Be Wary of These Risky Tech Stocks

August 21, 2023

Every group, generally speaking, has a few bad apples. It could be a branch of government, an online subreddit, a sports team, a nonprofit organization, or a stock market sector.

Now, the existence of a few bad apples doesn’t automatically mean you end up with a spoiled bunch. The typical solution is to weed out the bad apples. Corny as it sounds, this principle holds true.

Here, we dive into a story within the tech scene, where not all stocks are flying as high as the sector. A handful of companies are facing revenue drops – a red flag amidst the positive noise.

In the following article, I’ll attempt to untangle these threads, looking at a few stocks that aren’t riding the wave. As the tech arena booms, it’s essential to heed these nuanced stories – a reminder that not everything shining is gold.

BlackBerry Ltd (BB)

While not the first name that comes to mind when we think of cybersecurity, BlackBerry Ltd. (BB) leads off our list of companies to avoid, or at least take a hard look at. BB’s cybersecurity arm faces a substantial challenge as its year-over-year revenue decline persists. The more profound concern lies in the diminishing recurring revenue trend. BB aims to provide cybersecurity for autonomous vehicles, underscoring intense market competition.

Although the company has secured recent design victories, its shift in focus remains unproven. You can say there’s a reasonable approach to considering BB as an investment, as it’s been trading under $5. However, the stock has dropped by 29% in the past twelve months, despite a 46% surge in 2023. Let’s keep an eye on BB before putting our money into it.

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

SentinelOne Inc (S)

While cybersecurity is often seen as resistant to economic downturns, SentinelOne (S) promotes its Artificial Intelligence-driven Singularity Platform as a trailblazer in autonomous technology. Despite the promising combination, though, caution is warranted with S. After Q1 earnings, the company revised its sales projections for fiscal year 2024, leading to a 5% workforce reduction.

This move failed to reassure investors, as S stock plummeted by 26% post-announcement. However, the concern runs deeper—this decline is part of an ongoing pattern that we’ve seen since the firm’s 2021 IPO, resulting in a staggering 64.8% drop since then. While the cybersecurity market thrives, wiser alternatives exist for all but the most risk-tolerant investors.

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

Okta Inc (OKTA)

Okta Inc. (OKTA) prides itself on being the sole independent and neutral identity solution, granting secure access to external networks in our remote-driven world. This ongoing relevance suggests a consistent revenue flow for OKTA. This aspect correlates with the company’s consecutive revenue growth. However, that pace has diminished. A similar trend echoes in earnings, and it’s not uncommon for companies in this domain to sometimes lack profitability.

Further positive indicators emerge for OKTA, such as rising margins and updated yearly guidance. However, these factors have yet to substantially boost the stock’s value, something you would expect. Amid the cybersecurity sector’s expansion, caution is warranted regarding OKTA, which has shown gains so far in 2023 while dipping more than 30% in the past twelve months.

Again, remember that I’m not disparaging OKTA or the other two stocks, and I’m not telling you to “avoid them like the plague” or anything akin to that. I’m simply trying to make the case that although the tech rally on Wall Street has been massive and justifiably so, the tech sector (as with all sectors) is not immune to the fact that some simply aren’t as good as the major players. Perhaps it isn’t wise to look at how well AI and technology are doing and start buying stocks willy-nilly. Keep a watchful eye.

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

Stock Hotlist: Top Picks to Watch Now

Editorial Staff

August 20, 2023

Picking the wrong stocks can decimate your portfolio.

They’re pure portfolio poison.

But the right stocks…

If you pick the right stocks, you could find yourself jumping for joy on top of an enormous pile of cash.

With over 4000 tickers to choose from, finding the right at the right time can prove to be nearly impossible…

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

That’s why we’ve done the legwork for you.

We sort through thousands of stock ideas and whittle them down to a few top choices primed for solid price action in the coming days, weeks, and months.

This week, we’ve narrowed it down to three stocks that could be getting significant attention in the near future.

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

NVR (NVR)

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. Considering his stellar performance, investors may want to take a page out of Buffett’s playbook and consider striking up a position in NVR.

On Monday, Berkshire Hathaway disclosed a new investment in the leading home builder. The investment was disclosed in a regulatory filing that detailed Berkshire’s U.S.-listed stock holdings, which comprise most of its $353.4 billion equity portfolio, as of June 30.

The Q2 stock purchase was made during a down period for homebuilders as rising interest and mortgage rates slowed demand. But Berkshire said those effects have been partially offset by new construction activity resulting from low inventory of existing homes for sale, an environment that could benefit homebuilders. Berkshire said that as of June 30, it owned about 11,112 NVR shares worth $70.6 million.

Despite recent challenges, NVR has a strategic edge for long-term growth. The company’s mature market focus and careful lot acquisition approach form a robust base for resilience and expansion. By sourcing finished lots through Lot Purchase Agreements (LPAs), NVR mitigates land ownership risks and development costs. This not only reduces market vulnerabilities but also enhances inventory turnover, bolstering returns. Beyond its established lot acquisition strategy, NVR is exploring alternatives, including joint ventures and direct land development, to capitalize on opportunities.

Perhaps Berkshire’s new stake is a bet that interest rates will fall and the home-buying frenzy will resume. The pros on Wall Street give NVR a median price target of $6160, implying around 10% upside over the coming months.

