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    How to Profit From Precious Metal Royalties

    By
    Editorial Staff
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    Royalty companies provide a more stable, often more profitable, precious metals investment.

    Investing in precious metals often seems to be reduced to two options. You can either buy physical gold/silver – the simpler, less risky option but often with the lowest returns, or invest in specific mining companies – which requires significant research and generally carries more risk.

    But there is another option that often goes overlooked– royalty companies. On the spectrum of risk for precious metal investing, royalty companies fall somewhere between metal and miner. But when it comes to returns, gold royalty companies have been outperforming for quite some time.

    Over the past seven years, royalty and streaming companies have significantly outperformed in both bull and bear markets. An index of five major precious metals royalty and streaming companies greatly outperformed gold and the GDX over the past seven years with a return of 128% versus gold’s return of 47% and the GDX’s return of 51%.  

    In this article, we’ll explain how precious metals royalty investments work and discuss some of the most desirable tickers in the group.  

    So what is a royalty company? A royalty company provides funding to the mining company for the tremendously expensive task of building a mine. Once the mine is producing, the royalty company receives a percentage of that production at a predetermined price or a share of the profit after the gold is sold.  

    Since the prices for mining output are already set, royalty companies can still make money even when gold prices are falling. Plus, they don’t participate in the operations of the mines themselves, so royalty companies don’t have to deal with the burden of operating costs and therefore take on much lower levels of debt than producers.

    Royalty companies also have the ability to pick and choose their projects and typically hold a diversified portfolio which minimizes concentration risk. If things take a turn for the worse with one project, the company usually has several more to fall back on. Plus, dividends of royalty companies are much more consistent and less affected by precious metal price movements compared to mining companies.  

    Royalty and streaming companies’ unique business model supports miners and produces cash flow, offering stability and returns for investors even during downturns of gold prices. This is possible thanks to high-profit margins and exposure to a diversified investment portfolio with built-in upside. Without further ado, here are a few of the best precious metal royalty investment opportunities currently available.  

    Franco-Nevada Corp. (NYSE: FNV) is a gold-focused royalty company with additional interests in silver, platinum, oil, and other resource assets. They have a diversified portfolio of 112 producing assets, 42 advanced assets (which are not yet producing), and 250 exploration-stage mining properties. FNV generates around 91% of revenues from the Americas and 9% from the rest of the world and has invested $314 million in acquisitions in 2022.  

    With a global recession seemingly on the horizon, it’s a comfort to shareholders that FNV has zero debt, $2 billion in available capital, and is generating operating cash flow at a rate of $1 billion per year. Thanks to its low-risk/high-margin business model, it’s also largely immune to cost inflation. 

    Franco-Nevada actively manages its portfolio to maintain a diversity of revenue sources. However, the majority of its stakes are still in gold. In Q3, 77% of revenues were earned from precious metals, with the other 23% mostly coming from energy assets. Their revenue is expected to remain greater than 75% precious metals through 2025.  

    FNV stock has gained 17% over the past month, and the pros think this is just the beginning. A median price target of $161 represents a 12% upside from the current price.   The stock trades at a premium, with a forward P/E ratio of 38, and comes along with a 0.89% annual dividend.

    Canada-based Elemental Altus Royalties (CVE: ELE) is an exceptional ground-floor opportunity in the royalties space with operations in the U.S., Australia, Africa, and South America. The emerging royalty company has acquired 12 royalties since 2017, including three gold royalties acquired in 2022 to the tune of $47.5M.

    An investment in Elemental Royalties is an opportunity to invest in high-quality royalties with exciting growth prospects. All of ELE’s royalties are uncapped, and no buyback options exist, so there are fewer limitations to the company’s performance. 

    It’s one of the most attractively priced precious metals royalty companies available with a trailing twelve-month price-to-revenue ratio of just 8, compared to peers like Metalla Royalty (NYSE: MTA), which currently trades at 89 times its revenue. As of Friday’s close, ELE traded at just $1.31 CAD per share.  

    Royalty Gold (NYSE: RGLD) is one of the world’s leading precious metals royalty companies. The Denver-based company holds 186 properties on five continents, including interests in 41 producing mines and 20 development-stage projects in some of the world’s most prolific mining regions in North America, South America, and Africa.  

    Our solid balance sheet and access to liquidity provided the cash to finance these acquisitions without equity dilution. With our strong cash flow during the quarter, we have already repaid $50 million of the $500 million draw on the revolving credit facility used to fund the Cortez Complex royalty acquisition.

    The company’s proven business model generates strong cash flow and high margins with a low-cost structure. As a result, RGLD’s solid balance sheet and access to liquidity provide the cash to finance these acquisitions without equity dilution in 2022. Last year,  Royal Gold reported an operating cash flow of $407.2 million, closing the year debt free, with net cash of $222 million and available liquidity of $1.2 billion.  

    Prospective investors with a long-term outlook should appreciate RGLD’s position as a sector leader in raising its dividend. In November 2021, the firm earned its inclusion as the first and only precious metals company in the S&P High Yield Dividend Aristocrats Index. Currently, investors enjoy a 1.35% dividend yield.

    Three Disruptive Names Warren Buffett is Buying

    By
    Editorial Staff
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    Warren Buffett is one of the most successful investors on Wall Street. The Berkshire Hathaway CEO is known for a long track record of market-beating returns, evident in the exemplary gains in Berkshire’s Class A shares since 1965. Over the past 57 years, the widely followed Berkshire Hathaway portfolio has generated returns of over 3.64 million percent. In other words, if you had invested $100 in Berkshire in 1965, that investment would be worth more than $3.64 million today. That works out to be an increase of around 20% compound annually, more than twice that of the S&P 500 over the same period. That stellar performance is why investors may want to take a page out of Buffett’s playbook and consider striking up a position in some Berkshire-held potential long-term winners. 

    The 92-year-old investing legend maintains the same buy-and-hold investment philosophy that has defined much of his success over the past six decades. Historically, the Oracle of Omaha has favored reliable blue chips in industries like healthcare, consumer goods, financials, and energy and tended to avoid unprofitable, speculative, high-growth potential stocks. However, that doesn’t mean there aren’t any growth stocks in Buffett’s collection. In this list, we’ll look at three disruptive, high-growth names Buffett sees as fit for adding to Berkshire Hathaway’s $700 billion portfolio.  

    It should be no surprise that Buffet owns a significant stake in Apple (AAPL) stock, considering its strong earnings, returns, and management. As the Number 1 stock in Berkshire’s portfolio by market value (worth a whopping $123.66 billion at the end of September), Apple makes up nearly 41% of Berkshire’s total equity portfolio.

