Saturday, July 21, 2018

Top Small Cap Stocks To Own Right Now

tags:FCEL,ACHN,PQ,CNR, &l;p&g;&l;img class=&q;dam-image bloomberg size-large wp-image-41932157&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/41932157/960x0.jpg?fit=scale&q; data-height=&q;640&q; data-width=&q;960&q;&g; Bloomberg

The Dow Jones Industrial Average is higher than it was 52-weeks ago -- even though it&s;s declined a bit in price from its January, 2018 highs. The Standard and Poor&s;s 500 is higher than it was a year ago. The Russell 2000 index of small caps is higher than it was 52 weeks ago. The Dow Jones Transportation Average is higher than it was a year ago.

As a matter of fact, most stocks remain above the levels of one year ago.

So, I was surprised to discover, when I was checking the list of &q;new lows&q; over the weekend, that a few significant and highly recognizable brand names aren&s;t exactly keeping up. Here are 6 stocks which are lower now than 52-weeks back:

&l;strong&g;Bed, Bath and Beyond&l;/strong&g; -- Earnings per share have been positive if you look at the past five years but last year was definitely in the red. Debt exceeds shareholder equity.

Top Small Cap Stocks To Own Right Now: FuelCell Energy Inc.(FCEL)

Advisors' Opinion:
  • [By Paul Ausick]

    FuelCell Energy Inc. (NASDAQ: FCEL) posted an increase of 17.8% in short interest during the period. Some 6.9 million shares were short as of May 15. The stock closed at $1.88 on Thursday, down about 1.1% for the day, in a 52-week range of $0.93 to $2.49. Shares traded up about 1.4% in the short interest period, and days to cover rose from eight to 14.

  • [By Shane Hupp]

    FuelCell Energy (NASDAQ: FCEL) is one of 25 public companies in the “Miscellaneous electrical machinery, equipment, & supplies” industry, but how does it contrast to its peers? We will compare FuelCell Energy to related companies based on the strength of its risk, dividends, earnings, valuation, profitability, analyst recommendations and institutional ownership.

  • [By Ethan Ryder]

    FuelCell Energy (NASDAQ: FCEL) and Integer (NYSE:ITGR) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Top Small Cap Stocks To Own Right Now: Achillion Pharmaceuticals Inc.(ACHN)

Advisors' Opinion:
  • [By Ethan Ryder]

    Achillion Pharmaceuticals (NASDAQ:ACHN) – Research analysts at B. Riley reduced their FY2018 EPS estimates for shares of Achillion Pharmaceuticals in a research note issued to investors on Wednesday, May 2nd. B. Riley analyst M. Kumar now anticipates that the biopharmaceutical company will earn ($0.58) per share for the year, down from their previous estimate of ($0.55). B. Riley has a “Neutral” rating and a $3.50 price objective on the stock. B. Riley also issued estimates for Achillion Pharmaceuticals’ FY2019 earnings at ($0.64) EPS, FY2020 earnings at ($0.71) EPS, FY2021 earnings at ($0.70) EPS and FY2022 earnings at ($0.84) EPS.

  • [By Shane Hupp]

    News articles about Achillion Pharmaceuticals (NASDAQ:ACHN) have trended somewhat positive this week, Accern Sentiment reports. The research firm ranks the sentiment of press coverage by analyzing more than twenty million blog and news sources in real-time. Accern ranks coverage of companies on a scale of negative one to positive one, with scores closest to one being the most favorable. Achillion Pharmaceuticals earned a media sentiment score of 0.16 on Accern’s scale. Accern also gave news articles about the biopharmaceutical company an impact score of 46.941587509483 out of 100, indicating that recent press coverage is somewhat unlikely to have an effect on the stock’s share price in the near term.

