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TSMC orders to buoy GPTC, Kinik in 2022

With TSMC ramping up its sub-5nm process and advanced packaging manufacturing capacities, Grand Process Technology (GPTC) and Kinik are both seen the visibility of orders from the chipmaker extended beyond 2022, according to market sources......»»

Category: topSource: digitimesJun 24th, 2022

Apacer upbeat about 2H22 sales

Memory module maker Apacer Technology expects an influx of short lead-time orders for mainly industrial and server devices to buoy its revenue in the second half of 2022, which may outperform that in the first half, according to company president Chang Chia-kun......»»

Category: topSource: digitimesMay 27th, 2022

Russia must choose between saving its economy or funding its invasion, Yellen says

Wally Adeyemo, the deputy Treasury secretary, said Tuesday that the next sanctions from the US and allies aim to starve the Russian military of cash. Treasury Secretary Janet Yellen.Al Drago/Associated Press Russia has to choose between saving its economy and continuing its invasion, Tres. Sec. Janet Yellen said. Yellen's deputy indicated on Tuesday the next sanctions will focus on starving the Russian military of cash. Yellen also hinted that countries ignoring sanctions could face retaliation from the West. The West's next set of sanctions seeks to force Russian President Vladimir Putin into a difficult choice: Keep spending on his invasion of Ukraine or shift cash to buoy Russia's struggling economy.That was the strategy laid out by Treasury Secretary Janet Yellen in Wednesday remarks at the Atlantic Council. Russia's invasion "predestined" its removal from the global financial system, and the West must stay united to keep economic pressure on Putin, Yellen said."The Kremlin will be forced to choose between propping up its economy and funding the continuation of Putin's brutal war," she added.Yellen's deputy, Wally Adeyemo, detailed similar aims in a Tuesday interview with the Associated Press. The deputy Treasury secretary said the next punitive measures can starve the Russian "war machine" of much-needed funding and shift Russia's focus from the invasion toward keeping its own economy intact.The US and allies are eyeing measures targeting supply chains critical to Russia's armed forces, as well as "military devices" built to "project power" beyond Ukraine, Adeyemo told AP.The Russian economy has already been severely dented by sanctions announced over the past six weeks. While the ruble has recovered much of the value lost through March, it remains lower than before the invasion. Sanctions targeting Russia's financial sector have effectively frozen all business with the West, as well as Russian elites' own dealings.The World Bank forecast in a Sunday report that Russia has already fallen into a deep recession, and that the country's economy will shrink by 11.2% by the end of 2022.Yellen also issued a stern warning to countries that haven't yet sided against Russia. India has continued to buy Russian oil, while China hasn't reneged on its own long-lasting contracts to do the same. Those sales have propped up the Russian government's income, with one Ukrainian government official claiming on Sunday that Russia is raking in $1 billion a day from its oil trade alone.Countries that are "sitting on the fence" risk undermining the international order, world peace, and economic prosperity, Yellen said Wednesday before hinting that such ambivalence won't go unnoticed."The unified coalition of sanctioning countries will not be indifferent to actions that undermine the sanctions we've put in place," she said.China is the biggest economic power that has yet to take a side in the conflict. While the country's government hasn't explicitly severed ties with Russia, it hasn't backed its invasion either, and Reuters reported on April 6 that China's oil refiners have backed off from making new orders of Russian crude.China's wavering places the country in a "pivotal role" as the West unites against Russia, Yellen said. It will be harder to separate economic issues from national security as the invasion pushes forward, and the world's attitude toward China depends on how the country reacts to Russia, the West's sanctions, and the Ukraine conflict, she added."China has recently affirmed a special relationship with Russia," Yellen said. "I fervently hope that China will make something positive of this relationship and help to end this war."Read the original article on Business Insider.....»»

Category: dealsSource: nytApr 13th, 2022

3 Reasons to Retain Accuray (ARAY) Stock in Your Portfolio

Investors continue to be optimistic about Accuray (ARAY) owing to its solid global reach. Accuray Incorporated ARAY has been gaining on the back of its solid global reach. A solid second-quarter fiscal 2022 performance, along with the adoption of its products, is expected to contribute further. However, overdependence on technologies and reimbursement uncertainties persist.Over the past year, this Zacks Rank #3 (Hold) stock has lost 33.4% against 4.6% growth of the industry and 13.2% rise of the S&P 500 composite.The renowned radiation oncology company has a market capitalization of $306.9 million. Accuray projects 150% growth for fiscal 2023, in which it expects to maintain its strong performance. The company surpassed estimates in one of the trailing four quarters, missed the same in two and broke even in the other, the average earnings surprise being -33.3%.Image Source: Zacks Investment ResearchLet’s delve deeper.Global Reach: Accuray has been fortifying its foothold globally, thus raising our optimism. During the fiscal 2022 second-quarter earnings call, the company confirmed that its strong order numbers continued in Japan, with 23% year-over-year growth in the quarter. In the same quarter, the Americas region delivered its highest quarterly revenues in Accuray's history and finished the first half of fiscal 2022 with 27% year-over-year order growth.The EIMEA region, Accuray’s largest order region, delivered 3% growth in the fiscal second quarter. The APAC region posted solid results, with China driving 83% of the quarter’s year-over-year growth in orders.Product Adoption: We are upbeat about robust adoption of Accuray’s products. In March, the CARTI medical care team in Little Rock, AR used the Accuray CyberKnife S7 System for the first time to treat patients in the state.In February, Accuray announced that the National Institute for Health and Care Excellence had endorsed the use of radiosurgery for trigeminal neuralgia. The same month, the company announced that the Royal Brisbane and Women's Hospital in Queensland, Australia had selected two Radixact Systems with ClearRT helical fan-beam kVCT imaging and Synchrony artificial intelligence-driven four-dimensional dynamic delivery technology to expand access to potentially life-saving radiotherapy treatments to more patients.Strong Q2 Results: Accuray’s robust second-quarter fiscal 2022 revenues buoy optimism. The company registered upticks in both its overall top line and Products revenues. Strong demand for the ClearRT Helical kVCT Imaging for the Radixact System is impressive. Accuray’s restructuring initiatives also raise optimism. Strength in the company’s TomoTherapy and CyberKnife platforms is encouraging.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 adequate coverage and reimbursement for procedures that are performed with Accuray’s products.Estimate TrendAccuray is witnessing a negative estimate revision trend for fiscal 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved from 7 cents per share to a loss of 14 cents.The Zacks Consensus Estimate for the company’s third-quarter fiscal 2022 revenues is pegged at $99.5 million, suggesting a 2.9% decline from the year-ago quarter’s reported number.Key PicksA few stocks from the broader medical space that investors can consider are AMN Healthcare Services, Inc. AMN, IDEXX Laboratories, Inc. IDXX and Henry Schein, Inc. HSIC.AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 20%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.AMN Healthcare has gained 41.3% against the industry’s 54.4% fall over the past year.IDEXX, carrying a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 13%. IDXX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 18.6%.IDEXX has gained 12.5% compared with the industry’s 4.6% growth over the past year.Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 25.5%. It currently has a Zacks Rank #2.Henry Schein has gained 26.9% compared with the industry’s 9.7% growth over the past year. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Accuray Incorporated (ARAY): Free Stock Analysis Report Henry Schein, Inc. (HSIC): Free Stock Analysis Report IDEXX Laboratories, Inc. (IDXX): 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: zacksApr 1st, 2022

