Reports

Tech Titans: Three Must-Have A.I. Stocks for Your Portfolio

June 26, 2023

AI has already been with us for many years; we use it daily, yada yada… you know, I know, we all know. Nobody other than the insiders, though, could’ve predicted that in the first half of 2023, chatbot technology would suddenly send the stock market into a hysterical tech rally…

And, well, here we are. A lot of investors are leaning into it. But should we?

Many say yes, but the question is: to what degree? Should we be purely bullish and allocate our tech funds to one name? Not necessarily. ChatGPT is certainly a game-changer in many ways, but the stock exchange game hasn’t changed… not yet. Following trends, consider this a great list of options.

You likely know these names, but there’s a great reason you do: These are damn good ones…

Alphabet Inc (GOOGL)

Alphabet Inc. (GOOGL), the parent company of Google, recently introduced Bard, its own AI chatbot similar to ChatGPT. Bard leverages online information to provide quick and concise answers by accessing, compiling, and summarizing data. Rather than receiving a list of web pages from a search engine, users get a single, comprehensive solution. Although Bard encountered a misstep during its test launch, GOOGL has other AI offerings. GOOGL provides business AI tools and infrastructure through its Google Cloud Computing division. Considering GOOGL’s dedication to AI innovation, including the introduction of Bard and its existing AI solutions, it positions itself as a compelling AI stock investment opportunity.

GOOGL stock is currently up year-to-date by 37.67%, has a positive Simple Moving Average, and a 1.09 beta. GOOGL has TTM revenue of $58.59 billion at $4.45 per share, profiting more than $58 billion through its 20.58% net margin, and has an ROE (return on equity) of 22.76%. At its last earnings report, GOOGL reported EPS of $1.17 per share vs. $1.07 per share as predicted by analysts (a 20.58% surprise), and it has a free cash flow of almost $56 billion. GOOGL is forecasted to report $72.7 billion in sales at $1.33 per share for the current quarter. With a 10-day average volume of 32.4 million shares, GOOGL has a median price target of $130, with a high of $190.32 and a low of $100, representing a potential price upside of almost 57%. GOOGL has 48 buy ratings and five hold ratings.

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NVIDIA Corp (NVDA)

The A100 chip by Nvidia Corp. (NVDA) provides the necessary computational power for chatbots like ChatGPT. However, NVDA is expanding its offerings beyond the A100 chip with DGX supercomputers, considered the ultimate hardware for machine learning. DGX supercomputers are actively deployed by NVDA worldwide, running continuously to refine data and process new forms of AI. NVDA CEO Jensen Huang refers to them as “modern AI factories.” Customers in various countries, including Japan, Ecuador, and Sweden, use NVDA’s DGX H100 supercomputer systems as intelligence manufacturing centers. These robust systems that NVDA is utilizing have already found applications in diverse fields such as legal research, healthcare, digital advertising, and higher education.

Recently hitting a market cap of $1 trillion, NVDA’s stock is up year-to-date by a resounding 193.18%. NVDA’s TTM revenue is $25.88 billion at $4.49 per share, and it made a net profit of $4.79 billion using its 18.52% net margin, and it has an ROE of 18.85%. NVDA has a PEG ratio of 2.45x and a D/E (debt to equity)

measure of 44.67%. NVDA has a modest dividend yield of 0.04% and a quarterly payout of 4 cents ($0.16/year) per share. NVDA, with a 10-day moving average of 53,23 million shares (people are catching on), NVDA has a median price target of $460, with a high of $600 and a low of $175, leaving room for more than 40% upside potential. NVDA has 47 buy ratings and seven hold ratings.

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International Business Machines Corp (IBM)

International Business Machines (IBM) is a strong AI stock due to its Watson products offering AI and ML (machine learning) services. IBM’s solutions assist customers in enhancing decision-making and increasing profitability. With a portfolio of AI applications, IBM’s Watson enables improved customer service, cost reduction, outcome prediction, and workflow automation. Additionally, enterprise customers can utilize IBM’s Watson Studio to develop and expand their own AI applications. IBM’s strategic acquisitions, such as Turbonomic, Instana, and Databand.ai, further bolster its AI capabilities.

IBM is down year-to-date by 6.90% and has a 0.85 beta score. With $60.59 billion at $2.24 per share in TTM revenue, it made a net income of $2.05 billion via its 3.03% profit margin. IBM most recently beat analysts’ EPS forecasts by 9.73%, and it reports year-over-year revenue growth (+0.39%), net income (+26.47%), EPS (+24.69%), net profit margin (+25.97%), and operating income (+46.26%). IBM has an annual dividend yield of 5.06%, with a whopping quarterly payout of $1.66 ($6.64/year) per share through its generous 294.64% payout ratio. With a 10-day average volume of 4.79 million shares, IBM has a median price target of $140, with a high of $162 and a low of $110, suggesting a potential price jump of 23.5% from where it currently sits. IBM has five buy ratings and 11 hold ratings.