  • [By Stephan Byrd]

    Get a free copy of the Zacks research report on Achillion Pharmaceuticals (ACHN)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top Small Cap Stocks To Own Right Now: Petroquest Energy Inc(PQ)

Advisors' Opinion:
  • [By Ethan Ryder]

    News headlines about Petroquest Energy (NYSE:PQ) have been trending somewhat positive recently, Accern Sentiment Analysis reports. Accern identifies negative and positive news coverage by reviewing more than 20 million blog and news sources. Accern ranks coverage of publicly-traded companies on a scale of -1 to 1, with scores nearest to one being the most favorable. Petroquest Energy earned a coverage optimism score of 0.05 on Accern’s scale. Accern also gave news stories about the energy company an impact score of 47.638327846877 out of 100, meaning that recent news coverage is somewhat unlikely to have an impact on the company’s share price in the near future.

Top Small Cap Stocks To Own Right Now: China Metro-Rural Holdings Limited(CNR)

Advisors' Opinion:
  • [By Max Byerly]

    Compass Capital Management Inc. bought a new position in Canadian National Railway (NYSE:CNI) (TSE:CNR) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 2,535 shares of the transportation company’s stock, valued at approximately $207,000.

  • [By Shane Hupp]

    Wall Street analysts expect that Canadian National Railway (NYSE:CNI) (TSE:CNR) will announce $1.02 earnings per share (EPS) for the current quarter, according to Zacks Investment Research. Seven analysts have provided estimates for Canadian National Railway’s earnings, with the highest EPS estimate coming in at $1.06 and the lowest estimate coming in at $0.97. Canadian National Railway reported earnings per share of $1.00 in the same quarter last year, which would suggest a positive year over year growth rate of 2%. The company is expected to announce its next quarterly earnings results on Tuesday, July 24th.

  • [By Joseph Griffin]

    Shares of Canadian National Railway (TSE:CNR) (NYSE:CNI) have been given an average recommendation of “Buy” by the eleven research firms that are covering the firm, MarketBeat reports. One investment analyst has rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is C$109.36.

  • [By Max Byerly]

    Canadian National Railway (NYSE:CNI) (TSE:CNR) – Cormark raised their Q3 2018 earnings per share (EPS) estimates for Canadian National Railway in a research report issued to clients and investors on Tuesday, April 10th. Cormark analyst D. Tyerman now expects that the transportation company will post earnings per share of $1.15 for the quarter, up from their previous estimate of $1.14.

  • [By Stephan Byrd]

    Brokerages expect Canadian National Railway (NYSE:CNI) (TSE:CNR) to announce earnings of $1.03 per share for the current fiscal quarter, Zacks Investment Research reports. Eight analysts have issued estimates for Canadian National Railway’s earnings, with the highest EPS estimate coming in at $1.10 and the lowest estimate coming in at $0.97. Canadian National Railway reported earnings of $1.00 per share in the same quarter last year, which would indicate a positive year over year growth rate of 3%. The business is scheduled to issue its next quarterly earnings report on Tuesday, July 24th.

Friday, July 20, 2018

Top 10 Insurance Stocks For 2019

tags:WRB,PFG,PRU,TOP,AIG,AON,

The Hanover Insurance Group (NYSE:THG) was upgraded by stock analysts at Keefe, Bruyette & Woods from a “market perform” rating to an “outperform” rating in a research report issued on Friday, Marketbeat Ratings reports.

THG has been the subject of a number of other reports. ValuEngine upgraded The Hanover Insurance Group from a “hold” rating to a “buy” rating in a report on Monday, March 19th. Zacks Investment Research downgraded The Hanover Insurance Group from a “hold” rating to a “sell” rating in a report on Saturday, April 14th.

Get The Hanover Insurance Group alerts:

Shares of NYSE THG opened at $115.50 on Friday. The Hanover Insurance Group has a twelve month low of $79.23 and a twelve month high of $121.39. The company has a quick ratio of 0.47, a current ratio of 0.46 and a debt-to-equity ratio of 0.27. The company has a market capitalization of $4,908.29, a PE ratio of 20.09 and a beta of 0.97.

Top 10 Insurance Stocks For 2019: W.R. Berkley Corporation(WRB)

Advisors' Opinion:
  • [By Logan Wallace]

    W. R. Berkley (NYSE: WRB) and State Auto Financial (NASDAQ:STFC) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

  • [By Ethan Ryder]

    ValuEngine cut shares of W. R. Berkley (NYSE:WRB) from a buy rating to a hold rating in a report released on Monday morning.