Top Analyst Reports for Apple, P & G, Chevron & Others

Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), The Procter & Gamble Company (PG), and Chevron Corporation (CVX). Tuesday, March 29, 2022The 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), The Procter & Gamble Company (PG), and Chevron Corporation (CVX). 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 >>>Apple shares have gained +47.3% over the past year against the +16% gain for the S&P 500 index. The Zacks analyst sees Apple continuing to benefit from momentum in Services and robust performance from iPhone, Mac, Wearables and an expanding App Store ecosystem. Availability of new Mac Studio, new iPad Air and the most affordable iPhone SE. Apple TV+ is gaining recognition with shows like Ted Lasso winning Emmy and CODA wining Academy Award for Best Picture.However, Apple did not provide revenue guidance for the second quarter of fiscal 2022, given the uncertainty around the impact of the pandemic. Nevertheless, Apple expects to achieve solid year-over-year revenue growth and set a second quarter revenue record despite significant supply constraints, which it estimates to be less than the fiscal first quarter.(You can read the full research report on Apple here >>>)Shares of Procter & Gamble have outperformed the Zacks Soap and Cleaning Materials industry over the past year (+16.4% vs. +4.5%) on the back of impressive operational performance in an otherwise tough operating envoronment. This is reflected in the company's strong recent quarterly results that show improved productivity amid cost headwinds, along with the rising demand for cleaning products due to the resurgence of COVID-19 cases. Management lifted its fiscal 2022 view.The company has witnessed SG&A expense leverage, owing to savings from overhead and marketing expenses, and cost leverage gains due to higher sales and real estate. However, unfavorable mix, commodity cost inflation, increase in freight costs, product and packaging investments and other impacts hurt margins. It expects higher commodity and freight costs to persist in fiscal 2022.(You can read the full research report on Procter & Gamble here >>>)Shares of Chevron have lost some ground lately in 'solidarity' with the recent pullback in crude oil prices, but the stock remains a standout performer relative to the Zacks Oil and Gas - Integrated - International industry over the past year (+64.8% vs. +49.9%). In the accompanying research report linked below, the Zacks analyst describes the company as considered one of the best-placed global integrated oil firms to achieve sustainable production ramp-up. America’s No. 2 energy company’s existing project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin.However, Chevron was not immune to the commodity price crash of 2020, forcing it to cut spending substantially. The company’s high oil price sensitivity is a concern too. Moreover, the supermajor’s 10-year reserve replacement ratio of 100% is indicative of its inability to replace the amount of oil and gas produced. Finally, Chevron has been a laggard to jump into the net-zero bandwagon.(You can read the full research report on Chevron here >>>)Other noteworthy reports we are featuring today include Novo Nordisk A/S (NVO), NextEra Energy, Inc. (NEE) and Canadian Natural Resources Limited (CNQ).Sheraz Mian Director of ResearchNote: 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>>>    Today's Must ReadRobust Portfolio, Services Strength to Benefit Apple (AAPL)High Demand & Productivity Plan Drives P&G's (PG) GrowthChevron (CVX) to Gain from Massive Permian AcreageFeatured ReportsNovo Nordisk's (NVO) Diabetes Drugs Aid Growth Amid RivalryPer the Zacks analyst, Novo Nordisk has a strong presence in the Diabetes Care market which is driving growth. However, patent expiry on some of the products remains a major concern for the companySteady Investment & Renewable Focus Aid NextEra Energy (NEE)Per the Zacks analyst, NextEra's planned capital investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.Supply-chain Woes Ail Norfolk Southern (NSC), Dividends AidThe Zacks analyst is impressed with the company's efforts to reward its shareholders. However, disruption in operations due to the supply-chain crisis is concerningSurging Orders to Drive Fortive (FTV) Amid High LeverageWhile strong customer demand and increasing orders for hardware offerings are likely to buoy Fortive's top line, the Zacks analyst remains concerned of the firm's highly leveraged balance sheet. Robust Revenues & Cash Flows Aid American Express (AXP)Per the Zacks analyst, rebounding economic recovery and increased consumer spending are likely to contribute to the top line. Also, robust cash flows have enabled investments in business.Inorganic Growth Aids Citizens Financial (CFG), High Costs AilPer the Zacks analyst, Citizens Financial's inorganic growth moves will expand its product capabilities and geographic reach. However, rising costs and concentrated portfolio risk are major headwinds.High COVID Testing Volumes Aid LabCorp (LH), Forex Woes AilThe Zacks analyst is encouraged by LabCorp's greater-than-anticipated COVID-19 testing volumes. Howeve, unfavorable currency movements continue to hamper growth.New UpgradesDiverse Production Mix Aids Canadian Natural (CNQ)The Zacks analyst believes that Canadian Natural's diverse production mix of synthetic oil, heavy crude oil, natural gas and light crude oil facilitates long-term value and reduces risk profile.PBF Energy (PBF) to Gain From Renewable Diesel Fuel ProjectPer the Zacks analyst, PBF Energy is expected to gain from its renewable fuel production facility in the Chalmette refinery, contributing to growth of sustainable biofuels.Nu Skin (NUS) Likely to Gain on Impressive Product LaunchesPer the Zacks analyst, Nu Skin is gaining from its solid focus on innovations. Management is on track to launch Beauty Focus Collagen+ and ageLOC Meta along with two connected devices in 2022.New DowngradesPost Holdings' (POST) Performance Hurt by Cost InflationPer the Zacks analyst, Post Holdings is grappling with escalated costs. Raw material and freight inflation along with higher manufacturing costs hurt its fiscal first-quarter performance.Higher Production Costs Ail Agnico Eagle Mines (AEM)The Zacks analyst is concerned that higher costs of consumables and supplies will have an unfavorable impact on the company's production costs and weigh on its bottom line. Adtalem's (ATGE) Lower Enrollment and Higher Costs HurtPer the Zacks analyst, low enrollment of new and total students, COVID-related headwinds, higher cost of educational and student services as well as administrative expense have been hurting Adtalem. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free.Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How To Profit From Trillions On Spending For Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report Novo Nordisk AS (NVO): Free Stock Analysis Report Procter & Gamble Company The (PG): Free Stock Analysis Report Canadian Natural Resources Limited (CNQ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksMar 30th, 2022

Highlights of the day: TSMC expects strong demand to continue in 1Q22

Robust chip demand for HPC device applications, as well as demand for automotive and smartphone chips, will buoy TSMC's sales performance during the quarter. TSMC expects its first-quarter 2022 sales to grow 7.4% sequentially. TSMC house reportedly has plans to dedicate fab facilities to making 3nm chips for Intel. In China, semiconductor backend services providers plan to cut prices for MCU packaging in the first half of 2022 in order to boost orders from clients......»»

Category: topSource: digitimesJan 13th, 2022

Highlights of the day: Rising costs may dent TSMC profit in 2022

Strong demand for foundry services is expected to boost TSMC's 2022 sales, but its profits for this year may be dented by rising materials costs. Inventec saw notebook shipments drop in December, but strong server shipments still managed to buoy its overall sales for the month. Distributors of ICs and materials remain upbeat about server demand in 2022, expecting robust orders from US cloud service providers......»»

