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NXPI

Strengths: Robust market share in the automotive sector and diversified product offerings.Weaknesses: Exposure to cyclical semiconductor industry and geopolitical risks.Opportunities: Expansion in IoT and mobile markets, and strategic partnerships.Threats: Intense competition and evolving cybersecurity threats.On February 22, 2024, NXP Semiconductors NV (NASDAQ:NXPI) filed its annual 10-K report, revealing a slight increase in revenue from $13,205 million in 2022 to $13,276 million in 2023. This marginal growth underscores the company's resilience in a highly competitive and cyclical semiconductor industry. NXP Semiconductors, with its comprehensive portfolio and deep application knowledge, continues to be a formidable player in the automotive, industrial & IoT, mobile, and communication infrastructure markets. The company's strategic acquisitions, such as Freescale Semiconductor, have bolstered its market share, particularly in the automotive sector, where it is a leading supplier of microcontrollers and analog chips. As we delve into the SWOT analysis, we will explore how NXPI leverages its strengths, addresses its weaknesses, capitalizes on opportunities, and mitigates threats in the dynamic semiconductor landscape.Warning! GuruFocus has detected 6 Warning Sign with NXPI.Decoding NXP Semiconductors NV (NXPI): A Strategic SWOT InsightStrengthsMarket Leadership in Automotive: NXP Semiconductors NV (NASDAQ:NXPI) has cemented its position as a leader in the automotive semiconductor market. The acquisition of Freescale Semiconductor has expanded its product range and reinforced its market presence. NXPI's microcontrollers and analog chips are integral to automotive clusters, powertrains, infotainment systems, and radars, which are critical for modern vehicles. The company's deep application knowledge and intellectual property portfolio enable it to innovate and meet the evolving needs of the automotive industry. This strength is not only a testament to NXPI's strategic vision but also provides a stable revenue stream and a platform for future growth.Story continuesDiversified Product Portfolio: NXPI's diversified product offerings across various end markets, including industrial & IoT, mobile, and communication infrastructure, reduce its dependence on any single market segment. The company's expertise in cryptography-security, RF, mixed A/D, power management, and digital signal processing allows it to cater to a broad customer base. This diversification mitigates risks associated with market volatility and positions NXPI as a comprehensive solutions provider in the semiconductor space.WeaknessesCyclical Nature of Semiconductor Industry: The semiconductor industry is known for its cyclicality, with alternating periods of high demand and oversupply. NXP Semiconductors NV (NASDAQ:NXPI) is not immune to these market dynamics, which can lead to fluctuations in revenue and profitability. While NXPI has managed to maintain a steady revenue stream, the inherent volatility of the industry poses a challenge to long-term financial planning and stability. The company must continue to innovate and manage production capacity efficiently to navigate these cycles effectively.Geopolitical Risks and Supply Chain Disruptions: NXPI's global operations expose it to various geopolitical risks, including trade disputes and regional instabilities, such as the Russia-Ukraine conflict. These issues can disrupt supply chains and affect the demand for NXPI's products. Additionally, the company's reliance on third-party outsourcing partners for production adds another layer of risk, as any adverse events affecting these partners could impact NXPI's ability to deliver products to its customers.OpportunitiesGrowth in IoT and Mobile Markets: The expanding Internet of Things (IoT) and mobile markets present significant growth opportunities for NXP Semiconductors NV (NASDAQ:NXPI). As devices become increasingly connected, the demand for NXPI's high-performance mixed-signal products is expected to rise. The company's expertise in security and connectivity positions it well to capitalize on this trend and drive revenue growth in these burgeoning sectors.Strategic Partnerships and Alliances: NXPI's ability to form strategic partnerships and joint ventures is a critical opportunity for expansion and innovation. Collaborating with other industry leaders can lead to the development of new technologies and products, opening up additional markets and strengthening NXPI's competitive edge. These alliances also provide avenues for sharing research and development costs, which can improve the company's financial efficiency.ThreatsIntense Competition: NXP Semiconductors NV (NASDAQ:NXPI) operates in a highly competitive industry, with numerous players vying for market share. Competitors such as Qualcomm Inc., Broadcom Inc., and Texas Instruments Inc. invest heavily in research and development, which can lead to rapid technological advancements and pricing pressures. NXPI must continuously innovate and differentiate its product offerings to maintain its market position and profitability.Cybersecurity Threats: As a technology company, NXPI faces increasing and evolving cybersecurity threats. A breach or significant cyberattack could compromise sensitive data, disrupt operations, and damage the company's reputation. NXPI's proactive approach to cybersecurity, including its certification to ISO 27001 and the establishment of a Security Operating Center (SOC), is crucial in mitigating these risks. However, the threat landscape is constantly changing, requiring ongoing vigilance and investment in security measures.In conclusion, NXP Semiconductors NV (NASDAQ:NXPI) exhibits a robust SWOT profile with strong market leadership, particularly in the automotive sector, and a diversified product portfolio. While the company must navigate the cyclical nature of the semiconductor industry and geopolitical risks, it is well-positioned to capitalize on growth opportunities in IoT and mobile markets through strategic partnerships. NXPI's ability to manage intense competition and cybersecurity threats will be pivotal in maintaining its market position and driving future success.This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.This article first appeared on GuruFocus.

GuruFocus.com

Decoding NXP Semiconductors NV (NXPI): A Strategic SWOT Insight

https://finance.yahoo.com/news/decoding-nxp-semiconductors-nv-nxpi-050454938.html

16f3a433-53dd-3052-8fdc-41db5bb9fa33

NXPI

NXP USA, Inc.EINDHOVEN, The Netherlands, March 07, 2024 (GLOBE NEWSWIRE) -- As part of its ongoing capital return program, NXP Semiconductors N.V. (NASDAQ: NXPI) today announced that its board of directors has approved the payment of an interim dividend. The actions are based on the continued and significant strength of the NXP capital structure, and the board’s confidence in the company’s ability to drive long-term growth and strong cash flow.The board of directors has approved the payment of an interim dividend of $1.014 per ordinary share for the first quarter of 2024. The interim dividend will be paid in cash on April 10, 2024 to shareholders of record as of March 21, 2024.Taxation – Cash Dividends Cash dividends will be subject to the deduction of Dutch dividend withholding tax at the rate of 15 percent, which may be reduced in certain circumstances. Non-Dutch resident shareholders, depending on their circumstances, may be entitled to a full or partial refund of Dutch dividend withholding tax. If you are uncertain as to the tax treatment of any dividends, consult your tax advisor.About NXP SemiconductorsNXP Semiconductors N.V. (NASDAQ: NXPI) brings together bright minds to create breakthrough technologies that make the connected world better, safer and more secure. As a world leader in secure connectivity solutions for embedded applications, NXP is pushing boundaries in the automotive, industrial & IoT, mobile, and communication infrastructure markets while delivering solutions that advance a more sustainable future. Built on more than 60 years of combined experience and expertise, the company has approximately 34,200 team members in more than 30 countries and posted revenue of $13.28 billion in 2023. Find out more at www.nxp.com.Forward-looking StatementsThis document includes forward-looking statements which include statements regarding NXP’s interim dividend and financial condition, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: market demand and semiconductor industry conditions; our ability to successfully introduce new technologies and products; the demand for the goods into which NXP’s products are incorporated; trade disputes between the U.S. and China, potential increase of barriers to international trade and resulting disruptions to NXP's established supply chains; the impact of government actions and regulations, including restrictions on the export of US-regulated products and technology; the ability to generate sufficient cash, raise sufficient capital or refinance corporate debt at or before maturity to meet both NXP's debt service and research and development and capital investment requirements; our ability to accurately estimate demand and match our production capacity accordingly or obtain supplies from third-party producers to meet demand; our access to production capacity from third-party outsourcing partners, and any events that might affect their business or NXP’s relationship with them; our ability to secure adequate and timely supply of equipment and materials from suppliers; our ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; our ability to form strategic partnerships and joint ventures and to successfully cooperate with our alliance partners; our ability to win competitive bid selection processes; our ability to develop products for use in customers’ equipment and products; the ability to successfully hire and retain key management and senior product engineers; the invasion of Ukraine by Russia and resulting regional instability, sanctions and any other retaliatory measures taken against Russia and the continued hostilities and the armed conflict in the Middle East, which could adversely impact the global supply chain, disrupt our operations or negatively impact the demand for our products in our primary end markets; and, the ability to maintain good relationships with NXP's suppliers. In case tax laws change, this could have an effect on our estimated effective tax rates. In addition, this document contains information concerning the semiconductor industry, our end markets and business generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, our end markets and business will develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov.Story continuesFor further information, please contact:Investors:Jeff [email protected]+1 408 518 5411Media:Paige Iven [email protected]+1 817 975 0602  NXP-Corp

GlobeNewswire

NXP Semiconductors Announces Quarterly Dividend

https://finance.yahoo.com/news/nxp-semiconductors-announces-quarterly-dividend-130000608.html

ef09acbc-e2e1-3bfb-ab45-2c57bcfa70fa

NXPI

The board of NXP Semiconductors N.V. (NASDAQ:NXPI) has announced that it will pay a dividend of $1.01 per share on the 10th of April. This means the annual payment is 1.6% of the current stock price, which is above the average for the industry. See our latest analysis for NXP Semiconductors NXP Semiconductors' Payment Has Solid Earnings CoverageImpressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. However, NXP Semiconductors' earnings easily cover the dividend. This means that most of its earnings are being retained to grow the business.Over the next year, EPS is forecast to expand by 33.7%. If the dividend continues on this path, the payout ratio could be 37% by next year, which we think can be pretty sustainable going forward.historic-dividendNXP Semiconductors Doesn't Have A Long Payment HistoryNXP Semiconductors' dividend has been pretty stable for a little while now, but we will continue to be cautious until it has been demonstrated for a few more years. The dividend has gone from an annual total of $1.00 in 2018 to the most recent total annual payment of $4.06. This works out to be a compound annual growth rate (CAGR) of approximately 26% a year over that time. NXP Semiconductors has been growing its dividend quite rapidly, which is exciting. However, the short payment history makes us question whether this performance will persist across a full market cycle.The Dividend Has Growth PotentialInvestors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that NXP Semiconductors has grown earnings per share at 10.0% per year over the past five years. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.We Really Like NXP Semiconductors' DividendOverall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. For example, we've picked out 3 warning signs for NXP Semiconductors that investors should know about before committing capital to this stock. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

NXP Semiconductors (NASDAQ:NXPI) Has Announced A Dividend Of $1.01

https://finance.yahoo.com/news/nxp-semiconductors-nasdaq-nxpi-announced-122956790.html

