Wednesday, February 27, 2019

Warren Buffett says wealthy should pay more taxes

Warren Buffett said Monday he and other wealthy people are not paying enough when it comes to taxes.

"The wealthy are definitely undertaxed relative to the general population," Buffett told CNBC's Becky Quick on "Squawk Box." "As we get more specialized, the rich will get richer. The question is: How do you take care of a guy who is a wonderful citizen whose father died in Normandy and just doesn't have market skills? I think the income tax credit is the best way to address that."

"That probably means more taxes for guys like me, and I'm fine with it," he said.

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They also come as some lawmakers push for higher taxes on the wealthy, especially Rep. Alexandria Ocasio-Cortez, D-N.Y. Ocasio-Cortez proposed recently a 70 percent marginal tax on incomes over $10 million in an effort to bridge the growing wealth gap between the rich and the poor.

Microsoft co-founder Bill Gates – who is also a close friend of Buffett's – said earlier this month that he supports more "progressive" taxes on this rich, but noted that plans like Ocasio-Cortez's are missing the point. "They have income that just is the value of their stock, which if they don't sell it, it doesn't show up as income at all, or if it shows up, it shows over in the capital gains side. So the ability of hedge fund people, various people – they aren't paying that ordinary income rate," he said.

 (Photo11: The Motley Fool)

Democratic Presidential hopefuls Elizabeth Warren and Bernie Sanders have also proposed higher taxes on the wealthy. Warren's "ultra-millionaire" tax would apply to people with more than $50 million in assets and is projected to raise $2.75 trillion over a 10-year period, according to her team. Sanders, meanwhile, has proposed hiking estate taxes for rich heirs.

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Buffett's comments come after Charlie Munger, his right-hand man, told CNBC earlier this month that states like California and Connecticut have been "stupid" for driving rich people away.

© CNBC is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY. 

Tuesday, February 26, 2019

Visteon Corp (VC) to Post Q2 2019 Earnings of $1.20 Per Share, B. Riley Forecasts

Visteon Corp (NYSE:VC) – B. Riley cut their Q2 2019 earnings per share (EPS) estimates for Visteon in a report issued on Friday, February 22nd. B. Riley analyst C. Horn now forecasts that the auto parts company will post earnings of $1.20 per share for the quarter, down from their prior estimate of $1.35. B. Riley also issued estimates for Visteon’s Q1 2020 earnings at $1.65 EPS, Q2 2020 earnings at $1.55 EPS, Q3 2020 earnings at $1.37 EPS, Q4 2020 earnings at $1.89 EPS and FY2020 earnings at $6.46 EPS.

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Visteon (NYSE:VC) last posted its earnings results on Thursday, February 21st. The auto parts company reported $1.52 earnings per share for the quarter, topping the consensus estimate of $1.03 by $0.49. The business had revenue of $731.00 million for the quarter, compared to analysts’ expectations of $721.02 million. Visteon’s revenue for the quarter was down 8.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.64 EPS.

Other equities research analysts have also recently issued research reports about the company. Robert W. Baird cut Visteon from an “outperform” rating to a “neutral” rating in a research note on Friday, January 4th. Longbow Research set a $110.00 target price on Visteon and gave the stock a “buy” rating in a research note on Friday. Goldman Sachs Group cut Visteon from a “neutral” rating to a “sell” rating and decreased their target price for the stock from $83.00 to $63.00 in a research note on Monday, December 10th. Barclays set a $59.00 target price on Visteon and gave the stock a “hold” rating in a research note on Friday, January 4th. Finally, Deutsche Bank began coverage on Visteon in a research note on Thursday, December 13th. They set a “hold” rating for the company. Three equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and seven have given a buy rating to the stock. Visteon presently has a consensus rating of “Hold” and an average price target of $113.20.

VC stock opened at $89.10 on Monday. Visteon has a fifty-two week low of $56.59 and a fifty-two week high of $139.45.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in VC. BlackRock Inc. increased its position in Visteon by 103.6% during the third quarter. BlackRock Inc. now owns 2,655,521 shares of the auto parts company’s stock worth $246,698,000 after buying an additional 1,351,525 shares during the period. Bank of New York Mellon Corp increased its position in Visteon by 22.2% during the second quarter. Bank of New York Mellon Corp now owns 2,476,560 shares of the auto parts company’s stock worth $320,071,000 after buying an additional 449,197 shares during the period. Janus Henderson Group PLC increased its position in Visteon by 18.2% during the third quarter. Janus Henderson Group PLC now owns 2,209,500 shares of the auto parts company’s stock worth $205,263,000 after buying an additional 340,608 shares during the period. Royce & Associates LP increased its position in Visteon by 37,554.1% during the fourth quarter. Royce & Associates LP now owns 222,912 shares of the auto parts company’s stock worth $13,437,000 after buying an additional 222,320 shares during the period. Finally, Marathon Asset Management LLP acquired a new position in shares of Visteon in the fourth quarter valued at approximately $12,819,000.

In other news, Director Rouzbeh Yassini-Fard purchased 2,000 shares of the business’s stock in a transaction on Wednesday, November 28th. The shares were bought at an average price of $75.57 per share, with a total value of $151,140.00. Following the completion of the transaction, the director now directly owns 2,000 shares in the company, valued at approximately $151,140. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.19% of the company’s stock.

Visteon Company Profile

Visteon Corporation is a global automotive supplier that designs, engineers and manufactures electronics products for original equipment vehicle manufacturer (OEM), including Ford, Mazda, Nissan/Renault, General Motors, Honda BMW and Daimler. The Company operates through Electronics segment. The Electronics segment provides vehicle cockpit electronics products to customers, including instrument clusters, information displays, infotainment, audio systems, telematics solutions and head up displays.

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Earnings History and Estimates for Visteon (NYSE:VC)

Sunday, February 24, 2019

Pore Through Grand Canyon Education's Earnings and Promising Results Emerge

Perhaps no publicly traded company has an earning release as difficult to digest as Grand Canyon Education's (NASDAQ:LOPE). For its entire life on the market, the company has functioned as a typical for-profit educator -- though "typical" isn't fair, as Grand Canyon has done well by its students in terms of debt and graduation rates. It has also built an impressive physical campus where tuition hasn't been hiked in over a decade.

But the waters got much muddier this summer when the company -- Grand Canyon Education (GCE) -- separated from the school -- Grand Canyon University (GCU). After an $800 million-plus payment to GCE, shareholders were left with an educational services company that receives 60% of GCU's tuition and is free to pursue other schools to partner with.

 a man using digital tablet for education, with education and online learning media icons

Image source: Getty Images.

Grand Canyon Education earnings: The raw numbers

As you might expect, this separation makes for some very difficult comparisons year over year. In all the information discussed below, we'll assume that GCE was functioning in the same capacity last year. It will help paint a more accurate picture of where the company is headed.

We'll start with the headline numbers.

Metric

Q4 2018

Q4 2017

Growth

Revenue

$178 million

$163 million

9%

Operating income

$81 million

$70 million

16%

EPS

$1.56

$1.41

11%

Data source: Grand Canyon Education investor relations. Results are on adjusted basis as described above. Revenue, operating income, and growth percentages rounded to nearest whole number. EPS = earnings per share.

Because GCU is GCE's only current customer, enrollment numbers at the school are crucial. For the quarter, the number of students attending the school -- both via remote and on-campus classes -- grew 7.8% to 97,369.

What's truly impressive about these results is the fact that revenue and enrollment were able to grow so fast while costs -- including those associated with advertising and recruiting new students -- rose just 4.2%. That leverage helped operating income and earnings grow faster than revenue.

Speaking on the company's conference call, CEO Brian Mueller -- who also functions as the president of GCU -- said a lot of credit was due to the fact that GCU has reverted back to its not-for-profit status. Because of the history of malfeasance and the stigma attached to for-profit diploma mills, the "for-profit" moniker had deterred students from looking into GCU. Apparently that's no longer the case -- and GCE is reaping the rewards of that change.

What else happened during the quarter?

In January, GCE announced that it had acquired Orbis Education for $366 million. The school focuses on providing degrees in nursing, a profession that is looking at steady growth in the coming decades as more and more baby boomers enter their golden years.

But just as important, Mueller offered a somewhat detailed look into how the company is looking for new partners. Specifically, GCE is looking to offer its expertise in both online education and back-office software to institutions of higher education. But Mueller made it crystal clear it wouldn't be a free-for-all, and the school would be carefully selecting partners moving forward.

He said the company had five potential schools it was talking to last quarter. It has since walked away from two of those schools, is holding ongoing conversations with the other three, and has identified and entered talks with two more schools.

The reasoning for walking away from the two schools is telling. While not revealing their identities -- other than to say one was a state school in the western United States -- Mueller made it clear GCE would not be partnering with schools that could cannibalize (i.e., compete with and take potential students away from) GCU.

He said that talks with one school were very positive and encouraging. But as soon as it came time to nail down the details, GCE realized it would not be a perfect fit. The partner school was too much like GCU -- offering similar programs, at a similar price point, in similar geographies. He stressed over and over again that the ideal partners would all be differentiated. Once a partner school is signed on, it would need to not compete -- geographically, in specialty, or in pricing -- with schools GCE is already serving.

This will obviously limit the total number of potential clients GCE can serve. Short-term investors might scoff at this, but it is likely a prudent long-term move. GCE wants to be partners for the long haul, and because its payment will likely be derived exclusively from a cut of enrollments, it is in GCE's best interest to only serve one master.

