Stock investments – Face OVL http://faceovl.com/ Thu, 26 May 2022 13:52:51 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://faceovl.com/wp-content/uploads/2021/07/icon-2021-07-08T143259.742-150x150.png Stock investments – Face OVL http://faceovl.com/ 32 32 3 Dividend Stocks to Beat Inflation and Earn Growing Dividends https://faceovl.com/3-dividend-stocks-to-beat-inflation-and-earn-growing-dividends/ Thu, 26 May 2022 13:28:00 +0000 https://faceovl.com/3-dividend-stocks-to-beat-inflation-and-earn-growing-dividends/ Major markets may have posted a relief rally yesterday after showing that policymakers were eyeing the possibility of a recovery later this year. But while the outlook has calmed the nerves of short-term investors, there are still many macroeconomic headwinds on the horizon, such as high and growing risks of a recession in the United […]]]>

Major markets may have posted a relief rally yesterday after showing that policymakers were eyeing the possibility of a recovery later this year. But while the outlook has calmed the nerves of short-term investors, there are still many macroeconomic headwinds on the horizon, such as high and growing risks of a recession in the United States.

In these challenging times, building a quality, income-generating portfolio can dramatically improve anyone’s investment performance. This can be done by purchase stocks of companies with strong balance sheets, a wide economic moat and a history of rewarding investors with growing dividend payouts.

These companies typically provide products and services that are so essential to consumers that one cannot imagine everyday life without them. Moreover, it makes these companies resilient in the face of market crashes, wars, depressions, geopolitical upheavals, and asset bubbles.

With that theme in mind, below we’ve shortlisted three stocks that income investors might consider buying now, especially when high. Each stock not only offers strong capital gains potential, but has also provided substantial payout increases each year to counter the impact of rising prices.

1. Bank of Nova Scotia

  • Dividend yield: 4.91%
  • Quarterly payment: $0.78
  • Market cap: $76.6 billion

The Bank of Nova Scotia (NYSE:), Canada’s third largest lender, currently offers one of the highest yields among the country’s six largest banks. It could be a great addition to any long-term income portfolio. Shares of BNS closed Wednesday at $65.36.

The Toronto-based financial institution has the most diversified portfolio among Canadian banks, with a substantial portion of its revenue coming from overseas operations, primarily in Central America and the Caribbean.

Chief executive Brian Porter spent much of his eight-year tenure revamping the international unit by selling small or underperforming operations and doubling down on bigger, more promising markets.

Yesterday the bank said its Canadian banking profits rose 27% year over year, fueled by robust growth in mortgage and commercial loans, lower provisions for credit losses and substantial income from fees.

The lender also has an excellent dividend history. The Bank’s earnings growth has translated into increased dividends for 43 of the past 45 years, one of the most consistent records of dividend growth among large Canadian corporations. The bank has been paying dividends since 1833.

2. Home Depot

  • Dividend yield: 2.64%
  • Quarterly payment: $1.9
  • Market cap: $76.6 billion

The Home Depot (NYSE:) is one of those retailers you can rely on to deliver consistent dividend payouts. The home improvement giant, in recent years, has invested heavily to prepare for the onslaught of e-commerce and changing consumer behavior. Its stock closed Wednesday at $293.57 per share.

HD weekly chart

Additionally, HD recently improved its full-year earnings outlook after a jump in same-store sales in the first quarter showed demand for home improvement supplies persists, even as mortgage rates rise.

In the call with analysts, Chief Financial Officer Richard McPhail said the appreciation in home values ​​helped boost consumer spending despite inflation.

The Atlanta-based HD is also a reliable dividend payer. Over the past five years, its quarterly dividend has increased by an average of 22% per year. With an annual dividend yield of around 2.6%, the company pays out $1.9 per quarter. And, with a solid 50% payout ratio, there’s a lot more room for growth.

3.McDonald’s

  • Dividend yield: 2.26%
  • Quarterly payment: $1.38
  • Market cap: $279 billion

Fast food giant McDonald’s (NYSE:) has a strong track record of consistently rewarding investors. Since it began paying dividends in 1976, the company increased its payment each year. MCD closed yesterday at $244.01.

MCD weekly chart

McDonald’s has many of the qualities investors look for in a high-income stock: the company has a global competitive advantage over its rivals, a strong recurring revenue model, and an excellent track record of earning its investors.

After struggling during the pandemic, when closures hurt its restaurant business, the business quickly regained sales momentum. In April, the company announced better-than-expected results, fueled by price increases in the United States and strong growth in international sales.

MCD pays a quarterly dividend of $1.38 per share. This translates to an annual dividend yield of 2.26% at the current share price. With a manageable payout ratio of around 70%, the company is well positioned to continue to generate dividend growth.