08ac1164-bdde-31c6-aa55-d74834d8e681

O

The big selling point for buying shares of Annaly Capital (NYSE: NLY) is the mortgage real estate investment trust's (mREIT) outsized 13.9% dividend yield. Don't buy into that; history suggests that rate isn't sustainable.Investors interested in good yields on REITs will be better off with Federal Realty (NYSE: FRT), Realty Income (NYSE: O), or Essex Property Trust (NYSE: ESS), all of which have increased their dividends annually for decades. Here's why these three unstoppable stocks are better buys.Annaly Capital: One chart to dissuade them allPardon the punny Lord of the Rings reference above, but it really does describe the situation. You only need one chart to see why most investors will be better off avoiding Annaly Capital and its giant dividend yield. The chart below shows that despite the yield being fairly lofty on an ongoing basis (the orange line), the dividend and stock price (purple and blue) have both been heading lower since around 2010. That's a terrible chart for any investor trying to find a reliable dividend-paying stock.NLY ChartNow add in the complexity of the mortgage REIT business, which can be impacted by interest rates, housing market dynamics, mortgage payment trends, and refinancing activity, among other things. There are just too many checks in the negative column for most average investors here. But there are plenty of other REITs you can buy with incredible dividend track records.1. Federal Realty is a Dividend KingAlthough Federal Realty's dividend yield is a fairly modest 4.3%, it stands head and shoulders above all other public REITs because it is the only Dividend King in the group. It has achieved this dividend success by focusing on a small, high-quality portfolio of strip malls and mixed-use assets. The story is location, location, location, as it operates in areas with average wealth and population size metrics that are higher than any of its strip mall peers. If dividend consistency is important to you, Federal Realty needs to be on your watch list if not in your portfolio.Story continues2. Realty Income calls itself "The Monthly Dividend Company"Realty Income pays dividends monthly and has increased its dividend annually for nearly three decades. The dividend yield is currently around 5.8%. The core of the REIT's portfolio is single-tenant net lease retail properties, though it also has some modest exposure to industrial assets and "other" (the other grouping includes vineyards and casinos). Net leases require the tenant to pay for most property-level operating costs. Although a property with just one tenant is high risk, across a large enough portfolio, the risk is fairly low -- Realty Income owns over 15,000 properties and is one of the largest net lease REITs you can buy. The REIT is so focused on returning dividends to investors that it trademarked the nickname "The Monthly Dividend Company." It's a sleep-well-at-night REIT.3. Essex has some risks but also a strong track recordEssex owns apartment buildings on the West Coast. That's a concentration risk, geographically speaking, as it ties the landlord's fortunes to technology-dependent regions. And yet, the dividend has been increased annually for nearly 30 years. Clearly, the bet on the West Coast has worked out well so far. The core of the business suggests that won't change, given that Essex is highly focused on owning modern, amenity-rich apartments. These tend to be in high demand regardless of what's going on in any given sector. Not every year is a good one, and 2024 is expected to see just flat financial performance, thanks to higher interest rates, among other things. But the 3.9% dividend yield here is actually near the highest levels of the past decade, suggesting the stock is historically cheap right now.Big yields don't always lead to big returnsAs you can see with Annaly over the past decade or so, a huge yield can lead dividend investors down a bad investment path. You'd be better off focusing on REITs that have proven they can perform well in good markets and bad, with that evidence coming from a steadily growing dividend. When you look for REITs like that, you'll find Federal Realty, Realty Income, and Essex Property Trust all stand tall.Should you invest $1,000 in Federal Realty Investment Trust right now?Before you buy stock in Federal Realty Investment Trust, consider this:The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Federal Realty Investment Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of February 20, 2024Reuben Brewer has positions in Federal Realty Investment Trust and Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy.Forget Annaly Capital; These Unstoppable Stocks Are Better Buys was originally published by The Motley Fool

Motley Fool

Forget Annaly Capital; These Unstoppable Stocks Are Better Buys

https://finance.yahoo.com/news/forget-annaly-capital-unstoppable-stocks-121200796.html

9856ece4-29fc-374d-99c7-b5f9821af663

O

In this article, we discuss 13 best environmental dividend stocks to invest in according to analysts. You can skip our detailed analysis of ESG investing and its prospects, and go directly to read 5 Best Environmental Dividend Stocks To Invest In According To Analysts. Sustainable investing, increasingly gaining traction among investors, represents a pivotal shift in financial markets towards aligning profit motives with environmental, social, and governance (ESG) considerations. A growing number of individuals are becoming attracted to ESG investments for a variety of reasons, ranging from ethical concerns to sound financial decision-making. As per research conducted by deVere Group, over 800 clients revealed that more than half (56%) of investors expressed their intentions to boost their investments in ESG funds in 2024.Despite the increasing popularity of ESG investing, the year 2023 did not fare well for such investment strategies. Investors persisted in withdrawing their investments from sustainable funds during the fourth quarter of 2023. U.S. sustainable funds experienced their initial year of outflows since records began over a decade ago, marking 2023 as their most challenging year to date, according to a report by Morningstar. In the fourth quarter alone, investors withdrew $5 billion from U.S. sustainable funds, contributing to a total outflow of $13 billion throughout the year. This trend was attributed to underperformance, ongoing political scrutiny in the US, and a challenging year for an iShares fund. Moreover, by the end of 2023, the total assets invested in sustainable funds reached $323 billion. This figure indicates a drop of approximately 12% from the previous record high recorded at the end of 2021. However, it also signifies an 18% increase from the lowest point observed in the third quarter of 2022. In contrast, assets within the broader U.S. funds market reached their peak at the end of 2021 but experienced a decline of 5% by the end of 2023.Story continuesThat said, analysts are optimistic about the potential of ESG investing in the foreseeable future. Based on a study conducted by Bloomberg Intelligence, global ESG assets are projected to surpass $53 trillion by 2025, constituting more than a third of the estimated total assets under management of $140.5 trillion. The convergence of factors including the pandemic and the green recovery initiatives in major economies such as the U.S., EU, and China is expected to demonstrate the efficacy of ESG in evaluating a fresh array of financial risks and leveraging capital markets.As discussed previously, there is a growing trend among investors towards ESG investing, primarily due to the reputation of these assets for delivering consistent returns. Contrary to concerns regarding potential conflicts between financial gains and ESG principles, a survey conducted by PwC revealed that nine out of ten asset managers believe that incorporating ESG criteria into their investment approach will enhance overall returns. Moreover, a majority of institutional investors, accounting for 60%, reported experiencing higher performance yields from ESG investments compared to non-ESG alternatives. The survey also noted that investors are willing to pay for ESG performance, as they anticipate the potential for higher returns. Specifically, three-quarters of those surveyed, constituting 78%, expressed their readiness to pay elevated fees for ESG funds.American Tower Corporation (NYSE:AMT), AT&T Inc. (NYSE:T), and Albemarle Corporation (NYSE:ALB) are some of the best companies in the realm of ESG investing. Beyond their financial success, the companies demonstrate a commitment to environmental sustainability by optimizing their operations to minimize energy consumption and carbon footprint. In this article, we will discuss some of the best environmental dividend stocks according to analysts.13 Best Environmental Dividend Stocks To Invest In According To AnalystsChinnapong/Shutterstock.comOur Methodology:For this list, we scanned the holdings of Vanguard ESG U.S. Stock ETF, which is a market capitalization-weighted index composed of large-, mid-, and small-cap stocks of companies located in the United States that are screened for certain environmental, social, and corporate governance (ESG) criteria by the index provider, which is independent of Vanguard. From the index, we picked 13 stocks that pay dividends and have a projected upside potential of over 15% based on analyst price targets. The stocks are ranked according to their upside potential, as of February 23. We have also mentioned hedge fund sentiment for these stocks. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.13. S&P Global Inc. (NYSE:SPGI)Upside Potential as of February 23: 15.2%S&P Global Inc. (NYSE:SPGI) is a leading provider of financial market intelligence, including credit ratings, indices, data, and analytics. The company is actively involved in ESG investing both through its own corporate practices and by providing data, analytics, and research to support ESG investing initiatives in the broader financial community.S&P Global Inc. (NYSE:SPGI) currently offers a quarterly dividend of $0.91 per share, having raised it by 1.1% in January this year. Through this increase, the company stretched its annual dividend growth streak to 51 years, which makes SPGI one of the best dividend stocks on our list. The stock's dividend yield on February 23 came in at 0.83%.The number of hedge funds tracked by Insider Monkey owning stakes in S&P Global Inc. (NYSE:SPGI) grew to 82 in Q4 2023, from 78 in the previous quarter. The collective value of these stakes is over $8.88 billion. With over 9 million shares, TCI Fund Management was the company's leading stakeholder in Q4.12. Pfizer Inc. (NYSE:PFE)Upside Potential as of February 23: 15.4%An American biotech and pharmaceutical company, Pfizer Inc. (NYSE:PFE) has committed to reducing its environmental impact by setting targets to decrease greenhouse gas emissions, water usage, and waste generation. The company invests in energy-efficient technologies, sustainable packaging, and renewable energy sources to mitigate its environmental footprint.Pfizer Inc. (NYSE:PFE) is one of the best environmental dividend stocks on our list as the company has been rewarding shareholders with growing dividends for the past 14 consecutive years. The company offers a quarterly dividend of $0.42 per share and has a dividend yield of 6.05%, as recorded on February 23.At the end of Q4 2023, 79 hedge funds tracked by Insider Monkey reported having stakes in Pfizer Inc. (NYSE:PFE), growing from 73 in the preceding quarter. The consolidated value of these stakes is more than $2.21 billion.11. Mid-America Apartment Communities, Inc. (NYSE:MAA)Upside Potential as of February 23: 15.9%Mid-America Apartment Communities, Inc. (NYSE:MAA) is a real estate investment trust company that focuses on the acquisition, development, redevelopment, and management of multifamily apartment communities. It invests in in energy-efficient appliances, lighting, and HVAC systems, as well as implement recycling programs and landscaping practices that minimize water usage and promote biodiversity. The company offers a quarterly dividend of $1.47 per share, having raised it by 5% in December 2023. This was the company's 13th consecutive year of dividend growth, which makes MAA one of the best environmental dividend stocks to buy. As of February 23, the stock has a dividend yield of 4.65%.As of the close of Q4 2023, 23 hedge funds in Insider Monkey's database owned stakes in Mid-America Apartment Communities, Inc. (NYSE:MAA), up from 19 in the previous quarter. These stakes have a total value of more than $524.3 million. Among these hedge funds, Balyasny Asset Management was the company's leading stakeholder in Q4.10. Morgan Stanley (NYSE:MS)Upside Potential as of February 23: 16.4%Morgan Stanley (NYSE:MS) is a global financial services firm that provides a wide range of related services to its consumers. The company offers a range of ESG-focused investment products and solutions to meet the growing demand from clients who seek to align their investments with their values.Morgan Stanley (NYSE:MS), one of the best dividend stocks on our list, has been rewarding shareholders with regular dividends since 1997. It currently offers a quarterly dividend of $0.85 per share and has a dividend yield of 3.93%, as of Februart 23.Morgan Stanley (NYSE:MS) was a part of 56 hedge fund portfolios at the end of Q4 2023, compared with 59 in the previous quarter, as per Insider Monkey's database. The stakes owned by these hedge funds have a total value of over $2.72 billion.9. Becton, Dickinson and Company (NYSE:BDX)Upside Potential as of February 23: 16.5%Becton, Dickinson and Company (NYSE:BDX) is a global medical technology company that specializes in the development, manufacturing, and sale of medical devices, instrument systems, and reagents. The company adheres to stringent regulatory standards and quality management systems to ensure the safety and reliability of its medical devices, instruments, and reagents. This commitment to product safety aligns with ESG principles and contributes to positive health outcomes for patients.On January 23, Becton, Dickinson and Company (NYSE:BDX) declared a quarterly dividend of $0.95 per share, which was in line with its previous dividend. Overall, the company holds a 52-year streak of consistent dividend growth, which makes BDX one of the best environmental dividend stocks on our list. The stock's dividend yield on February 23 came in at 1.54%.At the end of December 2023, 60 hedge funds tracked by Insider Monkey reported having stakes in Becton, Dickinson and Company (NYSE:BDX), which showed growth from 57 in the previous quarter. The collective value of these stakes is over $2.57 billion.8. Realty Income Corporation (NYSE:O)Upside Potential as of February 23: 16.69%With an upside potential of nearly 17%, Realty Income Corporation (NYSE:O) is next on our list of the best dividend stocks. The American real estate investment trust company has been paying regular dividends to shareholders for the past 104 consecutive quarters. Moreover, it has raised its payouts for 29 years in a row. It currently pays a monthly dividend of $0.2565 per share and has a dividend yield of 5.81%, as of February 23.Realty Income Corporation (NYSE:O) is equally dedicated to conducting its business activities in a manner that respects and preserves the environment. As a publicly traded company, it recognizes its corporate responsibilities and strives to fulfill them for the betterment of our stakeholders, which include our shareholders, employees, and the communities we serve.Insider Monkey's database of Q4 2023 indicated that 28 hedge funds owned stakes in Realty Income Corporation (NYSE:O), up from 23 in the previous quarter. The total value of these stakes is over $332.5 million. Among these hedge funds, Millennium Management was the company's largest stakeholder in Q4.7. Microsoft Corporation (NASDAQ:MSFT)Upside Potential as of February 23: 16.8%An American multinational tech company, Microsoft Corporation (NASDAQ:MSFT) is dedicated to environmental sustainability and has set ambitious goals to reduce its carbon footprint and achieve carbon neutrality. Currently, the company pays a quarterly dividend of $0.75 per share and has a dividend yield of 0.73%, as of February 23. It is one of the best dividend stocks on our list as the company holds an 11-year streak of consistent dividend growth.According to Insider Monkey’s database of Q4 2023, 302 hedge funds in Insider Monkey’s database owned stakes in Microsoft Corporation (NASDAQ:MSFT), compared with 306 in the previous quarter. These stakes have a total value of over $87.3 billion.6. Archer-Daniels-Midland Company (NYSE:ADM)Upside Potential as of February 23: 17.04%Archer-Daniels-Midland Company (NYSE:ADM) ranks sixth on our list of the best environmental dividend stocks. The global food processing and commodities trading company recently achieved its 51st consecutive annual dividend growth. It currently pays a quarterly dividend of $0.50 per share and has a dividend yield of 3.74%, as of February 23.Archer-Daniels-Midland Company (NYSE:ADM) prioritizes sustainable sourcing of raw materials, including agricultural commodities such as soybeans, corn, and wheat. The company works with farmers and suppliers to promote sustainable agricultural practices, responsible land management, and biodiversity conservation.At the end of the fourth quarter of 2023, 34 hedge funds tracked by Insider Monkey reported having stakes in Archer-Daniels-Midland Company (NYSE:ADM), compared with 37 in the previous quarter. These stakes are collectively valued at nearly $820 million. Click to continue reading and see 5 Best Environmental Dividend Stocks To Invest In According To Analysts.  Suggested articles:12 Best Rising Penny Stocks To Buy12 Best Gold Stocks Under $2513 Best Buy-the-Dip Stocks To Buy Right NowDisclosure. None. 13 Best Environmental Dividend Stocks To Invest In According To Analysts is originally published on Insider Monkey.

