Facebook Instagram Twitter Youtube
    Latest

    Stock Watch Lists

    Bear Watch Weekly: Stocks to Sideline Now

    By
    Editorial Staff
    -
    0

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

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

    They’re pure portfolio poison.

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

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

    I’m going to run down the list and give you 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…

    Ameren Corporation (NYSE: AEE)

    Ameren Corporation, a staple in the American energy sector known for its robust 3.8% dividend yield. However, recent developments suggest caution. Over the past year, Ameren’s stock has declined by 12%, a drop that may not just be a temporary dip but a reflection of deeper challenges.

    A critical issue for Ameren is its ongoing reliance on coal power plants. While the company is taking commendable steps to phase out its largest and most polluting coal plants, this transition requires significant capital investment. Such investments are expected to strain financial performance in the near term, potentially stifling stock growth.

    Recent quarters have already shown a decline in revenues and net income, signaling possible trouble ahead. This financial downturn could prompt a selloff, driving the stock price even lower. Given these factors, it seems prudent to place Ameren on the sell list until it stabilizes, after which it might again become a viable option for environmentally and financially forward-looking portfolios.

    CrowdStrike Holdings (NASDAQ: CRWD)

    CrowdStrike Holdings stands out as a top-tier player in the cybersecurity sector, known for its robust cloud-delivered security solutions. Yet, despite its strong fundamentals, caution is warranted with CRWD stock at this juncture.

    Over the past year, CRWD has seen an impressive 100% surge in its stock price, pushing its valuations into potentially precarious territory. Currently, the stock is trading at a forward P/E ratio of 80.7. Such a high valuation suggests there might be substantial downside risk, making it prudent to hold off on new investments until the price becomes more reasonable.

    While CrowdStrike’s financial health remains solid—evidenced by a forecasted EPS growth of 25% next year and a free cash flow of over $1 billion—the stock’s high price-earnings-to-growth ratio (over 3) indicates that the growth potential could already be well-reflected in the current stock price.

    Investors might consider waiting for a more attractive entry point before increasing their stakes in CRWD, as the current market price leaves little room for error. This strategic patience could pay off, especially in a market that rewards prudent valuation assessments.

    Altair Engineering (NASDAQ: ALTR)

    Altair Engineering is a company at the forefront of software and cloud solutions in simulation, design, and data analytics. Despite its solid position in an attractive sector, there are concerns that now may be a prudent time to be cautious with ALTR stock.

    Currently, Altair’s stock trades near its 52-week highs, supported by a forward P/E ratio of 71. This valuation could be considered stretched, especially given the company’s recent performance and future revenue growth projections. In Q1 2024, Altair reported a modest year-on-year revenue growth of 4.1% to $172.9 million and has set full-year revenue growth targets of only 6.4% to 8%.

    While the company boasts robust free cash flow, which reached $70.7 million in the first quarter, and anticipates an annualized FCF of nearly $300 million, this financial health might not fully justify the high valuation at current stock prices. Given these factors, a 20% to 30% correction in ALTR stock could be on the horizon, making it a candidate for our avoid list until the valuation aligns more closely with growth expectations.

    Insiders Are Dumping Shares of These Names, Should You?

    By
    Editorial Staff
    -
    0

    General Motors CEO Mary Barra and Salesforce CEO Marc Benioff both sold millions of dollars worth of their own stock in the waning days of May, according to securities filings and information compiled by VerityData. Barra sold more than $27 million worth of stock on May 28, joining several other GM insiders who have done similar trades this year. Meanwhile, Benioff sold more than $12 million worth of shares over the course of several days.

    Both execs made the sale as part of 10b5-1 trading plans. Those plans are filed with regulators ahead of time to set out when an executive will trade shares in the coming months and years.

    Benioff’s sales in this data summary from Verity took place on May 24, 28, and 29. The Salesforce CEO had been selling stock consistently over recent periods, and subsequent filings showed that he made another sale on May 30. Salesforce released its first-quarter report after the market closed on May 29. The stock fell more than 19% the following day.