***

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AllianceBernstein (NYSE: AB) AllianceBernstein’s stock rating downgraded by Zacks Investment Research https://faceovl.com/alliancebernstein-nyse-ab-alliancebernsteins-stock-rating-downgraded-by-zacks-investment-research/ Tue, 24 May 2022 21:20:01 +0000 https://faceovl.com/alliancebernstein-nyse-ab-alliancebernsteins-stock-rating-downgraded-by-zacks-investment-research/ AllianceBernstein (NYSE: AB – Get a Rating) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note released Tuesday to investors, Zacks.com reports. According to Zacks, “ALLIANCE CAP MANAGEMENT LP provides diversified investment management services primarily to pension funds, endowments, foreign financial institutions and individual investors. “ Separately, […]]]>

AllianceBernstein (NYSE: AB – Get a Rating) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note released Tuesday to investors, Zacks.com reports.

According to Zacks, “ALLIANCE CAP MANAGEMENT LP provides diversified investment management services primarily to pension funds, endowments, foreign financial institutions and individual investors. “

Separately, StockNews.com kicked off coverage on AllianceBernstein in a Thursday, March 31 report. They issued a “holding” rating on the stock.

Shares of AB traded down $0.10 in midday trading on Tuesday, hitting $39.63. The stock recorded trading volume of 391,269 shares, compared to an average trading volume of 446,509 shares. The company’s fifty-day moving average is $43.18 and its 200-day moving average is $46.81. The company has a market capitalization of $3.95 billion, a price-earnings ratio of 10.06 and a beta of 1.40. AllianceBernstein has a 1 year minimum of $35.20 and a 1 year maximum of $57.54.

AllianceBernstein (NYSE: AB – Get Rating) last reported quarterly earnings data on Friday, April 29. The asset manager reported earnings per share of $0.90 for the quarter, beating consensus analyst estimates of $0.84 by $0.06. AllianceBernstein had a return on equity of 24.87% and a net margin of 8.61%. During the same period last year, the company achieved EPS of $0.81. Analysts expect AllianceBernstein to post earnings per share of 3.43 for the current year.

Separately, insider Mark R. Manley sold 5,000 shares of AllianceBernstein in a trade that took place on Wednesday, May 11. The stock was sold at an average price of $38.98, for a total transaction of $194,900.00. Following the transaction, the insider now owns 44,334 shares of the company, valued at $1,728,139.32. The sale was disclosed in a document filed with the SEC, accessible via this link. Insiders of the company own 2.70% of the shares of the company.

Hedge funds and other institutional investors have recently changed their holdings in the company. MV Capital Management Inc. increased its stake in AllianceBernstein by 20.0% during the third quarter. MV Capital Management Inc. now owns 1,200 shares of the asset manager worth $59,000 after buying an additional 200 shares in the last quarter. Allianz Asset Management GmbH increased its stake in AllianceBernstein by 0.6% during the 4th quarter. Allianz Asset Management GmbH now owns 34,544 shares in the asset manager worth $1,687,000 after buying 222 more shares last quarter. Flagship Harbor Advisors LLC increased its stake in AllianceBernstein by 2.1% during the 4th quarter. Flagship Harbor Advisors LLC now owns 11,172 shares of the asset manager worth $546,000 after buying 225 additional shares in the last quarter. Claraphi Advisory Network LLC increased its stake in AllianceBernstein by 4.6% in the 3rd quarter. Claraphi Advisory Network LLC now owns 5,207 shares of the asset manager worth $258,000 after buying 228 additional shares in the last quarter. Finally, Spire Wealth Management increased its stake in AllianceBernstein by 16.4% in the 4th quarter. Spire Wealth Management now owns 1,630 shares of the asset manager worth $80,000 after buying an additional 230 shares last quarter. 13.01% of the shares are held by institutional investors and hedge funds.

About AllianceBernstein (Get an assessment)

AllianceBernstein Holding LP is a public investment manager. The firm also provides research services to its clients. It provides its services to investment companies, pension and profit-sharing schemes, banks and savings institutions, trusts, estates, government agencies, charities, individuals, corporations and other business entities.

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Energy Stocks Rise as Stock Market Crashes: Should You Buy These 2 Stocks? https://faceovl.com/energy-stocks-rise-as-stock-market-crashes-should-you-buy-these-2-stocks/ Mon, 23 May 2022 04:07:00 +0000 https://faceovl.com/energy-stocks-rise-as-stock-market-crashes-should-you-buy-these-2-stocks/ Overall, stock market performance has been pretty abysmal over the past two months. However, one industry largely outperformed the others: energy. Since early 2022, sector monitoring S&P 500 Energy the index is up an incredible 47% compared to the index S&P500down nearly 18%. It’s rare to see this kind of outperformance in an industry, and […]]]>

Overall, stock market performance has been pretty abysmal over the past two months. However, one industry largely outperformed the others: energy. Since early 2022, sector monitoring S&P 500 Energy the index is up an incredible 47% compared to the index S&P500down nearly 18%. It’s rare to see this kind of outperformance in an industry, and especially remarkable in a sector that has performed so poorly over the past decade. Even with its recent gains, the S&P 500 Energy Index is up less than 30% over the past 10 years.

