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Recap: Red Robin Gourmet Burgers Q1 Earnings

Shares of Red Robin Gourmet Burgers (NASDAQ:RRGB) increased in after-market trading after the company reported Q1 results. Quarterly Results Earnings per share increased 95.50% over the past year to ($0.30), which beat the estimate of ($1.16). read more.....»»

Category: blogSource: benzingaMay 25th, 2021

S&P Retakes 3700 while NASDAQ Hits Another New Record

S&P Retakes 3700 while NASDAQ Hits Another New Record The market may still be waiting for a stimulus package at the moment, but it had enough energy on Wednesday to recapture a milestone and set a new record. The S&P closed above 3700 for only the second time in history today. The index rose 0.18% to 3701.17, which put it a little more than a point away from a new record. It was last above 3700 on Tuesday, December 8. Meanwhile, the NASDAQ climbed 0.50% (or about 63 points) to a new closing high of 12,658.19, but the Dow slipped 0.15% (or about 45 points) to 30,154.54. The Fed – and its unprecedented support for this economy – isn’t going anywhere. In addition to keeping rates unchanged as was widely expected, the Committee will continue its asset purchase program unabated until its goals are met. And you can bet that rates will stay at historic lows for the next several years. Meanwhile, the market is cautiously optimistic that Capitol Hill is finally on course for a relief package. In recent days, we’ve seen the proposal split into two separate bills that should be easier to pass. Also, the major players in both houses of Congress have been talking and seem encouraged that something will actually get done. This would be a great time to make it happen, as rising coronavirus cases are leading to renewed restrictions across the country. Such measures are being felt in the economic data. We got another example just today when retail sales for November were down 1.1%, which was worse than expected and marked a second straight monthly decline. And let’s not forget that the jobs data for November (released earlier this month) was quite sluggish with only 245K jobs being added instead of around 450K as expected. So the economic recovery is certainly slowing down, but a nice stimulus deal could keep it going while we wait for the vaccines to do their job... Today's Portfolio Highlights: Income Investor: Investment bankers like Goldman Sachs (GS) are handling this pandemic better than most other banks. Shares of the company surged 74% since the coronavirus lows, which easily outperformed the S&P. In addition, GS had a “blowout” third quarter and is diversifying for the future through initiatives like consumer banking. And yet, GS is still “just too cheap to ignore”, according to Maddy. Shares trade at 10x trailing 12-month earnings, compared to the finance market’s 18x. And its dividend currently yields just under 2.1% on an annual basis with a payout ratio at 21%, so there’ll be no problem covering payouts or planned increases moving forward. To recap: GS has market-leading positions, a diversifying revenue stream, top-tier profit levels and a solid dividend. And despite all that, it remains at “bargain basement levels”. No wonder the editor added the stock on Wednesday. Learn a lot more about this new addition in the complete commentary. Home Run Investor: Next year could be pretty strong for a name like Sterling Construction (STRL), which is a leading heavy civil construction company that specializes in the building and reconstruction of transportation and water infrastructure projects. In other words, it would be a big beneficiary of any federal infrastructure plans. The past two quarters included large earnings surprises, while rising estimates have lifted STRL to a Zacks Rank #1 (Strong Buy). If this stock sees some margin expansion, Brian thinks it would move sharply higher. In addition to adding STRL, the editor also sold The Andersons (ANDE) after slipping to a Zacks Rank #4 (Sell). The agriculture company still brought the portfolio a return of approximately 10.2% in two months. Read the full write-up for more on today’s moves. In other news, this portfolio had a top performer on Wednesday as Dynatrace (DT) rose 8.3%. Counterstrike: This portfolio’s patience with Turtle Beach (HEAR) paid off on Wednesday, as the audio technology company was sold for a return of about 38%. Jeremy first bought the stock on July 13 and then added to it on August 17. The long awaited-for spike finally came and lifted HEAR to the top performer in the portfolio. Also today, the editor bought beverage company National Beverage Corp. (FIZZ) with a 7% allocation and added onto e-commerce service provider Overstock.com (OSTK) with a 6% allocation. FIZZ, which made 22% for the portfolio last month, had a nice pullback recently and seems set to move higher. Meanwhile, OSTK, which was first bought on November 24, has moved higher in the past couple of days and prompted Jeremy to make a bigger commitment. Read the complete commentary for a lot more about today’s moves. All the Best, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

