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    These BNPL Stocks are the Future of the Fintech Market

    By
    Editorial Staff
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    0

    The fintech (financial technology) industry started to make headway during the pandemic. There was economic stress, and the lockdowns influenced the need to manage our finances digitally (and remotely). 

    BNPL (Buy Now, Pay Later) stocks represent companies that offer short-term loans; adding to the appeal is that they usually have fixed installment payments without interest or hidden charges. 

    BNPL loans can be profitable for the fintech market but carry the risk of repayment default. Some companies utilize AI to evaluate the loans and lessen this risk, which is also a natural risk for any loan. That shouldn’t deter investors from considering a fintech stock as a portfolio addition. 

    The best “Buy Now, Pay Later” stocks will only continue to grow as the demand for those types of loans increases as well. These stocks are in it to win and win big… 

    Block Inc (SQ) 

    Formerly known as Square, Block (SQ) is a global tech firm focusing on providing financial services. Its comprehensive platform comprises various individual services for business growth, including the popular “Cash App.” SQ acquired Afterpay in 2022 for $29 billion and integrated its BNPL platform into both Square and Cash App. This integration enables customers to make interest-free installment payments on SQ’s loans over a six-week period, driving a 40% increase in spending per transaction and a 50% increase in shopping frequency. This strategic acquisition has positioned SQ as a strong contender in the evolving “Buy Now, Pay Later” landscape, bolstering its potential as an investment. 

    SQ is currently down year-to-date by 8.08%, is trading near the bottom of its existing 52-week range, has a 1.05x PEG (price/earnings to growth) ratio, and a TTM (trailing twelve-month) asset growth measure of 7.58%. At its Q2 2023 earnings call, SQ exceeded analysts’ projections on EPS and revenue by 5.09% and 8.49%, respectively. SQ also reported positive year-over-year growth in revenue (+25.67%), net income (+41.11%), EPS (+44.44%), and net profit margin (+53.18%). For the current fiscal quarter, SQ is expected to post $5.2 billion in sales at $0.46 per share, with a projected 3-5 year EPS growth rate of 26.3%. With a 10-day average volume of 9.10 million shares, SQ has a median price target of $88, with a high of $110 and a low of $34.98; this suggests the potential for a price upside of over 90% from its current price. 

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    Affirm Holdings Inc (AFRM) 

    Affirm Holdings Inc. (AFRM) excels at crafting financial products that boost business sales and encourage responsible consumer spending and saving. Renowned for its BNPL loans, AFRM offers clear, interest-free repayment options with no hidden fees. AFRM’s revenue streams encompass its merchant discount rates, interchange fees from its virtual credit card, simple interest on long-term loans, and gains from third-party loan sales. This robust financial model positions AFRM as an attractive stock choice. 

    At Q2 2023’s earnings call, AFRM’s CFO Michael Linford stated, “Despite significant changes in interest rates and consumer demand, we still delivered good credit results, unit economics, and GMV (gross merchandise volume) growth. We also demonstrated that the business can continue to expand profitably even in a high interest-rate environment.” AFRM met analysts’ expectations on EPS and reported revenue of $445.82 million vs. $406.08 million as expected (a 9.79% win); it also reported year-over-year revenue

    growth of 7.39%. AFRM is expected to report $429 million in sales for the current fiscal quarter. AFRM is currently up by 97.93% year-to-date but is trading near the middle of its 52-week range, leaving room for upside. With a 10-day average volume of 20.75 million shares, AFRM has an average price target of $16, with a high of $24 and a low of $6, suggesting a potential price jump of over 25% from its current position. 

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    PayPal Holdings Inc (PYPL) 

    PayPal Holdings Inc. (PYPL) has been a long-time prominent figure in the world of digital payments, offering fintech assets like Venmo and its PayPal “digital wallet.” PYPL’s BNPL service, launched in 2020, empowers consumers to make interest-free purchases up to $1,500, repayable in four installments, or extend larger purchases over 24 months with interest. With over 200 million loans issued to over 30 million customers across eight global markets by mid-2023 (after BNPL loans surged in 2022), PYPL has positioned itself as a market leader and a compelling investment choice; I’ll lend a spotlight to that. 

    PYPL is down year-to-date by 12.24%, trading near the bottom of its existing 52-week range, which leaves plenty of room for a price upside. With a free cash flow of $3.35 billion, PYPL has a PEG ratio of 0.56x and a positive ROE (return on equity). For its Q2 2023 earnings call, PYPL reported EPS that met analysts’ expectations while beating revenue slightly by 0.20%; it also reported year-over-year growth in critical areas like revenue (+7.07%), net income (+401.76%), EPS (+417.24%), and net profit margin (+381.84%). For the current fiscal quarter, PYPL is projected to report $7.3 billion in sales at $1.22 per share, with an expected 3-5 year EPS growth rate of 13.7%. With a 10-day average volume of 14.67 million shares, PYPL has a median price target of $85, with a high of $126 and a low of $55; this indicates the potential for a more than 101% leap from its current trading price. 