    WRB has been the topic of a number of other research reports. Bank of America cut shares of W. R. Berkley from a neutral rating to an underperform rating and set a $74.00 target price on the stock. in a report on Thursday, June 14th. They noted that the move was a valuation call. Zacks Investment Research cut shares of W. R. Berkley from a buy rating to a hold rating in a report on Tuesday, February 20th. Boenning Scattergood restated a hold rating on shares of W. R. Berkley in a report on Wednesday, April 25th. Finally, Goldman Sachs Group started coverage on shares of W. R. Berkley in a report on Monday. They set a sell rating and a $74.00 target price on the stock. They noted that the move was a valuation call. Four analysts have rated the stock with a sell rating and eight have issued a hold rating to the stock. W. R. Berkley currently has a consensus rating of Hold and a consensus price target of $70.78.

  • [By Stephan Byrd]

    Get a free copy of the Zacks research report on W. R. Berkley (WRB)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top 10 Insurance Stocks For 2019: Principal Financial Group Inc(PFG)

Advisors' Opinion:
  • [By Max Byerly]

    Shore Capital reissued their hold rating on shares of Provident Financial (LON:PFG) in a report issued on Thursday.

    PFG has been the subject of several other reports. Liberum Capital reissued a sell rating and set a GBX 483 ($6.48) price objective on shares of Provident Financial in a research note on Monday, February 26th. Peel Hunt reissued a hold rating and set a GBX 870 ($11.67) price objective on shares of Provident Financial in a research note on Tuesday, February 27th. JPMorgan Chase & Co. reduced their price objective on Provident Financial from GBX 1,100 ($14.76) to GBX 750 ($10.06) and set a neutral rating for the company in a research note on Thursday, May 10th. Barclays reissued an underweight rating and set a GBX 584 ($7.84) price objective on shares of Provident Financial in a research note on Wednesday, January 31st. Finally, Societe Generale lowered Provident Financial to a hold rating and set a GBX 1,050 ($14.09) price objective for the company. in a research note on Wednesday, February 28th. Two investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and two have assigned a buy rating to the company’s stock. Provident Financial presently has a consensus rating of Hold and a consensus price target of GBX 1,190.14 ($15.97).

  • [By WWW.GURUFOCUS.COM]

    For the details of Stilwell Value LLC's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Stilwell+Value+LLC

    These are the top 5 holdings of Stilwell Value LLCOFG Bancorp (OFG) - 1,614,868 shares, 14.1% of the total portfolio. Kingsway Financial Services Inc (KFS) - 3,780,889 shares, 12.63% of the total portfolio. HopFed Bancorp Inc (HFBC) - 627,128 shares, 7.62% of the total portfolio. Alcentra Capital Corp (ABDC) - 1,251,324 shares, 7.27% of the total portfolio. Shares added by 20.66%Sound Financial Bancorp Inc (SFBC) - 228,600 shares, 7.02% of th
  • [By Shane Hupp]

    These are some of the news articles that may have impacted Accern’s scoring:

    Get Principal Financial Group alerts: Principal Financial Group (PFG) Approves New $300M Buyback (streetinsider.com) Principal Financial Group (PFG) Announces Share Repurchase Plan (americanbankingnews.com) Is Principal Large Cap Growth I Institutional (PLGIX) a Strong Mutual Fund Pick Right Now? (finance.yahoo.com) Principal Financial Group is Oversold (nasdaq.com) Principal Names New Chief Human Resources Officer (finance.yahoo.com)

    Several equities analysts have recently commented on PFG shares. Morgan Stanley decreased their target price on Principal Financial Group from $79.00 to $77.00 and set an “equal weight” rating on the stock in a research report on Thursday, April 5th. Wells Fargo reaffirmed a “market perform” rating and issued a $76.00 target price on shares of Principal Financial Group in a research report on Monday, January 8th. Credit Suisse Group started coverage on Principal Financial Group in a research report on Wednesday, April 25th. They issued a “neutral” rating and a $62.00 target price on the stock. Bank of America started coverage on Principal Financial Group in a research report on Monday, March 26th. They issued a “neutral” rating and a $65.00 target price on the stock. Finally, UBS started coverage on Principal Financial Group in a research report on Friday, March 2nd. They issued a “neutral” rating and a $69.00 target price on the stock. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and three have issued a buy rating to the company. Principal Financial Group currently has an average rating of “Hold” and an average price target of $71.18.

