Reports

Copper Unleashed: Exploring Three Unmissable Investment Prospects

June 7, 2023

Copper prices have reached their lowest levels in nearly a year, presenting an enticing opportunity for investors.

Copper prices suffered a nearly 6% decline in May, the worst month since June 2022, But the market is currently in a “significant deficit” phase, said Goldman analysts. China’s demand for copper remains robust and has outperformed growth concerns, while a negative shock in mine supply further tightens the market. Moreover, the long-term global demand for copper continues to grow, driven by ongoing policy support for renewable energy and electric vehicles.

Encouraged by these prospects, several Wall Street analysts have shifted towards a bullish stance on the metal, predicting a potential price surge. Citi’s projections indicate that copper could experience a remarkable increase of almost 50% by 2025, reaching $12,000 per ton in their base case scenario. In a more optimistic bull case, prices could even double to $15,000 per ton. Similarly, Goldman Sachs forecasted a 25% upside in copper prices over the next 12 months, with a target of $11,000 per ton.

While current copper prices may seem subdued, analysts and financial institutions project a promising future for this versatile metal, prompting investors to consider seizing the potential buying opportunity it presents. Here are three tickers we like for various reasons.

Teck Resources Ltd (TECK)

Copper is expected to play a vital role in the shift away from fossil fuels, given it is essential for most electricity-related infrastructure, including wind turbines and solar photovoltaic panel wiring, and to transfer electricity.

Canada’s largest diversified miner Teck Resources Ltd, recently produced its first bulk of copper concentrate from its Quebrada Blanca 2 (QB2) deposit in Chile. This project is expected to almost double the amount of copper it annually produces. At full production, Teck expects QB2 to produce 285,000 to 315,000 tonnes of copper annually between 2024 and 2026. Overall, it expects to increase its copper production to between 545,000 and 640,000 tonnes per year in the same period.

The company is in the news after Switzerland-based commodities company Glencore raised its offer to buy Teck from the initial $22.5 billion proposition Glencore made in March. TECK’s share price is up 17% in 2023 and currently has a 72% buy rating on Wall Street.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”TECK” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

Freeport-McMoRan (FCX)

Freeport-McMoRan, one of the leading copper producers worldwide, has established itself as a prominent player in the industry. Apart from copper, the company also engages in the production of gold and molybdenum, a crucial element utilized in the creation of high-strength steel alloys.

The crown jewel of Freeport’s impressive portfolio is the Grasberg mine in Indonesia, renowned as one of the largest sources of copper and gold globally. Additionally, the company operates substantial mines in Arizona and Peru. In 2022 alone, Freeport achieved a remarkable copper production of 4.2 billion pounds.

Looking ahead, Freeport possesses an extensive organic development pipeline that holds the potential to significantly increase its copper production in the coming years. By implementing initiatives to enhance leaching, a chemical process employed to extract copper from ore, and potentially adopting new leaching technology, the company aims to augment its annual production capacity by an estimated 800 million pounds in the near and medium terms. Furthermore, several expansion projects are in the pipeline, projecting substantial production capacity growth over the medium and long term.

The company’s commitment to expanding copper production is expected to yield positive results for its shareholders in the form of increased cash returns. Freeport has devised a framework aiming to allocate up to 50% of its excess cash flow towards shareholder returns, encompassing dividends and share repurchases. As the mining company’s copper production continues to grow, shareholders can anticipate enhanced cash rewards as a result of its strategic approach.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”FCX” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

Global X Copper Miners ETF (COPX)

For anyone looking to buy into the sector, there is perhaps no better way to do so than through Global X Copper Miners ETF. COPX is the first ETF option for a pure-play copper exposure in the equity space. The fund gets this exposure by tracking a market-cap-weighted index that offers broad equity exposure to the global copper mining industry. Although technically a global fund, it has strong North American exposure. The fund ranks companies according to their average daily trading volume with respect to its exchange over three months. The highest-ranked funds are included in the index. The index is rebalanced semi-annually.

Unleashing the AI Titans Part I: Three Companies Set to Reshape the Future

Editorial Staff

June 5, 2023

Along with the newly-reclaimed world’s richest person, Elon Musk, there have been crucial players in the world of AI and machine learning (ML). Many of us are likely thinking to ourselves, “Should we be more excited or more worried about it?” At the moment, there are a couple of more pressing questions:

– Can we expect to profit from it?

– How excited should we feel about said profit?