    Insider buying and selling is tracked closely by many professional fund managers. The idea is that these trades could possibly be a signal about what an exec or board member thinks of the direction of the company or the valuation of the stock.

    Here are the biggest insider sales in the final days of May, according to VerityData and securities filings:

    • General Motors: CEO Barra sold 626,300 shares at an average price of $43.46 for a total of $27.22 million.
    • Salesforce: CEO Benioff sold 45,000 shares at an average price of $270.70 for a total of $12.18 million.
    • Squarespace: CEO Anthony Casalena sold 135,100 shares at an average price of $43.50 for a total of $5.88 million.
    • Applied Materials: CFO Brice Hill sold 20,000 shares at an average price of $222.34 for a total of $4.45 million.
    • Texas Roadhouse: CEO Gerald Morgan sold 15,000 shares at an average price of $171.70 for a total of $2.58 million.

     Three Surprising Growth Stocks Set to Surge

    By
    Editorial Staff
    -
    0

    Recent market turbulence has prompted many investors to reconsider their strategies, especially when it comes to growth stocks. Although growth stocks are generally more expensive and don’t pay dividends like value stocks, they still offer significant opportunities for those who choose wisely.

    In the current environment, it’s crucial to focus on quality within the growth sector. Look for companies that are not only growing rapidly but are also doing so with strong fundamentals. These include substantial free cash flow, low levels of debt, consistent earnings, a solid balance sheet, and a business model that can sustain over the next decade.

    Valuation should be a key consideration in any investment decision. It’s important to understand the true value of a stock, avoiding investments based purely on fear of missing out or an appealing narrative without substance. Instead, prioritize stocks that demonstrate actual revenue and earnings growth.

    Here are three stocks that I believe are positioned well and worth considering:

    PayPal Holdings (PYPL) 

    Despite being down significantly from its peak in 2021, PayPal appears undervalued, especially within the fintech and digital wallets sector. The stock has dipped by about 3% over the last year, which might be an attractive entry point. The company has recently adjusted its profit expectations for 2024 from flat to a mid-to-high single-digit percentage growth, indicating a positive trajectory. Its investment in Venmo debit and credit cards plays a critical role in its overall growth strategy, helping to solidify its user base.

    SS&C Technologies Holdings Inc:(SSNC)

    As a major player in the software-as-a-service (SaaS) industry, SS&C Technologies benefits from having a significant market share in a somewhat duopolistic field. The company controls a vast amount of valuable data, which is essential both from an investment security and a user engagement perspective. Looking forward, its role as a major data provider is likely to be increasingly important. The stock has gained about 14% over the past year, and analysts are optimistic about its future, suggesting potential for further gains.

    Moody’s Corp  (MCO) 

    Known for its comprehensive data capabilities and increasing use of artificial intelligence to enhance data utilization, Moody’s has shown strong performance. The company recently exceeded Wall Street’s profit estimates, spurred by high demand for its offerings. Over the past year, the stock has increased by roughly 30%. Although the upside potential according to analysts is modest, the stability and steady growth make it an appealing choice for investors seeking reliable returns.

    These stocks represent well-rounded choices for those looking to diversify their portfolio with growth stocks that not only promise but also deliver growth backed by robust fundamentals.

    Strategic Science: Biotech Stocks with Promising Prospects

    By
    Editorial Staff
    -
    0

    Navigating the biotech sector requires a tolerance for risk, as the outcome of clinical trials and FDA approvals can dramatically swing stock prices. Yet, for those who are game, the rewards can be substantial, making biotech stocks an exciting prospect for the daring investor.

    This month, we’ve honed in on three biotech companies poised for significant movements. Each has made promising progress in developing innovative treatments that could transform medical practice and patient care. These companies stand out not only for their scientific breakthroughs but also for their strategic positioning in the market, which could lead to substantial gains.

    Read on as we explore these firms’ latest advancements, examining the potential impacts of their upcoming products and what these developments could mean for investors. Whether you’re a seasoned biotech investor or considering your first foray into this high-stakes field, our watchlist offers a valuable snapshot of where to look next in the biotech sector.