NASDAQ Closes Above 14K on Fourth Day of Record Highs

NASDAQ Closes Above 14K on Fourth Day of Record Highs SPECIAL ALERT: The February episode of the Zacks Ultimate Strategy Session is now available for viewing! Tune in to this “must-see” event when Kevin Matras, Sheraz Mian, David Bartosiak and Daniel Laboe discuss the investment landscape from several angles. Don’t miss your chance to hear: ▪ Sheraz and David Agree to Disagree on Reddit Wall Street bets and whether they’re good or bad for the market ▪ Kevin answers questions ranging from where he expects to see the market by end of year to his odds of a correction, plus discusses the tutorial on how to use Zacks.com, in Zacks Mailbag ▪ David and Daniel choose one portfolio to give feedback for improvement ▪ And much more Simply log on to Zacks.com and view the February episode here. And please let us know what you think of this format. Email all feedback to mailbag@zacks.com. The S&P and Dow had their first negative sessions of February on Tuesday, but the good old NASDAQ managed to keep advancing and setting new records. The tech-heavy index, which has soared approximately 7% so far this month, rose 0.14% (or about 20 points) to 14,007.70. That advance may not be impressive, but it did help the NASDAQ close above 14,000 for the first time ever and extend its record-setting winning streak to four sessions. Unfortunately, not all winning streaks were safe today. The other two major indices saw their six-day runs come to an end with slight losses in a choppy, low volume session. The S&P slipped 0.11% to 3911.23, while the Dow was off 0.03% (or less than 10 points) to 31,375.83. These indices reached new highs yesterday along with the NASDAQ. The market has been in an amazing mood for a while now. The upcoming stimulus is, of course, the main reason for this optimism along with hopes for a smooth vaccine rollout. However, the better-than-expected earnings season is also a big help. But we all knew stocks weren’t going to keep rising and setting records throughout February. It was about time we took a break from all the excitement stemming from the recent short squeezes and big tech’s quarterly reports. There’s no break from earnings season, though. Tomorrow’s reports include some big names like Coca-Cola (KO), Uber (UBER), General Motors (GM) and CME Group (CME), along with dozens of others. Today's Portfolio Highlights: Stocks Under $10: Gamblers will be returning to the casinos amid this vaccine rollout, which means investors are returning to the gaming space. Brian is putting some money down on Full House Resorts (FLL), a developer and manager of gaming facilities. The editor was impressed with its most recent quarterly report, which included earnings of 28 cents compared to expectations for a 2-cent loss. “That is a huge surprise and probably what we can expect in the coming quarters as lockdowns are relaxed and vaccines allow people to hit the casino again,” said Brian. Rising earnings estimates have made FLL a Zacks Rank #2 (Buy) and its valuation looks good. Get more specifics on this new buy in the full write-up.   Surprise Trader: Will it be four straight quarters of earnings beats for Sonoco Products (SON)? We’ll find out when it reports before the bell on Thursday, but Dave thinks there’s a good chance that the streak continues. The company has a positive Earnings ESP for the release. SON is a leading provider of consumer packaging, industrial products, protective packaging and packaging supply chain services. The editor added SON on Monday with a 12.5% allocation, while also selling Meridian Bioscience (VIVO) for a solid 19.9% return in just a little over a week. Read the full write-up for more on today’s moves.   Counterstrike: With its earnings report scheduled for later this month, Jeremy decided to sell half of his remaining position in e-commerce company Overstock.com (OSTK) for a more than 61% return. The editor took a 28.7% profit out of this name in late January, but held onto half just in case the stock rallied past $100. That was a good move since it’s currently more than $103. So to recap, OSTK has brought two double-digit gains of late and the editor is still holding shares as the stock nears its short-term targets of $109. In other news, the market is far too strong for the service to hold ProShares UltraPro Short QQQ (SQQQ) any longer, so Jeremy sold this hedge on Monday for a loss.   Marijuana Innovators: This portfolio had a great Tuesday session with three of the top five movers among all ZU names. And each of them were double-digit winners! These noteworthy performances came from Aphria (APHA, +24.9%), Artelo Biosciences (ARTL, +14.1%) and Canopy Growth (CGC, +12%). Zacks Short Sell List: The portfolio swapped out four positions in this week's adjustment. The stocks that were short-covered included: • NeoGenomics (NEO) • Alteryx (AYX) • TAL Education Group (TAL) • GoodRX Holdings (GDRX) The new buys that replaced these names were: • Aramark (ARMK) • Intuit (INTU) • Marriott Int'l (MAR) • Penn National Gaming (PENN) Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short Sell List Trader Guide. Have a Great Evening, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Stocks Slip from Highs in Groggy Start to Week

Stocks Slip from Highs in Groggy Start to Week After jumping by 1% or more last week amid strong earnings results and economic data; stocks retreated a bit from record highs on Monday. Hey... sometimes the weekend just isn’t enough time to re-charge your batteries. The Dow snapped a three-day winning streak today by slipping 0.36% (or about 123 points) to 34077.63, while the S&P was off 0.53% to 4163.26. These indices both hit record highs on Thursday and Friday, bringing their weekly gains to 1.2% and 1.4%, respectively. The NASDAQ saw the steepest decline on Monday as tech underperformed. It was off 0.98% (or about 137 points) to 13914.77. The index rose 1% last week and has moved 1% or more in four of the past five sessions. It’s about 1.3% away from a new record. Last week deserves a little recap. Several of the biggest banks in the world reported solid results to begin earnings season, including JPMorgan (JPM) and Goldman Sachs (GS). Meanwhile, retail sales and jobless claims absolutely crushed expectations due to stimulus checks and a rapid vaccine rollout. Earnings season continued today with reports from a couple household names: Coca-Cola (KO) and IBM (IBM). The soft drink staple beat by 10%, while Big Blue topped by 6%. IBM is up 2.9% after hours as of this writing, while KO is narrowly down by about 0.1%. Perhaps the biggest earnings report of the week comes tomorrow when Netflix (NFLX) goes to the plate. This marks the first FAANG of the season. The streaming pioneer was up 1.45% today and is in the green after hours at the moment. Speaking of the FAANGs, Insider Trader and Value Investor editor Tracey Ryniec takes a look at The Best of the FAANG Earnings Charts in a new video today. Earnings season revs up this week with more than 300 companies reporting from a diverse group of industries. In addition to NFLX, we’ll also be hearing from Johnson & Johnson (JNJ), Procter & Gamble (PG) and Abbott Labs (ABT) on Tuesday. Today's Portfolio Highlights: Surprise Trader: The tools – handheld space is in the top 2% of the Zacks Industry Rank, so Dave added one of its best-known members on Monday. He picked up SnapOn (SNA), a Zacks Rank #2 (Buy) that has easily beaten the Zacks Consensus Estimate by double digits in the past two quarters. Now it has an Earnings ESP of 5% for the quarter coming before the bell on Thursday, April 22. The editor added SNA today with a 12.5% allocation, while also selling the rest of Acuity (AYI) for a 20% return in about three weeks and Commerce Bancshares (CBSH) for a slight loss. Read the full write-up for more. Black Box Trader: The portfolio replaced four names in this week's adjustment. The stocks that were sold today included: • Jabil (JBL, +7.1%) • ExxonMobil (XOM, +1%) • Valero Energy (VLO) • United Natural Foods (UNFI) The new buys that replaced these names were: • Abercrombie & Fitch (ANF) • CNH Industrial (CNHI) • Marathon Petroleum (MPC) • Toll Brothers (TOL) Read the Black Box Trader’s Guide to learn more about this computer-driven service. Options Trader: "There was no new news per se weighing on stocks. But after 4 up weeks in a row, there was bound to be some profit taking one of these days. "Earnings season, which got off to a rousing start last week, continues to impress. And we'll get another 375 companies reporting this week, and another 994 next week. As you know, earnings season is always an exciting time since stocks typically go up during earnings season. "We're also likely to hear more talk on infrastructure this week. That includes the size of the package, as well as the tax hikes to pay for it. "In the meantime, the economic rebound continues to gain steam." -- Kevin Matras Until Tomorrow, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Stocks Down Slightly for Week, But Rally Back from Tax Scare