The short answers are yes and very much so, respectively. Let’s use the here and now to secure our profit now while AI only makes forward, red-hot progress. A significant portion of us already uses this revolutionary tech in many aspects of our daily lives. Wouldn’t now be a good time to hop on board?

For Part 1 of 2, I’ll look at three companies that, regardless of the market’s AI craze, are names that we’re more than likely to remember years from now. Join me here for a peek:

Micron Technology Inc (MU)

Known for its cutting-edge memory and storage tech, Micron Technology Inc. (MU) has been a crucial part of the AI and ML (machine learning) discussion(s). From data centers to self-driving cars, its high-performance products have always had something to show for their presence amidst the market competition. One “AI boost,” if you will, was its acquisition of FWDNXT in 2019. Having a good future outlook among shareholders and analysts alike, MU is up YTD by 38.72% and shows $23.06 billion in TTM (trailing twelve-month) revenue at $1.34 per share, during which it earned a net income of $1.61 billion via its 7.02% profit margin. MU has a P/S (price to sales) ratio of 2.98x, a P/B (price to book) ratio of 1.44x, and a low 25.97% D/E (debt to equity) measure. MU presently offers an annual 0.67% dividend yield with a quarterly payout of 12 cents ($0.48/yr) per share, using a 31.56% payout ratio. With a 10-day average volume of 25.21 million shares, MU has a median target of $70, with a high of $100 and a low of $45, representing almost 45% of its upside potential. Analysts say Buy and Hold.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”MU” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

Tesla Inc (TSLA)

Some maintain, even during the ChaptGPT revelation, that Mr. Musk’s TSLA remains one of the premier AI stocks available. There are certainly arguments to be made for TSLA because it’s poised to reap powerhouse profits from the AI revolution. An early player in the space, TSLA owns proprietary data sets, has domain expertise, and has an already-developed grasp of AI technology. With the world’s largest driving data pool at its disposal, TSLA‘s fusion of ML (machine learning) data and powerful AI modeling gives it rock-solid strength.

With a TTM asset growth of 31.49%, TSLA has $86.03 billion in same-period revenue at $3.45 per share, from which it profited $11.8 billion through its 13.66% net margin. With 3-5 year forecasted EPS growth at 80.7%, a PEG (price/earnings/growth) ratio of 1.31x, and an ROE (return on equity) of 28.70%. TSLA is expected to show $23.9 billion in sales at $0.77 cents per share for Q2 2023 and has a levered free cash flow of $2.45 billion with a 10-day average trading volume of 135.84 million shares. TSLA’s median price target is $187.40, with a $300 high and a $71 low. Its new range allows room for a more than 44% price jump, and analysts recommend we Buy and Hold TSLA.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”TSLA” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

Microsoft Corp (MSFT)

Since 2019, Microsoft (MSFT) has been actively invested as the name behind OpenAI, the visionary creators of ChatGPT. In January 2023, MSFT reinforced its dedication to AI-related innovations by expanding the partnership with a multiyear, multibillion-dollar investment. With a mission to democratize AI, MSFT is committed to universal accessibility. Through its Azure cloud computing platform, MSFT further empowers individuals and organizations globally to continue unlocking AI’s potential.

MSFT boasts a 0.93 beta, while it casually carries an enterprise value of just over $2.25 trillion. With a TTM revenue of $207.59 billion at $9.25 per share, MSFT made a net income of $69 billion via its 33.25% profit margin. During its latest earnings call, MSFT surprised analysts’ EPS and revenue predictions by 9.76% and 3.59%, respectively, also reporting year-over-year growth in revenue (+7.08%), net income (+9.39%), EPS (+10.36%), and net profit margin (+2.15%). MSFT currently has a 0.82% dividend yield and a quarterly payout of 68 cents ($4.76/yr) per share. With a PEG of 2.3x, $42.96 billion in free cash flow,and a 10-day average volume of 21.53 million shares, MSFT’s median price target is $340, with a high of $450 and a low of $232, allowing room for a potential price increase of over 35%. Buy and Hold MSFT.

Net Zero Carbon Stocks With Massive Return Potential

Editorial Staff

June 5, 2023

We’re always hearing about climate change, right? Well, that’s because many of us—at the risk of sounding cliche—care about the planet. Moving away from traditional fossil fuels and carbon-based energy resources is essential. The goal is to hit net zero, and it’s been a global undertaking.

Here’s the exciting part for investors: Renewable energy, once considered a niche market, is already beginning to power the world. While this energy transition is underway and many of us hug the sidelines as casual observers, we don’t have to wait to start profiting from it. Some organizations are clearly leading the way to make a net zero future come to fruition, and hey… I’ve found some!

