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Mitac optimistic about 2022

Mitac Holdings has expressed optimism about its operations next year, thanks to robust orders for servers, as well as recovery in demand for automotive and industrial tablets......»»

Category: topSource: digitimesNov 25th, 2021

United Hampshire REIT acquires two more shopping centers

United Hampshire US REIT (UHREIT), a Singapore real estate investment trust sponsored by UOB Global Capital and The Hampshire Companies, has acquired Penrose Plaza, a 258,494 s/f grocery-anchored shopping center located at 2900 Island Ave in Philadelphia, Pa., and Colonial Square, a 168,326 s/f grocery-anchored shopping center located at 3107 Boulevard in Colonial... The post United Hampshire REIT acquires two more shopping centers appeared first on Real Estate Weekly. United Hampshire US REIT (UHREIT), a Singapore real estate investment trust sponsored by UOB Global Capital and The Hampshire Companies, has acquired Penrose Plaza, a 258,494 s/f grocery-anchored shopping center located at 2900 Island Ave in Philadelphia, Pa., and Colonial Square, a 168,326 s/f grocery-anchored shopping center located at 3107 Boulevard in Colonial Heights, a suburb of Richmond, Va. The transactions mark the UHREIT’s first post-IPO acquisitions and the UHREIT’s first acquisitions in their respective states. The additions of Penrose Plaza and Colonial Square bring the total number of assets in the UHREIT to 24. Spanning over 3.6 million square feet, the UHREIT currently contains 20 grocery-anchored and necessity-based properties and four modern self-storage facilities along the Interstate 95 corridor. PENROSE PLAZA Currently 94.1 percent leased, Penrose Plaza is anchored by ShopRite and is home to a diverse array of additional tenants including dd’s Discounts, Dollar Tree and Citi Trends. Located in Southwest Philadelphia, 581,000 people live within a five-mile radius of the property and its convenient location offers superior regional connectivity via nearby major highway arteries such as Interstates 95, 476 and 76. In addition to favorable residential demographics, over 20,000 businesses employing nearly 194,000 people can be found within a five-mile radius. Major local employers include the U.S. Postal Service, Amazon and Philadelphia International Airport.  Located off Interstate 95 just south of Richmond, Va., Colonial Square is accessible to the 87,400 people residing within the immediate vicinity of the property as well as the growing Richmond metro area. The shopping center enjoys a strong nearby business community with over 3,000 nearby employers including Fort Lee and Virginia State University. The property consistently experiences high occupancy rates standing at 99.1 percent leased and is home to anchor tenant Publix and as well as Locke Supply Co., Wells Fargo and Dollar General. “Strong annual GDP growth and an improving economy have continued to power a robust necessity-based retail real estate market across the eastern United States,” said Robert Schmitt, Chief Executive Officer of the UHREIT. “The acquisition of these two properties represents a significant opportunity to tap into this continued strength by adding two high quality, resilient and stable income-producing grocery-anchored and necessity-based properties to our already robust portfolio of high performing assets.” Derek Gardella, Head of Investments of the UHREIT added, “With highly favorable demographics, strong population density and strong buying power in the eastern portion of the United States, the overall grocery-anchored real estate market has shown remarkable resilience throughout all stages of the pandemic. As we look to 2022, we remain optimistic about the broader market’s long-term prospects and look forward to identifying further opportunities to acquire grocery-anchored and necessity-based retail properties in the eastern half of the country to continue to grow the UHREIT and tap into continued demand.” The seller in the Penrose Plaza transaction was represented by Brad Nathanson, Senior Managing Director Investments at Institutional Property Advisors. The Seller in the Colonial Heights transaction was represented by JLL Capital Markets Senior Director Jordan Lex, Director Daniel Naughton and Managing Director Bill Moylan. The post United Hampshire REIT acquires two more shopping centers appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyDec 3rd, 2021

What Makes Suburban Propane Partners, L.P. (SPH) a New Strong Buy Stock

Suburban Propane Partners, L.P. (SPH) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy). Investors might want to bet on Suburban Propane Partners, L.P. (SPH), as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.As such, the Zacks rating upgrade for Suburban Propane Partners, L.P. is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.For Suburban Propane Partners, L.P. rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.Earnings Estimate Revisions for Suburban Propane Partners, L.P.For the fiscal year ending September 2022, this company is expected to earn $2.07 per share, which is a change of 6.7% from the year-ago reported number.Analysts have been steadily raising their estimates for Suburban Propane Partners, L.P. Over the past three months, the Zacks Consensus Estimate for the company has increased 15.6%.Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.You can learn more about the Zacks Rank here >>>The upgrade of Suburban Propane Partners, L.P. to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>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 Suburban Propane Partners, L.P. (SPH): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 3rd, 2021

Top Research Reports for Apple, Cisco & Linde

Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Cisco Systems, Inc. (CSCO), and Linde plc (LIN). Friday, December 3, 2021The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. AAPL, Cisco Systems, Inc. CSCO, and Linde plc LIN. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.You can see all of today’s research reports here >>>Shares of Apple have outperformed the S&P 500 over the past year (+34.4% vs. +26%). The Zacks analyst believes that Apple has been benefiting from the continued momentum in the Services segment and robust performances from iPhone, iPad, Mac.Apple’s Services and Wearables businesses are expected to drive top-line growth in fiscal 2022 and beyond. AAPL’s Services portfolio has emerged as its new cash cow. Apple expects revenues for each product category to grow year-over-year, except for iPad, which is expected to decline on the back of supply shortages. Supply chain constraints due to paucity of silicon and COVID-related manufacturing disruptions remain a headwind.(You can read the full research report on Apple here >>>)Cisco shares have gained +29.7% in the year to date period against the Zacks Computer Networking industry’s gain of +27.1%. The Zacks analyst is optimistic about dominant market position, innovative prowess, product range, growth initiatives and dividend payouts. Order growth in new markets is another major positive.Healthy uptake of identity and access, advanced threat and unified threat management security solutions amid high growth in Internet traffic is likely to drive Cisco’s growth in the quarters ahead. The buyout of Acacia Communications also bodes well. Integration risks as well as stiff competition from smaller players remain headwinds, though.(You can read the full research report on Cisco here >>>)Shares of Linde have gained +7.3% in the last six months against the Zacks Oil and Gas - Field Services industry’s loss of -3.5%. The Zacks analyst believes that Linde is gaining on the back of recovering industrial gas demand at a time when industrial production is improving worldwide.With a wide range of applications for its industrial gases, Linde is making the world more productive by the day. Linde’s process gas, hydrogen, is being utilized for clean fuels, while its high-purity and specialty gases are employed to manufacture electronics. Since the third quarter last year, however, there has been a steady decline in LIN’s contractual sale of gas product backlog.(You can read the full research report on Linde here >>>)Other noteworthy reports we are featuring today include Capital One Financial Corp. COF, Exelon Corp. EXC and Keurig Dr Pepper Inc. KDP.Mark VickerySenior EditorNote: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>> Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exelon Corporation (EXC): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Capital One Financial Corporation (COF): Free Stock Analysis Report Linde plc (LIN): Free Stock Analysis Report Keurig Dr Pepper, Inc (KDP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 3rd, 2021

Biden still has a rosy view on the economy despite a bad November jobs report. Here"s 3 reasons why he may be right to be optimistic.

"Simply put: America's back to work and our jobs recovery is going very strong," Biden said on Friday. A close look at the data shows he may be right. President Joe Biden speaks to members of the press at the South Lawn of the White House on November 19, 2021.Alex Wong/Getty Images Biden touted a sharp drop in the jobless rate and argued the economy is on the right track. There's a problem, though: the economy added about half as many jobs as expected in November. But there are three reasons Biden might be right to be optimistic. The latest jobs report released Friday showed the US economy regained 210,000 jobs in November, a paltry sum that was roughly half what economists had forecasted. The soft report underscored the pandemic's ongoing impact on hiring.But President Joe Biden kept his rosy view on the economy. On Friday, he gave brief remarks and touted a sharp drop in the unemployment rate and rising wages, particularly for hourly-paid workers employed at hotels and restaurants."Simply put: America's back to work and our jobs recovery is going very strong," he said on Friday.There are other problems facing the economy. At least 1.5 million women still haven't re-entered the labor force and are sitting on the sidelines, restrained by the pandemic and many often shouldering the burden of childcare. Inflation also remains a problem, though the supply-chain backlogs that are mainly driving it may be easing.But here are three reasons Biden may be right to be optimistic on other aspects of the jobs report.The strong possibility of upward revisionsThe Bureau of Labor Statistics is the federal agency that releases the jobs report every month. The pandemic has complicated their efforts to accurately gauge swift changes in the labor market. Some of the reasons include businesses being slower to respond to their official survey and it's simply more difficult to capture patterns in real time during a pandemic.Insider reported last month that the BLS had reported revisions since May 2020 that added a whopping 1.2 million more jobs added than previously thought. It makes the possibility of another upward revision for November possible when the next report is issued next month. Indeed, the November report included yet more revisions for the last several months — all upward."I think the modeling is super challenging for @BLS_gov in this environment & I don't think this is a credible estimate," Tony Fratto, a former Bush administration official who served in the Treasury, wrote on Twitter.A sharp drop in the unemployment rateThe unemployment rate fell to 4.2%, the lowest level during the pandemic. That's lower than any month during President Barack Obama's eight years in office.As Insider's Juliana Kaplan, Ayelet Sheffey and Andy Kiersz reported, BLS data is showing that many millions of people want to work, but available jobs aren't aligned with the pay they seek — or other conditions. Trouble getting affordable childcare and COVID-19 fears are both obstacles as well. Still, experts say that unemployment will keep falling as the pandemic subsides."More workers came back to work last month as Delta wound down," Mark Zandi, an economist at Moody's Analytics, wrote on Twitter. "We still have a ways to go to get back to full employment, but it is coming into view."More people are heading back to workThe labor force participation rate hit 61.8% in November — the highest level since March 2020, according to Steven Rattner, a former Obama administration official.Part of that reflects an increase in the amount of people aged 25 to 54 — considered "prime-age workers" — re-entering the workforce, per Indeed economist Nick Bunker, many of them women. Should the US economy continue recovering at a fast clip, the recovery could be complete by the end of next year."As long as Nov is a blip, the 2021 average rate of 555,000 per month still means we are on track for a full recovery by the end of 2022," Elise Gould, senior economist at the left-leaning Economic Policy Institute, wrote on Twitter.Read the original article on Business Insider.....»»

Category: smallbizSource: nytDec 3rd, 2021

Strength Seen in Atlantic Union (AUB): Can Its 5.1% Jump Turn into More Strength?

Atlantic Union (AUB) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term. Atlantic Union (AUB) shares ended the last trading session 5.1% higher at $34.15. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 13% loss over the past four weeks.Bullish investor sentiments surrounding the robust banking sector performance in to the next year drove Atlantic Union stock. The prospect of a tighter monetary policy – faster pace of asset purchase tapering that will position the Federal Reserve to raise interest rates in mid-2022 if higher inflation continues to prevail – largely led to optimistic stance. This likely sparked investors’ interest in Atlantic Union’s stock, given its asset-sensitive balance sheet.This holding company for Atlantic Union Bank is expected to post quarterly earnings of $0.73 per share in its upcoming report, which represents a year-over-year change of -21.5%. Revenues are expected to be $166.3 million, down 6.5% from the year-ago quarter.Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.For Atlantic Union, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AUB going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>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 Atlantic Union Bankshares Corporation (AUB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 3rd, 2021

Red Rock Resorts (RRR) Shares Rally 93% YTD: More Upside Left?

