tool’s cost of sales grew 4.6% year over year to $79.8 million. It represented 52.5% of the quarter’s net sales compared with 53.3% in the year-ago quarter. The gross profit increased 7.8% to $72 million. The gross margin jumped 70 basis points to 47.4%.The gross profit results in the quarter benefited from higher sales, partially offset by impacts of inflationary and supply-chain issues.Selling, administrative and engineering expenses increased 55.8% year over year to $63.1 million. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $18.3 million, down 25%. The adjusted EBITDA margin was 12% compared with 17.1% in the year-ago quarter.Adjusted operating income was $13.7 million in the reported quarter, reflecting a decline from $19.5 million in the year-ago quarter. The adjusted operating margin was 9% compared with 13.6% in the year-ago quarter. Net financing costs declined 29% to $1 million.Balance Sheet and Cash FlowExiting the fiscal third quarter, Enerpac Tool’s cash and cash equivalents totaled $123.7 million, down 7.3% from $133.4 million at the end of the last reported quarter. Long-term debt increased 17.1% sequentially to $205 million.In the reported quarter, the company’s borrowing from the revolving credit facility was $30 million, and repayment on the same source was nil. Its net debt to adjusted EBITDA was 1.1X at the end of the fiscal third quarter versus 0.6X at the fiscal second-quarter end.Enerpac Tool generated net cash of $2.5 million for its operating activities in the third quarter of fiscal 2022. It generated net operating cash of $11.6 million in the year-ago quarter. Capital spending totaled $2.1 million, down 46.2%. Free cash inflow in the quarter was $1.4 million compared with a cash inflow of $34.5 million in the year-ago quarter.In the quarter, the company did not pay out any cash dividend.OutlookEnerpac Tool anticipates healthy demand and focus on growth to be beneficial for fiscal 2022 (ending August 2022). Also, its ASCEND initiatives are likely to improve its operational excellence, production efficiency and sales and channel coverage, apart from helping it control operating costs. Headwinds related to cost inflation, supply-chain woes and logistics issues remain concerning.For fiscal 2022, Enerpac Tool currently anticipates sales to be $560-$570 million compared with $560-$580 million projected earlier. It implies an increase from the year-ago tally of $528.7 million. Incremental adjusted EBITDA is expected to be 35-45% (maintained).Zacks Rank & Stocks to ConsiderEnerpac Tool currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the Zacks Industrial Products sectors are discussed below.IDEX Corporation IEX presently has a Zacks Rank #2 (Buy). IEX delivered a trailing four-quarter earnings surprise of 2.8%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.IDEX’s earnings estimates have increased 1.9% for 2022 in the past 60 days. Its shares have declined 7.5% in the past three months.Roper Technologies, Inc. ROP presently has a Zacks Rank of 2. Its earnings surprise in the last four quarters was 2%, on average.In the past 60 days, ROP’s earnings estimates have increased 0.4% for 2022. The stock has declined 18.1% in the past three months.Ferguson plc FERG presently carries a Zacks Rank #2. Its earnings surprise in the last reported quarter was 13.7%.In the past 60 days, Ferguson’s earnings estimates have increased 10.6% for fiscal 2022 (ending July 2022). FERG’s shares have lost 17.7% in the past three months. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Roper Technologies, Inc. (ROP): Free Stock Analysis Report IDEX Corporation (IEX): Free Stock Analysis Report Enerpac Tool Group Corp. (EPAC): Free Stock Analysis Report Wolseley PLC (FERG): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks21 hr. 54 min. ago

Futures Slide Amid Renewed Recession Fears After China Doubles Down On "Covid Zero"

Futures Slide Amid Renewed Recession Fears After China Doubles Down On "Covid Zero" One day after futures ramped overnight (if only to crater during the regular session) on hopes China was easing its highly politicized  Zero Covid policy after it cut the time of quarantine lockdowns, this morning futures slumped early on after China's President Xi Jinping made clear that Covid Zero isn't going anywhere and remains the most “economic and effective” policy for China during a symbolic visit to the virus ground zero in Wuhan, in which he cast the strategy as proof of the superiority of the country’s political system. That coupled with renewed recession worries (market is again pricing in a rate cut in Q1 2023) even as monetary policy tightens in much of the world to fight supply-side inflation, sent US futures and global markets lower. S&P futures dropped 0.2% and Nasdaq 100 futures were down 0.4% after the underlying index slumped on 3.1% on Tuesday. The dollar was steady after rising the most in over a week while WTI crude climbed above $112 a barrel, set for a fourth session of gains. In cryptocurrencies, Bitcoin dipped below the closely watched $20,000 level on news crypto hedge fund 3 Arrows Capital was ordered to liquidate. The Nasdaq's Tuesday’s slump added to what was already one of the worst years in terms of big daily selloffs in US stocks. The S&P 500 Index has fallen 2% or more on 14 occasions, putting 2022 in the top 10 list, according to Bloomberg data. Not helping the tech sector, on Wednesday morning JPMorgan cut its earnings estimates across the sector, especially for companies exposed to online advertising, citing macroeconomic pressures, forex and company-specific dynamics. One of the chief drivers for overnight weakness, China's Xi said during a trip Tuesday to Wuhan where the virus first emerged in late 2019 that relaxing Covid controls would risk too many lives in the world’s most populous country. China would rather endure some temporary impact on economic development than let the virus hurt people’s safety and health, he said, in remarks reported Wednesday by state media. As a result, China’s CSI 300 Index extended loss to 1.4% after the headline, while the yuan drops as much as 0.2% to trade 6.7132 against the dollar in the offshore market. Among key premarket movers, Tesla slipped in US premarket trading. The electric-vehicle maker laid off hundreds of workers on its Autopilot team as it shuttered a California facility, according to people familiar with the matter. Carnival slumped as Morgan Stanley analysts warned that the London and New York-listed cruise vacation company’s shares could lose all their value in the event of another demand shock. Pinterest gained 3.7% as the company’s co- founder and CEO Ben Silbermann quit and handed the reins to Google and PayPal veteran Bill Ready in a sign the social-media company will focus more on e-commerce. Also, despite the pervasive weakness, the Energy Select Sector SPDR Fund ETF (XLE) rebounded off key support (50% Fibonacci) relative to the SPDR S&P 500 ETF (SPY). That said, energy was alone and most other notable movers were down in the premarket: Carnival (CCL US) shares fall 8% premarket as Morgan Stanley analysts warned that the cruise vacation firm’s shares could lose all their value in the event of another demand shock. Nio (NIO US) shares drop 8.2% after short-seller Grizzly Research published a report on Tuesday alleging that the electric carmaker used battery sales to a related party to inflate revenue and boost net income margins. The company rejected the claims. Upstart Holdings (UPST US) shares slump about 9% after Morgan Stanley downgraded the consumer finance company to underweight from equal-weight amid rising cyclical headwinds. Ormat Technologies (ORA US) rallies as much as 5% after the renewable energy company is set to be included in the S&P Midcap 400 Index. 