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Weekly Radar: Our Top Stock Picks for This Week

Editorial Staff

June 25, 2023

The major indices each declined more than 1% last week, putting an end to the impressive streak of eight consecutive weekly gains for the NASDAQ, five for the S&P 500, and three for the Dow. Concerns about further interest-rate hikes and a decelerating global economy weighed heavily on stocks.

Unfortunately, no crystal ball can tell us which stocks will present significant price action in the coming days. With over 4,000 publicly traded companies available in The U.S., staying ahead of potential moves can prove to be a challenging task that requires hours each day devoted to market research.

To provide our readers with a competitive edge, we sort through thousands of stock ideas each week and narrow them down to three that may be primed for big price jumps in the near future.

So what are the best tickers to have on your radar now? Get the inside scoop on the top stocks to watch this week here.

PayPal Holdings Inc. (PYPL)

Unlike many fintech companies, digital payment giant Paypal is incredibly profitable. Yet its stock is down more than 80% from its July 2021 ATH, and it trades at a reasonable 29 times price to earnings, well below its historical average P/E of 50.

With e-commerce activity on the decline since the thick of the pandemic, PayPal is seeing slower growth. Unrelenting high levels of inflation have put a dent in discretionary spending, which has hurt PayPal. Still, thanks to its firm financial footing, the company has plenty of room to handle a possible prolonged economic downturn.

Despite estimates calling for roughly 20% earnings growth this year, PayPal stock trades below 16 times free cash flow and about 14 times operating cash flow, indicating that investors may be underestimating its recovery potential. Among 48 polled analysts, 33 say to Buy PYPL, and 15 call it a Hold. There are no Sell ratings for the stock. A median 12-month price target of $89.50 represents a 35% increase from the current price.

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Nike Inc (NKE)

There are compelling reasons to invest in one of the most well-known sports apparel brands ever put on the market; the company I’m talking about is Nike Inc. (NKE). With solid demand on its side, NKE’s direct, wholesale, and digital sales have all grown over the years. NKE also has control over its inventory levels, which increased in line with the company’s sales. Also, a benefit for NKE is its market share expansion and its dominance over its competitors. Adidas and UnderArmour, its two biggest challengers, have faced difficulties, only solidifying Nike’s market position.

NKE’s stock is down year-to-date by 4.50%, it shows TTM revenue of $50.68 billion at $3.57 per share, and it made a same-period net income of $5.5 billion via its 10.82% profit margin. NKE has a PEG ratio of 1.88x, an ROE of 37.34%, and year-over-year revenue growth (+13.97%). For the most recent quarter, The company reported an EPS of $0.79 per share vs. the $0.55 projected by analysts (a 44.57% surprise), and it reported $12.39 billion in sales vs. the $11.48 expected (a 7.92% beat). The stock sports an annual dividend yield of 1.21% and a quarterly payout of 34 cents ($1.36/year) per share. With a free cash flow of $2.87 billion and a 10-day average volume of 9.91 million shares, NKE has a median price target of $138, with a high of $160 and a low of $95, allowing the potential for a 43% price increase.

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TEVA Pharmaceutical Industries LTD (TEVA)

The global leader in generic drugs, Teva Pharmaceutical, is currently trading at an undeniably low 3x forward price-to-earnings multiple. The stock is so cheaply priced right now because of its high debt load of $20.7 billion as of the end of March. But that’s down from $21.2 billion as of the end of last year. And with the company projecting up to $2.1 billion in free cash flow for 2023, it could have room to pay down more debt this year.

Teva recently announced an agreement with Johnson & Johnson that will allow it to launch its Stelara biosimilar, AVT04, in the U.S. market by Feb. 21, 2025—generating just under $10 billion in revenue for the healthcare giant last year. Stelara is a massive moneymaker for J&J and will provide consumers with a lower-priced alternative that could help accelerate Teva’s growth.

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Dump These Stocks Now

Editorial Staff

June 23, 2023

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 the 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 (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 certain 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 285.52%, 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 6 buy ratings and 4 hold 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 81% this year, falling to less than 25 cents per share.

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Mondelez International Inc. (MDLZ)

Recession fears and concerns around the financial sector have investors seeking refuge in consumer staples stocks to shore up their portfolios. However, based on technical analysis some of these traditionally defensive tickers now seem overbought. Case in point – Mondelez.

A stock is considered overbought if its 14-day RSI goes above 70, and is typically seen as an indicator to consider cutting back on exposure. By this measure, with an RSI of 89.2 MDLZ tops the list as one of the most overbought names from the S&P 500.Wall Street sees little-to-no upside potential for the stock over the next twelve months. According to FactSet, the average analyst price target for Mondelez implies an upside of just 3%.