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    Secure Dependable Profits With These Consumer Retail Stocks

    By
    Editorial Staff
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    0

    Why Retail? Why the Consumer Goods industry? Well, there are a few things to consider: 

    – Strong spending and purchasing power in the overall retail sector. 

    – Inflation has decreased from its peak in 2022. 

    – Consumer spending remained robust in July, with retail sales growing by 0.7%. – The consumer goods market is projected to reach $3 trillion by the end of 2023. – Analysts project a 3.2% rate in annual growth from 2023 to 2028. 

    We like positive data, and we want sectors that are performing well. That’s absolutely the case here, and we have three stocks in particular that highlight these principles… 

    Albertsons Companies Inc (ACI) 

    Albertsons Companies (ACI) stands out as a formidable contender in the retail sector, capitalizing on its commitment to efficient in-store services and elevating digital and omnichannel capacities. ACI is also known for driving enhanced productivity. The ongoing initiatives undertaken by ACI to enrich its range of products consistently elevate the holistic customer journey. Notably, ACI presents a projected long-term earnings growth rate of 8%, further underscoring its potential for sustained growth. 

    ACI, currently up year-to-date by 6.85%, has a positive 20/200 day SMA (simple moving average), positive year-over-year revenue and momentum growth, a PEG (price/earnings to growth) ratio of 1.63x, and a solid 0.37 beta score. ACI most recently beat analysts’ projections on EPS, reporting $0.93 per share vs. $0.85 as expected (a 9.8% win), and has exceeded estimates for 12 consecutive quarters. ACI has an annual dividend yield of 2.17% and a quarterly payout of 12 cents ($0.48/year) per share. For the current quarter, ACI is expected to post $18.2 billion in sales at $0.62 per share. With a 10-day average volume of 2.5 million shares, ACI has an average price target of $25, with a high of $27.25 and a low of $21, indicating the potential for a 23% jump from its current price. While up YTD, ACI is trading near the bottom of its 52-week range, leaving plenty of room to move in the right direction. 

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    Unilever PLC (UL) 

    Based in London, U.K., Unilevel PLC (UL) is a fast-moving consumer goods firm that markets items under renowned brands such as Ben and Jerry’s, Axe Bodyspray, LUX, Seventh Generation, and others. On April 3rd, UL achieved a substantial cloud transition project via partnerships with Microsoft Corp. (MSFT) and 

    Accenture PLC (ACN). By adopting Azure’s cloud platform, UL has streamlined operations, improving new product introductions, customer support, and overall efficiency. UL also recently disclosed the sale of its Suave brand in North America to Yellow Wood Partners LLC. This divestiture underscores UL’s successful strategy of re-designing its portfolio towards targeted growth sectors. 

    UL is up slightly year-to-date by 0.41% and is trading around the middle of its existing 52-week price range. With a positive SMA, $7.6 billion in free cash flow, and a 0.51 beta score. Regarding its last earnings call, UL beat analysts’ revenue forecasts by 2% while also reporting year-over-year growth in key areas like revenue (+2.72%), net income (+22.13%), EPS (+25%), and net profit margin (+18.86%). UL has a 3.46% annual dividend yield, a quarterly payout of 47 cents ($1.88/year) per share, and a 62.88% payout ratio.

    With a 10-day average volume of 1.93 million shares, UL has a median price target of $58.15, with a high of $68.01 and a low of $41.18; this represents an almost 34% potential price upside. 

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    Edgewell Personal Care Co (EPC) 

    Oddly, the insider investment in Edgewood Personal Care Co. (EPC) was the first thing I noticed about it. It emphasizes EPC’s alignment with shareholders’ interests, boosting market confidence. With an insider holding valued at around $19 million overall, there’s a strong sense of conviction in the firm’s strategy; this holding, while significant, only represents about 1% of the EPC’s shares. Evaluating revenue growth and earnings margins provides insights into sustainable profit growth, and EPC maintained steady margins while achieving a 3.5% revenue increase to $2.3 billion over the past year. This is a promising combination. 

    EPC is down year-to-date by 2.85%, has a 0.87 beta, almost $200 million in free cash flow, a P/S (price to sales) ratio of 0.86x, and a P/B (price to book) ratio of 1.23x. At its last earnings call, EPC surpassed analysts’ expectations, reporting EPS of $0.98 per share vs. $0.81 per share as expected (a 20.70% surprise) and winning by a margin of 0.89% on revenue. EPC also reported year-over-year revenue growth (+4.20%), net income (+72.13%), EPS (+77.19%), and net profit margin (+65.24%). EPC has an annual dividend yield of 1.60% and a quarterly payout of 15 cents ($0.60/year) per share. With a modest 10-day average volume of roughly 303 thousand shares, EPC has an average price target of $47, with a high of $53 and a low of $37; this range suggests a more than 40% jump in pricing from where it currently sits. 