2U (TWOU US) shares rise 16% premarket. Indian online-education provider Byju’s has offered to buy the company in a cash deal that values the US-listed edtech firm at more than $1 billion, a person familiar with the matter said. Watch Amazon (AMZN US) shares as Redburn initiated coverage of the stock with a buy recommendation and set a Street-high price target, saying “there is a clear path toward a $3 trillion value for AWS alone.” Shares in data center REITs could be active later in the trading session after short-seller Jim Chanos said in an FT interview that he’s betting against “legacy” data centers. Watch Digital Realty (DLR US) and Equinix (EQIX US), as well as data center operators Cyxtera Technologies (CYXT US) and Iron Mountain (IRM US) Investors are growing increasingly skeptical that the Fed can avoid a bruising economic downturn amid sharp interest-rate hikes. Evaporating consumer confidence is feeding into concerns that the US might tip into a recession. Naturally, Fed officials sought to play down recession risk. New York Fed President John Williams and San Francisco’s Mary Daly both acknowledged they had to cool inflation, but insisted that a soft landing was still possible. “It seems the market is in this tug of war between on the one hand the hope that we are close to the peak in inflation and rates, and on the other hand the challenge of a slowing economy and potential recession,” Emmanuel Cau, head of European equity strategy at Barclays Bank Plc, said in an interview with Bloomberg TV. “Central banks are walking a very tight line and to a certain extent dictate the mood in the markets.” European equities snapped three days of gains, trading poorly but off worst levels with sentiment also hurt by China remaining committed to its zero-Covid approach. Spanish inflation unexpectedly surged to a record, dashing hopes that inflation in the euro zone’s fourth-biggest economy had peaked, and emboldening European Central Bank policy makers pushing for big increases in interest rates. The ECB should consider raising interest rates by twice the planned amount next month if the inflation outlook deteriorates, according to Governing Council member Gediminas Simkus, as calls not to exclude an outsized initial move grow. German benchmark bonds rose, while 10-year Treasury yields slipped to 3.16%. DAX lags, dropping as much as 1.8%. Real estate, autos and miners are the worst performing sectors. In notable moves in European stocks, Hennes & Mauritz (H&M) gained after the Swedish low-cost retailer’s earnings beat analyst estimates. Just Eat Takeaway.com NV tumbled to a record low after Berenberg analysts rated the stock sell, saying the food delivery firm’s UK business will remain under pressure. Here are some of the biggest European movers today: Just Eat Takeaway shares plunge as much as 21% after Berenberg initiated coverage with a sell rating, saying the firm’s UK business will remain under pressure and a sale of its Grubhub unit is unlikely to satisfy the bulls. Carnival stocks slumped over 12% in London as Morgan Stanley analysts warned that the cruise vacation firm’s shares could lose all their value in the event of another demand shock. Pearson drops as much as 6.1% after the education company was cut to sell at UBS, which reduced forecasts to reflect a weak outlook for 2022 college enrollments. Grifols shares plunge as much as 13% on a media report the Spanish plasma firm is weighing a capital raise of as much as EU2b to cut its debt. Diageo shares fall after downgrades for the spirits group from Deutsche Bank and Kepler Cheuvreux, while Pernod Ricard also dips on a rating cut from the latter. Diageo declines as much as 4.2%, Pernod Ricard -3.7% Fluidra shares fall as much as 8.4% after Santander cut its rating on the Spanish swimming pools company. The bank’s analyst Alejandro Conde cut the recommendation to neutral from outperform. H&M shares rise as much as 6.8% after the Swedish apparel retailer reported 2Q earnings that beat estimates. Jefferies said the margin beat in particular was reassuring, while Morgan Stanley said it was a “positive surprise” overall. Ipsen shares rise as much as 3.1% after UBS analyst Michael Leuchten said that accepting palovarotene refiling priority review should be a net present value and confidence boost. Asian stocks fell, halting a four-day gain, as renewed angst over the outlook for global economic growth and inflation help drive a selloff across most of the region’s equity markets. The MSCI Asia Pacific Index dropped as much as 1.5%, led by consumer discretionary and information sectors. Chinese equities in particular took a hit, as the CSI 300 Index fell 1.5% Wednesday after Xi Jinping reiterated his firm stance on Covid zero. Tech-heavy indexes in markets such as South Korea and Taiwan took the brunt of Wednesday’s drop amid lingering concerns that monetary tightening in much of the world to fight inflation will cause an economic slowdown. While Federal Reserve members have played down the risk of a US recession, gloomy data such as US consumer confidence have damped investor sentiment. “Volatility is going to be the enduring feature of the market, I suspect, for the next couple of quarters at least until we get a firm sense that peak inflation has passed,” John Woods, Credit Suisse Group AG’s Asia-Pacific chief investment officer, said in an interview with Bloomberg TV. “Markets, I think, have aggressively priced in quite a serious or steep recession.”  China’s four-day winning streak came to a halt, putting its advance toward a bull market on hold.  “We will continue to see a risk of targeted lockdowns, and that spoils the initial euphoria seen in the markets from the announcement on relaxation of quarantine requirements,” said Charu Chanana, market strategist at Saxo Capital Markets. “Still, economic growth will likely be prioritized as this is a politically important year for China.”  Japanese equities decline as investors digested data that showed a drop in US consumer confidence over inflation worries and increased concerns of an economic downturn.  