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

Enbridge (ENB)

The spotlight has turned toward prominent Canadian energy transportation firm Enbridge due to its perceived undervaluation, evidenced by a 13.68% dip over the past year against a consensus price target that indicates plenty of room for growth.

Enbridge holds a significant position as a blue-chip dividend stock, boasting a substantial 7.2% yield. Notably, Enbridge is dedicated to delivering value to its shareholders, having accumulated savings of $1.2 billion since 2017. With a BBB+ credit rating, the company assures stability within the dynamic energy sector. Moreover, Enbridge’s historical resilience and strategic approach to debt utilization for capital investments contribute to its overall stability. The company’s strategic emphasis on natural gas aligns well with the evolving energy landscape, making it a potentially promising avenue for investors seeking to enhance their investment foundation.

Enbridge’s distinction among oil stocks stems from its expansive North American pipeline network. While recent stock fluctuations have occurred, the company’s fundamental role in energy infrastructure, coupled with a moderate buy consensus, hints at an appealing 18% upside potential for investors considering this opportunity.

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

General Motors (GM)

Amidst the challenges faced by the auto industry, astute investors might find hidden, long-term gems among cheap stocks. General Motors boasts a portfolio of iconic car brands, ranging from Chevrolet to Cadillac. However, macroeconomic headwinds and the rising momentum of electric vehicles (EVs) have somewhat dimmed the company’s appeal.

Yet, GM could prove to be a surprise contender in the EV race. With a goal to offer exclusively EVs by 2035, it has emerged as the second-largest EV provider in the US. Although the company carries significant debts, its growth ambitions and strong free cash flow position provide hope for a positive outcome.

GM also presents a contrarian play within the automaker landscape. While many investors anticipate a global economic slowdown that might deter consumers from big purchases like new cars, there are contrasting views suggesting a softer-than-expected landing. Such an outcome could uplift auto stocks, including GM, presenting an opportunity for discerning investors.

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

Three Stocks to Sell ASAP

Editorial Staff

August 19, 2023

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

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

They’re pure portfolio poison.

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

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

I’m going to run down the list and give you a chance to learn the names of three companies I think everyone should own instead.

But first, if you own any or all of these “toxic stocks,” sell them today…

Big Lots (BIG)

With a sprawling inventory ranging from toys and clothing to household essentials and even groceries, Big Lots has etched its presence across more than 1,400 locations.

However, the tides haven’t been in Big Lots’ favor in the year 2023. With an inflationary breeze blowing, one might expect the company to thrive, as value-conscious individuals typically seek refuge in discount havens.

Yet, the path has been strewn with hurdles for Big Lots. Rather than basking in prosperity, the company grappled with augmented costs, the looming specter of higher interest rates, and the vexing entanglements of supply chain issues. As the landscape shifted, even the customary refuge of tax refunds took a hit, courtesy of the 2022 tax year, curtailing the spending vigor of patrons within the halls of Big Lots stores.

Dividend investors were also disappointed as the company reacted to these pressures by suspending its 30-cent-per-share dividend.

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

Fisker (FSR)

In the competitive electric vehicle (EV) industry, survival is tough for startups. Although Fisker has begun delivering its EVs, it’s just the beginning, and challenges lie ahead. The EV market is crowded, with many established players.

While Fisker reported record revenue from Ocean SUV deliveries, it reduced its production target to 20,000-23,000 vehicles from 32,000-36,000. Q2 deliveries were only 11 EVs, generating $825,000 in revenue. Operating expenses reached $128 million. Capital expenses were $91.3 million. The stock is now at $5.86, down 14% this year from $10 in August 2022.

Though Fisker has started production, its long-term outlook is uncertain. The recent termination of a stock offering adds to concerns. While it might have cash to continue for a year, the bigger picture doesn’t look promising. Consider selling FSR stock before it falls further.

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

TELUS Corp. (TU)

Telus Corp. is one stock to steer clear of post-earnings. The Canadian company experienced a drastic 60% decline in its profit and made a swift decision to slash 6,000 jobs. This workforce reduction includes 4,000 positions at its Vancouver headquarters and 2,000 more across its international operations, including the U.S. The announcement followed Telus’ report of a 60% year-over-year drop in Q2 net income, which settled at $196 million.

Adding to the unfavorable picture, the net income of 14 cents per share fell short of analysts’ projections of 22 cents per share. Despite a 13% increase in revenue from $4.40 billion to $4.95 billion compared to the previous year, the company’s profitability remained challenged. Telus had already revised down its annual 2023 guidance in July before the Q2 release due to demand pressures and the need for cost-cutting measures. The revised forecast now anticipates revenue growth of 9.5% to 11.5% for the year, down from the earlier estimate of 11% to 14%.

With TU stock experiencing a 23% decline over the past 12 months and a 3% decrease over a five-year span, it’s evident that this is a stock best avoided following its Q2 earnings report.

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

Don’t Miss Out on These Overlooked AI Stocks

Editorial Staff

August 13, 2023

When looking at the tech market and AI in particular, some huge names stand out, and for a good reason. I’m talking, of course, about companies like Nvidia (NVDA), Microsoft (MSFT), Tesla (TSLA), Alphabet (GOOGL), and Meta Platforms (META), just to name a few.