    Iovance Biotherapeutics (NASDAQ: IOVA) – A Leader in TIL Therapy with Promising Horizons

    Iovance Biotherapeutics stands out in the biotech arena, particularly for its innovative approach to cancer treatment through tumor-infiltrating lymphocyte (TIL) therapy. This technique capitalizes on the body’s natural defenses by enhancing white blood cells that combat cancer. Iovance’s process involves extracting these cells, amplifying their number outside the body, and reintroducing them to effectively fight cancerous cells.

    The company achieved a significant milestone earlier this year with the FDA approval of Amtagvi, a targeted treatment for melanoma affecting a niche patient group. This approval not only bolsters the company’s credibility but also paves the way for future therapies that could benefit from similar regulatory green lights.

    Besides Amtagvi, Iovance continues to generate revenue from Proleukin, another of its market-ready therapies. Although still on the path to profitability, the potential revenue streams from these innovative treatments present a compelling case for investors. Buying into Iovance now could be a strategic move for those looking to invest in a company with promising future gains, driven by groundbreaking treatments and a solid development pipeline.

    Exelixis, Inc. (NASDAQ: EXEL) – A Profitable Biotech with Strong Partnerships

    Exelixis, Inc. is a standout in the biotech sector, particularly for its financial robustness and successful portfolio of cancer treatments. Unlike many biotech companies that struggle to reach profitability, Exelixis has been consistently profitable for the past six years, a testament to its effective management and compelling product offerings.

    The company’s flagship product, Cabometyx, has been a key driver of its success. Developed in partnership with Bristol Myers Squibb, Cabometyx treats renal cell carcinoma (RCC) and hepatocellular carcinoma (HC), two prevalent forms of kidney and liver cancer. This partnership not only boosts Exelixis’s credibility but also enhances its market reach and financial stability.

    Exelixis’s strong financial position enables ongoing investment in research and development, broadening its pipeline and potentially leading to new breakthroughs. For investors looking to tap into the biotech sector while mitigating risk, Exelixis offers a compelling blend of profitability, proven market presence, and strategic growth opportunities. This combination makes Exelixis a safer bet in a field known for its high volatility.

    Recursion Pharmaceuticals (NASDAQ: RXRX) – Pioneering AI-Driven Drug Development

    Recursion Pharmaceuticals distinguishes itself within the biotech landscape not only through its drug development but also through its innovative integration of technology. At the heart of its operations is the Recursion Operating System, a platform that leverages advanced data analytics and artificial intelligence to streamline the drug discovery and development process.

    This technology-centric approach allows Recursion to accelerate the production and testing of therapies, reducing costs and enhancing efficiency—key advantages in the competitive biotech field. Additionally, the company capitalizes on its technological prowess by selling its software, providing a diversified revenue stream alongside its pharmaceutical ventures.

    Currently, Recursion is making significant strides with REC-4881, a promising candidate in Phase 2 trials for treating Familial Adenomatous Polyposis and cancer, with the trial set to conclude in 2027. While still navigating its path to profitability, Recursion’s innovative model and revenue growth from its software sales position it uniquely for potential explosive growth, especially if its clinical trials yield positive outcomes and its software continues to gain traction in mainstream drug development. For investors open to embracing a tech-forward approach in biotech, Recursion offers an intriguing opportunity.

    Uranium Stocks Poised for a Green Surge

    By
    Editorial Staff
    -
    0

    As global energy markets shift towards greener alternatives, uranium has emerged as a pivotal element in the nuclear power resurgence. The recent U.S. Congressional ban on Russian uranium imports, unlocking about $2.7 billion to expand domestic nuclear fuel production, significantly catalyzes this trend. Further buoyed by MarketWatch.com’s report that this ban could push uranium prices back above $100 per pound, the sector is seeing a tightening supply that could propel market values higher.

    Moreover, the support for nuclear power is expanding globally, evidenced by the commitments made at the 28th United Nations Climate Change Conference (COP28), where multiple nations signed a declaration to triple nuclear energy by 2050. This is in response to growing demand, which, according to NexGen Energy, is expected to jump 127% by 2030 and potentially create a 240-million-pound deficit by 2040. Tim Gitzel, CEO of Cameco, highlighted these dynamics stating, “Market tightness caused by supply chain challenges, ongoing mine depletion, declining secondary supplies, and a decade of underinvestment amid low market prices likely will persist well into the next decade,” as reported by Seeking Alpha.