The Topix Index fell 0.7% to 1,893.57 in Tokyo on Wednesday, while the Nikkei declined 0.9% to 26,804.60. Toyota Motor Corp. contributed the most to the Topix’s decline, decreasing 1.8%. Out of 2,170 shares in the index, 1,114 fell, 984 rose and 72 were unchanged. “There are concerns about stagflation,” said Hideyuki Suzuki a general manager at SBI Securities. “The consumer sentiment from the University of Michigan, which provides one of the fastest data points, has already shown poor figures.” Stocks in India tracked their Asian peers lower as brent rose to the highest level in two weeks, while high inflation and slowing global growth continued to dampen risk-appetite for global equities. The S&P BSE Sensex fell 0.3% to 53,026.97 in Mumbai, while the NSE Nifty 50 Index declined by an equal measure. Both gauges have lost more than 4% in June and are set for their third consecutive month of declines. The main indexes have dropped for all but one month this year. Twelve of the 19 sub-sector gauges compiled by BSE Ltd. eased, led by banking companies while power producers were the top performers.   Investors will also be watching the expiry of monthly derivative contracts on Thursday, which may lead to some volatility in the markets.  Hindustan Unilever was the biggest contributor to the Sensex’s decline, decreasing 3.5%. Out of 30 shares in the Sensex, 10 rose and 20 fell. The Bloomberg Dollar Spot Index inched up modestly as the greenback traded mixed against its Group-of-10 peers; the Swiss franc led gains while Antipodean currencies were the worst performers and the euro traded in a narrow range around $1.05. The relative cost to own optionality in the euro heading into the July meetings of the ECB and the Federal Reserve was too low for investors to ignore and has become less and less underpriced. The yen strengthened and US and Japanese bond yields fell. In rates, fixed income has a choppy start. Bund futures initially surged just shy of 200 ticks on a soft regional German CPI print before fading the entire move over the course of the morning as Spanish data hit the tape, delivering a surprise record 10% reading for June and more hawkish ECB comments crossed the wires. Treasuries and gilts followed with curves eventually fading a bull-steepening move. Long-end gilts underperform, cheapening ~4bps near 2.75%. Peripheral spreads are tighter to core.  Treasuries are slightly higher as US trading day begins, off the session lows reached as bund futures jumped after the first monthly drop since November in a German regional CPI gauge. Yields are lower across the curve, by 1bp-2bp for tenors out to the 10-year with long-end yields little changed; 10-year declined as much as 5.3bp vs as much as 8.2bp for German 10- year, which remains lower by ~3bp. Focal points for the US session include a final revision of 1Q GDP, comments by Fed Chair Powell, and anticipation of quarter-end flows favoring bonds. Quarter-end is anticipated to cause rebalancing flows into bonds; Wells Fargo estimated that $5b will be added to bonds, with most of the flows occurring Wednesday and Thursday. In commodities, crude futures advance. WTI drifts 0.3% higher to trade near $112.13. Base metals are mixed; LME tin falls 5.6% while LME zinc gains 0.4%. Spot gold falls roughly $5 to trade near $1,815/oz Looking ahead, the highlight will be the panel at the ECB Forum that includes Fed Chair Powell, ECB President Lagarde and BoE Governor Bailey. We’ll also be hearing from ECB Vice President de Guindos, the ECB’s Schnabel, the Fed’s Mester and Bullard, and the BoE’s Dhingra. On the data side, releases include German CPI for June, Euro Area money supply for May, and the final Euro Area consumer confidence reading for June. From the US, we’ll also get the third reading of Q1 GDP. Market Snapshot S&P 500 futures little changed at 3,829.00 STOXX Europe 600 down 0.8% to 412.69 MXAP down 1.3% to 159.96 MXAPJ down 1.6% to 531.04 Nikkei down 0.9% to 26,804.60 Topix down 0.7% to 1,893.57 Hang Seng Index down 1.9% to 21,996.89 Shanghai Composite down 1.4% to 3,361.52 Sensex little changed at 53,204.17 Australia S&P/ASX 200 down 0.9% to 6,700.23 Kospi down 1.8% to 2,377.99 German 10Y yield little changed at 1.59% Euro little changed at $1.0510 Brent Futures down 0.4% to $117.46/bbl Gold spot down 0.2% to $1,816.09 U.S. Dollar Index little changed at 104.55 Top Overnight News from Bloomberg The Fed’s Loretta Mester said she wants to see the benchmark lending rate reach 3% to 3.5% this year and “a little bit above 4% next year” to rein in price pressures even if that tips the economy into a recession The ECB should consider raising interest rates by twice the planned amount next month if the inflation outlook deteriorates, according to Governing Council member Gediminas Simkus, as calls not to exclude an outsized initial move grow ECB has “ample room” to hike in 25bps-50bps steps to “whatever rate we think, we consider reasonable,” Governing Council member Robert Holzmann said in interview with CNBC Swedish consumers are gloomier than they have been since the mid-1990s, as prices surge on everything from fuel to food and furniture China’s President Xi Jinping declared Covid Zero the most “economic and effective” policy for the nation, during a symbolic visit to Wuhan in which he cast the strategy as proof of the superiority of the country’s political system NATO moved one step closer to bolstering its eastern front with Russia after Turkey dropped its opposition to Swedish and Finnish bids to join the military alliance A more detailed look at markets courtesy of Newsquawk Asia-Pac stocks were pressured amid headwinds from the US where disappointing Consumer Confidence data added to the growth concerns. ASX 200 failed to benefit from better than expected Retail Sales and was dragged lower by weakness in miners and tech. Nikkei 225 fell beneath the 27,000 level as industries remained pressured by the ongoing power crunch. Hang Seng and Shanghai Comp. conformed to the negative picture in the region although losses in the mainland were initially stemmed after China cut its quarantine requirements which the National Health Commission caveated was not a relaxation but an optimization to make it more scientific and precise. Top Asian News Chinese President Xi said China's COVID prevention control and strategy is correct and effective and must stick with it, via state media. Shanghai will gradually reopen museums and scenic sports from July 1st, state media reports. US Deputy Commerce Secretary Graves said the US will take a balanced approach on Chinese tariffs and that a clear response on China tariffs is coming soon, according to Bloomberg. China State Council's Taiwan Affairs Office said it firmly opposes the US signing any agreement that has sovereign connotations with Taiwan, according to Global Times. BoJ Governor Kuroda said Japanese Core CPI reached 2.1% in April and May which is almost fully due to international energy prices and Japan's economy has not been affected much by the global inflationary trend so