    In the third quarter of 2022, Buffet added to the firm’s tech investment with a sizeable stake in the world’s largest contract chipmaker Taiwan Semiconductor (TSM). Also known as TSMC, Taiwan Semi is at the top of the list when it comes to the semiconductor manufacturing group. The company makes chips for the likes of AMD (AMD), Nvidia (NVDA), and Qualcomm (QCOM), and it’s a key chip supplier to Apple.  

    After hitting a two-year low due to a sharp slowdown in global chip demand, TSM’s share price jumped when Berkshire disclosed its more than $4.1 billion position in the stock. Still down more than 40% 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 in Lancaster, Pennsylvania, who is bullish on Berkshire Hathaway and TSM.  

    U.S. investors have been cautious when betting on the Taiwan-based chipmaker as it would lose all Western contracts in the event of a Chinese takeover of the island. However, the company is working to reduce its geopolitical risk with a new $40 billion foundry in Arizona, expected to be operational by 2024. The investment has Washington’s support as it comes amid a U.S. push to boost domestic supplies of semiconductors and Congressional passage of the $52 billion CHIPS and Science Act. 

    Taiwan Semi reported earnings of $1.79 per share from $20.23 billion in revenue in the third quarter, surpassing consensus expectations of $1.41 EPS from revenue of $19.96. Management reiterated its outlook of Q4 revenue in the range of $19.9 billion to $20.7 billion. Gross profit margin is expected to be between 59.5% and 61.5%. Operating profit margin is expected to be between 49% and 51%.

    TSM has a 90% Buy rating from the 38 analysts offering recommendations and zero Sell ratings. Anyone on the sidelines may want to consider striking up a position in this Buffet stock and holding on for years.  

    At the end of the third quarter, Berkshire also disclosed its position in the leading Brazilian fintech company StoneCo Ltd. (STNE). The firm reported owning close to 10.7 million shares, currently valued at more than $110 million, amounting to a roughly 3.4% stake in the company.

    Stoneco provides back-office software, loans, and other financial services to small and medium-sized businesses with a focus on reinvesting the cash it generates to acquire or build new financial products for its customer base. Since early 2019, the company has grown the number of small and medium business clients by 3x, revenue by 2.3x, and net income by 2.2×. 

    Stoneco has developed a range of payment solutions utilized by e-commerce for businesses and merchants all over Latin America. In the third quarter, the company reported about $390 million in revenue and earnings. Small and medium-sized businesses using the platform surpassed 2.3 million, and total payment volume in the quarter grew to nearly $14 billion.

    Stoneco stock is down close to 47% this year on news of rising interest rates, macroeconomic risks in Brazil, and some operational blunders. But base interest rates in Brazil seem to have peaked. A potential decline in the second half of 2023 is expected as Brazil’s inflation normalizes, reducing the margin pressure from rising financial expenses. Meanwhile, StoneCo’s revenue growth should benefit from increasing digitization of payments, higher take rates, and elevated growth in banking and software. STNE stock currently trades at roughly 1.4 times projected forward revenue and 33 times forward earnings, which seems fair for a disruptive, fast-growing company in a developing market.  

    Buffet isn’t the only institutional investor who’s recently raised an investment in StoneCo.  Cathie Wood’s Ark Innovation fintech exchange-traded fund (ARKF) owns roughly 2.55 million shares of the payments company valued at more than $26.5 million. STNE has a Hold rating from the pros who cover it and a median target price of $12.20, representing a 19% increase from Wednesday’s closing price.  

    Snowflake provides cloud-based ways for companies to better utilize their data over the internet. The company offers cloud-based data storage and analytics, generally termed “data-as-a-service.” Snowflake’s platform offers Data Cloud, an entire ecosystem that enables customers to consolidate and share data. They also provide a tailored version of their Data Cloud, explicitly aimed at the media and advertising industry.  

    Although Snowflake is a minor constituent of Berkshire Hathaway’s portfolio, the stock has the qualities investors look for in a potentially parabolic stock. The company provides customers with crucial tech infrastructure, and its share price has plunged 65% from its peak last year. 

    For the third quarter, Snowflake’s revenue surged 67% year over year, driven by the healthy growth in its customer base and increased customer spending. The company reported a 34% year-over-year spike in the total number of customers. Moreover, the number of customers who have spent more than $1 million on Snowflake products over the past year nearly doubled. The company’s pipeline of contracted future revenue that is yet to be realized also shot up 66% year over year to $3 billion. Snowflake should sustain such impressive growth, with addressable market management claims could be worth $248 billion by 2026. 

    Analysts are expecting 295% annual revenue growth over the next five years. However, investors will have to pay a rich 25 times sales to own shares of SNOW. But that represents a considerable discount from last year’s price-to-sales-ratio of 97. Investors on the hunt for high-growth-potential stocks that the Oracle of Omaha owns may want to give SNOW some thought.   

    Three Stocks to Watch for the Week of December 26th

    By
    Editorial Staff
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    0

    Stocks finished last week mixed following the release of data that showed consumer inflation continued to ease in November. The Dow gained 0.9%. But the S&P 500 lost 0.2%, and the Nasdaq sank 1.9% as concerns about prolonged Fed rate hikes and the possibility of a recession in 2023 weighed heavily on investor sentiment.  

    The stock market is wrapping up its worst year in decades. But every cloud has its silver lining. Eventually, every bear market throughout history has represented an opportunity for patient investors looking to pick up shares in desirable names at bargain prices. The question isn’t “if” you should be looking for stocks to buy, but which stocks to buy. This list will cover three tickers to consider in the holiday-shortened week ahead.  

    As price increases slow down, consumers may spend more, providing a boost to some battered consumer discretionary names. Amazon (AMZN) tops our list of stocks to consider on peaking inflation as its share price has been nearly cut in half this year on higher inflation and rising rates.

    Amazon is by far the world’s largest e-commerce company and, in 2021, surpassed Walmart as the world’s largest retailer outside of China. Without a direct competitor in the U.S., Amazon has experienced rapid growth through its third-party marketplace. The company operates 110 fulfillment centers worldwide, with 110 in the U.S.

    Amazon’s business model has built-in advantages like its subscription service, Prime, and streaming platform. The service currently has more than 200 million subscribers globally and 163.5 million in the U.S. That figure is expected to continue to expand at a steady pace. According to a report by Statista, U.S. Prime members are expected to reach more than 176.5 million by 2025.    