    Denison Mines (NYSEAMERICAN: DNN) – A Solid Bet in Uranium’s Bull Market

    Denison Mines has been charting a strong course in the uranium sector, marked by a significant uptrend since June 2023. The company has consistently maintained robust positions at its 50- and 200-day moving averages, recently rebounding from a pullback to about $2.02, and now trading at $2.10 with the potential to test $3 in the near term. David Cates, President and CEO of Denison, remarked on the favorable market conditions, “Denison’s portfolio of uranium reserves, resources, and physical holdings has greatly appreciated in value through late 2023 and into early 2024, as positive sentiment in the uranium and nuclear energy markets has sustained and uranium prices have rapidly increased.” He further noted the strategic advantage of their uncommitted uranium production and holdings at a time of expected market scarcity, positioning Denison Mines favorably for future gains.

    NexGen Energy (NYSE: NXE) – Developing the Future’s Largest Low-Cost Uranium Mine

    NexGen Energy is a notable player in the uranium market, focusing on developing the Rook I Project, slated to become the world’s largest low-cost uranium mine. After a dip to $7, the stock found strong support and is pivoting higher, currently at $7.61 with an eye towards retesting its previous high of $8.88 and advancing towards $10. The project, now in the final stages of permitting, could soon move to construction, backed by approximately $930 million in cash and liquid assets. The company’s CEO emphasized the strategic importance of the Rook I project in the growing nuclear energy sector, positioning NexGen Energy at the forefront of addressing the burgeoning global demand for uranium.

    Uranium Royalty (NASDAQ: UROY) – A Unique Investment in Uranium Streaming

    Uranium Royalty stands out as the world’s only uranium-focused royalty and streaming company, offering investors a unique way to participate in the uranium market without the direct operational risks. Despite recent fluctuations, with the stock dropping to $2.20 and now recovering to $2.65, the outlook remains positive. Analysts at H.C. Wainwright have reiterated a buy rating with a target of $7.70, citing the company’s strategic acquisitions and trading activities that provide strong positioning within the industry. As the uranium supply tightens and prices continue to rise, Uranium Royalty is well-placed to capitalize on these trends and deliver substantial returns to its stakeholders.

    These three companies represent strategic entry points into the uranium market, each positioned to benefit from the escalating global shift towards nuclear energy and the ensuing market dynamics. As demand surges and supply tightens, investing in these stocks could offer substantial returns amidst the growing green energy movement.

    Three Hydrogen Stocks to Buy Now

    By
    Editorial Staff
    -
    0

    Hydrogen – that volatile gas that, when mishandled, can cause quite a disaster. But, let’s not forget, it’s also pegged as a clean, carbon-free fuel source that’s expected to play a crucial role in our energy future. Investing in hydrogen stocks? Well, that’s been a bit like handling the gas itself – risky, with potential for explosive gains (figuratively speaking, of course).

    The past couple of years haven’t been kind to some of the leading hydrogen companies, with share prices taking a nosedive. It’s enough to make anyone think twice about diving into this sector. However, for those willing to navigate the risks, the rewards could be substantial. Here are three hydrogen investments that stand out in this challenging yet promising landscape.

    1. Global X Hydrogen ETF (NASDAQ:HYDR)

    Diving headfirst into individual hydrogen stocks might not be everyone’s cup of tea, especially given the industry’s nascent stage. That’s where the Global X Hydrogen ETF comes into play. This ETF offers a diversified portfolio of 26 companies involved in the hydrogen space, mixing high-risk pureplay names with established industrial giants. It’s a smart way to spread your bets across the board.

    With HYDR shares currently down 55% over the past year and a staggering 75% since its launch, it might seem like a tough sell. But, for those looking at the bigger picture, this dip could represent a golden opportunity. As the hydrogen market rebounds, HYDR is well-positioned to capture the upswing.