monetary policy will stay accommodative, according to Reuters. Japanese govt to issue power supply shortage warning for a fourth consecutive day on Thursday, according to a statement. European bourses are on the backfoot as the region plays catch-up to the losses on Wall Street yesterday. Sectors are mostly lower (ex-Energy) with a defensive tilt as Healthcare, Consumer Products, Food & Beverages, and Utilities are more cushioned than their cyclical peers. Stateside, US equity futures trade on either side of the unchanged mark with no stand-out performers thus far, with the contracts awaiting the next catalyst. Top European News UK expects defence spending to reach 2.3% of GDP and said PM Johnson will announce new military commitments to NATO, according to Reuters. UK Weighs Capping Maximum Stake in Online Casinos at £5 Europe Is the Only Region Where Earnings Estimates Are Rising European Gas Prices Rise as Supply Risks Add to Storage Concerns Gold Steady as Traders Weigh Fed Comments on US Recession Risks Choppy Start for Euro-Area Bonds on Mixed Inflation FX Dollar mostly bid otherwise as rebalancing demand underpins - DXY pivots 104.500 within 104.700-350 confines. Franc outperforms on rate and risk considerations - Usd/Chf breaches 0.9550 and Eur/Chf approaches parity. Euro erratic in line with conflicting inflation data - Eur/Usd rotates around 1.0500. Aussie and Kiwi undermined by downturn in sentiment - Aud/Usd loses 0.6900+ status, Nzd/Usd wanes from just over 0.6250. Yen rangy following firmer than forecast Japanese retail sales and BoJ Governor Kuroda reaffirming intent to remain accommodative - Usd/Jpy straddles 136.00. Nokkie welcomes oil worker wage agreement with unions to avert strike action, but Sekkie hampered by softer Swedish macro releases pre-Riksbank policy call tomorrow - Eur/Nok probes 10.3000, Eur/Sek hovers around 10.6800. Rand rattled by decline in Gold and ongoing SA power supply problems, but Rouble rallies irrespective of CBR and Russian Economy Ministry divergence over deflation. Central Banks ECB's Lane said there are two-way inflation risks: "on the one side, there could be forces that keep inflation higher than expected for longer. On the other side, we do have the risk of a slowdown in the economy, which would reduce inflationary pressure", via ECB. ECB's Holzmann said "We will have to make an assessment where the economic development is going and where inflation stands and afterwards there’s ample room to hike in 0.25 and 0.5 levels to whatever rate we think, we consider reasonable" via CNBC. ECB's Simkus said if data worsens, then he wants a 50bps July hike as an option, 50bps hike is very likely in September; ECB's fragmentation tool should serve as a deterrent, via Bloomberg. ECB's Herodotou said EZ inflation will peak this year, via CNBC. ECB's Wunsch said government aid may spell more rate hikes, via Bloomberg; 150bps of hikes by March 2023 is reasonable ECB is said to be weighting whether or not they should announce the size and duration of their upcoming bond-buying scheme, according to Reuters sources. Fed's Mester (2022, 2024 voter) said on a path towards restrictive interest rates; July debate between 50bps and 75bps hike, via CNBC. Mester said if inflation expectations become unanchored, monetary policy would have to act more forcefully; current inflation situation is a very challenging one, via Reuters. SARB Governor said a 50bps hike is "not off the table", Via Bloomberg CBR Governor said she does not see risks of deflation; sees room to cut rates; sticking to policy of floating RUB exchange rate. PBoC will step up implementation of prudent monetary policy, will keep liquidity reasonably ample. Fixed Income Bunds unwind all and a bit more of their hefty post-NRW CPI gains as other German states show smaller inflation slowdowns and Spanish HICP soars. Gilts suffer more pronounced fall from grace in relative terms and US Treasuries slip from overnight peaks in sympathy. UK debt and STIRs also await testimony from MPC member elect to see if newbie leans dovish, hawkish or middle of the road 10 year benchmarks settle off worst levels within 147.37-145.14, 112.66-11.85 and 117-12+/116-27 respective ranges awaiting comments from ECB, Fed and BoE heads at Sintra Forum. Commodities WTI and Brent front-month futures traded with no firm direction in early European hours before picking up modestly in recent trade. US Private Inventory (bbls): Crude -3.8mln (exp. -0.6mln), Cushing -0.7mln, Distillate +2.6mln (exp. -0.2mln) and Gasoline +2.9mln (exp. -0.1mln). Norway's Industri Energi and SAFE labour unions agreed a wage deal for oil drilling workers and will not go on strike, according to Reuters. OPEC to start today at 12:00BST/07:00EDT; JMMC on Thursday at 12:00BST/07:00EDT followed by OPEC+ at 12:30BST/07:30EDT, via EnergyIntel. Libya's NOC suspends oil exports from Es Sider port. Spot gold is under some mild pressure as the Buck and Bond yields picked up, with the yellow metal back to near-two-week lows Base metals are mixed but off best levels after President Xi reaffirmed China's COVID stance – LME copper fell back under USD 8,500/t US Event Calendar 07:00: June MBA Mortgage Applications, prior 4.2% 08:30: 1Q PCE Core QoQ, est. 5.1%, prior 5.1% 08:30: 1Q GDP Price Index, est. 8.1%, prior 8.1% 08:30: 1Q Personal Consumption, est. 3.1%, prior 3.1% 08:30: 1Q GDP Annualized QoQ, est. -1.5%, prior -1.5% Central Banks 09:00: Powell Takes Part in Panel Discussion at ECB Forum in Sintra 09:00: Lagarde, Powell, Bailey, Carstens Speak in Sintra 11:30: Fed’s Mester Speaks on Panel at ECB Forum in Sintra 13:05: Fed’s Bullard Makes Introductory Remarks DB's Jim Reid concludes the overnight wrap I'm finishing this off in a taxi on the way to the Eurostar this morning and I made the mistake of telling the driver I was slightly pressed for time. He seems to be taking the racing line everywhere and my motion sickness is kicking in. A little like this car journey, it's been another volatile 24 hours in markets, with a succession of weak data releases raising further questions about how close the US and Europe might be to a recession. That saw equities give up their initial gains to post a decent decline on the day, whilst there was little respite from central bankers either, with sovereign bonds selling off further as multiple speakers doubled down on their hawkish rhetoric. That comes ahead of another eventful day ahead on the calendar, with investors primarily focused on a panel featuring Fed Chair Powell, ECB President Lagarde and BoE Governor Bailey, as well as the flash German CPI print for June, who are the first G7 economy to release their inflation print for the month, which will provide some further clues on how fast central banks will need to move on rate hikes. Just as we go to print the NRW region of Germany has seen CPI print at 7.5% YoY, way below last month's 8.1%. This region is around a quarter of GDP so it could imply the national numbers will