Those big names that have led the tech rally in 2023 so far are great stocks to have in your portfolio and offer attractive potential returns. However, there are a few we may have overlooked.

The stocks I’ll cover today show a history of increasingly strong earnings reports that beat analysts’ forecasts and year-over-year growth in crucial areas such as revenue and EPS (earnings per share).

If we look past what’s most popular, we’ll discover other AI stocks that can bring us enormous profits. Such stocks present opportunities we do NOT want to pass by us…

Arista Networks Inc (ANET)

Arista Networks (ANET) is a compelling AI stock choice, offering advanced cloud networking solutions to internet companies, cloud service providers, and enterprise data centers. With its high-performance data center switches optimized for AI workloads, ANET caters to the industry’s evolving demands. ANET’s recent guidance, backed by notable clients like Microsoft (MSFT) and Meta Platforms (META), reflects increasing demand for its 7800 series switches tailored for AI tasks. Analysts project that ANET will hold a potential $35 billion market share by 2025, underscoring Arista’s growth prospects in the AI sector and cementing its status as a promising investment.

Surrounded by bullish sentiment, ANET is up year-to-date by 44.34%, has a positive 20/200 day SMA (simple moving average), a positive ROE (return on equity), and positive TTM (trailing twelve-month) momentum and asset growth. For its Q2 2023 earnings report, ANET exceeded analysts’ EPS and revenue projections by 9.83% and 5.90%, respectively. At the same time, it showed year-over-year revenue growth (+38.70%), net income (+64.46%), EPS (+64.89%), and net profit margin (+18.61%). For the current quarter, ANET is projected to report $1.4 billion in sales at $1.47 per share, with a 3-5 year EPS growth rate of 23.8%. With a 10-day average volume of 4.74 million shares, ANET has a median price target of $200, with a high of $225 and a low of $154; this represents a potential 28.5% jump in pricing.

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

Relx PLC (RELX)

Relx PLC (RELX) presents an enticing opportunity for investors seeking exposure to the AI sector. As a global provider of information and analytics to professional and business clients, RELX has strategically integrated AI and ML (machine learning) into its legal, risk, and science divisions. Notably, the recent acquisition of Aistemos, a company specializing in AI-driven patent classification, affirms RELX’s commitment to innovation. The case can be made that RELX’s growth surge in the first half of 2023 indicates a genuine upward trend. RELX plans to soon launch its transformative “Lexis+” product, enhanced by generative AI capabilities. Combining its established success with pioneering AI initiatives positions RELX as an attractive AI player.

RELX CEO Erik Engstrom said at its last earnings call, “RELX delivered strong revenue and profit growth in the first half of 2023. The improving long-term growth trajectory continues to be driven by the ongoing

shift in the business mix towards higher growth analytics and decision tools that deliver enhanced value to our customers across market segments. By embracing artificial intelligence technologies for well over a decade, we have been able to develop and deploy these analytics and decision tools across the company, and we believe that our ability to leverage AI as it evolves will continue to be an important driver of our business going forward.”

RELX is up year-to-date by 17.75%, has a 0.91 beta score, a positive SMA, positive momentum growth, and a projected 3-5 year EPS growth rate of 5.8%. During its last earnings report, RELX also displayed year-over-year revenue growth (+13.35%), net income (+14.85%), EPS (+15%), and net profit margin (+1.36%). RELX has an annual dividend yield of 2.15%, with a quarterly payout of 18 cents ($0.72/year) per share and a 58.40% payout ratio. With a modest 10-day average volume of approximately 636 thousand shares, RELX has an average price target of $37.90, with a high of $38.80 and a low of $37; this indicates as much as a 20% potential price upside.

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

Baidu Inc (BIDU)

Indeed, the biggest of the names on this list is China-based Baidu Inc. (BIDU), which is a standout due to its leadership in China’s internet search sector, diversified businesses, including AI and cloud, and a significant stake in iQIYI Inc. BIDU’s recent launch of “Ernie Bot,” a large language model AI product, and its $145 million AI-focused venture fund emphasize its commitment to innovation. Analysts highlight BIDU’s ongoing integration of AI features, like chat interactions and AI-generated search results, within its search engine, solidifying its position as the biggest AI name not located in the United States.

BIDU is up by 20.57% year-to-date, has a positive SMA and momentum growth, a PEG (price/earnings to growth) ratio of 1.22x, and a 0.71 beta score. For its last earnings report, it surpassed analysts’ estimates on revenue and EPS by 25.86% and 3.82%, respectively; BIDU also reported year-over-year revenue growth (+9.62%), net income (+758.19%), EPS (+652.78%), and net profit margin (+701.29%). With a 10-day average volume of 1.84 million shares, BIDU has an average price target of $178.60, with a high of $228.83 and a low of $108.47, representing a potential 66% jump from its current trading price.

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

Stock Hotlist: Top Picks to Watch Now

Editorial Staff

August 13, 2023

Picking the wrong stocks can decimate your portfolio.

They’re pure portfolio poison.

But the right stocks…

If you pick the right stocks, you could find yourself jumping for joy on top of an enormous pile of cash.

With over 4000 tickers to choose from, finding the right at the right time can prove to be nearly impossible…

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

That’s why we’ve done the legwork for you.