    2. Air Products & Chemicals (NYSE:APD)

    Air Products & Chemicals isn’t just another player in the hydrogen game; it’s a seasoned veteran with over sixty years in the business. With operations in more than 20 countries and a vast hydrogen plant network, APD is a global leader in hydrogen production and distribution.

    Recent earnings may have disappointed, sending APD stock to 52-week lows, but the company’s outlook for 2024 remains strong. Beyond its hydrogen operations, APD boasts a diversified gas business that continues to be profitable, not to mention a solid 3.1% dividend yield. For those looking to invest in a company with a proven track record in hydrogen, APD presents a compelling opportunity.

    3. Linde (NASDAQ:LIN)

    Linde, hailing from the U.K., is another industrial gas giant with a foot firmly planted in the hydrogen sector. Unlike APD, Linde’s stock has been on an upward trajectory, reaching new highs thanks to solid earnings. While it might not be the bargain buy of the moment, Linde’s premium is justified by its ambitious hydrogen projects and turnkey gas plant solutions.

    As Linde expands its hydrogen production capabilities, like the recent plant expansion in Alabama, it’s setting itself up to profit from the broader adoption of hydrogen as a fuel. Investing in LIN stock offers a lower-risk avenue to tap into the hydrogen market’s growth potential.

    Wrapping Up

    Hydrogen’s role in our energy future is becoming increasingly clear, and despite the sector’s volatility, there are strategic ways to invest in this clean fuel source. Whether you’re looking for diversified exposure through an ETF, a veteran player with a solid dividend, or a company expanding its hydrogen footprint, there’s an option out there for you.

    Standout Small-Cap Stocks for June

    By
    Editorial Staff
    -
    0

    As the investment landscape shifts, small-cap stocks are starting to capture the spotlight, potentially marking the beginning of a significant market trend. While large-cap stocks, particularly in technology, have dominated headlines and market movements, small-cap stocks are showing signs of strong performance. This trend suggests that smaller companies could be poised for substantial growth as market dynamics continue to evolve and diversify.

    Boston Beer (NYSE: SAM) – Brewing Up Growth

    Boston Beer has experienced a notable decline this year, with shares down nearly 23%, presenting what appears to be a ripe opportunity for investors. Despite this recent dip, the company is poised for a rebound, supported by improving margins as supply chain costs decrease and production efficiency increases. Notably, its brands like Truly and Twisted Tea are showing strong performance dynamics. Truly has stabilized, removing a significant overhang on the stock’s valuation, while Twisted Tea continues to experience double-digit growth. Jefferies has set a price target of $360 on Boston Beer, suggesting an impressive potential upside of nearly 35% from current levels.

    Schrodinger (NASDAQ: SDGR) – Innovating at the Intersection of Tech and Pharma

    Schrodinger’s shares are currently down 39% for the year, but the outlook is far from bleak. The company’s growing software segment, which has consistently exceeded guidance, is bolstering its position in the market. Schrodinger’s involvement in R&D, particularly in AI and machine learning, alongside its notable collaborations with pharmaceutical companies, positions it uniquely in the tech space. Its specialized physics-based platform is attracting significant contracts, which should support sustained growth. With a price target of $40 set by Jefferies, there’s potential for nearly 77% growth, driven by its innovative approach and strong industry relationships.

    ArcBest (NASDAQ: ARCB) – Geared for a Freight Market Rebound

    ArcBest, another promising small-cap stock, has seen a decrease of 11% in its value this year. However, it stands out in the logistics and transportation sector with significant potential for earnings growth and cash flow generation. Positioned at the lower end of its 10-year price range, ArcBest is expected to benefit greatly from an upturn in the freight market. With the broader industry poised for recovery, ArcBest’s asset-light business model is likely to facilitate faster earnings growth relative to its peers. Jefferies’ price target of $140 indicates a potential rise of nearly 32%, making it an attractive option for investors eyeing recovery and growth in the transportation sector.