Insider Monkey

13 Best Environmental Dividend Stocks To Invest In According To Analysts

https://finance.yahoo.com/news/13-best-environmental-dividend-stocks-141835353.html

3312bcf2-2bca-31b4-b94d-dae2c6990864

O

Realty Income Corp. (O) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this real estate investment trust have returned +0.3%, compared to the Zacks S&P 500 composite's +2.7% change. During this period, the Zacks REIT and Equity Trust - Retail industry, which Realty Income Corp. falls in, has gained 3.4%. The key question now is: What could be the stock's future direction?While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.Realty Income Corp. is expected to post earnings of $1.03 per share for the current quarter, representing a year-over-year change of +5.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.3%.The consensus earnings estimate of $4.18 for the current fiscal year indicates a year-over-year change of +4.5%. This estimate has changed -0.7% over the last 30 days.Story continuesFor the next fiscal year, the consensus earnings estimate of $4.32 indicates a change of +3.3% from what Realty Income Corp. is expected to report a year ago. Over the past month, the estimate has changed -0.5%.With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Realty Income Corp.The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:12 Month EPSProjected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.In the case of Realty Income Corp. the consensus sales estimate of $1.17 billion for the current quarter points to a year-over-year change of +23.4%. The $4.79 billion and $5.05 billion estimates for the current and next fiscal years indicate changes of +17.4% and +5.6%, respectively.Last Reported Results and Surprise HistoryRealty Income Corp. reported revenues of $1.08 billion in the last reported quarter, representing a year-over-year change of +21.1%. EPS of $0.30 for the same period compares with $1 a year ago.Compared to the Zacks Consensus Estimate of $1.05 billion, the reported revenues represent a surprise of +2.42%. The EPS surprise was -0.98%.Over the last four quarters, Realty Income Corp. surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.Realty Income Corp. is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Realty Income Corp. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportRealty Income Corporation (O) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Here is What to Know Beyond Why Realty Income Corporation (O) is a Trending Stock

https://finance.yahoo.com/news/know-beyond-why-realty-income-130014571.html

5e39a96c-7f35-3aef-931b-a2f9fef7fe2f

O

FedEx (NYSE:FDX) has created generational wealth for early investors following its 1978 initial public offering, but the high-growth days for the stock are in the rearview mirror. It also does not have a dividend yield that justifies owning it as a high-yield or income play, as its yield sits at just 2% at the time of this writing.However, there’s a hack you can use to earn a 5.8% dividend yield from FedEx, and that’s by investing in one of its largest landlords.Here's how.Don't Miss:Investing in real estate just got a whole lot simpler. This Dara Khosrowshahi-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000.Realty Income CorporationRealty Income Corporation (NYSE:O) is the 7th largest global REIT with over 13,250 commercial properties in its portfolio and a world-class tenant base that includes FedEx, as well as Walgreens, Dollar General, 7-Eleven, LA Fitness, CVS, Walmart, and Tractor Supply.FedEx is listed as the seventh-largest client of Realty Income in its most recent investor presentation, equating to 2.2% of its annualized contractual rent.So, by owning Realty Income, you can generate monthly income that is partially attributable to FedEx.Realty Income currently pays a monthly dividend of $0.2565, equating to an annual dividend of $3.078 per share and giving it a yield of about 5.8% today.In addition to being a high-yielding monthly income stock, Realty Income is a dividend-growth superstar. It has raised its annual dividend every year since 1994, putting it on pace for 2024 to mark the 30th consecutive year in which it has raised its dividend for investors.Story continuesRead Next:Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000. Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Dara Khosrowshahi gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.Image Credit: Shutterstock"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!Get the latest stock analysis from Benzinga?FEDEX (FDX): Free Stock Analysis ReportREALTY INCOME (O): Free Stock Analysis ReportThis article Earn a 5.8% Yield from FedEx Using This Hack originally appeared on Benzinga.com© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Benzinga

Earn a 5.8% Yield from FedEx Using This Hack

https://finance.yahoo.com/news/earn-5-8-yield-fedex-171531331.html

c4711fb5-8818-3b1a-943e-463884570e9b

ODFL

Old Dominion Freight Line's (NASDAQ:ODFL) stock is up by a considerable 9.4% over the past month. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. In this article, we decided to focus on Old Dominion Freight Line's ROE.Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Simply put, it is used to assess the profitability of a company in relation to its equity capital. View our latest analysis for Old Dominion Freight Line How Is ROE Calculated?The formula for ROE is:Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' EquitySo, based on the above formula, the ROE for Old Dominion Freight Line is:29% = US$1.2b ÷ US$4.3b (Based on the trailing twelve months to December 2023).The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.29 in profit.What Has ROE Got To Do With Earnings Growth?We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.Old Dominion Freight Line's Earnings Growth And 29% ROEFirstly, we acknowledge that Old Dominion Freight Line has a significantly high ROE. Secondly, even when compared to the industry average of 14% the company's ROE is quite impressive. This probably laid the groundwork for Old Dominion Freight Line's moderate 20% net income growth seen over the past five years.Story continuesWe then compared Old Dominion Freight Line's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 16% in the same 5-year period.past-earnings-growthThe basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. Is Old Dominion Freight Line fairly valued compared to other companies? These 3 valuation measures might help you decide.Is Old Dominion Freight Line Efficiently Re-investing Its Profits?Old Dominion Freight Line has a low three-year median payout ratio of 9.8%, meaning that the company retains the remaining 90% of its profits. This suggests that the management is reinvesting most of the profits to grow the business.Besides, Old Dominion Freight Line has been paying dividends over a period of seven years. This shows that the company is committed to sharing profits with its shareholders. Looking at the current analyst consensus data, we can see that the company's future payout ratio is expected to rise to 14% over the next three years. Regardless, the ROE is not expected to change much for the company despite the higher expected payout ratio.SummaryIn total, we are pretty happy with Old Dominion Freight Line's performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Are Robust Financials Driving The Recent Rally In Old Dominion Freight Line, Inc.'s (NASDAQ:ODFL) Stock?

https://finance.yahoo.com/news/robust-financials-driving-recent-rally-101138073.html

9850dea0-0f15-334a-98cb-c7d28f4948fc

ODFL

For Immediate ReleaseChicago, IL – February 23, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Knight-Swift Transportation Holdings Inc. KNX, Old Dominion Freight Line, Inc. ODFL, J.B. Hunt Transport Services, Inc. JBHT and Landstar System, Inc. LSTR.Here are highlights from Thursday’s Analyst Blog:Trucking Industry Rises 12.5% in 3 Months: More Room to Run?The Zacks Transportation - Truck industry currently stands to benefit from the solid investor-friendly steps adopted by the industry players.Consistent shareholder-friendly initiatives in the form of dividend payouts or share buybacks imply the solid financial strength of companies in the trucking industry. Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. These stocks are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like the current scenario.To name a few, on Feb 2, 2024, Knight-Swift Transportation Holdings Inc.’s board of directors approved a dividend hike of 14.2%, thereby raising its quarterly cash dividend to 16 cents from 14 cents per share. The raised dividend is anticipated to be paid out on Mar 25, 2024, to all its shareholders of record as of Mar 8. The move reflects KNX’s intention to utilize free cash to enhance its shareholders’ returns. Notably, KNX has raised its quarterly dividend five times in the past five years for a 167% overall increase.Knight-Swift Transportation Holdings Inc. dividend-yield-ttm | Knight-Swift Transportation Holdings Inc. QuoteConcurrent with the fourth quarter of 2023 earnings release, on Jan 31, 2024, Old Dominion Freight Line, Inc.’s management announced a 30% increase to its first-quarter 2024 dividend over the first quarter of 2023 payout. The new dividend of 52 cents per share is payable on Mar 20, 2024, to shareholders of record at the close of business on Mar 6. The dividend hike raises Old Dominion’s annualized cash dividend rate to $2.08 per share from $1.6. In 2023, ODFL paid out dividends worth $175.1 million and repurchased shares worth $453.6 million.Story continuesOld Dominion Freight Line, Inc. dividend-yield-ttm | Old Dominion Freight Line, Inc. QuoteConcurrent with the fourth quarter of 2023 earnings release, on Jan 19, 2024, J.B. Hunt Transport Services, Inc.’s board of directors approved a dividend hike of 2%, thereby raising its quarterly cash dividend to 43 cents from 42 cents per share. The raised dividend will be paid out on Feb 23, 2024, to all its shareholders of record as of Feb 9. The move reflects JBHT’s intention to utilize free cash to enhance its shareholders’ returns.The company is also active on the buyback front, having resumed the same in the fourth quarter of 2020 after a temporary pause amid coronavirus concerns. In the fourth quarter of 2023, JBHT purchased almost 137,000 shares for $25 million. As of Dec 31, 2023, JBHT had approximately $392 million remaining under its share repurchase authorization.J.B. Hunt Transport Services, Inc. dividend-yield-ttm | J.B. Hunt Transport Services, Inc. QuoteOn Dec 5, 2023, Landstar System, Inc.’s board of directors raised the number of shares of its common stock, which the company is authorized to purchase, to 3,000,000. The latest uptick allows the company to purchase 319,332 new shares, apart from the existing authorization to purchase 2,680,668 shares. Additionally, LSTR’s board has declared a special one-time cash dividend of $2.00 per share. This special dividend will be paid on Jan 19, 2024, to all its shareholders of record as of business on Jan 3, 2024.Currently, KNX and JBHT carry a Zacks Rank #3 (Hold), while ODFL and LSTR have a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.We believe such shareholder-friendly initiatives should boost investor confidence and positively impact the bottom line. Notably, the industry has gained 12.5% over the past three months, outperforming the S&P 500 Index’s northward movement of 8.6% and 11.3% growth of the Zacks Transportation sector.Despite such positives, the trucking industry continues to grapple with issues like prolonged truck driver shortages and escalating operating expenses, led by high fuel costs.Driver shortage continues to be a major challenge facing the trucking industry. As old drivers retire, trucking companies find it difficult to hire drivers since the job does not appeal to the younger generation. Weak freight demand is also leading to declining trucking volumes. The American Trucking Associations’s advanced seasonally adjusted For-Hire Truck Tonnage Index decreased 3.5% in January 2024, after rising 1.2% in December 2023.Operating expenses are on the rise mainly due to increased fuel costs, hurting the bottom lines of the industry participants. As fuel expenses represent a key input cost for any transportation player, the rise in oil prices does not bode well for the bottom-line growth of trucking stocks. Further, supply-chain woes are also hurting the prospects of the stocks belonging to the trucking industry.Why Haven’t You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. [email protected]://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportJ.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis ReportOld Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis ReportKnight-Swift Transportation Holdings Inc. (KNX) : Free Stock Analysis ReportLandstar System, Inc. (LSTR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