We sort through thousands of stock ideas and whittle them down to a few top choices that are primed for solid price action in the coming days, weeks, and months.

This week, we’ve narrowed it down to three stocks that could be getting significant attention in the near future.

Meta Platforms (META)

Meta seems to have rediscovered its momentum, which bodes well for investors. Following a challenging 2022, the parent company of Facebook and Instagram has witnessed its stock price surge by 145% this year. The company is steering away from the metaverse, adopting cost-cutting measures, and emphasizing its focus on artificial intelligence (AI). In the wake of the impact of high interest rates, META stock is now indicating a robust return to growth, positioning it as one of the potential stocks to make investors millionaires.

Furthermore, the social media powerhouse has recently released financial results revitalizing confidence in the company and its shares. After the Q2 earnings report, META stock soared by 8%, fueled by earnings per share of $2.98, exceeding the projected $2.91 estimated by analysts. The company generated $32 billion in revenue, surpassing consensus predictions of $31.12 billion. This growth is attributed to a rebound in digital advertising across its social media platforms. Q2 revenue experienced an 11% surge from the previous year, marking the first time the company has reported double-digit growth in this domain since the conclusion of 2021. It might just be the right time to consider a purchase.

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

Enbridge (ENB)

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

Accenture (ACN)

Recent developments have spotlighted the synergistic collaboration between Accenture and Nvidia, culminating in the launch of AI Lighthouse, harnessing Nvidia’s formidable AI supercomputing expertise. It’s evident that Accenture is not merely riding the AI wave but is also setting a trailblazing pace for others in the industry.

Accenture has showcased remarkable performance in 2023, marking a surge of approximately 16% year-to-date. This growth trend is solidifying its position as a compelling machine learning stock, catching the attention of many astute investors.

The recent release of third-quarter fiscal 2023 earnings has only reinforced this positive outlook. A robust revenue of $16.56 billion, exhibiting a 2.5% year-on-year increase, in combination with a net income of $2.01 billion, reflecting a substantial 13% growth, underscoring the company’s operational prowess. Moreover, the diluted earnings per share (EPS) have significantly expanded by 13%, surpassing expectations by an impressive margin of 5%.

Accenture’s proactive endeavors in the realm of AI and machine learning have been garnering significant attention. For investors with a discerning eye on high-potential machine learning stocks, Accenture is effectively illuminating the path toward a transformative AI-driven future.

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

These High-Growth Travel Stocks Are Set to Soar

Editorial Staff

August 11, 2023

We all know that the pandemic hurt the travel industry. Well, travel expenditures in the United States rose by 0.9% last summer and showed a year-to-date increase of 4.7% through June 2023.

Air travel saw a significant 12% surge in demand during June, aligning with the peak summer travel period.

“The Travel & Tourism sector continues to recover at pace, demonstrating the resilience of the sector and the enduring desire to travel. By the end of the year, the sector’s contribution will be within touching distance of the 2019 peak. We expect 2024 to exceed 2019. Travel & Tourism will be a growth sector over the next ten years.”

That quote was not taken from a stock analyst but from Julia Simpson, the President and CEO of the WTTC (World Travel and Tourism Council). That’s really saying something. After reading it, I found three travel stocks with incredible momentum behind them…

Bluegreen Vacations Holding Corp (BVH)

First up is Bluegreen Vacations Holding Corp. (BVH), a vacation ownership company that manages resorts across diverse locations, promotes and sells vacation ownership interests (VOIs), and offers financing to qualified buyers. BVH also offers services for vacation clubs and homeowners’ associations. BVH demonstrates appealing metrics. Up by 47.04% year-to-date, BVH’s stock has a positive 20/200 day SMA (simple moving average), a positive ROE (return on equity), and positive TTM (trailing twelve-month) momentum and asset growth.

For Q2 2023, BVH reported impressive financials. Total revenue increased by 10.6% year-over-year to $260.62 million, and BVH’s VOI sales grew to $150.36 million, up by 4.2% from the prior year. BVH‘s net income and EPS also demonstrated substantial year-over-year growth, reaching $21.91 million (+23.22%) and $1.34 per share (+54.02%). For Q3 2023, BVH is projected to report $255 million in sales at $1.41 per share. BVH has an annual dividend yield of 2.18% and a quarterly payout of 20 cents ($0.80/year) per share. Per analyst forecasts, BVH has an average price target of $59, with a high of $66 and a low of $52; this indicates the potential for an almost 80% increase in pricing from its present position.

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

Airbnb Inc (ABNB)

Airbnb Inc. (ABNB) and its affiliates run a global platform connecting hosts and guests for accommodations and experiences. ABNB stock is up year-to-date by 59.06%, with a positive ROE and positive TTM asset growth and momentum growth. Significantly, ABNB boasts a free cash flow margin of 25.31%, surpassing the industry average by an impressive 505.8%. Its TTM net income margin of 0.64x also outperforms the industry average by 31.6%.

For its Q2 2023 earnings report, ABNB certainly impressed shareholders and Wall Street alike, as it exceeded analysts’ projections easily; it reported EPS of $0.95 per share vs. $0.79 per share as expected, a 21.13% margin win, while it beat revenue estimates by 2.69%. ABNB also reported year-over-year growth in revenue (+18.06%), net income (+71.50%), EPS (+75%), and net profit margin (+45.31%). ABNB‘s outlook

remains promising, with a consensus revenue projection of $9.84 billion for the fiscal year, while $3.2 billion at $1.99 per share is expected for Q3 2023’s earnings report in November.