    The e-commerce market may continue to suffer in the coming months amid recession fears. Nevertheless, the $9 trillion industry is expected to expand at a CAGR of 14.7% for at least the next four years. Considering the online shopping behemoth held five times the market share of its closest rival, Walmart. Its 38% leading market share means it will likely gain the most considerable advantage from the market’s growth.    

    Even though the tech sector, in particular, has been hit this year, Citi and Goldman Sachs both recently named the tech titan as one of their top picks for 2023, echoing the sentiment of many of Wall Street’s pros. Of 53 analysts offering recommendations for AMZN, 48 call it a Buy, and 4 call it a Hold. There are no Sell recommendations for the stock. A median price target of $136 represents a 46% upside from Friday’s closing price. 

    With shipping rates down from record levels, it’s unsurprising that many shipping stocks have been whacked hard this year, creating opportunity for investors looking for dividend stocks. According to the International Chamber of Shipping, 90% of global trade passes through the maritime shipping industry. This is a very volatile sector, but it’s essential to the world’s supply chain.

    Anyone who has kept tabs on the global supply chain and shipping saga that’s been unfolding since the outbreak of covid is probably familiar with Genco Shipping (GNK). The company owns a fleet of 44 ships it leases for dry bulk transportation of goods like grain, coal, and iron ore. The going rate to rent one of Genco’s ships is no less than $27,000 per day, which provides some solid cash flow that the company uses to reward its shareholders.  

    Dry bulk shipping rates, along with GNK’s share price, have fallen in recent months. Still, as China recovers from recent lockdowns and seasonal demand is expected to be strong, it’s hard to see the pullback in share price as anything less than an opportunistic bargain. This is a very volatile sector, but it’s essential to the world’s supply chain. 

    GNK’s share price is up 6% over the past month. Although the company missed consensus EPS and revenue estimates in the third quarter, it remained consistent with its previously outlined value strategy. The company’s prudent cargo coverage in Q2 resulted in significant benchmark freight outperformance in Q3, allowing Genco to pass the savings onto its investors via a 56% quarterly dividend increase on a sequential basis. Over the last four quarters, the company has declared dividends of $2.74 per share, delivering on its commitment to return substantial capital to shareholders. GNK currently pays a 20% dividend yield.  

    Snowflake provides cloud-based ways for companies to better utilize their data over the internet. The company offers cloud-based data storage and analytics, generally termed “data-as-a-service.” Snowflake’s platform offers Data Cloud, an entire ecosystem that enables customers to consolidate and share data. They also provide a tailored version of their Data Cloud, explicitly aimed at the media and advertising industry.  

    Although Snowflake trades at a premium, it has the qualities investors look for in a potentially parabolic stock. The company provides customers with crucial tech infrastructure, and its share price has plunged 65% from its peak last year. 

    For the third quarter, Snowflake’s revenue surged 67% year over year in Q3, driven by the healthy growth in its customer base and increased customer spending. The company reported a 34% year-over-year spike in the total number of customers. Moreover, the number of customers who have spent more than $1 million on Snowflake products over the past year nearly doubled. The company’s pipeline of contracted future revenue that is yet to be realized also shot up 66% year over year to $3 billion. Snowflake should sustain such impressive growth, with addressable market management claims could be worth $248 billion by 2026. 

    Analysts are expecting 295% annual revenue growth over the next five years. However, investors will have to pay a rich 25 times sales to own SNOW shares. But that represents a considerable discount from last year’s price-to-sales-ratio of 97. Investors searching for high-growth-potential stocks may want to give SNOW some thought.  

    Three Stocks to Avoid For Now

    By
    Editorial Staff
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    0

    Seeking out great stocks to buy is important, but many would say it’s even more essential to know which stocks to steer clear of. A losing stock can eat away at your precious long-term returns. So, determining which stocks to trim or eliminate is essential for proper portfolio maintenance.  

    Even the best gardens need pruning, and our team has spotted a few stocks that seem like prime candidates for selling or avoiding. Continue reading to find out which three stocks our team is staying away from this week. 

    According to CME data, investors expect to see short-term interest rates jump to a range of 5% to 5.25% before pausing, pointing to an increasingly likely recession in the wings. According to The Economist, in six of the past seven rate hiking cycles where rates increased this rapidly, a recession formed within two years.  

    One stock that has been especially vulnerable during recessions that may surprise you is aircraft maker Boeing (BA). The share price has dropped an average of 40% in the past five recessions, underperforming every other S&P 500 stock by the same metric. Shares of Boeing sank 56% in the recession that began in 2020, 43% in the one that started in 2007, and 47% in the 2001 recession. 

    Despite its role as a leader in commercial airplanes, demand seems to evaporate for Boeing products during recessions, along with its typically healthy backlog and direction for the stock. That presents a real hazard for anyone eyeing BA after plunging 37% so far this year. If a recession is forming, this could be just the beginning of Boeing’s losing streak.  

    At their September lows, Boeing shares were approaching levels comparable to the early days of the pandemic.   If the economy is indeed heading toward an extended slowdown, it could take years for Boeing shares to reach previous heights. Given all of the uncertainties combined with the lack of any significant positive catalyst for the company heading into 2023, we’re sticking to the sidelines on the stock.  

    Over the past two years, the dramatic shift from brick-and-mortar shopping to e-commerce has been a tremendous obstacle for investors in malls and shopping centers. The demise of cornerstones like Sears and JCPenny hastened the decline as shopping malls are now left without anchor tenants.   Recent data suggests that 25% of America’s 1,000 malls will be closed in the next 3-5 years.  

    Leading shopping mall REIT Simon Property (SPG) is struggling to pivot amid the inexorable decline of its core asset group. The REIT has been aggressive in diversifying into outlets and foreign real estate, which may help to hedge against increasingly substantial losses from their shopping mall category. But given current inflation and the possibility of an economic slowdown, both shoppers and retailers may be in a tight spot this holiday season which will inevitably weigh heavily on SPG.  

    Investors choose REIT stocks because of their income-producing abilities and yields. The fact that SPG is concentrated in brick-and-mortar retail is tangential to its income feature. Anyone looking for the reliable income that real estate and mortgage investments can bring would be wise to steer clear of Simon Property for now.  

    Food delivery leader and pandemic darling DoorDash (DASH) was one of the big winners in the shift to stay-at-home culture. Between 2019 and 2021, DASH revenue increased by 451% from $885 million to $4.88 billion. But once the economic reopening was complete, Wall Street’s enthusiasm over the stock sharply halted. Since hitting its peak in November of last year, the stock has plunged more than 75%. Now that the tide has washed out, investors are left to access what’s left, searching for an answer to the looming question – is profitability in the cards for DoorDash?