Stocks Down Slightly for Week, But Rally Back from Tax Scare Stocks calmed down significantly from yesterday’s tax scare, allowing all the major indices to rally on Friday and bring their weekly losses to within 0.5%. The market didn’t take kindly to news reports on Thursday that President Biden was thinking about doubling the capital gains tax on those making $1 million or more. Stocks had a good old-fashioned selloff of nearly 1%. However, it looks like that was just a knee-jerk reaction as investors simmered down overnight and came back with a vengeance. The NASDAQ jumped 1.44% (or nearly 200 points) to 14016.81, while the S&P rose 1.09% to 4180.17. These gains more than made up for yesterday’s slide. The Dow lagged its counterparts but still increased 0.67% (or about 227 points) to 34,043.49. It’s been a volatile week with the market having big shoes to fill after reaching new highs last Friday on the back of strong retail sales and jobless claims reports. And the tax stuff yesterday only made it worse. In the end, the S&P slipped 0.1% this week, while the NASDAQ was off 0.3% and the Dow dropped 0.5%. These modest declines end weekly winning streaks for all the indices, but it was looking a lot worse this morning. They were each coming into the session with losses of well over 1%. Now that we can put taxes behind us for now (there’ll be A LOT of debate on this issue in the weeks ahead), we can put our focus back on earnings season where it belongs. And things are going to get really interesting next week! But first let’s recap. The season is off to a great start. With a little less than a quarter of S&P companies having reported thus far, total earnings are up nearly 47% and revenues have advanced more than 5%. For all of the info on the season so far and the season yet to come, check out Director of Research Sheraz Mian’s latest article: “Previewing Big Tech Earnings”. As the title suggests, we’re getting ready for the FAANGs! Netflix (NFLX) reported this past Tuesday, but the other four come next week. We’ll be getting Alphabet (GOOG) on Tuesday, Facebook (FB) and Apple (AAPL) on Wednesday, and Amazon (AMZN) on Thursday. And just for good measure, we also have Tesla (TSLA) on Monday and Microsoft (MSFT) on Tuesday. All come after the bell. There’ll also be about 800 more companies reporting next week, including 180 S&P members. So get some rest this weekend! Today's Portfolio Highlights: Technology Innovators: This portfolio is always on the lookout for stocks that are on the verge of profitability, and that’s what Brian sees with Upwork (UPWK). This Zacks Rank #2 (Buy) is an online recruitment services company that focuses on website developers, as well as virtual assistants, marketing experts and the like. UPWK has easily beaten the Zacks Consensus Estimate in the past two quarters with positive surprises of 75% and 114% with the most recent quarter also moving to profitability. Earnings estimates for this year are still seeing a loss, but it has narrowed significantly. The most recent quarter saw topline growth of 32% on an annual basis with 25% and 22% expected for this year and next, respectively. The editor is getting into UPWK now so he can be a part of its move into the green. Learn more in the full write-up. In other news, this service had the best performer of the day among all ZU names as Clearfield (CLFD) jumped 22.5%. Surprise Trader: The final buy for the portfolio in this busy week of earnings is Polaris (PII), which will be going for a fourth straight positive surprise before the bell on Tuesday, April 27. This Zacks Rank #2 (Buy) designs, engineers and manufactures off-road and on-road vehicles. It beat by 17% last time and has a positive Earnings ESP of 4.12% heading into next week’s report. Dave added PII on Friday with a 12.5% allocation, while also getting out of World Wrestling Entertainment (WWE) with a slight loss to make more room for additions moving forward. See the complete commentary for more on today’s action. Stocks Under $10: Retail is heating up right now as the economy prepares to reopen, so more inventory needs to be shipped. Rail will be a big part of this system, so Brian added Freightcar America (RAIL) on Friday. This Zacks Rank #2 (Buy) manufacturer of railroad freight cars recently beat the Zacks Consensus Estimate by 36%. The expected loss for this year is moving in the right direction by narrowing to 99 cents from $1.21. But the editor was most impressed with projected topline growth of 75% for this year and 60% for next, along with an attractive valuation that leaves plenty of room to move higher. See the complete commentary for more specifics on this new pick. By the way, this portfolio had two of the best performers on Friday with GT Biopharma (GTBP, +16.2%) and Cassava Sciences (SAVA, +9.7%). Marijuana Innovators: For the first time in this portfolio’s history, Dave is buying an ETF. Usually, he doesn’t like ceding so much control to a manager, but he feels pretty confident that Amplify Seymour Cannabis ETF (CNBS) will work out fine. This fund should “allow us to participate in the price movement of some of the Canadian and OTC stocks without the messiness and uncertainty of doing the individual trades ourselves”. Make sure to read Dave’s complete commentary for all the specifics on this new buy. Home Run Investor: When the pandemic took airplanes and hotels off the table, people turned to RVs for their vacation plans. The environment led to a great year for Camping World (CWH), a provider of services, protection plans, products and resources for recreational vehicle enthusiasts. The company eclipsed the Zacks Consensus Estimate in each of the past four quarters with an average earnings surprise of 103%. Rising earnings estimates have made CWH a Zacks Rank #1 (Strong Buy). With good topline growth and shares only around $40, Brian sees a fantastic opportunity with this name. Read the full write-up for more on this new addition. Have a Great Weekend! Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Stocks Begin June with a Yawn