Red Rock Resorts (RRR) continues with its disciplined focus to achieve higher profitability and drive free cash flow. It expects to save more than $200 million in annual costs. Red Rock Resorts, Inc. RRR is poised to benefit from Las Vegas operations, digitalization and development projects. This along with a focus on cost-saving efforts, bodes well.So far this year, shares of Red Rock Resorts have surged 92.8% against the industry’s decline of 7.2%. The price performance was backed by solid earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in all of the trailing four quarters. Earnings estimates for 2021 and 2022 have moved up 19% and 2.5%, respectively, in the past 60 days. This positive trend signifies bullish analysts’ sentiments and justifies the company’s Zacks Rank #2 (Buy), indicating robust fundamentals and the expectation of outperformance in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Factors Driving GrowthLas Vegas Operations a Driving Factor:  Red Rock Resorts’ Las Vegas operations have been a key growth driver in the past few quarters and the trend is likely to continue in the coming quarters. The company is bullish on long-term view owing to favorable supply-demand dynamic, positive long-term trends in population growth and a stable regulatory environment. Moreover, attributes like best-in-class assets and locations, unparallel distribution and scale along with solid organic development pipeline, are likely to add to the positives.Image Source: Zacks Investment ResearchDigital Efforts:  The company continues to make substantial progress with respect to cashless gaming. During the third quarter, the company initiated field trials with IGT (at Red Rock and Green Valley branch properties) to introduce cashless payments on the slot floor. Going forward, Red Rock Resorts intends to offer a single mobile digital wallet access for playing and paying purpose at each of its Las Vegas properties. Apart from this, the company entered into a partnership with GAN Limited (in October 2021) to build and deploy the next-generation infrastructure stations STN Sports online sports platform, mobile applications and retail over-the-counter and kiosk-based sports betting throughout Nevada. The company stated that the product launch is subject to regulatory approvals.Focus on Development Projects: Following a favorable decision from the California Supreme Court (in August 2020), Red Rock Resorts focused more on the North Fork development project. The cost of completion of this project, excluding any financing costs, is expected in the range of $350-$400 million. The company stated that the project is currently in the planning and budgeting stage.The company has been focusing on the Durango development project. Located off the 215 Expressway and Durango Drive in Southwest Las Vegas Valley, the project is likely to offer 73,000 square feet of casino space, 2,000 slots and 40 table games, a state-of-the-art sports book, 200 hotel rooms along with four full-service food and beverage outlets. Currently in the planning and budgeting stage, the company expects to start the project by first-quarter 2022. It is optimistic on this development pipeline owing to the location as well as the absence of unrestricted gaming competitors (within a 5-mile radius of the project site). The estimated duration for construction is anticipated between 18 months and 24 months.Cost-Saving Efforts: During third-quarter 2021, the company’s performance benefited from a number of initiatives — streamlining of operations, optimization of marketing initiatives and renegotiating vendor and third-party agreements. Backed by these initiatives, the company continues to expect savings of more than $200 million in annual costs compared with its pre-pandemic cost structure. The initiatives will support efficient production and are also likely to drive margins and free cash flow. Other Key PicksSome other top-ranked stocks in the Consumer Discretionary sector include Hilton Grand Vacations Inc. HGV, Bluegreen Vacations Holding Corporation BVH and Camping World Holdings, Inc. CWH.Hilton Grand Vacations sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 411.1%, on average. Shares of the company have increased 57.9% so far this year.The Zacks Consensus Estimate for Hilton Grand Vacations’ current financial-year sales and earnings per share (EPS) suggests growth of 222.1% and 170.8%, respectively, from the year-ago period’s levels.Bluegreen Vacations flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 695%, on average. Shares of the company have surged 127.7% so far this year.The Zacks Consensus Estimate for Bluegreen Vacations’ current financial-year sales and EPS indicates growth of 27.5% and 199.3%, respectively, from the year-ago period’s levels.Camping World carries a Zacks Rank #2. The company benefits from the launch of a fresh peer-to-peer RV rental marketplace and a mobile service marketplace. It has been investing heavily in product development.Camping World has a trailing four-quarter earnings surprise of 70.9%, on average. Shares of the company have appreciated 58.2% so far this year. The Zacks Consensus Estimate for CWH’s financial-year sales and EPS suggests growth of 25.9% and 77.1%, respectively, from the year-ago period’s levels. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>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 Camping World (CWH): Free Stock Analysis Report Red Rock Resorts, Inc. (RRR): Free Stock Analysis Report Hilton Grand Vacations Inc. (HGV): Free Stock Analysis Report Bluegreen Vacations Holding Corporation (BVH): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 3rd, 2021

3 Reasons to Add Accuray (ARAY) Stock to Your Portfolio

Investors continue to be optimistic about Accuray (ARAY) owing to its slew of software upgrades. Accuray Incorporated ARAY has been gaining on the back of its suite of software upgrades. A solid first-quarter fiscal 2022 performance, along with its global reach, is expected to contribute further. However, overdependence on technologies and reimbursement uncertainties persist.Over the past year, this Zacks Rank #2 (Buy) stock has gained 15.6% compared with 3.1% growth of the industry and 22.6% rise of the S&P 500 composite.The renowned radiation oncology company has a market capitalization of $452.8 million. Accuray projects 285.7% growth for fiscal 2023, in which it expects to maintain its strong performance. The company surpassed estimates in two of the trailing four quarters, missed the same one and broke even in the other one, the average earnings surprise being 141.67%.Image Source: Zacks Investment ResearchLet’s delve deeper.Strong Q1 Results: Accuray’s robust first-quarter fiscal 2022 revenues buoy optimism. The company registered upticks in both its overall top line and its revenue sources during the period, which is encouraging. Receipt of the FDA’s 510(k) clearance for the VOLO Ultra enhancement to the Accuray Precision treatment planning system for the Radixact System, followed by its full commercial launch, is impressive. Strong demand for the ClearRT Helical kVCT Imaging for the Radixact System and new integration with the RayStation treatment planning system for the CyberKnife M6 and S7 Systems raise our optimism on the stock.Suite of Software Upgrades: We are optimistic about Accuray’s series of software upgradations that has been a growth driver for the company. In recent times, Accuray announced the VOLO Optimizer software upgrade for CyberKnife, which reduces treatment time by up to 50%, thus allowing CyberKnife treatments to be performed in 15 to 30 minutes. The company, in October, showcased its new VOLO Ultra for the Radixact System.Global Reach: Accuray has been fortifying its foothold globally, thereby raising our optimism. The company, during its fiscal 2022 first-quarter earnings call in November, confirmed that its gross order volume from its China business for the fiscal first quarter represented a huge growth year over year, whereas revenues generated represented a stupendous year-over-year growth. Additionally, Accuray confirmed making continued impressive progress on its Tianjin-produced Type B product.The company also performed impressively in the Americas, EMEA and the APAC regions (especially Japan).DownsidesOverdependence on Technologies: Achieving consumer and third-party payor acceptance of the CyberKnife and TomoTherapy platforms as preferred methods of tumor treatment is crucial to Accuray’s continued success. Physicians will not begin to use or increase the use of the CyberKnife or TomoTherapy platforms unless they determine, based on experience, clinical data and other factors, that the two platforms are safe and effective alternatives to traditional treatment methods.Reimbursement Uncertainties: Accuray’s customers rely significantly on reimbursement from public and private third-party payors for the CyberKnife and TomoTherapy platform procedures. The company’s ability to commercialize its products successfully and increase market acceptance of the same will significantly depend on the extent to which public and private third-party payors provide coverage and reimbursement for procedures performed with Accuray’s products and the extent to which patients who are treated by its products continue to be covered by health insurance. Third-party payors may establish or change the reimbursement for medical products and services that could significantly influence the purchase of the same.Estimate TrendAccuray is witnessing a positive estimate revision trend for fiscal 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 250% north to 7 cents.The Zacks Consensus Estimate for the company’s second-quarter fiscal 2022 revenues is pegged at $104.9 million, suggesting a 7.6% rise from the year-ago quarter’s reported number.Other Key PicksA few other top-ranked stocks in the broader medical space are Laboratory Corporation of America Holdings LH or LabCorp, Thermo Fisher Scientific Inc. TMO and AMN Healthcare Services AMN.LabCorp, carrying a Zacks Rank #2, reported third-quarter 2021 adjusted EPS of $6.82, which beat the Zacks Consensus Estimate by 42.9%. Revenues of $4.06 billion outpaced the consensus mark by 13.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.LabCorp has an estimated long-term growth rate of 10.6%. The company surpassed estimates in the trailing four quarters, the average surprise being 25.73%.Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which surpassed the Zacks Consensus Estimate by 23.3%. Third-quarter revenues of $9.33 billion outpaced the Zacks Consensus Estimate by 12%. It currently carries a Zacks Rank #2.Thermo Fisher has an estimated long-term growth rate of 14%. The company surpassed estimates in the trailing four quarters, the average surprise being 9.02%.AMN Healthcare reported third-quarter 2021 adjusted EPS of $1.73, which surpassed the Zacks Consensus Estimate by 29.1%. Third-quarter revenues of $877.8 million outpaced the Zacks Consensus Estimate by 12.3%. It currently sports a Zacks Rank #1.AMN Healthcare has an estimated long-term growth rate of 16.2%. The company surpassed estimates in the trailing four quarters, the average surprise being 19.51%. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>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 Laboratory Corporation of America Holdings (LH): Free Stock Analysis Report Accuray Incorporated (ARAY): Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 3rd, 2021

What Is The Cannabis Industry Most Optimistic About Heading Into 2022?

Overall, the cannabis industry has much to be optimistic about as 2022 approaches. The U.S. industry, in particular, should be enthusiastic despite its remaining required maturation. Operators across numerous pot sectors told Benzinga what they are most optimistic about for 2022. These were the four most discussed topics: read more.....»»

Category: blogSource: benzingaDec 3rd, 2021

November Payrolls Preview: Strong Enough To Justify The Accelerated Taper?