Category: topSource: digitimesJan 13th, 2022

Here"s Why You Should Retain Abiomed (ABMD) Stock for Now

Investors continue to be optimistic about Abiomed (ABMD) due to its Impella product line strength. Abiomed, Inc. ABMD is well poised for growth in the coming quarters, backed by strength in its Impella product line. A robust second-quarter fiscal 2022 performance, along with the company’s solid global foothold, is expected to contribute further. Stiff competition and third-party reimbursement concerns persist.Over the past year, this Zacks Rank #3 (Hold) stock has gained 10.6% compared with 3.9% growth of the industry and 23.4% rise of the S&P 500.The renowned global provider of medical products designed to assist or replace the pumping function of the failing heart has a market capitalization of $13.68 billion. The company projects 20% growth for the next five years and expects to maintain its strong performance. It has delivered an earnings surprise of 5.84% for the past four quarters, on average.Image Source: Zacks Investment ResearchLet’s delve deeper.Strength in Impella: Abiomed’s flagship product line, Impella, has continued to be a growth driver, which raises our optimism. Abiomed expanded its Breethe OXY-1 System to a total of seven U.S. sites and has treated 53 patients, thus concluding Phase II of its pilot site product launch.Further, the Impella Connect software has come live at more than 85% of the company’s U.S. sites, allowing for most U.S. patients on support to be monitored in the cloud by the field. Management also confirmed during the fiscal 2022 second-quarter earnings that the Impella 5.0 has been placed in 666 sites, the Impella RP is in 634 sites and the Impella 5.5 with SmartAssist is now available in 306 sites.Solid Global Foothold: The Impella support has already been integrated into hospitals throughout Germany and Japan. It has been used to treat patients in Hong Kong, Australia, Singapore, Israel, and most recently, in India. European revenues surged year over year on the back of higher patient utilization, sales mix and timing of orders. Revenues from the Japan business were up year over year on the back of a surge in patient utilization. Also, the company’s Impella Connect software is currently live at 14% of the European sites.Strong Q2 Results: Abiomed’s solid second-quarter fiscal 2022 earnings buoy optimism. The company saw strength in its global Impella revenues, which is impressive. Abiomed’s receipt of FDA clearances for its Impella products looks encouraging. Abiomed’s June buyout of the remaining interest of preCARDIA also raises our optimism on the stock. Expansion of gross margin bodes well for the stock.DownsidesForex Woes: Abiomed depends on third-party reimbursement to its customers for market acceptance of its products. Sales of medical devices largely depend on the reimbursement of patients’ medical expenses by government healthcare programs and private health insurers. Without government reimbursement or third-party insurers’ payments for patient care, the market for Abiomed’s products will be limited.Stiff Competition: Abiomed faces competition from other companies offering circulatory care products. The market where it operates is intense and subject to rapid technological change, and evolving industry requirements and standards. Abiomed competes with companies that have greater financial, product development, sales and marketing resources, and experience. The company’s ability to compete effectively depends on distinguishing itself and its products from its competitors and their products.Estimate TrendAbiomed is witnessing a negative estimate revision trend for 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 3.2% south to $4.23.The Zacks Consensus Estimate for the company’s third-quarter fiscal 2022 revenues is pegged at $251.1 million, suggesting an 8.4% improvement from the year-ago quarter’s reported number.Key PicksSome better-ranked stocks in the broader medical space are Chemed Corporation CHE, Thermo Fisher Scientific Inc. TMO and AMN Healthcare Services AMN.Chemed, carrying a Zacks Rank #2 (Buy), reported third-quarter 2021 adjusted earnings per share (EPS) of $5.06, which beat the Zacks Consensus Estimate by 13.5%. Revenues of $538.7 million outpaced the consensus mark by 1.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Chemed has an estimated long-term growth rate of 7.7%. The company surpassed estimates in the trailing four quarters, the average surprise being 5.59%.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%. 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 Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report ABIOMED, Inc. (ABMD): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report Chemed Corporation (CHE): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksDec 6th, 2021

Hill-Rom (HRC) New LT Strategy Aids, Y/Y Comparisons Ail

Hill-Rom's (HRC) newly initiated long-term growth strategies through fiscal 2022, focusing on all four strategic priorities, look attractive at this moment. Hill-Rom Holdings HRC is witnessing growth in domestic revenues, driven by the consistent performance of Patient Support Systems (PSS) and Front Line Care. However, general domestic and global economic headwinds, unfavorable foreign exchange, and competitive landscape are major downsides. The stock currently carries a Zacks Rank #3 (Hold).Over the past year, Hill-Rom has outperformed its industry. The stock has gained 78.2% compared with the industry's 12.6% growth.Hill-Rom exited third-quarter fiscal 2021 with better-than-expected earnings and revenues. Excluding the COVID headwind, revenues advanced 10% at CER, fueled by stronger-than-expected performance across the vast majority of the portfolio. The year-over-year growth in Front Line Care (led by accelerated recovery across key Welch Allyn products) and Surgical Solutions (led by growth in demand for operating room tables) segments contributed to the top-line growth. The company’s recent launches including the Helion Integrated Surgical System for the United States market buoy optimism. It raised the financial guidance for 2021, indicating growth in revenues and earnings, which is encouraging.Hill-Rom’s newly-initiated long-term (LT) growth strategies through fiscal 2022, focusing on all four strategic priorities, look attractive at this moment.In terms of the first priority, to accelerate top-line growth with innovative products and solutions, during the second quarter of 2021, the company launched seven products and is on track to launch 10 new ones in the latter part of 2021. The product launches are projected to result in the contribution of growth annually over the next 2-3 years. Also, the company anticipates that the top line will have about 100 basis points of benefit from FX on revenues for the full year.HillRom Holdings, Inc. Price HillRom Holdings, Inc. price | HillRom Holdings, Inc. QuoteGoing by the second key objective of international expansion and driving penetration in emerging markets, Hill-Rom expects emerging market revenue growth in mid-single-digits, lower than 15% EPS growth over the next three years.The third priority area includes strategic M&As to strengthen its portfolio. According to the company, the acquisitions of EXL and Voalte created a durable new source of growth over a multi-year period. The company also expects future M&As to drive double-digit EPS growth and mid-single-digit top-line growth. To fortify its ground in the digital health space, Hill-Rom acquired the contact-free continuous monitoring technology from EarlySense in February.The last key strategic priority area includes operational execution and strong financial performance. As part of the three-year growth plan, the company projects core revenue growth of approximately 5%, double-digit earnings growth and significant cash flow generation.At the end of the third quarter of fiscal 2021, the company reiterated its commitment toward this previously disclosed long-term growth target.On the flip side, Hill-Rom’s revenues in the fiscal third quarter were down 6.5% year over year (down 8.8% at constant exchange rate or CER). The year-over-year decline can be attributed to the challenging comparison with third-quarter fiscal 2020 figures that benefited from a one-time surge in COVID-related demand. The Patient Support Systems business had generated record revenue growth of 21% in the year-ago quarter. The business benefited from the global surge in demand for ICU and Med-Surg bed systems, as hospitals around the world expanded capacity in the early phase of the COVID outbreak. This unfavorable comparison translated into a PSS headwind of more than $105 million, resulting in Q3 revenue decline of 18% when compared to the prior year. In Front Line Care, third-quarter fiscal 2021 revenues were dull, impacted by the year-ago ventilator stockpile orders of approximately $25 million.Overall, in the third quarter of fiscal 2020, the company had benefited from one-time COVID-related demand, generating approximately $130 million in revenues and adjusted earnings of 60 cents per share. With this challenging comparison, the reported quarter revenues declined significantly.This apart, escalating costs and expenses are dragging down the margins. In the reported quarter, gross margin contracted 111 basis points (bps) to 52.2% on a 4.5% rise in the cost of net revenues. Selling, general and administrative expenses rose 6.7% while research and development expenses increased 5.5%. Adjusted operating margin contracted 541 bps year over year to 17%.Key PicksA few better-ranked stocks from the broader medical space are Alcon Inc ALC, McKesson Corporation MCK and Biolase, Inc. BIOL, each carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.Alcon has an estimated long-term earnings growth rate of 18%.McKesson has an estimated long-term earnings growth rate of 8%.Biolase has a projected long-term earnings growth rate of 15%. Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 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 McKesson Corporation (MCK): Free Stock Analysis Report ALCON INC (ALC): Free Stock Analysis Report Biolase, Inc. (BIOL): Free Stock Analysis Report HillRom Holdings, Inc. (HRC): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksOct 6th, 2021