Stocks Begin June with a Yawn Just like most of us returning from a long three-day weekend, the market ran out of steam in Tuesday’s session and began the month of June with a rather flat performance. The major indices had an energetic start and seemed ready to continue last week’s solid close. The Dow climbed approximately 300 points at its best, but finished in the green by only 45 points. It was up a scant 0.13% to 34,575.31. Meanwhile, the S&P was off 0.05% to 4202.04, while the NASDAQ dipped 0.09% (or about 12 points) 13,736.48. Last week was strong for all indices as stocks pushed past further signs of rising inflation in a very low volume environment. The NASDAQ was especially impressive despite all its challenges by jumping 2% for the five days. The S&P was up 1.2% last week and the Dow improved 0.9%. With the lion’s share of earnings season over and a new month beginning, we’ll be getting a lot of economic data this week. It started today with a solid ISM manufacturing index, which jumped to 61.2 for May from the previous month’s 60.7. The result was also above expectations as demand is on the rise in a re-opening economy. Any reading over 50 means expansion. Of course, the big news comes on Friday with the Government Employment Situation report. You undoubtedly remember that last month’s print showed the economy adding only 266K jobs… when more than a million were expected! Whatever the specifics might be, it’ll play a part in the Fed’s next meeting later this month and, therefore, in the minds of anxious investors who fear a change in policy.   ‘Peak’ earnings season may be behind us, but there are still some noteworthy names going to the plate. One of them came after the bell today with cloud-based video conferencing company Zoom Video Communications (ZM), which beat the Zacks Consensus Estimate by 36% with revenues soaring nearly 200% year over year. ZM will certainly see it’s growth slow now that the pandemic’s days are numbers and people go back to in-person meeting. But we all know that these shutdowns have changed the way business will be done in the future, which means ZM’s services will continue to be in demand. Maybe that’s why this stubborn market, which gave the cold shoulder to most strong reports this earnings season, has allowed ZM to move higher by more than 3% afterhours, as of this writing. To recap the May totals, the Dow rose 1.9% last month as recovery names came into favor amid the vaccination rate and easing restrictions. The S&P advanced 0.5%, but the NASDAQ slipped 1.6% as tech stocks went unappreciated. Now let’s see what June has in store for us.  Today's Portfolio Highlights: Surprise Trader: With Covid on its last legs, Dave & Busters (PLAY) is finally rebounding. However, this dining and entertainment company is still well off the pre-pandemic highs near $52. Dave (the editor) thinks that PLAY may be able to make up some of that lost ground when it reports again after the bell on Thursday, June 10, especially if it can beat the Zacks Consensus Estimate for a fourth straight quarter. The company topped by 10.5% last time and has a positive Earnings ESP of 107.9% for the upcoming release. The editor added PLAY on Tuesday with a 12.5% allocation, and also decided to “give up” on Kohl’s (KSS). Read the full write-up for more on today’s moves.   Commodity Innovators: It was a good session for energy and materials names, which are specialties of this portfolio. As a result, the service had three of the top five best performers on Tuesday. The noteworthy results that made this impressive feat possible were Devon Energy (DVN, 13.7%), Sibanye Gold Ltd. (SBSW, +8.6%) and Nucor (NUE, +8%). Zacks Short Sell List: Nearly half of the portfolio was replaced in this week's adjustment. The four stocks that were short-covered include: • Las Vegas Sands (LVS, +2.2%) • Chegg (CHGG) • T-Mobile US (TMUS) • Yandex N.V. (YNDX) The new buys that filled these open spots were: • Callaway Golf (ELY) • GoodRx Holdings (GDRX) • JOYY (YY) • Maxar Technologies (MAXR) Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short Sell List Trader Guide. Black Box Trader: Only two changes in this week's adjustment, which is coming a day late due to the Memorial Day holiday. The stocks that were sold today included CNH Industrial N.V. (CNHI, +4.4%) and Graphic Packaging (GPK, +1.9%), and the new buys that replaced these names were American Axle & Manufacturing (AXL) and Cornerstone Building Brands (CNR). Read the Black Box Trader’s Guide to learn more about this computer-driven service. By the way, this portfolio easily had the top-performing stock among all ZU names on Tuesday as Tenneco (TEN) jumped 19.1%. Have a Good Evening, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

S&P Rises but Can"t Make New Highs

S&P Rises but Can't Make New Highs SPECIAL ALERT: The June episode of the Zacks Ultimate Strategy Session is now available for viewing! Tune in to this “must-see” event when Kevin Matras, Tracey Ryniec, Kevin Cook and Sheraz Mian discuss the investment landscape from several angles. Don’t miss your chance to hear: ▪ Kevin Cook and Tracey Agree to Disagree on whether history will write that Elon Musk disrupted both auto and oil industries ▪ Kevin Matras answers questions regarding a couple of common mistakes and misconceptions in stock-picking and portfolio management, and how to correct them in Zacks Mailbag ▪ Sheraz and Kevin Cook choose one portfolio to give feedback for improvement ▪ And much more Simply log on to Zacks.com and view the June episode here. And please let us know what you think of this format. Email all feedback to mailbag@zacks.com. The market was even flatter on Tuesday than it was yesterday, as the summer swoon keeps stocks just below all-time highs while waiting for the next catalyst. The NASDAQ again was the best performer, though it only advanced 0.31% (or about 43 points) to 13,924.91. The S&P, which came into this session less than 0.3% away from making history, could only advance 0.02% to 4227.26. That’s less than 1 point! The Dow now has back-to-back losses after slipping 0.09% (or around 30 points) to 34,599.82, but it’s still less than 1.5% from its own record. “(The market) almost made all-time highs once again after failing to clip a new high print this morning. We will get there in time, as America is clicking and the reopening is allowing the money to flow,” said Jeremy Mullin in Counterstrike. Meanwhile, it appears there are more jobs out there then there are people to fill them. According to the Job Openings and Labor Turnover Survey (JOLTS), April had nearly 9.3 million job openings, which is a record high and more than the previous month’s 8.3 million (which was also a record at the time). “Current labor shortage notwithstanding, it shows the jobs market isn't expected to slow down anytime soon,” said Kevin Matras in Options Trader. (See more from this editor below.) The meme stocks are still a big story in the market, especially with the speculative traders finding new targets. For example, healthcare technology company Clover Health (CLOV) soared more than 85% today. However, GameStop (GME), the posterchild of the movement, will be reporting its fiscal first quarter results after the bell tomorrow. That should be pretty interesting. Shares of GME are up approximately 1500% so far this year if you can believe it... Today's Portfolio Highlights: Options Trader: The small-cap Russell 2000 is really breaking out right now, so Kevin made a move on Tuesday to take advantage of it. He bought to open two September 233.00 Calls in the iShares Russell 2000 ETF (IWM). Read the full write-up for more on this move and a recap on the rest of the portfolio. Surprise Trader: The first report for H&R Block (HRB) after the tax deadline is right around the corner. The official date hasn’t been announced yet, but last year it was on June 16. So it’s close... and this provider of tax preparation services has a positive Earnings ESP heading into the print. This Zacks Rank #2 (Buy) beat by 6.4% last time. Dave added HRB with a 12.5% allocation on Tuesday, while also dropping the stagnant Columbus McKinnon (CMCO) for a slight loss to prepare space for the next earnings season (which will be here before you know it). Read the full write-up for more on today’s action. In other news, this portfolio had THREE of the best performers on Tuesday out of all the ZU services. Those winners were Dave & Buster's Entertainment (PLAY, +9.8%), Dillard's (DDS, +6.4%) and Signet Jewelers (SIG, +4.7%). DDS has also jumped nearly 64% in the past 30 days. Stocks Under $10: With the economy opening back up, Brian thinks the outsourcing space will keep improving as companies have trouble enticing staff back to work. Therefore, the editor added business process services company Conduent (CNDT) on Tuesday. Over the past four quarters, this Zacks Rank #2 (Buy) has beaten the Zacks Consensus Estimate three times and matched once. In addition to rising earnings estimates, CNDT has a solid valuation and a good-looking chart. Brian thinks this “steady and reliable play” is poised for a surge in growth moving forward. Read the full write-up for more. Blockchain Innovators: The portfolio added eXp World Holdings (EXPI) more than a year ago on March 30, 2020, and in that time the stock has surged – wait for it – by 866%! Dave added the name because he thought it would do well during the pandemic, since it provides cloud-based real estate brokerage services. Thanks to blockchain, most of its agents were already working from home or a remote office when the shutdown began. Well, the editor was right! We mention EXPI today because it was the best performing stock of the session among all ZU names with an 11.2% advance. Zacks Short Sell List: The portfolio cashed in a double-digit winner on Tuesday along with three other names, as four positions were changed in this week's adjustment. The stocks that were short-covered today included: TAL Education (TAL, +54.6%) Callaway Golf (ELY, +2.1%) Maxar Technologies (MAXR) Shift4 Payments (FOUR)   The new buys that filled the service back up were: Bumble (BMBL) Chegg (CHGG) Las Vegas Sands (LVS) Magnite (MGNI) Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short Sell List Trader Guide. Until Next Time, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Mixed Monday with Stocks Slipping from Record Highs