To learn what makes these renewable energy stocks great portfolio choices, join me here:

TPI Composites Inc (TPIC)

One of the aforementioned businesses leading the way in renewable energy is TPI Composites Inc. (TPIC), which specializes in manufacturing and selling what makes up a vast portion of the world’s wind turbine blades. To provide a clearer picture of its production, in Q1 2023, TPIC made 655 blade sets, a notable increase from 547 sets in 2022. Requiring 37 manufacturing lines, TPIC’s output translates to nearly 3,000 megawatts of energy production, enough to power at least 1.2 million homes annually. The momentum is strong for TPIC, as it’s at the very bottom of its 52-week range, yet its stock is up YTD by 5.13%. TPIC’s TTM revenue is $1.58 billion, well over its $452 million market cap. It most recently beat analyst revenue forecasts by 5.60%, reporting $404.7 million vs. $382.64 expected, and TPIC’s revenue growth sits at 17.62%, expected to show another $406.5 million in sales for this quarter. With a PEG ratio of 0.76x, a P/S (price to sales) ratio of 0.26x, and a 10-day average volume of around 611,820 shares, TPIC has a median price target of $16, with a high of $22 and a low of $9, representing a more than 106% potential jump from current pricing. Given these metrics, we should Buy and Hold.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”TPIC” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

Algonquin Power & Utilities Corp (AQN)

Servicing a customer base of over one million across North America, Canada-based Algonquin Power & Utilities (AQN) offers regulated utilities and a diverse portfolio of clean energy solutions, including hydroelectric power, solar, wind, and thermal energy. Through its efforts, AQN lights the path to a greener future and has the numbers to back it up. AQN’s 0.45 beta score makes it safe from volatility, and also reassuring is the fact that during its last quarterly earnings report, it beat analysts’ EPS and revenue projections by 5.52% and 6.12%, respectively. AQN shows healthy YOY growth in essential areas such as revenue (+5.34%), net income (+196.97), EPS (+200%), and net profit margin (+180.66%). AQN presently offers an annual 5.15% dividend yield with a quarterly payout of 11 cents ($0.44/yr) per share. With an operating free cash flow of $487 million and a 10-day average volume of 3.29 million shares, AQN has a median price target of $9.22, with a high of $10.50 and a low of $7. This high-low suggests a potential price upside of 25%, and AQN, although up YTD by 29.29%, still trades near the bottom of its existing range, giving it plenty of space to do its thing. Analysts suggest that we Buy and Hold AQN.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”AQN” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

General Electric Co (GE)

Although it might be surprising to see it on this particular list, General Electric (GE) has, over time, become known for its innovations in the alternative energy arena. For instance, GE’s wind turbines have propelled the business to the forefront of wind technology, helping to drive clean energy generation on the global scale I’ve previously mentioned. GE‘s commitment extends to investing in other renewable sources like solar power and hydroelectricity. Stock-wise, GE shows plenty of muscle, showing $74 billion in TTM revenue with a $6.84 EPS, during which it’s made $7.98 billion in net income on an 11.31% profit margin. For its last earnings report, GE surprised analysts’ EPS forecasts by a whopping 97.56%, reporting $0.27 per share vs. $0.14 expected. GE shows YOY growth in revenue (+14.29%), net income (+768.74%), EPS (+721.30), net profit margin (+678.35%), and operating income (+1,542.42%). GE has a 0.32% dividend yield and a quarterly payout of 8 cents ($0.32/yr) per share. With $6.36 billion in free cash flow and a 10-day average volume of 5.03 million shares, GE has a median price target of $109, with a $121 high and a low of $90, leaving healthy room for a price increase even though it’s up 55.30% YTD. Analysts say we should Buy and Hold GE.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”GE” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

Three Global Growth Names Set to Explode

Editorial Staff

June 4, 2023

Expanding international economies, increasing productivity, and improving standards of living are the first indicators of the rise of a new global middle class. Indeed, it seems as if the world’s most dramatic economic growth over the next century will occur outside the U.S.

For market participants looking to strengthen their portfolios through diversification or create new avenues to explosive growth, international stocks can be an excellent addition. Here are three tickers that are well positioned to benefit as international economies strengthen.