Here"s Why You Should Retain CVS Health (CVS) Stock For Now

Investors are optimistic about CVS Health (CVS) on growth in the company's specialty digital solutions and a bullish 2021 outlook. CVS Health Corporation CVS is well poised for growth on continued improvement in its specialty digital solutions. Moreover, better-than-expected results in the second quarter of 2021 and bullish full-year outlook buoy optimism. Yet, poor macroeconomic conditions and stiff competition remain concerns.Over the past year, the Zacks Rank #3 (Hold) stock has gained 46.8% compared with the industry’s 43.1% growth and the S&P 500’s 32% rise.The pharmacy innovation company with integrated offerings across the entire spectrum of pharmacy care has a market capitalization of $111.98 billion. The company projects 6.4% growth for the next five years and expects to maintain strong segmental performance. The company surpassed estimates in the trailing four quarters, the average surprise being 16.06%.Riding on current business growth and bullish near-term prospects, the company is worth holding on to for now.Key Growth DriversQ2 Upsides: CVS Health's second-quarter earnings and revenues surpassed the Zacks Consensus Estimate. Revenues across all the three operating segments improved in the quarter. Within pharmacy services, growth outperformed the company’s expectations, delivering 9.8% revenue growth and robust operating income growth. Specialty pharmacy revenues rose 8.9% year over year. The company added nearly 1 million new integrated pharmacy and medical members through the 2021 and 2022 selling seasons alone. Within healthcare benefits, results were strongly driven by growth in government business. While the medical benefit ratio of 84.1% was modestly above expectations due to COVID-related costs, underlying non-COVID costs emerged favorably.COVID-19 Crisis Drives Digital Growth: CVS Health’s specialty digital solutions for patients saw a 25% CAGR over the past two years and since the start of the pandemic, the company has been seeing a significant part of its specialty orders being placed digitally. According to the company’s second-quarter update, it regularly serves more than 35 million unique digital customers across CVS Health assets. In the second quarter, the company saw more than 37% of specialty prescriptions initiated digitally from the 85% of pharmacy specialty members who have opted into the CVS Health digital program. CVS Health is expanding access to care through digital and virtual channels. As a major step toward adapting digital health, the company recently announced the launch of CVS Health Ventures fund that gives insight into new digital health innovations.Image Source: Zacks Investment ResearchBullish Guidance: CVS Health raised its 2021 adjusted earnings per share (EPS) guidance. Adjusted EPS is expected in the band of $7.70-$7.80 (compared with the earlier $7.56-$7.68). Full-year operating cash flow projection has been raised to the range of $12.5-$13 billion ($12-$12.50 billion).DownsidesOn the flip side, some factors have been deterring the stock’s rally of late.Poor Macroeconomic Conditions: Although prescriptions and related health care service providers like CVS stay out of general macro-economic turmoil, the recent debt crisis and sluggish economic conditions in the United States could impact consumers’ purchasing power. This may also influence preferences and spending patterns and result in low prescription utilization.Competitive Landscape: Despite significant new client wins in a strong selling season, intense competition and harsh industry conditions are major impediments. Major competitors such as Walgreens, Target and Wal-Mart are expanding their pharmacy businesses.Estimate TrendsCVS Health is witnessing a positive estimate revision trend for the current year. Over the past 90 days, the Zacks Consensus Estimate for its earnings has moved 2.5% north to $7.84.The Zacks Consensus Estimate for its third-quarter 2021 revenues is pegged at $70.23 billion, suggesting 4.7% growth from the year-ago reported number.Key PicksA few better-ranked stocks from the broader medical space are Envista Holdings Corporation NVST, BellRing Brands, Inc. BRBR and Henry Schein, Inc. HSIC, each carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.Envista Holdings has an estimated long-term earnings growth rate of 27%.BellRing Brands has an expected long-term earnings growth rate of 29%.Henry Schein has a projected long-term earnings growth rate of 14%. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. You know this company from its past glory days, but few would expect that it's poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks' Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Henry Schein, Inc. (HSIC): Free Stock Analysis Report CVS Health Corporation (CVS): Free Stock Analysis Report Envista Holdings Corporation (NVST): Free Stock Analysis Report BellRing Brands, Inc. (BRBR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksOct 1st, 2021

Elon Musk said working from home during the pandemic "tricked" people into thinking they don"t need to work hard. He"s dead wrong, economists say.

Insider spoke to three economists who said a shift toward remote work has not damaged worker productivity — and may have even improved it. Elon Musk at the 2022 Met Gala.Andrew Kelly/Reuters Elon Musk said COVID-19 "tricked people into thinking that you don't actually need to work hard." Working from home didn't make workers less productive, three economists told Insider. The only constraint on productivity was when workers had children at home they needed to look after. Elon Musk is not a fan of remote work. The Tesla CEO issued an ultimatum to Tesla staff on May 31: return to the office full-time or find work elsewhere.Tesla's return-to-office drive appears to be in full swing now. Insider's Grace Kay reported Tesla has begun tracking workers using their badges, sending automated emails to workers who are absent from the office.The Information reported Tesla's office return has been hampered by a lack of physical space, with some workers struggling to find a desk.So why is Musk so determined to get everyone back in the office?The Tesla billionaire has made it clear he believes remote work allows people to avoid hard work.When asked on Twitter how he would respond to people who might think in-office work is antiquated, the Tesla billionaire replied: "They should pretend to work somewhere else."Musk also tweeted in May: "All the Covid stay-at-home stuff has tricked people into thinking that you don't actually need to work hard."Musk, who railed against lockdown mandates and defied shelter-in-place orders to send workers back to his California Tesla factory in May 2020, might have the wrong idea about remote work.Insider spoke to three economists, all of whom said remote work during the pandemic did not damage worker productivity."Most of the evidence shows that productivity has increased while people stayed at home," Natacha Postel-Vinay, an economic and financial historian at the London School of Economics, told Insider."People spent less time commuting so could use some of that time to work, and they also got to spend more time with their family and sleeping, which meant they were happier and ended up more productive," she added.Musk did not reply when contacted by Insider.Data shared with Bloomberg in February 2021 by VPN provider NordVPN Teams suggested that in many economies, working from home meant people worked longer hours.Albrecht Ritschl, an professor of economic history, also said cutting out commuting was a bonus to worker productivity, and added that working from home led to fewer hours spent in "pointless meetings.""Time spent at the office is not the same thing as working hard," Ritschl said.Almarina Gramozi, a lecturer in economics at King's College London, said the largest surveys of workers in the US and the UK found workers were at least as productive at home as in the office — although she said a similar study in Japan found workers did report lower productivity working from home.All three experts said productivity occasionally dipped in some cases, but not because people were shirking.People with children at home during the pandemic often had to split their attention between work and childcare, leading to a decrease in productivity, Postel-Vinay and Ritschl said.Gramozi also added productivity isn't just down to individual employees."Productivity levels depend substantially on the support that employers offer, technology adoption, and on the type of work that would allow it to be easily conducted remotely," she told Insider.Read the original article on Business Insider.....»»