November Payrolls Preview: Strong Enough To Justify The Accelerated Taper? With Powell's Fed having telegraphed it will accelerate the taper at this month's meeting so it can start presumably start hiking as soon as June of 2022, the November payrolls report may be moot although traders will be looking for barbell signs: will it be strong enough to validate an accelerated taper, or could it come so far below expectations that the Fed will be forced to delay its taper-boosting plans. Looking at the expectations, Newsquawk reminds us that analysts look for 550k nonfarm payrolls to be added to the US economy in November, similar to October's 531k; the jobless rate is seen falling by one-tenth of a percent to 4.5%. While as noted above the Fed appears almost certain to announce a quickening in the pace of QE tapering, analysts will be carefully watching measures of labor market slack to gauge the progress towards the Fed's 'three tests' for rate hikes: i) Participation was unchanged in October, ii) employment-population ticked up by 0.1ppts, while iii) the U6 measure of underemployment fell 0.2ppts. With the inflation tests met, the labor market data will form a key part of the Fed's arguments for rate hikes, and any significant  improvement in these metrics may see markets further price in tighter rates next year. Meanwhile, labor market gauges have generally been constructive in November: the rate of initial jobless claims going into the November survey period improved relative to the October window; ADP's gauge of payrolls was in line with expectations, though the pace eased vs October; business surveys saw employment sub-indices improve and are alluding to a very tight labor market, while today's Challenger job cuts fell to the lowest since 1993. Here is a summary of expectations: Nonfarm payrolls are expected to print 550k in November vs 531k in October (private payrolls expected at 530k vs 604k prior, manufacturing payrolls expected at 45k vs prior 60k); the 3-month average nonfarm payrolls trend rate eased to 442k in October (vs 629k in September), the 6-month average rose to 666k (from 622k) and the 12-month average eased to 481k (from 494k). The unemployment rate is seen declining by 0.1ppts in November to 4.5%; Labor market participation was unchanged at 61.6% in October (vs 63.6% in February 2020), U6 underemployment declined by 0.2ppts to 8.3% (vs 7.0% in February 2020), and the employment-population ratio rose 0.1ppts to 58.8% (vs pre-pandemic 61.1%). Average hourly earnings are seen rising 0.4% M/M, with the annual measure expected to rise by 0.1ppts to 4.0% Y/Y, Average workweek hours are likely to be unchanged at 34.7hrs. POLICY FOCUS: Fed Chair Powell this week delivered hawkish testimony to lawmakers, where he stated that the economy had continued to strengthen, the labor market had continued to improve, and he sees inflation moving down significantly over the next year. He added that it was appropriate to consider wrapping up the tapering of asset purchases a few months sooner, which participants will discuss at the December FOMC. Powell telegraphing the debate in advance may have taken some of the sting out of incoming economic data -- the rationale being that the Fed is set to accelerate the taper barring any significant deterioration in labor market and inflation data before the December 15th confab -- but Powell still suggested that there was a three-part test for raising rates (economy at maximum employment, inflation at 2%, inflation on track to moderately exceed 2% for some time); Fed officials have attempted to break the link between tapering and eventual rate hikes, but forward-looking markets will be assessing incoming data within the context of the three tests, and will price expectations of the Fed rate hike trajectory accordingly. The inflation test has been met, but Powell said there was still ground to cover to reach maximum employment, though he has previously said that could be achieved by the middle of next year; this week's labor market data, therefore, remains a key part of the eventual rate hike debate. SLACK: Taking an aggregate of the headline since March 2020, there are still some 4.44mln nonfarm payrolls to be recouped to get back to pre-pandemic levels. Goldman Sachs explains that it has been childcare constraints and elevated fiscal transfers which have likely weighed on participation, but these factors should have only a small effect going forward, but it may still take some time for some people to feel comfortable in returning to work, leaving some potential for longer-lasting drags. "We continue to expect that the labor force participation rate will increase in the nearterm, but we have nudged down our participation rate forecast to 1ppt below trend at end-2021 (61.9%) and 0.5ppts below trend at end-2022 (62.1%)," the bank says, "but because jobs are abundant and residual weakness in participation in mid-2022 will likely be due to changes in fiscal policy, wealth, and worker preferences, we expect that the FOMC will judge any participation shortfall that remains at that point to be structural or voluntary and will update their maximum employment goal accordingly." JOBLESS CLAIMS: In the week that traditionally coincides with the BLS survey window for the jobs report, initial jobless claims were little changed at 270k from the prior week's 269k; but since the October jobs report survey window, claims have eased from 351k. Continuing claims, meanwhile, printed 2.049mln in the survey week, down from 2.11mln in the prior week, and lower than the 2.81mln in the October survey period. Pantheon Macroeconomics said that the trend in initial jobless claims remains firmly downward, but the read may not be clear in the holiday season: "Unfortunately the numbers will be volatile over the holidays, as usual, and the next clean read on the data will be in mid-January," and by then, "we think claims will be close to the lows seen in the pre-COVID cycle, about 210K." ADP: The ADP's national employment gauge saw 534k job additions to the US economy in November, more or less in line with the 525k forecast; the prior was revised down trivially by 1k to 570k. ADP's economists noted that the labor market recovery continued to "power through" its challenges last month. "Job gains have eclipsed 15 million since the recovery began, though 5 million jobs short of pre-pandemic levels," ADP said, "service providers, which are more vulnerable to the pandemic, have dominated job gains this year." On the pandemic, ADP's economists said it was too early to tell if the Omicron variant could potentially slow the jobs recovery in coming months. BUSINESS SURVEYS: Within the ISM manufacturing report, the employment index rose by 1.3 points to 53.3, remaining in expansion for a third month, with the report noting some indications that the ability to hire is improving, though this is being partially offset by the challenges of turnover and backfilling. "Survey panellists’ companies are still struggling to meet labour-management plans, but there were modest signs of progress," ISM said, "an increasing share of comments noted improvements regarding employment," where "an overwhelming majority of panellists indicate their companies are hiring or attempting to hire." 51% of those surveyed were expressing difficulties in filling positions, with the situation becoming more acute in the month. Meanwhile, the services ISM is released after this month's jobs data, but using the IHS Markit flash November PMIs as a proxy, similar themes have been seen. IHS Markit said that pressure on capacity persisted amid labour shortages, with backlogs of work rising at the second-fastest pace on record. "Firms sought to expand their workforce numbers, but employment growth was held back by challenges finding suitablecandidates." JOB CUTS: Challenger's November report said that announced job cuts had dropped to 14,875 from the 22,822 in October, the lowest monthly total since May 1993. Year-to-date, employers have announced plans to cut 302,918 jobs from their payrolls, the lowest January-November total on record, and vs 2,227,725 vs the same period in 2020. Challenger said that "with the Omicron variant emerging and the unknowns that come with its spread, coupled with the ongoing difficulty hiring and retaining workers, it’s no surprise job cuts are at record lows," adding that "employers are spread thin, planning best- and worst-case scenarios in terms of COVID, while also contending with staff shortages and high demand." Speaking of Goldman, the bank is more optimistic than consensus and estimates nonfarm payrolls rose 575k in November, above the 531k gain in October and higher than the bank's initial forecast of +550k (which is in line with consensus). The bank expects no change in government payrolls, and thus private payrolls will also rise +575k in November (vs. consensus +525k).  According to the bank, the summer expiration of federal unemployment insurance benefits in some states boosted job-finding rates there, and the programs expired in the remaining states on September 5th. Over 4.6mn people have dropped off the unemployment benefit rolls since early September, and we assume 300-400k found new jobs during the November payroll month. Goldman also believes upward revisions to prior-month nonfarm payrolls are fairly likely in tomorrow’s report. The chart below reveals a trend of increasingly large upward revisions over the course of the year, with prior-month job growth revised up on net in each of the last six reports (including +235k with last month’s release). There are two potential explanations, both of which could potentially lead to upward revisions in tomorrow’s report as well. First, some reopening establishments may respond to the BLS survey with a lag (e.g. 1-2 months after reopening). This would result in positive revisions to the not-seasonally-adjusted data that occurred in May, July, August, and September (dark blue bars below). Second, the seasonal factors may be overfitting to the advance releases, mistakenly attributing some of the strong job creation to an evolution of seasonality (light blue lines below). ARGUING FOR A STRONGER REPORT: End of federal enhanced unemployment benefits. The expiration of federal benefits in some states boosted job-finding rates over the summer, and all remaining such programs expired on September 5. The 239k pickup in job growth in October relative to September is consistent with a boost from improved labor supply, and with 4.6 mn individuals no longer receiving benefits versus in early September, this tailwind is expected to continue in tomorrow’s report and beyond. Public health. The Delta wave coincided with a late-summer slowdown in job growth, with leisure and hospitality employment growth slowing sharply in September and October (see Exhibit 1). With covid infection rates falling since September, restaurant seatings on OpenTable have rebounded,and economists expect strong gains in leisure and hospitality and in other services. Job availability. The Conference Board labor differential—the difference between nthe percent of respondents saying jobs are plentiful and those saying jobs are hard to get—increased to a record-high of 46.9. JOLTS job openings decreased by 191kin September to 10.4mn but remained significantly higher than the pre-pandemic record. Jobless claims. Initial jobless claims fell during the November payroll month, averaging 257k per week vs. 320k in October. Continuing claims in regular state programs decreased 283k from survey week to survey week. Education seasonality. Education payrolls weighed on the previous two reports, declining 170k cumulatively in September and October (public and private). This reflects some janitors and support staff declining to return for the fall school year. While schools will eventually fill these open positions, the start-of-year catalyst for a large rise in education jobs has passed, and we are assuming only second derivative improvement in tomorrow’s report, such as a flat reading or a modest gain (mom sa). Employer surveys. The employment components of business surveys generally increased in November. Goldman's services survey employment tracker increased 0.5pt to 55.1 and its manufacturing survey employment tracker increased 0.7pt to 59.6. The Goldman Sachs Analyst Index (GSAI) increased 4.3pt to 77.2 in November, and the employment component rose 1.6pt to a record-high of 75.6. Job cuts. Announced layoffs reported by Challenger, Gray & Christmas declined by 10% month-over-month in November after increasing by 18% in October (SA by GS),and remain near their three-decade low. ARGUING FOR A WEAKER REPORT: Supply constraints in retail. Labor supply constraints may have weighed on pre-holiday hiring in the retail industry, for which the BLS seasonal factors anticipate net hiring of around 350k. If so, retail payroll could fall on a seasonally adjusted basis. Vaccine mandates. The vaccine mandates announced by the Biden administration nin September apply to roughly 25mn unvaccinated workers, and may have weighed on November job growth in healthcare and government. While the federal deadline for compliance is generally not until early January and faces an uncertain future in the court system, early adoption in some states may have reduced job growth at the margin in tomorrow’s report. NEUTRAL FACTORS Big Data. High-frequency data on the labor market were mixed. Three of the four measures available this month indicate another sizeable gain. However, the Homebase data that directionally flagged the September payroll missindicates an outright decline ADP. Private sector employment in the ADP report increased by 534k in November, in line with consensus expectations for a 525k gain and consistent with strong growth in the ADP panel. Tyler Durden Thu, 12/02/2021 - 21:40.....»»

Category: personnelSource: nytDec 3rd, 2021

Best-Performing ETF Areas of November

Wall Street was on a volatile ride in the month of November. Most indexes were in the red last month on renewed COVID-19 fear. Wall Street was on a topsy-turvy ride in the month of November. While the start of the month was decent, renewed virus scare and lockdowns weighed on the broader market at the end. Overall, the S&P 500, the Dow Jones, the Nasdaq and the Russell 2000 lost about 1.4%, 4.4%, 0.7% and 6.9% past month, respectively.Nationwide COVID-19 lockdowns in Europe in late November once again stirred fears of the further spread of infections. While this raised chances of another wave of COVID-19 in other parts of the world, the finding of a new COVID-19 variant, namely Omicron, led to a massive crash in Wall Street in the month-end. Meanwhile, the Fed started QE tapering from November and corporate earnings came in upbeat. Holiday sales are forecast to come solid in 2021. Retail sales for the month of October was strong. Inflation data too was high due to supply chain issues. Oil prices staged a rally in November due to the prospect of higher demand but nosedived in the Thanksgiving week along with Wall Street on Omicron fears.Against this backdrop, we highlight below a few investing areas that stood tall in November.CarboniPath Series B Carbon ETN GRN, Kraneshares European Carbon Allowance ETF (KEUA) and Kfa Global Carbon ETF (KRBN) advanced 26.1%, 22.7% and 16.7%, respectively, past month. A sharp rise in gas prices boosted the demand for carbon futures.SemiconductorsThe semiconductor space has been on a tear as the pandemic has bolstered the demand for chips, leading to the worst global shortage in many years. Corporate earnings from the likes of Nvidia (NVDA), Qualcomm (QCOM) and Advanced Micro Devices (AMD) came in upbeat. The recent upsurge in the electric vehicle industry and increased awareness for clean energy also made the semiconductor industry an investors’ darling (read: 4 ETF Areas Near One-Year High With More Room for Growth).              Vaneck Semiconductor ETF SMH, PHLX Semiconductor iShares ETF (SOXX) and Nasdaq Semiconductor ETF First Trust (FTXL) and Dynamic Semiconductors Invesco ETF (PSI) gained 13.8%, 13.5%, 12.4% and 12%, respectively, past month.CoffeeCoffee prices have been super-hot as a supply crunch from Brazil to Vietnam pushed coffee prices to a seven-year high. Inclement weather, shipping disruptions and rising fertilizer costs are weighing on supplies. iPath Series B Bloomberg Coffee Subindex Total Return ETN JO gained 13.8% past month.The latest rally came after a decline in the certified stockpiles in Brazil. In addition, the early projections for Brazil’s 2022 crop indicate that yields will trail the nation’s last high-yielding cycle in 2020-21. This will prevent the rebuilding of stockpiles needed to weather the natural dip in the following harvest.Gaming & EsportsVideo gaming stocks have been in fine fettle. For 10 months, total consumer spending on gaming grew 12% year over year to $46.67 billion (per The NPD Group data). Market experts are optimistic about the strength that the video gaming industry is witnessing in the terms of sales growth despite tough year-over-year comparisons, highlighting the momentum in the space.Renewed virus fears from late November also brightened the stay-at-home investing areas like video gaming. Vaneck Video Gaming and Esports ETF ESPO advanced 7.6% (read: Bet on These Video Gaming ETFs to Ride the Surging Sales Trend).Homebuilding The broader housing sector appears in decent shape if we go by the recently released earnings reports. D.R. Horton Inc. DHI, Beazer Homes (BZH) and Meritage Homes Corporation (MTH) beat overall while NVR Inc. (NVR) came up with mixed earnings (read: What Supply Chain Woes? Buy Housing ETFs On Earnings Strength).Per the National Association of Realtors (NAR) report, there was a 0.8% sequential increase in existing homes sales to a seasonally adjusted annual rate of 6.34 million units in October. The figure surpassed economists’ expectations of sales declining to 6.20 million units, per a Reuters poll.  Increasing for the second successive month, the metric saw the highest level since January. US Home Construction iShares ETF ITB and S&P Homebuilders SPDR ETF XHB gained 7.1% and 6.2% past month, respectively. 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 D.R. Horton, Inc. (DHI): Free Stock Analysis Report SPDR S&P Homebuilders ETF (XHB): ETF Research Reports iShares U.S. Home Construction ETF (ITB): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports iPath Series B Bloomberg Coffee Subindex Total Return ETN (JO): ETF Research Reports iPath Series B Carbon ETN (GRN): ETF Research Reports VanEck Video Gaming and eSports ETF (ESPO): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 1st, 2021

Futures Surge After Powell-Driven Rout Proves To Be "Transitory"