The Zacks Analyst Blog Highlights Knight-Swift, Old Dominion Freight, J.B. Hunt and Landstar

https://finance.yahoo.com/news/zacks-analyst-blog-highlights-knight-094700312.html

41ee0e8a-9ec9-3151-a5ac-23504b20c6bd

ODFL

It has been about a month since the last earnings report for Werner Enterprises (WERN). Shares have lost about 9.9% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Werner due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.Werner's Q4 Earnings Lag EstimatesQuarterly earnings per share of 39 cents lagged the Zacks Consensus Estimate of 44 cents and declined 61% on a year-over-year basis. Total revenues of $821.9 million outperformed the Zacks Consensus Estimate of $811.1 million. However, the top line dipped 5% on a year-over-year basisdue to a $54.7 million decrease in Truckload Transportation Services (TTS) revenues, partially offset by Logistics revenue growth of $13.5 million, which includes the ReedTMS acquisition.Adjusted operating income of $39.2 million fell 56% year over year. Adjusted operating margin of 4.8% declined 560 basis points from the year-ago reported quarter.Segmental ResultsRevenues in the TTS segment fell 9% on a year-over-year basis to $580.09 million due to lower fuel surcharge revenues. Adjusted operating income of $37.2 million fell 55% year over year owing to a lower rate per mile in One-Way Truckload, smaller overall fleet size, and lower gains on the sale of property and equipment. Adjusted operating margin decreased 670 basis points to 6.4%.Logistics’ revenues totaled $226.96 million, up 6% year over year. Adjusted operating income of $3.0 million fell 62%. Adjusted operating margin of 1.3% fell 250 basis points.LiquidityAs of Dec 31, 2023, Werner had cash and cash equivalents of $61.72 million compared with $42.75 million at the third-quarter end. Long-term debt (net of current portion) totaled $646.25 million at the end of the fourth quarter compared with $686.25 million at the prior-quarter end.The company generated $118.3 million of cash from operations in fourth-quarter 2023. Net capital expenditure amounted to $34.5 million.In the quarter , Werner did not repurchase any shares. As of Dec 31, 2023, WERN had 2.3 million shares available under its share repurchase authorization.Story continuesOutlookFor 2024, Werner anticipates TTS truck growth between (3%) and breakeven.Net capital expenditure is estimated to be in the range of $260-$310 million. Under the TTS guidance, WERN projects dedicated revenues per truck per week growth to rise from breakeven to 3% in 2024.One-way Truckload revenues per total mile are predicted to decline 6-3%. Werner expects the average truck age to be 2.1 years for 2024, while the trailer age is forecasted to be five years.Full-year 2024 tax rate is anticipated to be in the range of 24.5%-25.5%.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.The consensus estimate has shifted -23.53% due to these changes.VGM ScoresAt this time, Werner has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Werner has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.Performance of an Industry PlayerWerner belongs to the Zacks Transportation - Truck industry. Another stock from the same industry, Old Dominion Freight Line (ODFL), has gained 0.7% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.Old Dominion reported revenues of $1.5 billion in the last reported quarter, representing a year-over-year change of +0.3%. EPS of $2.94 for the same period compares with $2.92 a year ago.For the current quarter, Old Dominion is expected to post earnings of $2.68 per share, indicating a change of +3.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.6% over the last 30 days.Old Dominion has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportWerner Enterprises, Inc. (WERN) : Free Stock Analysis ReportOld Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Werner (WERN) Down 9.9% Since Last Earnings Report: Can It Rebound?

https://finance.yahoo.com/news/werner-wern-down-9-9-163105808.html

711f438f-f8fa-30b5-8ca6-d02e050eb3e9

ODFL

Analysts weigh in on Walt Disney, Ulta Beauty, Old Dominion Freight Line, Sweetgreen, and Williams-Sonoma.Continue reading

Barrons.com

Walt Disney Stock Is Set to Rise on Growth and Lower Costs

https://finance.yahoo.com/m/ff19174f-b5ba-38b8-a8be-59b1768d2c7c/walt-disney-stock-is-set-to.html

ff19174f-b5ba-38b8-a8be-59b1768d2c7c

OKE

Feb 26 (Reuters) - Pipeline operator ONEOK reported a 42% jump in fourth-quarter profit on Monday, as it transported higher volumes of natural gas and natural gas liquids.ONEOK, which has about 50,000-mile long network of pipelines, said its Rocky Mountain region natural gas liquids (NGL) raw feed throughput volumes rose by 20%, compared to last year.The company said it also saw a 17% rise in natural gas volumes processed.Pipeline operators have benefited from a sharp rise in U.S. liquefied natural gas (LNG) exports with 8.6 million metric tons leaving the country's terminals in December.ONEOK forecast 2024 net income in the range of $2.61 billion to $3.01 billion and said the forecast includes a full-year contribution from the refined products and crude segment.The company moved into transporting refined products and oil last year following its acquisition of rival Magellan Midstream in an $18.8 billion deal.Tulsa, Oklahoma-based ONEOK expects about $175 million in total realized annual cost and initial commercial synergy impacts in the first year after the Magellan acquisition.ONEOK reported net income of $688 million, or $1.18 per share, for the three months ended Dec. 31, compared with $485 million, or $1.08 per share, a year earlier.The company, which is the primary NGL transportation provider for the Williston and Powder River basins and Mid-Continent, said it expects 2024 capital expenditure in the range of $1.75 billion to $1.95 billion. (Reporting by Sourasis Bose in Bengaluru; Editing by Maju Samuel)

Reuters

Pipeline firm ONEOK posts higher fourth-quarter profit on strong volumes

https://finance.yahoo.com/news/pipeline-firm-oneok-posts-higher-223756877.html

9828396a-f483-32e0-a835-77815f8f9a09

OKE

Oneok Inc. (OKE) reported $5.24 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 4%. EPS of $1.18 for the same period compares to $1.08 a year ago.The reported revenue represents a surprise of -6.07% over the Zacks Consensus Estimate of $5.57 billion. With the consensus EPS estimate being $1.21, the EPS surprise was -2.48%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.Here is how Oneok performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:Adjusted EBITDA- Natural Gas Liquids: $613 million versus $601.02 million estimated by three analysts on average.Adjusted EBITDA- Natural Gas Pipelines: $132 million compared to the $137.88 million average estimate based on three analysts.Adjusted EBITDA- Natural Gas Gathering and Processing: $323 million versus $341.06 million estimated by three analysts on average.View all Key Company Metrics for Oneok here>>>Shares of Oneok have returned +3.6% over the past month versus the Zacks S&P 500 composite's +4.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportONEOK, Inc. (OKE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Here's What Key Metrics Tell Us About Oneok (OKE) Q4 Earnings

https://finance.yahoo.com/news/heres-key-metrics-tell-us-230004134.html

f1ee5712-3b40-3bbd-81e4-e29b3b80bc9f

OKE

It's been a good week for ONEOK, Inc. (NYSE:OKE) shareholders, because the company has just released its latest full-year results, and the shares gained 3.0% to US$75.13. Revenues came in 9.5% below expectations, at US$18b. Statutory earnings per share were relatively better off, with a per-share profit of US$5.48 being roughly in line with analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year. Check out our latest analysis for ONEOK earnings-and-revenue-growthFollowing the latest results, ONEOK's ten analysts are now forecasting revenues of US$24.3b in 2024. This would be a substantial 37% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 7.7% to US$4.91. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$24.3b and earnings per share (EPS) of US$5.15 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.It might be a surprise to learn that the consensus price target was broadly unchanged at US$77.73, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values ONEOK at US$87.00 per share, while the most bearish prices it at US$62.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.Story continuesOne way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting ONEOK's growth to accelerate, with the forecast 37% annualised growth to the end of 2024 ranking favourably alongside historical growth of 17% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ONEOK to grow faster than the wider industry.The Bottom LineThe biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for ONEOK. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for ONEOK going out to 2026, and you can see them free on our platform here.And what about risks? Every company has them, and we've spotted 3 warning signs for ONEOK you should know about.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Revenue Miss: ONEOK, Inc. Fell 9.5% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

https://finance.yahoo.com/news/revenue-miss-oneok-inc-fell-143728850.html

5140aa17-5b2c-3315-b149-59c264fecc0e

OKE

TULSA, Okla., March 4, 2024 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) will participate in the following investor conferences in March 2024:March 5: Morgan Stanley Energy and Power Conference.March 6: Barclays Investment Grade Energy and Pipeline Corporate Days.ONEOK's latest investor materials are available at www.oneok.com.At ONEOK (NYSE: OKE), we deliver energy products and services vital to an advancing world. We are a leading midstream operator that provides gathering, processing, fractionation, transportation and storage services. Through our more than 50,000-mile pipeline network, we transport the natural gas, natural gas liquids (NGLs), refined products and crude that help meet domestic and international energy demand, contribute to energy security and provide safe, reliable and responsible energy solutions needed today and into the future. As one of the largest diversified energy infrastructure companies in North America, ONEOK is delivering energy that makes a difference in the lives of people in the U.S. and around the world.ONEOK is an S&P 500 company headquartered in Tulsa, Oklahoma.For information about ONEOK, visit the website: www.oneok.com. For the latest news about ONEOK, find us on LinkedIn, Facebook, X and Instagram.Analyst Contact:Megan Patterson 918-561-5325Media Contact:Brad Borror918-588-7582 CisionView original content:https://www.prnewswire.com/news-releases/oneok-to-participate-in-upcoming-investor-conferences-302078732.htmlSOURCE ONEOK, Inc.