Top 10 Insurance Stocks For 2019: Prudential Financial Inc.(PRU)

Advisors' Opinion:
  • [By Ethan Ryder]

    Get a free copy of the Zacks research report on Prudential Financial (PRU)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Zacks]

    Well, given the growing demand for securitized mortgage deals, Barclays plans to package and sell these Irish loans over the next two months. The group of investors that has shown interest in buying residential mortgage backed securities includes M&G Investments, the investment management division of British insurer Prudential Plc (NYSE: PRU) and Pacific Investment Management Co. ("PIMCO").

  • [By Joseph Griffin]

    These are some of the headlines that may have effected Accern Sentiment Analysis’s analysis:

    Get Prudential Financial alerts: Prudential (PUK) Presents At 2018 Deutsche Bank Annual Global Financial Services Conference – Slideshow (seekingalpha.com) Leston Welsh joins Prudential Group Insurance as head of Disability and Absence Management (finance.yahoo.com) Contrasting Prudential Financial (PRU) & Old Mutual (ODMTY) (americanbankingnews.com) Prudential again accused with unauthorised money deduction (vir.com.vn) An Application for the Trademark ��MULLINTBG�� Has Been Filed by Prudential Insurance Company (insurancenewsnet.com)

    Prudential Financial traded down $5.05, hitting $94.97, during midday trading on Tuesday, MarketBeat Ratings reports. 2,919,216 shares of the company’s stock were exchanged, compared to its average volume of 2,144,103. The company has a current ratio of 0.12, a quick ratio of 0.12 and a debt-to-equity ratio of 0.35. The firm has a market cap of $42.01 billion, a PE ratio of 8.98, a P/E/G ratio of 0.97 and a beta of 1.52. Prudential Financial has a one year low of $94.51 and a one year high of $127.14.

  • [By Shane Hupp]

    NN Investment Partners Holdings N.V. increased its holdings in Prudential Financial Inc (NYSE:PRU) by 0.1% during the 2nd quarter, Holdings Channel reports. The firm owned 2,197,076 shares of the financial services provider’s stock after buying an additional 2,780 shares during the period. Prudential Financial accounts for approximately 1.5% of NN Investment Partners Holdings N.V.’s portfolio, making the stock its 10th largest position. NN Investment Partners Holdings N.V.’s holdings in Prudential Financial were worth $205,450,000 at the end of the most recent reporting period.

  • [By Stephan Byrd]

    Symphony Asset Management LLC lowered its position in Prudential Financial Inc (NYSE:PRU) by 18.9% during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 16,149 shares of the financial services provider’s stock after selling 3,765 shares during the period. Symphony Asset Management LLC’s holdings in Prudential Financial were worth $1,672,000 as of its most recent SEC filing.

Top 10 Insurance Stocks For 2019: Topdanmark A/S (TOP)

Advisors' Opinion:
  • [By Logan Wallace]

    TopCoin (CURRENCY:TOP) traded down 15.4% against the dollar during the 1-day period ending at 7:00 AM E.T. on June 21st. During the last seven days, TopCoin has traded up 4% against the dollar. TopCoin has a market cap of $0.00 and approximately $123.00 worth of TopCoin was traded on exchanges in the last day. One TopCoin coin can currently be bought for about $0.0010 or 0.00000015 BTC on popular exchanges.

Top 10 Insurance Stocks For 2019: American International Group Inc.(AIG)

Advisors' Opinion:
  • [By ]

    Insurance company American International Group Inc. (AIG) stock fell 5.3% as harsh winter weather weighed on profits. But the company's long-term care exposure is relatively minimal.

