Reports

Avoid These Toxic Stocks

July 15, 2023

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

The wrong stocks, though… They can do a whole lot more than “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 will 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…

C3.ai Inc (AI)

C3.ai may have a catchy ticker symbol that aligns with the market’s enthusiasm for artificial intelligence. Still, there really isn’t much else to say about AI when it comes to considering it for our portfolios. AI is slow-moving, unprofitable, and lacks the potential to benefit from the current excitement surrounding consumer-facing AI. It isn’t sure that C3.ai will capitalize on the opportunity, making it a stock to avoid; it is largely inflated at this point, and, unfortunately, many of us were late to the rally.

AI’s stock is up year-to-date by an insane 240%, and the case for it being overvalued is an easy one to make when looking at the negative numbers. AI has a 2.61 beta and an ROE of -28.02% and shows $266 million in TTM revenue, from which it lost $268 million thanks to its crazy -100.77% profit margin. AI shows negative year-over-year growth in net income (-11.19%), net profit margin (-11.05%), and operating income (-29.65%). With a 10-day average trading volume of roughly 52 million shares, AI has a median price target of $23.50, with a high of $50 and a low of $14, suggesting the potential for a price decrease anywhere from -45% to -67%. AI has six buy ratings and four hold ratings.

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Abrdn Income Credit Strategies Fund (ACP)

A closed-end fund, Abrdn Income Credit Strategies Fund, offers a high forward dividend yield of 14.35%. However, Over the past year, ACP shares have fallen by more than 11%. Further declines may be ahead for two reasons.

First, higher interest rates have had an inverse effect on the value of ACP’s portfolio of low-rated debt securities. Second, the current economic downturn could increase the default risk of ACP’s holdings. This may also result in another dividend cut, like the 16.7% cut implemented in 2020.

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Algoma Steel (ASTL)

Algoma Steel has been battling lower steel prices, higher input costs, and weak demand, particularly in the North American housing sector. But the truth is, Algoma Steel has been a lousy investment for years. Since early 2021, ASTL stock has dropped more than 25%, including a 22% pullback in the last 12 months. Algoma Steel recently reported that its net income for its fiscal fourth quarter plummeted 108% from a year earlier due to lower steel prices and weakening demand for its products. The company reported a fiscal Q4 net loss of $20.4 million, down from a net profit of $242.9 million in 2022. That equated to a loss per share of 19 cents — a dramatic difference from income of $1.45 a share just a year ago. We don’t foresee a significant shift for ASTL anytime soon.

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Three Risky Stocks to Avoid Like the Plague

Editorial Staff

July 14, 2023

Tech stocks have come roaring back in 2023. But after the stunning rebound, some tech names have little room to run. In addition to industry-specific concerns, the technology sector faces headwinds from rising interest rates and a central bank that hasn’t finished its fight against inflation. As such, now seems like a good time to lock in gains on certain tech stocks that have rallied sharply this year. In particular, these three tech stocks look vulnerable and may see severe downside in the coming days and weeks.

Check Point Software Technologies (CHKP)

Check Point develops a range of cybersecurity products and services globally. In terms of financial performance, the company has delivered mixed results. Although it has maintained bottom-line profitability for over two decades, Check Point’s revenue growth over the past five years has settled in the low single-digit range.

CHKP shares are down 1% YTD and are only up a fraction of a percent over the past twelve months. “Amid a tech sub-vertical characterized by rapid growth, this lukewarm share performance stands out like a blemish.

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Palantir Technologies Inc (PLTR)

Palantir Technologies is, a black-box consulting company, has been scrutinized by The Bear Cave for allegedly posing as an AI powerhouse while primarily functioning as an overhyped data consultant. Despite notable contracts, PTLR’s lack of innovative work raises concerns. The current valuation of PLTR stock at nearly 15 times revenues and 68 times forward earnings is high for a data management and consulting company. Without PLTR’s utilization of impressive AI applications, however, the recent 90% stock gain is expected to diminish rapidly.

PLTR isn’t much different. It’s up year-to-date by 9.07% but has a negative ROE of -10.04% and a risky 2.84 beta. PLTR showed TTM revenue of $1.98 billion and lost $225 million on its -12.87% profit margin. Overvalued PLTR is a stock we would’ve been wise to grab a part of several months ago, much like AFRM and AI; this all happened so damn fast. With a negative cash flow of -$423.74 million and a whopping 10-day average trading volume of 120.48 million shares (people are on to this one), PLTR has a median price target of $8.25, with a high of $18 and a low of $5. This new range for PLTR indicates a downside of anywhere from -48% to -69%. PLTR has six Hold ratings and seven Sell ratings.