    DoorDash has never generated a profit, with the exception of the second quarter of 2020, where it made a profit of $23 million. “It took a global pandemic to drive the firm’s one-quarter profitability. The firm has not been profitable since, and we think it may never be,” said David Trainer, the CEO and founder of New Constructs.

    The company reported third-quarter revenue and EBITDA of 4% and $29M above consensus expectations, but  DASH’s EPS is estimated to remain negative in 2022 and 2023. The company is expecting $49 to $51 billion in gross order volume in 2022, implying a modest 14% increase from $41.9 billion last year. However, that’s not enough to justify DASH’s lofty valuation. Currently, the stock trades at a price-to-sales multiple of 4.6, expensive compared to top competitors like Uber Technologies (UBER), which trades at a price-to-sales multiple of 2.1 – half that of DASH.

    One Airline Stock to Consider and One to Stay Away From

    By
    Editorial Staff
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    0

    Airline stocks are dirt cheap and worth considering ahead of an eventual recovery, but not all are well suited in the long run.

    The airline industry has seen a remarkable recovery in 2022 thanks to increasing travel demand and consumers’ willingness to pay higher fares. Nevertheless, some airlines are still drowning in debt from the pandemic. At the same time, several have had to cut routes and scale back on expansion plans as supply chain and labor constraints have delayed the production of new aircraft, while airlines continue to struggle with labor shortages. 

    Airfare in the U.S. has eased from its peak earlier this year, but prices are still well above 2021 levels. According to data from the  Bureau of Transportation Statistics, airfares were up 36% year-over-year in November. Rising inflation and higher interest rates could put a damper on demand in the short term, but many airlines are expected to return to profitability in 2023.  

    With airline stocks currently trading at very low multiples, many long-term-minded investors are eyeing the group, wondering which of these beaten-down tickers is the best value. Some airlines will be better equipped to withstand a slowing economy and possible recession, while others may struggle to keep up. Here we will examine two companies from the airline industry, one that seems prepared to build on recent success and one that could be left hanging by a thread in a weakening economy.  

    Delta Airlines (DAL), the second airline company to have joined the coveted S&P 500 Index, commands more than a 17% share of the domestic aviation market. As you would expect, most of the Atlanta, GA-based carrier’s revenues are realized from its airline segment. What might surprise you is that 10% of the $29.9-billion amount generated in 2021 came from the company’s refinery segment, which operates for the benefit of the airline division by providing it with jet fuel from its own production.

    Fuel savings are crucial to a functioning aviation industry in this next chapter. From increasing costs to environmental impact, airlines have had plenty of reasons to save every bit of jet fuel they can. Delta recently revealed details of how its fleet renewal program has helped to save tens of millions of gallons of fuel.  

    Earlier this month, the airline heavyweight raised its Q4 and full-year 2022 guidance and forecast an upbeat 2023, driven by robust demand. The company now expects the fourth-quarter 2022 operating margin to be 11%. Management sees adjusted earnings per share in the $1.35-$1.40 range (the earlier outlook was in the range of $1-$1.25). For the full-year 2023, DAL expects 15-20% year-over-year revenue growth. Earnings per share and operating margin for 2023 are expected in the $5-$6 band and 10-12% range, respectively. 

    Delta has been more conservative than some competitors in bringing back capacity, but the carrier aims to have its network restored to 2019 levels next summer. In the meantime, several competitors have had to cut routes and scale back on expansion plans as supply chain and labor constraints have delayed the production of new aircraft, while airlines continue to struggle with labor shortages, but for Delta, bookings remain strong into early 2023.

    Delta shares are currently very cheaply priced at less than eight times earnings. The stock garners an 85% Buy rating on Wall Street. A median consensus price target of $45 represents a 36% increase from the last price.    

    A less optimistic story from the airline industry is that of Jet Blue Airways (JBLU). Jet Blue has not had an easy year amid rising fuel costs, supply chain snags, and inflationary pressure. Recent losses have been compounded by Hurricane Nicole, a rare November storm that made landfall on the Atlantic Coast of Florida, causing closures and evacuations throughout the state and leaving a wake of destruction in its path. As a result, JetBlue was forced to cancel and suspend flights and issue travel waivers for destinations in the storm’s path. Nicole negatively affected operations for several airlines, but JetBlue seems to be struggling the most to bounce back. 

    With hurricane Nicole’s negative impact on operations, demand for the final month of the year has not been as strong as expected, according to the company’s management. Aside from the hurricane, this year’s holiday calendar timing has had a negative impact, with Christmas and New Year’s falling on weekends this December. As a result, the company revised its year-end and Q4 outlook. Management now anticipates revenue per available seat mile for the fourth quarter of 2022 to be at the low end of its prior guided range of a 15-19% increase from the fourth quarter of 2019.  

    With airline stocks currently trading at extremely low multiples, value seekers may be eyeing the group, wondering which ticker is the better buy. Some airlines will be more suited to withstand a slowing economy and possible recession, while JetBlue does not seem well-equipped for further negative impact. Anyone considering JBLU at less than eight times earnings would do better to consider a more stable name, like Delta.   

    Three Promising Biotech Stocks to Watch in 2023

    By
    Editorial Staff
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    0

    Some experts say we’re in “the golden age of biotechnology.” Scientific advances are opening up possibilities for the treatment and prevention of diseases that could only have been imagined in the past.

    This golden age is also presenting tremendous opportunities for investors. Biotech stocks offer the potential for substantial long-term returns. The best biotech stocks to buy now boast robust pipelines; some already have winning drugs on the market.

    Here are a few of the companies that look like good options to move significantly higher in 2023.

    Vertex Pharmaceuticals (VRTX) is the undisputed leader in cystic fibrosis therapies. The company’s portfolio of approved CF drugs will deliver at least an estimated $8.4 billion this year, made possible by intense market penetration and decades-long devotion to research and development in the space. 

    So far, the company has managed to remain strongly profitable and has continued to expand revenue within the CF market at a steady pace. If management’s plans for expanded approvals for younger age cohorts continue to come to fruition over the next few years, Vertex will eventually be treating as many as 90% of all people with CF.

    The company is moving its pipeline beyond CF with a handful of mid-stage clinical programs for pain relief, kidney disease, and genetic hematologic disorders like sickle cell disease. In other words, even if it eventually completely corners the entire market for CF therapies, there will still be other growth opportunities.  

    One potential catalyst is its partnership with CRISPR Therapeutics (CRSP) in developing gene-editing treatments for two rare blood disorders, which is expected to begin regulatory studies in March 2023. This means investors can look forward to a steadily increasing flow of new revenue and expanded approvals, which should significantly support the stock’s price.   