Taiwan Semiconductor’s (TSM) share price has been on the rise after hitting a two-year low in October due to a sharp slowdown in global chip demand. Still down more than 35% from its January 2021 peak, anyone on the sidelines might consider now an appropriate time to strike. “Only a small number of companies can amass the capital to deliver semiconductors, which are increasingly central to people’s lives,” said Tom Russo, a partner at Gardner, Russo & Quinn.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”TSM” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

MercadoLibre (MELI) is a leading provider of e-commerce and fintech services in Latin America. The company operates an e-commerce marketplace that has a dominant presence in some of the most populous nations in the region, including Brazil and Argentina. MercadoLibre has continued to increase sales at a rapid clip despite macroeconomic headwinds, and the business’s forefront positions in online retail and fintech point to huge expansion potential as these services become more popular in Latin America.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”MELI” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

As a major player in the digital payments space, India’s largest private sector lender, HDFC Bank (HDB), 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.”

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”HDB” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

Three Stocks to Avoid Now

Editorial Staff

June 3, 2023

Seeking out great stocks to buy is important, but identifying quality investments is only half the battle. Many would say it’s just as essential for investors to know which stocks to steer clear of. A losing stock can eat away at your precious long-term returns. By taking a proactive approach to avoid losing stocks, you can set yourself up for greater success in your investing journey.

Even the best gardens need pruning and our team has spotted a few stocks that seem like prime candidates for selling or avoiding. Read on to find out why we believe these particular stocks are poor investment choices and learn how to apply our analysis to your own portfolio management strategy…

Bank of Hawaii (BOH)

With the failure of three regional banks (Silicon Valley Bank, Signature Bank, and First Republic Bank) in the past two months it seems wise to avoid struggling regional players like Bank of Hawaii. Policymakers made one thing very clear back in March: Uncle Sam will protect depositors, not shareholders. But the ugly truth is that there must be a limit to this protection. If more banks continue to fail, it could outstretch the government’s capacity to maintain this commitment. With such a steep risk involved, avoiding BOH seems like a no-brainer.

BOH gained nearly 9% last week. In the trailing one-month period, the stock tumbled nearly 23%. And since the start of this year, it printed a loss of 50% of equity value. The 6 pros covering the stock give it a Hold rating with none rating it a Buy.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”BOH” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

Abrdn Income Credit Strategies Fund (ACP)

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 20%. 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.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”ACP” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

Adeia (ADEA)

Adeia is an intellectual property licensing firm with a fairly low forward dividend yield of 1.89%. Taking into account downside risk, questionable whether the company can maintain its current rate of payout. Sell-side analysts anticipate ADEA’s earnings will fall by nearly 30% this year. If management’s plan to maximize its portfolio fails, not only could its payout get cut to ribbons. This may result in a steady decline for ADEA stock as well.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”ADEA” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

Pump Up Your Returns with These High-Flying Growth Stocks!

Editorial Staff

June 3, 2023

During these volatile and unpredictable times—while also being the case historically—the market has become a battleground where growth and value investing clash. Okay, so why growth stocks?

Value stocks have solid balance sheets and low prices, but cheap pricing doesn’t guarantee long-term worth. Also, value stocks don’t tend to have much impact on the overall market. In contrast, growth stocks show expanding revenue and have the potential to conquer the industries they’re in. Profits are reinvested into research and development, and growth stocks prioritize share price appreciation over dividends. Either way, we investors crave wealth-creating returns, and this is a way to make it happen!

Considering all market sectors, I’ve landed on three outstanding growth stocks that deserve credit for their excellent upside potential. Let’s look at these massive profit opportunities:

PayPal Holdings Inc (PYPL)

The optimism of analysts and investors surrounding fintech favorite PayPal (PYPL) has waned in recent years. Having ended its partnership with eBay, PYPL’s Vemmo platform has had to contend with Cash App and similar applications. Even tech giants such as Apple (AAPL) and Alphabet (GOOGL) have transitioned to using their own payment services. However, there is still hope for PYPL. Despite these recent challenges, PYPL saw a 55% revenue increase from $17.7 billion in 2019 to $27.5 billion in 2022. This tells us that PYPL has been growing and is poised for a comeback. The metrics impress.