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Meta Materials (MMAT)

Semiconductor company Meta Materials develops and produces functional materials and nanocomposites, particularly in lithium battery materials. The micro-cap company is losing far more money than it’s bringing in. In the fourth quarter MMAT reported revenues of $1.4 million and operating expenses of $24.8 million. The company posted a net earnings loss of $79.1 million for the entire year.

Not to mention, the company is embroiled in litigation on accusations of involvement in “spoofing, naked short selling, market manipulation, and fraud.” Meta Materials’ share price is down 83% this year, falling to less than 20 cents per share.

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Dividends For Days: Long-Term Stocks to Buy Now and Hold

Editorial Staff

July 13, 2023

Due to the tech rally surrounding AI, this year has been challenging for many traditional stocks, leaving some investors skeptical about the buy-and-hold strategy…

Despite the underperformance of some established stocks, some long-term investments are still performing well in 2023. These stocks have:

– Dividend yields that exceed 3% and are lucrative relative to low share prices. – Market capitalizations of at least $10 billion.

– Positive returns for the year.

– Solid business foundations and income potential.

Amidst the tech frenzy on the Street, analysts suggest we buy and hold these reliable stocks…

Corning Inc (GLW)

Corning Inc. (GLW) is a leading high-tech glass and ceramics producer. GLW’s “display” segment creates monitors and screens for mobile devices and tablets, while its “optical communications” segment supplies fiber-optic cables for high-speed data connections. GLW’s wide range of products also includes radiation shields, telescopic lenses, and labware. With its expertise, manufacturing scale, and specialized focus, GLW enjoys a competitive advantage, making it an attractive option for long-term income investors.

GLW stock is currently up year-to-date by 10.80%, has a 0.99 beta score, a positive SMA (simple moving average), a positive ROE (return on equity), and a current operating free cash flow of $2 billion. GLW has a PEG (price/earnings/growth) ratio of 0.8x, a P/S (price to sales) ratio of 2.19x, and a 2.5x P/B (price to book) ratio. At its last earnings call, GLW reported EPS of $0.41 vs. $0.39, as projected by analysts, a 4.70% surprise; it also slightly beat on revenue by 0.42%. GLW is forecast to report $3.5 billion at $0.46 per share for the current fiscal quarter. GLW has an annual dividend yield of 3.16%, a quarterly payout of 28 cents ($1.12/year) per share, and a 102.85% payout ratio. With a 10-day average volume of 3.35 million shares, GLW’s average price target is $38.50, with a high of $42 and a low of $30; this implies a potential upside of almost 19% from current pricing. GLW has 13 buy ratings and three hold ratings.

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Welltower Inc (WELL)

Welltower Inc. (WELL) is a prominent operator in the senior housing and health systems sectors across the U.S., Canada, and the U.K. With an aging population requiring more intensive care, WELL’s business model can benefit from a long-term tailwind. Projections indicate that the U.S. population aged 65 and older will exceed 80 million by 2040, more than double the figure in 2000. As a real estate investment trust (REIT), WELL focuses on property ownership and investment rather than direct care provision. While WELL experienced some challenges during the pandemic, its positive momentum is evident. WELL recently raised its forward guidance and is currently trading near its highest levels in almost a year.

WELL’s stock is a strong performer, up 23.04% year-to-date, with a 0.84 beta, a positive SMA, a positive ROE, a PEG ratio of 2.51x, and a P/B ratio of 1.92x. For the present fiscal quarter, WELL is predicted to report sales of $1.6 billion and an EPS of $0.16 per share, with a 1-year EPS growth rate of 221.7%. WELL currently carries a free cash flow of $2.34 billion, with a 10-day average volume of 2.1 million shares. WELL has a 3.02% annual dividend yield, a quarterly payout of 61 cents ($2.44/year) per share,

and an astounding payout ratio of 938.46%. Based on analysts’ forecasts, WELL has a median price target of $88, with a high of $111 and a low of $74, representing a possible price leap of almost 38% from its current position. WELL has 15 buy ratings and one hold rating.

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CubeSmart (CUBE)

CubeSmart (CUBE) may be the most minor stock among its peers on this list in terms of market value, but its unique business model sets it apart. As a manager of self-storage properties and portable storage “cubes,” CUBE taps into the reliable demand for extra storage space. Notably, the self-storage industry thrives during economic downturns when downsizing becomes more prevalent, which can only benefit CUBE. In recent years, CUBE has transformed into a dividend powerhouse, with payouts growing by over 300% in the last decade.