    Of 26 analysts offering recommendations for VRTX, 18 give the stocks a Buy rating, and nine rate it a Hold. There are no Sell ratings. It seems likely that Vertex will reward patient investors as the steadily growing biopharma company seems ripe for expansion for years to come.  

    Drugmaker, Viatris’ (VTRS)  portfolio currently comprises more than one thousand approved molecules across a wide range of key therapeutic areas, including globally recognized iconic and key brands, generic, complex generic, and biosimilar products. Branded products include EpiPen, Amitiza, Lipitor, and Viagra. Its biosimilar portfolio includes pegfilgrastim, trastuzumab, and adalimumab biosimilars.

    Viatris is profitable, but it is looking for more growth. The company reported revenue of $4.1 billion in the third quarter, down 10.1% year over year. Adjusted earnings came in at $0.87 per share, surpassing consensus estimates but down from $0.99 per share in the year-ago quarter. 

    The company generated $144 million in revenues from products launched in 2022, primarily driven by lenalidomide, its myeloma treatment, its interchangeable insulin injectable Semglee, and its unbranded insulin pen in the United States. It is on track to achieve approximately $525 million in new product revenues in 2022, which is below expectations due to the timing of launches but with better-than-expected margins.

    Viatris’ earnings are expected to contract by 4% in 2022, and the stock is down 21% year to date. However, analysts, on average, expect Viatris to rise nearly 18% going forward, according to FactSet. The reason behind Wall Street’s optimism is changes to the company’s business plan that have already been set into motion. 

    The company is in the process of trimming its less-profitable operations, including its biosimilars, women’s health division, and its over-the-counter drugs. In its place, it is adding an ophthalmology franchise through the $750 million acquisitions of Oyster Point Pharma and Famy Life Sciences. The deal is expected to close in the first quarter of 2023. Management expects the acquisition to generate at least $1 billion in sales by 2028.

    The company has a relatively high debt-to-equity ratio of nearly two, but it has the right idea by trimming its less-profitable operations and paying down its debt. Management sees revenues expanding at a CAGR of 3% between 2024 and 2028 and EPS expanding at a CAGR of around 15% over the same period. VTRS hopes to use the expanding revenue to reward its investors through steady dividend growth. Its current yield is 4.4%, and its payout ratio is very safe at 20%. Though it’s a speculative recommendation based on the success of the company’s business transition, the rewards could be handsome.

    Biogen is a biopharmaceutical company focused on therapies for neurological and neurodegenerative diseases. The company is on the leading edge of creating drugs and therapeutics for some of the more perplexing and chronic diseases like Alzheimer’s disease. Biogen has been working on drugs that can reduce the buildup of amyloid plaques which could be critical to stemming the advancement of the disease.  

    The neurological solutions pioneer has partnered with Eisai, a Japanese pharmaceutical company, to develop Lecanemab, one of its potential amyloid plaque-destroying drug candidates. The two companies will split the drug’s profits 50/50. Recent data from lecanemab has proven “robust” as the drug saw a 27% reduction in patients’ clinical decline on cognitive and functional metrics, causing the entire industry to rethink the historically elusive answer to Alzheimer’s.  

    Following the “better than expected” Phase 3 data for lecanemab, JPMorgan analyst Chris Schott raised the firm’s price target on Biogen to $275 from $221. The analyst foresees full FDA approval for lecanemab and believes there is a high probability that the Centers for Medicare and Medicaid Services will cover the drug. Schott would not be surprised to see further upside for the shares into year-end as he expects lecanemab to dominate the competition.

    While lecanemab takes center stage, Biogen has a pipeline that features several drugs in various clinical stages. The company’s Spinraza for treating spinal muscular atrophy has been a blockbuster drug. Multiple sclerosis drugs Avonex and Plegridy generate nearly $2 billion in annual sales.  

    BIIB shares spiked on the positive lecanemab results and have dwindled since. A better entry opportunity may come, but for long-term-minded investors with a focus on growth, Biogen is an intriguing candidate even at its current level.

    Three Stocks to Watch for the Week of December 19th

    By
    Editorial Staff
    -
    0

    Stocks declined last week, posting a second straight weekly loss following a hawkish Fed meeting and mixed inflation data. The Federal Reserve lifted its benchmark interest rate for the seventh and final time this year, approving a 50 basis point increase. Market participants were relieved to see a ramp down from the previous 75 basis point hikes but were discouraged by the Fed’s forward outlook, which calls for a higher benchmark target range for 2023 than initially outlined. The major indices retreated following Wednesday’s announcement, then were further dragged down on Thursday by retail sales figures for November that came in well below expectations. For the week, the Dow shed 1.7%, the S&P 500 fell 2.1%, and the Nasdaq contracted 2.7%. 

    With only two weeks left in 2022, recession fears continue to weigh heavily on markets. In the coming week, traders will be tuned in for the November update to the Personal Consumption Expenditures Price Index (PCE), the Fed’s preferred gauge for tracking inflation. Market participants are hoping for a signal that inflation continued to moderate last month and that the Fed will be able to tamp inflation without pushing the economy into a recession. The housing market will also be in focus, with the NAHB Housing Market Index due for release on Monday, followed by data on new and existing home sales for November.  

    One of the hardest hit sectors of the year, real estate, has been a bright spot in markets recently, thanks to fast-falling mortgage rates. According to bankrate.com, the national average for a 30-year fixed mortgage hit a high of 7.2% on November 11th and has since pulled back to around 6.5%. Homebuilders have benefited from the deep dive over the past few weeks and should continue to do so as long as mortgage rates continue to lower. 

    According to some Wall Street pros, we may have a “once-in-a-cycle opportunity” to cash in on the early-cycle outperformance phase of homebuilder stocks, begging the question – which home builders are best positioned in the lower-mortgage-rate environment?    

    Companies likely to be best positioned are the largest-scale players. Our first recommendation for the week ahead is the number one home builder in America since 2002, D. R. Horton Inc (DHI).   Founded in 1978 in Fort Worth, Texas, D.R. Horton operates in 106 markets in 33 states across the United States and closed 83,518 homes in its homebuilding and single-family rental operations during its fiscal year ended September 30th, 2022. 

    The company is engaged in constructing and selling high-quality homes through its diverse brand portfolio, which includes Emerald Homes, Express Homes, and Freedom Homes, with sales generally ranging from $200,000 to over $1,000,000. It also provides mortgage financing, title services, and insurance agency services for its homebuyers through its mortgage, title, and insurance subsidiaries. 