Mixed Monday with Stocks Slipping from Record Highs SPECIAL ALERT: Remember, the latest episode of the Zacks Ultimate Strategy Session will be available for viewing no later than this Wednesday, August 11. Kevin Matras, David Bartosiak, Neena Mishra, CFA, FRM, and Sheraz Mian will cover the investment landscape from several angles in this informative event. Don’t miss your chance to hear: ▪ Sheraz and Neena Agree to Disagree on whether inflation worries are overblown ▪ Kevin answers your questions in Zacks Mailbag ▪ Sheraz and David choose one portfolio to give feedback for improvement ▪ And much more So be sure to mark your calendar then log on to Zacks.com and bookmark this page.                        SPECIAL ALERT #2: Last year’s IPOs surged as much as +299% within the first two months. And so far in 2021, the IPO market has been on fire and momentum doesn’t look to be slowing down. Now with record-setting amounts of cash flooding IPOs, investors who get in on the ground floor could be poised for significant gains. That’s why in our newest Special Report, 5 Hottest IPOs to Watch in 2021, Stock Strategist Madeleine Johnson breaks down 5 top companies that could soar when they go public. Log on to Zacks.com to read the report now. Excitement over the impressive jobs report waned a bit over the weekend, making the mixed Monday session a mirror image of Friday’s. Meanwhile, investors are preparing for some noteworthy inflation indicators later this week as earnings season and concerns over the delta variant continue. When last we left you, the market was celebrating a much better than expected Government Employment Situation report. To recap: the economy added 943K jobs in July, which easily beat expectations and drove the unemployment rate down to 5.4%. The end result was new records for two of the major indices, while the NASDAQ suffered a loss. But the reverse happened on Monday. The tech heavy index was the only one to finish in the green this time, as the NASDAQ rose 0.16% (or about 24 points) to 14860.18 (which is now just 35 points from a record). Meanwhile, the Dow was off 0.30% (or around 106 points) to 35,101.85 and the S&P slipped 0.09% to 4432.35. These latter two indices both reached new highs on Friday in the aftermath of the jobs report. Investors were so happy with the 943K print that they focused more on the economic recovery than the Fed reaction. Recovery stocks were on the rise, while tech took a backseat. But now we’re worrying again about the delta variant, a sooner-than-expected taper announcement and rising inflation. Fortunately, we also have a very solid earnings season that will continue this week and next. The big news over the next few days will be inflation, as the CPI is scheduled for Wednesday and the PPI is set for Thursday. These reports were both higher than expected when last reported in mid-July. The CPI rose 5.4% (vs. expectations of 5%) and the PPI was up 1% (vs expectations of 0.6%). The Fed says this rising inflation is only transitory, so these upcoming reports will be interesting. It looks like another busy week ahead... Today's Portfolio Highlights: Insider Trader: Prices for chemicals and energy have come down from recent highs, but these areas should be big winners as the economy continues to reopen. Perhaps that’s why a director at DuPont (DD) bought 5,000 shares last week on August 5. Shares of this large-cap specialty chemicals company are down 8% in the last three months. Tracey thinks this insider buy is a “strong statement” since this director didn’t buy at all in 2020 and already is given thousands of shares in awards. The editor added DD on Monday with a 10% allocation, while also selling 8x8 (EGHT) after running in place since its quarterly report. Read the full write-up for more. By the way, this portfolio had a top performer today as Aspen Group (ASPU) rose 4.5%. Counterstrike: Here’s a couple classic counterstrike plays to begin the new week. Jeremy added Groupon (GRPN), a website that specializes in daily discount deals, and The Container Store (TCS), a retailer that specializes in storage and organization products. Both of these names came off their post-earnings highs and are now right in the editor’s wheelhouse. GRPN beat by 197% in its most recent quarter and has potential to bounce after plunging almost 20 points lower. TCS is a Zacks Rank #1 (Strong Buy) that demolished earnings expectations by 300%... and then sold off before stabilizing around $11. Jeremy added GRPN with a 5% allocation and TCS with a 10% allocation. Read the full write-up for more specifics on these moves. Surprise Trader: Morgan Stanley just initiated coverage on Maxeon Solar (MAXN), a designer, manufacturer and seller of solar panels. That’s part of the reason why Dave added this name on Monday, but he’s been watching this stock for a while now and wants to get in before its next quarterly report. The company has an Earnings ESP of 8.3% for the release coming after the bell on Thursday, August 12. MAXN beat by nearly 27% last time and is expected to generate earnings and sales growth of 49.3% and 60%, respectively, next year. The editor added MAXN today with a 12.5% allocation, while also getting out of Ruth’s Hospitality (RUTH) to make room for more ideas. Read the full write-up for more. Black Box Trader: The portfolio cashed in a double-digit winner among four overall changes for this week's adjustment. The stocks that were sold today included: • Nucor Corp. (NUE, +20.5%) • Antero Resources (AR) • OneMain Holdings (OMF) • Ford (F) The new buys that filled these spots were: • CBRE Group (CBRE) • Mattel (MAT) • Option Care Health (OPCH) • Textron (TXT) Read the Black Box Trader’s Guide to learn more about this computer-driven service. Until Tomorrow, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