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    Three Under-the-Radar Small-Cap Stocks with Huge Potential

    By
    Editorial Staff
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    0

    Although the broad market continues to be driven by macro uncertainties, small-cap stocks have performed well thus far in 2023. The small-cap Russell 2000 Index has beaten the broader market this year, with a gain of 5%, outperforming the Dow’s 3% YTD gain. 

    Stocks with small market capitalizations are generally less correlated to the performance of larger companies and can provide an additional layer of diversification for investors. Considering the implosion in some mega-cap tech names, now is a particularly good time to consider adding to your small-cap position.

    Even if you missed out on the first half’s run-up in small-cap stocks,  you’ve far from missed the boat when it comes to undervalued, under-the-radar opportunities in this space. This list will cover three promising small-caps with ample room to run in 2023 and beyond.  

    I-80 Gold (IAUX)

    The junior miner is moving into the production stage just as gold prices are soaring. I-80’s latest mining discoveries may enable it to, within a few years, increase its annual gold production to between 250,000 and 400,000 ounces.   Considering the gold miner’s strong long-term growth potential,  the stock appears undervalued. At current prices, shares trade for less than seven times earnings. 

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    Sachem Capital (SACH)

    This mortgage REIT focuses on making short-term, so-called “hard money” loans backed by good collateral. For this reason, it could prove to be much more resilient than other mortgage REITs this year. Currently trading at a 30% discount to book, the small-cap seems to have plenty of runway ahead in 2023. Aside from its potential for solid capital gains, SACH investors enjoy a hearty 13.6% dividend yield backed by a sustainable rate of payout.  

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    VAALCO Energy (EGY)

    The oil exploration and production company is among the most undervalued small-cap names. Trading at just 4.2 times forward earnings, it’s cheap even for an energy stock. Even if crude oil prices fail to return to their 2022 highs, cost savings from its merger with TransGlobe Energy could result in earnings growth.  

    Aside from its ample upside potential, EGY offers investors steady returns with a sizeable payout. Management recently announced that it is raising Vaalco’s quarterly dividend by 92%, from 3.25 cents per share to 6.25 cents per share. This increase gives EGY a forward yield of 5.23%.

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    Secure Massive Gains With These AI Software Stocks Today 

    By
    Editorial Staff
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    0

    The global AI software market, made up mostly of cloud computing, is on the brink of massive expansion, and this results from the escalating demand for software-focused solutions and services. 

    Software firms will soon be utilizing the following areas of groundbreaking AI tech, to name a few: 

    – Machine Learning (ML) 

    – Augmented Reality (AR) 

    – Virtual Reality (VR) 

    – Internet of Things (IoT) 

    Also noteworthy: The global software industry is projected to reach a market size of $4.91 trillion by 2027. 

    Various areas of AI will undoubtedly bolster the software sector’s growth trajectory, and some particular software stocks will greatly benefit from it… 

    GoDaddy Inc (GDDY) 

    GoDaddy Inc. (GDDY) is a cloud-based innovator that offers products to other businesses such as marketing, mobile optimization, and e-commerce creation. Notably, GDDY introduced “Instant Video,” an AI-powered feature in GDDY’s Studio app, aiding small businesses in making films for video-centric marketing without added costs. GDDY has launched generative AI products to aid small enterprises in tasks like product descriptions and customer service messages. In collaboration with Microsoft (MSFT), they’ve introduced seamless payment solutions in Microsoft “Teams” meetings. The fact that the software giant chose GDDY only highlights its strong position in the US payments sector. 

    GDDY is down year-to-date by 5.65% and trading near the bottom of its existing 52-week range. GDDY has a volatility-safe beta score of 0.96, a PEG (price/earnings to growth) ratio of 0.76x, almost $1 billion in operating free cash flow, and positive year-over-year revenue growth. For the current fiscal quarter, GDDY is projected to report $1.1 billion in sales at $0.77 per share, with a forecasted 3-5 year EPS growth rate of 50.7%; the firm is scheduled to report on November 8th. With a 10-day average trading volume of 1.41 million shares, GDDY has a median price target of $89.50, with a high of $102 and a low of $77; this suggests the potential for an almost 45% price upside. GDDY has 10 buy ratings and 5 hold ratings. 

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    RingCentral Inc (RNG) 

    RingCentral Inc. (RNG) stands out as a global leader in providing enterprise cloud communications, video conferencing, and SaaS (Software as a Service) communication services. On May 18th of this year, we witnessed a strategic partnership between Vodafone Portugal and RNG, which seamlessly integrates RingCentral’s messaging and video capabilities with Vodafone’s voice functionalities, making for a robust communication solution. As remote work increases, RNG’s new solution is poised to become a staple for Portuguese companies seeking heightened productivity and flexibility. Anticipating vast adoption, the integration will also expand RNG‘s influence on the global marketplace. 