Looking ahead

Grand Canyon offered very detailed guidance for the year to come, including the following.

Time Frame

Revenue

EPS

Q1 2019

$195.5 million

$1.49

Q2 2019

$174.4 million

$0.94

Q3 2019

$190.2 million

$1.11

Q4 2019

$215.4 million

$1.56

Full-year 2019

$775.5 million

$5.10

Data source: Grand Canyon Education investor relations.

For those keeping track at home: If GCE hits these revenue numbers, it would represent a 21% increase in revenue -- showing that management clearly believes there's room for enrollment to grow, both at GCE and Orbis. Expected earnings of $5.10 also mean that, at roughly $100 per share, the stock is trading for under 20 times earnings. 

The three major things for shareholders to watch are enrollment figures, continued leverage in recruitment, and announcements about partnerships with schools -- which will likely take time to develop, but should surface within the next 12 to 24 months. 

Thursday, February 21, 2019

Analysts’ Recent Ratings Updates for Rosetta Stone (RST)

Several brokerages have updated their recommendations and price targets on shares of Rosetta Stone (NYSE: RST) in the last few weeks:

2/15/2019 – Rosetta Stone was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $18.00 price target on the stock. According to Zacks, “Rosetta Stone Inc., based in Arlington, Va, is a leading provider of technology-based language learning solutions consisting of software, online services and audio practice tools, primarily under the Rosetta Stone brand. Rosetta Stone offers its self-study language learning solutions in 31 languages. Its customers include individuals, educational institutions, armed forces, government agencies and corporations. Rosetta Stone, Inc. also provides an online peer-to-peer practice environment, known as SharedTalk, at www.sharedtalk.com, where registered language learners meet for language exchange to practice their foreign language skills. As the leading language-learning software in the world, Rosetta Stone makes learning a new language second nature. Millions of learners in more than 150 countries have already used the company’s software to gain the confidence that comes with truly knowing a new language. “ 2/12/2019 – Rosetta Stone was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Rosetta Stone Inc., based in Arlington, Va, is a leading provider of technology-based language learning solutions consisting of software, online services and audio practice tools, primarily under the Rosetta Stone brand. Rosetta Stone offers its self-study language learning solutions in 31 languages. Its customers include individuals, educational institutions, armed forces, government agencies and corporations. Rosetta Stone, Inc. also provides an online peer-to-peer practice environment, known as SharedTalk, at www.sharedtalk.com, where registered language learners meet for language exchange to practice their foreign language skills. As the leading language-learning software in the world, Rosetta Stone makes learning a new language second nature. Millions of learners in more than 150 countries have already used the company’s software to gain the confidence that comes with truly knowing a new language. “ 2/8/2019 – Rosetta Stone was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $17.00 price target on the stock. According to Zacks, “Rosetta Stone Inc., based in Arlington, Va, is a leading provider of technology-based language learning solutions consisting of software, online services and audio practice tools, primarily under the Rosetta Stone brand. Rosetta Stone offers its self-study language learning solutions in 31 languages. Its customers include individuals, educational institutions, armed forces, government agencies and corporations. Rosetta Stone, Inc. also provides an online peer-to-peer practice environment, known as SharedTalk, at www.sharedtalk.com, where registered language learners meet for language exchange to practice their foreign language skills. As the leading language-learning software in the world, Rosetta Stone makes learning a new language second nature. Millions of learners in more than 150 countries have already used the company’s software to gain the confidence that comes with truly knowing a new language. “ 2/4/2019 – Rosetta Stone was downgraded by analysts at ValuEngine from a “strong-buy” rating to a “buy” rating. 2/2/2019 – Rosetta Stone was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $17.00 price target on the stock. According to Zacks, “Rosetta Stone Inc., based in Arlington, Va, is a leading provider of technology-based language learning solutions consisting of software, online services and audio practice tools, primarily under the Rosetta Stone brand. Rosetta Stone offers its self-study language learning solutions in 31 languages. Its customers include individuals, educational institutions, armed forces, government agencies and corporations. Rosetta Stone, Inc. also provides an online peer-to-peer practice environment, known as SharedTalk, at www.sharedtalk.com, where registered language learners meet for language exchange to practice their foreign language skills. As the leading language-learning software in the world, Rosetta Stone makes learning a new language second nature. Millions of learners in more than 150 countries have already used the company’s software to gain the confidence that comes with truly knowing a new language. “ 2/1/2019 – Rosetta Stone was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Rosetta Stone Inc., based in Arlington, Va, is a leading provider of technology-based language learning solutions consisting of software, online services and audio practice tools, primarily under the Rosetta Stone brand. Rosetta Stone offers its self-study language learning solutions in 31 languages. Its customers include individuals, educational institutions, armed forces, government agencies and corporations. Rosetta Stone, Inc. also provides an online peer-to-peer practice environment, known as SharedTalk, at www.sharedtalk.com, where registered language learners meet for language exchange to practice their foreign language skills. As the leading language-learning software in the world, Rosetta Stone makes learning a new language second nature. Millions of learners in more than 150 countries have already used the company’s software to gain the confidence that comes with truly knowing a new language. “ 1/26/2019 – Rosetta Stone was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $17.00 price target on the stock. According to Zacks, “Rosetta Stone Inc., based in Arlington, Va, is a leading provider of technology-based language learning solutions consisting of software, online services and audio practice tools, primarily under the Rosetta Stone brand. Rosetta Stone offers its self-study language learning solutions in 31 languages. Its customers include individuals, educational institutions, armed forces, government agencies and corporations. Rosetta Stone, Inc. also provides an online peer-to-peer practice environment, known as SharedTalk, at www.sharedtalk.com, where registered language learners meet for language exchange to practice their foreign language skills. As the leading language-learning software in the world, Rosetta Stone makes learning a new language second nature. Millions of learners in more than 150 countries have already used the company’s software to gain the confidence that comes with truly knowing a new language. “ 1/25/2019 – Rosetta Stone was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Rosetta Stone Inc., based in Arlington, Va, is a leading provider of technology-based language learning solutions consisting of software, online services and audio practice tools, primarily under the Rosetta Stone brand. Rosetta Stone offers its self-study language learning solutions in 31 languages. Its customers include individuals, educational institutions, armed forces, government agencies and corporations. Rosetta Stone, Inc. also provides an online peer-to-peer practice environment, known as SharedTalk, at www.sharedtalk.com, where registered language learners meet for language exchange to practice their foreign language skills. As the leading language-learning software in the world, Rosetta Stone makes learning a new language second nature. Millions of learners in more than 150 countries have already used the company’s software to gain the confidence that comes with truly knowing a new language. “ 1/17/2019 – Rosetta Stone was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Rosetta Stone Inc., based in Arlington, Va, is a leading provider of technology-based language learning solutions consisting of software, online services and audio practice tools, primarily under the Rosetta Stone brand. Rosetta Stone offers its self-study language learning solutions in 31 languages. Its customers include individuals, educational institutions, armed forces, government agencies and corporations. Rosetta Stone, Inc. also provides an online peer-to-peer practice environment, known as SharedTalk, at www.sharedtalk.com, where registered language learners meet for language exchange to practice their foreign language skills. As the leading language-learning software in the world, Rosetta Stone makes learning a new language second nature. Millions of learners in more than 150 countries have already used the company’s software to gain the confidence that comes with truly knowing a new language. “ 1/15/2019 – Rosetta Stone was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $18.00 price target on the stock. According to Zacks, “Rosetta Stone Inc., based in Arlington, Va, is a leading provider of technology-based language learning solutions consisting of software, online services and audio practice tools, primarily under the Rosetta Stone brand. Rosetta Stone offers its self-study language learning solutions in 31 languages. Its customers include individuals, educational institutions, armed forces, government agencies and corporations. Rosetta Stone, Inc. also provides an online peer-to-peer practice environment, known as SharedTalk, at www.sharedtalk.com, where registered language learners meet for language exchange to practice their foreign language skills. As the leading language-learning software in the world, Rosetta Stone makes learning a new language second nature. Millions of learners in more than 150 countries have already used the company’s software to gain the confidence that comes with truly knowing a new language. “

RST opened at $16.05 on Wednesday. Rosetta Stone Inc has a 12-month low of $12.74 and a 12-month high of $21.54. The company has a market capitalization of $371.73 million, a price-to-earnings ratio of -69.78 and a beta of 0.13.

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Hedge funds have recently bought and sold shares of the company. Great West Life Assurance Co. Can bought a new position in shares of Rosetta Stone during the fourth quarter worth approximately $54,000. Legal & General Group Plc raised its position in Rosetta Stone by 34.8% during the 4th quarter. Legal & General Group Plc now owns 3,936 shares of the software maker’s stock worth $65,000 after purchasing an additional 1,016 shares during the last quarter. Neuburgh Advisers LLC bought a new position in shares of Rosetta Stone in the 4th quarter worth about $76,000. Amundi Pioneer Asset Management Inc. bought a new position in shares of Rosetta Stone in the 4th quarter worth about $94,000. Finally, Citigroup Inc. grew its stake in shares of Rosetta Stone by 14.3% in the 4th quarter. Citigroup Inc. now owns 6,587 shares of the software maker’s stock valued at $108,000 after buying an additional 825 shares during the period. 77.49% of the stock is owned by institutional investors.