Category: topSource: businessinsider2 hr. 24 min. ago

IPC maker Getac expects revenue growth in 2022

Rugged PC maker Getac remains cautiously optimistic about performance in the second half of 2022, owing to the implementation of government budgets and pull-in orders from channel customers. Although the overall PC market has been met with headwinds, shipments of Getac's rugged computers have remained relatively stable......»»

Category: topSource: digitimes9 hr. 56 min. ago

Donald Trump is no longer in contempt of court in New York — but AG Letitia James still holds his $110,000 fine

The former president has been held in contempt since April for failing to turn over personal business documents to the New York Attorney General. Donald Trump speaking at the NRA convention in Houston, TX, on May 27, 2022. New York Attorney General Letitia James, right, speaks in Washington, DC on Nov. 12, 2019.Left, Brandon Bell/Getty Images. Right, Chip Somodevilla/Getty Images A Manhattan judge on Wednesday lifted the costly contempt-of-court order he'd imposed on Donald Trump. NY AG Letitia James' lawyers agreed he complied with court orders relating to his personal business files.  James still only has 10 of Trump's files. She also has his check for $110,000 in court-imposed penalties.  A Manhattan judge on Wednesday lifted a costly contempt-of-court order that had threatened Donald Trump with hundreds of thousands of dollars in fines for failing to fully comply with a New York investigation into his hotel and golf resort business.Trump has been held in contempt since April, when New York Supreme Court Justice Arthur Engoron found the former president had failed to turn over personal business documents subpoenaed by New York Attorney General Letitia James — or, alternately, to explain why so few documents had been turned over.The contempt finding came with a $10,000-a-day fine that rose to $110,000 before the judge stopped the clock in early May.Had Trump's lawyers not turned over a set of executive affidavits explaining how Trump's documents were — or were not — preserved earlier this month, the fine could have been re-instated retroactively, potentially costing the former president some $300,000 more."It is hereby ordered that the contempt of respondent Donald J. Trump is purged," Engoron wrote in Wednesday's decision.The lifting of the contempt order amounts to a brief truce between the former president and James, who has been probing allegations of financial wrongdoing at the Trump Organization for three years.  For Trump, it not only means that his contempt fines won't get any higher, but also that what his lawyers have described as the unrealistic ordeal of complying with the AG's document subpoenas is over.  On James' side, it signals she has given up on getting any more than the 10 "custodial" files from Trump that have been turned over to her office, just a fraction of some 900,000 files turned over by the Trump Organization as a whole.She still gets to keep the $110,000 check that Trump cut to her office; it remains in escrow while Trump appeals the contempt order.The probe is winding down, James' lawyers have said, with one remaining investigative effort still looming: Donald Trump, Ivanka Trump, and Donald Trump, Jr. have all been ordered by Engoron to comply in mid-July with James' subpoenas for their testimony.Afterward, James appears on the brink of filing a massive lawsuit that may seek to put the Trump Organization out of business entirely.James has alleged that a decade's worth of Trump's statements of financial condition — annual accountings of his net worth used to secure hundreds of millions of dollars in bank loans and tax breaks — are rife with "misrepresentations."Lawyers for the Trump family and business have accused James — a Democrat who has been outspoken against the former president for years — of conducting a politically-motivated witch hunt.Read the original article on Business Insider.....»»

Category: topSource: businessinsider13 hr. 56 min. ago

Jan. 6 "Electronic Surveillance Unit" Was "Illegal", Says Rep. Gohmert; Attorney Suggests "Entrapment"

Jan. 6 'Electronic Surveillance Unit' Was "Illegal", Says Rep. Gohmert; Attorney Suggests "Entrapment" Authored by Patricia Tolson via The Epoch Times (emphasis ours), As previously reported in an exclusive June 20 report, evidence proves that “plainclothes” members of a special Electronic Surveillance Unit (ESU) were embedded among Jan. 6, 2021, protesters for the purposes of conducting video surveillance. According to experts, one believes the activity itself may have been against the law. The other contends it was done for the purpose of entrapment. Even after Capitol occupation and violence on January 6, 2021, Capitol Hill Police made no attempt to apprehend "Q Anon Man," who is on the Senate steps just a few feet from the Capitol Hill Police line. This photo was taken after the Capitol Hill Police removed protesters from inside the Senate wing of the Capitol. (Courtesy of J. Michael Waller) Against the Law? Speaking as a former prosecutor and three-term District Judge, Rep. Louie Gohmert (R-Texas) told The Epoch Times, “if you’re going to have electronic surveillance of people there has to be warrants.” As Gohmert explained, “FISA courts have granted warrants,” with “no particular clarity” and “no probable cause that a crime’s been committed or that this person engaged in a crime.” The Foreign Intelligence Surveillance Court (FISC) was established under the 1978 Foreign Intelligence Surveillance Act (FISA). “Pursuant to FISA,” the FISC website explains, “the Court entertains applications submitted by the United States Government for approval of electronic surveillance, physical search, and other investigative actions for foreign intelligence purposes.” Regarding domestic electronic surveillance, the Department of Justice (DOJ) website, “Because of the well-recognized intrusive nature of many types of electronic surveillance, especially wiretaps and ‘bugs,’ and the Fourth Amendment implications of the government’s use of these devices in the course of its investigations, the relevant statutes (and related Department of Justice guidelines) provide restrictions on the use of most electronic surveillance, including the requirement that a high-level Department official specifically approve the use of many of these types of electronic surveillance prior to an Assistant United States Attorney obtaining a court order authorizing interception.” Furthermore, “when court authorization for video surveillance is deemed necessary, it should be obtained by way of an application and order predicated on Fed. R. Crim. P. 41(b) and the All Writs Act (28 U.S.C. § 1651). The application and order should be based on an affidavit that establishes probable cause to believe that evidence of a Federal crime will be obtained by the surveillance. In addition, the affidavit should comply with certain provisions of the Federal electronic surveillance statutes.” Gohmert surmised: “When you see confirmed judges are just willing to completely abrogate the U.S. Constitution because they’re the star chamber of the secret court, and they figure nobody will ever find out what they’re doing, then you know when you see there’s an Electronic Surveillance Unit, well, something’s not right.” Gohmert’s concerns with the ESU surveillance are two-fold: Were the legally required warrants obtained? If so, how could a judge approve a warrant for surveillance before a crime has been committed and with no probable cause? “We can’t have secret units doing secret surveillance of people that have committed no crime, no probable cause of a crime. Just getting blanket surveillance,” Gohmert asserted. “We don’t know what kind of warrant they had or even if they had warrants. But to deploy Electronic Surveillance Units tells us there’s a lot more here that we need to find out about and obviously it’s not going to be uncovered at least for another six months.” But Gohmert added that “there is also more information we haven’t gotten and information that continues to leak out drip by drip.” “Like this in [article] The Epoch Times,” Gohmert noted, “pointing out how until the deployment of munitions, the crowd was peaceful. I had heard from people and seen people interviewed saying there wasn’t any violence out there. ‘We were just mulling around, chanting stuff from time to time, then they started firing on us with tear gas and provoked the crowd.’ They created chaos, and you just wonder what was going on.” The Evidence Evidence of the embedded ESU members was discovered in a Jan. 3, 2021, First Amendment Demonstrations report, issued by Chief of Police Robert Contee of the Metropolitan Police Department (MPD), Homeland Security Bureau, Special Operations Division, obtained exclusively by The Epoch Times. While it is unclear who the MPD ESU “members” were, the report stated they wore a specific “bracelet on their left wrist identifying them as MPD personnel” among the protesters. Of the 37 “Specialized Units” listed as part of the MPD, an ESU is not among them. Also in the report, revealed now for the first time, was the advisory that the Special Operations Division “will have personnel to assist with this detail and will assist with any demonstration.” Among them were Domestic Security Officers, or DSOs. Photo of bracelet worn by plainclothes members of the Metropolitan Police Department’s Electronic Surveillance Unit, embedded in the crowds on Jan. 6, 2021 to “document the actions of the demonstrators and MPD’s response to any civil disobedience or criminal activity.” (Metropolitan Police Department First Amendment Demonstrations report.) The Special Operations Division is part of the United States Secret Service, which is part of Homeland Security. Under the heading of “Special Operations Division — Deployment Requirements,” the report said “the Incident Commander” shall ensure that specific objectives were “adhered to.” Among those is the order that “Long Range Acoustical Device (LRAD) – The LRAD along with the warning sheets shall be deployed by the DSO members along with the munitions load out and arrest kits.” Domestic Security Officers (pdf) are also part of Homeland Security’s Special Operations Division. Homeland Security Organizational Flowchart (ACTIVE MPD Org Charts) According to The Focus, the DSO “can be heard shouted on audio recordings of the Capitol siege, when law enforcement officers needed additional support against the oncoming masses.” “DSOs are primarily used as riot police, to dole out such crowd control measures as tear gas, pepper spray, batons and rubber bullets intended to disperse rioters. Their weapons can be lethal and are only to be used in the most extreme circumstances.” Video evidence shows an unidentified individual handing weapons to people through a window from inside the Capitol building. Joseph McBride, an attorney for multiple January 6 prisoners and defendants identified a man tagged by “Sedition Hunters” as “Red-Faced 45.” The man McBride says is “clearly law enforcement,” was dressed in red from head to toe—with even his face painted red. He appears in a video engaging in continuous dialogue with others whom McBride also insists are agents embedded in the crowd. “He passes out weapons, sledgehammers, poles, mace. Some of those things come in contact with some of the other protesters who have subsequently been charged with possessing dangerous weapons and are using dangerous weapons at the Capitol. That is clearly entrapment. That is clearly the government creating conditions of dangerousness and entrapping members of the crowd to possess weapons and possibly use them for reasons that we cannot comprehend.” According to a 140-page report issued by then-Capitol Police Inspector General Michael Bolton—”Review of the Events Surrounding the Jan. 6, 2021, Takeover of the U.S. Capitol”—Capitol Police’s Civil Disturbance Unit was ordered by supervisors not to use the department’s most powerful tools, like stun guns. Also, “heavier, less-lethal weapons,” including stun grenades, “were not used that day because of orders from leadership.” Read more here... Tyler Durden Wed, 06/29/2022 - 18:20.....»»