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Three MORE Dividend Discounts For Summer Peace of Mind

Editorial Staff

June 23, 2023

Given that it’s summertime, many of us like to take a break from the everyday hustle… However, what if I told you that there are plenty of stocks out there that can offer the following?

– A reliable, stable income stream

– Act as a buffer, safeguarding portfolios from declines

– Long-term wealth accumulation

– Resilience during market uncertainty

– Even more wealth accumulation through reinvestment plans

– Can be bought and held with confidence by long-term income investors

Of course, it’s all about picking the right dividend stocks, and that’s what I strive to do. Earlier this week I wrote about three undervalued dividend payers with low beta scores. If you missed that list you can find it here. With many so many attractive options available, the task of whittling my choices down to just three stocks proved to be more of a challenge than I could bare. Therefore, here are three MORE undeniably low-priced stocks that can increase your returns while you relax this summer…

Comcast Corp (CMCSA)

Comcast Corp. (CMCSA) is an attractive dividend stock to consider purchasing for several reasons: It’s stock is considered undervalued— and that pricing power helps it maintain stability in the broadband market. CMCSA has increased its dividend by around 17% annually since 2008, and it boasts a solid balance sheet. This makes CMCSA a compelling and reliable choice among its dividend-paying peers.

CMCSA is currently up year-to-date by 16.36%, and it has TTM revenue of $120 billion at $1.34 per share, from which it made a net income of $5.66 billion via its 4.71% net margin. CMCSA has a PEG (price/earnings/growth) ratio of 0.82x, a P/S (price to sales) ratio of 1.47x, a P/B (price to book) ratio of 2.06x, and a free cash flow of $10.37 billion. For its last earnings call, it reported EPS of $0.92 vs. the $0.83 expected by analysts (a 10.92% surprise), and CMCSA beat revenue projections by 1.28%. CMCSA has an annual dividend yield of 2.86%, a quarterly payout of 29 cents ($1.16/year) per share, and an 82.09% payout ratio. With a 10-day average volume of 16.6 million shares, CMCSA has a median price target of $46, with a high of $55 and a low of $36, representing a potential price jump of over 35% from its current position. CMCSA has 21 buy ratings and 11 hold ratings.

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Blackstone Inc (BX)

As one of the top undervalued stocks for Q2 2023, Blackstone (BX) presents an opportunity for investors with its price trading below its intrinsic, or true, value. With extensive expertise in alternative asset management, BX excels in revitalization through strategies like cost-cutting and acquisitions. BX‘s focus on dividend payouts aligns with the interests of income investors, and despite recent redemption requests for real estate income, the overall expectation is that it will maintain stability and generate consistent dividend payments. For these reasons, BX stands out as an attractive option.

Although BX stock is up year-to-date by 19.23%, it is stll trading near the bottom of its existing 52-week range. BX shows $4.26 billion in TTM revenue at $0.81 per share, and its same-period net income is $616.5 million through its profit margin of 14.46%. BX has a forward P/E (price to earnings) ratio of 18x, a PEG ratio of 0.53x, and estimated 3-5 year EPS growth of +26.1%. For its most recent earnings report, BX beat analysts on EPS, reporting $0.97 vs. the $0.95 predicted. BX has an annual dividend yield of 4.38%, with a

quarterly payout of 98 cents ($3.92/year) per share, and a staggering 543.21% payout ratio. With 3.12 million shares representing its 10-day average trading volume, BX has a median price target of $101.50, with a high of $115 and a low of $85; this suggest a more than 30% increase from where its price is currently positioned. BX has 15 buy ratings and 5 hold ratings.

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Abbvie Inc (ABBV)

Despite facing competition and a potential revenue decease due to its blockbuster immunology medicine, Humira, AbbVie Inc. (ABBV) remains an excellent dividend stock with attractive prospects. While ABBV‘s lineup of medicines, including Qulipta and its Botox franchise, will help offset Humira’s sales decline, other medications are expected to surpass peak annual sales in the next couple years and secure its momentum. As a “Dividend King” with 51 consecutive years of dividend increases, ABBV has raised its payouts by an impressive 270% since it split from Abbott Laboratories in 2013. ABBV‘s long-term business outlook remains strong, supporting sustained dividend growth for years to come.

ABBV is near the bottom of its existing 52-week range and is down year-to-date by 15.10%; despite this, it has a safe beta score of 0.55. ABBV shows TTM revenue of $56.75 billion at $4.24 per share, from which it made a profit of $7.5 billion in net income via its 13.37% margin, and it has a lucrative ROE (return on equity) of 51.28%. ABBV recently met analysts’ EPS forecasts, and shows projected 3-5 year EPS growth of 13.2% annually. ABBV has a 4.33% annual dividend yield, a quarterly payout of $1.48 ($5.92/year) per share, and a generous 134.35% payout ratio. With $21.6 billion in free cash flow and a 10-day average volume of 6.09 million shares, ABBV has a median price target of $163, with a high of $201 and a low of $135; this represents a potential 47% price upside. ABBV has 14 buy ratings and 13 hold ratings.