  • [By Logan Wallace]

    Sentry Investment Management LLC lessened its holdings in American International Group (NYSE:AIG) by 8.6% during the first quarter, HoldingsChannel reports. The firm owned 64,968 shares of the insurance provider’s stock after selling 6,147 shares during the quarter. Sentry Investment Management LLC’s holdings in American International Group were worth $3,536,000 at the end of the most recent reporting period.

  • [By Stephan Byrd]

    Suntrust Banks Inc. boosted its position in shares of American International Group Inc (NYSE:AIG) by 12.4% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 36,736 shares of the insurance provider’s stock after purchasing an additional 4,048 shares during the period. Suntrust Banks Inc.’s holdings in American International Group were worth $1,998,000 at the end of the most recent reporting period.

  • [By Max Byerly]

    These are some of the media stories that may have effected Accern’s rankings:

    Get American International Group alerts: AIG’s loss for European business worsens in 2017 (businessinsurance.com) $1.26 EPS Expected for American International Group (AIG) This Quarter (americanbankingnews.com) UBS: Buy AIG After Earnings Estimates ‘Bottom Out’ (finance.yahoo.com) American International Group (AIG) Stock Rating Upgraded by UBS (americanbankingnews.com) American International Group (AIG) Receives Average Recommendation of “Hold” from Analysts (americanbankingnews.com)

    American International Group traded up $0.36, hitting $55.15, during mid-day trading on Friday, MarketBeat.com reports. The stock had a trading volume of 9,821,608 shares, compared to its average volume of 6,828,715. The company has a debt-to-equity ratio of 0.53, a current ratio of 0.27 and a quick ratio of 0.27. American International Group has a 1-year low of $49.57 and a 1-year high of $67.30. The firm has a market cap of $49.51 billion, a P/E ratio of 22.98, a PEG ratio of 1.01 and a beta of 1.24.

Top 10 Insurance Stocks For 2019: Aon Corporation(AON)

Advisors' Opinion:
  • [By Max Byerly]

    State of Wisconsin Investment Board decreased its holdings in shares of Aon (NYSE:AON) by 9.2% in the 1st quarter, Holdings Channel reports. The fund owned 384,127 shares of the financial services provider’s stock after selling 38,942 shares during the quarter. State of Wisconsin Investment Board’s holdings in AON were worth $53,905,000 at the end of the most recent quarter.

  • [By Stephan Byrd]

    US Bancorp DE raised its stake in shares of Aon (NYSE:AON) by 3.0% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 40,448 shares of the financial services provider’s stock after acquiring an additional 1,178 shares during the quarter. US Bancorp DE’s holdings in AON were worth $5,676,000 as of its most recent filing with the SEC.

  • [By Logan Wallace]

    AON (NYSE: AON) and CorVel (NASDAQ:CRVL) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.

  • [By Lisa Levin] Companies Reporting Before The Bell Celgene Corporation (NASDAQ: CELG) is projected to report quarterly earnings at $1.96 per share on revenue of $3.46 billion. Aon plc (NYSE: AON) is expected to report quarterly earnings at $2.8 per share on revenue of $2.93 billion. American Axle & Manufacturing Holdings, Inc. (NYSE: AXL) is estimated to report quarterly earnings at $0.81 per share on revenue of $1.75 billion. Alibaba Group Holding Limited (NYSE: BABA) is expected to report quarterly earnings at $0.88 per share on revenue of $9.27 billion. LifePoint Health, Inc. (NASDAQ: LPNT) is projected to report quarterly earnings at $1.13 per share on revenue of $1.62 billion. V.F. Corporation (NYSE: VFC) is estimated to report quarterly earnings at $0.65 per share on revenue of $2.90 billion. Newell Brands Inc. (NYSE: NWL) is expected to report quarterly earnings at $0.26 per share on revenue of $3.05 billion. Titan International, Inc. (NYSE: TWI) is projected to report quarterly earnings at $0.04 per share on revenue of $407.27 million. Boise Cascade Company (NYSE: BCC) is expected to report quarterly earnings at $0.45 per share on revenue of $1.09 billion. Cheniere Energy, Inc. (NYSE: LNG) is estimated to report quarterly earnings at $0.39 per share on revenue of $1.59 billion. Cboe Global Markets, Inc. (NASDAQ: CBOE) is projected to report quarterly earnings at $1.24 per share on revenue of $308.05 million. ITT Inc. (NYSE: ITT) is estimated to report quarterly earnings at $0.73 per share on revenue of $683.96 million. Fred's, Inc. (NASDAQ: FRED) is expected to report quarterly loss at $0.19 per share on revenue of $551.00 million. Virtu Financial, Inc. (NASDAQ: VIRT) is projected to report quarterly earnings at $0.52 per share on revenue of $288.31 million. Cheniere Energy Partners, L.P. (NYSE: CQP) is expected to report quarterly earnings at $0.57 per share on revenue of $1.38 billion. Genesis Energy, L.P