Category: blogSource: zerohedge14 hr. 24 min. ago

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

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

Category: blogSource: zerohedge15 hr. 56 min. ago

3 Reasons to Retain Catalent (CTLT) Stock in Your Portfolio

Catalent's (CTLT) robust facility expansion activities and a slew of strategic deals raise optimism about the stock. Catalent, Inc. CTLT is well-poised for growth in the coming quarters, backed by its robust facility-expansion activities over the past few months. A robust third-quarter fiscal 2022 performance, along with a slew of strategic deals over the past few months, is expected to contribute further. Catalent’s operation in a competitive landscape and regulatory requirements pose threats.Over the past year, this Zacks Rank #3 (Hold) stock has lost 2.2% compared with a 30.8% fall of the industry and 11.6% decline of the S&P 500.The renowned global provider of advanced delivery technologies has a market capitalization of $19.01 billion. Catalent projects 17.3% growth for the next five years and expects to maintain its strong performance. It has delivered an earnings surprise of 9.2% for the past four quarters, on average.Image Source: Zacks Investment ResearchLet’s delve deeper.Expansionary Activities: We are upbeat about Catalent’s robust expansionary activities like the opening of a slew of facilities over the past few months. In May, the company announced that it commenced a $175-million project to expand its flagship U.S. manufacturing facility for large-scale oral dose forms in Winchester, KY.In April, Catalent announced that it completed a significant expansion of its nasal capabilities at its Morrisville, Research Triangle Park, NC-based facility to provide improved services for the development and manufacturing of unit and bi-dose nasal spray products.Strategic Deals: We are optimistic about Catalent’s robust growth opportunities via its recent tie-ups and buyouts. This month, the company entered into a development agreement with MigVax to leverage its proprietary Zydis Bio orally disintegrating tablet technology for delivering the MigVax-101 vaccine.Catalent, in April, acquired Erytech Pharma’s commercial-scale cell therapy manufacturing facility in Princeton, NJ.Strong Q3 Results: Catalent’s solid third-quarter fiscal 2022 results, along with the year-over-year uptick in the top and bottom lines, buoy optimism. Continued strength in its Biologics arm in the quarter under review looks encouraging. Robust performances by the Clinical Supply Services, and the Softgel and Oral Technologies segments, also raise optimism. A raised financial outlook for the year heightens our positivity regarding the stock.DownsidesRegulatory Requirements: The healthcare industry is highly regulated, wherein Catalent and its customers are subject to various local, state, federal, national and transnational laws and regulations, including the operating, quality, and security standards of the FDA and the DEA.Any future change to such laws and regulations could affect the company. Failure by Catalent or its customers to comply with the requirements of these regulatory authorities could result in warning letters, among others.Stiff Competition: Catalent operates in a highly competitive market, wherein it competes with multiple companies, including those offering advanced delivery technologies and outsourced dose form or biologics manufacturing. The company also competes in some cases with the internal operations of those pharmaceutical, biotechnology and consumer health customers that also have manufacturing capabilities and choose to source these services internally.Estimate TrendCatalent is witnessing a positive estimate revision trend for 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 0.8% north to $3.79.The Zacks Consensus Estimate for the company’s fourth-quarter fiscal 2022 revenues is pegged at $1.33 billion, suggesting a 12.1% improvement from the year-ago quarter’s reported number.Key PicksSome better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, Omnicell, Inc. OMCL and Masimo Corporation MASI.AMN Healthcare, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.6%.You can see the complete list of today’s Zacks #1 Rank stocks here.AMN Healthcare has gained 13.3% against the industry’s 44.7% fall in the past year.Omnicell, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 20%. OMCL’s earnings surpassed estimates in three of the trailing four quarters and missed the same in the other, the average beat being 13.4%.Omnicell has lost 25.1% compared with the industry’s 54.9% fall over the past year.Masimo, carrying a Zacks Rank #2 at present, has an earnings yield of 3.4% against the industry’s negative yield. MASI’s earnings surpassed estimates in the trailing four quarters, the average beat being 4.4%.Masimo has lost 43.3% compared with the industry’s 25.5% fall over the past year. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Omnicell, Inc. (OMCL): Free Stock Analysis Report Masimo Corporation (MASI): Free Stock Analysis Report AMN Healthcare Services Inc (AMN): Free Stock Analysis Report Catalent, Inc. (CTLT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks18 hr. 40 min. ago