Three Dividend Discounts for Passive Profits this Summer

Editorial Staff

June 22, 2023

Regardless of what your investing strategy is right now, ask yourself this: What’s something you’d like to enjoy this summer? If your answer is peace of mind, then you’re a lot like me.

Dividend-payers show strength during economic shifts and policy changes, making them valuable during the summer, when a lot of everyday consumers are relaxing. Investors can relax too, because all it takes is some simple work to ensure that our portfolios generate a lucrative passive income stream.

Of course, it’s all about picking the right dividend stocks, and that’s what I strive to do. Today, I’m looking at three discounted stocks with low beta scores (which measure volatility risk in relation to the broader market), and Warren Buffet even owns a couple of them.

Join me as I look at three dividend stocks that pay very well and show great consistency:

Pembina Pipeline Corp (PBA)

One pivotal player in Canada’s energy sector that has experienced significant dividend growth over the past six decades is Pembina Pipeline Corp. (PBA). Offering essential services to oil and gas producers, PBA has a strong track record of successful acquisitions and partnerships. With an expected upcoming turnaround in the energy infrastructure sector, PBA holds the potential for substantial returns. Also, PBA recently confirmed its confidence in future performance by increasing its dividend and providing a positive fiscal-year outlook. I like PBA’s commitment to rewarding its shareholders.

A great “buy the dip” opportunity, PBA’s stock is currently down year-to-date by 9.13%, trading near its 52-week low, with a beta score of 0.63 PBA shows $10.87 billion in TTM revenue at $3.69 per share, and it profited $2.73 billion during the same period via its 26.20% net margin. Projected to show $1.8 billion in sales at $0.45 per share for the current quarter, PBA has an ROE (return on equity) of 18.90%, a P/S (price to sales) ratio of 2.12x, a P/B (price to book) ratio of 1.46x, and a $1.2 billion free cash flow. PBA has a 6.23% dividend yield, a quarterly payout of 50 cents ($2.00/year) per share, and a 61.61% payout ratio. With a 10-day average volume of roughly 841 thousand shares, PBA has a median price target of $38.95, with a high of $43.17 and a low of $34.97. This new price range represents a potential 40% price jump. Analysts recommend that we buy and hold stock in PBA.

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Ares Capital Corp (ARCC)

Dividend stocks to always be on the lookout for are those that represent a business development company, of which Ares Capital Corp. (ARCC) is a good example. BDCs, like ARCC, provide financing to small- to medium-sized businesses and must distribute at least 90% of their income to shareholders as dividends to be exempt from federal taxes. This is an appealing opportunity for income investors due to its sustainable dividend and promising growth prospects. As access to credit tightens, businesses are increasingly turning to BDCs, supporting ARCC‘s potential. Notably, Warren Buffett holds shares of ARCC through Berkshire’s subsidiary, New England Asset Management (NEAM).

ARCC’s stock is up only slightly year-to-date by 0.32%, around the middle of its existing 52-week range. With an 0.84 beta, ARCC shows TTM revenue of $2.27 billion at $1.27 per share, from which it made $667 million in net income through its 29.33% profit margin. For its last earnings report, ARCC displayed EPS of

$0.63 per share vs. the $0.56 predicted by analysts (an 11.9% surprise), and for the current quarter, it is expected to post $621.5 million in sales at $0.57 per share. ARCC has an impressive dividend yield of 10.28%, a quarterly payout of 48 cents ($1.92/year) per share, and a 142.52% payout ratio. With a 10-day average volume of 4.96 million shares, ARCC has a median price target of $20.25, with a high of $24 and a low of $18, allowing room for a potential 29.5% price increase. Analysts say buy and hold.

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Crown Castle Inc (CCI)

Also a member of Warren Buffet’s portfolio is Crown Castle Inc. (CCI). As a real estate investment trust (REIT), CCI stands out as an excellent dividend stock due to its strategic focus on operating telecom towers and small cells, crucial for enhancing data capacity in high-traffic areas. With the ever-increasing growth of mobile data usage projected to continue for years, CCI‘s telecom assets hold significant value. Combine that with the fact that its valuation is cheaper than historic levels, and CCI remains an attractive choice for long-term income investors.