Thursday, July 19, 2018

Microsoft (MSFT) Slips 0.78% Ahead of Earnings: What To Watch

Microsoft (MSFT ) saw its stock price dip 0.78% to hit $105.12 per share Wednesday, just one day before the tech power is set to report its Q4 fiscal 2018 financial results. So let’s take a look at what investors should expect from Microsoft after the closing bell Thursday.

Microsoft has jumped into new areas in order to adapt and grow, with a big push into artificial intelligence and IoT. The firm also competes against Amazon (AMZN ) , Oracle (ORCL ) , and Google (GOOGL ) in the cloud computing industry. Microsoft’s continued success in some of its more traditional businesses, coupled with its new-age ventures has helped its stock price climb roughly 98% over the last two years and 42% during the last 12 months.

Looking to MSFT’s Q4, our latest Zacks Consensus Estimates are calling for Microsoft’s revenues to climb by 18.24% to reach $29.21 billion. Meanwhile, the firm’s adjusted Q4 ESP figure is expected to hit $1.07 per share, which would mark over a 9% climb.

Investors should also note that Microsoft’s quarterly earnings revisions activity has been mixed recently. The company has received one downward earnings estimate revisions for Q4 within the last 30 days, along with one full-year upward change within the last seven days, which has helped contribute to its Zacks Rank #3 (Hold).

With all that said, we still need to gauge how likely the firm is to outperform estimates Thursday, and we can turn to our exclusive Earnings ESP figure to do so.

Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.

This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.

A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.

Microsoft’s Most Accurate Estimate—the representation of the most recent analyst sentiment—is calling for earnings of $1.08 per share, which is one cent better than our current consensus estimate. Furthermore, Microsoft currently sports an Earnings ESP of 0.37% and a Zacks Rank #3 (Hold), which means investors can reasonably expect that MSFT has a good chance to beat earnings estimates after the bell Thursday.

It is also worth noting that Microsoft has topped our bottom line estimates in 14 out of the last 15 quarters, including the trailing eight periods.

Make sure to check back here for our full analysis after Microsoft reports!

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Wednesday, July 11, 2018

Why Glu Mobile Inc. Stock Gained 13.7% in June

What happened

Shares of Glu Moble�(NASDAQ:GLUU)�climbed 13.7% in June, according to data from�S&P Global Market Intelligence�.�The mobile-gaming company's share price has climbed roughly 80% year to date on indications that its turnaround effort is proceeding successfully.�

GLUU Chart

GLUU data by YCharts

Glu is aiming to improve player engagement and spending on its legacy titles such as�Kim Kardashian Hollywood, Covet Fashion, and Design Home while also launching new franchises -- and it's seen encouraging early results for recent release�MLB Tap Sports Baseball 2018. The stock also gained ground following favorable ratings coverage from Piper Jaffray.

A man holding a mobile phone as if it were a game controller.

Image source: Getty Images.

So what

Glu posted better-than-expected earnings results at the beginning of May, helping to push its share price roughly 29% higher in the month. The successful debut of MLB Tap Sports Baseball 2018 also added to its stock gains, and some of the momentum from those catalysts carried on through June.