Petrofac – Inflation Weighs As Expected

Delays and rising costs have hit Petrofac Limited (LON:PFC)’s performance in Engineering & Construction, which is still expected to drive a “modest” free cash outflow at the full year. Asset Solutions continues to see strong demand and an expanding order book, while Integrated Energy Services is ramping up production to capitalise on strong oil prices. […] Delays and rising costs have hit Petrofac Limited (LON:PFC)’s performance in Engineering & Construction, which is still expected to drive a “modest” free cash outflow at the full year. Asset Solutions continues to see strong demand and an expanding order book, while Integrated Energy Services is ramping up production to capitalise on strong oil prices. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Walter Schloss Series in PDF Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more CEO Sami Iskander said, “Looking forward, we expect Asset Solutions and IES to continue to deliver strong performance. Notwithstanding the short-term challenges in the existing E&C portfolio, we continue to expect the second half of 2022 to mark an inflection point for a sustained period of growth in backlog. We have a healthy 18 month Group bidding pipeline and we expect to grow the E&C backlog in 2022 and to secure significant new orders in 2023, underpinned by opportunities in the UAE and offshore wind.” Petrofac shares were up 3.7% following the announcement. Petrofac's Earnings Laura Hoy, Equity Analyst at Hargreaves Lansdown: “With the Serious Fraud Office investigation finally in the rearview, this year was meant to be one of rebuilding for Petrofac. But lingering supply chain issues from the pandemic and inflationary headwinds have put somewhat of a damper on the group’s Engineering & Construction business. The good news is that other parts of the business are picking up some of the slack—with higher oil prices and strong demand for onshore and offshore asset management keeping a floor under profits. Despite the challenges, it was promising to see that the group’s still expecting to meet its revised targets. Inflationary headwinds have only strengthened since we last heard from Petrofac, so it’s pleasing to see estimates remained the same.” About Hargreaves Lansdown Over 1.7 million clients trust us with £132.3 billion (as at 30 April 2022), making us the UK’s number one platform for private investors. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month. Updated on Jun 29, 2022, 1:54 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalk19 hr. 12 min. ago

Manitowoc (MTW) Withdraws From CONEXPO Citing Cost Issues

Manitowoc (MTW) invests in new products and aims to showcase its latest developments at the upcoming Bauma show. The Manitowoc Company, Inc. MTW announced its decision to withdraw from the CONEXPO-CON/AGG 2023 trade show to be held at the Las Vegas Convention Center in March 14 to 18, owing to the current inflationary cost pressure faced by the company.Manitowoc has been implementing several pricing actions to mitigate cost inflation over the past 18 months. The company has periodically passed on these increased costs to its customers, but it might not be adequate to counter the impact of high costs. Therefore, the company decided not to invest in a second, large tradeshow considering the current inflationary environment.MTW continues to invest in new products and aims to showcase its latest developments at the upcoming Bauma show, the world's leading construction machinery trade fair, in October 2022.Ongoing supply-chain and logistics challenges impacted Manitowoc’s revenues in first-quarter 2022. The company witnessed a 21.6% sequential orders plunge in the quarter, putting a brake on growth in orders seen by the company in the past three quarters. The company anticipates that the recent inflation, particularly in Europe, besides further deterioration in the supply chain, will add to the pressure on the top line and margins throughout 2022.Manitowoc, thus, expects adjusted EBITDA to come in at the lower end of the previous guidance. It had earlier guided revenues in the range of $2.0-$2.2 billion, adjusted EBITDA in the range of $130-$160 million and adjusted EPS between 65 cents and $1.35.The company is facing higher steel, logistics, and transportation costs (both ocean and land freight), which are expected to persist in 2022. Additionally, the semiconductor chip shortage created significant issues throughout its supply base.Manitowoc anticipates the ongoing global supply-chain and logistic challenges, inflationary pressures, and an unstable labor market to impact results through the first half of 2022. In the second half of 2022, the company expects these headwinds to subside.Manitowoc’s innovation pipeline remains robust. Focus on innovation will continue to aid it in leading the industry by providing differentiated products that add value to customers. The company has also been taking the necessary steps to align production with changing demand levels. It has remained focused on cutting costs, increasing productivity and eliminating waste. Operational focus, healthy balance sheet and market-leading products position it well to capitalize as end markets recover.The company remains focused on cash preservation and balance sheet management while funding critical programs for future growth. It continues to evaluate acquisition opportunities to accelerate product development programs in its all-terrain product line. Manitowoc is scaling up its Chinese tower crane business and has launched six new crane models, which have received positive customer feedback. The company invested $15 million in its tower crane rental fleet in Europe, which helped gain market share in Germany and win some strategic orders with key accounts.  In all-terrain cranes, the company has new models lined up for launch at Bauma show in 2022. These strategic initiatives and the company’s pursuit of acquisition opportunities will drive substantial long-term growth.Price PerformanceManitowoc’s shares have declined 42.8% in the last six months compared with the industry’s fall of 10.9%.Image Source: Zacks Investment ResearchZacks Rank & Stocks to ConsiderManitowoc currently carries a Zacks Rank #5 (Strong Sell).Some better-ranked stocks in the Industrial Products sector are Graphic Packaging Holding Company GPK, Myers Industries MYE and Titan International TWI, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 8% in the past six months.Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days.MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Myers Industries’ shares have increased 25% over the last six months.Titan International has an estimated earnings growth rate of 112% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 55%.Titan International pulled off a trailing four-quarter earnings surprise of 56.4%, on average. The company’s shares have soared 46.7% in six months. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report Graphic Packaging Holding Company (GPK): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report Myers Industries, Inc. (MYE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks19 hr. 56 min. ago