CUBE’s stock is up year-to-date by 12.77%, is trading near the middle of its existing 52-week range, and has a volatility-safe 0.60 beta score. CUBE has both a positive 200-day SMA and a favorable ROE. At its last earnings call, CUBE reported EPS of $0.43 per share vs. $0.33 per share as expected by analysts, a 31.5% beat. For the current quarter, analysts predict that CUBE will post $261.5 million in sales at $0.42 per share, with a 3-5 year EPS growth rate of 13.4% per year. CUBE has a free cash flow of $495 million and a 10-day average volume of 1.37 million shares. CUBE has a 4.32% annual dividend yield, a quarterly payout of 49 cents ($1.96/year) per share, and a 118.71% payout ratio. Based on analyst sentiment, CUBE has an average price target of $50, with a high of $64 and a low of $47; this suggests a potential upside of 41% from its current share price. CUBE has eight buy ratings and six hold ratings.

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Exclusive: Three Robust REITs That Show Enormous Upside

Editorial Staff

July 13, 2023

Are Real Estate Investment Trusts (REITs) worth considering as investment options this year?

According to Wall Street’s best and brightest analysts, there are compelling reasons to believe so. The appeal of REITs lies in their robust balance sheets, attractive valuations, and consistent dividend payouts.

REITs experienced a decline last year, but it was largely driven by investor sentiment rather than business performance. Well, investor sentiment has turned, and these stocks are positioned for a comeback.

Today I’ll be covering three REITs that are also excellent dividend growth stocks to watch…

Rexford Industrial Realty Inc (REXR)

Rexford Industrial Realty (REXR) is a compelling investment option. As a dominant industrial property operator in Southern California’s thriving market, REXR commands top rates for its 400 properties with 44 million square feet of capacity. With projected revenue growth of nearly 30% in 2023 and 20% in 2024, REXR demonstrates strong potential. Its long-term leases with reliable tenants offer an above-average dividend yield and payout relative to its pricing, making it even more attractive.

REXR is down year-to-date by 5.07%, has a 0.83 beta score, a PEG (price/earnings/growth) ratio of 3.01x, and a P/B (price to book) ratio of 1.48x; it is trading near the very bottom of its existing 52-week range. REXR most recently beat analysts’ EPS projections by 36.4%, reporting $0.30 per share vs. $0.22 per share as expected. REXR is forecast to report $196.9 million at $0.26 per share, with a 3-5 year EPS growth rate of 27.2% per year. REXR has an annual dividend yield of 2.93%, a quarterly payout of 38 cents ($1.52/year) per share, and a 139.47% payout ratio. With a 10-day average volume of 1.45 million shares, REXR has an average price target of $67.50, with a high of $77 and a low of $52, representing a potential price upside of 48.5% from current pricing. REXR has seven buy ratings and four hold ratings.

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Prologis Inc (PLD)

Prologis (PLD), the largest REIT on this list and in the United States, with a market value of around $110 billion, excels in the crucial sector of warehouses and logistics facilities. With 1.2 billion square feet of space in 19 countries and serving approximately 6,600 diverse customers, PLD plays a pivotal role in the global economy amidst the era of e-commerce and just-in-time supply chains. PLD’s exceptional stability and projected revenue growth of nearly 40% this year, followed by 12% next year, validate its profitability. This is another REIT with a hefty dividend relative to its current pricing.

PLD’s stock is up year-to-date by 8.01%, has a positive SMA (simple moving average), a 0.99 beta, and is trading around the middle of its 52-week range. PLD has a PEG ratio of 0.55x, a P/B ratio of 2.13x, a D/E (debt to equity) measure of 47.61%, and a free cash flow of nearly $3.7 billion. For the current fiscal quarter, PLD is projected to report $1.7 billion in sales with an EPS of $0.98 per share and a forecasted 3-5 year EPS growth rate of 8.2%. PLD has a 2.86% annual dividend yield, with a quarterly payout of 87 cents ($3.48/year) per share and a payout ratio of 100.93%. With a 10-day average volume of 3.46 million shares, PLD has a median price target of $140.50, with a high of $170 and a low of $128; this indicates a potential price jump of almost 40%. PLD has 20 buy ratings and four hold ratings.

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VICI Properties Inc (VICI)

VICI Properties (VICI) stands out among its peers as an appealing stock choice for investors. With a portfolio encompassing renowned entertainment destinations like Caesars Palace, the MGM Grand, and the Venetian Resort in Las Vegas, VICI owns 49 gaming facilities, over 60,000 hotel rooms, and more than 450 dining and nightlife establishments. Benefiting from a “risk-on” environment and strong consumer spending, VICI projects an impressive 30% revenue increase this year, along with nearly doubling its EPS (earnings per share) compared to fiscal 2022. As a REIT, VICI is committed to delivering at least 90% of taxable income to shareholders, translating into an attractive dividend for investors.