Futures Surge After Powell-Driven Rout Proves To Be "Transitory" Heading into yesterday's painful close to one of the ugliest months since March 2020, which saw a huge forced liquidation rebalance with more than $8 billion in Market on Close orders, we said that while we are seeing "forced selling dump into the close today" this would be followed by "forced Dec 1 buying frontrunning after the close." Forced selling dump into the close today. Forced Dec 1 buying frontrunning after the close — zerohedge (@zerohedge) November 30, 2021 And just as expected, despite yesterday's dramatic hawkish pivot by Powell, who said it was time to retire the word transitory in describing the inflation outlook (the same word the Fed used hundreds of times earlier in 2021 sparking relentless mockery from this website for being clueless as usual) while also saying the U.S. central bank would consider bringing forward plans for tapering its bond buying program at its next meeting in two weeks, the frontrunning of new monthly inflows is in full force with S&P futures rising over 1.2%, Nasdaq futures up 1.3%, and Dow futures up 0.9%, recovering almost all of Tuesday’s decline. The seemingly 'hawkish' comments served as a double whammy for markets, which were already nervous about the spread of the Omicron coronavirus variant and its potential to hinder a global economic recovery. "At this point, COVID does not appear to be the biggest long-term Street fear, although it could have the largest impact if the new (or next) variant turns out to be worse than expected," Howard Silverblatt, senior index analyst for S&P and Dow Jones indices, said in a note. "That honor goes to inflation, which continues to be fed by supply shortages, labor costs, worker shortages, as well as consumers, who have not pulled back." However, new month fund flows proved too powerful to sustain yesterday's month-end dump and with futures rising - and panic receding - safe havens were sold and the 10-year Treasury yield jumped almost 6bps, approaching 1.50%. The gap between yields on 5-year and 30-year Treasuries was around the narrowest since March last year. Crude oil and commodity-linked currencies rebounded. Gold remained just under $1,800 and bitcoin traded just over $57,000. There was more good news on the covid front with a WHO official saying some of the early indications are that most Omicron cases are mild with no severe cases. Separately Merck gained 3.8% in premarket trade after a panel of advisers to the U.S. Food and Drug Administration narrowly voted to recommend the agency authorize the drugmaker's antiviral pill to treat COVID-19. Travel and leisure stocks also rebounded, with cruiseliners Norwegian, Carnival, Royal Caribbean rising more than 2.5% each. Easing of covid fears also pushed airlines and travel stocks higher in premarket trading: Southwest +2.9%, Delta +2.5%, Spirit +2.3%, American +2.2%, United +1.9%, JetBlue +1.3%. Vaccine makers traded modestly lower in pre-market trading after soaring in recent days as Wall Street weighs the widening spread of the omicron variant. Merck & Co. bucked the trend after its Covid-19 pill narrowly gained a key recommendation from advisers to U.S. regulators. Moderna slips 2.1%, BioNTech dips 1.3% and Pfizer is down 0.2%. Elsewhere, Occidental Petroleum led gains among the energy stocks, up 3.2% as oil prices climbed over 4% ahead of OPEC's meeting. Shares of major Wall Street lenders also moved higher after steep falls on Tuesday. Here are some of the other biggest U.S. movers today: Salesforce (CRM US) drops 5.9% in premarket trading after results and guidance missed estimates, with analysts highlighting currency-related headwinds and plateauing growth at the MuleSoft integration software business. Hewlett Packard Enterprise (HPE US) falls 1.3% in premarket after the computer equipment maker’s quarterly results showed the impact of the global supply chain crunch. Analysts noted solid order trends. Merck (MRK US) shares rise 5.8% in premarket after the company’s Covid-19 pill narrowly wins backing from FDA advisers, which analysts say is a sign of progress despite lingering challenges. Chinese electric vehicle makers were higher in premarket, leading U.S. peers up, after Nio, Li and XPeng reported strong deliveries for November; Nio (NIO US) +4%, Li (LI US ) +6%, XPeng (XPEV US) +4.3%. Ardelyx (ARDX US) shares gain as much as 34% in premarket, extending the biotech’s bounce after announcing plans to launch its irritable bowel syndrome treatment Ibsrela in the second quarter. CTI BioPharma (CTIC US) shares sink 18% in premarket after the company said the FDA extended the review period for a new drug application for pacritinib. Allbirds (BIRD US) fell 7.5% postmarket after the low end of the shoe retailer’s 2021 revenue forecast missed the average analyst estimate. Zscaler (ZS US) posted “yet another impressive quarter,” according to BMO. Several analysts increased their price targets for the security software company. Shares rose 4.6% in postmarket. Ambarella (AMBA US) rose 14% in postmarket after forecasting revenue for the fourth quarter that beat the average analyst estimate. Emcore (EMKR US) fell 9% postmarket after the aerospace and communications supplier reported fiscal fourth-quarter Ebitda that missed the average analyst estimate. Box (BOX US) shares gained as much as 10% in postmarket trading after the cloud company raised its revenue forecast for the full year. Meanwhile, the omicron variant continues to spread around the globe, though symptoms so far appear to be relatively mild. The Biden administration plans to tighten rules on travel to the U.S., and Japan said it would bar foreign residents returning from 10 southern African nations. As Bloomberg notes, volatility is buffeting markets as investors scrutinize whether the pandemic recovery can weather diminishing monetary policy support and potential risks from the omicron virus variant. Global manufacturing activity stabilized last month, purchasing managers’ gauges showed Wednesday, and while central banks are scaling back ultra-loose settings, financial conditions remain favorable in key economies. “The reality is hotter inflation coupled with a strong economic backdrop could end the Fed’s bond buying program as early as the first quarter of next year,” Charlie Ripley, senior investment strategist at Allianz Investment Management, said in emailed comments. “With potential changes in policy on the horizon, market participants should expect additional market volatility in this uncharted territory.” Looking ahead, Powell is back on the Hill for day 2, and is due to testify before a House Financial Services Committee hybrid hearing at 10 a.m. ET. On the economic data front, November readings on U.S. private payrolls and manufacturing activity will be closely watched later in the day to gauge the health of the American economy. Investors are also awaiting the Fed's latest "Beige Book" due at 2:00 p.m. ET. On the economic data front, November readings on U.S. private payrolls and manufacturing activity will be closely watched later in the day to gauge the health of the American economy. European equities soared more than 1.2%, with travel stocks and carmakers leading broad-based gain in the Stoxx Europe 600 index, all but wiping out Tuesday’s decline that capped only the third monthly loss for the benchmark this year.  Travel, miners and autos are the strongest sectors. Here are some of the biggest European movers today: Proximus shares rise as much as 6.5% after the company said it’s started preliminary talks regarding a potential deal involving TeleSign, with a SPAC merger among options under consideration. Dr. Martens gains as much as 4.6% to the highest since Sept. 8 after being upgraded to overweight from equal- weight at Barclays, which says the stock’s de-rating is overdone. Husqvarna advances as much as 5.3% after the company upgraded financial targets ahead of its capital markets day, including raising the profit margin target to 13% from 10%. Wizz Air, Lufthansa and other travel shares were among the biggest gainers as the sector rebounded after Tuesday’s losses; at a conference Wizz Air’s CEO reiterated expansion plans. Wizz Air gains as much as 7.5%, Lufthansa as much as 6.8% Elis, Accor and other stocks in the French travel and hospitality sector also rise after the country’s government pledged to support an industry that’s starting to get hit by the latest Covid-19 wave. Pendragon climbs as much as 6.5% after the car dealer boosted its outlook after the company said a supply crunch in the new vehicle market wasn’t as bad as it had anticipated. UniCredit rises as much as 3.6%, outperforming the Stoxx 600 Banks Index, after Deutsche Bank added the stock to its “top picks” list alongside UBS, and Bank of Ireland, Erste, Lloyds and Societe Generale. Earlier in the session, Asian stocks also soared, snapping a three-day losing streak, led by energy and technology shares, as traders assessed the potential impact from the omicron coronavirus variant and U.S. Federal Reserve Chair Jerome Powell’s hawkish pivot. The MSCI Asia Pacific Index rose as much as 1.3% Wednesday. South Korea led regional gains after reporting strong export figures, which bolsters growth prospects despite record domestic Covid-19 cases. Hong Kong stocks also bounced back after falling Tuesday to their lowest level since September 2020. Asia’s stock benchmark rebounded from a one-year low, though sentiment remained clouded by lingering concerns on the omicron strain and Fed’s potentially faster tapering pace. Powell earlier hinted that the U.S. central bank will accelerate its asset purchases at its meeting later this month.  “A faster taper in the U.S. is still dependent on omicron not causing a big setback to the outlook in the next few weeks,” said Shane Oliver, head of investment strategy and chief economist at AMP Capital, adding that he expects the Fed’s policy rate “will still be low through next year, which should still enable good global growth which will benefit Asia.” Chinese equities edged up after the latest economic data showed manufacturing activity remained at relatively weak levels in November, missing economists’ expectations. Earlier, Chinese Vice Premier Liu He said he’s fully confident in the nation’s economic growth in 2022 Japanese stocks rose, overcoming early volatility as traders parsed hawkish comments from Federal Reserve Chair Jerome Powell. Electronics and auto makers were the biggest boosts to the Topix, which closed 0.4% higher after swinging between a gain of 0.9% and loss of 0.7% in the morning session. Daikin and Fanuc were the largest contributors to a 0.4% rise in the Nikkei 225, which similarly fluctuated. The Topix had dropped 4.8% over the previous three sessions due to concerns over the omicron virus variant. The benchmark fell 3.6% in November, its worst month since July 2020. “The market’s tolerance to risk is quite low at the moment, with people responding in a big way to the smallest bit of negative news,” said Tomo Kinoshita, a global market strategist at Invesco Asset Management in Tokyo. “But the decline in Japanese equities was far worse than those of other developed markets, so today’s market may find a bit of calm.” U.S. shares tumbled Tuesday after Powell said officials should weigh removing pandemic support at a faster pace and retired the word “transitory” to describe stubbornly high inflation In rates, bonds trade heavy, as yield curves bear-flatten. Treasuries extended declines with belly of the curve cheapening vs wings as traders continue to price in additional rate-hike premium over the next two years. Treasury yields were cheaper by up to 5bp across belly of the curve, cheapening 2s5s30s spread by ~5.5bp on the day; 10-year yields around 1.48%, cheaper by ~4bp, while gilts lag by additional 2bp in the sector. The short-end of the gilt curve markedly underperforms bunds and Treasuries with 2y yields rising ~11bps near 0.568%. Peripheral spreads widen with belly of the Italian curve lagging. The flattening Treasury yield curve “doesn’t suggest imminent doom for the equity market in and of itself,” Liz Ann Sonders, chief investment strategist at Charles Schwab & Co., said on Bloomberg Television. “Alarm bells go off in terms of recession” when the curve gets closer to inverting, she said. In FX, the Turkish lira had a wild session, offered in early London trade before fading. USD/TRY dropped sharply to lows of 12.4267 on reports of central bank FX intervention due to “unhealthy price formations” before, once again, fading TRY strength after comments from Erdogan. The rest of G-10 FX is choppy; commodity currencies retain Asia’s bid tone, havens are sold: the Bloomberg Dollar Spot Index inched lower, as the greenback traded mixed versus its Group-of-10 peers. The euro moved in a narrow range and Bund yields followed U.S. yields higher. The pound advanced as risk sentiment stabilized with focus still on news about the omicron variant. The U.K. 10-, 30-year curve flirted with inversion as gilts flattened, with money markets betting on 10bps of BOE tightening this month for the first time since Friday. The Australian and New Zealand dollars advanced as rising commodity prices fuel demand from exporters and leveraged funds. Better-than-expected growth data also aided the Aussie, with GDP expanding by 3.9% in the third quarter from a year earlier, beating the 3% estimated by economists. Austrian lawmakers extended a nationwide lockdown for a second 10-day period to suppress the latest wave of coronavirus infections before the Christmas holiday period.  The yen declined by the most among the Group-of-10 currencies as Powell’s comments renewed focus on yield differentials. 10-year yields rose ahead of Thursday’s debt auction In commodities, crude futures rally. WTI adds over 4% to trade on a $69-handle, Brent recovers near $72.40 after Goldman said overnight that oil had gotten extremely oversold. Spot gold fades a pop higher to trade near $1,785/oz. Base metals trade well with LME copper and nickel outperforming. Looking at the day ahead, once again we’ll have Fed Chair Powell and Treasury Secretary Yellen appearing, this time before the House Financial Services Committee. In addition to that, the Fed will be releasing their Beige Book, and BoE Governor Bailey is also speaking. On the data front, the main release will be the manufacturing PMIs from around the world, but there’s also the ADP’s report of private payrolls for November in the US, the ISM manufacturing reading in the US as well for November, and German retail sales for October. Market Snapshot S&P 500 futures up 1.2% to 4,620.75 STOXX Europe 600 up 1.0% to 467.58 MXAP up 0.9% to 191.52 MXAPJ up 1.1% to 626.09 Nikkei up 0.4% to 27,935.62 Topix up 0.4% to 1,936.74 Hang Seng Index up 0.8% to 23,658.92 Shanghai Composite up 0.4% to 3,576.89 Sensex up 1.0% to 57,656.51 Australia S&P/ASX 200 down 0.3% to 7,235.85 Kospi up 2.1% to 2,899.72 Brent Futures up 4.2% to $72.15/bbl Gold spot up 0.2% to $1,778.93 U.S. Dollar Index little changed at 95.98 German 10Y yield little changed at -0.31% Euro down 0.1% to $1.1326 Top Overnight News from Bloomberg U.S. Secretary of State Antony Blinken will meet Russian Foreign Minister Sergei Lavrov Thursday, the first direct contact between officials of the two countries in weeks as tensions grow amid western fears Russia may be planning to invade Ukraine Oil rebounded from a sharp drop on speculation that recent deep losses were excessive and OPEC+ may on Thursday decide to pause hikes in production, with the abrupt reversal fanning already- elevated volatility The EU is set to recommend that member states review essential travel restrictions on a daily basis in the wake of the omicron variant, according to a draft EU document seen by Bloomberg China is planning to ban companies from going public on foreign stock markets through variable interest entities, according to people familiar with the matter, closing a loophole long used by the country’s technology industry to raise capital from overseas investors Manufacturing activity in Asia outside China stabilized last month amid easing lockdown and border restrictions, setting the sector on course to face a possible new challenge from the omicron variant of the coronavirus Germany urgently needs stricter measures to check a surge in Covid-19 infections and protect hospitals from a “particularly dangerous situation,” according to the head of the country’s DIVI intensive-care medicine lobby. A more detailed breakdown of global markets courtesy of Newsquawk Asian equity markets traded mostly positive as regional bourses atoned for the prior day’s losses that were triggered by Omicron concerns, but with some of the momentum tempered by recent comments from Fed Chair Powell and mixed data releases including the miss on Chinese Caixin Manufacturing PMI. ASX 200 (-0.3%) was led lower by underperformance in consumer stocks and with utilities also pressured as reports noted that Shell and Telstra’s entrance in the domestic electricity market is set to ignite fierce competition and force existing players to overhaul their operations, although the losses in the index were cushioned following the latest GDP data which showed a narrower than feared quarterly contraction in Australia’s economy. Nikkei 225 (+0.4%) was on the mend after yesterday’s sell-off with the index helped by favourable currency flows and following a jump in company profits for Q3, while the KOSPI (+2.1%) was also boosted by strong trade data. Hang Seng (+0.8%) and Shanghai Comp. (+0.4%) were somewhat varied as a tech resurgence in Hong Kong overcompensated for the continued weakness in casinos stocks amid