    Down year-to-date by 19.41% and trading at the bottom of its existing price range, RNG’s stock has a 0.91 beta, a 0.44x PEG ratio, a P/S (price to sales) ratio of 1.29x, and a positive 20/200 SMA (simple moving

    average). During its Q2 earnings call, RNG reported EPS of $0.83 per share vs. $0.75 per share as expected by analysts, a 10.70% win, while it beat revenue projections by 0.55%. RNG also reported year-over-year growth in critical areas like revenue (+10.76%), net income (+86.53%), net profit margin (+87.85%), and operating income (+60.76%). With a 10-day average volume of 2.34 million shares, RNG has an average price target of $43.50, with a high of $65 and a low of $34; this represents the potential for a price leap of more than 127% from its current spot. RNG has 18 buy ratings and 11 hold ratings. 

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    ServiceNow Inc (NOW) 

    ServiceNow Inc. (NOW) is a key player in enterprise cloud computing solutions, offering services that streamline processes for global enterprises. NOW’s platform encompasses workflow automation, AI, ML, and more. NOW‘s dedication to innovation is evident in its generative AI advancements, including case summarization and text-to-code capabilities. NOW has collaborations through the AI Lighthouse program with Accenture (ACN) and a transformative partnership with NVIDIA Corp. (NVDA) for enterprise-focused generative AI capabilities. NOW‘s commitment to technological advancements makes it a software company worth taking seriously. 

    Unlike its peers on this list, NOW’s stock is trading near the high of its existing range and is up by 42.91% year-to-date. With a positive SMA, a 1.02 beta, and positive TTM (trailing twelve-month) growth in assets and momentum, NOW has a low D/E (debt to equity) measure of 21.47% and an operating free cash flow of $2.91 billion. For Q2, NOW beat analysts’ projections, reporting EPS of $2.37 per share vs. $2.05 per share as expected (a 15.81% surprise), and it reported revenue that won by a 0.98% margin. NOW also reported whopping year-over-year growth in key areas such as revenue (+22.72%), net income (+5,120%), EPS (+4,980%), and net profit margin (+4,159%). With an under-the-radar 10-day average volume of 960 thousand shares, NOW has a median price target of $648, with a high of $734 and a low of $575, which implies a potential for a 32.3% price upside. NOW has 36 buy ratings and 4 hold ratings. 

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    Is SOFI’s Recent Pullback Really a Buying Opportunity?

    By
    Editorial Staff
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    0

    Amidst a recent pullback that has seen SoFi Technologies (SOFI) stock retracing a substantial portion of its earlier gains, a crucial question emerges – Is this dip a potential goldmine for savvy investors? This financial technology firm has encountered a drop of approximately 28% month-to-date following a robust rally. Analyst sentiment sits in neutral territory, neither overly bullish nor bearish. With these factors in mind, let’s delve into the dynamics surrounding SOFI stock.

    The Factors at Play

    SoFi has been riding the wave of personal loan originations and solid revenue growth, propelling its stock forward. The company’s Q2 performance exceeded expectations, prompting a positive adjustment to its revenue and EBITDA outlook for the entire year. Of note, the expansion of SoFi’s high-quality deposit base remains noteworthy. With $12.7 billion in deposits at the end of the quarter, reflecting a substantial increase, and over 90% of consumer deposits coming from reliable direct deposit members, the firm’s foundation seems robust. Moreover, a notable 98% of its deposits are insured.

    Amid this strong foundation, the trajectory of personal loans could further fuel SoFi’s growth. A 51% rise in personal loan originations is an encouraging sign. Additionally, home loan originations almost tripling in the second quarter implies potential recovery in the upcoming periods.

    Assuredly, SoFi stands to benefit from several growth drivers, including loan originations, a dependable deposit base, and tech platform fees. However, despite the recent correction, the stock’s noteworthy appreciation year-to-date implies that many of these strengths may already be reflected in the valuation. Furthermore, the expectation of a growth slowdown due to challenging year-over-year comparisons could limit potential upside.

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    Analyst Insights and Conclusion

    As per TipRanks, a consensus of Hold ratings prevails for SOFI stock, encompassing seven Buys, seven Holds, and four Sells. Yet, despite this cautious outlook, the average target price of $9.74 presents a promising 17.49% upside potential from its current standing.

    In summation, SoFi’s growth potential, supported by its personal loan business and technology platform fees, remains intact. Factors such as recovering home loan originations, an expanding high-quality deposit base, and a robust balance sheet contribute to its bullish case. However, the stock’s valuation has surged significantly this year, warranting prudence. With analysts advocating for a Hold stance, investors might do well to await a more opportune entry point.

    Be Wary of These Risky Tech Stocks 

    By
    Editorial Staff
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    0

    Every group, generally speaking, has a few bad apples. It could be a branch of government, an online subreddit, a sports team, a nonprofit organization, or a stock market sector. 

    Now, the existence of a few bad apples doesn’t automatically mean you end up with a spoiled bunch. The typical solution is to weed out the bad apples. Corny as it sounds, this principle holds true.