Down by 16.70% year-to-date and trading at discounted pricing, CCI has a safe 0.66 beta score and an ROE of 21.92%. CCI shows TTM revenue of $7.02 billion at $3.86 per share, and it generated same-period net income of $1.67 billion on the back of its 23.83% profit margin. With a P/B ratio of 1.01x, CCI most recently reported $0.97 per share vs. $0.91 per share as projected EPS by analysts (a 7.1% surprise), and for the current quarter, it is predicted to show $1.9 billion in sales at an EPS of $1.07 per share. CCI has an annual dividend yield of 5.46%, a robust quarterly payout of $1.56 ($6.24/year) per share, and a generous 159.72% payout ratio. With a 10-day average volume of 2.3 million shares, CCI has a median price target of $150, with a high of $165 and a low of $135, representing the potential for a 46% increase from where its price currently sits. Regarding CCI, analysts are telling us to buy and hold.

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Navigating the Shift: Stocks to Watch in the De-Dollarization Era

Editorial Staff

June 21, 2023

Signs of de-dollarization are unfolding in the global economy. Here’s what you should know.

Efforts by the “BRICS” nations (Brazil, Russia, India, China and South Africa) as well as other major commodity exporters to loosen the dollar’s stranglehold on global commerce have ramped up amid the strains of steep U.S. interest rate rises and sanctions that have frozen Russia out of the global banking system.

Saudi Arabia and China have begun negotiations to settle Chinese oil sales with the yuan. Brazil and China have announced the phase-in of an arrangement for some yuan-clearing trade between the two countries. Russia and China are also now doing a significant portion of their trade in yuan.

While the dollar’s share of FX trading volumes remains high at just shy of 88% the U.S. share of global exports is now estimated at a record low 9% compared to record high 13% for China. China’s yuan now accounts for a record 7% of FX trading volume, while the euro’s slice has shrunk 8% over the last decade to 31%.

Although the greenback still holds the largest share of any global currency by far, a look at global trade shows a more bifurcated picture. Experts say these signs point to the beginning of global de-dollarization. With this in mind we’ve compiled this list of stocks that may become increasingly popular as the global de-dollarization continues to unfold.

Baidu Inc (BIDU)

Baidu, Inc. (BIDU) is a tech firm mainly providing internet search and online marketing solutions. BIDU’s products include Baidu App, Baidu Search, Baidu Feed, Haokan, Quanmin, and more. BIDU offers search-based and feed-based online marketing services, while iQIYI is its online entertainment platform. BIDU was founded by Xu Yong and Yanhong Li in 2000 and is based in Beijing, China. BIDU is up YTD by 19% and has a safe 0.67 beta. With a $49.29 billion market cap, BIDU has $18.4 billion in TTM revenue at $5.63 per share, profiting $1 billion on a 16.60% margin. BIDU has a P/E ratio of 13.7x, a forward P/E (NTM) of 12.1x, a 0.39x PEG, a P/S ratio of 2.47x, a P/B ratio of 1.36x, and a 37.80% D/E measure. BIDU has beaten analysts’ EPS forecasts for the last 13 consecutive quarters, surprising by 29.1% for its MRQ. BIDU shows excellent YOY growth in revenue (+9.62%), net income (+458.19%), EPS (+652.78%), and net profit margin (+701.39%), with a free cash flow of $16.75 billion and a 10-day average volume of 3.53 million shares. BIDU has a median price target of $173.67, with a high of $230.93 and a low of $110.95, representing a potential 94% price upside. Buy Now and Hold.

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HDFC Bank (HDB)

As a major player in the digital payments space, India’s largest private sector lender, HDFC Bank, is in a favorable position to benefit from “the war on cash,” as the country’s economy continues to develop. The company has over 6,300 branches across more than 3,100 cities and towns. HDFC is also a player in the digital payments space and appears poised to benefit from “the war on cash.”

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Shell PLC (SHEL)

British oil major Shell recently announced plans to boost returns to shareholders and keep oil output steady. Shell said it would increase shareholder distributions to 30% to 40% of cash flow from operations, up from 20% to 30% previously. This includes raising the dividend per share by an 15% and executing at least $5 billion of share buybacks in the second half of the year.

“Performance, discipline, and simplification will be our guiding principles as we allocate capital to enhance shareholder distributions while enabling the energy transition,” said Shell’s CEO Wael Sawan , who took office at the start of the year after serving as director of the company’s integrated gas, renewables, and energy solutions. “We will invest in the models that work – those with the highest returns that play to our strengths,” he continued.

SHEL investors enjoy a dividend yield north of 4%. And the predicted payouts over the next couple of years are well covered by record historic earnings. So the near-term income prospects appear rock solid. In terms of valuation, the stock has a price-earnings ratio of 5.10, a price-sales ratio of 0.57 and an enterprise-value-to-sales ratio of 0.66. These numbers imply that Shell may be undervalued. The current consensus among 30 polled investment analysts is to buy stock in Shell. A median 12 month price target of $73.60 estimate represents a 22% increase from its current price.