Rosetta Stone Inc, together with its subsidiaries, provides technology-based learning products in the United States and internationally. It operates through three segments: Literacy, E&E Language, and Consumer Language. The company develops, markets, and supports a suite of language-learning, literacy, and brain fitness solutions consisting of Web-based software subscriptions, perpetual software products, online and professional services, audio practice products, and mobile applications.

Read More: What does RSI mean?

Wednesday, February 20, 2019

Top Low Price Stocks To Own Right Now

tags:CLDX,LZB,HIFS,ABAX,NWBO,CUI,

Private equity shops thought they saw a sure-fire way to make a buck: build dozens of new power plants fueled by cheap Appalachian natural gas to replace old coal-fired units.

It hasn’t quite turned out that way, at least not yet. Many of the new plants built in the last few years aren’t kicking off as much cash as the buyout firms had expected, according to bankers. There’s not enough demand to support the huge amount of additional new capacity, driving down electricity prices. And with President Donald Trump as a booster, shutdowns of coal haven’t come as quickly as anticipated while states are acting to keep nuclear plants open.

None of the new plants appear in danger of default, analysts said. But several plant owners are now using most of the extra cash they are generating to pay down debt.

Moreover, low prices and the results of a closely watched regional power-price auction scheduled for Wednesday could force many of the gas-fired plants built in the last five years to refinance their debt. At least one new U.S. plant, owned in part by an arm of private equity firm Ares Management LP, recently did so.

Top Low Price Stocks To Own Right Now: Celldex Therapeutics Inc(CLDX)

Advisors' Opinion:
  • [By Motley Fool Staff]

    Celldex (NASDAQ:CLDX) has unveiled thoroughly disappointing results for its lead drug, glembatumumab vedotin (glemba), that casts doubt on its future. Can the company bounce back from this failure?

  • [By Keith Speights]

    If you like putting money into the beaten-down stocks of clinical-stage biotechs, Ziopharm Oncology (NASDAQ:ZIOP) and Celldex Therapeutics (NASDAQ:CLDX) might warrant a look. Ziopharm's share price has dropped more than 25% so far in 2018, while Celldex stock has plunged more than 80%. 

  • [By George Budwell]

    Shares of Celldex Therapeutics (NASDAQ:CLDX), a small-cap cancer company, are down by over 43% in pre-market trading today on extremely heavy volume. What's going on?

  • [By Paul Ausick]

    Celldex Therapeutics Inc. (NASDAQ: CLDX) dropped about 1.6% Wednesday to post a new 52-week low of $0.62. Shares closed at $0.63 on Tuesday and the stock’s 52-week high is $3.26. Volume of around 3.1 million shares was roughly equal to the daily average.The company had no specific news.

  • [By Paul Ausick]

    Celldex Therapeutics Inc. (NASDAQ: CLDX) fell about 3.4% Thursday to post a new 52-week low of $0.56. Shares closed at $0.58 on Wednesday. The 52-week high is $3.26. Volume of around 3.5 million was about equal to the daily average. The company had no specific news.

Top Low Price Stocks To Own Right Now: La-Z-Boy Incorporated(LZB)

Advisors' Opinion:
  • [By Steve Symington]

    Shares of La-Z-Boy Incorporated (NYSE:LZB) were up 12.6% as of 1:30 p.m. EDT on Wednesday after the furniture producer announced strong fiscal first-quarter 2019 results.

  • [By Joseph Griffin]

    Get a free copy of the Zacks research report on La-Z-Boy (LZB)

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

  • [By Joseph Griffin]

    Get a free copy of the Zacks research report on La-Z-Boy (LZB)

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

  • [By Logan Wallace]

    Get a free copy of the Zacks research report on La-Z-Boy (LZB)

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

  • [By Dan Caplinger]

    Thursday was another relatively calm day on Wall Street, with most major benchmarks easing very slightly lower. Fears about Washington scandals and trade tensions between the U.S. and China weighed on enthusiasm over a strong U.S. economy as economists and policymakers met in Jackson Hole, Wyoming, for the Federal Reserve's annual symposium to discuss economic prospects across the globe. At a more granular level, some companies suffered from downbeat news that sent their share prices lower. IAMGOLD (NYSE:IAG), Hertz Global Holdings (NYSE:HTZ), and La-Z-Boy (NYSE:LZB) were among the worst performers on the day. Here's why they did so poorly.

  • [By Shane Hupp]

    Get a free copy of the Zacks research report on La-Z-Boy (LZB)

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

Top Low Price Stocks To Own Right Now: Hingham Institution for Savings(HIFS)

Advisors' Opinion:
  • [By Max Byerly]

    Port Capital LLC lifted its stake in Hingham Institution for Savings (NASDAQ:HIFS) by 14.1% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 48,159 shares of the savings and loans company’s stock after purchasing an additional 5,943 shares during the quarter. Hingham Institution for Savings accounts for approximately 1.4% of Port Capital LLC’s holdings, making the stock its 25th biggest position. Port Capital LLC owned approximately 2.28% of Hingham Institution for Savings worth $9,921,000 at the end of the most recent reporting period.

  • [By Joseph Griffin]

    Epoch Investment Partners Inc. grew its stake in Hingham Institution for Savings (NASDAQ:HIFS) by 71.4% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 92,261 shares of the savings and loans company’s stock after purchasing an additional 38,440 shares during the quarter. Epoch Investment Partners Inc. owned approximately 4.37% of Hingham Institution for Savings worth $19,006,000 as of its most recent SEC filing.

  • [By Ethan Ryder]

    Hingham Institution for Savings (NASDAQ:HIFS) and SVB Financial Group (NASDAQ:SIVB) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Top Low Price Stocks To Own Right Now: ABAXIS Inc.(ABAX)

Advisors' Opinion:
  • [By Max Byerly]

    Tiedemann Advisors LLC bought a new position in shares of Abaxis (NASDAQ:ABAX) in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 3,000 shares of the medical research company’s stock, valued at approximately $213,000.

  • [By Logan Wallace]

    TRADEMARK VIOLATION NOTICE: “Brokerages Expect Abaxis (ABAX) Will Post Earnings of $0.32 Per Share” was posted by Ticker Report and is the sole property of of Ticker Report. If you are reading this news story on another domain, it was illegally copied and republished in violation of U.S. & international copyright and trademark legislation. The original version of this news story can be read at https://www.tickerreport.com/banking-finance/3373644/brokerages-expect-abaxis-abax-will-post-earnings-of-0-32-per-share.html.

  • [By Ethan Ryder]

    Get a free copy of the Zacks research report on Abaxis (ABAX)

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

  • [By Lisa Levin]

    Abaxis, Inc. (NASDAQ: ABAX) shares were also up, gaining 15 percent to $82.75. Zoetis Inc. (NYSE: ZTS) announced plans to acquire Abaxis for $83 per share in cash.

Top Low Price Stocks To Own Right Now: Northwest Biotherapeutics, Inc.(NWBO)

Advisors' Opinion:
  • [By ]

    Northwest Biotherapeutics (OTC:NWBO) presented underwhelming preliminary data from a late-stage study of DCVax-L in brain cancer.

    Community Health Systems (NYSE:CYH) amended to extend the "Early Tender Deadline" and the "Expiration Date" for each Exchange Offer announced earlier.

  • [By ]

    The last time we left Northwest Biotherapeutics (OTC:NWBO), I stated in a fairly cautious article that there are persistent risks associated with an investment in this company. Back in November, I did not feel that the benefits outweighed the risks for this small cap equity.

Top Low Price Stocks To Own Right Now: CUI Global, Inc.(CUI)

Advisors' Opinion:
  • [By Ethan Ryder]

    TESSCO Technologies (NASDAQ: TESS) and CUI Global (NASDAQ:CUI) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Tuesday, February 19, 2019

Stock Market News: Wal-Mart Sees E-Commerce Growth, Medtronic Looks Healthy

Tuesday morning brought a bit of a letdown for the stock market, as major indexes pulled back from their big gains from before the holiday weekend. As of 11 a.m. EST, the Dow Jones Industrial Average (DJINDICES:^DJI) was down 32 points to 25,851. Elsewhere, the S&P 500 (SNPINDEX:^GSPC) lost a fraction of a point to 2,775, but the Nasdaq Composite (NASDAQINDEX:^IXIC) rose 8 points to 7,480.

Earnings season has continued to give a largely positive reading on the U.S. economy, and certain companies releasing their latest financials today had some encouraging things to add. Walmart (NYSE:WMT) and Medtronic (NYSE:MDT) issued their quarterly reports Tuesday morning, and although they're in very different industries, both showed signs of strength heading into 2019.

The big-box giant heads for the e-commerce world

Shares of Walmart jumped 3% after the retail giant released its fourth-quarter financial report. News from the Arkansas-based big-box retailer was good, with revenue growing 2% and adjusted earnings per share rising 6% from year-earlier levels. Comparable sales in the U.S. climbed 4.1%, accelerating from its 2.8% pace in the fourth quarter of the previous year on solid results from the company's namesake Walmart stores and its Sam's Club warehouse locations.

Walmart CEO Doug McMillon attributed the success to the company's strategic vision. "Progress on initiatives to accelerate growth, along with a favorable economic environment," McMillon said, "helped us deliver strong comp sales and gain market share."

Multiple shoppers near the entrance of a Walmart store.

Image source: Walmart.

The CEO also pointed to Walmart's progress in what he described as "the work we're doing to reach customers in a more digitally connected way." E-commerce sales soared 40% for the full year from last year's levels, and Walmart now offers conveniences like grocery pickup and delivery services in hundreds of its locations nationwide. Those services and other digital shopping options are becoming more important in attracting and keeping customers.