    Here, we dive into a story within the tech scene, where not all stocks are flying as high as the sector. A handful of companies are facing revenue drops – a red flag amidst the positive noise.

    In the following article, I’ll attempt to untangle these threads, looking at a few stocks that aren’t riding the wave. As the tech arena booms, it’s essential to heed these nuanced stories – a reminder that not everything shining is gold.

    BlackBerry Ltd (BB) 

    While not the first name that comes to mind when we think of cybersecurity, BlackBerry Ltd. (BB) leads off our list of companies to avoid, or at least take a hard look at. BB’s cybersecurity arm faces a substantial challenge as its year-over-year revenue decline persists. The more profound concern lies in the diminishing recurring revenue trend. BB aims to provide cybersecurity for autonomous vehicles, underscoring intense market competition. 

    Although the company has secured recent design victories, its shift in focus remains unproven. You can say there’s a reasonable approach to considering BB as an investment, as it’s been trading under $5. However, the stock has dropped by 29% in the past twelve months, despite a 46% surge in 2023. Let’s keep an eye on BB before putting our money into it. 

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    SentinelOne Inc (S) 

    While cybersecurity is often seen as resistant to economic downturns, SentinelOne (S) promotes its Artificial Intelligence-driven Singularity Platform as a trailblazer in autonomous technology. Despite the promising combination, though, caution is warranted with S. After Q1 earnings, the company revised its sales projections for fiscal year 2024, leading to a 5% workforce reduction. 

    This move failed to reassure investors, as S stock plummeted by 26% post-announcement. However, the concern runs deeper—this decline is part of an ongoing pattern that we’ve seen since the firm’s 2021 IPO, resulting in a staggering 64.8% drop since then. While the cybersecurity market thrives, wiser alternatives exist for all but the most risk-tolerant investors. 

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    Okta Inc (OKTA) 

    Okta Inc. (OKTA) prides itself on being the sole independent and neutral identity solution, granting secure access to external networks in our remote-driven world. This ongoing relevance suggests a consistent revenue flow for OKTA. This aspect correlates with the company’s consecutive revenue growth. However, that pace has diminished. A similar trend echoes in earnings, and it’s not uncommon for companies in this domain to sometimes lack profitability.

    Further positive indicators emerge for OKTA, such as rising margins and updated yearly guidance. However, these factors have yet to substantially boost the stock’s value, something you would expect. Amid the cybersecurity sector’s expansion, caution is warranted regarding OKTA, which has shown gains so far in 2023 while dipping more than 30% in the past twelve months. 

    Again, remember that I’m not disparaging OKTA or the other two stocks, and I’m not telling you to “avoid them like the plague” or anything akin to that. I’m simply trying to make the case that although the tech rally on Wall Street has been massive and justifiably so, the tech sector (as with all sectors) is not immune to the fact that some simply aren’t as good as the major players. Perhaps it isn’t wise to look at how well AI and technology are doing and start buying stocks willy-nilly. Keep a watchful eye. 

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    Stock Hotlist: Top Picks to Watch Now

    By
    Editorial Staff
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    0

    Picking the wrong stocks can decimate your portfolio.

    They’re pure portfolio poison.  

    But the right stocks…

    If you pick the right stocks, you could find yourself jumping for joy on top of an enormous pile of cash.

    With over 4000 tickers to choose from, finding the right at the right time can prove to be nearly impossible… 

    Unless you’re spending hours each day combing the markets and researching companies.  

    That’s why we’ve done the legwork for you.  

    We sort through thousands of stock ideas and whittle them down to a few top choices primed for solid price action in the coming days, weeks, and months.  

    This week, we’ve narrowed it down to three stocks that could be getting significant attention in the near future.

    Click here for the full story on the stocks we’re watching this week… 

    NVR (NVR)

    Warren Buffett is one of the most successful investors on Wall Street. The Berkshire Hathaway CEO is known for a long track record of market-beating returns. Considering his stellar performance, investors may want to take a page out of Buffett’s playbook and consider striking up a position in NVR.

    On Monday, Berkshire Hathaway disclosed a new investment in the leading home builder. The investment was disclosed in a regulatory filing that detailed Berkshire’s U.S.-listed stock holdings, which comprise most of its $353.4 billion equity portfolio, as of June 30.

    The Q2 stock purchase was made during a down period for homebuilders as rising interest and mortgage rates slowed demand. But Berkshire said those effects have been partially offset by new construction activity resulting from low inventory of existing homes for sale, an environment that could benefit homebuilders. Berkshire said that as of June 30, it owned about 11,112 NVR shares worth $70.6 million.

    Despite recent challenges, NVR has a strategic edge for long-term growth. The company’s mature market focus and careful lot acquisition approach form a robust base for resilience and expansion. By sourcing finished lots through Lot Purchase Agreements (LPAs), NVR mitigates land ownership risks and development costs. This not only reduces market vulnerabilities but also enhances inventory turnover, bolstering returns. Beyond its established lot acquisition strategy, NVR is exploring alternatives, including joint ventures and direct land development, to capitalize on opportunities.