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Three Stocks to Capitalize on The Summer Shopping Surge

Editorial Staff

June 20, 2023

The summer season not only impacts consumer behavior but also influences investor behavior as well. Rather than hiding in the sand, we should be looking for lucrative retail stocks poised to flourish amidst the inevitable consumer and tourism rise that occurs each summer.

The seasonal retail stocks that tend to do best are involved in the following:

– Renewable energy

– Recreation and leisure

– Outdoor entertainment

– Food and beverage

– Gardening and home improvement

These stocks offer excellent dividends while also holding the potential for long-term gains. Let’s have a look at what makes these three profitable portfolio picks:

Pool Corp (POOL)

One stock that’s considered a good summertime investment is Pool Corp. (POOL). As the leading distributor of swimming pool equipment and outdoor living products, POOL has it all. While other summer stocks struggled during COVID-19, POOL thrived. POOL’s profits soared in 2020, driven by increased home improvement spending, and the growth hasn’t stopped. POOL continued to climb with an impressive 35% net sales increase in 2021 and another 17% surge, reaching $6.2 billion in 2022. With 60% of consumer pool industry spending focused on maintenance and repairs, POOL is well-positioned to capitalize on its loyal customer base, even with fluctuating pool demand.

POOL’s stock is up by 17.32% year-to-date and comes with a safe 0.94 beta score. POOL shows TTM revenue of $5.97 billion at $16.96 per share, from which it profited $667 million on its 11.23% net margin. POOL boasts an ROE (return on equity) of 55.03% and is forecasted to report $1.9 billion in sales with a $6.31 EPS for the current quarter. POOL has an annual dividend yield of 1.23% and a quarterly payout of $1.10 ($4.40/year) per share. With a 10-day average volume of roughly 434 thousand shares, POOL has a median price target of $387.50, with a high of $445 and a low of $315, allowing room for a potential price upside of over 25%. POOL has seven buy ratings and four hold ratings.

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Home Depot Inc (HD)

The largest retailer in the home improvement industry, Home Depot (HD), shines during the summer months, capitalizing on homeowners’ projects. HD consistently achieves its highest revenue figures in the second and third quarters. With robust sales growth of 14.4% in 2021 and 4.1% in 2022, HD is unstoppable. Its trajectory is set for further expansion, making HD a secure investment. Moreover, it’s an attractive option for dividend investors as Home Depot has consistently increased its dividend over many years, including an impressive 10% hike in 2023.

In fiscal 2022 alone, HD raked in $157.4 billion in sales and achieved net earnings of $17.1 billion. With a sturdy 0.93 beta, HD stock is down year-to-date by 4.40%. Showing TTM revenue of $155.7 billion at $16,42 per share, HD made a same-period net income of $16.75 billion via its 10.75% profit margin. HD has a PEG

ratio of 1.96x, a P/S ratio of 1.9x, a stunning ROE of 1,465.49%, and is forecasted to post $42.2 billion in current-quarter sales at $4.45 per share. HD has an annual dividend yield of 2.77%, a quarterly payout of $2.09 ($8.36/year) per share, and a 47.44% payout ratio. With $9.95 billion in free cash flow and a 10-day average volume of 3.95 million shares, HD has a median price target of $320, with a high of $360 and a low of $266, indicating a potential 20% jump from the current pricing. HD has 21 buy ratings and 15 hold ratings.

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Nike Inc (NKE)

There are compelling reasons to invest in one of the most well-known sports apparel brands ever put on the market; the company I’m talking about is Nike Inc. (NKE). With solid demand on its side, NKE’s direct, wholesale, and digital sales have all grown over the years. NKE also has control over its inventory levels, which increased in line with the company’s sales. Also, a benefit for NKE is its market share expansion and its dominance over its competitors. Adidas and UnderArmour, NKE’s two biggest challengers, have faced difficulties, only solidifying NKE’s market position.

NKE’s stock is down year-to-date by 4.50%, it shows TTM revenue of $50.68 billion at $3.57 per share, and it made a same-period net income of $5.5 billion via its 10.82% profit margin. NKE has a PEG ratio of 1.88x, an ROE of 37.34%, and year-over-year revenue growth (+13.97%). For the most recent quarter, NKE reported an EPS of $0.79 per share vs. the $0.55 projected by analysts (a 44.57% surprise), and it reported $12.39 billion in sales vs. the $11.48 expected (a 7.92% beat). NKE has an annual dividend yield of 1.21% and a quarterly payout of 34 cents ($1.36/year) per share. With a free cash flow of $2.87 billion and a 10-day average volume of 9.91 million shares, NKE has a median price target of $138, with a high of $160 and a low of $95, allowing the potential for a 43% price increase. NKE has 22 buy ratings and ten hold ratings.

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Investing with Impact: Today’s Most Promising Buy-Rated ESG Stocks

Editorial Staff

June 19, 2023

Here’s a question I once had, in case you do… What is ESG, and what does it have to do with stocks?