PR Newswire

ONEOK to Participate in Upcoming Investor Conferences

https://finance.yahoo.com/news/oneok-participate-upcoming-investor-conferences-211500232.html

ace66403-997a-3f5d-964a-4f0ff0084e51

OMC

NEW YORK, Feb. 23, 2024 /PRNewswire/ -- Omnicom (NYSE: OMC) today announced it will present at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco, California on Tuesday, March 5, 2024 at 11:45 a.m. Pacific Time. Live and archived webcasts will be available on Omnicom's website at investor.omnicomgroup.com.Omnicom Group Logo (PRNewsfoto/Omnicom Group)About OmnicomOmnicom (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom's branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and branding, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/omnicom-to-present-at-the-morgan-stanley-technology-media--telecom-conference-302070183.htmlSOURCE Omnicom Group Inc.

PR Newswire

Omnicom to Present at the Morgan Stanley Technology, Media & Telecom Conference

https://finance.yahoo.com/news/omnicom-present-morgan-stanley-technology-210500045.html

569a9d8b-3ac1-3d01-ad05-88db88eda781

OMC

A slowdown in technology marketers’ spending has been a drag on some ad holding companies, while others less reliant on tech are feeling little pain.Continue reading

The Wall Street Journal

Tech Splits Ad Companies’ Fortunes in Two

https://finance.yahoo.com/m/6068098e-c0b1-3656-94d3-8becfb216abd/tech-splits-ad-companies%E2%80%99.html

6068098e-c0b1-3656-94d3-8becfb216abd

OMC

A month has gone by since the last earnings report for Omnicom (OMC). Shares have added about 5% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Omnicom due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.Omnicom Q4 Earnings and Revenues Beat EstimatesOmnicom Group Inc. reported impressive fourth-quarter 2023 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.Earnings of $2.16 per share beat the consensus estimate by 1.9% and increased 5.3% year over year. Total revenues of $4.06 billion surpassed the consensus estimate by 1.5% and increased 5% year over year.The increase in revenues is due to 4.4% organic growth and 1.7% foreign currency translations. This was partially offset by a 0.7% decline in acquisition revenues.Organic Growth Across Disciplines and RegionsAcross fundamental disciplines, revenues from Advertising & Media were up 9.3% compared with our estimated growth of 5.6%. Precision marketing revenues dipped 1.1% and Experiential revenues declined 8%.Public Relations revenues decreased 2.9%, while Healthcare revenues increased 3.6% organically year over year compared with our suggested growth of 4.5%. Commerce and Brand Consulting revenues increased 1% compared with our anticipated growth of 2.8%. Execution and support declined 0.4% compared with our projected fall of 1.7%.Across regional markets, year-over-year organic revenue growth was 0.6% in the United States, 5.8% in the U.K., 14.1% in Euro Markets & Other Europe, 13.7% in Latin America and 10.9% in Asia Pacific. Middle East & Africa and Other North America revenues declined 17.3% and 1.3%, respectively.Margin PerformanceEBITDA in the quarter came in at $668.1 million, up 0.8% year over year. EBITDA margin was 16.5%, down 60 basis points (bps) year over year. Adjusted operating profit of $661.2 million increased 2.9% year over year. The operating margin decreased 30 bps to 16.3%.Story continuesHow Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.VGM ScoresCurrently, Omnicom has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Omnicom has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportOmnicom Group Inc. (OMC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Omnicom (OMC) Up 5% Since Last Earnings Report: Can It Continue?

https://finance.yahoo.com/news/omnicom-omc-5-since-last-163055412.html

b6730b74-a678-39e9-94f0-b8ea0365b260

OMC

Assessing the Sustainability of Omnicom Group Inc's Upcoming DividendOmnicom Group Inc (NYSE:OMC) recently announced a dividend of $0.7 per share, payable on 2024-04-09, with the ex-dividend date set for 2024-03-08. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Omnicom Group Inc's dividend performance and assess its sustainability.What Does Omnicom Group Inc Do?Warning! GuruFocus has detected 5 Warning Sign with OMC.High Yield Dividend Stocks in Gurus' PortfolioThis Powerful Chart Made Peter Lynch 29% A Year For 13 YearsHow to calculate the intrinsic value of a stock?Omnicom is a holding company that owns several advertising agencies and related firms. It provides traditional and digital advertising services that include creative design, market research, data analytics, and ad placement. In addition, Omnicom provides outsourced public relations and other communications services. The firm operates globally, providing services in more than 70 countries; it generates more than one half of its revenue in North America and nearly 30% in Europe.Omnicom Group Inc's Dividend AnalysisA Glimpse at Omnicom Group Inc's Dividend HistoryOmnicom Group Inc has maintained a consistent dividend payment record since 1984. Dividends are currently distributed on a quarterly basis.Omnicom Group Inc has increased its dividend each year since 1994. The stock is thus listed as a dividend aristocrat, an honor that is given to companies that have increased their dividend each year for at least the past 30 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.Breaking Down Omnicom Group Inc's Dividend Yield and GrowthAs of today, Omnicom Group Inc currently has a 12-month trailing dividend yield of 3.03% and a 12-month forward dividend yield of 3.03%. This suggests an expectation of the same dividend payments over the next 12 months.Story continuesOver the past three years, Omnicom Group Inc's annual dividend growth rate was 2.50%. Extended to a five-year horizon, this rate increased to 3.10% per year. And over the past decade, Omnicom Group Inc's annual dividends per share growth rate stands at 5.50%.Based on Omnicom Group Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Omnicom Group Inc stock as of today is approximately 3.53%.Omnicom Group Inc's Dividend AnalysisThe Sustainability Question: Payout Ratio and ProfitabilityTo assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Omnicom Group Inc's dividend payout ratio is 0.40.Omnicom Group Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Omnicom Group Inc's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.Growth Metrics: The Future OutlookTo ensure the sustainability of dividends, a company must have robust growth metrics. Omnicom Group Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.Revenue is the lifeblood of any company, and Omnicom Group Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Omnicom Group Inc's revenue has increased by approximately 6.20% per year on average, a rate that outperforms approximately 64.44% of global competitors.The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Omnicom Group Inc's earnings increased by approximately 16.50% per year on average, a rate that outperforms approximately 61.1% of global competitors.Lastly, the company's 5-year EBITDA growth rate of 4.30%, which outperforms approximately 48.18% of global competitors.Next StepsConsidering Omnicom Group Inc's reliable dividend payment history, its status as a dividend aristocrat, and its consistent dividend growth, investors may find assurance in the company's ability to maintain its dividend payments. The payout ratio of 0.40 indicates a healthy balance between distributing profits to shareholders and retaining earnings for future growth. Coupled with the company's strong profitability and positive growth metrics, Omnicom Group Inc presents an attractive profile for value investors focused on dividend income.For those seeking investment opportunities with stable and growing dividends, Omnicom Group Inc's track record could be a compelling reason to consider it for their portfolio. However, as with any investment, it's important to review the most recent financial statements and company news to ensure a comprehensive understanding of the current situation. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find similar investment opportunities.This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.This article first appeared on GuruFocus.

GuruFocus.com

Omnicom Group Inc's Dividend Analysis

https://finance.yahoo.com/news/omnicom-group-incs-dividend-analysis-100446649.html

0308c59f-5fd0-3524-8b4f-95f9f6d63939

ON

If you're looking for a multi-bagger, there's a few things to keep an eye out for. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. And in light of that, the trends we're seeing at ON Semiconductor's (NASDAQ:ON) look very promising so lets take a look.Return On Capital Employed (ROCE): What Is It?For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for ON Semiconductor:Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)0.24 = US$2.6b ÷ (US$13b - US$2.2b) (Based on the trailing twelve months to December 2023).Thus, ON Semiconductor has an ROCE of 24%. In absolute terms that's a great return and it's even better than the Semiconductor industry average of 11%. View our latest analysis for ON Semiconductor roceIn the above chart we have measured ON Semiconductor's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for ON Semiconductor .What Does the ROCE Trend For ON Semiconductor Tell Us?The trends we've noticed at ON Semiconductor are quite reassuring. Over the last five years, returns on capital employed have risen substantially to 24%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 80%. So we're very much inspired by what we're seeing at ON Semiconductor thanks to its ability to profitably reinvest capital.The Bottom LineIn summary, it's great to see that ON Semiconductor can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. In light of that, we think it's worth looking further into this stock because if ON Semiconductor can keep these trends up, it could have a bright future ahead.Story continuesIf you'd like to know about the risks facing ON Semiconductor, we've discovered 1 warning sign that you should be aware of.High returns are a key ingredient to strong performance, so check out our free list ofstocks earning high returns on equity with solid balance sheets.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Why The 24% Return On Capital At ON Semiconductor (NASDAQ:ON) Should Have Your Attention

https://finance.yahoo.com/news/why-24-return-capital-semiconductor-111407641.html