Shareholders will also reap the rewards of Walmart's performance in a tangible way, as the company increased its quarterly dividend by $0.01 per share to $0.53. That's a fairly minimal boost, but with projections for 3% sales growth and comps of 2.5% to 3% for Walmart in the coming year, investors are pleased with the progress that the company has made in making its transition toward an increasingly digital world.

Medtronic sees a good year ahead

Medtronic shares were slightly higher following the release of the medical device producer's fiscal third-quarter financial report. The company reported sales growth of 2.4% and adjusted earnings per share gains of about 10%, despite seeing pressure from currency headwinds and relatively weak performance from Medtronic's cardiac and vascular group.

Medtronic's strongest growth came from its minimally invasive therapies and restorative therapies groups, and CEO Omar Ishrak also pointed to good conditions in emerging markets in helping bolster the company's overall gains. Poor sales of cardiac rhythm and heart failure-preventing devices weighed on Medtronic's results, but the medical device giant saw strong demand for products targeting respiratory, gastrointestinal, and renal conditions. Brain therapy devices posted double-digit percentage gains due largely to various neurosurgical and neurovascular products.

Investors are optimistic that Medtronic will soon make more of a splash in the robotic surgery area. After having made key acquisitions to bolster its presence in the business, Medtronic has the resources and ability to challenge other companies that have been highly successful with their robotic systems. That's an area that Medtronic can use to offset headwinds elsewhere, and shareholders hope that the medical device company can keep making strides in that direction. In the meantime, increased guidance for revenue growth and adjusted earnings kept investors happy about Medtronic's prospects.

Monday, February 18, 2019

Should You Claim Social Security at 70?

Decisions, decisions. Many decisions that we make, such as what to have for lunch or whether to wear a blue or black suit to work, don't matter all that much. Other ones, though, such as decisions related to our retirement, can have a significant impact on our future financial security and, therefore, on our future happiness.

A key retirement-related decision that many of us will have to make is when to start collecting our Social Security benefits. You can start as early as age 62 and as late as age 70, and you'll make your benefit checks bigger or smaller depending on whether you start collecting late or early. To make your checks as fat as possible, delay starting to collect until age 70. But should you do that? Not necessarily.

Two lit candles are shown, in front of blurry colored lights, one candle is the number seven and the other is a zero, together representing the number seventy.

Image source: Getty Images.

Here's a look at some reasons you might want to claim your Social Security benefits at age 70 and why you might not.

Reasons to claim Social Security at 70

Let's start with why you might delay collecting until age 70. Know that each of us has a full retirement age at which we can start collecting our "full" retirement benefits -- every dollar to which we're entitled. For most of us these days, that age is about 66 or 67. But for every year beyond your full retirement age that you delay, up to age 70, your benefits will increase in value by about 8%. Delay from 67 to 70, and you can make your checks 24% bigger. That sure seems like a pretty good reason to delay. Here are some more:

You can't afford to retire early. Many people are way behind in their savings for retirement. Thus, they expect to be retiring later than they'd like to. (About 19% of workers 55 and older report having less than $1,000 saved for retirement, according to the 2018 Retirement Confidence Survey.) You don't need the money. If you're lucky enough to not need the income you'd get from Social Security until age 70 or beyond, waiting for bigger checks can be a reasonable choice. You expect to live a long life. An underappreciated fact about Social Security is that if you live an average-length life, your total benefits will be about the same whether you start collecting early or late. Start early and you'll get smaller checks, but there will be many more of them. Thus, if you stand a good chance of living a long life -- and if you aren't in urgent need of income before age 70 -- consider waiting until age 70 for those fatter checks. You earn more than your spouse. If you expect to live an average-length life or even a shorter one, it can still make sense to delay, in some circumstances. For example, imagine that you're married and that you have always earned much more than your wife. You might decide together that she will start collecting early or on time and that you'll try to hang in there until age 70. That way you both get some income early, and much more income, from two checks, once you turn 70. When one of you dies, the survivor will collect only one of those two checks but can take the bigger one. You plan to keep working. If you plan to keep working until age 70 or so, know that Social Security reduces your Social Security check by $1 for every $2 you earn in income from working above $17,640 if you're under your full retirement age. If you're at or older than your full retirement age, your benefits are docked by $1 for every $3 that you earn above $46,920. (These income thresholds are for 2019. They change from time to time.) It's not the end of the world, as those withheld benefits don't disappear; instead, they're used later to increase the size of your monthly payments. Part of a clockface is shown, with the phrase timing is everything on it and the hands pointing to everything.

Image source: Getty Images.

Reasons to not claim Social Security at 70

That's a lot of reasons to consider waiting until age 70 to claim your benefits. But the reasons to not wait are just as compelling, if not more so:

You stand a decent chance of living a life below-average in length. If you're not in good health, or many of your relatives have died young, starting to collect those checks as soon as possible will help you maximize the money you get from the program. You want to retire early -- and can. If you've been diligently socking away money for your retirement and you're just about able to retire early, having Social Security income can help you do so. Retiring early is a great move for most people who can do it, as it means they will be younger at the beginning of retirement, and likely more able to enjoy it, being active, traveling, and perhaps playing some sports. You need the money as soon as possible. While many people retire early because they planned to, many others just end up out of work sooner than they expected, often without enough money to support them comfortably. Thus, getting those Social Security checks can be a lifesaver. You earn less than your spouse. If you've earned less over your working life than your spouse, then your benefit checks are likely going to be smaller than theirs. The two of you might employ the strategy outlined above, with you starting to collect your checks early, while they wait until age 70, if possible. Benefits might be cut in the future. A last consideration is this: Social Security changes from time to time. Benefit levels can change, increases can change, tax rates that support Social Security can change, and so on. The program is facing some challenges in the years ahead, as its years of running a surplus are running out, and while our representatives in Congress can strengthen the program, they may choose not to. Some think it's not a bad move to start collecting your benefits as soon as you can, in case they end up reduced, as you may be grandfathered in at the higher level. Remember that this is just speculation, but it's worth a little consideration.

The decision about when to start collecting Social Security benefits is a personal one, depending on your needs, your financial situation, and any strategies you have in place. Be sure to read up on Social Security, so that you make smart decisions that will maximize your future income.

Sunday, February 17, 2019

O’Reilly Automotive Inc (ORLY) Expected to Announce Quarterly Sales of $2.43 Billion

Equities analysts expect that O’Reilly Automotive Inc (NASDAQ:ORLY) will announce $2.43 billion in sales for the current fiscal quarter, Zacks reports. Seven analysts have provided estimates for O’Reilly Automotive’s earnings. The lowest sales estimate is $2.42 billion and the highest is $2.45 billion. O’Reilly Automotive reported sales of $2.28 billion during the same quarter last year, which would suggest a positive year over year growth rate of 6.6%. The company is expected to announce its next earnings report on Wednesday, April 24th.

According to Zacks, analysts expect that O’Reilly Automotive will report full-year sales of $10.15 billion for the current financial year, with estimates ranging from $10.10 billion to $10.20 billion. For the next financial year, analysts forecast that the firm will post sales of $10.70 billion, with estimates ranging from $10.63 billion to $10.78 billion. Zacks’ sales calculations are an average based on a survey of analysts that follow O’Reilly Automotive.

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O’Reilly Automotive (NASDAQ:ORLY) last announced its quarterly earnings data on Wednesday, February 6th. The specialty retailer reported $3.72 EPS for the quarter, missing the consensus estimate of $3.76 by ($0.04). The company had revenue of $2.32 billion for the quarter, compared to analyst estimates of $2.33 billion. O’Reilly Automotive had a return on equity of 318.99% and a net margin of 13.89%. The business’s quarterly revenue was up 5.7% compared to the same quarter last year. During the same period last year, the business earned $2.90 EPS.

ORLY has been the subject of several recent analyst reports. BidaskClub downgraded shares of O’Reilly Automotive from a “buy” rating to a “hold” rating in a research report on Tuesday, December 11th. Wolfe Research downgraded shares of O’Reilly Automotive from an “outperform” rating to a “market perform” rating in a research report on Friday, October 26th. Wells Fargo & Co raised their price objective on shares of O’Reilly Automotive from $345.00 to $375.00 and gave the stock an “outperform” rating in a research report on Friday, October 26th. Jefferies Financial Group raised their price objective on shares of O’Reilly Automotive from $350.00 to $375.00 and gave the stock a “buy” rating in a research report on Friday, October 26th. Finally, Zacks Investment Research raised shares of O’Reilly Automotive from a “hold” rating to a “buy” rating and set a $381.00 price objective for the company in a research report on Thursday, December 20th. Eight research analysts have rated the stock with a hold rating, eight have given a buy rating and two have assigned a strong buy rating to the stock. O’Reilly Automotive presently has an average rating of “Buy” and a consensus target price of $357.50.

In related news, Chairman Gregory L. Henslee sold 50,000 shares of the stock in a transaction on Tuesday, February 12th. The stock was sold at an average price of $374.37, for a total value of $18,718,500.00. Following the transaction, the chairman now directly owns 65,922 shares in the company, valued at approximately $24,679,219.14. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, COO Jeff M. Shaw sold 3,615 shares of the stock in a transaction on Tuesday, February 12th. The stock was sold at an average price of $375.35, for a total value of $1,356,890.25. Following the completion of the transaction, the chief operating officer now owns 27,832 shares in the company, valued at $10,446,741.20. The disclosure for this sale can be found here. Over the last quarter, insiders sold 55,115 shares of company stock worth $20,639,270. 3.07% of the stock is owned by company insiders.