Given all of this, some investors may be wondering if energy stocks still have the potential to outperform from here. While the longevity of the fossil fuel industry is questionable, oil will remain a key energy source for at least the next decade. here’s why ExxonMobil (XOM 0.79%) and western oil (OXY -1.09%) benefit from this request.

Image source: Getty Images.

ExxonMobil

ExxonMobil is the largest US-based oil and gas company by market capitalization. Like most oil and gas giants, it operates largely in the upstream and downstream segments of the petroleum industry – both exploration and extraction of fossil fuels and the manufacture of various chemicals. and petroleum-based with them.

As economies around the world have reopened, demand for oil and gas has increased, but for a host of reasons supplies have remained tight. As a result, ExxonMobil’s financial results have been fantastic. It posted first-quarter sales of $87.7 billion, up 52% ​​year-over-year. Despite producing fewer barrels per day in oil equivalent, ExxonMobil saw a 76% increase in profits from its upstream operations. Overall, earnings were up 101% over the prior year period, generating nearly $14 billion in cash flow.

As management brought the company’s debt ratio back into its target range of 20% to 25%, it decided to use this cash flow to repurchase shares. With approval to repurchase up to $30 billion in stock through 2023, ExxonMobil will reduce its number of outstanding shares by approximately 8%. At the current share price, its dividend yields around 4%.

However, ExxonMobil trades at around 15 times earnings, which is at the high end of its valuation range over the past 15 years. Investors should therefore be careful before opening a new position in this security, as it could return to a level at the lower end of its range.

Oil rig workers working on a drill.

Image source: Getty Images.

western oil

Occidental focuses on the exploration and extraction of oil and natural gas, and also operates in the midstream segment, managing the pipelines between drilling sites and processing facilities. The company is also one of Warren Buffett’s largest holdings (2.8% of his investment portfolio, the seventh largest holding), as Berkshire Hathaway owns about 15% of Occidental’s stock and has warrants to buy even more, which would bring its stake to 22%.

So what does Buffett see in this case? First of all, Occidental Petroleum is incredibly profitable right now. Management has stressed that it needs West Texas Intermediate crude prices to stay at $40 a barrel to maintain its quarterly dividend, not its profitability. With crude averaging $94.29 per barrel in the first quarter, Occidental went from a net loss of $0.36 per share in the first quarter of 2021 to a profit of $4.65 per share in the first quarter of 2022. Overall, it produced $3.3 billion in free cash flow, which it immediately channeled into paying down debt.

Oil rig on the ocean.

Image source: Getty Images.

Management has set a goal to reduce Occidental’s debt to less than $20 billion and is devoting a large portion of its cash flow to that end. Over the past year, the company has reduced its outstanding debt from $35.5 billion to $25.8 billion and, given current oil market developments, will likely be able to reach its objective by the end of the year.

After cleaning up the balance sheet, management will likely increase the dividend (which at current prices yields 0.8%, quite low for an oil and gas company) and buy back shares. These moves will reward shareholders over the long term, but what about the stock itself?

Despite many ups and downs, Occidental is still down nearly 40% from the all-time high it reached in 2010. Additionally, valuing Occidental is difficult, as it has spent several years in a unprofitable state as the market fluctuates around it. For this reason, I plan to avoid Occidental stocks.

Shares of ExxonMobil and Occidental could outperform the market over the next few months or even next year. However, I doubt either one can beat the market over a three to five year period.

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Buy the drop or sell the “rip”? : What’s next as the S&P 500 tests bear market territory? https://faceovl.com/buy-the-drop-or-sell-the-rip-whats-next-as-the-sp-500-tests-bear-market-territory/ Sat, 21 May 2022 13:09:00 +0000 https://faceovl.com/buy-the-drop-or-sell-the-rip-whats-next-as-the-sp-500-tests-bear-market-territory/ Investors, already grappling with a declining stock market and fearing the U.S. economy is heading into a recession, are now turning their attention to the consumer. On the one hand, consumer discretionary stocks are among the hardest hit. Market fixation on peak inflation and how many times the Federal Reserve might raise interest rates is […]]]>

Investors, already grappling with a declining stock market and fearing the U.S. economy is heading into a recession, are now turning their attention to the consumer. On the one hand, consumer discretionary stocks are among the hardest hit.

Market fixation on peak inflation and how many times the Federal Reserve might raise interest rates is giving way to recession fears, according to Paul Christopher, head of global market strategy at the Wells Fargo Investment Institute. .