    These three stocks, each from different industries, offer unique opportunities for investors looking to diversify their portfolios with small-cap stocks that exhibit potential for significant growth and resilience in the current market environment. As these companies navigate their respective challenges and capitalize on industry trends, they represent promising additions to any investment strategy focused on dynamic growth and sector diversity.

    Bear Watch Weekly: Stocks to Sideline Now

    By
    Editorial Staff
    -
    0

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

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

    They’re pure portfolio poison.

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

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

    I’m going to run down the list and give you 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…

    Adobe (ADBE) – Facing Intense AI Competition

    Adobe’s stock has been under significant pressure, dropping nearly 20% this year following the debut of privately held OpenAI’s latest offering, Sora, a new AI platform capable of generating videos from written descriptions. This new technology directly challenges Adobe’s stronghold in creative software products, stirring concerns about the company’s future in an AI-dominated landscape.

    While Adobe did manage to exceed Wall Street’s earnings expectations recently, its forward guidance was less optimistic. For the current second quarter, Adobe projected earnings between $4.35 to $4.40 per share and revenue forecasts ranging from $5.25 billion to $5.30 billion—figures that fell short of analyst expectations of $4.38 per share and $5.31 billion in revenue. This resulted in a sharp 12% drop in ADBE stock in just one trading session.

    In response to these challenges, Adobe is not sitting back. The company has integrated AI into its products where feasible, recently introducing an AI assistant for its Reader and Acrobat applications. Furthermore, in what might be seen as a strategic pivot or a defensive move, Adobe is reportedly considering a partnership with OpenAI to incorporate Sora’s technology into its offerings. Whether this potential collaboration will be enough to fend off the rising competition and reassure investors remains a critical question for those holding or considering Adobe stock.

    Mullen Automotive (MULN) – Financial Turbulence Continues

    Mullen Automotive has been navigating through tough waters, marked by significant financial struggles and operational challenges. In 2023, MULN reported a staggering net loss of $308.9 million for the quarter ending June 30, a substantial increase from a loss of $7.1 million in the same period the previous year. The total losses for the nine months up to June 30 reached $792.7 million, primarily driven by high non-cash expenses and extensive investments in ramping up operations.

    Looking ahead, Mullen has ambitious plans to expand its product line and scale up production, targeting the delivery of various new vehicle classes. Despite these plans, the financial viability of these initiatives is in jeopardy due to the company’s current financial position. With only about $88 million in cash against a burn rate of over $226 million, the necessity to raise additional capital is evident. This financial pressure is further highlighted by an alarming increase in outstanding shares, which have risen by 6,527.73% over the last year as part of efforts to avoid delisting.

    Investors should approach Mullen Automotive with caution. The company’s ongoing financial difficulties, coupled with its aggressive capital-raising tactics, paint a picture of a high-risk venture. MULN’s ability to stabilize its operations and achieve profitability remains highly uncertain, positioning it as a prime candidate for this week’s stocks to avoid or sell watchlist.

    Netflix (NFLX) – Shifting Focus Away from Subscriber Metrics

    Netflix’s decision to stop reporting its quarterly membership numbers and average revenue per membership has left investors and analysts wary, leading to a 10% drop in the stock following the announcement. The streaming giant, once known for its transparency in subscriber metrics, is shifting focus towards revenue, operating margins, and free cash flow. This change has raised concerns about the underlying reasons, particularly fears that subscriber growth may be stalling.

    Analysts have voiced concerns that the cessation of subscriber reporting could be a red flag, suggesting potential challenges in Netflix’s ability to maintain its growth momentum, especially when compared to rivals like Walt Disney Co. (DIS). This strategic pivot from subscriber numbers, traditionally a key metric for gauging the company’s market dominance and growth trajectory, has overshadowed what was otherwise a strong first-quarter performance from Netflix.

    Despite a year-to-date increase of about 30% in NFLX stock, the uncertainty around subscriber trends could pose risks to its valuation, especially if the market perceives the change as a signal of decelerating growth. Given these dynamics, Netflix appears as a tech stock to consider selling before potential market corrections intensify these concerns.