ESG—which stands for Environmental, Social, and Governance—is a standard focused on a company’s prioritization of environmental and social responsibilities. Scores are assigned based on those factors, and they can be crucial indicators of a stock’s long-term sustainability and profitability.

This kind of investment can be a personal one but a wise one as well. Today’s ESG stocks show upside potential and solid metrics. Oh, and they pay dividends, too.

Now I’ll lay out what makes these ESG-strong tickers worth a look. Let’s have that look now:

Gildan Activewear Inc (GIL)

One business that stands out for me is Montreal-based Gildan Activewear Inc. (GIL) for having a substantial positive impact on jobs, taxes, and physical diseases. Last year, GIL launched its groundbreaking “Next Generation ESG” strategy, meant to address environmental and social issues. GIL strives to contribute to improving lives, safeguarding the environment, and fostering a sustainable economy. The recent “Gildan Respects” campaign unifies ESG efforts, highlighting GIL‘s commitment.

GIL’s stock is currently up by 10.02% year-to-date with a 0.93 beta. It shows $3.16 billion in TTM revenue at $2.70 per share, from which it made $493 million with a 15.55% profit margin. GIL has an ROE (return on equity) of 26.23%, a forward P/E of 9.5x, a PEG (price/earnings/growth) ratio of 0.79x, and a P/S (price to sales) of 1.72x GIL has an annual dividend yield of 2.47% and a quarterly payout of 19 cents ($0.74/year) per share. With a 10-day average volume of approx. 744 thousand shares, GIL has a median price target of $38, with a high of $42 and a low of $35.54, representing the potential for an almost 40% jump from its current pricing. GIL has 10 buy ratings and 1 hold rating.

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J B Hunt Transport Services Inc (JBHT)

If ESG is important to you, J.B. Hunt Transport Services Inc.’s (JBHT) stock could be an excellent opportunity to seize. JBHT has set an ambitious emission reduction target for 2034, focusing on expanding the use of biogenic fuels, introducing more alternatively powered equipment to their fleet, and enhancing diesel fuel. JBHT‘s goal aligns with the famous Paris Climate Agreement’s objective of limiting global warming to 2°C, and it’s on an urgent mission toward a sustainable future.

JBHT is up ever-so-slightly YTD by 0.01%, its stock has a safe 0.91 beta measure, and it has a solid 26.20% ROE. JBHT has TTM revenue of $14.5 billion at $8.81 per share, from which it profited $923.8 million in net income via its modest 6.35% net margin. JBHT has a PEG ratio of 1.39x, a P/S ratio of 1.22x, a D/E (debt to

equity) ratio of 32.69%, and is forecasted to report $3.4 billion in sales at $2.02 per share for the current quarter. JBHT has a 0.96% dividend yield and a quarterly payout of 42 cents ($1.68/year) per share. With a 10-day average volume of roughly 712 thousand shares, JBHT has a median price target of $193.50, with a high of $210 and a low of $162. This range suggests a possible 20% or more price increase. JBHT has 15 buy ratings and 11 hold ratings.

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Merck & Co Inc (MRK)

Merck & Co., Inc. (MRK) has achieved much recognition for its sustainability efforts. MRK has been named one of Barron’s 100 Most Sustainable U.S. Companies for the third consecutive year, securing the top position in the pharmaceutical industry. MRK’s overall ranking has notably advanced from 67th place in 2022 to an impressive 29th in 2023. MRK has been named an industry leader in the compilations “America’s Most JUST Companies” by JUST Capital and CNBC, as well as “America’s Most Responsible Companies” by Newsweek and Statista earlier this year. MRK’s stock is down slightly by 2.05% year-to-date and has a notably low 0.36 beta figure. MRK has TTM revenue of $57.8 billion at $5.11 per share, earning a net income of $13 billion via its 22.52% profit margin. MRK has an ROE of 29.71% and a PEG ratio of 1.10x, and it’s projected to report $14.4 billion in sales at $1.85 per share for the current quarter. MRK most recently beat analysts’ EPS and revenue projections by margins of 4.76% and 4.98%, respectively. MRK has a dividend yield of 2.69%, a quarterly payout of 73 cents ($2.92/year) per share, and a 55.47% payout ratio. With a 10-day average volume of 7.31 million shares, MRK has a median price target of $127, with a high of $135 and a low of $102, representing a potential 24% price jump (from where it currently sits). MRK has 20 buy ratings and 7 hold ratings.

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Dump These Overblown Tech Stocks and Try This Instead…

Editorial Staff

June 18, 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.

I’m going to give you the chance to learn about the tech company I think everyone should own instead. But first, if you own any or all of these “toxic stocks,” sell them today.