A number of large investors have recently modified their holdings of ORLY. Advisors Asset Management Inc. lifted its stake in O’Reilly Automotive by 1.8% during the 2nd quarter. Advisors Asset Management Inc. now owns 18,997 shares of the specialty retailer’s stock valued at $5,197,000 after acquiring an additional 344 shares in the last quarter. Bank of New York Mellon Corp lifted its stake in O’Reilly Automotive by 4.6% during the 2nd quarter. Bank of New York Mellon Corp now owns 1,441,213 shares of the specialty retailer’s stock valued at $394,273,000 after acquiring an additional 62,889 shares in the last quarter. Atria Investments LLC lifted its stake in O’Reilly Automotive by 112.9% during the 3rd quarter. Atria Investments LLC now owns 4,891 shares of the specialty retailer’s stock valued at $1,699,000 after acquiring an additional 2,594 shares in the last quarter. Gradient Investments LLC lifted its stake in O’Reilly Automotive by 15,000.0% during the 3rd quarter. Gradient Investments LLC now owns 604 shares of the specialty retailer’s stock valued at $210,000 after acquiring an additional 600 shares in the last quarter. Finally, Bank of Montreal Can lifted its stake in O’Reilly Automotive by 11.5% during the 3rd quarter. Bank of Montreal Can now owns 120,705 shares of the specialty retailer’s stock valued at $41,923,000 after acquiring an additional 12,403 shares in the last quarter. Institutional investors and hedge funds own 93.21% of the company’s stock.

Shares of ORLY stock traded up $4.95 during trading hours on Monday, hitting $388.00. 674,654 shares of the company were exchanged, compared to its average volume of 782,989. The company has a market cap of $31.08 billion, a price-to-earnings ratio of 24.10, a price-to-earnings-growth ratio of 1.38 and a beta of 0.89. O’Reilly Automotive has a fifty-two week low of $217.64 and a fifty-two week high of $388.51. The company has a quick ratio of 0.09, a current ratio of 0.91 and a debt-to-equity ratio of 9.66.

O’Reilly Automotive declared that its Board of Directors has initiated a share repurchase program on Tuesday, November 13th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the specialty retailer to purchase up to 3.6% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.

About O’Reilly Automotive

O'Reilly Automotive, Inc, together with its subsidiaries, engages in the retail of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. The company provides new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature controls, chassis parts, driveline parts, and engine parts; maintenance items comprising oil, antifreeze products, fluids, filters, wiper blades, lighting products, engine additives, and appearance products; and accessories, such as floor mats, seat covers, and truck accessories.

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Saturday, February 16, 2019

Top 5 Warren Buffett Stocks To Buy For 2019

tags:NMT,VOC,NHI,LZB,JAG,

It’s known colloquially as the Midas touch. That’s what Warren Buffett used to turn a $150,000 investment in 1971 into $11 million. In this case, the investment was made in a beach house in Laguna Beach, California.

Buffett, who is famous for his buy-and-hold-almost-forever investing style, paid the equivalent of $900,000 in 2017 dollars for the six-bedroom, six-and-a-half bath house, but even that’s a return of more than 1,000% over 46 years.

Buffett and his first wife bought the house primarily because she liked it. At the time, Laguna Beach was not the up-scale enclave it is currently, but it had potential, as they say. He told The Wall Street Journal that he is selling it now because his family no longer uses it much since his first wife’s death in 2004.

Lisa Mandell at Realtor.com examined both the purchase and the sale of Buffett’s beach house for some tips on a winning investment strategy.

Listen only to those you know and trust
Clearly the first Mrs. Buffett had an eye for a good buy and Mr. Buffett is not likely to have married a fool. Her recommendation was all that was necessary.

Top 5 Warren Buffett Stocks To Buy For 2019: Nuveen Massachusetts Premium Income Municipal Fund(NMT)

Advisors' Opinion:
  • [By Joseph Griffin]

    News articles about Nuveen Massachusetts Pre Income Mun Fd (NYSE:NMT) have been trending somewhat positive this week, according to Accern Sentiment Analysis. The research group ranks the sentiment of media coverage by analyzing more than twenty million news and blog sources. Accern ranks coverage of public companies on a scale of -1 to 1, with scores nearest to one being the most favorable. Nuveen Massachusetts Pre Income Mun Fd earned a daily sentiment score of 0.16 on Accern’s scale. Accern also assigned news stories about the financial services provider an impact score of 47.5987310031013 out of 100, indicating that recent media coverage is somewhat unlikely to have an effect on the stock’s share price in the immediate future.

Top 5 Warren Buffett Stocks To Buy For 2019: VOC Energy Trust(VOC)

Advisors' Opinion:
  • [By Shane Hupp]

    Deutsche Bank AG reduced its position in VOC Energy Trust (NYSE:VOC) by 64.5% in the 4th quarter, Holdings Channel reports. The firm owned 19,000 shares of the oil and gas producer’s stock after selling 34,500 shares during the period. Deutsche Bank AG’s holdings in VOC Energy Trust were worth $112,000 as of its most recent filing with the SEC.

Top 5 Warren Buffett Stocks To Buy For 2019: National Health Investors, Inc.(NHI)

Advisors' Opinion:
  • [By Ethan Ryder]

    Get a free copy of the Zacks research report on National Health Investors (NHI)

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

  • [By Stephan Byrd]

    Shares of National Health Investors, Inc. (NYSE:NHI) have received a consensus rating of “Hold” from the thirteen analysts that are covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and four have issued a buy rating on the company. The average 12-month price target among brokerages that have covered the stock in the last year is $71.43.

  • [By Shane Hupp]

    Virginia Retirement Systems ET AL lifted its position in shares of National Health Investors, Inc. (NYSE:NHI) by 10.1% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 116,300 shares of the real estate investment trust’s stock after acquiring an additional 10,700 shares during the period. Virginia Retirement Systems ET AL owned approximately 0.28% of National Health Investors worth $7,826,000 as of its most recent filing with the Securities & Exchange Commission.

  • [By Shane Hupp]

    Get a free copy of the Zacks research report on National Health Investors (NHI)

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

Top 5 Warren Buffett Stocks To Buy For 2019: La-Z-Boy Incorporated(LZB)

Advisors' Opinion:
  • [By Shane Hupp]

    Get a free copy of the Zacks research report on La-Z-Boy (LZB)

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

  • [By Logan Wallace]

    Get a free copy of the Zacks research report on La-Z-Boy (LZB)

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

  • [By Joseph Griffin]

    Get a free copy of the Zacks research report on La-Z-Boy (LZB)

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

  • [By Garrett Baldwin]

    According to Money Morning Capital Wave Strategist Shah Gilani, we shouldn't be surprised. Here's what you need to know to stay out ahead of the next major crash.

    Three Stocks to Watch Today: ORCL, FDX, GME Oracle Corp. (NYSE: ORCL) will lead a slim roster of earnings reports on Tuesday. Wall Street anticipates that the cloud computing giant will report earnings per share (EPS) of $0.94 on top of $11.20 billion in revenue. FedEx Corp. (NYSE: FDX) will report earnings after the bell. Wall Street anticipates that the shipping giant will report EPS of $5.71 on top of $17.19 billion in revenue. But forget the earnings report. As we noted this week, a major standoff is about to push FDX stock through the roof. Learn more about this huge profit potential. Shares of GameStop Corp. (NYSE: GME) will look to continue their momentum thanks to buyout interest. Multiple media outlets report that private equity companies are exploring potential deals that would take the video game retailer private in the near future. Shares of the Texas-based firm gained nearly 9% yesterday. According to Reuters, Sycamore Partners is one of the firms interested in a potential takeover. Look for an additional earnings report from La-Z-Boy Inc. (NYSE: LZB). The average analyst projection calls for EPS of $0.64 on top of $426.75 million in revenue.

    Follow Money Morning on Twitter, Facebook, and LinkedIn.

  • [By Shane Hupp]

    Get a free copy of the Zacks research report on La-Z-Boy (LZB)

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

Top 5 Warren Buffett Stocks To Buy For 2019: Jagged Peak Energy Inc. (JAG)

Advisors' Opinion:
  • [By Max Byerly]

    Jagged Peak Energy (NYSE:JAG) has been assigned a $16.00 target price by equities researchers at BMO Capital Markets in a report released on Sunday. The firm currently has a “buy” rating on the mining company’s stock. BMO Capital Markets’ price objective indicates a potential upside of 11.50% from the stock’s current price.