ongoing SunCity woes which closed all VIP gaming rooms in Macau after its Chairman's recent arrest, while the mood in the mainland was more reserved after a PBoC liquidity drain and disappointing Chinese Caixin Manufacturing PMI data which fell short of estimates and slipped back into contraction territory. Finally, 10yr JGBs were lower amid the gains in Japanese stocks and after the pullback in global fixed income peers in the aftermath of Fed Chair Powell’s hawkish comments, while a lack of BoJ purchases further contributed to the subdued demand for JGBs. Top Asian News Asia Stocks Bounce Back from One-Year Low Despite Looming Risks Gold Swings on Omicron’s Widening Spread, Inflation Worries Shell Sees Hedge Funds Moving to LNG, Supporting Higher Prices Abe Warns China Invading Taiwan Would Be ‘Economic Suicide’ Bourses in Europe are firmer across the board (Euro Stoxx 50 +1.6%; Stoxx 600 +1.1%) as the positive APAC sentiment reverberated into European markets. US equity futures are also on the front foot with the cyclical RTY (+2.0%) outpacing its peers: ES (+1.2%), NQ (+1.5%), YM (+0.8%). COVID remains a central theme for the time being as the Omicron variant is observed for any effects of concern – which thus far have not been reported. Analysts at UBS expect market focus to shift away from the variant and more towards growth and earnings. The analysts expect Omicron to fuse into the ongoing Delta outbreak that economies have already been tackling. Under this scenario, the desk expects some of the more cyclical markets and sectors to outperform. The desk also flags two tails risks, including an evasive variant and central bank tightening – particularly after Fed chair Powell’s commentary yesterday. Meanwhile, BofA looks for an over-10% fall in European stocks next year. Sticking with macro updates, the OECD, in their latest economic outlook, cut US, China, Eurozone growth forecasts for 2021 and 2022, with Omicron cited as a factor. Back to trade, broad-based gains are seen across European cash markets. Sectors hold a clear cyclical bias which consists of Travel & Leisure, Basic Resources, Autos, Retail and Oil & Gas as the top performers – with the former bolstered by the seemingly low appetite for coordination on restrictions and measures at an EU level – Deutsche Lufthansa (+6%) and IAG (+5.1%) now reside at the top of the Stoxx 600. The other side of the spectrum sees the defensive sectors – with Healthcare, Household Goods, Food & Beverages as the straddlers. In terms of induvial movers, German-listed Adler Group (+22%) following a divestment, whilst Blue Prism (+1.7%) is firmer after SS&C raised its offer for the Co. Top European News Wizz Says Travelers Are Booking at Shorter and Shorter Notice Turkey Central Bank Intervenes in FX Markets to Stabilize Lira Gold Swings on Omicron’s Widening Spread, Inflation Worries Former ABG Sundal Collier Partner Starts Advisory Firm In FX, the Dollar remains mixed against majors, but well off highs prompted by Fed chair Powell ditching transitory from the list of adjectives used to describe inflation and flagging that a faster pace of tapering will be on the agenda at December’s FOMC. However, the index is keeping tabs on the 96.000 handle and has retrenched into a tighter 95.774-96.138 range, for the time being, as trade remains very choppy and volatility elevated awaiting clearer medical data and analysis on Omicron to gauge its impact compared to the Delta strain and earlier COVID-19 variants. In the interim, US macro fundamentals might have some bearing, but the bar is high before NFP on Friday unless ADP or ISM really deviate from consensus or outside the forecast range. Instead, Fed chair Powell part II may be more pivotal if he opts to manage hawkish market expectations, while the Beige Book prepared for next month’s policy meeting could also add some additional insight. NZD/AUD/CAD/GBP - Broad risk sentiment continues to swing from side to side, and currently back in favour of the high beta, commodity and cyclical types, so the Kiwi has bounced firmly from worst levels on Tuesday ahead of NZ terms of trade, the Aussie has pared a chunk of its declines with some assistance from a smaller than anticipated GDP contraction and the Loonie is licking wounds alongside WTI in advance of Canadian building permits and Markit’s manufacturing PMI. Similarly, Sterling has regained some poise irrespective of relatively dovish remarks from BoE’s Mann and a slender downward revision to the final UK manufacturing PMI. Nzd/Usd is firmly back above 0.6800, Aud/Usd close to 0.7150 again, Usd/Cad straddling 1.2750 and Cable hovering on the 1.3300 handle compared to circa 0.6772, 0.7063, 1.2837 and 1.3195 respectively at various fairly adjacent stages yesterday. JPY/EUR/CHF - All undermined by the aforementioned latest upturn in risk appetite or less angst about coronavirus contagion, albeit to varying degrees, as the Yen retreats to retest support sub-113.50, Euro treads water above 1.1300 and Franc straddles 0.9200 after firmer than forecast Swiss CPI data vs a dip in the manufacturing PMI. In commodities, WTI and Brent front month futures are recovering following yesterday’s COVID and Powell-induced declines in the run-up to the OPEC meetings later today. The complex has also been underpinned by the reduced prospects of coordinated EU-wide restrictions, as per the abandonment of the COVID video conference between EU leaders. However, OPEC+ will take centre stage over the next couple of days, with a deluge of source reports likely as OPEC tests the waters. The case for OPEC+ to pause the planned monthly relaxation of output curbs by 400k BPD has been strengthening. There have been major supply and demand developments since the prior meeting. The recent emergence of the Omicron COVID variant and coordinated release of oil reserves have shifted the balance of expectations relative to earlier in the month (full Newsquawk preview available in the Research Suite). In terms of the schedule, the OPEC meeting is slated for 13:00GMT/08:00EST followed by the JTC meeting at 15:00GMT/10:00EST, whilst tomorrow sees the JMMC meeting at 12:00GMT/07:00EST; OPEC+ meeting at 13:00GMT/08:00EST. WTI Jan has reclaimed a USD 69/bbl handle (vs USD 66.20/bbl low) while Brent Feb hovers around USD 72.50/bbl (vs low USD 69.38/bbl) at the time of writing. Elsewhere, spot gold and silver trade with modest gains and largely in tandem with the Buck. Spot gold failed to sustain gains above the cluster of DMAs under USD 1,800/oz (100 DMA at USD 1,792/oz, 200 DMA at USD 1,791/oz, and 50 DMA at USD 1,790/oz) – trader should be aware of the potential for a technical Golden Cross (50 DMA > 200 DMA). Turning to base metals, copper is supported by the overall risk appetite, with the LME contract back above USD 9,500/t. Overnight, Chinese coking coal and coke futures rose over 5% apiece, with traders citing disrupted supply from Mongolia amid the COVID outbreak in the region. US Event Calendar 7am: Nov. MBA Mortgage Applications, prior 1.8% 8:15am: Nov. ADP Employment Change, est. 525,000, prior 571,000 9:45am: Nov. Markit US Manufacturing PMI, est. 59.1, prior 59.1 10am: Oct. Construction Spending MoM, est. 0.4%, prior -0.5% 10am: Nov. ISM Manufacturing, est. 61.2, prior 60.8 2pm: U.S. Federal Reserve Releases Beige Book Nov. Wards Total Vehicle Sales, est. 13.4m, prior 13m Central Banks 10am: Powell, Yellen Testify Before House Panel on CARES Act Relief DB's Jim Reid concludes the overnight wrap If you’re under 10 and reading this there’s a spoiler alert today in this first para so please skip beyond and onto the second. Yes my heart broke a little last night as my little 6-year old Maisie said to me at bedtime that “Santa isn’t real is he Daddy?”. I lied (I think it’s a lie) and said yes he was. I made up an elaborate story about how when we renovated our 100 year old house we deliberately kept the chimney purely to let Santa come down it once a year. Otherwise why would we have kept it? She then asked what about her friend who lives in a flat? I tried to bluff my way through it but maybe my answer sounded a bit like my answers as to what will happen with Omicron. I’ll test both out on clients later to see which is more convincing. Before we get to the latest on the virus, given it’s the start of the month, we’ll shortly be publishing our November performance review looking at how different assets fared over the month just gone and YTD. It arrived late on but Omicron was obviously the dominant story and led to some of the biggest swings of the year so far. It meant that oil (which is still the top performer on a YTD basis) was the worst performer in our monthly sample, with WTI and Brent seeing their worst monthly performances since the initial wave of market turmoil over Covid back in March 2020. And at the other end, sovereign bonds outperformed in November as Omicron’s emergence saw investors push back the likelihood of imminent rate hikes from central banks. So what was shaping up to be a good month for risk and a bad one for bonds flipped around in injury time. Watch out for the report soon from Henry. Back to yesterday now, and frankly the main takeaway was that markets were desperate for any piece of news they could get their hands on about the Omicron variant, particularly given the lack of proper hard data at the moment. The morning started with a sharp selloff as we discussed at the top yesterday, as some of the more optimistic noises from Monday were outweighed by that FT interview, whereby Moderna’s chief executive had said that the existing vaccines wouldn’t be as effective against the new variant. Then we had some further negative news from Regeneron, who said that analysis and modelling of the Omicron mutations indicated that its antibody drug may not be as effective, but that they were doing further analysis to confirm this. However, we later got some comments from a University of Oxford spokesperson, who said that there wasn’t any evidence so far that vaccinations wouldn’t provide high levels of protection against severe disease, which coincided with a shift in sentiment early in the European afternoon as equities begun to pare back their losses. The CEO of BioNTech and the Israeli health minister expressed similar sentiments, noting that vaccines were still likely to protect against severe disease even among those infected by Omicron, joining other officials encouraging people to get vaccinated or get booster shots. Another reassuring sign came in an update from the EU’s ECDC yesterday, who said that all of the 44 confirmed cases where information was available on severity “were either asymptomatic or had mild symptoms.” After the close, the FDA endorsed Merck’s antiviral Covid pill. While it’s not clear how the pill interacts with Omicron, the proliferation of more Covid treatments is still good news as we head into another winter. The other big piece of news came from Fed Chair Powell’s testimony to the Senate Banking Committee, where the main headline was his tapering comment that “It is appropriate to consider wrapping up a few months sooner.” So that would indicate an acceleration in the pace, which would be consistent with the view from our US economists that we’ll see a doubling in the pace of reductions at the December meeting that’s only two weeks from today. The Fed Chair made a forceful case for a faster taper despite lingering Omicron uncertainties, noting inflation is likely to stay elevated, the labour market has improved without a commensurate increase in labour supply (those sidelined because of Covid are likely to stay there), spending has remained strong, and that tapering was a removal of accommodation (which the economy doesn’t need more of given the first three points). Powell took pains to stress the risk of higher inflation, going so far as to ‘retire’ the use of the term ‘transitory’ when describing the current inflation outlook. So team transitory have seemingly had the pitch taken away from them mid match. The Chair left an exit clause that this outlook would be informed by incoming inflation, employment, and Omicron data before the December FOMC meeting. A faster taper ostensibly opens the door to earlier rate hikes and Powell’s comment led to a sharp move higher in shorter-dated Treasury yields, with the 2yr yield up +8.1bps on the day, having actually been more than -4bps lower when Powell began speaking. They were as low as 0.44% then and got as high as 0.57% before closing at 0.56%. 2yr yields have taken another leg higher overnight, increasing +2.5bps to 0.592%. Long-end yields moved lower though and failed to back up the early day moves even after Powell, leading to a major flattening in the yield curve on the back of those remarks, with the 2s10s down -13.7bps to 87.3bps, which is its flattest level since early January. Overnight 10yr yields are back up +3bps but the curve is only a touch steeper. My 2 cents on the yield curve are that the 2s10s continues to be my favourite US recession indicator. It’s worked over more cycles through history than any other. No recession since the early 1950s has occurred without the 2s10s inverting. But it takes on average 12-18 months from inversion to recession. The shortest was the covid recession at around 7 months which clearly doesn’t count but I think we were very late cycle in early 2020 and the probability of recession in the not too distant future was quite high but we will never know.The shortest outside of that was around 9 months. So with the curve still at c.+90bps we are moving in a more worrying direction but I would still say 2023-24 is the very earliest a recession is likely to occur (outside of a unexpected shock) and we’ll need a rapid flattening in 22 to encourage that. History also suggests markets tend to ignore the YC until it’s too late. So I wouldn’t base my market views in 22 on the yield curve and recession signal yet. However its something to look at as the Fed seemingly embarks on a tightening cycle in the months ahead. Onto markets and those remarks from Powell (along with the additional earlier pessimism about Omicron) proved incredibly unhelpful for equities yesterday, with the S&P 500 (-1.90%) giving up the previous day’s gains to close at its lowest level in over a month. It’s hard to overstate how broad-based this decline was, as just 7 companies in the entire S&P moved higher yesterday, which is the lowest number of the entire year so far and the lowest since June 11th, 2020, when 1 company ended in the green. Over in Europe it was much the same story, although they were relatively less affected by Powell’s remarks, and the STOXX 600 (-0.92%) moved lower on the day as well. Overnight in Asia, stocks are trading higher though with the KOSPI (+2.02%), Hang Seng (+1.40%), the Nikkei (+0.37%), Shanghai Composite (+0.11%) and CSI (+0.09%) all in the green. Australia’s Q3 GDP contracted (-1.9% qoq) less than -2.7% consensus while India’s Q3 GDP grew at a firm +8.4% year-on-year beating the +8.3% consensus. In China the Caixin Manufacturing PMI for November came in at 49.9 against a 50.6 consensus. Futures markets are indicating a positive start to markets in US & Europe with the S&P 500 (+0.73%) and DAX (+0.44%) trading higher again. Back in Europe, there was a significant inflation story amidst the other headlines above, since Euro Area inflation rose to its highest level since the creation of the single currency, with the flash estimate for November up to +4.9% (vs. +4.5% expected). That exceeded every economist’s estimate on Bloomberg, and core inflation also surpassed expectations at +2.6% (vs. +2.3% expected), again surpassing the all-time high since the single currency began. That’s only going to add to the pressure on the ECB, and yesterday saw Germany’s incoming Chancellor Scholz say that “we have to do something” if inflation doesn’t ease. European sovereign bonds rallied in spite of the inflation reading, with those on 10yr bunds (-3.1bps), OATs (-3.5bps) and BTPs (-0.9bps) all moving lower. Peripheral spreads widened once again though, and the gap between Italian and German 10yr yields closed at its highest level in just over a year. Meanwhile governments continued to move towards further action as the Omicron variant spreads, and Greece said that vaccinations would be mandatory for everyone over 60 soon, with those refusing having to pay a monthly €100 fine. Separately in Germany, incoming Chancellor Scholz said that there would be a parliamentary vote on the question of compulsory vaccinations, saying to the Bild newspaper in an interview that “My recommendation is that we don’t do this as a government, because it’s an issue of conscience”. In terms of other data yesterday, German unemployment fell by -34k in November (vs. -25k expected). Separately, the November CPI readings from France at +3.4% (vs. +3.2% expected) and Italy at +4.0% (vs. +3.3% expected) surprised to the upside as well. In the US, however, the Conference Board’s consumer confidence measure in November fell to its lowest since February at 109.5 (vs. 110.9 expected), and the MNI Chicago PMI for November fell to 61.8 9vs. 67.0 expected). To the day ahead now, and once again we’ll have Fed Chair Powell and Treasury Secretary Yellen appearing, this time before the House Financial Services Committee. In addition to that, the Fed will be releasing their Beige Book, and BoE Governor Bailey is also speaking. On the data front, the main release will be the manufacturing PMIs from around the world, but there’s also the ADP’s report of private payrolls for November in the US, the ISM manufacturing reading in the US as well for November, and German retail sales for October. Tyler Durden Wed, 12/01/2021 - 07:47.....»»