NASDAQ, S&P Close at New Records on Fourth Day of Gains

NASDAQ, S&P Close at New Records on Fourth Day of Gains The NASDAQ and S&P advanced for a fourth consecutive session on Tuesday despite concerns about the delta variant and potential taper talk at the virtual Jackson Hole event later this week. As a result, those two major indices finished the session with fresh record highs. The NASDAQ already set the milestone on Monday after back-to-back gains of over 1%. The tech-heavy index outperformed its counterparts yet again today with a rise of 0.52% (or about 77 points) to 15,019.80, marking a fourth straight day in the green. The S&P began Tuesday less than 1 point away from its own closing high, which it easily overcame by rising 0.15% to a new record of 4486.23. Meanwhile the Dow moved higher 0.09% (or around 30 points) to 35,366.26.    One of the big events today was the fiscal second quarter report from Best Buy (BBY), one of the last major retailers of this very encouraging earnings season. And the consumer electronics giant didn’t disappoint. Earnings per share beat the Zacks Consensus Estimate by more than 56%, while sales jumped nearly 20%. Most importantly, BBY raised its fiscal year comps view. Shares of the company surged 8.3% today. Wednesday’s reports include salesforce.com (CRM), Ulta Beauty (ULTA), DICK’S Sporting Goods (DKS) and Williams-Sonoma (WSM), among several others. The major news of the whole week, though, probably won’t come until Friday, when Fed Chair Jerome Powell makes remarks during the annual Jackson Hole Economic Symposium (which isn’t really in Jackson Hole due to the delta variant). Minutes from the July Fed meeting suggested that members were warming up to the idea of some tapering, perhaps as early as later this year. Investors will be watching for any further hints on a timeline, which could provide for a crazy end to the week.   “Because of the delta variant, markets are expected Powell to hold back on taper talk. All we can do is wait and watch how the market reacts,” said Jeremy Mullin in Counterstrike. “I am not expecting a lot of surprises from Powell, but I think the market is being complacent about how tapering might affect stocks.” Today's Portfolio Highlights: Stocks Under $10: After cutting five names last Tuesday (and another one today), this portfolio has plenty of open spots. Brian filled two of them on Tuesday by adding Babcock (BW) and Oaktree Specialty Lending (OCSL), which are both Zacks Rank #2s (Buys). BW offers energy technology and services for the nuclear, fossil and renewable power markets. Improving margins and topline growth has the editor expecting a higher stock price down the road. OCSL is a specialty finance company that has beaten earnings estimates three times in the past four quarters and matched once. Brian likes its valuation, especially when considering topline growth of 90% and increased operating margins. By the way, the portfolio also sold the underperforming Volt Information Sciences (VOLT) position today. Read the full write-up for more on all of today’s action. By the way, this portfolio had the top performer among all ZU names today as GT BioPharma (GTBP) jumped 17.2%. Counterstrike: Shares of Sonos (SONO) surged higher after the audio products company announced a “monster” quarter, which included a 258% beat and a raised guidance. Earnings estimates advanced as well and turned the stock into a Zacks Rank #1 (Strong Buy). Furthermore, a few price targets have even moved past $50, which is about 20% higher than the current level. But the stock has pulled back a bit and held steady for a while. Jeremy agrees with those raised targets and believes SONO could get past $50 moving forward, so he added the stock on Tuesday with a 12% allocation. Read the complete commentary for more specifics. Large-Cap Trader: With a week left in the month of August, John thought this was a good time for his monthly fine-tuning. He began by getting out of three “sidewinders”: Williams-Sonoma (WSM, +2.8%), ManpowerGroup (MAN, +1.3%) and Kimberly-Clark Corp. (KMB). Their lethargic action since being added suggests that forward earnings news is priced in. The editor is refocusing the portfolio in the electronics area (broadly defined) by adding the following three names: • ON Semiconductor (ON) • Flex Ltd. (FLEX) • Eaton Corp. (ETN) These names are big players in the semiconductors, electronics manufacturing services, and industrial manufacturing electronics spaces, respectively. They all have enviable Zacks Ranks, especially ON’s status as a Zacks Rank #1 (Strong Buy). They are also from top-ranked industries and recently reported double-digit EPS surprises. In fact, their average beats over the past four quarters are in the double digits as well. John added each name with a portfolio weight of 6%. Read the full write-up for a lot more specifics on these new buys, including their valuations and betas. Surprise Trader: You may remember that Ulta (ULTA) has been a part of this portfolio several times over the years... and now it is again. But this time the beauty products staple enters the service as a Zacks Rank #1 (Strong Buy) after beating expectations for four straight quarters. The last positive surprise was 113%. Ulta has a positive Earnings ESP of 17.59% for the quarter coming tomorrow after the bell, which is a good sign that it’s poised to outperform for a fifth straight quarter. Dave added ULTA on Tuesday with a 12.5% allocation, while also selling Terex (TEX) for a 9.8% return in less than a month. Read the full write-up for more. Options Trader: After trading in a confined range for much of the year, Kevin noticed that Chubb (CB) has finally broken out to the upside. He sees a great opportunity to add this property & casualty insurance and reinsurance company, especially since it’s a Zacks Rank #1 (Strong Buy) in a highly-ranked industry (top 17%). On Tuesday, the editor bought to open a January 190.00 Call in CB. Make sure to read the full write-up for a recap on this move and the whole portfolio. Zacks Short Sell List: The portfolio cashed in a double-digit winner on Tuesday as part of three changes in this week's adjustment. The stocks that were short-covered included: • JOYY Inc. (YY, +29.4%) • JD.com (JD, +7.4%) • Amazon (AMZN) The new additions that filled these spots were: • Huazhu Group (HTHT) • Canada Goose (GOOS) • The AZEK Company (AZEK) Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short Sell List Trader Guide. Have a Good Evening, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Weak Earnings Reported Across The Industry, But Investors Are Buying Into The Recovery Story