The change was seen over the past week as stocks tumbled amid investor concerns over consumer spending trends, Christopher said in a phone interview.

“The market is finally starting to realistically price a recession,” he said.

So far, consumer sentiment has proven to be as elusive as market entries and exits.

The crisis has been “very difficult to bear,” said JJ Kinahan, chief market strategist for online brokerage firm Tastytrade Inc., in a telephone interview. “It’s like coming in and boxing day after day, getting your ass kicked, but you haven’t been knocked out yet. So you have to go back and box again.

Stocks have yet to experience a “big bottom” and, with the market vulnerable to a bearish rally, sell any “rips,” advised investment strategists at BofA Global Research, in a May 19 note.

On Friday, the S&P 500 SPX index,
+0.01%
traded in bearish territory but avoided closing there as it made a gain in a mixed close for US stocks. Still, the S&P 500 and other major benchmarks suffered another week of losses, with the Dow Jones Industrial Average DJIA,
+0.03%
booking an eighth straight weekly drop for its longest losing streak since April 1932.

In a May 18 note, the Wells Fargo Investment Institute said it was adjusting its stock forecast and price targets for a “likely” recession, moving the utilities sector from “neutral” to “most unfavorable”. Utilities are considered defensive, unlike the consumer discretionary sector, which Wells Fargo downgraded from “unfavorable” to “neutral,” according to the rating.

Consumer Discretionary SP500.25,
-1.53%
was the worst-performing sector in the S&P 500 on Friday, closing lower and booking a seventh straight week of declines for its longest losing streak since July 1996, according to Dow Jones Market Data.

Lily: Retail equity woes hit consumer ETFs as S&P 500 edges closer to bear market territory

Here are Wells Fargo’s equity sector preferences, as reported in its May 18 report.

WELLS FARGO INVESTMENT INSTITUTE

“sticky” inflation

“Inflation hits purchasing power,” Christopher said. “It’s so sticky,” he said, “that it’s going to be with us for a while, even after the Fed raises rates.”

Lack of profit in profit results reported by Walmart Inc. WMT,
+0.11%
and Target Corp. TGT,
+1.26%
Last week, investors worried that high inflation was weighing on consumer spending, while eroding corporate profit margins. Shares of Walmart plunged more than 19% last week and Target fell about 29%.

Lily: Walmart says consumers are opting for private label for products like dairy and bacon

“Unfortunately, gas prices rebounded to a new high in May and with runaway inflation in most categories, people are spending more money on fewer items,” said Beth Ann Bovino, chief U.S. economist for S&P Global Ratings, in emailed comments in May. 17.

When S&P adjusted U.S. retail sales in April for inflation, “a scary split has emerged over the past year that has only widened in April,” Bovino said.

S&P GLOBAL

“Purchasing power has been squeezed, especially for low-income households,” she said. “While the savings accumulated during the pandemic gave households a cushion to absorb these higher prices, these buffers eventually run out.”

Although the labor market remains strong, new jobless claims in the United States in the week ending May 14 hit a four-month high. Christopher said the Wells Fargo Investment Institute thinks a “mild recession” could begin later this year.

They are not alone.

“We continue to expect that the tightening of financial conditions triggered by Fed policy will likely lead to a recession by the end of 2023,” wrote Deutsche Bank analysts led by the chief economist. American Matthew Luzzetti, in a research note dated May 20. weeks, financial conditions in the United States have tightened sharply.

WELLS FARGO INVESTMENT INSTITUTE

This week, investors will get fresh economic data on inflation, consumer spending and disposable income. The U.S. economic calendar also includes readings on consumer sentiment, U.S. manufacturing and services, initial jobless claims, and minutes from the Federal Open Market Committee’s latest policy meeting.

Nervous investors

While investors are jittery, stock market lows tend to form after “panic selling,” and the recent drop so far has been “orderly,” according to Tastytrade’s Kinahan.

The S&P 500 is down about 18% this year through Friday, while the Dow Jones is down 14% and the tech-heavy Nasdaq Composite is down about 27%, according to FactSet.

Lily: The S&P 500 narrowly avoids a bear market. How long do they last once they arrive?

From the perspective of bull investors, bear markets involve “wild, scary, and dystopian price action,” BofA investment strategists wrote in their note. “The tape is already showing heavy damage”, with an “inflationary shock” largely integrated into the “rate shock”.

Once the “recession shock” is discounted, “lows will be set,” the strategists wrote, citing a bullish outlook.

Both Kinahan and Wells Fargo’s Christopher cautioned against attempting to time the market, with Kinahan describing any attempt to bottom out as a “fool’s run.”

Christopher said investors might consider putting small amounts of money to work over time as the market falls to new lows and buying quality stocks to minimize losses. “If you’re a long-term investor, you don’t want to take money out of the market,” he said.