    Perhaps Berkshire’s new stake is a bet that interest rates will fall and the home-buying frenzy will resume. The pros on Wall Street give NVR a median price target of $6160, implying around 10% upside over the coming months.  

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    Enbridge (ENB)

    The spotlight has turned toward prominent Canadian energy transportation firm Enbridge due to its perceived undervaluation, evidenced by a 13.68% dip over the past year against a consensus price target that indicates plenty of room for growth.

    Enbridge holds a significant position as a blue-chip dividend stock, boasting a substantial 7.2% yield. Notably, Enbridge is dedicated to delivering value to its shareholders, having accumulated savings of $1.2 billion since 2017. With a BBB+ credit rating, the company assures stability within the dynamic energy sector. Moreover, Enbridge’s historical resilience and strategic approach to debt utilization for capital investments contribute to its overall stability. The company’s strategic emphasis on natural gas aligns well with the evolving energy landscape, making it a potentially promising avenue for investors seeking to enhance their investment foundation.

    Enbridge’s distinction among oil stocks stems from its expansive North American pipeline network. While recent stock fluctuations have occurred, the company’s fundamental role in energy infrastructure, coupled with a moderate buy consensus, hints at an appealing 18% upside potential for investors considering this opportunity.

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    General Motors (GM)

    Amidst the challenges faced by the auto industry, astute investors might find hidden,  long-term gems among cheap stocks. General Motors boasts a portfolio of iconic car brands, ranging from Chevrolet to Cadillac. However, macroeconomic headwinds and the rising momentum of electric vehicles (EVs) have somewhat dimmed the company’s appeal.

    Yet, GM could prove to be a surprise contender in the EV race. With a goal to offer exclusively EVs by 2035, it has emerged as the second-largest EV provider in the US. Although the company carries significant debts, its growth ambitions and strong free cash flow position provide hope for a positive outcome.

    GM also presents a contrarian play within the automaker landscape. While many investors anticipate a global economic slowdown that might deter consumers from big purchases like new cars, there are contrasting views suggesting a softer-than-expected landing. Such an outcome could uplift auto stocks, including GM, presenting an opportunity for discerning investors.

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    Three Stocks to Sell ASAP

    By
    Editorial Staff
    -
    0

    The right stocks can make you rich and change your life.

    The wrong stocks, though… They can do a whole lot more than just “underperform.” If only! They can eviscerate your wealth, bleeding out your hard-won profits.

    They’re pure portfolio poison.

    Surprisingly, not many investors want to talk about this. You certainly don’t hear about the danger in the mainstream media – until it’s too late.

    That’s not to suggest they’re obscure companies – some of the “toxic stocks” I’m going to name for you are, in fact, regularly in the headlines for other reasons, often in glowing terms.

    I’m going to run down the list and give you a chance to learn the names of three companies I think everyone should own instead.

    But first, if you own any or all of these “toxic stocks,” sell them today…

    Big Lots (BIG)

    With a sprawling inventory ranging from toys and clothing to household essentials and even groceries, Big Lots has etched its presence across more than 1,400 locations.

    However, the tides haven’t been in Big Lots’ favor in the year 2023. With an inflationary breeze blowing, one might expect the company to thrive, as value-conscious individuals typically seek refuge in discount havens.

    Yet, the path has been strewn with hurdles for Big Lots. Rather than basking in prosperity, the company grappled with augmented costs, the looming specter of higher interest rates, and the vexing entanglements of supply chain issues. As the landscape shifted, even the customary refuge of tax refunds took a hit, courtesy of the 2022 tax year, curtailing the spending vigor of patrons within the halls of Big Lots stores.

    Dividend investors were also disappointed as the company reacted to these pressures by suspending its 30-cent-per-share dividend.

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    Fisker (FSR)

    In the competitive electric vehicle (EV) industry, survival is tough for startups. Although Fisker has begun delivering its EVs, it’s just the beginning, and challenges lie ahead. The EV market is crowded, with many established players.

    While Fisker reported record revenue from Ocean SUV deliveries, it reduced its production target to 20,000-23,000 vehicles from 32,000-36,000. Q2 deliveries were only 11 EVs, generating $825,000 in revenue. Operating expenses reached $128 million. Capital expenses were $91.3 million. The stock is now at $5.86, down 14% this year from $10 in August 2022.

    Though Fisker has started production, its long-term outlook is uncertain. The recent termination of a stock offering adds to concerns. While it might have cash to continue for a year, the bigger picture doesn’t look promising. Consider selling FSR stock before it falls further.

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    TELUS Corp. (TU)

    Telus Corp. is one stock to steer clear of post-earnings. The Canadian company experienced a drastic 60% decline in its profit and made a swift decision to slash 6,000 jobs. This workforce reduction includes 4,000 positions at its Vancouver headquarters and 2,000 more across its international operations, including the U.S. The announcement followed Telus’ report of a 60% year-over-year drop in Q2 net income, which settled at $196 million.