181e885a-ed2f-30e7-a1c4-7783af324a95

ON

In this piece, we will take a look at the 11 best small-cap growth stocks to invest in. If you want to skip our primer about the benefits and drawbacks of investing in small cap stocks, then you can take a look at the 5 Best Small-Cap Growth Stocks to Invest In. The small cap sector of the stock market gets significantly lower coverage than compared to mega caps such as Apple and Microsoft. This is understandable since the latter category of stocks are of big companies that are global brand names. However, the sizeable nature of mega caps renders them weak when we consider the potential for returns. While there are some exceptions, higher share prices mean that not only is a stock less likely to make high double or triple digit percentage returns, but also since the stock is too expensive, there will be limited liquidity despite the fact that several shares are also sold in units.On the flip side, small cap stocks, which are those with a market capitalization less than $2 billion, come with their own set of risks. These are smaller firms, with balance sheets unlikely to cross a billion dollars in total assets. Naturally, their size is due to the fact that when compared to firms such as the semiconductor firm AMD or the consumer defensive retail giant Walmart Inc. (NYSE:WMT), small cap stocks often have markets that are geographically limited.A great example of this bifurcation in market size that also contributes to sizeable differences in market value is the financial services industry. With this industry, we have large caps such as the world's largest private bank in terms of assets, the New York City banking behemoth JPMorgan Chase & Co. (NYSE:JPM) as well as small cap banks such as the Miami Lakes, Florida based regional bank BankUnited, Inc. (NYSE:BKU). The sizeable difference in these two banks, which both belong to the same industry but only the latter is a small cap stock is clear when we look at their total assets as of December 2023. JPMK503BStory continuesFor JPMorgan, the world's biggest bank had unbelievable total assets of a stunning $3.6 trillion - larger than the assets of several countries. On the other hand, BankUnited's balance sheet totaled at $37 billion - or less than the total value of Elon Musk's Tesla, Inc. (NASDAQ:TSLA) stake.Since investing in stocks is all about returns, the next step when analyzing small cap stocks is to see how their performance differs from large or mega cap behemoths. After all, the fact that JPMorgan's market capitalization sits at $504 billion while UnitedBank is worth $1.99 billion ought to influence returns in some way. Well, continuing with our take on the financial services small cap stocks, in terms of 12 month percentage share price gains, the top three financial services stocks as of recent share price performance are American Coastal Insurance Corporation (NASDAQ:ACIC), Prairie Operating Co. (NASDAQ:PROP), and CleanSpark, Inc. (NASDAQ:CLSK). Their shares have appreciated by 961%, 336%, and 374% over the past twelve months, in a nice set of results that eclipse the gains of the magnificent seven A.I. semiconductor stock darling NVIDIA Corporation (NASDAQ:NVDA).Yet, when we look at the share price appreciation of large cap stocks in the financial services industry, the top three performers are Coinbase Global, Inc. (NASDAQ:COIN), Nu Holdings Ltd. (NYSE:NU), and First Citizens BancShares, Inc. (NASDAQ:FCNCA). Their share prices are up by 151%, 103%, and 93% over the past twelve months - confirming that small caps pack quite a punch in delivering returns. The significant difference in returns might be due to the fact that when valuations were accounted for, small caps were trading at a two decade high discount compared to large caps.However, while the picture for price gains in small cap stocks is rosy, it comes with its own set of caveats. For instance, these companies often might face liquidity issues that could see the shares experience limited trading. Or, untoward economic events such as a recession or a crisis in the regional banking industry can dent their shares and wipe out the principal invested.With these details in mind, let's take a look at some of the best small cap stocks that hedge funds are piling into. Within this list, the notable small cap names are ON Semiconductor Corporation (NASDAQ:ON), Neurocrine Biosciences, Inc. (NASDAQ:NBIX), and Flex Ltd. (NASDAQ:FLEX).11 Best Small-Cap Growth Stocks to Invest InPhoto by Karolina Grabowska from PexelsOur MethodologyTo make our list of the best small cap stocks, we ranked the 100+ holdings of the Janus Henderson Triton Fund by the number of hedge funds that had bought the shares as of Q4 2023 end. Naturally, the small cap stocks with the highest number of hedge fund shareholders were chosen.For these best small cap stocks, we used hedge fund sentiment. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.11 Best Small-Cap Growth Stocks to Invest In11. 89bio, Inc. (NASDAQ:ETNB)Number of Hedge Fund Investors As Of Q4 2023 end: 30 89bio, Inc. (NASDAQ:ETNB) is a small biotechnology company that develops treatments for liver diseases and other ailments. It marks a strong start to our list of the best small cap growth stocks as the shares are rated Strong Buy on average and the average analysts share price target is $30.67.As of Q4 2023 end, 30 out of the 933 hedge funds covered by Insider Monkey's research had bought and owned 89bio, Inc. (NASDAQ:ETNB)'s shares. Peter Kolchinsky's RA Capital Management was the firm's biggest hedge fund investor due to its $127 million stake.Along with Neurocrine Biosciences, Inc. (NASDAQ:NBIX), ON Semiconductor Corporation (NASDAQ:ON), and Flex Ltd. (NASDAQ:FLEX), 89bio, Inc. (NASDAQ:ETNB) is a top small cap growth stock.10. Globus Medical, Inc. (NYSE:GMED)Number of Hedge Fund Investors As Of Q4 2023 end: 31 Globus Medical, Inc. (NYSE:GMED) is a medical device company whose products enable the proper functioning of the human musculoskeletal system. 2024 has been a dynamic year for the firm to say the least, as after it laid off employees following a merger, the firm added to the news by appointing a new chief financial and operations officer.For their fourth quarter of 2023 shareholdings, 31 out of the 933 hedge funds tracked by Insider Monkey had bought the firm's shares. Globus Medical, Inc. (NYSE:GMED)'s largest hedge fund stakeholder is Stephen Dubois's Camber Capital Management as it owns 2.2 million shares that are worth $119 million.9. Lantheus Holdings, Inc. (NASDAQ:LNTH)Number of Hedge Fund Investors As Of Q4 2023 end: 42Lantheus Holdings, Inc. (NASDAQ:LNTH) is a healthcare diagnostic materials products provider headquartered in Bedford, Massachusetts. Its shares are rated Strong Buy on average, and 2024 will be a crucial year for the firm as a new CEO takes over and looks to maintain strong earnings performance.Insider Monkey scanned through 933 hedge fund portfolios for last year's fourth quarter and found 42 Lantheus Holdings, Inc. (NASDAQ:LNTH) investors. Ken Griffin's Citadel Investment Group owned the biggest stake among these which was worth $54.4 million.8. Crown Holdings, Inc. (NYSE:CCK)Number of Hedge Fund Investors As Of Q4 2023 end: 46Crown Holdings, Inc. (NYSE:CCK) is one of the oldest companies on our list of the best small cap stocks since it was founded in 1892. It makes and sells packaging products all over the world. Its fourth quarter earnings, released in February 2024 left investors aghast as the shares tumbled by 21% in the aftermath. You can check out the earnings transcript to find out what happened.46 out of the 933 hedge funds tracked by Insider Monkey during Q4 2023 had invested in the firm. The largest Crown Holdings, Inc. (NYSE:CCK) shareholder among these is Lauren Taylor Wolfe's Impactive Capital due to its $272 million investment.ON Semiconductor Corporation (NASDAQ:ON), Crown Holdings, Inc. (NYSE:CCK), Neurocrine Biosciences, Inc. (NASDAQ:NBIX), and Flex Ltd. (NASDAQ:FLEX) are some small cap growth stocks that hedge funds are piling into.7. SS&C Technologies Holdings, Inc. (NASDAQ:SSNC)Number of Hedge Fund Investors As Of Q4 2023 end: 50 SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) is an American software company whose products form the backbone of the financial services companies that rely on them. While the firm has struggled on the financial front as of late as it has not beaten analyst EPS estimates in any of its four latest quarters, Q4 2023 saw Richard Pzena's hedge fund increase its stake in the company by roughly $24 million.During the same quarter, 50 out of the 933 hedge funds surveyed by Insider Monkey were the firm's shareholders. The largest shareholder among these was Richard S. Pzena's Pzena Investment Management as it owns $884 million worth of shares.6. ImmunoGen, Inc. (NASDAQ:IMGN)Number of Hedge Fund Investors As Of Q4 2023 end: 67 ImmunoGen, Inc. (NASDAQ:IMGN) is yet another biotechnology company to make it on our list of the best small cap stocks. It develops treatments for helping cancer patients, and the shares are rated Buy on average despite countless downgrades in December 2023 which followed an announcement that the pharma giant Abbvie would buy the firm.Insider Monkey dug through 933 hedge fund portfolios for 2023's December quarter and found 46 ImmunoGen, Inc. (NASDAQ:IMGN) shareholders. Peter Kolchinsky's RA Capital Management was the biggest investor since it held a $704 million stake.Click here to continue reading and check out 5 Best Small-Cap Growth Stocks to Invest In. Suggested articles:13 High Growth Healthcare Stocks to BuyJim Cramer is Bullish on These 10 Stocks10 Cheapest Residency or Citizenship by Investment Programs in EuropeDisclosure: None. 11 Best Small-Cap Growth Stocks to Invest In is originally published on Insider Monkey.

Insider Monkey

11 Best Small-Cap Growth Stocks to Invest In

https://finance.yahoo.com/news/11-best-small-cap-growth-085546173.html

2052bbe3-f451-3546-94c1-bf8d915567e3

ON

It has been about a month since the last earnings report for ON Semiconductor Corp. (ON). Shares have added about 0.9% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is ON Semiconductor Corp. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.onsemi's Q4 Earnings Beat Estimates, Revenues Down Y/Yonsemi reported fourth-quarter 2023 non-GAAP earnings of $1.25 per share, outpacing the Zacks Consensus Estimate by 3.3% but declining 5.3% year over year.Revenues of $2.02 billion beat the Zacks Consensus Estimate by 0.7% but declined 4.1% on a year-over-year basis.Top-Line DetailsPower Solutions Group revenues of $1.09 billion (accounting for 53.8% of revenues) increased 3.6% year over year. The figure beat the Zacks Consensus Estimate by 2.68%.Advanced Solutions Group revenues of $624.6 million (30.9% of revenues) decreased 10.9% on a year-over-year basis. The figure beat the consensus mark by 1.45%.Intelligent Sensing Group revenues of $307.7 million (15.2% of revenues) fell 13.2% year over year. However, the figure missed the consensus mark by 6.09%.In terms of end markets, Automotive (55.2% of revenues) revenues were $1.11 billion, up 12.7% year over year. The figure also beat the Zacks Consensus Estimate by 1.33%.Industrial (24.6% of revenues) end-market (including military, aerospace and medical) revenues decreased 10% year over year to $497.1 million. The figure lagged the consensus mark by 11.4%.Others (20.2% of revenues) end-market revenues declined 27.7% year over year to $406.8 million. The figure beat the consensus mark by 19.42%.Operating DetailsNon-GAAP gross margin contracted 170 basis points (bps) year over year to 46.7%.Non-GAAP operating expenses increased 2% year over year to $306.4 million.Non-GAAP operating margin was 31.6%, down 260 bps on a year-over-year basis.Story continuesBalance Sheet & Cash FlowAs of Dec 31, 2023, onsemi had cash and cash equivalents of $2.48 billion compared with $2.68 billion as of Sep 29, 2023.Total debt (including the current portion), as of Dec 31, 2023, was $3.34 billion, down from $3.45 billion reported as of Sep 29.Fourth-quarter 2023 cash flow from operations amounted to $611.2 million compared with the previous quarter’s reported figure of $566.6 million.Free cash flow amounted to $220.7 million compared with free cash flow of $133.6 million in the previous quarter.GuidanceFor the first quarter of 2024, onsemi expects revenues between $1.80 billion and $1.90 billion.Non-GAAP gross margin is projected in the range of 44.5-46.5%.Non-GAAP operating expenses are expected in the range of $305-$320 million.Non-GAAP earnings are envisioned between 98 cents per share and $1.10 per share.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.The consensus estimate has shifted -6.21% due to these changes.VGM ScoresAt this time, ON Semiconductor Corp. has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, ON Semiconductor Corp. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerON Semiconductor Corp. is part of the Zacks Semiconductor - Analog and Mixed industry. Over the past month, M/A-Com (MTSI), a stock from the same industry, has gained 13.7%. The company reported its results for the quarter ended December 2023 more than a month ago.M/A-Com reported revenues of $157.15 million in the last reported quarter, representing a year-over-year change of -12.7%. EPS of $0.58 for the same period compares with $0.81 a year ago.M/A-Com is expected to post earnings of $0.58 per share for the current quarter, representing a year-over-year change of -26.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.3%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for M/A-Com. Also, the stock has a VGM Score of F.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportON Semiconductor Corporation (ON) : Free Stock Analysis ReportMACOM Technology Solutions Holdings, Inc. (MTSI) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Is ON Semiconductor Corp. (ON) Up 0.9% Since Last Earnings Report?

https://finance.yahoo.com/news/why-semiconductor-corp-0-9-163015047.html

348ae7e9-1f9f-32eb-9784-e004e281a60b

ON

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The final quarter of 2023 saw a continuous fluctuation between recessionary fears and soft-landing optimism. In the fourth quarter, the fund’s Investor Class fund ARTMX returned 8.86%, Advisor Class fund APDMX posted a return of 8.93%, and Institutional Class fund APHMX returned 8.96%, compared to a 14.55% return for the Russell Midcap Growth Index. The portfolio generated a positive absolute return in Q4 but underperformed the Russell Midcap Growth Index due to poor security selection, particularly in health care and information technology. In addition, please check the fund’s top five holdings to know its best picks in 2023.Artisan Mid Cap Fund featured stocks like ON Semiconductor Corporation (NASDAQ:ON) in the fourth quarter 2023 investor letter. Headquartered in Scottsdale, Arizona, ON Semiconductor Corporation (NASDAQ:ON) provides intelligent sensing and power solutions. On March 6, 2024, ON Semiconductor Corporation (NASDAQ:ON) stock closed at $77.62 per share. One-month return of ON Semiconductor Corporation (NASDAQ:ON) was -3.83%, and its shares lost 4.66% of their value over the last 52 weeks. ON Semiconductor Corporation (NASDAQ:ON) has a market capitalization of $33.169 billion.Artisan Mid Cap Fund stated the following regarding ON Semiconductor Corporation (NASDAQ:ON) in its fourth quarter 2023 investor letter:"Along with Argenx, our top detractors for Q4 included two semiconductor companies: Lattice Semiconductor and ON Semiconductor Corporation (NASDAQ:ON). ON Semiconductor is a leading designer and manufacturer of chips used for power management and image sensors. From a battery-electric vehicle standpoint, ON is a leading producer of silicon carbide (SIC) chips. Shares fell after the company reported disappointing earnings results due to headwinds in its automotive segment. While overall auto demand uncertainty due to macroeconomic pressures was expected, we were surprised by SIC demand weakness in its electric vehicle business. Given our view that elevated electric vehicle inventories could drag on results into 2024, we trimmed our position while we wait for signs of resumed growth momentum in this end market."Story continuesSemiconductor Market Share by Country: Top 12High angle view of a semiconductor chip against an array of electronics components.ON Semiconductor Corporation (NASDAQ:ON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, ON Semiconductor Corporation (NASDAQ:ON) was held by 45 hedge fund portfolios, down from 53 in the previous quarter, according to our database.We discussed ON Semiconductor Corporation (NASDAQ:ON) in another article and shared the list of best small-cap growth stocks to invest in. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.Suggested Articles:20 Cities Where You’re Most Likely To Get In A Car Accident20 Unhealthiest States in the US25 Most Indebted Companies in the World in 2024Disclosure: None. This article is originally published at Insider Monkey.