ABNB has exceeded EPS estimates in the past four quarters, showcasing its commitment to shareholder value. With a 10-day average volume of 5.78 million shares, ABNB has a median price target of $142, with a high of $175 and a low of $75; this represents a potential 29% price leap.

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

Marcus Corp (MCS)

MCS Corp. (MCS), with its subsidiaries, operates movie theaters, hotels, and resorts throughout the United States. MCS is up year-to-date by 13.41%, and it boasts attractive metrics: It has a beta score of 0.82 and a forward EV/S (enterprise value to sales) ratio of 1.22x, which is notably 34.3% lower than the industry average, while the P/S (price to sales) ratio of 0.73x is below the industry average by 41.2%. MCS has a 1.71% annual dividend yield and a quarterly payout of 7 cents ($0.28/year) per share.

For its Q2 2023 earnings call, MCS reported strong financial results and surpassed analysts’ projections on EPS and revenue; it reported EPS of $0.35 per share vs. $0.24 per share as expected (a 45.83% surprise), and revenue of $207 million vs. $198.73 million as expected (a 4.17% win). MCS also reported year-over-year growth in revenue (+3.70%), net income (+50.29%), EPS (+50%), and net profit margin (+44.80%). For the current quarter, MCS is projected to report $190.5 million at $0.21 per share. Trading around the middle of its existing range, MCS’ average price target is $21.50, with a high of $23 and a low of $21, representing a potential 41% price jump from what it’s trading at currently.

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

Three Stocks To Buy Before The Leg Up

Editorial Staff

August 10, 2023

It’s hard to argue with the fact that right now, there is a pretty potent sense of uncertainty in the media regarding where exactly the U.S. economy stands. This isn’t necessarily a unique phenomenon, as there will always be bears where there are bulls, doves where there are hawks, and vice versa.

Regardless, 2023 has thus far been a fascinating year. Although the unveiling of ChatGPT undoubtedly led to an enormous (and ongoing) tech rally, it’s not solely generative AI’s prowess that compels.

We need to remind ourselves that we should always be eyeing the broader market; keeping our portfolios diversified is critical. Compelling profits can be found just about anywhere…

MGM Resorts International (MGM)

MGM Resorts International (MGM) is a well-known name that operates diverse recreation venues, including casinos and resorts in the United States and Macau. With three key segments—Las Vegas Strip Resorts, Regional Operations, and MGM China—MGM recently surpassed Q2 estimates with an EPS of $0.59 per share vs. $0.52 per share as expected, a 13.94% surprise, and revenue of $3.94 billion, exceeding analyst expectations by 3.75%. Benefiting from its increasingly thriving Vegas properties and China’s reopening, MGM is a prime summer stock, ripe for the picking (as I’ll illustrate a little more).

As it maintains affordable pricing, MGM has been trading around the middle of its existing 52-week range, is currently up year-to-date by 36.53%, and holds a P/S (price to sales) ratio of 1.18x with $1.34 billion in free cash flow. In addition to beating the analysts in Q2, MGM reported year-over-year growth in revenue (+20.76%) and operating income (+181.06%), and it is forecasted to report $3.8 billion in sales at $0.55 per share for the current quarter. MGM pays a dividend, albeit modestly, with an annual yield of 0.02% and a payout of $0.01 per year. With a 10-day average volume of 5.43 million shares, MGM has an average price target of $59.50, with a high of $69 and a low of $46, representing enough room for more than 50% upside potential. MGM has 12 buy ratings and six hold ratings.

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

Topgolf Callaway Brands Corp (MODG)

One stock fitting for this list, sticking out for its enormous upside potential, is Topgolf Callaway Brands (MODG). A global leader in the golf industry MODG creates equipment, clothing, and accessories. Operating globally, including the U.S., Europe, and Asia, MODG’s three primary segments are Topgolf, Golf Equipment, and Active Lifestyle. MODG recently reported Q2 results that exceeded Wall Street analysts estimates with an EPS of $0.39 per share vs. $0.34 per share as expected, a 14.68% surprise. As the summer season boosts recreational interest, MODG’s venues anticipate heightened demand, supported by ongoing venue expansions to tap into the sport’s growing popularity.

MODG’s stock is currently down year-to-date by 14.13% and trading near the bottom of its 52-week range, has a PEG (price/earnings to growth) ratio of 0.71x, a P/S ratio of 0.89x, and a P/B (price to book) ratio of 0.91x. MODG also reported year-over-year revenue growth of 12.23% in addition to outdoing analysts’ estimates. For the current quarter, it is projected to report $1.1 billion in sales at $0.29 per share. With a 10-day average volume of 2.95 million shares, MODG has a median price target of $28.50, with a high of $56 and a low of $16; this indicates the potential for a whopping 230% price jump from where it currently sits. MODG has 12 buy ratings and two hold ratings.