    Black Gold: Navigating Through Volatility with Prime Oil Stocks

    By
    Editorial Staff
    -
    0

    Amidst escalating geopolitical tensions and unrelenting inflation, oil stocks are garnering renewed attention. Recent fluctuations in crude oil prices, spurred by global events, underscore the sector’s susceptibility to external pressures but also highlight potential investment opportunities.

    Stephen Ellis of Morningstar advises that the inherent volatility of the oil market can offer unique opportunities for patient investors. According to Ellis, moments when oil prices plummet or the market sentiment is bearish are often the best times to secure high-value investments at a lower cost. He notes that there are still “selective bargains” to be found, even as many oil stocks now approach all-time highs after rebounding from previous lows.

    Meanwhile, the international scene remains tense, with conflicts such as the ongoing situation in Ukraine and past military actions in the Middle East affecting global oil supply chains. These conflicts can lead to sudden disruptions and swings in oil prices, impacting the profitability and stock values of companies in the energy sector.

    This watchlist focuses on oil stocks that are poised to navigate these turbulent waters. Whether you’re an experienced energy sector investor or considering diversifying your portfolio, the current landscape offers both challenges and opportunities worth exploring.

    Exxon Mobil (NYSE:XOM) – Positioned for Potential Upside

    Exxon Mobil, an integrated behemoth in the oil and gas sector, has shown significant growth this year, with its stock price appreciating over 18% since January. The company’s operations span across various segments of the hydrocarbon value chain, including Upstream, Energy Products, Chemical Products, and Specialty Products, ensuring a diversified revenue stream.

    While Exxon Mobil’s financial performance has been somewhat uneven, it still managed an average positive earnings surprise of 3.45% in fiscal 2023. Despite missing its bottom-line targets in the second and third quarters, the broader perspective suggests resilience. For the current fiscal year, analysts are setting their expectations for earnings at $9.33 per share on revenues of $335.45 billion, which slightly lags behind last year’s figures of $9.52 EPS and $344.58 billion in sales.

    However, the more optimistic projections suggest a possible earnings rise to $11.08 per share with revenue potentially soaring to $384.24 billion. In light of the company’s strategic positioning and its ability to navigate market shifts, these high-side targets appear increasingly feasible. Consequently, Exxon Mobil stands out as a promising candidate for those considering investments in the oil sector, especially given the current market conditions.

    ConocoPhillips (NYSE:COP) – A Solid Bet Amidst Market Fluctuations

    Houston-based ConocoPhillips, a leader in the upstream segment of the oil industry, has shown a commendable performance this year, with its stock price increasing by 10% since January. The company, which has a broad international footprint, excels in the exploration and production of oil, bitumen, and natural gas, alongside its transportation and marketing operations.

    Despite a hiccup in the second quarter when it missed its earnings per share (EPS) target, ConocoPhillips generally delivers strong financial results. Last year, it consistently surpassed earnings expectations, boasting an average positive earnings surprise of 7.28%. Looking ahead, analysts forecast a steady rise in earnings for the current fiscal year, projecting an EPS of $9.01 and revenue of $59.23 billion, slightly up from last year’s $8.77 EPS and $58.57 billion in sales.

    The more bullish outlook among some experts suggests the potential for an EPS as high as $13.68 and revenues reaching $70.31 billion, contingent on global oil market dynamics and potential supply chain disruptions. Given these factors, ConocoPhillips represents a resilient investment opportunity, especially for those looking to capitalize on the current and projected volatility in the oil markets. This makes COP a compelling addition to consider.

    Occidental Petroleum (NYSE:OXY) – Strong Performer with Growth Potential

    Occidental Petroleum, another upstream-focused entity, has had a promising start to the year, with its stock appreciating over 12%. The company operates across the United States, the Middle East, and North Africa, focusing on the acquisition, exploration, and development of hydrocarbon properties. Alongside its core upstream business, Occidental also maintains midstream and marketing divisions, adding layers to its operational portfolio.

    Financially, Occidental’s performance has been somewhat mixed, but the company’s high points in fiscal 2023 have notably outweighed the lows. It achieved an average earnings surprise of 6.75% during the year, showing resilience despite missing targets in the earlier quarters. By the third quarter, Occidental had bounced back, posting earnings of $1.18 per share against expectations of 84 cents, underscoring its capability to recover and excel.