With rising recession risks, Wells Fargo Investment Institute cut its year-end target price range for the S&P 500 to 4,200-4,400 from 4,500 to 4,700, according to its report. That’s above the index’s close on Friday at 3,901.

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Why Wayfair stock fell 13.3% this week https://faceovl.com/why-wayfair-stock-fell-13-3-this-week/ Thu, 19 May 2022 21:38:27 +0000 https://faceovl.com/why-wayfair-stock-fell-13-3-this-week/ What happened Shares of Wayfair (W 4.45%) fell 13.3% this week, according to S&P Global Market Intelligence. The homeware and furniture-focused online retailer did not have any business and earnings updates this week; however, other retailers like Target and walmart commented poorly on the general retail environment, prompting investors to sell Wayfair shares. At one […]]]>

What happened

Shares of Wayfair (W 4.45%) fell 13.3% this week, according to S&P Global Market Intelligence. The homeware and furniture-focused online retailer did not have any business and earnings updates this week; however, other retailers like Target and walmart commented poorly on the general retail environment, prompting investors to sell Wayfair shares. At one point, Wayfair stock was down 17.2% this week.

So what

Earlier this week, Target and Walmart released their latest results. On its conference call, Target executives said from March that they had seen a huge slowdown in demand for home products as the company exceeded last year’s stimulus payments and consumers had started to spend more on travel items like luggage, which had increased by 50% year over year. . Management also said freight and transportation costs are skyrocketing for its operations, with spending expected to increase by $1 billion in 2022 from what it forecast at the start of the year.

Image source: Getty Images.

Walmart had a less bearish report, but still said some customers were forgoing discretionary purchases due to high gas and food prices. Combined with the run-in of COVID-19 stimulus checks, that makes sense looking at the 2021 numbers.

This is not good news for a company like Wayfair. It not only operates in a business that is seeing deteriorating demand (homewares and furniture), but operates as an online retailer, meaning it relies heavily on the country’s transportation networks. With shipping costs skyrocketing and demand falling, Wayfair will likely struggle to grow revenue and cash flow in the coming year. In fact, it already showed those struggles last quarter, with revenue down 14% year-over-year and operating cash flow negative $226 million.

Now what

Wayfair shares have been hammered over the past year. The stock is down 75% year-to-date and 85% last year as investors lament the company emerging from the COVID-19 period when everyone wanted its products.

It’s also not great that the company can’t seem to turn a profit while its revenue is dwindling. Yes, this is compared to a tough time when the pandemic was in full swing and people were buying a lot of household items, but it’s no surprise that investors are nervous about these developments.

However, if you believe in Wayfair’s business for the long term (meaning it can consistently generate healthy cash flow margins), now might be the time to buy some stock. The stock trades at a discounted enterprise value-to-sales (EV/S) ratio of 0.5, which is well below the market average of around 2.5. This type of valuation can be a setup for potentially high returns for investors buying for the long term.

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Investors are jumping on the bandwagon with these 2 Nasdaq stocks https://faceovl.com/investors-are-jumping-on-the-bandwagon-with-these-2-nasdaq-stocks/ Tue, 17 May 2022 18:01:06 +0000 https://faceovl.com/investors-are-jumping-on-the-bandwagon-with-these-2-nasdaq-stocks/ The stock market has been looking for signs of stability lately, and on Tuesday major market benchmarks once again demonstrated their resilience. Taking a more positive view of the ability of the world’s largest companies to overcome the challenges they face, market participants have driven stock prices higher. At 1:45 p.m. ET, the Nasdaq Compound […]]]>

The stock market has been looking for signs of stability lately, and on Tuesday major market benchmarks once again demonstrated their resilience. Taking a more positive view of the ability of the world’s largest companies to overcome the challenges they face, market participants have driven stock prices higher. At 1:45 p.m. ET, the Nasdaq Compound (^IXIC 2.17%) increased by more than 2%.

The main votes of confidence allowed to increase the actions of some exceptional actions. Both World Paramount (PARA 13.92%) and Advanced micro-systems (AMD 8.61%) rose on Tuesday, and below we will examine the factors that caused these upward movements.

Paramount gets Buffett’s seal of approval

Paramount Global stock soared nearly 14% on Tuesday afternoon. The media giant was among the stocks that Warren Buffett Berkshire Hathaway (BRK.A 1.45%) (BRK.B 1.54%) added to its portfolio during the first quarter.

Image source: Getty Images.

Paramount was also among the largest purchases made by Berkshire Hathaway during the quarter. The latest disclosure report filed with the U.S. Securities and Exchange Commission found that the conglomerate purchased nearly 69 million Paramount shares, establishing a position equal to about 11% of outstanding shares.