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

Delta Air Lines Inc (DAL)

Last but not least, Delta Air Lines (DAL) offers both passenger and cargo air travel on a vast scale. Divided into airline and refinery segments, DAL shines as a prominent name in American aviation, aligning well with 2023’s summer travel surge. Impressively, DAL’s Q2 results surpassed analysts’ predictions with an EPS of $5.03 per share and revenue of $14.18 billion, outdoing estimates by measures of $0.97 per share and $251.59 million, respectively. At the latest earnings report, 56 hedge funds displayed bullish sentiment towards DAL, up from 51 in the previous quarter. Among them, GMT Capital holds a substantial position in DAL’s stock, holding over 6.2 million shares valued at $217 million.

Currently up by 37.02% year-to-date, DAL comes with a healthy 0.57x PEG ratio, a positive 20/200 day SMA (simple moving average), a P/S ratio of 0.53x, with a TTM (trailing twelve-month) momentum growth measure of 35.96%, and an operating free cash flow of $6.9 billion. DAL not only pulled an upset on analysts in Q2 regarding earnings forecasts but reported year-over-year revenue growth (+12.69%), net income (+148.57%), EPS (+146.96%), and net profit margin (+120.49%). For the current quarter, DAL is projected to post $14.5 billion in sales at $2.37 per share. DAL has an annual dividend yield of 0.89% with a quarterly payout of 10 cents ($0.40/year) per share. With a 10-day average volume of 7.32 million shares, DAL has an average price target of $60, with a high of $77 and a low of $53; this represents a strong upside potential of over 71%. DAL has 20 buy ratings from analysts (and zero holds).

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

Stock Hotlist: Top Picks to Watch Now

Editorial Staff

August 6, 2023

Picking the wrong stocks can decimate your portfolio.

They’re pure portfolio poison.

But the right stocks…

If you pick the right stocks, you could find yourself jumping for joy on top of an enormous pile of cash.

With over 4000 tickers to choose from, finding the right at the right time can prove to be nearly impossible…

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

That’s why we’ve done the legwork for you.

We sort through thousands of stock ideas and whittle them down to a few top choices primed for solid price action in the coming days, weeks, and months.

This week, we’ve narrowed it down to three stocks that could be getting significant attention in the near future.

Roblox (RBLX)

As a leader in the burgeoning metaverse industry, Roblox has garnered a substantial following, evident in its impressive first-quarter revenues of $655.3 million, marking a 22% year-over-year growth. However, this growth didn’t come without a price, as the company reported a net loss of $268.3 million for the same period.

Creating a platform for creators comes with a significant cost, as evidenced by Roblox’s financial performance. A crucial metric for the company is bookings, representing virtual currency utilized for on-platform purchases. In Q1, bookings recorded a noteworthy 23% growth.

The company’s platform empowers users to create a staggering 40 million games, each functioning as its own virtual world. Notably, Roblox also boasts numerous virtual reality (VR) games, including popular titles showcased on TheGamer platform. Roblox holds a prominent position in the flourishing metaverse sector, showcasing remarkable growth in revenues and user engagement. However, the expenses tied to its creator platform underscore the challenges and investments associated with staying at the forefront of this exciting digital frontier.

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

General Motors (GM)

Amidst the challenges in the auto industry, astute investors might find hidden, long-term gems among cheap stocks. General Motors boasts a portfolio of iconic car brands, ranging from Chevrolet to Cadillac. However, macroeconomic headwinds and the rising momentum of electric vehicles (EVs) have somewhat dimmed the company’s appeal.

Yet, GM could prove to be a surprise contender in the EV race. With a goal to offer EVs exclusively by 2035, it has emerged as the second-largest EV provider in the US. Although the company carries significant debts, its growth ambitions and strong free cash flow position provide hope for a positive outcome.

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

MercadoLibre (MELI)

Lastly, we’re diving into the phenomenal success story of MercadoLibre, the undisputed titan in South America’s online retail arena. With a presence in 18 different countries and dominating market share in places like Brazil, this e-commerce powerhouse has outpaced even the likes of Amazon in the region.

Over the past decade, MercadoLibre’s growth trajectory has been nothing short of awe-inspiring. And guess what? The pandemic-led tailwinds only fueled the fire, accelerating e-commerce adoption and solidifying its position as a major player in South America’s bustling digital economy.

Let’s talk numbers, shall we? Brace yourself for astonishing records! With a jaw-dropping 5-year average revenue growth of over 56% and forward revenue estimates surpassing 30%, MercadoLibre is on a rocket ride. Their operating cash flow growth is soaring over 30% year-over-year, a staggering 4,500% higher than the sector median.

Just when you thought it couldn’t get any better, MercadoLibre’s recent second-quarter performance wowed us all. With GAAP earnings per share of $5.16, they crushed estimates by a whopping 88 cents. And their revenue soared to $3.42 billion, a solid 32.0% year-over-year increase, outpacing forecasts by a cool $150 million. Oh, and let’s not forget their Total Payment Volume, which reached an impressive $42.1 billion, marking a phenomenal 96.6% year-over-year growth on an FX-neutral basis.

MercadoLibre is a force to be reckoned with, and its growth story is far from over. So, if you’re on the lookout for a powerhouse stock with immense potential, look no further.