With its stock down by 15.46% YTD, PYPL just hit its 52-week low, showing quite a chart dip. PYPL has TTM (trailing twelve-month) revenue of $28 billion at $2.36 per share, from which it made a $2.7 billion profit. At its MRQ (most recent quarter) earnings report, PYPL beat analysts’ EPS and revenue forecasts and showed year-over-year growth in critical areas such as revenue (+8.59%), net income (+56.19%), EPS (+43.82%), and net profit margin (+43.82%). PYPL has $3.42 billion in free cash flow and a 10-day average volume of 19.42 million shares. Analysts give PYPL a median price target of $92, with a high of $160 and a low of $58; this represents a potential 165% jump from current pricing. Buy and Hold.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”PYPL” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

ETSY Inc (ETSY)

A global leader in an exciting niche-like sector, ETSY Inc. (ETSY) brings sellers and buyers together through its online marketplace to swap vintage and handmade arts and crafts. ETSY has been popular in this area since its founding in 2005. As ETSY’s customer base expands, its marketplaces grow in value for merchants. With more shoppers, there is a greater demand for ETSY’s unique and handcrafted goods listed by sellers. As more sellers join, the selection of items increases, as does their value for buyers.

ETSY has been trading near the bottom of its 52-week range, and its stock is down by 28.59% year-to-date. However, ETSY’s Q1 2023 results exceeded Wall Street’s expectations, beating analysts’ EPS and revenue projections by 7.61% and 3.21%, respectively. Also notable is that ETSY’s active buyers increased by 1% to 89.9 million, marking the first quarterly growth in that area since Q4 2021. ETSY shows year-over-year revenue growth (+10.64%), primarily driven by transaction fees and improved “Etsy Ads” products. For the 2nd quarter, ETSY is forecasted to show $619.2 million in sales at $0.43 per share. ETSY has a median price target of $120, with a $170 high and a $46 low, representing an almost 99% leap from its current price. Analysts are warming back up to ETSY, telling us to Buy and Hold.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”ETSY” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

Constellation Energy Corp (CEG)

A grower for sure, Constellation Energy (CEG), a Baltimore-based clean energy company, has recently expressed its desire to utilize its unallocated capital for mergers and acquisitions. If the Inflation Reduction Act limits such opportunities, CEO Joe Dominguez stated that CEG’s focus would mainly be on share buybacks. CEG has already implemented a $1 billion share repurchase program and has doubled its shareholder dividend compared to last year. CEG’s stock is down slightly year-to-date but boasts a solid 0.98 beta, making it safe from volatility compared to the broader market.

For its most recent quarterly earnings call, CEG reported $7.56 billion in revenue vs. $5.73 billion predicted by analysts, making for a 32.06% surprise; during the same time, it showed year-over-year revenue growth (+35.31%). CEG, for the current quarter (Q2 2023), is forecasted to post $4.5 billion in sales at $0.74 per share. CEG has an annual dividend yield of 1.35% and a quarterly payout of 28 cents ($1.12/yr) per share. With a 10-day average trading volume of 2.4 million shares, CEG has a median price target of $96, with a high of $115 and a low of $81, representing a potential price upside of over 37%. With momentum on its side and a bright future growth outlook, bullish analysts recommend that we buy CEG.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”CEG” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

A.I. Stocks With More Than 40% Upside According to the Experts

Editorial Staff

June 2, 2023

A huge buzz has been forming around AI stocks lately alongside the viral chatbot, ChatGPT’s fervent rise in popularity. According to the latest available data, Microsoft-backed ChatGPT currently has over 100 million users. And the website now generates 1.8 billion visitors per month. This user and traffic growth was achieved in a record-breaking three-month period (from February 2023 to April 2023). Its meteoric rise has sparked much interest in artificial intelligence technology stocks, as evidenced by the recent performance of the $2.12 billion Global X Robotics & Artificial Intelligence Fund (BOTZ), which is up more than 35% YTD.

Investors have been pouring into rapidly developing AI tech names over the past few months, and this is likely just the beginning. According to Grand View Research, the global artificial intelligence market reached a valuation of $136.55 billion in 2022. It’s projected that by 2030 the industry will command a revenue of nearly $1.9 trillion.

Investors looking to profit from the paradigm shift may wonder which companies stand to gain the most as breakthrough advancements are made in the industry. Here we’ll look at three Buy rated standouts from the burgeoning AI group with average projected upsides of 40% or more.

Xometry (XMTR)

Online business-to-business marketplace Xometry uses artificial intelligence to connect businesses with industrial product manufacturers. Goldman Sachs is one of several firms that believe Xometry, which uses artificial intelligence to run its platform’s core, will continue to grow by keeping AI at the heart of its platform while it expands. “Unlike some of the recent shifts in platform investments across our coverage universe, we would highlight that XMTR has historically been built as a platform with AI/ML at the core of its competitive moat,” the firm said in a note to clients.