  • [By Motley Fool Staff]

    JAGGED PEAK ENERGY INC. (NYSE:JAG) Q1 2018 Earnings Conference CallMay. 11, 2018 11:00 a.m. ET

    Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:

    Operator

  • [By Lisa Levin]

     

    Companies Reporting After The Bell NVIDIA Corporation (NASDAQ: NVDA) is estimated to post quarterly earnings at $1.45 per share on revenue of $2.89 billion. News Corporation (NASDAQ: NWSA) is projected to post quarterly earnings at $0.07 per share on revenue of $1.99 billion. Symantec Corporation (NASDAQ: SYMC) is estimated to post quarterly earnings at $0.39 per share on revenue of $1.19 billion. Pilgrim's Pride Corporation (NASDAQ: PPC) is projected to post quarterly earnings at $0.54 per share on revenue of $2.65 billion. Hawaiian Electric Industries, Inc. (NYSE: HE) is expected to post quarterly earnings at $0.38 per share on revenue of $556.81 million. Air Lease Corporation (NYSE: AL) is estimated to post quarterly earnings at $1.01 per share on revenue of $383.37 million. Flowserve Corporation (NYSE: FLS) is expected to post quarterly earnings at $0.27 per share on revenue of $880.89 million. Civitas Solutions, Inc. (NYSE: CIVI) is projected to post quarterly earnings at $0.12 per share on revenue of $396.25 million. The Trade Desk, Inc. (NASDAQ: TTD) is estimated to post quarterly earnings at $0.1 per share on revenue of $73.23 million. Amdocs Limited (NYSE: DOX) is projected to post quarterly earnings at $0.95 per share on revenue of $980.50 million. Yelp Inc. (NYSE: YELP) is estimated to post quarterly loss at $0.04 per share on revenue of $220.14 million. Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) is expected to post quarterly earnings at $0.43 per share on revenue of $210.01 million. TiVo Corporation (NASDAQ: TIVO) is projected to post quarterly earnings at $0.37 per share on revenue of $198.62 million. Ritchie Bros. Auctioneers Incorporated (NYSE: RBA) is expected to post quarterly earnings at $0.17 per share on revenue of $153.87 million. Uniti Group Inc. (NASDAQ: UNIT) is estimated to post quarterly earnings at $0.01 per share on revenue of $247.16 million. Jagged Peak En
  • [By Ethan Ryder]

    Royal Dutch Shell plc ADR Class A (NYSE: RDS.A) and Jagged Peak Energy (NYSE:JAG) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

  • [By Max Byerly]

    Get a free copy of the Zacks research report on Jagged Peak Energy (JAG)

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

  • [By Stephan Byrd]

    Jagged Peak Energy (NYSE:JAG) had its target price increased by equities researchers at Credit Suisse Group from $15.00 to $16.00 in a report released on Friday. The brokerage presently has a “neutral” rating on the mining company’s stock. Credit Suisse Group’s price objective would suggest a potential upside of 10.34% from the stock’s previous close.

Friday, February 15, 2019

Cerity Partners LLC Has $1.76 Million Holdings in Allergan plc (AGN)

Cerity Partners LLC lessened its stake in shares of Allergan plc (NYSE:AGN) by 44.2% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 13,192 shares of the company’s stock after selling 10,467 shares during the period. Cerity Partners LLC’s holdings in Allergan were worth $1,763,000 as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in AGN. Oregon Public Employees Retirement Fund boosted its position in shares of Allergan by 14,208.8% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 20,762,744 shares of the company’s stock valued at $155,000 after acquiring an additional 20,617,639 shares during the period. Edgewood Management LLC boosted its position in shares of Allergan by 1.5% in the third quarter. Edgewood Management LLC now owns 5,815,362 shares of the company’s stock valued at $1,107,710,000 after acquiring an additional 86,971 shares during the period. Franklin Resources Inc. boosted its position in shares of Allergan by 1.7% in the third quarter. Franklin Resources Inc. now owns 5,131,825 shares of the company’s stock valued at $977,516,000 after acquiring an additional 84,911 shares during the period. Bank of New York Mellon Corp boosted its position in shares of Allergan by 2.6% in the third quarter. Bank of New York Mellon Corp now owns 3,637,854 shares of the company’s stock valued at $692,939,000 after acquiring an additional 92,297 shares during the period. Finally, The Manufacturers Life Insurance Company boosted its position in shares of Allergan by 1.8% in the third quarter. The Manufacturers Life Insurance Company now owns 3,427,945 shares of the company’s stock valued at $652,955,000 after acquiring an additional 60,239 shares during the period. Institutional investors own 84.04% of the company’s stock.

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AGN has been the subject of several research reports. Morgan Stanley set a $183.00 price objective on Allergan and gave the company a “buy” rating in a research report on Thursday, December 20th. Credit Suisse Group set a $200.00 price objective on Allergan and gave the company a “buy” rating in a research report on Thursday, December 13th. Royal Bank of Canada set a $220.00 price objective on Allergan and gave the company a “buy” rating in a research report on Friday, November 30th. Wells Fargo & Co reissued a “buy” rating on shares of Allergan in a research report on Wednesday, October 31st. Finally, Raymond James reduced their price objective on Allergan from $232.00 to $198.00 and set a “buy” rating for the company in a research report on Wednesday, October 31st. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and thirteen have issued a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus price target of $199.79.

Shares of AGN stock opened at $138.67 on Friday. The firm has a market capitalization of $47.33 billion, a P/E ratio of 8.31, a PEG ratio of 1.11 and a beta of 1.43. Allergan plc has a one year low of $125.84 and a one year high of $197.00. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.51 and a quick ratio of 1.34.

Allergan (NYSE:AGN) last issued its earnings results on Tuesday, January 29th. The company reported $4.29 EPS for the quarter, topping the consensus estimate of $4.15 by $0.14. The firm had revenue of $4.08 billion during the quarter, compared to analysts’ expectations of $4 billion. Allergan had a positive return on equity of 8.18% and a negative net margin of 32.28%. Allergan’s quarterly revenue was down 5.7% compared to the same quarter last year. During the same period last year, the business earned $4.86 earnings per share. As a group, sell-side analysts predict that Allergan plc will post 16.35 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Friday, March 15th. Investors of record on Friday, February 15th will be given a $0.74 dividend. This is a boost from Allergan’s previous quarterly dividend of $0.72. This represents a $2.96 annualized dividend and a yield of 2.13%. The ex-dividend date of this dividend is Thursday, February 14th. Allergan’s dividend payout ratio (DPR) is 17.26%.

Allergan declared that its Board of Directors has approved a stock repurchase program on Tuesday, January 29th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the company to purchase up to 4.1% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its shares are undervalued.

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Allergan Company Profile

Allergan plc, a pharmaceutical company, develops, manufactures, and commercializes branded pharmaceutical, device, biologic, surgical, and regenerative medicine products worldwide. It operates through US Specialized Therapeutics, US General Medicine, and International segments. The company offers a portfolio of products for the central nervous system, eye care, medical aesthetics and dermatology, gastroenterology, women's health, urology, and anti-infective therapeutic categories.

See Also: What is the Book Value of a Share?

Institutional Ownership by Quarter for Allergan (NYSE:AGN)

Thursday, February 14, 2019

Don’t Count on Apex Legends to Save Electronic Arts Stock

Electronic Arts (NASDAQ:EA) has desperately needed good news of late. Electronic Arts stock touched a two-year low in December, at which point EA had shed half of its value. Even with some dip-buyers arriving in the past few weeks, EA remained well off its highs.

A third-quarter earnings report that disappointed — as even EA management admitted — sent Electronic Arts shares tumbling again. The success of Epic Games’ Fortnite continued to weigh on EA as well as public rivals Activision Blizzard (NASDAQ:ATVI) and Take-Two Interactive (NASDAQ:TTWO).

But EA finally has received the good news it was looking for. The company’s Apex Legends — a battle royale-style game in the mold of Fortnite — looks like a hit. And it’s done wonders for EA stock.

As of this writing, Electronic Arts stock has bounced 25% in three-and-a-half trading sessions. The strength isn’t coming from the sector — TTWO and ATVI remain at the lows — and it isn’t coming from the rest of the portfolio given the weak fiscal Q3 report. The early strength of Apex Legends simply has driven that much optimism toward EA stock.

Some optimism is merited. But the 25% gain here looks to be too much. It already prices much — if not all — of the game’s potential success. And it ignores the fact that the rest of Electronic Arts’ portfolio has some very real concerns.

Apex Legends Drives EA Stock Higher

To be sure, Apex Legends is a big potential mover for Electronic Arts stock. The game has signed up more customers faster than Fortnite did. Analyst firm Baird estimated potential 2020 revenue of $500 million. Bank of America estimated a high-side case of $600 million.

Against trailing-twelve-month revenue of $5.3 billion, the game could drive an additional 10% in revenue. Considering the high margins on incremental revenue, meanwhile, the profit contribution could be even higher.

Estimating the exact potential of Apex Legends remains a guessing game, but the impact on EA stock could be huge. Fortnite, according to one source, generated $2.4 billion in revenue last year. According to another, Epic Games booked some $3 billion in profit. (That latter figure seems aggressive, however, given a reported valuation of $15 billion for Epic.)

Apex Legends, then, doesn’t have to be the ‘next’ Fortnite to have a material impact on EA financials. Even a second-place standing would provide solid growth against EA’s current totals of about $5.3 billion in revenue and a little over $1 billion in adjusted net income.

Has the Rally Gone Too Far?

That said, the rally of late has incorporated quite a bit of upside from Apex Legends. EA stock has added roughly $5 billion in market value in the last four sessions. There may have been some help from a “dead cat bounce” following the disappointing Q3 report. But whatever the exact figure, the market already has added at least a few billion dollars to EA’s valuation based on the early returns from the game. In other words, a solid second-place standing relative to Fortnite already looks close to priced in.

Meanwhile, “early returns” is the operative figure there. The game itself still has a long way to go. And Electronic Arts itself has to figure out how to monetize the game wisely. That will require some nimble movements, considering that EA undermined consumers’ trust with its ham-handed efforts around Star Wars Battlefront II. EA also has to make sure not to cannibalize Apex Legends with the March launch of the battle royale update for Battlefield V.