During earnings season, FreightWaves will be covering many companies across all modes, as well as shippers and retailers. Each week, we will recap the most interestin.....»»

Category: earningsSource: benzingaFeb 10th, 2020

Does impeachment matter?: Cramer"s "Mad Money" recap

Jim Cramer says the markets care less about impeachment and more about earnings, NAFTA, and the trade deal with China......»»

Category: topSource: moneycentralDec 19th, 2019

How Are Social Media Companies Doing This Quarter?

A quick recap of the earnings announcements from Snap, Twitter and Facebook. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get.....»»

Category: personnelSource: nytApr 29th, 2019

Intel Roundup: Earnings, Manufacturing Lead, Nabbing Tesla Talent

A brief recap of Intel (INTC) earnings, questions concerning its manufacturing lead and its poaching away.....»»

Category: worldSource: nytMay 4th, 2018

Wedbush Turns Bullish On Habit Restaurants Ahead Of Q2 Report

The bullish case for Habit Restaurants Inc (NASDAQ: HABT), the fast casual restaurant concept known or its fresh and made-to-order burgers and sandwiches, can now be made ahead of Wednesday's earnings report, according to Wedbush. read more.....»»

Category: blogSource: benzingaJul 30th, 2018

Trending Stocks Earnings Recap: Turtle Beach, Etsy, & Twilio | Free Lunch

Ryan McQueeney and Zacks' resident momentum guru, Dave Bartosiak, recap Monday afternoon's top earnings reports from the likes of T.....»»

Category: dealsSource: nytAug 7th, 2018

Big Bank Q3 Earnings Roundup: Citigroup, JPMorgan, Wells Fargo Get Things Started

Three bank giants reported Q3 earnings Friday morning. Here's a recap of what each bank reported. read more.....»»

Category: blogSource: benzingaOct 12th, 2018

Big Bank Q3 Earnings Roundup: Citigroup, JPMorgan, Wells Fargo Get Things Started

Three bank giants reported Q3 earnings Friday morning. Here's a recap of what each bank reported. JPMorgan JPMorgan Chase & Co. (NYSE: JPM) earned $2.34 per share in Q3 on revenue of $27.8 billion. Stree.....»»

Category: earningsSource: benzingaOct 12th, 2018

Brexit, Mixed Retail Earnings & Nvidia"s Weak Outlook Weigh on Stocks

Ryan McQueeney and Maddy Johnson recap the week's Brexit drama and major earnings results from the retail sector. The hosts also chat about Nvidia's sluggish guidance and what it could mean for tech stocks. On today&.....»»

Category: worldSource: nytNov 16th, 2018

A Massive Bank Merger & This Week"s Top Earnings News

Ryan McQueeney and Maddy Johnson discuss this week's blockbuster bank merger and recap earnings results from Alphabet, Disney, Twitter, and Chipotle. Want the latest recommendations fro.....»»

Category: dealsSource: nytFeb 8th, 2019

The Key Market Flows Behind "Yet Another Quick Selloff"

The Key Market Flows Behind "Yet Another Quick Selloff" As has been the case for much of the past 6 months, equities saw another modest selloff (-4%) around the option expiry date similar to those in recent months (2-3% selloffs in the last 3 months), albeit exacerbated this time by fears around an Evergrande default. Similar to the previous occasions, equities rebounded almost instantly as market technicals took over (as discussed in "Nomura Reveals 'The Flow To Know' As Markets Reverse From Selling To "Big Rally") with the 50DMA proving once again to be stalwart support, and are now barely 2% below record highs. Moreover, US equities have historically seen modest sell-offs of 3-5% every 2-3 months on average.  In that context, the selloff this week was fairly typical. We have yet to see a more substantive selloff (5%+) since October of last year - although we did very briefly see a 5% drawdown last Monday which however faded just as quickly - putting the duration (92nd percentile) as well as the size (93rd percentile) of this rally in the top decile. Courtesy of Deutsche Bank, here are some notable positioning indicators: The consolidated measure of equity positioning has been falling since late June (from the 97th to the 60th percentile). Both discretionary investors (72nd percentile) and systematic strategies (46th percentile) have cut exposure, with discretionary positioning now at the lowest since the post-election rally, while systematic positioning is at the lowest since May. However, there is a divergence between equity positioning for US large caps (read giga tech names), which has remained very robust, and that for others which has declined. A subset of positioning indicators specifically tracking large-caps has remained at the higher end since mid-July even as our aggregate measure has steadily moved lower. Equity inflows had been extremely strong going into the selloff, clocking in at over $50bn last week, the largest since March, and primarily benefiting US large caps. A significant proportion of last week’s huge flows then reversed over Friday (-$20bn) and Monday (-$16bn) but inflows have resumed since. Here, it's worth noting that most inflows have benefited almost exclusively large cap US funds, with mid caps hugging the flatline for the last year, and small caps barely higher. The aggregate put/call volume ratio rose sharply on Monday as equities sold off, but over the week quickly fell back again into the low range that it has been in since last June. Both put and call volumes had spiked on Monday, but have normalized quickly.  Most of the pickup in option volumes came from index and ETF options. Within single stocks, puts and calls volumes fell last week across both large and small caps. Vol Control funds, which had already cut their equity allocations (mostly large-cap) last Friday (67% to 65%), accelerated their selling on Monday (to 62%, 27th percentile), but quickly started buying back over the next three days, and their allocations are now back to 67% (43rd percentile). A spike and subsequent reversal in implied vol was the primary driver of the round Meanwhile, Risk Parity funds trimmed their equity allocations only marginally during this week Curiously, large cap trend signals remain strong and small cap signals actually improved slightly during the week. One final observation: with Q3 earnings season coming on deck, some 25% of companies have now entered their buyback blackout period. This will peak in 2-3 weeks when 80% of companies will be in their blackout period. The full DB report with much more details can be found in the usual place for pro subs. Tyler Durden Sun, 09/26/2021 - 14:30.....»»