    In its most recent quarter, D.R. Horton missed analyst estimates for earnings and revenue due to the cooling housing market. From June to September 2022, the company’s total homebuilding lot position decreased by 25,000 lots, but the company has been actively managing the lot and land pipeline and investments in lots, land, and development to meet needs during this transition in the housing market. 

    Impressive performance, industry-leading market share, a solid acquisition strategy, a well-stocked land supply, lots, and homes, along with affordable product offerings across multiple brands, are expected to drive growth. D.R. Horton’s earnings are expected to grow 1.7% in fiscal 2023. The stock has gained 24.9% over the past three months, outperforming the industry’s 19% rise. DHI stock has a solid Buy rating from the pros offering recommendations. A median price target of $95 represents an increase of 8% from Friday’s closing price. 

    The airline industry has seen a remarkable recovery in 2022 thanks to increasing travel demand and consumers’ willingness to pay higher fares. With airline stocks currently trading at very low multiples, many long-term-minded investors are eyeing the group, wondering which of these beaten-down tickers is the most attractive value.

    Delta Airlines (DAL), the second airline company to have joined the coveted S&P 500 Index, commands more than a 17% share of the domestic aviation market. As you would expect, most of the Atlanta-GA-based carrier’s revenues are realized from its airline segment. What might surprise you is that 10% of the $29.9-billion amount generated in 2021 came from the company’s refinery segment, which operates for the benefit of the airline division by providing it with jet fuel from its own production.

    Fuel savings are crucial to a functioning aviation industry in this next chapter. From increasing costs to environmental impact, airlines have had plenty of reasons to save every bit of jet fuel they can. Delta recently revealed details of how its fleet renewal program has helped to save tens of millions of gallons of fuel.  

    Last week, the airline heavyweight raised its Q4 and full-year 2022 guidance and forecast an upbeat 2023, driven by robust demand. The company now expects the fourth-quarter 2022 operating margin to be 11%. Management sees adjusted earnings per share in the $1.35-$1.40 range (the earlier outlook was $1-$1.25). For the full-year 2023, DAL expects 15-20% year-over-year revenue growth. Earnings per share and operating margin for 2023 are expected in the $5-$6 band and 10-12% range, respectively. 

    Delta has been more conservative than some competitors in bringing back capacity, but the carrier aims to have its network restored to 2019 levels next summer. In the meantime, several competitors have had to cut routes and scale back on expansion plans as supply chain, and labor constraints have delayed the production of new aircraft. Airlines continue to struggle with labor shortages, but for Delta, bookings remain strong into early 2023.

    Delta shares are currently very cheaply priced at less than eight times earnings. The stock garners an 85% Buy rating on Wall Street. A median consensus price target of $45 represents a 36% increase from the last price.  

    As long as marijuana remains illegal at the federal level, access to credit markets for pot companies will be spotty at best. Marijauana-focused real estate investment trust Innovative Industrial Properties (IIPR) buys medical marijuana cultivation and processing facilities in legalized states with cash and leases these properties back to the seller. It’s a win-win agreement that provides money to cannabis companies while netting IIP long-term tenants.

    IIPR provides investors ground floor access to exponential growth potential along with the reliability of a REIT. As of early November, Innovative Industrial Properties owned 111 properties covering 8.7 million square feet of space in 19 states. Over the past five years, IIPR’s quarterly dividend payout has grown by 1,100%. The REIT currently boasts a 7.74% yield.  

    Three Stocks to Avoid Next Week

    By
    Editorial Staff
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    0

    Seeking out great stocks to buy is important, but many would say it’s even more essential to know which stocks to steer clear of. A losing stock can eat away at your precious long-term returns. So, figuring out which stocks to trim or eliminate is essential for proper portfolio maintenance.  Even the best gardens need pruning, and our team has spotted a few stocks that seem like prime candidates for selling or avoiding.

    With airline stocks currently trading at extremely low multiples, long-term-minded value seekers may be eyeing the group and wondering which ticker is the better buy. But some airlines are still drowning in debt from the pandemic. While several have had to cut routes and scale back on expansion plans as supply chain and labor constraints have delayed the production of new aircraft, and airlines continue to struggle with labor shortages. The first name on our list of stocks to avoid is an air carrier that seems less equipped to handle what may be in the wings for the entire industry.  

    Jet Blue Airways (JBLU) has not had an easy year amid rising fuel costs, supply chain disruptions, and inflationary pressure. Recent losses have been compounded by Hurricane Nicole, a rare November storm that made landfall on the Atlantic Coast of Florida, causing closures and evacuations throughout the state and leaving a wake of destruction in its path. As a result, JetBlue was forced to cancel and suspend flights and issue travel waivers for destinations in the storm’s path. Nicole negatively affected operations for several airlines, but JetBlue seems to be struggling the most to bounce back. 

    With hurricane Nicole’s negative impact on operations, demand for the final month of the year has not been as strong as expected, according to the company’s management. Aside from the hurricane, this year’s holiday calendar timing has had a negative impact, with Christmas and New Year’s falling on weekends this December. As a result, the company revised its year-end and Q4 outlook. Management now anticipates revenue per available seat mile for the fourth quarter of 2022 to be at the low end of its prior guided range of a 15-19% increase from the fourth quarter of 2019. JetBlue’s disappointing comments on air-travel demand resulted in the declination of shares of most airlines. The NYSE Airline index lost 5.77% over the past week, while JBLU sank nearly 8%. 

    With airline stocks currently trading at extremely low multiples, value seekers may be eyeing the group, wondering which ticker is the better buy. Some airlines will be more suited to withstand a slowing economy and possible recession, while JetBlue does not seem well-equipped for further negative impact. Anyone considering JBLU at less than 8 times earnings would do better to consider a more stable name.   

     While the future remains bright for renewable energy, not all solar stocks are a buy. Provider of solar engineering and construction services, iSun Inc. (ISUN), has seen operating losses skyrocket alongside revenue increases in recent years.  

    iSun reported third-quarter 2022 revenue of $19 million, representing a 185% increase over the same period in 2021. Alongside top-line growth over the past year, the company has reported $22 million in operating losses. Operating income in the third quarter was a loss of $4.9 million compared to a loss of $1.6 million over the same period in 2021. YTD operating income was a loss of $16.2 million compared to a loss of $7 million during the same period in 2021.

    Given the company’s already high debt position after a series of acquisitions in 2021, the additional losses could force it to raise equity to de-lever its balance sheet, which could mean further declines for iSun.  

    The small, unprofitable solar company’s stock is down 80% over the past 12 months, but it’s far from a bargain considering the risk factor.  