Category: blogSource: zerohedgeDec 1st, 2021

Ethan Allen increases dividend by 16%

Ethan Allen Interiors Inc. said late Tuesday its board of directors has authorized a 16% dividend increase, highlighting the retailer's "strong balance sheet." The dividend of 29 cents a share will be payable on Jan. 5 to shareholders of record as of Dec. 14, the company said. "As we head into the 2022 calendar year, we believe we have a great opportunity to continue our growth in sales and profitability," Chief Executive Farooq Kathwari said in a statement. About 75% of Ethan Allen's products are made in North American manufacturing workshops, and its "strong" logistics network of distribution centers and retail home delivery centers is delivering products to clients, he said. "We look forward to continuing our progress and remain cautiously optimistic," Kathwari said. Shares of Ethan Allen were flat in the extended session after ending the regular trading day down 1%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatchNov 30th, 2021

Here"s Why It"s Worth Investing in Crane (CR) Stock Now

Crane (CR) stands to benefit from strength across the end markets, acquired assets, strong cash flows and shareholder-friendly policies. Crane Co. CR currently boasts robust prospects on strength in its businesses, strong cash flows, acquired assets and a sound capital-deployment strategy.Image Source: Zacks Investment ResearchThe Zacks Rank #2 (Buy) company has a market capitalization of $5.9 billion. In the past six months, the stock has gained 4.6% against the industry’s decline of 5.4%.Let’s discuss the factors that make the company a smart investment option at the moment.Business Strength: Crane has been benefiting from improving order trends across its businesses, including short-cycle commercial and core process. Strength in the chemical and general industrial end markets along with recovery in the commercial aerospace end market is likely to drive performance in the quarters ahead. For 2021, the company predicts overall sales of $3,150 million, higher than $3,100 million predicted earlier. For the long run, Crane remains optimistic about growth opportunities in the Aerospace & Electronics segment. It expects the segment to generate core sales growth of 7-9% (CAGR) from 2021 through 2030.Acquisition Benefits:  Crane intends to strengthen and expand its businesses through acquisitions. In January 2020, the company acquired CIRCOR International’s Instrumentation & Sampling business, which has been adding value to its process valve business. For 2021, the company expects acquisitions to boost sales by $5 million.Strong Cash Flows & Shareholder Rewards: Strong cash flows enable the company to deploy capital for repurchasing shares and paying out dividends. In the first nine months of 2021, the company generated a strong free cash flow of $286.4 million. For 2021, it predicts free cash flow to be $340-$365 million. In the first nine months of 2021, it paid out dividends worth $75.5 million. In January 2020, the company announced a 10% hike in its quarterly dividend rate. Also, it unveiled a share repurchase program worth $300 million in October 2021.Estimate Revisions: In the past 30 days, analysts have increasingly become bullish on Crane, as evident from positive earnings estimate revisions. The Zacks Consensus Estimate for its 2021 earnings has trended up from $6.34 to $6.43 on one upward estimate revision against none downward. Over the same timeframe, the consensus estimate for 2022 earnings has jumped from $7.23 to $7.31 on one upward estimate revision against none downward.Other Key PicksSome other top-ranked companies are discussed below.Helios Technologies, Inc. HLIO presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. It has a trailing four-quarter earnings surprise of 37.54%, on average.In the past 30 days, Helios’ earnings estimates have increased 7.9% for 2021 and 9.8% for 2022. Its shares have gained 44.8% in the past six months.AZZ Inc. AZZ presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 25.47%, on average.In the past 30 days, AZZ’s earnings estimates have been stable for fiscal 2022 (ending February 2022) and fiscal 2023 (ending February 2023). AZZ has dropped 1.5% in the past six months.Welbilt, Inc. WBT presently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 172.50%, on average.Welbilt’s earnings estimates have increased 3.2% for 2021 and 5.9% for 2022 in the past 30 days. Its shares have lost 4.4% in the past six months. Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. See Zacks’ Hottest Tech IPOs Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AZZ Inc. (AZZ): Free Stock Analysis Report Crane Co. (CR): Free Stock Analysis Report Welbilt, Inc. (WBT): Free Stock Analysis Report Helios Technologies, Inc (HLIO): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksNov 30th, 2021

Westlake (WLK) to Buy Hexion"s Epoxy Business for $1.2 Billion

Westlake (WLK) agrees to acquire Hexion's Rotterdam-based epoxy business to integrate and expand its portfolios. Westlake Chemical Corporation WLK recently formed a definitive agreement with Hexion Inc. to acquire the latter’s global epoxy business.The deal will add a downstream portfolio of coatings and composite products to its chloro-vinyls businesses. This will enable the company to expand its integrated business. The transaction, worth around $1.2 billion, is scheduled to be completed in the first half of 2022, subject to customary closing conditions.Westlake noted that the industries served by Hexion Epoxy are lucrative to Westlake and promise to be a synergistic addition to its existing businesses. The company is optimistic about the deal and the opportunity pool expected out of it.Hexion Epoxy is a globally leading producer of epoxy resins, modifiers and curing agents for high-performance materials, coatings and composites. The Rotterdam-based epoxy business is a leading player in manufacturing and developing specialty resins, coatings, and composites for a wide range of industries, including high-growth and sustainability-oriented end-uses. It is noteworthy that Hexion’s epoxy business has garnered net sales of roughly $1.5 billion in the 12 months ended Sep 30, 2021.Westlake’s shares have grown 27.9% over the past year compared with the industry’s 32.4% rise. The company’s estimated earnings growth rate for the current year is pegged at around 562%.Image Source: Zacks Investment ResearchIn the third quarter of 2021, Westlake reported earnings of $4.69 per share, topping the Zacks Consensus Estimate of $4.01. Revenues were $3,055 million, which jumped 61% year over year and topped the Zacks Consensus Estimate of $2,716.2 million.In its third-quarter earnings call, the company noted that it expects the recently completed acquisitions of LASCO Fittings, Boral North America and Dimex, totaling around $2.6 billion, to initiate a stage of development and growth for its building products business. The LASCO buyout is expected to add to Westlake subsidiary NAPCO’s product portfolio focusing on new markets and products. The Dimex acquisition adds a range of post-industrial recycled plastic consumer and building products. Westlake has also secured a leading position in the growing building products and construction markets through the Boral North America buyout. The company is optimistic that the investments will strengthen its footprint in the sustainable building product markets and open up long-term growth opportunities.Westlake Chemical Corp. Price and Consensus Westlake Chemical Corporation price-consensus-chart | Westlake Chemical Corporation QuoteZacks Rank & Other Key PicksWestlake currently carries a Zacks Rank #1 (Strong Buy).Other top-ranked stocks from the basic materials space include Univar Solutions Inc. UNVR and AdvanSix Inc. ASIX sporting a Zacks Rank #1, and Celanese Corp. CE carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Univar has an expected earnings growth rate of 55.2% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised 9% upward over the past 60 days.Univar beat the Zacks Consensus Estimate for earnings in the four trailing quarters, with an earnings surprise of 24.1%, on average. UNVR’s shares have rallied 50.5% over a year.AdvanSix has an expected earnings growth rate of 197% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised 14.1% upward over the last 60 days.AdvanSix beat the Zacks Consensus Estimate for earnings in the four trailing quarters, with an earnings surprise of 47%, on average. ASIX’s shares have also surged 157.4% over a year.Celanese has an expected earnings growth rate of 139.7% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised 9.1% upward over the last 60 days.Celanese beat the Zacks Consensus Estimate for earnings in the four trailing quarters, pulling off an earnings surprise of 12.7%, on average. Shares of CE have rallied around 22.6% over a year. Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. See Zacks’ Hottest Tech IPOs Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Westlake Chemical Corporation (WLK): Free Stock Analysis Report Celanese Corporation (CE): Free Stock Analysis Report Univar Solutions Inc. (UNVR): Free Stock Analysis Report AdvanSix (ASIX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 30th, 2021