Insider Monkey

Disappointing Earnings Results Dragged ON Semiconductor Corporation (ON)

https://finance.yahoo.com/news/disappointing-earnings-results-dragged-semiconductor-111026935.html

916f34a6-00a3-3ef3-b593-bfd3dd457e16

ORCL

In this article, we discuss 14 best S&P 500 dividend stocks to invest in 2024. You can skip our detailed analysis of dividend stocks in the S&P 500 and their performance over the years, and go directly to read 5 Best S&P 500 Dividend Stocks To Invest In 2024. In 2023, despite the presence of higher interest rates, consumers remained unfazed, and investors displayed more optimism than apprehension, largely fueled by the excitement surrounding advancements in artificial intelligence (AI). Consequently, the S&P 500 experienced a remarkable surge, gaining over 24% last year. This surge was primarily attributed to the dominance of what has been dubbed the "Magnificent Seven." These seven major companies, which include Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and NVIDIA Corporation (NASDAQ:NVDA), played a pivotal role in driving the S&P 500's performance, contributing significantly to its overall returns. On the flip side, a staggering 72% of stocks failed to match the performance of the S&P 500 index, setting a new record for underperformance. Additionally, dividend-paying stocks experienced a downturn in 2023, paving the way for the dominance of technology equities. Despite this, the stock market returns throughout the year were both exceptional and notably robust in comparison to historical trends.Despite their recent lackluster performance, dividends remain a crucial aspect of returns for equity investors and have garnered considerable attention in capital markets research. The appeal of dividend-paying stocks is substantial, and rightfully so as they have the potential to significantly enhance long-term investment outcomes. This general observation has been well-documented across various periods and global markets. For instance, one study analyzed the components contributing to total equity returns of U.S. stocks spanning from 1802 to 2002. It revealed that dividends, along with real growth in dividends, constituted a substantial portion, accounting for 5.8% of the total annualized return of 7.9% over 200 years. Another study, conducted from a global perspective by researchers at the London Business School, examined data from 1900 to 2005 across 17 countries. It found that the real return averaged around 5%, with an average dividend yield of 4.5% during that timeframe. These findings provide compelling evidence for the significance of dividends for long-term investors.Story continuesYet another report from S&P Dow Jones Indices provided insight into the enduring impact of dividend-paying equities over the long term. This report emphasized that since 1926, dividends have played a significant role, contributing roughly 32% of the total return for the S&P 500, with capital appreciations making up the remaining 68%. Hence, both sustainable dividend income and the potential for capital appreciation are key considerations for forming expectations regarding total returns. Furthermore, the growth of dividends proves to be beneficial for investors. Over an extended period, the S&P 500 Dividend Aristocrats, which monitors the performance of companies with 25 or more consecutive years of dividend growth, has surpassed the S&P 500 index while exhibiting lower volatility, indicating higher risk-adjusted returns. The S&P 500 Dividend Aristocrats' ability to mitigate losses can be observed through its upside and downside capture ratios. According to a report by S&P Dow Jones Indices, it has outperformed the S&P 500 in down months 69.34% of the time and in up months 43.61% of the time from December 29, 1989, to July 31, 2023. Additionally, it's worth noting that the S&P 500 Dividend Aristocrats experienced lower drawdown levels compared to the benchmark index.Considering these points, let's explore some of the top S&P 500 dividend-paying stocks.14 Best S&P 500 Dividend Stocks To Invest In 2024Image by Sergei Tokmakov Terms.Law from PixabayOur Methodology: To create this list, we first examined the S&P 500 stocks based on their weight in the index and picked the top 25 stocks that consistently distribute dividends to their shareholders. Among these, we chose 13 stocks that garnered the most attention from hedge fund investors by the conclusion of Q4 2023, using data from Insider Monkey’s database. The stocks are ranked in ascending order of the number of hedge funds having stakes in them. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).14. The Home Depot, Inc. (NYSE:HD)Number of Hedge Fund Holders: 70The Home Depot, Inc. (NYSE:HD) is a multinational home improvement retailer. It operates a chain of retail stores that offer a wide range of products and services for home improvement, construction, and renovation projects. On February 20, the company declared a 7.7% hike in its quarterly dividend to $2.25 per share. Through this increase, the company stretched its dividend growth streak to 14 years, which makes HD one of the best dividend stocks on our list. The stock's dividend yield on February 26 came in at 2.42%.At the end of Q4 2023, 70 hedge funds tracked by Insider Monkey reported having stakes in The Home Depot, Inc. (NYSE:HD), compared with 76 in the previous quarter. The consolidated value of these stakes is nearly $6 billion.13. The Procter & Gamble Company (NYSE:PG)Number of Hedge Fund Holders: 71The Procter & Gamble Company (NYSE:PG) is a multinational consumer goods corporation. It manufactures and sells a wide range of branded consumer packaged goods, including personal care products, grooming products, household cleaning agents, baby care products, and health care products. It currently pays a quarterly dividend of $0.9407 per share and has a dividend yield of 2.34%, as of February 26. With a dividend growth streak of 67 years, PG is one of the best S&P 500 dividend stocks on our list.As of the close of Q4 2023, 71 hedge funds in Insider Monkey's database owned stakes in The Procter & Gamble Company (NYSE:PG), compared with 75 in the preceding quarter. The collective value of these stakes is roughly $6 billion. Among these hedge funds, Fisher Asset Management was the company's leading stakeholder in Q4.12. Broadcom Inc. (NASDAQ:AVGO)Number of Hedge Fund Holders: 91Broadcom Inc. (NASDAQ:AVGO) is a global technology company that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. The company currently pays a quarterly dividend of $5.25 per share, having raised it by 14% in December 2023. It has been growing its dividends consistently for the past 13 years, which makes AVGO one of the best dividend stocks on our list. As of February 26, the stock has a dividend yield of 1.62%.The number of hedge funds tracked by Insider Monkey owning stakes in Broadcom Inc. (NASDAQ:AVGO) grew to 91 in Q4 2023, from 87 in the previous quarter. These stakes are collectively valued at over $8.8 billion.11. Bank of America Corporation (NYSE:BAC)Number of Hedge Fund Holders: 96Bank of America Corporation (NYSE:BAC) is one of the largest financial institutions in the US and globally. It operates as a diversified financial services company, offering a wide range of banking and financial products and services to its consumers. On January 24, the company declared a quarterly dividend of $0.24 per share, which was in line with its previous dividend. The company has a 24-year run of paying regular dividends to shareholders, which makes BAC one of the best dividend stocks on our list. As of February 26, the stock has a dividend yield of 2.83%.Bank of America Corporation (NYSE:BAC) ended the fourth quarter with 96 hedge fund positions, up from 88 in the previous quarter, according to Insider Monkey's database. The consolidated value of these stakes is nearly $40 billion. With over 1 billion shares, Warren Buffett's Berkshire Hathaway was the company's leading stakeholder in Q4.10. Merck & Co., Inc. (NYSE:MRK)Number of Hedge Fund Holders: 98Merck & Co., Inc. (NYSE:MRK) is next on our list of the best S&P 500 dividend stocks. The pharmaceutical and medical device company currently offers a quarterly dividend of $0.77 per share and has a dividend yield of 2.38%, as of February 26. The company has been rewarding shareholders with growing dividends for the past 13 years.Merck & Co., Inc. (NYSE:MRK) saw growth in hedge fund positions at the end of Q4 2023, as 98 funds owned stakes in the company, up from 85 in the previous quarter, according to Insider Monkey's database. The overall value of these stakes is over $7.16 billion.9. Oracle Corporation (NYSE:ORCL)Number of Hedge Fund Holders: 100Oracle Corporation (NYSE:ORCL) is a multinational technology company that specializes in developing and marketing enterprise software products, cloud computing solutions, and hardware systems. The company pays a quarterly dividend of $0.40 per share and has raised its dividends for eight years in a row. The stock's dividend yield on February 26 came in at 1.43%.Oracle Corporation (NYSE:ORCL) was a part of 100 hedge fund portfolios at the end of Q4 2023, jumping from 88 in the preceding quarter, as per Insider Monkey's database. The stakes owned by these hedge funds have a collective value of over $6.4 billion. With over 18.5 million shares, First Eagle Investment Management was the company's leading stakeholder in Q4.8. Eli Lilly and Company (NYSE:LLY)Number of Hedge Fund Holders: 102Eli Lilly and Company (NYSE:LLY) is a multinational pharmaceutical company that focuses on the discovery, development, manufacturing, and marketing of innovative pharmaceutical products to address various medical conditions and diseases. The company's current quarterly dividend comes in at $1.30 per share for a dividend yield of 0.67%, as of February 26. It is one of the best dividend stocks on our list as the company maintains a 10-year streak of consistent dividend growth.At the end of Q4 2023, 102 hedge funds tracked by Insider Monkey reported having stakes in Eli Lilly and Company (NYSE:LLY), which remained unchanged from the previous quarter. The collective value of these stakes is more than $11 billion.7. JPMorgan Chase & Co. (NYSE:JPM)Number of Hedge Fund Holders: 103An American financial services company, JPMorgan Chase & Co. (NYSE:JPM) pays a quarterly dividend of $1.05 per share. During the fourth quarter of 2023, the company returned $3.1 billion to shareholders through dividends, which makes JPM one of the best dividend stocks on our list. The stock offers a dividend yield of 2.28%, as of February 26.Insider Monkey's database of Q4 2023 indicated that 103 hedge funds owned stakes in JPMorgan Chase & Co. (NYSE:JPM), compared with 109 in the preceding quarter. The total value of these stakes is more than $9 billion. Ken Fisher's Fisher Asset Management was the company's leading stakeholder in Q4.6. Thermo Fisher Scientific Inc. (NYSE:TMO)Number of Hedge Fund Holders: 111Thermo Fisher Scientific Inc. (NYSE:TMO) ranks sixth on our list of the best dividend stocks in the S&P 500. The multinational biotech and life sciences company declared an 11.4% hike in its quarterly dividend to $0.39 per share. Through this increase, the company achieved its seventh annual consecutive dividend hike. The stock has a dividend yield of 0.28%, as of February 26.As of the end of Q4 2023, 111 hedge funds tracked by Insider Monkey owned stakes in Thermo Fisher Scientific Inc. (NYSE:TMO), up from 109 in the previous quarter. The collective value of these stakes is over $10.3 billion. Click to continue reading and see 5 Best S&P 500 Dividend Stocks To Invest In 2024.  Suggested articles:Bill Gates’ 16 Dividend Stocks To BuyJim Cramer Says Do Not Buy These 11 StocksKen Fisher Portfolio: 12 Biggest PositionsDisclosure. None. 14 Best S&P 500 Dividend Stocks To Invest In 2024 is originally published on Insider Monkey.