Like many of Buffett’s favorite investments, Paramount stocks currently enjoy extremely attractive valuations. Even though analysts expect Paramount’s earnings to be lower in 2022 than they were in 2021, the stock is trading at about 12 times its trailing net earnings. Additionally, some expect that despite growing competition in streaming services, Paramount’s ability to continue to generate compelling new content should give it an edge over some other streaming companies.

Supreme shareholders have long been stuck in a lull. Now, however, there’s more reason to believe that the worst of times for the media company may finally be behind it.

AMD looks chippy

Meanwhile, AMD shares rose nearly 8.5% on Tuesday afternoon. The semiconductor maker has received favorable comments from prominent stock analysts, boosting shareholder sentiment about the company’s prospects.

Piper Sandler analysts raised their rating on AMD stock from neutral to overweight, and boosted their target price sharply from $98 per share to $140 per share. Piper Sandler previously expected a softer PC market as the effects of the pandemic began to slow would weigh on AMD, but analysts admitted the chipmaker’s long-term outlook still looked strong. . Additionally, with the acquisition of Xilinx now complete, AMD has even more room for growth.

Indeed, this decision corresponds to the good news from AMD recently. The chipmaker’s first-quarter financial results released in early May included substantial organic sales gains that received an additional boost from the acquisition of Xilinx. In particular, demand for cloud computing has helped boost enterprise sales, and the company has raised its outlook for the rest of the year.

Many investors thought semiconductor strength might have been artificially inflated at the start of the pandemic. However, demand remained strong, helping to keep AMD’s business in good shape.

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Radius Global Infrastructure (NASDAQ:RADI) Stock Rating Downgraded by Zacks Investment Research https://faceovl.com/radius-global-infrastructure-nasdaqradi-stock-rating-downgraded-by-zacks-investment-research/ Sat, 14 May 2022 09:43:36 +0000 https://faceovl.com/radius-global-infrastructure-nasdaqradi-stock-rating-downgraded-by-zacks-investment-research/ Radius Global Infrastructure (NASDAQ:RADI – Get an Assessment) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note released Saturday, Zacks.com reports. According to Zacks, “Radius Global Infrastructure Inc., through its subsidiary AP WIP Investments LLC, owns a growing and diverse portfolio of primarily triple net lease […]]]>

Radius Global Infrastructure (NASDAQ:RADI – Get an Assessment) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note released Saturday, Zacks.com reports.

According to Zacks, “Radius Global Infrastructure Inc., through its subsidiary AP WIP Investments LLC, owns a growing and diverse portfolio of primarily triple net lease streams from wireless carriers and tower companies for properties. Radius Global Infrastructure Inc. is based in NEW YORK. “

Several other research analysts have also recently commented on the stock. Credit Suisse Group cut its price target on shares of Radius Global Infrastructure from $24.00 to $23.00 and set an “outperform” rating on the stock in a Wednesday, March 2 research note. Raymond James raised his price target on shares of Radius Global Infrastructure from $18.00 to $22.00 in a research note on Tuesday.

Radius Global Infrastructure stock opened at $15.50 on Friday. The company has a 50-day moving average price of $13.66 and a 200-day moving average price of $14.76. The company has a market capitalization of $1.61 billion, a PE ratio of -19.37 and a beta of 1.88. The company has a current ratio of 6.42, a quick ratio of 6.42 and a debt ratio of 1.66. Radius Global Infrastructure has a 12-month low of $11.70 and a 12-month high of $18.79.

Radius Global Infrastructure (NASDAQ:RADI – Get Rating) last released its results on Monday, May 9. The company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.03). Radius Global Infrastructure posted a negative return on equity of 8.90% and a negative net margin of 55.12%. In the same quarter a year earlier, the company posted ($0.66) earnings per share. As a group, sell-side analysts expect Radius Global Infrastructure to post earnings per share of 0.06 for the current fiscal year.

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Davidson Kempner Capital Management LP increased its position in Radius Global Infrastructure by 7.3% during the 4th quarter. Davidson Kempner Capital Management LP now owns 9,128,655 shares of the company valued at $146,880,000 after purchasing an additional 622,125 shares during the period. Westwood Holdings Group Inc. increased its position in Radius Global Infrastructure by 13.4% during the 1st quarter. Westwood Holdings Group Inc. now owns 5,737,046 shares of the company valued at $81,925,000 after purchasing an additional 679,272 shares during the period. BlackRock Inc. increased its position in Radius Global Infrastructure by 21.4% during the 1st quarter. BlackRock Inc. now owns 5,580,603 shares of the company valued at $79,693,000 after purchasing an additional 982,825 shares during the period. Vanguard Group Inc. increased its position in Radius Global Infrastructure by 23.5% during the 1st quarter. Vanguard Group Inc. now owns 3,919,633 shares of the company valued at $55,973,000 after purchasing an additional 746,043 shares during the period. Finally, Conversant Capital LLC purchased a new position in Radius Global Infrastructure during Q4, valued at approximately $57,657,000. 90.95% of the shares are currently held by institutional investors and hedge funds.