be notably softer when we get them later. The energy tax cuts were always going to come through in June so some respite was always possible but at first glance this seems materially below what might have been expected. This comes after a significant sovereign bond selloff in Europe once again yesterday as President Lagarde reiterated the central bank’s determination to bring down inflation, and described inflation pressures that were “broadening and intensifying”. And although Lagarde stuck to the existing script about the ECB raising rates by 25bps at the next meeting, we also heard from Latvia’s Kazaks who said that “front-loading the increase would be a reasonable choice” in the event that the situation with inflation or inflation expectations deteriorates. Lagarde did nod to this in part, saying that if the ECB was “to see higher inflation threatening to de-anchor inflation expectations, or signs of a more permanent loss of economic potential that limits resources availability, we would need to withdraw accommodation more promptly to stamp out the risk of a self-fulfilling spiral.” Separately on fragmentation, Lagarde said that they could “use flexibility in reinvesting redemptions” from PEPP starting July 1 in order to deal with the issue. For now, overnight index swaps are only pricing in a +31.3bps move in July from the ECB, so still closer to 25 than 50 for the time being. Meanwhile the rate priced in by year-end rose also by +7.9bps as investors interpreted the comments in a hawkish light. That supported a further rise in yields, with those on 10yr bunds up another +8.1bps yesterday, following on from their +10.7bps move in the previous session. That’s now almost reversed the -21.9ps move over the previous week, which itself was the third-largest weekly decline in bund yields for a decade, and brought the 10yr yield back up to 1.63%, so not far off its multi-year high of 1.77% seen last week. A similar pattern was seen elsewhere, with 10yr yields on 10yr OATs (+9.6bps), BTPs (+4.2bps) and gilts (+7.2bps) all moving higher too. Things turned near the European close with some poor US data releases piling on to some lacklustre confidence figures in Europe. Earlier in the day the GfK consumer confidence reading from Germany fell to -27.4 (vs. -27.3 expected), taking it to another record low. Separately in France, consumer confidence fell to 82 on the INSEE’s measure (vs. 84 expected), which we haven’t seen since 2013. Then in the US, the Conference Board’s measure fell to 98.7 (vs. 100.0 expected), which is the lowest since February 2021. The Conference Board’s one-year ahead inflation expectations hit a record high of 8.0%, surpassing the June 2008 record of 7.7%, adding to the pessimism. Along with waning confidence, the Richmond Fed’s Manufacturing Index registered a -19, its lowest since the peak onset of the pandemic, versus expectations of -7 and a prior of -9, showing that production data has weakened as well. This put a serious damper on risk sentiment which drove Treasury yields and equities lower intraday during the New York session. 10yr Treasury yields ended down -2.8bps after trading as much as +5.5bps higher during the European session. They are down another -4bps this morning. Concerningly as well, there was a fresh flattening in the Fed’s preferred yield curve indicator (which is 18m3m – 3m), which came down another -9.1bps to 165bps, which is the flattest its been since early March. With that succession of bad news helping to dampen risk appetite, US equities gave up their opening gains to leave the S&P 500 down -2.01% on the day. Tech stocks saw the worst losses, with the NASDAQ (-2.98%) and the FANG+ (-3.74%) seeing even larger declines. And whilst there was a stronger performance in Europe, the STOXX 600 ended the day up just +0.27%, having been as high as +0.95% in the couple of hours before the close. We didn’t hear so much from the Fed ahead of Chair Powell’s appearance today, although New York Fed President Williams said that at the upcoming July meeting “I think 50 to 75 is clearly going to be the debate”. Markets are continuing to price something in between the two, although since the last Fed meeting futures have been consistently closer to 75 than 50, with 69.0 bps right now. Those sharp losses in US equities are echoing across Asia this morning. The Hang Seng (-1.86%) is leading the losses followed by the Kospi (-1.82%), the Nikkei (-1.07%) and the ASX 200 (-1.06%). Over in mainland China, the Shanghai Composite (-0.77%) and the CSI (-0.80%) are slightly out-performing after yesterday’s surprise move by China to slash the quarantine period for inbound travellers (more on this below). Looking ahead, US stock index futures point to a positive opening with contracts on the S&P 500 (+0.18%) and NASDAQ 100 (+0.19%) mildly higher. Earlier today, data released showed that Japan’s retail sales advanced for the third consecutive month in May (+3.6% y/y) but lower than the consensus of +4.0%, but with the previous month's data revised up to +3.1% (vs +2.9% preliminary). Meanwhile, South Korea’s consumer sentiment index (CSI) fell sharply to 96.4 in June (vs 102.6 in May), sliding below the long-term average of 100 for the first time since Feb 2021. Separately, Australia’s retail sales put in another strong performance as it climbed +0.9% m/m in May, surpassing analyst estimates of a +0.4% increase. Oil has fallen back slightly overnight after three sessions of gains with Brent futures down -0.84% at $116.99 and WTI futures (-0.64%) at $111.04/bbl as I type. Just after we went to press yesterday, it was also announced that China would be shortening the required quarantine period for inbound travellers to one week from two. So although China is still very-much committed to a Covid-zero strategy for the time being, this step towards loosening rather than tightening restrictions is an interesting development that helped support Chinese equities in yesterday’s session towards the close which filtered through into early northern hemisphere risk performance. In terms of other data yesterday, there were signs that US house price growth might finally be slowing somewhat, with the S&P CoreLogic Case-Shiller index up by +20.4% in April, which is down slightly from the +20.6% gain in March. So still a long way from an absolute decline, but that marks a reversal in the trend after the previous 4 months of rises in the year-on-year measure. To the day ahead now, and the highlight will likely be the panel at the ECB Forum that includes Fed Chair Powell, ECB President Lagarde and BoE Governor Bailey. We’ll also be hearing from ECB Vice President de Guindos, the ECB’s Schnabel, the Fed’s Mester and Bullard, and the BoE’s Dhingra. On the data side, releases include German CPI for June, Euro Area money supply for May, and the final Euro Area consumer confidence reading for June. From the US, we’ll also get the third reading of Q1 GDP. Tyler Durden Wed, 06/29/2022 - 08:00.....»»