At the least, given its experience with Battlefront, EA is likely to go slow in terms of managing in-game monetization. And so investors expecting a big boost to near-term financials from Apex Legends may be disappointed.

The Other Risks to Electronic Arts Stock Persist

After the rally past $100, there is a case for caution here. Apex Legends is a potential hit — but investors have noticed, and bid EA stock up accordingly. And EA still needs to capitalize on the early momentum — and properly manage its revenue and profit potential going forward.

Meanwhile, in the rest of the portfolio, nothing has changed since the Q3 report. Growth concerns persist. FIFA 19 — historically the company’s largest game, at 11% of revenue — sales were below expectations. The sports portfolio on the whole, per the Q3 conference call, is expected to see revenue flat to up 5% in 2020. Battlefield V, too,  has disappointed.

That’s not changing any time soon. Overall, according to the call, bookings are supposed to grow just low single-digits in fiscal 2020. So are earnings. Margin benefits from the shift to digital — as EA sold games direct instead of through retailers like GameStop (NYSE:GME) — are moderating. In-game monetization revenue growth is slowing substantially.

There’s simply not a lot of growth left in the legacy portfolio — which is why investors have punished EA stock over the past few months. And yet EA stock, against current FY20 estimates, trades at 25x this year’s adjusted EPS guidance even backing out net cash.

That’s a multiple that already assigns quite a bit of success to Apex Legends. So does the 25% rally in EA stock. To keep the rally going over the long-term, EA is going to have to succeed with Apex Legends and find more growth elsewhere.

As of this writing, Vince Martin has no positions in any securities mentioned.

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Wednesday, February 13, 2019

Deere downgraded as trade talk deadline nears

The success of Deere is now on hold until the U.S. and China resolve their trade dispute and relieve the swelling soybean inventory, according to Bank of America Merrill Lynch.

The brokerage downgraded the tractor supplier to a neutral rating from a buy rating Wednesday, two days before the company's first-quarter profit and sales report. Analyst Ross Gilardi wrote in a note to clients that the decision to cut Deere's rating was based on the lack of apparent progress between Washington and Beijing and weaker demand for construction equipment.

Those two factors combined make it unlikely Deere will raise its fiscal 2019 outlook and maintain its current premium to rival machinery maker Caterpillar, Gilardi told clients. The analyst also lowered his 12-month price target on Deere stock to $170 and trimmed his fiscal year 2019 earnings per share estimate to $11.25.

"Judging by Deere's dramatic outperformance, investors seem complacent that China will lift their retaliatory soybean tariffs on the U.S.," Gilardi wrote. "If the tariffs aren't lifted, and China continues to shun U.S. soybean imports, U.S. farmers will face rising uncertainty into spring planting as U.S. soybean inventories are already soaring. In our view, this is a real risk to farm equipment demand in the second half of 2019."

As one of the world's largest manufacturers of farming machinery, Deere could take a hit if U.S.-China trade negotiations don't improve. Soybean shipments offloaded in China in the first two weeks of 2019 were down about 37 percent from the first two weeks of 2018, according to tanker-tracking firm ClipperData. Soybeans account for 40 percent of area harvested for the U.S. farmer, according to Bank of America.

China, the world's latest soybean consumer, has pivoted to Brazil and other exporters for its supplies since slapping tariffs on U.S.-based soybeans.

Beijing imposed levies of between 5 and 10 percent on $60 billion worth of U.S. products effective Sept. 24 in response to the Trump administration's tariffs of 10 percent on $200 billion of Chinese goods. If the two economic powerhouses fail to reach an agreement by March 2, those U.S. levies will increase to 25 percent.

"It's remarkable to us that Caterpillar is viewed by many as the poster child of the U.S.-China trade war, while Deere is viewed by many to be far less vulnerable," Gilardi added. "In reality, Deere is as embroiled to the U.S.-China trade war as any company we follow due to China's retaliatory tariffs on U.S. soybeans."

Soybean stocks to use have jumped to 22.2 percent, "materially above" above long-term averages, the analyst wrote. The historic oversupply hasn't had too much of a negative impact thus far on equipment demand as U.S. farmers have been able to monetize a significant portion of last year's crop at a decent price and have been compensated by the federal government.

However, if the trade dispute isn't resolved by the onset of the planting season, agrarians could shift growing to corn en masse, creating another commodity glut.

The "soybean tariffs need to disappear," the analyst wrote.

Disclaimer

Component Price Targets Imply 12% Gains Ahead For S&P 500

&l;p&g;&l;img class=&q;dam-image getty size-large wp-image-1126214177&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/1126214177/960x0.jpg?fit=scale&q; data-height=&q;720&q; data-width=&q;960&q;&g; Getty

The financial media loves to get predictions from experts about where they think the S&a;amp;P 500 index is headed. Some experts look at technical analysis patterns, others look at valuation metrics, others apply a broad macro view of the economy. In this article, we present another forecasting approach that investors may find interesting. The S&a;amp;P 500 is really a collection of five hundred individual stocks, each with specified weighting applied towards the total. For each of those individual stocks, all of the major brokerage houses out there ask their best analysts to thoroughly study the company and then come up with a 12-month price target. Taking all of the different price targets from all of the major analysts, we can then compute an average target for that stock. In a sense this average target represents a &q;wisdom of crowds&q; effort, because so many individual minds contributed to the ultimate number, as opposed to what just one particular expert believes.

But we can take it a step further, comparing the current stock price against that average analyst target, to calculate how much upside exists if the average target price is reached, and we can do that same exercise for each and every component. Here at &l;a href=&q;https://www.etfchannel.com/&q; target=&q;_blank&q;&g;ETF Channel&l;/a&g;, we have done this exercise for all of the individual components of the SPDR S&a;amp;P 500 ETF and then weighted the results together to determine the implied average analyst target for the ETF itself. For the SPDR S&a;amp;P 500 ETF, we found that the implied analyst target price for the ETF based upon its underlying holdings is $303.71 per unit.

With SPY trading at a recent price near $270.54 per unit, that means that analysts see 12.26% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SPY&s;s underlying holdings with notable upside to their analyst target prices are Pentair, Arista Networks and Alphabet. Although PNR has traded at a recent price of $41.00/share, the average analyst target is 24.39% higher at $51.00/share. Similarly, ANET has 23.69% upside from the recent share price of $226.34 if the average analyst target price of $279.95/share is reached, and analysts on average are expecting GOOGL to reach a target price of $1336.62/share, which is 21.25% above the recent price of $1102.38.

Below is a summary table of the current analyst target prices discussed above:

&a;nbsp;

&l;/p&g;&l;div class=&q;table-wrapper&q;&g;&l;table class=&q;hctblstyle&q; border=&q;0&q; cellspacing=&q;0&q; cellpadding=&q;0&q;&g;&l;tbody&g;&l;tr&g;&l;th&g;Name&l;/th&g; &l;th align=&q;center&q;&g;Symbol&l;/th&g; &l;th align=&q;right&q;&g;Recent Price&l;/th&g; &l;th align=&q;right&q;&g;Avg. Analyst 12-Mo. Target&l;/th&g; &l;th align=&q;right&q;&g;% Upside to Target&l;/th&g; &l;/tr&g;&l;tr&g;&l;td&g;&l;b&g;SPDR S&a;amp;P 500 ETF&l;/b&g;&l;/td&g; &l;td align=&q;center&q;&g;&l;b&g;SPY&l;/b&g;&l;/td&g; &l;td align=&q;right&q;&g;&l;b&g;$270.54&l;/b&g;&l;/td&g; &l;td align=&q;right&q;&g;&l;b&g;$303.71&l;/b&g;&l;/td&g; &l;td align=&q;right&q;&g;&l;b&g;12.26%&l;/b&g;&l;/td&g; &l;/tr&g;&l;tr&g;&l;td&g;Pentair PLC&l;/td&g; &l;td align=&q;center&q;&g;PNR&l;/td&g; &l;td align=&q;right&q;&g;$41.00&l;/td&g; &l;td align=&q;right&q;&g;$51.00&l;/td&g; &l;td align=&q;right&q;&g;24.39%&l;/td&g; &l;/tr&g;&l;tr&g;&l;td&g;Arista Networks Inc&l;/td&g; &l;td align=&q;center&q;&g;ANET&l;/td&g; &l;td align=&q;right&q;&g;$226.34&l;/td&g; &l;td align=&q;right&q;&g;$279.95&l;/td&g; &l;td align=&q;right&q;&g;23.69%&l;/td&g; &l;/tr&g;&l;tr&g;&l;td&g;Alphabet Inc&l;/td&g; &l;td align=&q;center&q;&g;GOOGL&l;/td&g; &l;td align=&q;right&q;&g;$1102.38&l;/td&g; &l;td align=&q;right&q;&g;$1336.62&l;/td&g; &l;td align=&q;right&q;&g;21.25%&l;/td&g; &l;/tr&g;&l;/tbody&g;&l;/table&g;&l;/div&g;

Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock&s;s trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.

&l;a href=&q;http://www.etfchannel.com/slideshows/ten-etfs-with-most-upside/&q; target=&q;_blank&q;&g;Click here to find out 10 ETFs With Most Upside To Analyst Targets &a;raquo;&l;/a&g;

Monday, February 11, 2019

Going Dark on Applicants Can Really Hurt Your Recruiting Process

It takes time to recruit new talent for any given business. After all, rushing through the process could result in the wrong hire, and that's the last thing your company wants.