    Adding to the unfavorable picture, the net income of 14 cents per share fell short of analysts’ projections of 22 cents per share. Despite a 13% increase in revenue from $4.40 billion to $4.95 billion compared to the previous year, the company’s profitability remained challenged. Telus had already revised down its annual 2023 guidance in July before the Q2 release due to demand pressures and the need for cost-cutting measures. The revised forecast now anticipates revenue growth of 9.5% to 11.5% for the year, down from the earlier estimate of 11% to 14%.

    With TU stock experiencing a 23% decline over the past 12 months and a 3% decrease over a five-year span, it’s evident that this is a stock best avoided following its Q2 earnings report.

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    Don’t Miss Out on These Overlooked AI Stocks

    By
    Editorial Staff
    -
    0

    When looking at the tech market and AI in particular, some huge names stand out, and for a good reason. I’m talking, of course, about companies like Nvidia (NVDA), Microsoft (MSFT), Tesla (TSLA), Alphabet (GOOGL), and Meta Platforms (META), just to name a few. 

    Those big names that have led the tech rally in 2023 so far are great stocks to have in your portfolio and offer attractive potential returns. However, there are a few we may have overlooked. 

    The stocks I’ll cover today show a history of increasingly strong earnings reports that beat analysts’ forecasts and year-over-year growth in crucial areas such as revenue and EPS (earnings per share). 

    If we look past what’s most popular, we’ll discover other AI stocks that can bring us enormous profits. Such stocks present opportunities we do NOT want to pass by us… 

    Arista Networks Inc (ANET) 

    Arista Networks (ANET) is a compelling AI stock choice, offering advanced cloud networking solutions to internet companies, cloud service providers, and enterprise data centers. With its high-performance data center switches optimized for AI workloads, ANET caters to the industry’s evolving demands. ANET’s recent guidance, backed by notable clients like Microsoft (MSFT) and Meta Platforms (META), reflects increasing demand for its 7800 series switches tailored for AI tasks. Analysts project that ANET will hold a potential $35 billion market share by 2025, underscoring Arista’s growth prospects in the AI sector and cementing its status as a promising investment. 

    Surrounded by bullish sentiment, ANET is up year-to-date by 44.34%, has a positive 20/200 day SMA (simple moving average), a positive ROE (return on equity), and positive TTM (trailing twelve-month) momentum and asset growth. For its Q2 2023 earnings report, ANET exceeded analysts’ EPS and revenue projections by 9.83% and 5.90%, respectively. At the same time, it showed year-over-year revenue growth (+38.70%), net income (+64.46%), EPS (+64.89%), and net profit margin (+18.61%). For the current quarter, ANET is projected to report $1.4 billion in sales at $1.47 per share, with a 3-5 year EPS growth rate of 23.8%. With a 10-day average volume of 4.74 million shares, ANET has a median price target of $200, with a high of $225 and a low of $154; this represents a potential 28.5% jump in pricing. 

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    Relx PLC (RELX) 

    Relx PLC (RELX) presents an enticing opportunity for investors seeking exposure to the AI sector. As a global provider of information and analytics to professional and business clients, RELX has strategically integrated AI and ML (machine learning) into its legal, risk, and science divisions. Notably, the recent acquisition of Aistemos, a company specializing in AI-driven patent classification, affirms RELX’s commitment to innovation. The case can be made that RELX’s growth surge in the first half of 2023 indicates a genuine upward trend. RELX plans to soon launch its transformative “Lexis+” product, enhanced by generative AI capabilities. Combining its established success with pioneering AI initiatives positions RELX as an attractive AI player. 

    RELX CEO Erik Engstrom said at its last earnings call, “RELX delivered strong revenue and profit growth in the first half of 2023. The improving long-term growth trajectory continues to be driven by the ongoing

    shift in the business mix towards higher growth analytics and decision tools that deliver enhanced value to our customers across market segments. By embracing artificial intelligence technologies for well over a decade, we have been able to develop and deploy these analytics and decision tools across the company, and we believe that our ability to leverage AI as it evolves will continue to be an important driver of our business going forward.” 

    RELX is up year-to-date by 17.75%, has a 0.91 beta score, a positive SMA, positive momentum growth, and a projected 3-5 year EPS growth rate of 5.8%. During its last earnings report, RELX also displayed year-over-year revenue growth (+13.35%), net income (+14.85%), EPS (+15%), and net profit margin (+1.36%). RELX has an annual dividend yield of 2.15%, with a quarterly payout of 18 cents ($0.72/year) per share and a 58.40% payout ratio. With a modest 10-day average volume of approximately 636 thousand shares, RELX has an average price target of $37.90, with a high of $38.80 and a low of $37; this indicates as much as a 20% potential price upside. 