Pfizer"s top scientist Mikael Dolsten tells us the 2 factors that will determine if Omicron is a true threat and shares Pfizer"s worst-case-scenario plan

Pfizer's chief scientist Mikael Dolsten highlighted two elements that will determine how the Omicron variant shapes the future of the pandemic. Mikael Dolsten, Pfizer's chief scientific officer.Pfizer Omicron could require new vaccines if two factors are met, Pfizer's top scientist told Insider. The new variant would need to outcompete Delta globally and reduce protection from the current vaccine. Pfizer's Mikael Dolsten shared the plan to have an Omicron-specific shot ready by March 2022.  Mikael Dolsten, Pfizer's chief scientific officer, told Insider that the drugmaker is already preparing for the worst-case scenario that Omicron variant-specific shots will be needed. But to reach that point, Dolsten said he's watching how two yet-unknown elements play out in the next few weeks. The first unknown is how well the current vaccines hold up against Omicron. The answer won't be a binary yes or no but rather a sliding scale of protection. Experts generally do not anticipate that Omicron will completely evade all protection from the current shots. Previous research suggests many more mutations are needed to reach that point.But other variants of concern, including the Beta and Delta strains, have shown they can diminish vaccine protection. Omicron is potentially more concerning because it has far more mutations on the spike protein, which is the target of vaccines.Most experts expect Omicron to decrease levels of neutralizing antibodies, virus-fighting proteins that play a key role in our immune response. The question that laboratory testing will help answer is just how much of a decline this variant could cause.Dolsten said a tenfold decrease in antibodies would make him concerned that the current vaccine won't be sufficient and an Omicron-specific shot will be needed."If we exceed a tenfold drop in neutralization of Omicron, I think we are starting to enter the yellow to red zone when your immunity is likely lowered and there's limited time after your boost until waning," Dolsten said. Laboratory tests, which will likely come out over the next week or two, could also show the current vaccines holding up well enough against Omicron, Dolsten said. For the time being, the best protection a person can get is getting vaccinated or getting boosted with the current shots. "We remain cautiously optimistic that our current vaccine with the boost can provide meaningful protection," he said. It's too early to know whether Omicron will overtake Delta, Dolsten saysIf there is a major drop in protection, a second question will become consequential: Will Omicron overtake Delta around the world? The answer will also come in the following weeks. "We'll likely know in December," Dolsten said. If Omicron does become the world's dominant variant, new vaccines would need to be distributed everywhere. But if it dissipates or fails to outcompete the Delta variant, new vaccines probably wouldn't be widely needed.There's reason for measured optimism here. The Beta variant previously spooked scientists by showing the ability to significantly degrade the vaccine response. But despite that attribute, it never took off around the world. "It's still too early to understand whether Omicron has the same transmissible ability as Delta to become a pandemic strain, or if it will be similar to the Beta strain that started in South Africa but really became a local epidemic and more or less vanished," Dolsten said. Pfizer previously developed Beta- and Delta-specific shots but didn't need to use either of them. Beta fizzled out, and the current vaccines held up well enough against Delta. Those two factors will determine whether Pfizer is running another fire drill with an Omicron-specific booster shot or if this will be the time a new vaccine is actually necessary.With antiviral pills bridging the gap, Dolsten says a new shot could be ready by MarchIf the worst-case scenario of Omicron defeating the current vaccines does come to fruition, Dolsten said Pfizer will be ready. His goal is to be prepared to launch a new vaccination campaign by March 2022, if needed.Pfizer is far from alone, as many drug companies are prepping for Omicron. Several other vaccine developers, including Moderna, Novavax, and Johnson & Johnson, are working on new boosters tailored to Omicron.Pfizer's plan is to finalize its manufacturing process for the Omicron-specific shot by the end of February. Dolsten said he thinks the company might not have to run clinical trials to win an OK, instead just sharing manufacturing details with regulators on the strain shift. He said they would share their previous experience in developing and testing Beta- and Delta-specific shots. Dolsten said Pfizer could start commercial production in March, increasing its output each week up to 80 million doses per week. At the full-run rate, Pfizer can pump out 1 billion doses each quarter, Dolsten said.Before then, Dolsten said he thinks the company's experimental antiviral pill, Paxlovid, will have a major impact. A clinical study in unvaccinated people at high risk of severe disease showed the treatment reduced hospitalizations and deaths by 89%. US regulators are reviewing the drug, and within the next few months Paxlovid could win authorization and start being used to treat COVID-19 patients.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 30th, 2021

6 Reasons to Invest in Hancock Whitney (HWC) Stock Right Now

Supported by strong fundamentals, and solid earnings and sales growth projections, Hancock Whitney (HWC) stock seems to be a good investment option now. Hancock Whitney Corporation HWC stock looks like a good investment option right now. Supported by the continued rise in loan balances and its inorganic growth efforts, the company’s revenues are anticipated to keep improving in the near term. Its efficient capital deployment activities reflect a solid balance sheet position.Moreover, analysts seem to be optimistic regarding the company’s earnings growth prospects. Over the past 30 days, the Zacks Consensus Estimate for HWC’s current-year earnings has moved 1.4% upward. The company currently carries a Zacks Rank #2 (Buy).Looking at its price performance, shares of the company have gained 72% over the past year compared with 46.7% growth recorded by the industry. Image Source: Zacks Investment Research A few factors that make Hancock Whitney stock an attractive pick right now are mentioned below.Key Factors to NoteEarnings Strength: Hancock Whitney’s earnings witnessed a rise of 7.9% over the last three to five years. In 2019, the company acquired MidSouth Bancorp, which continues to be accretive to earnings. With the company’s continued strategic investments in growth and new markets, the upward momentum is likely to persist in the near term.In 2021, Hancock Whitney’s earnings are projected to increase significantly. Also, the company has an impressive earnings surprise history. Its earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters.Revenue Growth: Supported by a rise in loans, the company’s revenues (on a tax-equivalent basis) witnessed a compound annual growth rate (CAGR) of 7.9% over the past six years (2015-2020). The upward trend in revenues continued in the first nine months of 2021 as well.For 2021, the company’s top line is projected to grow 2.7%.Solid Capital Deployment Actions: Hancock Whitney’s capital deployment plans seem impressive, through which it is expected to keep enhancing shareholder value. In 2018, the bank hiked quarterly dividends by 12.5% and has maintained that level since then. While share repurchases were suspended last year in response to the coronavirus-led concerns, the company authorized the repurchase of up to 4.3 million shares this April. As of Sep 30, 2021, 4.1 million shares remained under the authorization (set to expire on Dec 31, 2022).Strong Leverage: Currently, Hancock Whitney has a debt/equity ratio of 0.07. This compares favorably with the industry average of 0.14. Given the relatively low debt/equity ratio than its peers, the company is expected to be financially stable, even in adverse economic conditions.Superior Return on Equity (ROE): Hancock Whitney’s trailing 12-month ROE reflects its superiority in terms of utilizing shareholder funds compared with its peers. The company has an ROE of 12.59%, higher than the industry average of 11.91%.Favorable Valuation: Hancock Whitney stock looks undervalued right now when compared with the broader industry. Its current price/earnings (P/E) and price/sales (P/S) ratios are below the respective industry averages.It has a P/E (F1) ratio of 9.94, lower than the industry average of 11.49. Its P/S ratio of 3.15 compares with the industry average of 3.21.Other Stocks Worth ConsideringA few other top-ranked stocks from the finance space are Popular, Inc. BPOP, The Charles Schwab Corporation SCHW and Home Bancorp, Inc. HBCP. While Popular currently sports a Zacks Rank #1 (Strong Buy), Schwab and Home Bancorp carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Popular’s current-year earnings has moved 9.2% upward over the past 60 days. The BPOP stock has gained 61.6% in the past year.Schwab’s 2021 earnings estimates have been revised upward by 2.2% over the past 60 days. SCHW’s shares have rallied 60.1% in the past year.Earnings estimates for Home Bancorp have moved 14% upward over the past 60 days. The HBCP stock has appreciated 44.3% in the past year. Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. See Zacks’ Hottest Tech IPOs Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Charles Schwab Corporation (SCHW): Free Stock Analysis Report Popular, Inc. (BPOP): Free Stock Analysis Report Home Bancorp, Inc. (HBCP): Free Stock Analysis Report Hancock Whitney Corporation (HWC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 30th, 2021

Archer Daniels (ADM) Acquires Sojaprotein to Meet High Demand

In a bid to meet the growing demand for alternative protein, Archer Daniels (ADM) concluded the buyout of Sojaprotein. The move is expected to be accretive to its nutrition segment. Archer Daniels Midland Company ADM acquired one of the leading European providers of non-GMO soy ingredients, namely Sojaprotein. The move is part of the company’s efforts to expand in the alternative protein space to meet the growing demand for plant-based foods and beverages across Europe. The acquisition is likely to be accretive to ADM’s nutrition segment.Other notable investments include opening a soy protein complex in Brazil, a pea protein plant in North Dakota, a joint venture with PlantPlus Foods and partnerships with startups like Air Protein. The global alternative protein industry is likely to reach $30 billion in the next decade.Here’s What Else You Should KnowADM has long been benefiting from the favorable demand, continued growth in the Nutrition segment and other strategic endeavors. It is also progressing well with its Readiness program, which is focused on accelerating and enhancing competitiveness.Speaking of Archer Daniels’ nutrition segment, third-quarter 2021 revenues rose 17%, with year-over-year adjusted operating profit growth of 19.7%, owing to significant gains in the Human and Animal Nutrition units.The Human Nutrition unit gained from better volume and favorable product mix and beverage strength, which drove Flavors’ results in the EMEA and North America. Solid demand for alternative proteins contributed to the Specialty Ingredients category. The Health & Wellness unit also witnessed robust quarterly growth, particularly in bioactives and fiber.The company has been investing in bolt-on acquisitions to build a one-stop shop with top-notch ingredients and solutions for the Human Nutrition unit. It also ventured into the flavors space with the acquisition of WILD.The Animal Nutrition unit grew more than two-fold year over year in the third quarter, driven by strength in amino acids as well as feed additives and ingredients, which somewhat offset elevated costs in LATAM and slower demand recovery in the APAC region.The nutrition segment is likely to sustain momentum, with year-over-year earnings growth in the fourth quarter and operating profit growth of 20% in 2021. The segment is on its way to attaining $1-billion operating profit in the years ahead.As a result, the company posted impressive third-quarter 2021 results, wherein both top and bottom lines advanced year over year. This marked the eighth straight quarter of adjusted operating profit growth. Revenues grew 34.5% year over year, driven by solid sales across the majority of the segments. Management remains optimistic about the fourth quarter and 2022 performance, driven by healthy global demand. The company also envisions another year of solid earnings growth.In the past three months, shares of this Zacks Rank #3 (Hold) company have risen 8.6% compared with the industry’s growth of 4.4%. Image Source: Zacks Investment Research The company has been expanding its solutions portfolio, which forms part of its Carbohydrate Solutions unit. Archer Daniels collaborated with LG Chem to produce lactic and polylactic acids for bioplastics, a plant-based product.Earlier, the company launched Biosolutions to expand its portfolio of sustainable higher-margin solutions, particularly for pharmaceuticals and personal care markets. Such endeavors are likely to help attain 10% revenue growth on an annual basis.In a recent development, Archer Daniels entered a joint venture with Gevo to help meet the demand for low carbon sustainable aviation fuel. It also decided to shut down its ethanol facility in Peoria by the end of October. The company is also utilizing innovative technologies to develop products and boost operating capabilities.However, ADM continues to witness higher SG&A expenses due to elevated performance-related compensation, project-related costs and shifting of costs from business segments to the centralized centers of excellence in supply chain and operations. For the fourth quarter of 2021, higher manufacturing costs also remain concerning for the Carbohydrates Solutions and Ag Services & Oilseeds segments.Stocks to ConsiderWe have highlighted some better-ranked stocks from the broader Consumer Staples space, namely Albertsons Companies ACI, Helen of Troy HELE, and Tyson Foods TSN.Albertsons Companies currently sports a Zacks Rank #1 (Strong Buy). ACI has a trailing four-quarter earnings surprise of 37.6%, on average. Shares of Albertsons Companies have gained 17.1% in the past three months. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for sales for ACI’s current financial year suggests year-over-year growth of 3.6%, while the same for earnings per share indicates a decline of 16.7% from the year-ago period’s reported figure. ACI has an expected long-term earnings growth rate of 12%.Helen of Troy presently carries a Zacks Rank #2 (Buy). HELE has a trailing four-quarter earnings surprise of 19.8%, on average. Shares of the company have gained 2.9% in the past three months.The Zacks Consensus Estimate for Helen of Troy’s sales and earnings per share for the current financial year suggests a decline of 15.9% and 16.2%, respectively, from the year-ago period’s reported numbers. HELE has an expected long-term earnings growth rate of 8%.Tyson Foods, a Zacks Rank #2 stock, has a trailing four-quarter earnings surprise of 25.2%, on average. Shares of TSN have gained 4.3% in the past three months.The Zacks Consensus Estimate for Tyson Foods’ sales and earnings per share for the current financial year suggests growth of 14.6% and 3.6%, respectively, from the year-ago period’s reported figures. TSN has an expected long-term earnings growth rate of 7.5%. Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. See Zacks’ Hottest Tech IPOs Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Archer Daniels Midland Company (ADM): Free Stock Analysis Report Albertsons Companies, Inc. (ACI): Free Stock Analysis Report Tyson Foods, Inc. (TSN): Free Stock Analysis Report Helen of Troy Limited (HELE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 30th, 2021