XMTR Shares have nearly halved this year on macroeconomic concerns, but Wall Street is optimistic about the stock going forward. The ten analysts offering 12-month price forecasts for the stock have an average price target of $24.50, representing a 42% upside from the current price.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”XMTR” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

Luminar (LAZR)

Luminar is at the forefront of lidar technology development with products that integrate sensors with AI, giving cars autonomous safety features to support a human driver. EV makers increasingly embrace LiDAR tech for self-driving vehicles, translating into solid revenue growth for Luminar.

Luminar management aims for triple-digit revenue growth every year for the next five years, and its stock has been gaining momentum. After losing more than 70% of its value in 2022, LAZR is up nearly 45% this year. The stock garners a solid “Buy” rating from the 12 analysts offering recommendations. An average price target of $12 represents a 78% upside from the current price.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”LAZR” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

FARO Technologies, Inc. (FARO)

It’s not uncommon for small tech companies to lose money for years before finding success. However, it is why investors have been hesitant about three-dimensional measurement solutions developer Faro Technologies since it boosted investment sharply in the last year, with cash burn ramping by 64%. That does raise some red flags, and there’s no solace in the operating revenue growth of 2.4% in the same time frame. Clearly, however, the crucial factor is whether the company will grow its business in the future.

FARO’s latest offering is its cloud-based information platform, Sphere. With Sphere, users can leverage artificial intelligence and machine learning to automate time-consuming and repetitive tasks. Sphere enables faster 3D data capture, processing, and project management for engineering and construction projects. We expect this technology to grow and develop along with AI and don’t see the company’s extra spending as a deterrent.

Its cash burn of $42 million is about 8.7% of its $478 million market cap. That’s a manageable proportion and shows the company is well on top of its spending. Considering the potential for advancement for this micro-cap, the pros on Wall Street are beginning to take notice. The five analysts offering recommendations for the stock say to Buy FARO, with none recommending to Sell. A median 12-month price target of $22 represents an increase of 44% from the current price.

Weekly Radar: Our Top Stock Picks for This Week

Editorial Staff

May 28, 2023

Last week started on a cautious note as sluggish debt ceiling negotiations weighed on investor sentiment. However, as the week progressed, momentum shifted with reports of progress on Capitol Hill. Results across major indices varied significantly. The NASDAQ delivered a solid total return of 2.5%, the S&P 500 saw a modest gain of 0.3%, while the Dow slipped by 1.0%.

As we enter the upcoming holiday-shortened week, the market may face challenges due to lingering rate hike concerns and uncertainty surrounding the debt ceiling as the earnings season continues to wind down. Notable companies scheduled to report this week include Salesforce, HP, Broadcom, Dollar General, Lululemon Athletica, Macy’s, and Dell Technologies. Additionally, the labor market will be in the spotlight, with the release of the JOLTS report for April, ADP’s National Employment Report tracking private sector payrolls, and the Labor Department’s nonfarm payrolls report for May.

Congratulations to our readers who traded alongside us last week and seized the opportunity to invest in NVDA shares ahead of its earnings call on Wednesday. Those who participated in this move witnessed an impressive 24% surge in their investment following the release.

Continue to the full article latest edition of our Weekly Radar, featuring three timely stocks to consider in the coming days. Stay ahead of the game and gain a competitive edge by accessing our latest watchlist here. Don’t miss out on this valuable opportunity!

Exciting investment opportunities sometimes lie in plain sight. Our first recommendation is one of the most undervalued technology names from the S&P 500.

ON Semiconductor Corp (ON)

Semiconductor giant Onsemi is firing on all cylinders with a large market footprint in exciting growth sectors like automotive computing. ON share price is up nearly 300% in the three years since the summer of 2020 and revenue has grown 28.3% over the past twelve months. The U.S. based chipmaker has been solidifying its reputation as a top player among its auto/industrial peers. However, several factors exist that support the case that there’s plenty of runway left for this bet on an electric future.

Following ON’s stellar performance of the past few years, the stock still looks undervalued at just 13.8x earnings and 15.74x 12-months forward earnings. In fact, it’s currently one of the cheapest tech names in the S&P 500.

Onsemi recently initiated a $3 billion share repurchase plan at its final 2022 financial update. The new shareholder return policy is good through 2025. Management is targeting about 50% of free cash flow generated to be returned to stockholders each year. If the company uses up all $3 billion in authorized buybacks through 2025, that would equate to nearly 10% of the current market cap or roughly 3% a year in cash returns to shareholders over the next three-year stretch. Not too shabby.