    Looking forward to fiscal 2024, analysts are setting their sights on earnings of $3.80 per share with revenues projected at $30.23 billion, marking a slight improvement from the previous year’s figures of $3.69 EPS and $28.92 billion in revenue. The more optimistic forecasts suggest earnings could climb to $5.39 per share on revenues of $31.9 billion. Given the current geopolitical landscape and Occidental’s strategic positioning within it, this bullish scenario appears increasingly plausible. This makes Occidental Petroleum a compelling pick for investors eyeing growth in the oil sector amidst ongoing global uncertainties.

    Massively Undervalued Stocks to Consider Now

    By
    Editorial Staff
    -
    0

    As inflation remains increasingly sticky, the hunt for undervalued stocks becomes ever more challenging. Despite the hype, meme stocks like GameStop (NYSE:GME) continue to climb, potentially leading uninformed traders towards a precarious peak as these stocks near market saturation. Moreover, even if inflation starts to cool, the cost of goods and services still sits notably higher than just two years ago. This ongoing price growth, rather than a return to previous price levels, breeds a cycle of low consumer confidence and corporate reliance on elevated pricing—strategies that might need revising as economic conditions shift.

    With meme stocks drawing attention again and tech stocks reaching price points out of reach for many, the landscape for average retail investors is morphing. These shifts make well-priced, undervalued stocks increasingly attractive in today’s market. Offering the potential for significant appreciation, these stocks provide a strategic opportunity for investors to build their portfolios at reasonable prices. Now, let’s look at three such stocks that are not just undervalued but also poised for impressive growth, thanks to their robust fundamentals and favorable market positions.

    Palantir Technologies (NYSE: PLTR) – Grab Palantir Before It Takes Off Again

    With its stock recently dipping below the usual, now might be the last chance to buy Palantir Technologies for under $25 a share. Despite a strong earnings report that initially sent shares up, they’ve unexpectedly cooled off, making it an opportune time to buy. The intrigue deepens with notable options activity, including a large call option purchase signaling high expectations over the next month. Historically, Palantir has shown the capacity to rebound and stabilize at higher price levels, and if trends hold, we could see another surge soon.

    Cricut Inc (NASDAQ: CRCT) – Crafting a Profitable Niche

    Cricut Inc might be beloved by DIY enthusiasts, but it’s undervalued in the investor community. Despite a recent 8% dip in sales, net income has soared by 116% year-over-year, thanks to significant gross margin improvements. With increasing numbers of consumers turning to home crafting, Cricut’s subscriber base and machine sales are on the rise, setting the stage for future revenue growth. Moreover, a special one-time dividend of $0.40 per share is on the table for shareholders of record by July 2nd, payable on July 19th, adding an extra incentive for investors.

    Titan Machinery (NASDAQ: TITN) – A Small Cap with Big Potential

    While it may not be as well-known as industry giants like Deere & Co, Titan Machinery shows why it shouldn’t be underestimated. The company has outperformed expectations with a 25% increase in annual sales and nearly 10% rise in yearly earnings, despite challenges such as rising supply chain and fuel costs. Trading at just 0.19x sales, 4.8x earnings, and 0.80x book value, Titan’s valuation is compelling, especially given its 79% income growth over the past three years. With conservative projections for 2025, any positive surprise could send Titan’s stock climbing.

    These stocks, each distinct in their sectors, offer strong fundamentals and potential for substantial growth, making them savvy picks for investors seeking value in a fluctuating market environment.

    1...262728...55Page 27 of 55

    Popular Posts

    My Favorites

    The Exit Strategy: Stocks Showing Critical Warning Signs

    Editorial Staff - 0
    September 27, 2025 Every successful investor knows a painful truth: knowing when to sell is often more critical than knowing what to buy. While financial media...

    Three MORE Dividend Discounts For Summer Peace of Mind

    Three Undervalued Growth Stocks With Massive Upside Potential

    This eliminates your vote on Nov 5

    © Newsmag WordPress Theme by TagDiv