    There’s no question that electric vehicles are the future, but investors looking for bargains amid the market meltdown would be wise to steer clear of third-party companies specializing in EV charging stations like Blink Charging (BLNK). It’s much too soon to predict winners in this cutthroat niche of the EV industry primarily because it’s unclear whether third-party charging kiosks will ever be profitable.  

    Analysts don’t see Blink becoming profitable before 2026. By then, the company will likely be looking at a much different landscape – a lot can change in three years. From the current vantage point, the near future looks murky for the entire EV industry, considering the massive layoffs that have occurred this year amid supply chain pressure and production restrictions in China. Blink Charging shares have fallen 76% since peaking in early 2021 and are 53% lower year-to-date, but the stock is still trading at 23 times revenues. For perspective, the price-to-sales ratio for the S&P 500 index as of December 1 was roughly 3. This was also way higher than what the ratio has been historically. The current consensus is to Hold Blink stock. We’ll stick to the sidelines on third-party EV charging companies until EV industry headwinds subside. 

    One Fintech Stock to Buy and One to Avoid Like the Plague

    By
    Editorial Staff
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    0

    Fintech’s recovery may be on the way in 2023, but some names are positioned to recover ahead of others.

    Amid rising interest rates and a drastic rotation out of technology, fintech stocks have taken a beating this year, vastly underperforming the overall market. Global X FinTech ETF (FINX), a fund that tracks an index of up to 100 fintech stocks, has plunged over 53% this year versus the S&P 500’s loss of 20%. Many fintech names are also feeling the pressure from the recent plunge in digital currency prices resulting from the FTX bankruptcy. Meanwhile, competition in the space is intensifying as a wave of fintech startups aim to draw in merchants.  

    Nevertheless, the shift in consumer spending habits to online and mobile platforms is undeniable. Expansion of the adoption of contactless payment and the growing popularity of “buy now, pay later” transactions should serve as significant tailwinds for strong names within the industry. But not all fintech companies will stay in the race.  

    With a potential rebound for fintech stocks on the horizon in 2023, many investors are considering stocks from the group that have had their prices recently slashed. However, not all tickers from the space are equal. Some companies are likely to recover more robustly than others, while some still may have further to fall. In this article, we’ll take a look at two firms from the fintech space; one has several positive qualities that are likely to give it steam for a healthy rebound, and the other – not so much.  

    StoneCo Ltd. (STNE) provides back-office software, loans, and other financial services to small and medium-sized businesses with a focus on reinvesting the cash it generates to acquire or build new financial products for its customer base. Since early 2019, the company has grown the number of small and medium business clients by 3x, revenue by 2.3x, and net income by 2.2×. 

    Stoneco has developed a range of payment solutions utilized by e-commerce for businesses and merchants all over Latin America. Stoneco reported about $390 million in revenue and earnings in the third quarter. Small and medium-sized businesses using the platform surpassed 2.3 million, and total payment volume in the quarter grew to nearly $14 billion.

    Stoneco stock is down close to 54% this year on news of rising interest rates, macroeconomic risks in Brazil, and some operational blunders. But base interest rates in Brazil seem to have peaked. A potential decline in the second half of 2023 is expected as Brazil’s inflation normalizes, reducing the margin pressure from rising financial expenses. Meanwhile, StoneCo‘s revenue growth should benefit from rising digitization of payments, higher take rates, and elevated growth in banking and software. STNE stock currently trades at roughly 1.4 times projected forward revenue and 33 times forward earnings, which seems fair for a disruptive, fast-growing company in a developing market.  

    Some prominent institutional investors have recently taken a shine to STNE. At the end of the third quarter, Berkshire Hathaway disclosed a new $110 million position in the company. Cathie Wood’s Ark Innovation fintech exchange-traded fund (ARKF) also owns roughly 2.55 million shares of the payments company valued at more than $26.5 million. STNE has a Hold rating from the pros who cover it and a median target price of $12.20, representing a 32% increase from Friday’s closing price.  

    While a winning fintech stock could boost your portfolio significantly, the wrong fintech stock could be detrimental to your precious long-term returns. That’s why avoiding tickers from the group that seem especially vulnerable is vital. One stock we’re avoiding is Upstart Holdings (UPST). 

    Upstart’s management provided less than inspiring Q4 guidance during the company’s disappointing third-quarter earnings call, sparking yet another sell-off for the stock. UPST’s share price is down more than 95% from its October 2021 ATH, and it may have more to go as bank partners tighten their fists.  

    In the midst of aggressive shifts in monetary policy, institutional lenders are less willing to fund Upstart’s loans than ever. It makes sense for backers to be so cautious in the current macroeconomic environment. Rising interest rates will continue to pressure consumers, leading to more defaults. Upstart is especially vulnerable as its AI models have yet to be tested during a significant down period in the credit cycle.  

    Making matters worse, Upstart more than doubled the amount in loans it funded with its own cash in Q2 2022 in just a single quarter. The company reported $600 million in loans on its balance sheet, up from $250 million in the previous quarter, severely exposing its balance sheet to credit risk at a terrible time. This was one contributing factor to Upstart’s third-quarter revenue miss and management’s decision to lower Q4 guidance. 

    Management sees Q4 revenue in the range of $125 million to $145 million. That implies revenue growth of roughly 18%, representing a sharp deceleration from the 252% revenue growth UPST delivered in Q4 2021. With growth momentum slowing while competition in the space is simultaneously growing, UPST is one fintech stock to stay away from for now. The current consensus recommendation is to Sell Upstart. A median price target of $14 represents a 9% decrease from the current price.  

    Three Stocks to Consider on Peaking Inflation

    By
    Editorial Staff
    -
    0

    Now is the perfect time to check your positioning ahead of the new economic environment

    Along with a 50 basis point interest rate hike, Federal Reserve Chair Jerome Powell announced today that policymakers will look for “substantially more evidence to have confidence that inflation is on a sustained downward path.”  Still, recent data has signaled a possible inflation peak, causing market participants to consider their positioning ahead of the new economic environment.

    The November consumer price index report showed a lower-than-expected increase for the second month in a row, signaling that inflation may have peaked. Consumer prices rose just 0.1% in November from the previous month and 7.1% from the previous year, where economists expected a 0.3% monthly increase and a 7.3% increase year-over-year.

    If inflation has peaked and the worst is behind us, certain stocks are set up to potentially gain. This list will look at three stocks that should get a boost as inflation subsides.  

    As price increases slow down, consumers may spend more, providing a boost to some battered consumer discretionary names. Amazon (AMZN) tops our list of stocks to consider on peaking inflation as its share price has been nearly cut in half this year on higher inflation and rising rates.