Bank of America sees ON as a top-3 global/top US vendor of smart power and sensing chips for EVs and they’re alone. Onsemi holds a highly attractive 1.37 (overweight) rating from the Wall Street pros who cover it.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”ON” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

Amazon.com (AMZN)

Amazon.com stock is still down by a whopping 40% from its all-time high of $186, reached in mid-2021. But its long-term thesis remains sound, and cost-cutting efforts can help position the company to bounce back when conditions improve.

In March, Amazon announced plans to cut 9,000 white-collar employees, mainly from the cloud, advertising, and HR units. The cuts follow an earlier round of layoffs that eliminated more than 18,000 positions. Cost-cutting can create sustainable value for investors because Amazon’s macroeconomic challenges (such as inflation) look temporary.

A potential long-term growth driver is Amazon’s new initiative called project Kuiper. The company plans to launch a fleet of Low Earth Orbit satellites designed to provide affordable broadband connections around the world starting in 2024. All in all, there is a lot to be excited about Amazon, and the current stock price weakness looks like an opportunity to buy the dip.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”AMZN” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

LPL Financial Holdings (LPLA)

San Diego-based independent investment advisory LPL Financial generates revenue through a small percentage of the fees and commissions of the 21,000 financial advisors using its technology. In other words, it makes a little from a lot of advisors. LPL allocates client cash to third party banks which pay a fixed or variable rate on the deposits. In a higher stress environment LPL may actually benefit because the deposits the company it provides to banks will be in greater demand.

Due to the larger mix of smaller accounts LPL is less susceptible to cash sorting – where account owners move funds from low-yielding cash accounts to higher-yielding options. Cash sorting may put a dent in revenue for some firms, which benefitted last year from a surge in net interest income. In the first quarter LPL added $21 billion in net new assets, an annualized organic growth rate of 7.5%. Additionally, it recently made two strategic acquisitions for around $150 million, providing a sizeable boost to the number of advisors using its products and services. As of March 31, 2023, LPL Financial’s total brokerage and advisory assets were $1,175.2 billion. Could this lead to higher earnings in the second quarter? The pros on Wall Street seem to think so. The current consensus among 15 polled analysts is to Buy LPLA, with no sell recommendations in the group. A median price target of $242.50 leaves room for a 27% upside.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”LPLA” start_expanded=”true” display_currency_symbol=”true” api=”yf”]

Three Stocks to Avoid Now

Editorial Staff

May 25, 2023

Seeking out great stocks to buy is important, but identifying quality investments is only half the battle. Many would say it’s just as essential for investors to know which stocks to steer clear of. A losing stock can eat away at your precious long-term returns. By taking a proactive approach to avoiding losing stocks, you can set yourself up for greater success in your investing journey.

Chesapeake Energy (CHK)

Chesapeake Energy was a solid name to have held in 2022. Like many energy stocks, it had a strong year due to booming energy prices. The company deals primarily in natural gas, which soared last year. As a result CHK stock increased from $66 to $94 in 2022. Of course, 2023 is an entirely different story. The stock has since declined to around $79 per share.

The company provided guidance indicating that 2023 production volume will likely be lower than 2022. And the U.S. Energy Information Administration has forecast lower prices throughout 2023. The company’s forecasted production volume, as well as expected energy prices, are not in Chesapeake’s favor. The company won’t produce 2022-level revenues in 2023, which is a simple reason to avoid CHK stock now.

[stock_market_widget type=”accordion” template=”chart” color=”#5679FF” assets=”CHK” start_expanded=”true” display_currency_symbol=”true” api=”yf” chart_range=”1y” chart_interval=”1d”]

Summit Materials (SUM)

Summit Materials has struggled to show consistent growth since its 2015 initial public offering. Over the last eight years, the vast majority of the company’s growth has come from acquisitions, with only 2.9% of its growth coming from organic revenue expansion. Between 2015 and 2022, the company spent more than $1 billion buying other construction material companies, taking on debt to do so. This strategy has weighed on Summit Materials’ balance sheet and share price.

Unfortunately, construction materials isn’t a great business to be in, especially with your average U.S. 30 year mortgage rate now above 6.4% in a cooling market. Investors would be smart to steer clear of this homebuilder stock.