Category: smallbizSource: nytJun 29th, 2022

Apple (AAPL) Boosts Content Portfolio With Animal Pictures Deal

Apple (AAPL) TV+ announces that the company has signed a new deal with Maya Rudolph's production company Animal Pictures for new shows. Apple AAPL TV+ recently announced that the company has signed a new deal with Maya Rudolph's production company Animal Pictures for new shows.The recent deal comes right after Apple TV+ debuted its new comedy series Loot, starring Maya Rudolph, last week.The first-look deal gives Apple TV+ exclusive access to all TV series and digital films in production at the Animal Pictures studio first and the first right to refusal as well. Animal Pictures can shop its product to other potential buyers in the industry only following a refusal by Apple.Apple has previously inked similar deals with other production companies as the company is investing heavily to build its content portfolio. Deals with other notable production houses include Scott Free Productions, Appian Way, Sikelia Productions and Green Door Pictures, to name a few.Apple Inc. Price and Consensus Apple Inc. price-consensus-chart | Apple Inc. QuoteApple's Contract Strategy Driving Market ShareApple's new deal with Rudolph's production house exhibits the company's strategy to beat the competition by winning market share in an already saturated market. The company is signing first-look deals with notable production houses, which is giving Apple access to content earlier than its competitors like Netflix NFLX and Disney DIS.Every major streaming company is trying to win market share with original and new content. Apple being a more cash-rich company than its peers, is capitalizing on the advantage by blocking access to its peers, which is especially hurting companies like Netflix.Netflix enjoys the leading position in the streaming industry. The company has been spending aggressively to build its original content portfolio. However, in its first-quarter 2022 earnings, NFLX reported that it has lost customers for the first time in a decade due to stiff competition.Apple has been expanding its genre base to attract varied viewers, as evident from its foray into the live sports streaming space. Apple TV+ has won exclusive rights to broadcast Major League Soccer ("MLS") worldwide starting from 2023 for 10 years.However, Apple is facing stiff competition from Disney and Amazon AMZN in the live sports streaming space.Disney primarily dominates the live sports streaming space with its ESPN, which is home to several live sporting events like the F1 race, La Liga, Bundesliga, UEFA Champions League and the NBA.Another major contender in the live sports streaming space is Amazon, which is well ahead of Apple in this race.Amazon signed a long-term deal with the National Football League (NFL) that makes its streaming service — Prime Video — the exclusive broadcaster of Thursday Night Football, beginning with the 2022 season.Apple's shares have been negatively impacted by the ongoing COVID-induced lockdowns in Shanghai, global supply chain disruptions, the Russia-Ukraine war, rising inflation and Fed's rate hikes. These macro-economic events have made the share market extremely unpredictable and volatile. This is quite evident from the performance of the Nasdaq Composite index, which is filled with tech stocks.Apple's shares have fallen 20.7% in the year-to-date period compared with the Zacks Computer - Mini computers industry's decline of 19.7%.However, Apple TV+'s lower price compared with its competitors in the United States and the first-look deal strategy that helps expand Apple TV+'s content portfolio are expected to attract viewers from its competitors. This is likely to drive Services revenues, which will impact shareholders' wealth positively in the long run.Apple currently carries Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 28th, 2022

5 Undervalued ETFs to Buy for Second Half 2022

Persistent high inflation and an economic downturn caused by a hawkish Fed continued to weigh on investor sentiment. This has made the stocks cheaper, compelling investors to buy the dip. U.S. stocks are on track for the worst first half of the year in more than 50 years. Persistent high inflation and an economic downturn caused by a hawkish Fed continued to weigh on investor sentiment. This has made the stocks cheaper, compelling investors to buy the dip.Using our database, first we have selected ETFs with a Zacks Rank #1 (Strong Buy) or 2 (Buy). This is because these ranks suggest strengthening fundamentals and superior weighting methodologies that could allow them to lead higher than their cousins in a booming market. Then, we narrowed down the list to funds having a lower P/E ratio than 21.7 for the broad market fund SPY.We have highlighted five ETFs from different zones of the market that are currently undervalued and could generate solid returns in a rising stock market. These are Invesco S&P SmallCap Energy ETF PSCE, U.S. Global Jets ETF JETS, First Trust Financials AlphaDEX Fund FXO, Invesco DWA Healthcare Momentum ETF PTH and Invesco S&P MidCap Value with Momentum ETF XMVM.With a few trading days left to end the first half, the S&P 500 is down about 18% as the Fed tightens monetary policy in its fight against the highest inflation in decades. An increase in interest rates means higher loan rates for consumers and businesses, including mortgages, credit cards and auto loans that will likely cut consumer spending, thereby hurting economic growth (read: Long/Short ETFs to Consider Amid Market Turmoil).However, many market researchers project a strong recovery in the stock market based on historical data. Per LPL Financial, sharp falls in stocks have often been followed by steep rebounds. The past years in which the S&P 500 was down at least 15% at the midway point saw the final six months higher every single time, with an average return of nearly 24%.The trend might come true as the S&P 500 jumped more than 6% last week, its first weekly advance since late May and its second-best week of 2022 to date. The latest comments from Fed officials buoyed up the sentiment on the economy, and a reading on inflation expectations eased. Federal Reserve Chair Jerome Powell, in his testimony, has committed to bringing inflation down. He said that economic conditions are generally favorable, pointing to a strong labor market and high demand (read: S&P 500's Second-Best Week in 2022: Best Leveraged ETFs).Additionally, the initial phase of the rate increase will be good for stocks as it will reflect an improving economy, thereby benefiting cyclical sectors like financials, technology, industrials and consumer discretionary.ETFs to BuyInvesco S&P SmallCap Energy ETF (PSCE) – P/E Ratio: 3.72Invesco S&P SmallCap Energy ETF offers exposure to the companies that are principally engaged in producing, distributing or servicing energy-related products, including oil and gas exploration and production, refining, oil services and pipelines. It tracks the S&P Small Cap 600 Capped Energy Index, holding 29 stocks in its basket (read: Energy ETFs Scaling 52-Week Highs: Will This Continue?).Invesco S&P SmallCap Energy ETF has accumulated $140 million in its asset base and charges 29 bps in annual fees. It trades in an average daily volume of 476,000 shares and gas a Zacks ETF Rank #2.U.S. Global Jets ETF (JETS) – P/E Ratio: 4.32U.S. Global Jets ETF provides exposure to the global airline industry, including airline operators and manufacturers from all over the world, by tracking the U.S. Global Jets Index. The product holds 51 securities and charges 60 bps in annual fees.U.S. Global Jets ETF has gathered $2.6 billion in its asset base while seeing a heavy trading volume of nearly 6 million shares a day. JETS has a Zacks ETF Rank #2.First Trust Financials AlphaDEX Fund (FXO) – P/E Ratio: 8.01First Trust Financials AlphaDEX Fund targets the broad financials sector and follows the StrataQuant Financials Index, which employs the AlphaDEX stock selection methodology to select stocks from the Russell 1000 Index. Holding 100 stocks in its basket, the ETF has amassed $1.1 billion and charges 61bps in annual fees (read: Fed Raises Rates by 75 bps: ETFs Set to Surge).First Trust Financials AlphaDEX Fund trades in an average daily volume of 275,000 shares and has a Zacks ETF Rank #2.Invesco DWA Healthcare Momentum ETF (PTH) – P/E Ratio: 8.86Invesco DWA Healthcare Momentum ETF follows the Dorsey Wright Healthcare Technical Leaders Index and holds a basket of 43 U.S. companies. It has AUM of $234.7 million and charges 60 bps in annual fees. Healthcare providers and services takes the largest share at 30.7%, while biotechnology and pharmaceuticals round off the next two with double-digit exposure each.Invesco DWA Healthcare Momentum ETF trades in a light average daily volume of 16,000 shares and has a Zacks ETF Rank #2.Invesco S&P MidCap Value with Momentum ETF (XMVM) – P/E Ratio: 10.77Invesco S&P MidCap Value with Momentum ETF follows the S&P MidCap 400 High Momentum Value Index, which is composed of securities in the S&P MidCap 400 Index having both the highest value scores and momentum scores. It holds 80 stocks in its basket with key holdings in financials, consumer discretionary, industrials and materials.Invesco S&P MidCap Value with Momentum ETF has accumulated $218.6 million in its asset base while trades in a volume of 45,000 shares per day, on average. The fund charges 39 bps in annual fees and has a Zacks ETF Rank #2. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco S&P SmallCap Energy ETF (PSCE): ETF Research Reports U.S. Global Jets ETF (JETS): ETF Research Reports Invesco DWA Healthcare Momentum ETF (PTH): ETF Research Reports First Trust Financials AlphaDEX ETF (FXO): ETF Research Reports Invesco S&P MidCap Value with Momentum ETF (XMVM): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 28th, 2022

ArcelorMittal (MT) Signs MoU With RWE for Energy Supply

ArcelorMittal (MT) and RWE will work together to develop, build and operate offshore wind farms and hydrogen facilities to supply renewable energy. ArcelorMittal MT recently signed a memorandum of understanding with the energy company, RWE. The companies will work together to develop, build and operate offshore wind farms and hydrogen facilities to supply the renewable energy and green hydrogen required to produce low-emissions steel in Germany.ArcelorMittal Germany needs renewable energy on a large scale to decarbonize its production sites in Bremen, Hamburg, Eisenhuttenstadt and Duisburg as planned.RWE and ArcelorMittal are exploring options for combined participation in tenders for offshore wind farm sites in the North Sea. The amendment of the "Wind Energy at Sea Act" (WindSeeG) currently under way is key for success, as it will permanently shape the cost structure in the German offshore wind sector.The companies will work together on developing green hydrogen by collectively looking for areas where electrolysis plants can be built to supply the steel production sites in Bremen and Eisenhuttenstadt.RWE and ArcelorMittal plan to conclude long-term purchase agreements for wind power and green hydrogen. With RWE’s expertise in offshore wind farms and electrolyzers and ArcelorMittal as a guaranteed buyer of green electricity and hydrogen, the two companies would have opportunities for a viable partnership arrangement.Shares of ArcelorMittal have declined 22.3% in the past year compared with the 19.4% decline of the industry.Image Source: Zacks Investment ResearchThe company, in its last earnings call, said that it now envisions global apparent steel consumption to decline slightly by up to 1% in 2022, compared with the previous guidance of an increase up to 1%. The longer-term fundamental outlook for steel is positive. China is also focusing on decarbonization and removing VAT rebates on steel exports. Actions taken by governments to protect against the threats of unfair trade are also encouraging.ArcelorMittal Price and Consensus  ArcelorMittal price-consensus-chart | ArcelorMittal Quote Zacks Rank & Key PicksArcelorMittal currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the basic materials space are Allegheny Technologies Inc. ATI, Cabot Corporation CBT and Nutrien Ltd. NTR.Allegheny has a projected earnings growth rate of 1,076.9% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 40.4% upward in the past 60 days.Allegheny’s earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI has gained around 15% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Cabot, currently carrying a Zacks Rank #2, has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 16.7% over a year.Nutrien has a projected earnings growth rate of 174.6% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 30.7% upward in the past 60 days.Nutrien’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 5.8%. NTR has gained 41.1% in a year. The company flaunts a Zacks Rank #1. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ArcelorMittal (MT): Free Stock Analysis Report Allegheny Technologies Incorporated (ATI): Free Stock Analysis Report Cabot Corporation (CBT): Free Stock Analysis Report Nutrien Ltd. (NTR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 28th, 2022

United Natural (UNFI) Poised on Online Sales & Growth Pillars

United Natural (UNFI) is benefiting from e-commerce strength, thanks to its increased online solutions. The company is undertaking acquisitions to drive growth. United Natural Foods, Inc. UNFI looks well positioned, courtesy of strength in its e-commerce operations. North America's premier food wholesaler is undertaking prudent acquisitions to drive growth. The company’s Fuel the Future strategy and growth pillars are noteworthy.Let’s discuss the factors driving United Natural’s growth.Image Source: Zacks Investment ResearchE-commerce StrengthUnited Natural’s sales are benefiting from e-commerce strength, thanks to increased e-commerce solutions offered by the company. Several of the company’s Independents channel and a Chains channel provide e-commerce solutions to their customers. United Natural offers digital platforms and the support needed by its customers. Management is on track to roll out additional marketing and analytics capabilities to improve customers’ brand experience. United Natural is keen on strengthening its e-commerce business. To this end, the company launched Community Marketplace — a business-to-business digital e-commerce solution. The platform is designed for emerging brands, which will help the company expand distribution with United Natural’s customers.Acquisitions Driving GrowthThe Zacks Rank #1 (Strong Buy) company is undertaking various acquisitions over the years to expand its distribution network and customer base and boost long-term growth. In this regard, United Natural completed the buyout of SUPERVALU in October 2018. The enhanced scale of the combined entities is aiding UNFI’s performance. The merger has provided better-competing grounds to the company in the grocery space by augmenting offerings.Several other companies in the food space are benefiting from acquisitions like McCormick & Company MKC, Hormel Foods Corporation HRL and The Hershey Company HSY. McCormick increased its presence through acquisitions to enhance its portfolio. MKC bought a 100% stake in FONA International, LLC and some of its affiliates. FONA’s diverse portfolio helps McCormick bolster its value-add offerings and expand the flavor solutions segment into attractive categories. In November 2020, McCormick completed the acquisition of the parent company of Cholula Hot Sauce — a premium Mexico-based hot sauce brand.Hormel Foods is strengthening its business on the back of strategic acquisitions. In June 2021, the company acquired the Planters snacking portfolio. Before this, HRL acquired Texas-based pit-smoked meats company Sadler's Smokehouse in March 2020. The buyout is in sync with Hormel Foods’ initiatives to strengthen its position in the foodservice space.Hershey is undertaking buyouts to augment portfolio strength and boost revenues. In December 2021, Hershey acquired Dot’s Pretzels LLC — the owner of Dot’s Homestyle Pretzels — a leading brand in the pretzel category. The addition of Dot’s Pretzels is a perfect match for HSY’s growing salty snacking portfolio. The company also acquired Pretzels Inc. from an affiliate of Peak Rock Capital. The acquisition expands Hershey’s snacking and production capabilities.Other Growth Initiatives on TrackUnited Natural has been benefiting from its Fuel the Future strategy, unveiled in