Why Seasoned Investors are Retaining Acadia (ACHC) Stock

Acadia Healthcare's (ACHC) buyouts are helping the company to add facilities, beds and hospitals to its network and contributing to its top line. Acadia Healthcare Company, Inc. ACHC is well-poised to grow on the back of robust volumes and operational improvement in the U.S. segment. Streamlining portfolio in order to boost profits is also commendable.Acadia Healthcare — with a market cap of $6.1 billion — provides behavioral health care services in the United States and the U.K. The Franklin, TN-based firm is primarily involved in developing inpatient psychiatric facilities, outpatient behavioral healthcare facilities, residential treatment centers, substance abuse facilities and others.The company beat earnings estimates thrice in the last four quarters and met once, the average surprise being 20.2%.Acadia Healthcare Company, Inc. Price and EPS Surprise Acadia Healthcare Company, Inc. price-eps-surprise | Acadia Healthcare Company, Inc. QuoteCourtesy of solid prospects, this Zacks Rank #3 (Hold) stock is worth holding on to at the moment.Major PositivesThe company’s revenues witnessed a CAGR of 3.1% in the 2015-2020 period owing to strong organic and inorganic growth. Even though revenues were affected by the coronavirus outbreak initially, a strong performing U.S. business drove the top line. For 2021, revenues are estimated between $2.295 billion and $2.315 billion, the mid-point of which indicates growth of 10% from the 2020 reported figure. Acadia Healthcare’s growth strategy, which includes network expansion through addition of beds, setting up of wholly-owned de novo facilities by strategic joint ventures and acquisitions, bodes well for the top line.Acadia Healthcare has been emphasizing on buyouts for expedited growth. This strategy helped the company to add facilities, beds and hospitals to its network and contributed to the top line. The company remains actively engaged with its acquisition pipeline and expects buyout and joint venture activity to be heavily skewed toward acute facilities in the domestic market. In fact, the company added 104 beds to its existing operations in the third quarter.Acadia Healthcare is also actively pursuing joint ventures (JVs) with renowned healthcare systems, which is helping the company to expand its capabilities through bed additions. The healthcare provider has a robust pipeline of JV projects, which are yet to be completed. This makes the company optimistic about the year 2022. The year 2022 is likely to be its strongest year with respect to JVs as four or five facilities are expected to commence operations. This month, it entered into a JV with California’s renowned integrated healthcare system, Scripps Health, for operating an inpatient behavioral health hospital in the Eastlake community of Chula Vista. The hospital will house 120 beds and a speciality unit, which will cater to the behavioral health treatment of active-duty military and veterans.Its strategic moves to streamline portfolio in order to boost profits are also praiseworthy. It separated the underperforming U.K. operations this year, which was negatively impacting growth. The move enables Acadia Healthcare to improve profitability and achieve growth by focusing on more profitable business.Key ConcernsHowever, there are a few factors that are impeding the growth of the stock lately.ACHC expects 2021 adjusted earnings per share within $2.51-$2.59 down from the earlier view of $2.50-$2.70. Shrinking bottom line can be worrisome. Also, the company’s high leverage remains a cause of concern for investors. Its long-term debt of $1.44 billion is way higher than cash and cash equivalents of $196.3 million, which highlights the company’s weak solvency position. This can affect its financial flexibility. Nevertheless, we believe that a systematic and strategic plan of action will drive its long-term growth.Stocks to ConsiderSome better-ranked players in the medical space include Co-Diagnostics, Inc. CODX, Doximity, Inc. DOCS and Harrow Health, Inc. HROW, each having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Salt Lake City, UT-based Co-Diagnostics’ bottom line for 2021 has witnessed one upward estimate revision in the past 30 days and no movement in the opposite direction. During this time period, its earnings estimates have risen 17.9%. CODX beat earnings estimates thrice in the last four quarters and missed once, the average surprise being 35.6%. The molecular diagnostics company provides a wide range of testing services to customers. Its joint venture CoSara in India is likely to have boosted its addressable market size. Also, Co-Diagnostics’ Logix Smart™ ABC test received a green signal from the Mexican watchdogs. Deals like these will keep strengthening its client base around the world.Headquartered in San Francisco, CA, Doximity’s bottom line for 2021 has witnessed four upward estimate revisions in the past 30 days and no movement in the opposite direction. During this time period, its earnings estimates have risen 39%. DOCS’ cloud-based digital platform for medical professionals is expected to keep growing in the coming days. As the coordinated patient care and virtual patient visits are expected to increase, backed by improved technologies, demand for Doximity’s platform will keep rising.Based in San Diego, CA, Harrow Health’s bottom line for 2021 is expected to soar 346.2% year over year. It has witnessed one upward estimate revision in the past 30 days and no movement in the opposite direction. HROW beat earnings estimates thrice in the past four quarters and missed once, the average surprise being 38%. It is an ophthalmic-focused healthcare firm. Its recent acquisitions of ophthalmic surgical drug candidates from Sintetica and Wakamoto Pharmaceutical are major positives. Moves like these will likely bolster Harrow Health’s commercial success in the U.S. and Canadian markets.In the past six months, stocks of Co-Diagnostics, Doximity and Harrow Health rose 15.3%, 25.8% and 8.6%, respectively. Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. See Zacks’ Hottest Tech IPOs Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Acadia Healthcare Company, Inc. (ACHC): Free Stock Analysis Report Harrow Health, Inc. (HROW): Free Stock Analysis Report CoDiagnostics, Inc. (CODX): Free Stock Analysis Report Doximity, Inc. (DOCS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 30th, 2021

Heat dissipation vendors cautiously optimistic about 2022 as Samsung reintroduces vapor chambers to new phones

Samsung Electronics reportedly is looking to once again use vapor chambers (VCs) in its new mobile phone models slated for launch in 2022. While it may not all be smooth sailing, heat dissipation companies are cautiously optimistic about the heat dissipation industry in 2022......»»

Category: topSource: digitimesNov 30th, 2021

Rapid Cloud Migration to Drive Salesforce (CRM) Q3 Earnings

Salesforce's (CRM) Q3 results are likely to reflect gains from the accelerated adoption of SaaS-based platforms amid the pandemic-led accelerated digital transformation. Salesforce's CRM third-quarter fiscal 2022 results, slated for a Nov 30 release, are likely to reflect the benefits from a robust demand environment as organizations are undergoing a major digital transformation.The increased adoption of cloud-based solutions amid business disruptions caused by the COVID-19 pandemic is expected to have driven demand for Salesforce’s products. Its ability to provide an integrated solution for customers’ business problems is the key driver.Click here to know how CRM’s overall fiscal third-quarter results are likely to be.Increased Cloud Adoption to Have Aided Q3 PerformanceThe rapid adoption of the software-as-a-service (SaaS)-based platforms amid the ongoing work-from-home and online learning trend is expected to have spurred demand for Salesforce’s cloud-based solutions. Salesforce’s diverse cloud offerings are likely to have helped expand its clientele, fueling the top line.salesforce.com, inc. Price and EPS Surprise salesforce.com, inc. price-eps-surprise | salesforce.com, inc. QuoteThe company’s Customer 360 Truth platform that helps connect all the data from sales, service, marketing, commerce and build a single Salesforce ID for each customer is likely to have boosted its performance.Also, Salesforce’s initiatives to capitalize on overseas demand for the cloud-based applications are anticipated to have bolstered the top line during the period in discussion. Further, the improved customer experience is anticipated to have aided the cloud segment. Also, CRM’s focus on AI and the substantial progress in its Einstein Analytics platform make it optimistic about the upcoming quarterly results.However, a decline in software spending by small & medium businesses amid the macroeconomic uncertainty due to the pandemic might have affected Salesforce’s fiscal third-quarter performance. Also, increasing investments in International expansions and data centers might have eroded the company’s profitability during the to-be-reported quarter.Partnerships and Acquisitions to Have Fueled GrowthSalesforce’s focus on building partnerships is anticipated to have fueled the top line. These strategic partnerships have not only helped it grab new deals but also expanded the firm’s operations internationally.Further, partnership agreements with the likes of Apple, Amazon, Google parent Alphabet, Microsoft, HP, Dell, International Business Machines and others for the firms’ cloud services are likely to have aided Salesforce’s performance during the fiscal third quarter.Additionally, CRM’s strategic acquisitions over the past 12 months are anticipated to have brought incremental revenues in the quarter under review. On Jul 21, 2021, Salesforce announced completing the buyout of Slack, which has positioned it as a leader in the enterprise team collaboration solution space.Salesforce bought Acumen Solutions, a McLean, Virginia-based professional services firm, in February 2021. Salesforce anticipates revenue contributions from the newly acquired Slack and Acumen businesses to be approximately $530 million and $200 million, respectively in fiscal 2022.Zacks Rank & Other Stocks to ConsiderSalesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Some better-ranked stocks from the broader technology sector include Google-parent Alphabet GOOGL, Diodes DIOD and PTC Inc. PTC, each sporting a Zacks Rank #1.The Zacks Consensus Estimate for Alphabet’s fourth-quarter 2021 earnings has been revised downward by a penny to $26.71 per share over the past seven days. For 2021, earnings estimates have moved upward by 43 cents to $108.29 per share in the last seven days.Alphabet’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 41.5%. The GOOGL stock has rallied 66.9% in the year-to-date (YTD) period.The Zacks Consensus Estimate for Diodes’ fourth-quarter 2021 earnings has been revised upward by 23.9% to $1.45 per share over the past 30 days. For 2021, earnings estimates of Diodes have moved upward by 6.3% to $5.06 per share over the last 30 days.Diodes’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 10%. Shares of DIOD have rallied 53.6% YTD.The consensus mark for PTC Inc.’s first-quarter fiscal 2022 earnings has been raised to $1.00 per share from 90 cents 30 days ago. For fiscal 2022, earnings estimates have been revised upward by 28 cents to $4.19 per share in the last 30 days.PTC Inc.’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missed the same on one occasion, the average surprise being 47.8%. Shares of PTC have gained 0.7% YTD. Investor Alert: Legal Marijuana Looking for big gains? Now is the time to get in on a young industry primed to skyrocket from $13.5 billion in 2021 to an expected $70.6 billion by 2028. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could kick start an even greater bonanza for investors. Zacks Investment Research has recently closed pot stocks that have shot up as high as +147.0% You’re invited to immediately check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers 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 salesforce.com, inc. (CRM): Free Stock Analysis Report Diodes Incorporated (DIOD): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report PTC Inc. (PTC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 29th, 2021