[stock_market_widget type=”accordion” template=”chart” color=”#5679FF” assets=”SUM” start_expanded=”true” display_currency_symbol=”true” api=”yf” chart_range=”1y” chart_interval=”1d”]

Adeia (ADEA)

Adeia is an intellectual property licensing firm with a fairly low forward dividend yield of 1.89%. Taking into account downside risk, questionable whether the company can maintain its current rate of payout. Sell-side analysts anticipate ADEA’s earnings will fall by nearly 30% this year. If management’s plan to maximze its portfolio fails, not only could its payout get cut to ribbons. This may result in a steady decline for ADEA stock as well.

[stock_market_widget type=”accordion” template=”chart” color=”#5679FF” assets=”ADEA” start_expanded=”true” display_currency_symbol=”true” api=”yf” chart_range=”1y” chart_interval=”1d”]

Small Modular Reactors – The Future of Energy & The One Company Paving the Way

Editorial Staff

May 25, 2023

The Future of Energy: Small Modular Reactors

As we move into the future, the need for sustainable, efficient, and reliable energy sources is more pressing than ever. One solution that has been gaining traction is the use of Small Modular Reactors (SMRs). SMRs are a type of nuclear power plant that are smaller in size (300 MWe or less) than traditional reactors. They are manufactured at a plant and brought to a site to be assembled, offering significant cost savings and increased flexibility.

SMRs have several advantages that make them a promising energy source for the future. They are designed to be safer than traditional nuclear reactors, with features such as passive safety systems that require no active interventions in case of an accident. Their small size and modularity mean they can be used in locations not suitable for larger reactors. They also have the potential for lower initial capital investment and shorter construction times compared to traditional nuclear power plants.

Moreover, SMRs can play a crucial role in combating climate change. They produce zero carbon emissions, making them a clean energy source. They can also be used to replace aging fossil fuel plants, contributing to a reduction in global greenhouse gas emissions.

NuScale Power: A Leader in SMR Technology

NuScale Power, a company specializing in SMR technology, is well-positioned to capitalize on this growing trend. The company’s innovative design has already received approval from the U.S. Nuclear Regulatory Commission, making it the first SMR design to achieve this milestone in the U.S.

Fundamental Analysis

NuScale Power has shown strong fundamentals. The company has a robust business model, with a significant market opportunity in the SMR sector. The global SMR market is expected to reach $11.3 billion by 2026, growing at a CAGR of 14.5% from 2021. NuScale’s unique and approved design places it in a strong position to capture a significant share of this market.

The company has also secured partnerships with key industry players and has a strong order book, providing revenue visibility. However, investors should be aware that the company’s profitability is currently impacted by high research and development costs, a common characteristic of companies in the technology development stage.

Technical Analysis

Looking at the technical analysis, NuScale Power’s stock has shown a strong uptrend over the past year. The stock’s 50-day moving average is above its 200-day moving average, a bullish signal. However, the stock is currently trading near its resistance level, and a break above this level could signal further upside.

The Relative Strength Index (RSI), a momentum indicator, is currently at around 60, indicating that the stock is neither overbought nor oversold. Investors might want to watch for any significant changes in volume, as an increase in volume could indicate strong investor interest and potentially drive the stock price higher.

Conclusion

In conclusion, SMRs represent a promising future energy source, and NuScale Power, as a leader in this technology, presents an interesting investment opportunity. However, as with any investment, potential investors should carefully consider their risk tolerance and investment objectives before investing.

1...525354...67 Page 53 of 67

Copper prices have reached their lowest levels in nearly a year, presenting an enticing opportunity for investors.

Teck Resources Ltd (TECK)

Freeport-McMoRan (FCX)

Global X Copper Miners ETF (COPX)

Micron Technology Inc (MU)

Tesla Inc (TSLA)

Microsoft Corp (MSFT)

TPI Composites Inc (TPIC)

Algonquin Power & Utilities Corp (AQN)

General Electric Co (GE)

Bank of Hawaii (BOH)

Abrdn Income Credit Strategies Fund (ACP)

Adeia (ADEA)

PayPal Holdings Inc (PYPL)

ETSY Inc (ETSY)

Constellation Energy Corp (CEG)

Xometry (XMTR)

Luminar (LAZR)

FARO Technologies, Inc. (FARO)

ON Semiconductor Corp (ON)

Amazon.com (AMZN)

LPL Financial Holdings (LPLA)

Chesapeake Energy (CHK)

Summit Materials (SUM)

Adeia (ADEA)

The Future of Energy: Small Modular Reactors

NuScale Power: A Leader in SMR Technology

Fundamental Analysis

Technical Analysis

Conclusion

Popular Posts

My Favorites