June 2021. Management is on track to increase market share through network optimization, solid innovation and a better customer experience. In its last earnings call, the company highlighted that it focuses on four areas to execute the Fuel the Future strategy and achieve its fiscal 2024 financial targets. The four priorities include a focus on delivering major value to its customers, improving the way of partnering with suppliers, providing associates with unmatched career opportunities and supporting communities and the planet. The company is inclined to enhance every aspect of its sales and supply chain execution to deliver products and services to its customers. In this regard, the company’s one-UNFI initiative has been gaining traction. We note that management expects to achieve average annual growth rates for net sales of 3-5%, adjusted EBITDA of 6-10% and adjusted earnings of 12-18% in fiscal 2024.United Natural is on track to undertake growth initiatives under its future pillar that includes brands, professional services and fresh. As part of growing its brand’s business, management is making progress with the three-pronged strategy based on deepening its penetration with existing customers, introducing owned brands to new customers and channels and undertaking customer-friendly innovations. The company is on track to expand its professional services by bringing new ideas to its customers. The company is on track to invest in its people, infrastructure and technology as part of its new growth pillar.We believe that such well-chalked growth endeavors and the aforementioned upsides will likely help the company stay in investors’ good books. UNFI’s stock has gained 12.6% in the past year against the industry’s 5.8% decline.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hershey Company The (HSY): Free Stock Analysis Report Hormel Foods Corporation (HRL): Free Stock Analysis Report McCormick & Company, Incorporated (MKC): Free Stock Analysis Report United Natural Foods, Inc. (UNFI): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksJun 28th, 2022

3 Stocks That Warren Buffett Can"t Get Enough Of

Buffett has been on a buying spree in 2022, undoubtedly a rare occurrence. It raises a valid question - what has he bought this year? It may not be as surprising as one would think. One of the most widely-followed individuals in the financial world is the mega-popular Warren Buffett. Recognized as one of the most successful investors of all time, it’s easy to see why eyes are constantly fixated on him and why investors are always waiting on his next move.Warren Buffett is a philanthropist and businessman. He’s the CEO of Berkshire Hathaway, a diversified holding company whose subsidiaries engage in insurance, freight rail transportation, energy generation and distribution, manufacturing, and many others.Throughout his life, he’s reaped stellar returns in the market. Simply put, he’s been excellent in choosing stocks, and that’s what we’re here to look at today.On Monday, it was revealed in a regulatory filing that Berkshire Hathaway had acquired an additional 795,000 shares of Occidental Petroleum Corp. OXY, which increased the company’s stake to 16.4%.Buffett has been on a buying spree in 2022, something we typically do not see. However, it does raise a valid question – what else has he bought in 2022? Let’s take a deeper dive into his OXY purchase and two other of his 2022 purchases.Occidental Petroleum CorporationFounded in 1920, Occidental Petroleum Corporation OXY is an integrated oil and gas company with significant exploration and production exposure. The company is also a producer of various basic chemicals, petrochemicals, polymers, and specialty chemicals. OXY operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing.OXY shares have been scorching hot year-to-date, as illustrated in the chart below.Image Source: Zacks Investment ResearchThe company has reported strong quarterly results, exceeding EPS expectations consistently. Over its last four quarters, the company has beat bottom-line estimates on average by 7.6%, and in its latest quarterly release, OXY crushed EPS estimates by a sizable 26%.Additionally, bottom-line growth rates are stellar across several timeframes. The $2.88 EPS estimate for the upcoming quarter reflects a jaw-dropping 800% growth in earnings from the year-ago quarter.Perhaps even more impressive, FY22 earnings are forecasted to climb a massive triple-digit 306% year-over-year. Analysts have pushed their estimates higher across the board over the last 60 days.Image Source: Zacks Investment ResearchOXY is a Zacks Rank #3 with an overall VGM Score of an A.AppleWe’re all familiar with Apple AAPL, the creator of the legendary iPhone, among many other widely-popular products. The company has completely shifted the mobile phone landscape over the last decade, and it’s been one of the best places for investors to park their cash.AAPL shares have struggled year-to-date, declining approximately 21% in value and slightly underperforming the S&P 500.Image Source: Zacks Investment ResearchNumerous times, Buffett has stated that he’s attracted to Apple due to a simple fact – brand loyalty. Apple consumers have a strong tendency to trade in old Apple products for new ones, establishing a loyal customer base. Additionally, he believes that the company’s services and products are very beneficial and crucial to society.AAPL has provided stellar quarterly results, exceeding bottom-line expectations in a whopping 19 out of its last 20 quarterly reports. The company has acquired a four-quarter trailing average EPS surprise of a double-digit 12%, and in its latest quarter, it exceeded EPS expectations by a robust 6.3% in the face of adverse business conditions.Analysts have primarily dialed back their earnings estimates over the last 60 days, with the $1.14 per share estimate for the upcoming quarter reflecting a somewhat concerning 12% decrease in earnings from the year-ago quarter.However, the $6.11 EPS estimate for FY22 displays a robust 9% growth in the bottom-line year-over-year.Image Source: Zacks Investment ResearchApple is a Zacks Rank #3 (Hold) with an overall VGM Score of a C.Chevron Chevron CVX is one of the world's largest publicly traded oil and gas companies, with operations that span nearly all corners of the globe.CVX shares have been hot year-to-date, increasing approximately 30% in value and extensively outperforming the S&P 500.Image Source: Zacks Investment ResearchBerkshire Hathaway significantly raised its stake in the oil giant, becoming one of the largest holds in the portfolio. Similar to OXY, it represents a massive bet on the oil industry, a primary focus of attention within the market throughout 2022.CVX has had mixed quarterly results over its last four reports, missing EPS expectations twice and exceeding them twice. In its latest quarter, the company reported EPS of $3.36, which missed the Zacks Consensus Estimate of $3.44 per share by a slight 2.3%.Analysts have dialed back their earnings estimates over the last 60 days, but bottom-line growth remains robust. For the upcoming quarter, the $4.69 per share estimate displays a substantial 175% growth in earnings from the year-ago quarter.Furthermore, for the current fiscal year, the $17.50 EPS estimate reflects a massive triple-digit expansion of 115% within the bottom-line year-over-year.Image Source: Zacks Investment ResearchCVX is a Zacks Rank #3 (Hold) with an overall VGM Score of an A.Bottom LineCommonly referred to as the “Oracle of Omaha,” Warren Buffett has amassed a fortune within the stock market, making it easy to understand why investors anxiously await every move he makes.He’s been on a buying spree year-to-date, which we generally don’t see. The Berkshire CEO undoubtedly recognizes all of the discounts that 2022 has brought us and has deployed an offensive approach.All three stocks above are ones in which Buffett has increased his position size in throughout 2022, putting them in the spotlight. For investors seeking to invest like the Oracle of Omaha, all three companies above would provide that approach. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report Occidental Petroleum Corporation (OXY): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksJun 28th, 2022