Having too lengthy a process, however, can hurt your company as well -- especially if you don't communicate properly with applicants throughout it. Close to 25% of workers lose interest in a job or employer if they don't hear back within a week of their initial interview, according to staffing firm Robert Half. Meanwhile, an additional 46% lose interest if they don't hear back within two weeks. If your business has been struggling to fill open roles, it may be time to rethink your recruiting process -- and the way you stay in touch with candidates throughout it.

Keeping applicants in the know

It takes time to review resumes, schedule interviews, and actually move candidates through the pipeline. The last thing you want, therefore, is to have viable applicants drop out because you're taking too long to get back to them. A better bet, therefore, is to streamline the recruiting process and improve your communication with candidates each step of the way.

Two men at table sitting across from each other

IMAGE SOURCE: GETTY IMAGES.

First, establish what you consider to be a reasonable timeline for recruiting. A good start would be to reach out to potential hires within a week of receiving their resumes to schedule an initial interview. Such a lag is generally acceptable, because it's conceivable that you'll need time to vet applications before narrowing down your applicant pool.

Once that initial interview happens, however, you should aim to provide candidates with some sort of update within 48 business hours. That update might entail nothing more than a brief "we enjoyed meeting with you and will be in touch shortly to discuss next steps," but it's better than going completely silent on candidates.

Furthermore, if you know you'll be interviewing numerous candidates for a given role, be transparent about that during the process. Telling a candidate that he or she is the first of eight interviewees, and setting the expectation that a follow-up meeting might not happen for two weeks, might sway that person to be a little more patient in light of a communication lag.

That said, once you've reached the point where candidates have come in for a second interview, there's no excuse for not letting them know where things stand right away. If you're looking to make an offer but haven't yet ironed out its terms, reach out and say so. If the person who officially needs to sign off on that offer is unexpectedly out of the office for personal reasons, make that clear as well. Sometimes, the simplest communication could spell the difference between retaining a candidate's interest or losing that person, whether it's as a result of a competitor offer or a general sense of getting fed up at being kept waiting in the dark.

Sunday, February 10, 2019

Upcoming Earnings Reports to Watch: ATVI, KO, CSCO

The market’s remarkable New Year momentum cooled this week, but major indexes managed to notch a rally into the green on Friday afternoon, easing some concerns about fresh trade uncertainties ahead of the weekend.

Wall Street is also over the hump of Q4 earnings season, as more than half of the S&P 500’s member companies have now filed their latest results. Returns have been impressive during earnings season despite mixed numbers and shaky guidance in certain industries, but there certainly feels like enough marquee reports yet to come that could paint a clearer picture of this season’s overarching theme.

With that said, investors should remember to use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your own portfolio.

Today, we’re going to take a look at a few of the upcoming week’s most important reports. This is an incomplete list, no doubt. The companies below, in our view, simply carry the heaviest narratives into their reports, and they should serve as great indicators for their broader industries.

Check out our top earnings reports to watch for the week of February 11:

1. Activision Blizzard, Inc. (ATVI )

Activision Blizzard was battered this week amid weak results from industry rivals EA (EA ) and Take-Two (TTWO ) , which both cited continued pressure from free-to-play games such as Fortnite as headwinds for their businesses. Moreover, ATVI has lost about half its value in the past four months as investors have grown more skeptical about traditional video game publishers.

The maker of Call of Duty will try to revert that trend with a better report of its own next week. Analysts are expecting adjusted earnings of $1.29 per share, according to our latest Zacks Consensus Estimate. This consensus, which represents year-over-year growth of 37%, has moved a penny lower in the past 60 days as some downward estimate revisions have been published. Revenue is expected to be $3.1 billion, up nearly 16% from the year-ago quarter.

 

2. Cisco Systems, Inc. (CSCO )

Cisco shares have rallied more than 15% from their Christmas Eve lows and are heading into the report date with impressive momentum. The IT giant will publish its report after the market closes on Wednesday. It has met or surpassed earnings estimates in every quarter we have on record, dating back to late 2015.

Cisco will look to continue that streak by outperforming a consensus estimate of $0.72 in earnings per share. This consensus has moved a penny higher over the past quarter and would mark growth of 14% from the prior-year period. Revenue estimates are calling for net sales of $12.4 billion, up about 4% year over year.

 

3. The Coca-Cola Company (KO )

Coca-Cola is scheduled to report its latest results before the opening bell on February 14. KO shares are up about 5% in the past month but are just about flat in the past 12 weeks. The soft beverage icon’s annual dividend is yielding 3.2% right now. The company has a multi-year history of raising its payout and could be set to do so again.

Based on our latest Zacks Consensus Estimates, it looks like analysts are expecting earnings of $0.43 per share and revenue of $7.1 billion. These results would represent year-over-year growth rates of 10% and -6%. The earnings consensus has moved a penny higher in the past 60 days.

 

 

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Saturday, February 9, 2019

Getting a Pay Raise? Do These 4 Things First

Expecting something extra in your paycheck soon? You're not alone.

Employers expect to provide employees with an average raise of 3.1 percent in 2019, according to a recent survey by the advisory firm Willis Towers Watson. If you're among the employees due for a raise, you might be surprised at just how much even a modest salary bump can improve your financial fortunes.

Several ladders and a target on the wall

Image Source: Getty Images

"Have fun with some of that money, but if you reduce debt and save some of it, too, it can pay huge dividends down the road," said Gerri Walsh, president of the FINRA Foundation. "Time is your friend when it comes to saving: If you save $100 a month, at a 5 percent rate of return, in 30 years you'll have over $80,000."

Here are four smart uses for the extra cash that comes with a raise.

1. Pay down debt.

A raise is an opportunity to chip away or eliminate high-interest debt, such as credit card debt. Few money management strategies pay off as well as, or with less risk, than paying off all of your high interest debt. Chipping away at high-interest debt can save you hundreds, even thousands of dollars in the long run.

TIP: Consider funneling the extra cash from your raise to one of these three debt repayment strategies.

2. Boost your emergency savings.

If something unexpected came up, like a medical or car expense, could you come up with $2,000 within the next month? About 34 percent of Americans probably or certainly could not come up with that money, according to a study by the FINRA Investor Education Foundation. And 54 percent of Americans don't have enough saved in "rainy day" funds to cover three months' worth of living expenses.

If you've been procrastinating on establishing an emergency savings fund, your pay raise could be a great motivator to get serious about saving for the unexpected.

3. Increase your retirement contributions.

A pay raise can be an opportunity to put additional money into your retirement savings. If your employer offers matching 401(k) contributions, one wise way to use your raise is to increase your 401(k) contribution to take greater advantage of your employer's match. When it comes to matches, it's rarely a good idea to leave free money on the table.

Even if you are already taking full advantage of any matching contribution, it could be a good time to up your contribution if you are still under the federal maximum 401(k) contribution limit ($19,000 in 2019, or $26,000 if you are over 50 years old). You may also want to consider contributing to other retirement accounts, such as traditional or Roth IRAs.

4. Invest in your future.

Saving for retirement is always a solid financial goal, but most of us have other financial goals, too. Your raise could be a step toward achieving them. Make a list of your financial goals and estimate how much each will cost. Want to go on a fabulous vacation? Get a degree? Buy a house? Save for a child's education? Write it all down. Then, separate your goals into categories—short, medium and long-term—and set up savings and investment accounts for each one. It's easy to think you're saving enough money, but keeping separate accounts allows you to keep track of exactly how close you are to achieving each goal.

Subscribe to FINRA's The Alert Investor newsletter for more information about saving and investing.

Friday, February 8, 2019

Cramer on Bezos saga: 'If you're selling Amazon off this, you're really stupid'

CNBC's Jim Cramer is warning investors against acting rashly towards Amazon stock, in the wake of Jeff Bezos accusing the National Enquirer's of blackmail over sexual photos texted to his mistress, Lauren Sanchez.

"If you're selling Amazon off this you're really stupid," Cramer said on "Squawk on the Street."

The owner of the Enquirer — David Pecker's American Media, Inc. — released a statement Friday morning denying Bezos' claims. It read in part, "American Media believes fervently that it acted lawfully in the reporting of the story of Mr. Bezos," adding however that its board "should promptly and thoroughly investigate the claims."

In a Thursday blog post headlined, "No thank you, Mr. Pecker," Bezos claims that AMI asked him to publicly deny any political motivation in the Enquirer's coverage of his divorce, in exchange for not publishing photos he texted Sanchez, including a "below the belt selfie."

Bezos and his wife, MacKenzie, announced their divorce on Jan. 9. Later that day, the Enquirer broke news about Bezos' affair with Sanchez.

While shrugging off the alleged Enquirer extortion, Cramer did say it's reasonable for investors to be concerned about how Bezos' divorce might impact Amazon stock, as any separation agreement would make MacKenzie a major shareholder of the e-commerce giant.

"Isn't the issue the dumping of the stock by his soon-to-be ex-wife? The stock is down huge on that," said the "Mad Money" host, whose charitable trust owns Amazon shares. "People are worried she'll blow out of the stock."

However, Cramer countered that argument, saying "focus on the fundamentals" at Amazon.

Bezos, best known for founding Amazon, is still the company's largest shareholder by far, owning 16.3 percent of its shares, according to the company's 2018 proxy statement. Washington state, where Amazon is headquartered and the Bezoses own a home, is a "community property" state, meaning if the couple files for divorce there, all assets and debts accrued during their marriage will be considered owned by both husband and wife.

— CNBC's Lauren Feiner contributed to this report.

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