About Radius Global Infrastructure (Get an evaluation)

Radius Global Infrastructure, Inc, together with its subsidiaries, engages in the acquisition and leasing of real estate interests and contractual rights in telecommunications. The company rents wireless towers or antennas and other communication infrastructure. As of December 31, 2021, it held interests in 8,506 leases located at 8,186 communication sites located in the United States and 19 other countries.

Further reading

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Investors face tough stock and bond markets https://faceovl.com/investors-face-tough-stock-and-bond-markets/ Thu, 12 May 2022 17:49:43 +0000 https://faceovl.com/investors-face-tough-stock-and-bond-markets/ David T. Mayes The current environment is proving to be one of the most challenging for investors in recent memory. After years of strong stock market gains, including an impressive rebound from the pandemic-driven sell-off. In 2021, equities posted strong gains fueled by the reopening of the global economy and low interest rates that triggered […]]]>

David T. Mayes

The current environment is proving to be one of the most challenging for investors in recent memory. After years of strong stock market gains, including an impressive rebound from the pandemic-driven sell-off. In 2021, equities posted strong gains fueled by the reopening of the global economy and low interest rates that triggered strong corporate earnings. By the end of 2021, the S&P 500 had more than doubled from its March 2020 low.

Unfortunately, the tailwinds that drove stocks higher have shifted. The low inflation environment that persisted for more than a decade gave way to price increases not seen in 40 years. Inflation has been exacerbated by both supply chain issues related to COVID-19 and increased demand for goods and services triggered by the government’s response to the pandemic. More money in consumers’ pockets would eventually lead to increased demand for goods that were now in short supply due to the pandemic. When demand exceeds supply, prices must rise. Add to that a spike in oil prices triggered by Russia’s invasion of Ukraine and you have a picture of inflation that the Federal Reserve cannot ignore.

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Stocks rebound as yields and oil prices fall https://faceovl.com/stocks-rebound-as-yields-and-oil-prices-fall/ Wed, 11 May 2022 01:27:00 +0000 https://faceovl.com/stocks-rebound-as-yields-and-oil-prices-fall/ Gold and Oil Futures Fall as Bitcoin Rises Dollar gains ground in volatile session NEW YORK, May 10 (Reuters) – Wall Street closed higher on Tuesday as investors awaited inflation data and worried about the outlook for slowing economic growth and the impact of policy tightening. U.S. Treasuries rallied, with the yield on the benchmark […]]]>
  • Gold and Oil Futures Fall as Bitcoin Rises
  • Dollar gains ground in volatile session

NEW YORK, May 10 (Reuters) – Wall Street closed higher on Tuesday as investors awaited inflation data and worried about the outlook for slowing economic growth and the impact of policy tightening.

U.S. Treasuries rallied, with the yield on the benchmark 10-year note dropping from a more than three-year high to below 3% as investors reassessed the outlook for inflation ahead of Wednesday’s data release. US consumer price index (CPI).

U.S. crude oil futures fell below $100 a barrel to their lowest level in two weeks as the demand outlook clouded by coronavirus lockdowns in China and growing recession concerns, while a strong dollar made crude more expensive for buyers using other currencies.

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Markets were volatile across all asset classes amid soaring inflation and fears that monetary tightening aimed at slowing price increases could lead to slower global economic growth.

Last week, central banks in the United States, Britain and Australia raised interest rates and investors braced for further tightening as policymakers battle soaring inflation.

After turning red a few hours earlier in the session, the S&P closed slightly while the Nasdaq gained nearly 1%. Technology, the market’s biggest growth sector, led the gains as investors reacted to falling bond yields and rebounded from a selloff on Monday. Read more

“If we’ve seen the worst of the rate of change in long-term interest rates, that could allow equities to do a bit better,” said Sameer Samana, senior global markets strategist at Wells Fargo Investment Institute in St. Louis.

The Dow Jones Industrial Average (.DJI) fell 84.96 points, or 0.26%, to 32,160.74, the S&P 500 (.SPX) gained 9.81 points, or 0.25%, to 4,001.05 and the Nasdaq Composite (.IXIC) added 114.42 points, or 0.98%, to 11,737.67.

The MSCI Global Stock Gauge (.MIWD00000PUS) gained 0.08%.

Matthew Miskin, co-head of investment strategy at John Hancock Investment Management, was reassured by policymakers, including Cleveland Federal Reserve Bank President Loretta Mester. While Mester said unemployment could rise and growth could slow, she added that the tightening should not cause a “sustained slowdown”. Read more

“They’ve been so hawkish that the market wants to sniff it out at any little move,” Miskin said. “When it comes to feelings, a lot of people are looking for surrender. The dots aren’t fully connected for that yet.”