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

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

Category: topSource: zacks20 hr. 24 min. ago

Here"s Why Investors Should Retain Domino"s (DPZ) Stock Now

Domino's (DPZ) technology-driven initiatives like digital ordering will bolster sales. However, inflationary pressures in commodity, labor and fuel costs continue to hurt the company. Shares of Domino's Pizza, Inc. DPZ have slumped 16.2% in the past year, compared with the industry’s decline of 19.4%. However, the stock has displayed some resilience, increasing 6.8% in the past month. The company’s sales-building efforts and expansion are likely to drive performance.Key CatalystsDomino’s has been investing heavily in technology-driven initiatives like digital ordering to bolster sales. In 2021, the company’s digital sales accounted for $6.6 billion in U.S. retail sales, an increase of more than 36% since 2019. Meanwhile, Domino’s digital loyalty program — Piece of the Pie Rewards — continues to contribute significantly to traffic gains. The extended ways to order a pizza have kept Domino’s at the forefront of digital ordering and customer convenience. The company has more than 29 million active members in its Piece of the Pie loyalty program. The company has almost 70 million customers enrolled in its loyalty database.Image Source: Zacks Investment ResearchMeanwhile, the company continues to witness growth in terms of its carryout and delivery businesses. It has been emphasizing the Car Side Delivery 2-Minute Guarantee with awareness campaigns. With less than two minutes of wait time, the technology has been embraced by its franchisees and operators. Further developments in this regard are likely, as it intends to boost drive-through-oriented customer experience.During first-quarter fiscal 2022, the company initiated certain changes with respect to the $5.99 mix-and-match offerings. Priced at $6.99, the menu includes the addition of 32-piece Parmesan bread bites, six-piece wings and three-piece chocolate lava cakes. Although the initiative paves the way for increased costs in delivery orders, attributes such as variety, great taste and competitive pricing are likely to help the company achieve balanced growth across tickets and orders in the long haul.The Zacks Rank #3 (Hold) company continues to focus on expansion efforts to drive growth. Meanwhile, in first-quarter fiscal 2022, it opened 213 stores, comprising 37 net new U.S. stores and 176 net new international stores. During the quarter under discussion, the company completed the purchase of 23 franchise stores in the Detroit DMA, thereby bringing its total company-owned store count to 400 in the United States. Solid store openings were witnessed in India, with the count rising to 1500. The company initiated its 500th store opening in the Middle East and North Africa. Other markets of store growth included China, Mexico, Spain, Turkey, Taiwan, Iceland and Guatemala. Going forward, the company is confident about its two to three-year outlook of 6% to 8% annual global net store growth.ConcernsInflationary pressures in commodity, labor and fuel costs continue to hurt the company. The industry players expect to witness higher costs due to labor and supply chain shortages for quite some time. The company has been witnessing labor challenges in a handful of markets. During the fiscal first quarter, the company’s total cost of sales amounted to $642.5 million compared with $594.5 million reported in the prior-year quarter. Going forward, the company anticipates fluctuations in commodity prices (including wheat) and fuel costs stemming from geopolitical risks and its impact on the overall macroeconomic environment.Key PicksSome better-ranked stocks in the Zacks Retail-Wholesale sector are MarineMax, Inc. HZO, BBQ Holdings, Inc. BBQ and Arcos Dorados Holdings Inc. ARCO.MarineMax sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 32.8%, on average. Shares of the company have declined 24.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for MarineMax’s 2022 sales and EPS suggests growth of 16% and 21.5%, respectively, from the year-ago period’s levels.BBQ Holdings carries a Zacks Rank #2 (Buy). BBQ Holdings has a long-term earnings growth of 14%. Shares of the company have slumped 35.6% in the past year.The Zacks Consensus Estimate for BBQ Holdings’ 2022 sales and EPS suggests growth of 46.1% and 67.6%, respectively, from the year-ago period’s levels.Arcos Dorados carries a Zacks Rank #2. ARCO has a long-term earnings growth of 34.4%. Shares of the company have appreciated14.5% in the past year.The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 16.6% and 83.3%, respectively, from the year-ago period’s levels. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Domino's Pizza Inc (DPZ): Free Stock Analysis Report MarineMax, Inc. (HZO): Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO): Free Stock Analysis Report BBQ Holdings, Inc. (BBQ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks20 hr. 24 min. ago

Reasons to Retain Caterpillar (CAT) Stock in Your Portfolio

Solid demand in its markets, expected savings from cost-reduction actions and upbeat earnings growth estimates make Caterpillar (CAT) stock worth retaining in the portfolio. Caterpillar Inc. CAT is well-poised for growth, courtesy of improving demand in its end markets and cost-control efforts. A strong liquidity position, ongoing investments in expanded offerings, and services and digital initiatives are expected to contribute to growth.Caterpillar currently has a Zacks Rank #3 (Hold) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 offer the best investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.Let’s delve deeper and analyze the factors that make this stock worth holding on to.Solid Q1 Results & Robust Backlog Levels: Caterpillar’s adjusted earnings per share was $2.88 in first-quarter 2022, which surpassed the Zacks Consensus Estimate of $2.66. The company reported earnings per share of $2.87 in the year-ago quarter. All of its segments witnessed strong end-market demand, and higher pricing helped offset the impacts of unfavorable costs on its earnings in the quarter under discussion. Backlog at the end of the first quarter of 2022 was an impressive $26.4 billion. This bodes well for the company’s top-line performance in the days ahead.Upward Movement in Estimates: Over the past 60 days, the Zacks Consensus Estimate for Caterpillar’s fiscal 2022 earnings has increased 1%. The consensus mark for fiscal 2022 has moved up 0.5% over the same time frame.Positive Earnings Surprise History: Caterpillar beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 14%.Healthy Growth Projections: The Zacks Consensus Estimate for 2022 earnings is currently pegged at $12.64, suggesting year-over-year growth of around 17%. The consensus mark for fiscal 2023 earnings stands at $14.78, indicating an improvement of 17% on a year-over-year basis.Caterpillar has an estimated long-term earnings growth rate of 12%.Strong Demand to Fuel Top-LineIn North America, the demand in both residential and non-residential construction sectors is likely to bolster the demand for Caterpillar’s construction equipment. The perked-up investment in roads, bridges, airports and waterways due to the U.S. Infrastructure Investment and Jobs Act represents a huge opportunity for Caterpillar. In the Asia Pacific (barring China), higher commodity prices, housing strength and increased government spending on infrastructure will support construction equipment sales. Increased construction activity will drive machine demand in EAME and Latin America.In Resource Industries, mining orders are on an uptrend, courtesy of improving metal prices. Miners are increasingly relying on autonomous systems to enhance productivity, and reduce costs and emissions. Hence, the company is enhancing its autonomous capabilities and bringing innovative products into the market.In the Energy & Transportation segment, strong order rates in most applications are expected to support revenues in 2022. Industrial is anticipated to witness growth, with activity strengthening across most applications.Strong Balance SheetCaterpillar expects to deliver ME&T free cash flow between $4 billion and $8 billion this year. Its cash and liquidity position remains strong, with the company ending the first quarter of 2022 with cash and short-term investments of $6.5 billion. ME&T debt stood at $9.76 billion. Compared to the base of 4.5 in 2017, its times interest earned ratio has improved substantially over the years and is currently at 10.2. Recently, Caterpillar hiked its quarterly dividend by 8% to $1.20 per share. Caterpillar has paid higher dividends to shareholders for 28 straight years and is a member of the S&P 500 Dividend Aristocrat Index. Over the past four years, the company has returned an average of 99% of its ME&T free cash flow to shareholders, which is in sync with its target to return all of its ME&T free cash flow to shareholders over time.Growth Strategies in PlaceCaterpillar continues to focus on customers and the future by continuing to invest in digital capabilities, connecting assets and job sites, and developing the next-generation productive and efficient products. The company has been investing in expanded offerings and services, and digital initiatives like e-commerce to drive long-term growth.Price Performance Image Source: Zacks Investment ResearchShares of Caterpillar have fallen 9.4% year to date compared with the industry’s decline of 10.9%.Stocks to ConsiderSome better-ranked stocks in the Industrial Products sector are are Greif Inc. GEF, Myers Industries MYE and Amcor plc AMCR. Greif and Myers Industries sport a Zacks Rank #1 at present, while Amcor carries a Zacks Rank #2.Greif has an estimated earnings growth rate of 36% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 17%.Greif pulled off a trailing four-quarter earnings surprise of 22.9%, on average. The company’s shares have gained 4% year to date.Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days.MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Year to date, Myers Industries’ shares have risen 6%.Amcor has an estimated earnings growth rate of 9.5% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 3%.Amcor pulled off a trailing four-quarter earnings surprise of 2.4%, on average. The company’s shares have appreciated 3% so far this year.  Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Caterpillar Inc. (CAT): Free Stock Analysis Report Greif, Inc. (GEF): Free Stock Analysis Report Myers Industries, Inc. (MYE): Free Stock Analysis Report Amcor PLC (AMCR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks20 hr. 24 min. ago