VICI is slightly down year-to-date by 2.72% and is trading near the bottom of its price range; with a 0.96 beta, there’s an excellent opportunity here. VICI shows trailing twelve-month asset growth of 92.50%, a PEG ratio of 2.89x, a P/B ratio of 1.34x, and an operating free cash flow of $2.17 billion. VICI is projected to post sales of $873.5 million at $0.64 per share for the current quarter and shows expected 3-5 year EPS growth of 7.8% per year. VICI has an annual dividend yield of 4.95%, with a quarterly payout of 39 cents ($1.56/year) per share and a payout ratio of 106.25%. With a 10-day average volume of 6.44 million shares, VICI’s average price target is $37, with a high of $43 and a low of $32, suggesting a potential price upside of 36.5% from where it sits currently. From analysts, VICI has 20 buy ratings and two hold ratings.

The Countdown Begins: A Game-Changing Event Looms for Tech Giants

Editorial Staff

July 12, 2023

A significant change is coming for some of the technology sector’s most prominent companies.

What’s about to unfold on July 14th could have a profound effect on companies like Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), along with several other names, and could ripple throughout the tech sector.

If you own or are considering a position in any tech stocks, mark this date on your calendar.

Because this make-or-break event could have a significant impact on your portfolio…

Are tech stocks in for a difficult road ahead?

The market is preparing for a shift as the Nadaq 100 index gets ready to adjust its weighting. Nasdaq announced it would conduct a “special rebalance” of its Nasdaq 100 to reduce the degree to which certain stocks determine the index’s performance.

The index weighting methodology spells out that a rebalancing will take place when any group of stocks amounts to more than 48% of the index. Tech giants Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta are the current dominators after surging in the year’s first half.

The adjustment will be based on shares outstanding as of July 3, with changes set to be announced on July 14 and taking effect before the market opens on July 24. Exchange-traded funds (EFTs) and mutual funds tracking the index could be impacted. The Nasdaq 100 is the basis for some of the world’s most heavily traded products, such as the Invesco QQQ ETF (QQQ).

Experts see this as another indication of the top-heavy quality of the current market. As such, short-term volatility among prominent tech stocks could be the beginning of a significant rebalancing away from big tech in the second half.

If you’re wondering where to look for stocks that could provide massive returns moving forward, we are here to help. Our team has identified one area of the market gearing up for rapid growth over the next few years. Even better, we’ve spotted one little-known company from within this industry set to explode as demand takes off. It could surge any day now.

Energy Essentials: Three Must-Haves For Your Summer Portfolio

Editorial Staff

July 10, 2023

Stocks from the energy sector are, and have been, essential to consider for a place in any investor’s portfolio, and there are several clear reasons why. These reasons haven’t changed:

– Diversification will lower one’s reliance on a single sector’s performance.

– Steadiness (energy is critical, and global demand is here to stay).

– Income generation. Stocks firmly rooted in the sector offer attractive dividends. – There’s endless potential for renewable energy and efficiency solutions.

– Energy consumption rises with economic expansion, providing opportunities to profit. Here are three “classics” with room to soar, steady dividends, and strong analyst approval…

Enbridge Inc (ENB)

Transporting 30% of North America’s oil production, 20% of which accounts for U.S. consumption, Enbridge Inc. (ENB) operates the third-largest natural gas utility on the continent. ENB has a diverse renewable energy portfolio, including expanding European offshore wind operations. ENB’s robust energy infrastructure generates stable cash flow supported by long-term contracts and regulated rates. ENB shares most of this consistent cash with investors through attractive dividends while retaining the rest for expansion. With a substantial backlog of secured expansion projects, ENB has a clear vision of growth and has been paying increased annual dividends for 22 consecutive years.

ENB is currently down year-to-date by 5.93%, has a 0.66 beta score, and is trading near the bottom of its 52-week range. At its most recent earnings call, ENB beat analysts’ EPS projections, reporting $0.85 per share vs. the $0.84 per share expected and also showing year-over-year profit margin growth of 11.98%.

ENB is set to report $8.8 billion in sales at $0.52 per share for the current quarter. ENB has an annual dividend yield of 7.12% and a quarterly payout of 65 cents ($2.60/year) per share. With a 10-day average volume of 2.64 million shares, ENB has an average price target of $43.57, with a high of $48.51 and a low of $39.97, indicating a potential 32% price upside. ENB has 11 buy ratings and 11 hold ratings.