On June 15, Piper Jaffray analyst Michael Olson initiated ratings coverage on the stock, issuing an "overweight" rating and setting a $7.50 price target -- representing roughly 20% upside at the time of the note's publication and the stock's price as of this writing.�Glu is a relatively small company with a market cap of roughly $850 million, so it's not unusual to see its valuation post significant gains following positive coverage from a highly regarded ratings firm.

Now what

Glu's valuation has seen some big swings since the company went public in 2007.

GLUU Chart

GLUU data by YCharts

Much of the volatility has been tied to shifts in the company's section of the gaming industry -- with the rise and fall of Facebook-based browser games and celebrity-focused titles being among the most notable changes to impact performance.

Glu has recently had success with its pivot away from celebrity-focused games, with 69% of its bookings in the March-ended quarter coming from original intellectual properties. However, there are still reasons to be cautious about the company's long-term prospects. The mobile-games space is highly competitive, and Glu will have to contend with more resource-rich competitors such as�Activision Blizzard, Electronic Arts, and Take-Two Interactive, as well as a wide range of smaller independent studios.

Despite favorable trends shaping the broader gaming industry, there's limited visibility on how the company's efforts to introduce new properties will fare -- so those considering buying Glu Mobile should proceed with the understanding that it's not a low-risk investment.

Friday, July 6, 2018

2 Warren Buffett Stocks to Buy in July

Berkshire Hathaway (NYSE:BRK-A) (NYSE:BRK-B) has one of the most closely followed stock portfolios in the world, and for good reason. Many of the stocks in it were hand-selected by billionaire investor Warren Buffett.

While I wouldn't go so far as to say that all of these "Buffett stocks" are great buys, there are some that really stand out right now. Here are two in particular -- an investment bank that's quietly getting into the consumer side of the business, and an automaker that's more of a disruptor than the market gives it credit for -- that look extremely attractive as we head in to July.

Warren Buffett in a grey suit.

Image Source: The Motley Fool.

Company (Symbol)

Recent Stock Price

Dividend Yield

Goldman Sachs (NYSE:GS)

$223.26

1.4%

General Motors (NYSE:GM)

$39.50

3.9%

Data Source: CNBC. Prices and dividend yields as of July 3, 2018.

Don't let mediocre stress test results fool you

Unlike most big U.S. banks, Goldman Sachs' shareholders will not be getting a dividend increase in 2018, nor will the bank increase its buyback. The Federal Reserve's annual "stress test" found that Goldman's capital levels would barely remain over the minimally acceptable level during a severe global recession, and as a condition of their capital plans being conditionally approved, the bank's capital return over the next 12 months will not increase.

Understandably, investors were disappointed by this, and Goldman was certainly one of the biggest disappointments of this year's stress tests.

However, it's important not to let this temporary headwind steal the spotlight. For starters, the reason for the poor stress test result in the first place is tax reform -- which will ultimately be a positive catalyst for the bank. Thanks to the deemed repatriation of foreign earnings, Goldman took a big (but one-time) tax hit, which reduced its capital levels.

In addition, Goldman has a lot of good things going for it. The IPO market is the most active it's been in years, M&A activity is strong, and thanks to market volatility, Goldman's trading revenue has been picking up. Plus, Goldman's commercial banking ambitions are starting to produce a significant and rapidly growing revenue stream that has tremendous potential.

The best way to invest in the auto industry

Despite Tesla (NASDAQ:TSLA) grabbing most auto industry-related headlines in the financial news lately, I'd caution investors not to overlook General Motors as a long-term investment.

First off, not only does GM trade at a down-to-earth valuation, but the stock is downright cheap right now at just over six times forward earnings.

While there are certain headwinds facing GM, such as the highly cyclical nature of the auto industry and generally weaker U.S. auto sales in 2018, there are some good reasons to believe in the company for the long haul.

First, the company is investing heavily in product development, such as the recent announcement of a major investment in a Cadillac factor intended to help revitalize the brand. The company is emphasizing its highest-margin products, which include trucks, SUVs, and luxury sedans.