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    Baidu Inc (BIDU) 

    Indeed, the biggest of the names on this list is China-based Baidu Inc. (BIDU), which is a standout due to its leadership in China’s internet search sector, diversified businesses, including AI and cloud, and a significant stake in iQIYI Inc. BIDU’s recent launch of “Ernie Bot,” a large language model AI product, and its $145 million AI-focused venture fund emphasize its commitment to innovation. Analysts highlight BIDU’s ongoing integration of AI features, like chat interactions and AI-generated search results, within its search engine, solidifying its position as the biggest AI name not located in the United States. 

    BIDU is up by 20.57% year-to-date, has a positive SMA and momentum growth, a PEG (price/earnings to growth) ratio of 1.22x, and a 0.71 beta score. For its last earnings report, it surpassed analysts’ estimates on revenue and EPS by 25.86% and 3.82%, respectively; BIDU also reported year-over-year revenue growth (+9.62%), net income (+758.19%), EPS (+652.78%), and net profit margin (+701.29%). With a 10-day average volume of 1.84 million shares, BIDU has an average price target of $178.60, with a high of $228.83 and a low of $108.47, representing a potential 66% jump from its current trading price. 

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    Stock Hotlist: Top Picks to Watch Now

    By
    Editorial Staff
    -
    0

    Picking the wrong stocks can decimate your portfolio.

    They’re pure portfolio poison.  

    But the right stocks…

    If you pick the right stocks, you could find yourself jumping for joy on top of an enormous pile of cash.

    With over 4000 tickers to choose from, finding the right at the right time can prove to be nearly impossible… 

    Unless you’re spending hours each day combing the markets and researching companies.  

    That’s why we’ve done the legwork for you.  

    We sort through thousands of stock ideas and whittle them down to a few top choices that are primed for solid price action in the coming days, weeks, and months.  

    This week, we’ve narrowed it down to three stocks that could be getting significant attention in the near future.

    Meta Platforms (META)

    Meta seems to have rediscovered its momentum, which bodes well for investors. Following a challenging 2022, the parent company of Facebook and Instagram has witnessed its stock price surge by 145% this year. The company is steering away from the metaverse, adopting cost-cutting measures, and emphasizing its focus on artificial intelligence (AI). In the wake of the impact of high interest rates, META stock is now indicating a robust return to growth, positioning it as one of the potential stocks to make investors millionaires.

    Furthermore, the social media powerhouse has recently released financial results revitalizing confidence in the company and its shares. After the Q2 earnings report, META stock soared by 8%, fueled by earnings per share of $2.98, exceeding the projected $2.91 estimated by analysts. The company generated $32 billion in revenue, surpassing consensus predictions of $31.12 billion. This growth is attributed to a rebound in digital advertising across its social media platforms. Q2 revenue experienced an 11% surge from the previous year, marking the first time the company has reported double-digit growth in this domain since the conclusion of 2021. It might just be the right time to consider a purchase.

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    Enbridge (ENB)

    The spotlight has turned toward prominent Canadian energy transportation firm Enbridge due to its perceived undervaluation, evidenced by a 13.68% dip over the past year against a $45.11 consensus price target.

    Enbridge holds a significant position as a blue-chip dividend stock, boasting a substantial 7.2% yield. Notably, Enbridge is dedicated to delivering value to its shareholders, having accumulated savings of $1.2 billion since 2017. With a BBB+ credit rating, the company assures stability within the dynamic energy sector. Moreover, Enbridge’s historical resilience and strategic approach to debt utilization for capital investments contribute to its overall stability. The company’s strategic emphasis on natural gas aligns well with the evolving energy landscape, making it a potentially promising avenue for investors seeking to enhance their investment foundation.

    Enbridge’s distinction among oil stocks stems from its expansive North American pipeline network. While recent stock fluctuations have occurred, the company’s fundamental role in energy infrastructure, coupled with a moderate buy consensus, hints at an appealing 18% upside potential for investors considering this opportunity.

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    Accenture (ACN)

    Recent developments have spotlighted the synergistic collaboration between Accenture and Nvidia, culminating in the launch of AI Lighthouse, harnessing Nvidia’s formidable AI supercomputing expertise. It’s evident that Accenture is not merely riding the AI wave but is also setting a trailblazing pace for others in the industry.

    Accenture has showcased remarkable performance in 2023, marking a surge of approximately 16% year-to-date. This growth trend is solidifying its position as a compelling machine learning stock, catching the attention of many astute investors.

    The recent release of third-quarter fiscal 2023 earnings has only reinforced this positive outlook. A robust revenue of $16.56 billion, exhibiting a 2.5% year-on-year increase, in combination with a net income of $2.01 billion, reflecting a substantial 13% growth, underscoring the company’s operational prowess. Moreover, the diluted earnings per share (EPS) have significantly expanded by 13%, surpassing expectations by an impressive margin of 5%.

    Accenture’s proactive endeavors in the realm of AI and machine learning have been garnering significant attention. For investors with a discerning eye on high-potential machine learning stocks, Accenture is effectively illuminating the path toward a transformative AI-driven future.

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