    Amazon is by far the world’s largest e-commerce company and, in 2021, surpassed Walmart as the world’s largest retailer outside of China. Without a direct competitor in the U.S., the company has experienced rapid growth through its third-party marketplace. The company operates 110 fulfillment centers worldwide, with 110 in the U.S.

    Amazon’s business model has built-in advantages like its subscription service, Amazon Prime, and its streaming platform. The service currently has more than 200 million subscribers globally and 163.5 million in the U.S. That figure is expected to continue to expand at a steady pace. According to a report by Statista, U.S. Prime members are expected to reach more than 176.5 million by 2025.    

    The e-commerce market may continue to suffer in the coming months amid recession fears. Nevertheless, the $9 trillion industry is still expected to expand at a CAGR of 14.7% for at least the next four years. Considering the online shopping behemoth held five times the market share of its closest rival, Walmart, its 38% leading market share, means it will likely gain the most significant advantage from the market’s growth.    

    Even though the tech sector, in particular, has been hit this year, Citi and Goldman Sachs both recently named the tech titan as one of their top picks for 2023, echoing the sentiment of many of Wall Street’s pros. Of 53 analysts offering recommendations for AMZN, 48 call it a Buy, and 4 call it a Hold. There are no Sell recommendations for the stock. A median price target of $136 represents a 46% upside from Wednesday’s closing price. 

    Whether inflation has peaked or not, healthcare is an undeniable necessity. Our following recommendation is a small but profitable pharma biotech company with massive expansion plans in the wings. The company also pays a sizeable dividend to shore up your portfolio for what could be coming.  

    Drugmaker, Viatris’ (VTRS)  portfolio currently comprises more than one thousand approved molecules across a wide range of key therapeutic areas, including globally recognized iconic and key brands, generic, complex generic, and biosimilar products. Branded products include EpiPen, Amitiza, Lipitor, and Viagra. Its biosimilar portfolio includes pegfilgrastim, trastuzumab, and adalimumab biosimilars.

    Viatris is profitable, but it is looking for more growth. The company reported revenue of $4.1 billion in the third quarter, down 10.1% year over year. Adjusted earnings came in at $0.87 per share, surpassing consensus estimates, but down from $0.99 per share the year-ago quarter. 

    The company generated $144 million in revenues from products launched in 2022, primarily driven by lenalidomide, its myeloma treatment, its interchangeable insulin injectable Semglee, and its unbranded insulin pen in the United States. It is on track to achieve approximately $525 million in new product revenues in 2022, which is below expectations due to the timing of launches but with better-than-expected margins.

    Viatris’ earnings are expected to contract by 4% in 2022, and the stock is down 21% year to date. However, analysts, on average, expect Viatris to rise nearly 18% going forward, according to FactSet. The reason behind Wall Street’s optimism is changes to the company’s business plan that have already been set into motion. 

    The company is in the process of trimming its less-profitable operations, including its biosimilars, women’s health division, and its over-the-counter drugs. In its place, the company is adding an ophthalmology franchise through the $750 million acquisitions of Oyster Point Pharma and Famy Life Sciences. The deal is expected to close in the first quarter of 2023, the company said, adding that it sees the acquisitions generating at least $1 billion in sales by 2028.

    The company has a relatively high debt-to-equity ratio of nearly two, but it has the right idea by trimming its less-profitable operations and paying down its debt. Management sees revenues expanding at a CAGR of 3% between 2024 and 2028 and EPS expanding at a CAGR of around 15% over the same period. VTRS hopes to use the expanding revenue to reward its investors through steady dividend growth. Its current yield is 4.4%, and its payout ratio is very safe at 20%. Though it’s a speculative recommendation based on the success of the company’s business transition, the rewards could be handsome.

    Cyclical stocks have had a tough time in 2022, but 2023 could be a banner year for growth stocks as inflation cools and the Fed eventually finishes the rate hiking cycle. One notable growth name that got hammered in 2022 is Meta Platforms Inc. (META). The stock currently trades at its cheapest level at less than 17x forward earnings, and it may have further to fall. Still, with the most prominent family of apps and 4 billion users worldwide, META’s recovery could be swift when tech turns around. 

    Meta was once one of the world’s most valuable companies and is considered one of the Big Five American information technology companies, alongside Alphabet, Amazon, Apple, and Microsoft. As of 2022, it is the least profitable of the five, and has fallen from the list of the top twenty biggest companies in the United States. The company owns Facebook, Instagram, and WhatsApp, among other products and services. In October 2021, the parent company of Facebook changed its name from Facebook, Inc., to Meta Platforms, Inc., to “reflect its focus on building the metaverse.”  

    The metaverse is still in its embryonic stages, but an increasing number of market participants are jumping in on the companies they believe will lead the way into this fantastic new iteration of the internet. For investors who want to get their foot in the door now, pioneering META seems like a good choice, especially since its price has been slashed more than 66% over the past year.

    Signs of a weakening ad market have been apparent as prices have risen across the board. Regulatory troubles, layoffs, and management changes have intensified the pain for META this year. But as inflation cools, Meta’s commercial ad spend seems likely to recover as soon as the second half of 2023.   If investors should be greedy when others are fearful, the perfect time to scoop up shares of the social media giant.  

    Of 58 polled analysts, 38 recommend buying META stock, while 19 rate the stock as a Hold, and only 1 rate it as a Sell. A median price target of $145 represents an increase of 20% from Wednesday’s closing price.  

    Read Next – NEW WARNING: This could end America…

    From the legend who predicted the Great Financial Crisis, the collapse of Fannie Mae and Freddie Mac, General Motors, and General Electric

    He predicted the 2008 financial crash…

    He warned the government’s bailouts, money printing, and soaring debt burden would lead to a crisis of America’s civil society… 

    Predicting in near-perfect detail the riots, lockdowns, shortages, and rampant inflation we’ve all been subjected to. 

    Today, he’s stepping out of retirement to issue an urgent new warning, one he says could forever change America. 

    “Lockdowns and government control of your private health choices were only the beginning… 

    Soon, entire swaths of our economy may be shut down – forever. Tens of millions of Americans will be wiped out financially.” 

    He says this coming event will be more devastating than the dotcom blowup, the 2008 financial crisis, or the Covid crash. 

    And, for those who are unprepared, it could decimate their savings, investments, retirement, and even their way of life. 

    The shockwaves will rip our country even further apart, leading to a surge in violence, protests, and economic disruption.  

    However, for those who know what’s coming, there are ways to protect yourself and your family… and to even make huge profits.

    To get all the details, click here now. 

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