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ConocoPhillips (COP)

ConocoPhillips (COP) is notable for its low operating costs. This advantage is complemented by COP’s strong balance sheet, boasting an investment-grade bond rating and a low leverage ratio. These factors provide resilience during periods of low oil and gas prices. COP is positioned to generate substantial cash flow in the future, projecting approximately $115 billion in cumulative free cash flow over the next decade, assuming an average oil price of $60 per barrel. Considering current oil prices may surpass this level in mid-2023, COP has the potential for even greater free cash flow, which it intends to share with investors.

Down year-to-date by 11.85% and near the bottom end of its 52-week range, COP has an attractive 0.70 beta and a PEG (price/earnings/growth) ratio of 0.72x. COP most recently surpassed analysts’ EPS forecasts by a 15.11% margin, reporting $2.38 per share vs. the $2.07 per share that was expected. COP is expected to show $15.5 billion in sales at $2.14 per share for the current fiscal quarter. COP has a 5.09% annual dividend yield and a quarterly payout of $1.32 ($5.28/year) per share. With a 10-day average volume of nearly 5 million shares, COP’s median price target is $127, with a high of $165 and a low of $94; this suggests a possible 59% price leap from its current spot. COP has 18 buy ratings and eight hold ratings.

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Nextera Energy Inc (NEE)

NextEra Energy (NEE) excels financially in the electric utility sector with a top credit rating and a sound dividend policy. Projected annual dividend growth of 10% through 2024 makes NEE an exceptional renewable energy dividend stock. NEE’s Real Zero plan launched last year aims to eliminate carbon emissions from its operations by 2045. This involves expanding solar energy production, maintaining nuclear energy, and replacing natural gas with green hydrogen and renewable natural gas in power plants. These strategic investments from NEE are expected to boost earnings while reducing emissions, benefiting both shareholders and the environment.

NEE is currently down year-to-date by 10.36%, trading at the bottom of its existing 52-week range, and boasts a 0.47 beta along with a PEG ratio of 1.97x. NEE most recently beat analysts’ EPS projections by a 16.7% margin and shows robust year-over-year growth in revenue (+132.39%), net income (+562.53%), EPS (+552.17%), and net profit margin (+298.98%). For the current quarter, NEE is projected by analysts to report $6.4 billion in sales at $0.81 per share. NEE has an annual dividend yield of 2.49% and a quarterly payout of 47 cents ($1.88/year) per share. With a 10-day average volume of 7.1 million shares, NEE has an average price target of $91, with a high of $108 and a low of $84, representing a potential price upside of over 44% from its current place on the charts. NEE has 16 buy ratings and five hold ratings.

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Three Trusty Tech Stocks For Stress-Free Industry Exposure

Editorial Staff

July 10, 2023

If you love tech and are new to investing, it’s crucial to focus on established companies with solid financials and focused, proven business models rather than gamble on any stock without a strong foundation.

We’ve landed on three high-quality tech stocks that meet important criteria, such as positive net income, market valuations of $100+ billion, and favorable analyst recommendations. With these comes excellent exposure to the tech market, which increases the likelihood of long-term wealth and success.

These are as solid as they come. They’re performing very well, and the analysts love them…

Qualcomm Inc (QCOM)

As a leading semiconductor company, Qualcomm (QCOM) focuses on advanced broadband technology and outsources chip manufacturing. QCOM derives a large part of its sales from Apple (AAPL). Despite a cyclical industry downturn, QCOM made more than $2 billion in net income last quarter and experienced growth in its automotive and IoT (Internet of Things) businesses. With its significant revenue from smartphone makers and intellectual property licensing, QCOM stands to benefit from the expanding handset market and emerging opportunities in sectors like automotive and IoT. How will AI play a role?

QCOM stock is up year-to-date by 4.80% yet is still trading near the bottom of its 52-week price range, having room to increase. With an ROE (return on equity) of 64.36% and a PEG (price/earnings/growth) ratio of 0.67x, QCOM is forecasted to report $8.5 billion in sales at $1.81 per share for the current fiscal quarter. Last quarter, it beat revenue projections by around $150 million, a 1.66% margin. QCOM has an annual dividend yield of 2.78% and a quarterly payout of 80 cents ($3.20/year) per share. With a 10-day average volume of 7.04 million shares, QCOM’s average price target is $135, with a high of $152 and a low of $95, representing a potential price upside of 32%. QCOM has 21 buy ratings and nine hold ratings.