Category: dealsSource: nyt11 hr. 54 min. ago

Making Meals From Mealworms Is ‘Part of the Answer’ to the Climate Crisis, the CEO of Ynsect Says

Ynsect’s powdered protein is currently used in pet food, fish meal and even as an ingredient in burger patties and pasta in parts of Europe (To receive weekly emails of conversations with the world’s top CEOs and business decisionmakers, click here.)   Global food production accounts for one-third of all greenhouse-gas emissions, according to a comprehensive study published this year in the journal Nature Food that looked at every aspect of food production from transportation to packaging. Meat production alone makes up nearly 60% of that total. The study underscores the growing consensus that in order to stave off the worst impacts of climate change, the world needs a dramatic rethinking of how food is produced and consumed. Especially since the U.N. estimates that food production will have to increase by 70% by 2050 to feed the world’s growing population. [time-brightcove not-tgx=”true”] Increasingly, companies and scientists are viewing insects as an environmentally sustainable alternative source of protein. Crickets, grasshoppers and beetles are already commercially produced and processed for human and animal consumption. Ynsect, a 10-year-old French company, is focused on mealworms, the larval stage of beetles. One big advantage of mealworms, aside from their neutral taste and high degree of digestibility, is that they don’t fly or jump, which means it requires a lot less space to grow and process them compared with more mobile insects. One of Europe’s best-funded insect-farming companies (it has raised over $400 million), Ynsect currently has one highly automated vertical farm in France and plans to open a far larger production facility in the country next year. The company is also scouting locations for a major facility in the U.S. and plans to announce a Midwest location before the end of the year. It eventually plans to have farms across the world. Ynsect’s powdered protein is currently used in pet food, fish meal for commercial fish farms and other animal feed. It’s in limited consumer products in parts of Europe, including as an ingredient in burger patties and pasta. It will soon enter the sports-drink and protein-bar markets. Ynsect co-founder and CEO Antoine Hubert recently joined TIME for a video conversation on how the cultivation of insects can help mitigate the impacts of climate change and take pressure off threats to the earth’s biodiversity. (This interview has been condensed and edited for clarity.)   Was it always the humble mealworm? When we started the company, we tested several species, from beetles to flies to crickets, locusts and others. Finally, we ended up with mealworms. We worked with a small farmer who had 20 years experience in small-scale insect farming, and it was his opinion that it was the best. We also found that mealworms were super-good for great big vertical farms and able to deliver large volumes that are required for animal feed, pet food or human food—thousands of tons, not a few kilos per day. So scalability was a big factor in anointing mealworms? Exactly. This is about a product and the technology. It is not flying. Butterflies or crickets, they need a lot of space to grow. Mealworms really love to be together. What does the insect version of a vertical farm look like? It’s an automated warehouse, very similar to an Amazon warehouse, where instead of storing stuff, we are storing live insects. There is a climate-control system which is highly complex to maintain temperature and moisture from zero to 30 meters high. All operations are automated. Anything that you do on [an insect] farm is done with robots. Why is developing an alternative protein source with a smaller carbon footprint so essential, and what role is your company playing across the food chain? The two main issues the earth is facing today are climate change and biodiversity collapse. We are not far from reaching tipping points where then things get worse and it cascades and waterfalls—you can’t stop it anymore. Time is very critical. There is a huge need to reduce our consumption of beef. We should keep beef consumption, grazing, on a smaller scale with high levels of fresh products. But everything that is a processed meat should be 100% replaced at some point by alternatives. Insects will be a part of the answer. Another way is to move from existing meat to other meats with no methane emissions: chicken and fish. We help to change the way we feed chicken and fish. And our leftover insect manure is a great organic fertilizer that can fully replace chemical fertilizers. How is fish-meal production, catching fish to be ground up into fish meal to feed farmed fish, harming biodiversity? It’s about overfishing. The largest fisheries today are used for fish-meal production. One in four boats, about 25% of total fish vessels, are used to process fish meal which is going to feed animals. It’s the most overfished stock. We need to reduce the fishing of the stock to be below the renewable threshold. They say in the fishing industry, take only the interest, not your stock. The demand for fish, especially shrimp and salmon, is growing a lot faster than other meats, and they are super-dependent on fish meal. And this is why big companies are looking for alternatives. And mealworms have a fairly neutral taste? We have different products, but the main one is pretty neutral. We also have a very light color, which is exactly what companies are looking at. They don’t want a very strong taste when they do burgers or energy bars or energy drinks. Otherwise you will end up with a highly smelly product, which is something that is not desirable for consumers, which is often what small-scale crickets companies are doing … big smell and big taste, which makes it very difficult to use the product in final food products. Our process helps us to avoid smells.     Note to readers: I want to end this week’s column with a note of thanks to the readers of The Leadership Brief. Starting next week, we at TIME are embarking on a new approach that we are excited to share with you. I will continue to contribute, but going forward, the weekly newsletter will be produced by a team led by TIME’s executive editor, John Simons (John conducted the interview with Apple CEO Tim Cook last week). I want to thank all of you for your loyal readership and offer a particular expression of gratitude to those of you who have taken the time to write and share your thoughts with me. I have loved hearing from you each week and have always benefited from your insights. Eben Shapiro.....»»

Category: topSource: time17 hr. 53 min. ago