The U.S. dollar was choppy on Tuesday but held near a two-decade high ahead of much-anticipated inflation data that could provide some insight into the Fed’s policy trajectory. Read more

The dollar index, which measures the greenback against a basket of other major currencies, last rose 0.193% as the euro fell 0.24% to $1.053.

“It’s quiet ahead of inflation data tomorrow, so that allows for a break for risky assets,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington, D.C. with trader positioning that “worked in favor of risky assets”. “

The Japanese yen weakened 0.10% against the greenback at 130.40 to the dollar, while the pound last traded at $1.2314, down 0.14% on the day.

Oil prices fell in volatile trade as the market balanced looming European Union sanctions on Russian oil with demand concerns over China’s coronavirus lockdowns, a strong dollar and growing recession risks .

U.S. crude recently fell 3.35% to $99.64 a barrel and Brent to $102.26, down 3.47% on the day.

Earlier data showed China’s export growth slowed to its weakest level in nearly two years as the central bank pledged to step up support for a slowing economy. Read more

Benchmark 10-year notes were last up 22/32 to 2.9947%, down from 3.079% on Monday night.

“It’s a recalibration of risk. There’s no other catalyst except that it’s gone too far, too fast,” said George Goncalves, head of US macro strategy. at MUFG Securities, referring to yields. “Maybe we’re going to have a period of inflation that doesn’t just go up unabated.”

Spot gold fell 1.0% to $1,835.86 an ounce as investors watched the dollar rise and await Wednesday’s inflation data.

Elsewhere, bitcoin rose 3.7% after falling to its lowest level since July 2021. Tuesday’s gain recouped some losses from its 11.8% plunge on Monday. Read more

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Reporting by Sinéad Carew; Additional reporting by Herbert Lash and Chuck Mikolajczak in New York, Elizabeth Howcroft in London; Editing by Alexander Smith, Nick Macfie and Lisa Shumaker

Our standards: The Thomson Reuters Trust Principles.

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Why did Zscaler stock drop 16% in April? https://faceovl.com/why-did-zscaler-stock-drop-16-in-april/ Sun, 08 May 2022 23:42:45 +0000 https://faceovl.com/why-did-zscaler-stock-drop-16-in-april/ What happened Shares of Z-scale (ZS -9.18%) fell 16% in April as the stock was another victim of the market correction. Rising interest rates and an economic slowdown are pushing investors to withdraw capital from riskier assets, and unprofitable growth stocks are feeling the pinch, even as companies continue to perform well. So what There […]]]>

What happened

Shares of Z-scale (ZS -9.18%) fell 16% in April as the stock was another victim of the market correction. Rising interest rates and an economic slowdown are pushing investors to withdraw capital from riskier assets, and unprofitable growth stocks are feeling the pinch, even as companies continue to perform well.

So what

There was no major news on the cybersecurity stock last month, but shareholders were still criticized. Instead, a clear correlation is seen when Zscaler performance is compared to the Vanguard Growth ETF and industry peers such as Cloudy and Crowd.

ZS, VUG, CRWD, NET Total Yield Level Data by YCharts

Zscaler has become much cheaper relative to sales and earnings over time. The company reported net losses, which actually increased year over year last quarter, but its free cash flow is positive. This is important because it shows that Zscaler doesn’t need to spend money to achieve its phenomenal growth rate. It also makes it clear that the company’s management is willingly foregoing profits, instead prioritizing expansion through spending on hiring, marketing, and product development. This is exactly what usually excites growth investors.

Hooded hacker on a keyboard with a shaded face sitting in front of a world map.

Image source: Getty Images

Now what

Despite its downfall, Zscaler still isn’t cheap. Its price-to-sales ratio of 27.9 is nearly five times that of Alphabet, much more stable and still showing above-average growth. The stock’s forward P/E ratio is still close to 200. This is not the most meaningful metric, as Zscaler is clearly failing to maximize profits. This still shows that a lot of optimism is embedded in the stock despite its recent declines.

That’s not bad for a company that’s growing around 60%, but that kind of valuation still requires a leap of faith from investors. Fewer and fewer people are willing to take that kind of leap these days. Economic uncertainty causes investors to act with fear, and rising interest rates suddenly make lower-risk assets, like bonds, more attractive.

Zscaler is not the type of investment with a lot of momentum right now. He can clearly take a beating with no news to cause a fall. If the company announces poor results or a lackluster business outlook in its May 26 quarterly earnings call, it could get even uglier.

None of this really dictates long-term performance, so investors who are optimistic about Zscaler’s prospects should be excited about the stock’s swoon. The company is a leader in a high-growth industry with lasting catalysts for years to come. However, shareholders are expected to experience more volatility in the coming quarters.

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