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Meta Platforms Inc (META)

Given the positive reception of META’s recent Threads launch, analysts from Bank of America Securities issued “buy” ratings for its stock. Despite skepticism about its impact on share prices, Wall Street remains highly optimistic about META. The timing of the Threads launch is also potentially very advantageous for META because, with the potential to attract users away from Twitter, especially considering recent decisions made by Elon Musk, Threads is well-positioned for success. An increasing number of users have already expressed their intentions to switch from Twitter to Threads. If this trend continues, it could provide the necessary momentum for META to continue its current upward trajectory.

META is currently up year-to-date by a whopping 142.61%, with a free cash flow of almost $14 billion and a PEG ratio of 0.98x. For the present fiscal quarter, META is forecasted to report $30.9 billion in sales at $2.89 per share. Most recently, META defeated Wall Street analysts’ EPS and revenue forecasts; it reported EPS of $2.20 per share vs. $1.95 per share as projected (a 13.07% margin) and revenue of $28.64 billion vs. $27.66 billion as expected (a 3.57% margin). With a 10-day average volume of 26.08 million shares, META has a median price target of $295, with a high of $400 and a low of $100; this indicates a potential price upside of 37%. META has 47 buy ratings and eight hold ratings.

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Broadcom Inc (AVGO)

Broadcom (AVGO) is a versatile semiconductor company known for its analog devices. AVGO serves diverse markets, and while having a significant stake in the smartphone market, the firm has diversified through strategic acquisitions such as picking up Brocade, CA Technologies, Symantec’s enterprise security business, and the ongoing VMware deal. With the rise of 5G networks, the demand for radio frequency devices is also set to increase, benefiting AVGO. Its strong presence in data centers and cloud computing fuels growth that could move well beyond traditional semiconductor sales.

AVGO’s stock is up year-to-date by 51.66% and is forecasted to report sales of $8.9 billion at $10.43 per share for the current quarter; it holds a free cash flow of $13.67 billion. AVGO, at its latest earnings call, reported EPS of $10.32 per share vs. $10.14 per share as expected by analysts (a 1.75% win) and revenue of $8.73 billion vs. the $8.71 billion predicted (a slight 0.31% win). AVGO also reported year-over-year growth in crucial areas such as revenue (+7.77%), net income (+34.40%), EPS (+37.44%), and net profit margin (+24.72%). AVGO has a 2.17% annual dividend yield, a quarterly payout of $4.60 ($18.40/year) per share, and a 54.47% payout ratio. With a 10-day average volume of 2.21 million shares, AVGO has an average price target of $900, with a high of $1050 and a low of $800; if you can afford it, this suggests the potential for an almost 24% price jump. AVGO has 22 buy ratings and four hold ratings.

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Stock Hotlist: Strong Conviction Buys

Editorial Staff

July 9, 2023

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 stocks to choose from, picking the right stocks can prove to be nearly impossible…

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

That’s why we’ve done it for you.

We sort through thousands of stock ideas and narrow them down to a few that are primed for solid price action in the near future.

This week, we’ve narrowed it down to three stocks that could skyrocket in the coming weeks.

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

Chubb Limited (CB)

Given the recent volatility stemming from bank closures, the sector can make an attractive environment to hunt for value. And while the rapid rise in interest rates has proved challenging to some banks, some segments of the financial sector benefit from higher rates. One of these is the insurance industry, where companies generally invest the premiums they receive in fixed-income instruments.

Insurers such as Chubb Limited collect premiums from policyholders typically at the start of a contract period and can now invest that money at much higher rates.

With a market capitalization of $79.6 billion, Chubb is one of the world’s largest property and casualty (P&C) insurance providers and the largest publicly traded P&C insurer. The more than 140-year-old insurer is recognized for having a strong brand name, outstanding customer service, and careful management of its liabilities over the years.

Chubb stock has declined 13% YTD and currently trades at an attractive 10.8 time 12-month forward earnings, well below the industry average of 14.8 times 12-month forward earnings. The analysts offering recommendations say to Buy CB stock. A median 12-month price target of 244.00 represents a +26.96% increase from the current price.

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Entegris, Inc (ENTG)

While 2022 was wrought with challenges for semiconductor industry solutions and materials provider Entegris, 2023 has brought a stellar rebound. And this could be just the beginning. After losing more than half of their value last year, Entegris shares are up more than 71% YTD.