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

The Sky is the Limit With These Profitable Airline Stocks

Editorial Staff

August 3, 2023

Weren’t those lockdowns a real pain? Yeah, tell me about it. We all felt cabin fever and the subsequent urge to travel as soon as possible. Unsurprisingly, the travel industry is now doing incredibly well.

Airline stocks can be a clever play in this market. As the economy recovers from the pandemic, the airline industry is witnessing a surge in ticket sales that shows a return to pre-pandemic levels.

This is excellent news for investors because here lies a great opportunity to profit from the profitable. Let’s keep it interesting and stray from big names like Delta (DAL) and American Airlines (AAL).

Strong momentum, fair valuations, solid stock metrics, and growth potential are all factors that lead to handsome returns, and I’ve found a few airline stocks that prove it…

Copa Holdings SA (CPA)

First up to consider is Copa Holdings (CPA), a Panama-based mid-sized carrier that has outperformed the S&P 500 with a return of over double in the first half of the fiscal year. Despite being less recognizable, CPA offers over 300 daily flights to about 80 destinations in more than 30 countries across the Americas. As the Latin American region’s recovery gains momentum after the pandemic and Brazil’s economy shows strong growth, CPA is well-positioned to benefit from the uptrend. Don’t overlook this one.

CPA’s stock is up year-to-date by 36.80%; it comes with a positive 20/200 day SMA (simple moving average), a positive ROE (return on equity), positive TTM (trailing twelve-month) asset growth, and a solid 0.87 beta score. At its last earnings call, CPA beat analysts’ projections on EPS and revenue, most notably reporting EPS of $3.99 per share vs. $3.25 per share as expected, a 22.63% surprise. At the same time, CPA reported year-over-year growth in crucial areas like revenue (+51.73%), net income (+515.02%), and net profit margin (+304.91%). CPA has a 2.88% annual dividend yield and a quarterly payout of 82 cents ($3.28/year) per share. With a 10-day average volume of roughly 883 thousand shares, CPA has an average price target of $150, with a high of $165 and a low of $124; this indicates a potential 45% upside from its current pricing. CPA, popular among analysts, has 13 buy ratings and one hold rating.

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

Alaska Air Group Inc (ALK)

Alaska Air Group (ALK) is a mid-sized carrier focusing on the Western U.S. and Canada but rapidly expanding into new markets, including the Caribbean and more direct-route flights. ALK stands out for its reliability and customer satisfaction, receiving the Global Airline of the Year award for 2022. Moreover, ALK boasts a solid financial position with very low debt, making it one of the best-performing stocks on the list. ALK is attractive for its solid track record and significant growth prospects.

ALK is up 11.57% year-to-date and carries a positive SMA, a positive ROE, and positive TTM asset growth, not to mention a very strong PEG (price/earnings to growth) ratio of 0.68x. Most recently, ALK surpassed the EPS and revenue projections of analysts by margins of 10.95% and 2.53%, respectively; it notably reported $3.00 per share vs. the $2.70 per share predicted. It also showed year-over-year revenue growth (+6.79%), net income (+72.66%), EPS (+70.64%), and net profit margin (+61.76%). With a 10-day average volume of 2.83 million shares, ALK has a median price target of $64, with a high of $75 and a low of $58; this represents the potential for a price jump of over 56%. ALK has 13 buy ratings and two hold ratings.

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

Ryanair Holdings (RYAAY)

Ryanair Holdings (RYAAY) is an Ireland-based passenger airline that dominates short-haul travel across the U.K. and continental Europe. With a sizable fleet of approximately 500, RYAAY operates over 3,000 daily flights, connecting more than 220 airports. RYAAY’s unique model prioritizes high-frequency “shuttle” flights, providing affordable travel options that attract many passengers. This strategy has proven successful, as demonstrated by RYAAY’s busiest month ever in June this year, with an impressive load factor of 95%. The nearly full capacity of their flights indicates robust current demand trends and showcases RYAAY’s ability to capitalize on its high-frequency flight plan.

Currently up year-to-date by 32.57%, RYAAY has a positive SMA, ROE, TTM asset growth, and solid 0.55x PEG ratio. RYAAY’s last earnings report was a great victory for the airline, as it absolutely crushed analysts’ projections on both EPS and revenue, but particularly on EPS; analysts projected $0.48 per share, and RYAAY came in with a stunning $3.22 per share, beating their forecasts by a whopping 571.58% margin. During this same period, RYAAY showed year-over-year growth in critical areas like revenue (+40.28%), net income (+253.55%), EPS (+262.50%), and net profit margin (+152.01%). With a 10-day average trading volume of roughly 716 thousand shares, RYAAY has an average price target of $150.09, with a high of $180.49 and a low of $132.77; this suggests a potential price leap of more than 82% from where it currently sits. As RYAAY files under the radar, it has 21 buy ratings (and zero holds).

Hidden Tech Sector Gems

Editorial Staff

August 3, 2023

CNBC’s Jim Cramer recently assigned the handle “The Magnificent Seven” to what is considered the biggest group of names in tech today: Amazon (AMZN), Alphabet (GOOGL), Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), Tesla (TSLA), and Nvidia (NVDA). Their success is hard to miss.

So, is there still space left in the tech arena to generate returns? Yes! In fact, there are some firms you could categorize as growth stocks without forgetting their solid reputations in the tech industry.