GM is also investing more than rivals in advances such as autonomous vehicle technology, electric vehicles, and ridesharing projects. In fact, SoftBank recently valued GM Cruise Holdings, the company's self-driving unit, at $11.5 billion. To put it mildly, GM Cruise has the potential to be a real game changer for the company from a long-term perspective and could start having a serious impact sooner than you might think.

The bottom line: Don't write off General Motors as an "old-school" car company that's in the process of getting disrupted. The company is putting its resources to work in all of the right ways and is not only keeping up with the newer players like Tesla, it's well on its way to becoming a disruptor itself. And unlike Tesla, General Motors is already highly profitable and pays shareholders a handsome dividend.

Thursday, July 5, 2018

Facebook Admitted to More Shady Dealings – Here's How to Profit

Shah GilaniShah Gilani

Facebook Inc.'s (Nasdaq: FB) stock tumbled 21% in March when revelations surfaced that political analytics firm Cambridge Analytica, which helped guide President Donald Trump's 2016 presidential campaign, paid for data on 87 million Facebook users without their consent.

But after a strong showing by founder and CEO Mark Zuckerberg in front of Congress to address selling of users' data in breach of a 2012 consent decree, Facebook's stock ran right back up to make new all-time highs at $203.55.

Now, in a 747-page document released to Congress last Friday, Facebook admitted giving dozens of companies special access to user data after telling Congress it restricted personal information to outsiders in 2015.

Here's what Facebook's reveal could mean for the stock… and one trade that'll let you rake in mega-gains as a result…

Facebook's Lying Hasn't Hurt Its Stock, Yet

After Zuckerberg's April testimony before Congress, Facebook followed up in June with 450 pages of answers to outstanding questions asked by Senate and House committees.

The latest, more-expansive set of answers delivered to the Energy and Commerce Committee of the U.S. House of Representatives, in response to questions from April, was received shortly before midnight Friday, according to the committee's website�– hours after the close of business Friday, the official deadline for submission.

The new document disclosures follow a Wall Street Journal article in June that reported Facebook struck customized data-sharing deals that gave select companies, such as Nissan Motor Co. Ltd., access to user records for their apps well after the point in 2015 when it said it walled off that information. Nissan is listed in Friday's document.

Almost all the data deals revealed in Friday submission contrast Zuckerberg's and Facebook's former statements that the company restricted personal information to outsiders in 2015.

Start the Countdown: In just FIVE days, you could have a fat check for $23,441 in your mailbox. And the best part is, it's just one short phone call away. Over 80% of eligible seniors may be entitled to this cash. Are you one of them?

According to WSJ, the "special deals were required to give app developers time to become compliant with changes in its policies, and to enable device and software makers to create versions of the social network for their products."

Facebook was sharing information about users' friends�– including name, gender, birth date, hometown, photos, and page likes – with 61 app developers six months after it said it stopped access to such data.

In the hearings, lawmakers asked Zuckerberg if Facebook was ever in violation of a settlement made in 2012 with the Federal Trade Commission, which required the company to give users "clear and prominent notice" and obtain their "express consent" before sharing their information beyond their privacy settings.

Facebook says it hasn't violated the FTC pact.

However, Mark Zuckerberg admitted Facebook hasn't been able to reconstruct what happened to users' data. The company said, "It is possible we have not been able to identify some extensions."

Profit from Facebook's Fall (Without Shorting)

Join the conversation. Click here to jump to comments…

Shah GilaniShah Gilani

About the Author

Browse Shah's articles | View Shah's research services

Shah Gilani is the Event Trading Specialist for Money Map Press. In Zenith Trading Circle Shah reveals the worst companies in the markets - right from his coveted Bankruptcy Almanac - and how readers can trade them over and over again for huge gains.Shah is also the proud founding editor of The Money Zone, where after eight years of development and 11 years of backtesting he has found the edge over stocks, giving his members the opportunity to rake in potential double, triple, or even quadruple-digit profits weekly with just a few quick steps. He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.

… Read full bio