SoFi Technologies (SOFI)

SOFI has stacked on 91% in 2023, but the rebound may be fleeting. Shares have already started to fall back toward pre-earnings price levels. In the months ahead, if current economic challenges worsen, or if further challenges arise regarding student loans, the impact on revenue could place additional pressure on the stock.

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Bigbear.ai Holdings (BBAI)

BBAI surged a startling 740% in the beginning of the year, with shares advancing from penny stock territory to more than $6 per share in response to the current hype cycle around consumer AI products. To the dismay of many who bought in during Bigbears’s moment in the sun, the stock quickly gave up most of early 2023’s gains. The company has historically struggled to reach profitability from its operations so it may be some time before we see a turnaround for BBAI.

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Uber Technologies (UBER)

Uber shares surged higher immediately following its most recent earnings call. The ride-share giant reported strong numbers, and management provided an upbeat outlook for the current quarter. UBER’s current valuation may be overly optimistic about subsequent quarterly results. Another big run may not be in store for the ticker anytime soon.

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Now that you know which overbought stocks to get rid of, we’re going to let you in on a little-known tech opportunity the likes of which haven’t been seen since Microsoft went public in ’86. This may be the #1 stock pick to ride the revolutionary AI wave. And right now it trades for just $3…

According to recent research, the share price on this name could soon explode to obscene levels…

Word hasn’t gotten out about this stock and we wanted you to be the first to know. But you better move quickly before this company takes off.

Click here to access the exclusive details on this mindblowing opportunity…

Don’t Be Fooled By These Overhyped AI Stocks

Editorial Staff

June 17, 2023

The tech market is being dominated by AI, which has suddenly become a lucrative trend.

It is enormous. Due to ChatGPT’s success and intense competition, it is attracting the interest of investors. The AI market is expected to skyrocket to a staggering $2 trillion by 2030.

Alphabet (GOOGL)’s CEO, Sundar Pichai, warned of its problems, stating that “society will need to prepare for rapid advancements in artificial intelligence that will affect every product across every company.” It is imperative to avoid certain tech stocks that may already be facing negative consequences.

Now, I’ll list three AI-related stocks that should be either avoided or sold. Let’s have a look:

Affirm Holdings Inc (AFRM)

Our first stock to avoid is Affirm Holdings (AFRM), a fintech firm specializing in “buy now, pay later” services, and it faces significant hurdles. Despite an initial surge in growth facilitated by AFRM’s partnership with Peloton (PTON), there has been a struggle to sustain momentum. AFRM’s most recent quarter saw results that confirmed its lack of profitability. Also, being a consumer credit business, AFRM will likely experience mounting challenges amid a dim economic outlook.

AFRM’s stock is up year-to-date by 93.74%; you’ll notice a trend where, after seeing a YTD gain, you’ll see negative numbers from there on. For instance, AFRM has an ROE (return on equity) of -37.97% and a 3.65 beta, which indicates how prone the stock is to volatility. AFRM has a TTM revenue of $1.51 billion, yet it lost $965 million thanks to its -64.12% profit margin. AFRM shows negative year-over-year growth in net income (-276.21%), EPS (-263.16%), and net profit margin (-250.36%). With a 10-day average volume of roughly 24 million shares, AFRM has a median price target of $16, with a high of $20 and a low of $6; this suggests a potential -68% drop from its current price. AFRM has 10 hold ratings and 3 sell ratings.

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C3.ai Inc (AI)

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Palantir Technologies Inc (PLTR)

Palantir Technologies Inc. (PLTR), 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 a wild 149.07% 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. Clearly overvalued, PLTR is a stock that 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 6 hold ratings and 7 sell ratings.

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1...505152...67 Page 51 of 67

Alphabet Inc (GOOGL)

NVIDIA Corp (NVDA)

International Business Machines Corp (IBM)

PayPal Holdings Inc. (PYPL)

Nike Inc (NKE)

TEVA Pharmaceutical Industries LTD (TEVA)

C3.ai Inc (AI)

Meta Materials (MMAT)

Mondelez International Inc. (MDLZ)

Comcast Corp (CMCSA)

Blackstone Inc (BX)

Pembina Pipeline Corp (PBA)

Ares Capital Corp (ARCC)

Crown Castle Inc (CCI)

Signs of de-dollarization are unfolding in the global economy. Here’s what you should know.

Baidu Inc (BIDU)

HDFC Bank (HDB)

Shell PLC (SHEL)

Pool Corp (POOL)

Home Depot Inc (HD)

Nike Inc (NKE)

Gildan Activewear Inc (GIL)

J B Hunt Transport Services Inc (JBHT)

Merck & Co Inc (MRK)

SoFi Technologies (SOFI)

Bigbear.ai Holdings (BBAI)

Uber Technologies (UBER)

Affirm Holdings Inc (AFRM)

C3.ai Inc (AI)

Palantir Technologies Inc (PLTR)

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