The absolute best tech exposure to take advantage of now is where there’s upside potential. These stocks are undervalued and therefore come with bargain pricing we can’t ignore…

Gen Digital Inc (GEN)

Gen Digital (GEN) presents an attractive opportunity for tech investors as it’s heavily considered undervalued. GEN has achieved a strong presence with over 500 million users across 150 countries. GEN’s key software, including Norton, Avast, and Avira, enhances cybersecurity and online privacy. Recent reports show that bookings recently surpassed $1 billion. As investors catch on to GEN’s unjustified drop, shares have already rallied over 25% since the low in May 2023; here’s a great “buy the dip” opportunity. Let’s not forget, either, that GEN comes with a dividend.

Down year-to-date by 10.22%, GEN’s stock carries a 0.73 beta, positive TTM (trailing twelve-month) asset growth of 129.68%, a positive ROE (return on equity), and an ideal PEG (price/earnings to growth) ratio of 0.55x. At its last earnings call, GEN surpassed analysts’ projections on EPS and revenue by 5.18% and 0.74%, respectively, and reported year-over-year growth in critical areas like revenue (+32.26%), net income (+662.50%), EPS (+610%), and net profit margin (+476.49%). GEN has an annual dividend yield of 2.60% and a quarterly payout of 13 cents ($0.52/year) per share. With a 10-day average volume of 2.93 million shares, GEN has a median price target of $22.50, with a high of $27 and a low of $21; this indicates a potential price jump of more than 40%. GEN has 4 buy ratings and 2 hold ratings.

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

Alteryx Inc (AYX)

Despite recent fluctuations, Alteryx Inc. (AYX) boasts significant revenue growth. With over 8,000 global customers and a strong, active community of over 300,000 members, Alteryx is gaining market share as a big-data software provider. AYX’s Q2 guidance may have been modest, but the full-year outlook suggests more revenue growth. While some might be concerned about net losses, AYX‘s revenue growth and ability to minimize losses make it an attractive option in the current market. AYX‘s recent underperformance compared to its peers makes it an intriguing opportunity for those looking for a tech bargain.

AYX’s stock is down year-to-date by 19.74%, is currently trading near the bottom of its existing 52-week range, yet shows a volatility-safe beta score of 0.54, and has positive TTM asset growth of 25.24%. Most recently, AYX exceeded analysts’ EPS expectations by 27.29% and reported year-over-year growth in revenue (+26.05%), net income (+15.66%), EPS (+18.59%), and net profit margin (+33.09%). For the current fiscal quarter, AYX is projected to report $182 million in sales, with a 3-5 year EPS growth rate of 98.4%. With a 10-day average trading volume of 1.29 million shares, AYX has an average price target of $65, with a

high of $95 and a low of $55; this represents a potential price upside of more than 133% from its present spot. AYX has 13 buy ratings and 5 hold ratings.

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

Epam Systems Inc (EPAM)

EPAM Systems Inc. (EPAM) is an attractive pick from the list for a few reasons. EPAM has a broad range of services catering to over 280 Forbes Global 2,000 customers and partnerships with major companies like GOOGL and MSFT, the company exhibits strong potential. Despite the year-to-date decline, EPAM shares have surged over 80% in the past five years. EPAM maintains double-digit profit margins and shows consistent revenue growth. With a history of reaching an all-time high of over $700, investors could be rewarded long-term if the stock returns to such levels. EPAM’s recent $500 million stock buyback authorization also further supports potential gains.

EPAM stock is currently down year-to-date by 27.70% and is trading near the very bottom of its existing price range. However, EPAM boasts a positive ROE, 16.07% TTM asset growth, and $577 million in free cash flow. During its last earnings call, EPAM reported EPS of $2.47 per share vs. $2.34 per share as predicted by analysts, a 5.36% win. During the same time, EPAM reported year-over-year growth in key areas like revenue (+3.36%), net income (+14.01%), EPS (+13.82%), and net profit margin (+10.31%). For the current fiscal quarter, EPAM is projected to report $1.2 billion in sales at $1.24 per share, with a 3-5 year EPS growth rate of 24.8%. With a 10-day average volume of roughly 480 thousand shares, EPAM has a median price target of $251, with a high of $300 and a low of $215; this allows room for a potential 26% jump from its current price. EPAM has 17 buy ratings and 3 hold ratings.

BlackBerry Ltd (BB)

SentinelOne Inc (S)

Okta Inc (OKTA)

Enbridge (ENB)

General Motors (GM)

Big Lots (BIG)

Fisker (FSR)

TELUS Corp. (TU)

Arista Networks Inc (ANET)

Relx PLC (RELX)

Meta Platforms (META)

Enbridge (ENB)

Accenture (ACN)

Bluegreen Vacations Holding Corp (BVH)

Airbnb Inc (ABNB)

Marcus Corp (MCS)

MGM Resorts International (MGM)

Topgolf Callaway Brands Corp (MODG)

Delta Air Lines Inc (DAL)

Roblox (RBLX)

General Motors (GM)

MercadoLibre (MELI)

Copa Holdings SA (CPA)

Alaska Air Group Inc (ALK)

Ryanair Holdings (RYAAY)

Gen Digital Inc (GEN)

Alteryx Inc (AYX)

Epam Systems Inc (EPAM)

Popular Posts

My Favorites