The semis industry has been flashing signals that it is on the cusp of its next cyclical upturn adding steam to ENTG’s own organic growth drivers. The London Company Mid Cap Strategy made the following comment about Entegris in its first quarter 2023 investor letter:

“Entegris rebounded in Q1 as the semiconductor industry showed signs of stabilization. We believe ENTG can continue to gain share due to its breadth of solutions, unit-driven business, and higher purity requirements. The transition of new technology and nodes will be tailwinds for some time. Over the years, ENTG has drastically increased its size and scale and expanded its addressable markets, becoming one of the most diversified players in the semi-materials industry. We remain attracted to the industry’s high barriers to entry, limited competition & high switching costs.”

The pros on Wall Street say to Buy ENTG. While shares are up significantly in recent months, we see a multi-year runway of outperformance for this unique semis player.

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NextEra Energy Inc. (NEE)

Most stocks from the utility sector are slow-growing income plays. As such, an electric utility stock wouldn’t typically be considered a growth stock. However, Wall Street expects NextEra Energy to grow its earnings by an annual average of around 9% over the next five years. This comes on the heels of averaging more than 8% adjusted earnings growth since 2007. For all intents and purposes, NextEra Energy is a growth stock within the utility sector.

The biggest differentiator that has helped NextEra achieve this stellar growth rate is its focus on renewable energy. NextEra is currently generating 31 gigawatts (GW) of capacity from renewable energy sources, including 23 GW from wind and 5 GW from solar – which has helped to substantially lower electricity generation costs for the company and its customers.

NextEra Energy pays an annual dividend of 2.47% and is currently trading at its lowest 12-month forward price-to-earnings ratio in five years, which makes it a prime growth opportunity right now. Overall, NEE gets a Strong Buy rating from the consensus based on 19 recent reviews, including 15 Buys and 4 Holds. An average price target of $90.50 represents a 26% upside.

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Don’t Be Fooled By These Toxic Tickers

Editorial Staff

July 7, 2023

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

The wrong stocks, though… They can do a whole lot more than “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…

Check Point Software Technologies (CHKP)

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Algoma Steel (ASTL)

Algoma Steel recently reported that its net income for its fiscal fourth quarter plummeted 108% from a year earlier due to lower steel prices and weakening demand for its products. The company reported a fiscal Q4 net loss of $20.4 million, down from a net profit of $242.9 million in 2022. That equated to a loss per share of 19 cents — a dramatic difference from income of $1.45 a share just a year ago. We don’t foresee a significant shift for ASTL anytime soon.

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Gap Inc. (GPS)

Interest rates in America are now at their highest level in 16 years. While higher rates might tame inflation in the long run, they will likely slow the economy in the near term and negatively impact certain market areas. Clothing retailers like Gap Inc. tend to suffer when consumers cut back on discretionary spending. This reality has been reflected in Gap’s earnings performance, which has been disappointing over multiple quarters. The current high-interest rate climate has proven to be a double whammy for The Gap, coming from two years of pandemic restrictions at its stores.

The retailer will likely continue struggling while rates remain high and consumers tighten their purse strings. Slowing sales, poor financial results, and pressure from higher interest rates have pushed GPS stock 32% lower in the last year. The company’s share price is now down nearly 70% over the past five years. The current consensus among 20 polled analysts is to Hold Gap shares.

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Stocks From Warren Buffett’s Portfolio: The Best of the Best

Editorial Staff

July 7, 2023

What if you don’t want a fancy private financial consultant to make portfolio changes and micromanage your fiscal responsibilities autonomously? Not necessary, so long as you know who to listen to…

One such example of a person investors often turn to is Warren Buffett, who is objectively one of the most successful wealth builders in human history. It’s comforting knowing that people such as him exist because it means that maybe we can do it too! His Berkshire Hathaway boasts a hell of a portfolio.

Let’s look at three of his favorites. They have plenty to offer, and yes, that includes dividends…

Apple Inc (AAPL)

If you’ve been keeping up with financial news, then you know that Apple (AAPL) is a hot stock on the Street right now, and there are reasons why Warren Buffett appears to be as fond of it as he is. AAPL’s launch of the iVision Pro spatial computing headset positions it to lead the next computing era. With its strong consumer hardware reputation, device integrations, and extensive research, AAPL appears primed for success in spatial computing. Initially priced at $3,500, AAPL’s product may be costlier than competitors like Meta Platforms’ Quest. Also notable is AAPL’s utilization of AI and machine learning, reinforcing its position as a top tech player. AAPL is set to deliver significant profits in the future.

AAPL is up year-to-date by 48.07%. AAPL shows trailing revenue of $385 billion at $5.89 per share, and during the same time, it made a $94.3 billion profit due to its 24.49% net margin. AAPL has a remarkable ROE (return on equity) of 145%. At its last earnings call, AAPL reported EPS of $1.52 per share vs. $1.43 per share as expected by analysts, winning by a 6.30% margin; it exceeded analysts’ revenue projections by $2 billion ($94.84 B vs. $92.84 exp), a 2.15% surprise. AAPL has an annual dividend yield of 0.50% and a quarterly payout of 24 cents ($0.96/year) per share. With a 10-day average volume of 51 million shares, AAPL’s median price target is $190, with a high of $240 and a low of $140. This suggests the potential for a 25% price upside. AAPL has 29 buy ratings and 13 hold ratings. AAPL is currently Buffett’s largest holding.

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Coca-Cola Co (KO)

Coca-Cola (KO), Berkshire Hathaway’s fourth-largest holding, is gradually entering the alcoholic beverage market. Recently, KO acquired Finlandia vodka from Brown-Forman, expanding into the premium spirits segment. The purchase was made through Coca-Cola HBC, where KO owns a 23% stake. KO has also introduced ready-to-drink cans of Jack Daniels mixed with the classic Coke recipe in the United Kingdom, boosting sales in the region. KO has also launched alcoholic products in Japan and the U.S. through partnerships with Molson Coors and Constellation Brands. KO shows a strong balance sheet.

KO is currently down year-to-date by 4.67%, putting it on a bit of an opportunistic dip. With a safe 0.55 beta, KO has a free cash flow of $9.13 billion. At its most recent earnings report, KO exceeded analysts’ projections on EPS and revenue by 5.40% and 1.62%, respectively, and shows year-over-year growth in key areas: revenue (+4.66%), net income (+11.72%), EPS (+12.5%), and net profit margin (+6.75%). KO has a 3.04% annual dividend yield, a quarterly payout of 46 cents ($1.84/year) per share, and a nice 78.41% payout ratio. With a 10-day average volume of 14.79 million shares, KO has a median price target of $70,

with a high of $75 and a low of $63, representing a potential price leap of almost 24% from its current position. KO has 19 buy ratings and seven hold ratings.

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Kroger Co (KR)

Buffett’s “value play” is arguably Kroger (KR), the second-largest supermarket chain in the U.S., operating over 2,700 stores across 35 states. While growth was stagnant before the pandemic, KR swiftly adapted and experienced a sales boost by embracing digital strategies. With a renewed focus on fresh food, KR has been gaining momentum. KR’s affordable and high-quality company-branded food lines have garnered popularity, paving the way for further growth. Although comparable sales growth initially dropped after the pandemic surge, KR’s has since stabilized and is steadily increasing.

KR stock is up by 6.35% year-to-date, is trading near the middle of its existing 52-week range, and comes with a safe beta score of 0.47. With an ROE of just over 25%, KR slightly missed on revenue at its most recent earnings call but reported EPS of $1.51 per share vs. $1.43 per share as predicted by analysts, exceeding their expectations by 3.97%. KR also shows year-over-year growth in crucial areas such as revenue (+1.27%), net income (+44.88%), EPS (+46.67%), and net profit margin (+42.95%) and is forecasted to report $34 billion in sales at $0.91 per share for the current fiscal quarter. KR has a 2.45% annual dividend yield and a quarterly payout of 29 cents ($1.16/year) per share. With a 10-day average volume of 4.42 million shares, KR has an average price target of $51.70, with a high of $65 and a low of $42, representing a potential price upside of over 37%. KR has 12 buy ratings and 12 hold ratings.

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1...484950...67 Page 49 of 67

Abrdn Income Credit Strategies Fund (ACP)

Algoma Steel (ASTL)

Check Point Software Technologies (CHKP)

Palantir Technologies Inc (PLTR)

Meta Materials (MMAT)

Corning Inc (GLW)

Welltower Inc (WELL)

CubeSmart (CUBE)

Rexford Industrial Realty Inc (REXR)

Prologis Inc (PLD)

VICI Properties Inc (VICI)

Are tech stocks in for a difficult road ahead?

Enbridge Inc (ENB)

ConocoPhillips (COP)

Nextera Energy Inc (NEE)

Qualcomm Inc (QCOM)

Meta Platforms Inc (META)

Broadcom Inc (AVGO)

Chubb Limited (CB)

Entegris, Inc (ENTG)

NextEra Energy Inc. (NEE)

Check Point Software Technologies (CHKP)

Algoma Steel (ASTL)

Gap Inc. (GPS)

Apple Inc (AAPL)

Coca-Cola Co (KO)

Kroger Co (KR)

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