Insider Monkey

14 Best S&P 500 Dividend Stocks To Invest In 2024

https://finance.yahoo.com/news/14-best-p-500-dividend-181946918.html

7f4addf3-4092-3849-bc90-6e92ab735dd7

ORCL

In this article, we will take a look at the 25 best free tech newsletters to subscribe to in 2024. If you want to skip our detailed analysis, you can go directly to the 5 Best Free Tech Newsletters to Subscribe to in 2024.Generative AI: A Catalyst in 2024According to a report by Deloitte, spending on software and IT services backed by artificial intelligence, cloud computing, and cyber security is expected to increase in 2024. Generative artificial intelligence is expected to dominate the market, as technology companies continue to experiment with different applications. These applications will primarily aim to improve efficiency and productivity. According to a survey conducted by Deloitte, 52% of tech leaders stated that artificial intelligence will be the primary technology in 2024, 47% of tech leaders vouched for cloud computing, and 40% were in favor of cybersecurity. 27% of the respondents suggested that generative artificial intelligence will prove to be a game changer for companies in 2024, as tech giants continue to make billion-dollar investments in the industry. Lastly, global spending on security and risk management tools is expected to witness double-digit growth in 2024.What are Tech Giants Up To?Some of the leading tech companies include Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Oracle Corporation (NYSE:ORCL). Let's discuss some recent updates from these companies. You can also take a look at the most valuable tech companies outside of the US.On February 13, Microsoft Corporation (NASDAQ:MSFT) launched new data and AI solutions in Microsoft Cloud for sustainability. These initiatives help companies bring their sustainability initiatives into action. The company highlights that while 85% of executives regard sustainability as an important business component, only 16% of them have integrated sustainable initiatives into their business operations. A key solution launched by Microsoft Corporation (NASDAQ:MSFT) is faster environmental, social, and governance (ESG)  data analytics and insights. This is an AI assistant tool that speeds up the reporting and decision-making process for companies. You can also take a look at the best free newsletters to subscribe to in 2024.Story continuesOn January 8, NVIDIA Corporation (NASDAQ:NVDA) announced that Li Auto, a leading name in the extended-range electric vehicle industry, chose NVIDIA Corporation's (NASDAQ:NVDA) DRIVE Thor to power its next-generation fleets. DRIVE Thor is a centralized car computer. Primary features of the next-gen car computer include a single AI compute platform, autonomous driving and parking capabilities, driver and passenger monitoring, and AI cockpit functionality. Currently, Li Auto leverages two DRIVE Orin processors to back its assisted driving system, AD Max, for its L-series models. The two processors provide full-scenario autonomous driving for navigation on advanced driver-assistance systems (ADAS), full-scenario-assisted driving for lane change control (LCC), and automated parking and automatic emergency braking (AEB) active safety. On January 30, Oracle Corporation (NYSE:ORCL) announced that Marriott International chose Oracle’s Cloud Property Management System and Sales and Event Management solution to manage all their properties. Marriott International will leverage the platform to streamline its hotel operations, optimize event space, and improve guest planning and customer service. The company is also using Oracle Corporation's (NYSE:ORCL) Fusion Cloud to streamline its human resource processes. Subscribing to tech newsletters can help you stay updated on the latest trends in tech. Without further ado, let's take a look at the 25 best free tech newsletters to subscribe to in 2024. You can also read our piece on the most influential email newsletters in 2024.25 Best Free Tech Newsletters to Subscribe to in 2024A close-up of a hand reaching out to touch a virtual animation, demonstrating the power of the company's IoT technology.Our MethodologyTo gather a list of the best free tech newsletters, we went over several sources including over 10 reports on the internet, our rankings, and multiple similar rankings. Of them, we picked the newsletters that appeared in 50% of our sources. To identify the top 25 items, we sourced the total site visits in the past 28 days for our pool of newsletters from Similarweb. Our list of the 25 best free tech newsletters to subscribe to in 2024 is in ascending order of the total site visits, as of February 16, 2024.By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.25 Best Free Tech Newsletters to Subscribe to in 202425. Hacker Newsletter Total Site Visits as of February 16, 2024: 11,212The Hacker Newsletter is a weekly newsletter providing information on startups, technology, and programming. The newsletter has been active since 2010.24. NextDraft Total Site Visits as of February 16, 2024: 25,594NextDraft is hosted on Substack and ranks as one of the best tech newsletters to subscribe to in 2024. The newsletter is delivered on weekdays. Dave Pell writes about news, technology, and media.23. Bay Area Times Total Site Visits as of February 16, 2024: 78,140Bay Area Times sends a free daily newsletter covering top stories about businesses and technology. It has more than 250,000 subscribers. Users can upgrade to Bay Area Times Pro to receive exclusive interviews, guides, and research reports.22. SidebarTotal Site Visits as of February 16, 2024: 82,133Sidebar ranks 22nd on our list of the best tech newsletters to subscribe to in 2024. The Sidebar newsletter is sent five days a week from Monday to Friday.21. LeadDev Newsletter Total Site Visits as of February 16, 2024: 104,039The LeadDev Newsletter is sent once a week. It covers important updates to polish the reader's engineering management skills. It provides insights from tech experts in the LeadDev community.20. ChartrTotal Site Visits as of February 16, 2024: 159,657Chartr ranks 20th on our list of the best free tech newsletters to subscribe to in 2024. The newsletter covers important data-driven insights into business, tech, entertainment, and society.19. Benedict's NewsletterTotal Site Visits as of February 16, 2024: 196,048The Benedict's Newsletter is one of the best tech newsletters to subscribe to in 2024. The free newsletter is delivered every Tuesday and covers core news and analysis.18. TLDR Newsletter Total Site Visits as of February 16, 2024: 245,148The TLDR Newsletter ranks 18th on our list of the best free tech newsletters to subscribe to in 2024. The daily free newsletter covers interesting stories about startups, tech, and programming.17. Exponential View Total Site Visits as of February 16, 2024: 290,442Exponential View by Azeem Azhar is a newsletter covering various topics including data, AI, and exponential technologies. The newsletter has more than 94,000 subscribers. Readers receive a weekly newsletter on market signals, key reads, and important trends for free.16. Ask Leo!Total Site Visits as of February 16, 2024: 317,716Ask Leo! ranks as one of the best tech newsletters to subscribe to in 2024. The weekly newsletter helps readers feel safe with technology and solves common problems.15. Lenny's Newsletter Total Site Visits as of February 16, 2024: 407,223Lenny's Newsletter is hosted on Substack and is one of the best tech newsletters to subscribe to in 2024. Readers can receive one newsletter a month for free. The newsletter covers topics around product and career growth.14. TechliciousTotal Site Visits as of February 16, 2024: 595,930Techlicious ranks 14th on our list of the best tech newsletters to subscribe to in 2024. The free newsletter covers important tech stories, tips, and updates.13. Pragmatic Engineering Total Site Visits as of February 16, 2024: 755,548Pragmatic Engineering is hosted on Substack and is one of the best tech newsletters to subscribe to. Users can access short newsletters every Tuesday with a full article once a month for free. The newsletter provides tech advice and tech stories for engineering managers.12. The Hustle Total Site Visits as of February 16, 2024: 841,027The Hustle is a free five-minute daily newsletter aimed at innovators. The newsletter covers stories on business, technology, and the internet. More than 2.5 million innovators have subscribed to the newsletter.11. CIO Newsletter Total Site Visits as of February 16, 2024: 978,932The CIO Newsletter ranks 11th on our list of the best tech newsletters to subscribe to in 2024. Users can sign up for several weekly and bi-weekly newsletters. The newsletters discuss artificial intelligence, machine learning, and other tech stories.10. ByteByteGo Newsletter Total Site Visits as of February 16, 2024: 1.35 MillionThe ByteByteGo Newsletter ranks as one of the best free tech newsletters to subscribe to in 2024. Users can subscribe to the free version to receive one newsletter every week on Saturday. The newsletters cover important subjects such as system design, software solutions, and discussions around basic tech terminologies.9. CB Insights Total Site Visits as of February 16, 2024: 1.59 Million CB Insights is one of the best tech newsletters to subscribe to in 2024. Users can sign up by providing their email and receive the latest updates on tech and money markets.8. The Information Total Site Visits as of February 16, 2024: 1.61 MillionThe Information ranks eighth on our list of the best tech newsletters to subscribe to in 2024. While most of the newsletters such as the Information AM, The Takeaway, and Every Weekend are free to read, the news service also offers paid newsletters such as the Pro Weekly Newsletter. It is available to pro-subscribers only.7. The DownloadTotal Site Visits as of February 16, 2024: 1.99 Million The Download is a product of the MIT Technology Review. Users can sign up by providing their email and receive a fresh tech-based newsletter every day from Monday to Thursday.6. Product Hunt Total Site Visits as of February 16, 2024: 3.93 Million Product Hunt ranks sixth on our list of the best tech newsletters to subscribe to in 2024. Product Hunt aims to identify new products in the market. The Product Hunt Daily newsletter is a daily digest of the best new products in the market.Click to continue reading and see the 5 Best Free Tech Newsletters to Subscribe to in 2024.Suggested Articles:10 Best Car Insurance in Texas for 202415 Best Coffee Beans for Beginners13 Best Major Stocks to Buy Right NowDisclosure: None. 25 Best Free Tech Newsletters to Subscribe to in 2024 is originally published on Insider Monkey.

Insider Monkey

25 Best Free Tech Newsletters to Subscribe to in 2024

https://finance.yahoo.com/news/25-best-free-tech-newsletters-201352154.html

d5889eef-a3c8-3148-9cfc-251f60642fad

ORCL

Oracle (ORCL) reported its third-quarter earnings, coming just in line with revenue estimates while beating adjusted earnings per share (EPS) expectations. Harvest Portfolio Management Co-Chief Investment Officer Paul Meeks joins Yahoo Finance Live to discuss Oracle's performance.Meeks describes the earnings report as "incrementally positive" for the stock, acknowledging that following their previous quarterly earnings, estimates were revised downward significantly. Despite beating EPS estimates, Meeks says that "it was a very low bar" to surpass, implying that the achievement was not particularly impressive. While Oracle's investments and capabilities in artificial intelligence (AI) may drive some growth, Meeks believes the company's legacy business will "continue to dampen the overall growth rate," limiting its upside potential.Regarding the AI play, Meeks suggests that it "tilts in favor of hardware and semiconductor" stocks, as AI necessitates an "infrastructure build" for large language models. However, he expresses caution about the potential for AI applications from software companies to become significant revenue generators, advising investors to "stick with the infrastructure."Yahoo Finance's Julie Hyman and Brian Sozzi break down the results.For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.Click here to watch the full interview on the Yahoo Finance YouTube page or you can watch this full episode of Yahoo Finance Live here.Editor's note: This article was written by Angel SmithVideo TranscriptJULIE HYMAN: Oracle shares rising in the immediate aftermath of its third quarter results. Adjusted earnings per share coming in above expectations as $1.41 a share versus the $1.38 that analysts had been anticipating. Revenue also in line with analyst estimates at $13.28 billion.We also saw the remaining performance obligations at a record last quarter. With us now, Paul Meeks, Harvest Portfolio Management co-CIO and banking professor at the Citadel. Paul, it's good to see you here. So what do you make of these Oracle numbers also sort of emphasizing not surprisingly, the AI upside for the company?Story continuesAs Brian Sozzi noted earlier, the stock fell after the past two earnings reports. But now, it's catching a bid.PAUL MEEKS: It is catching a bid. And obviously, this news today is, I don't know, if it's wholly positive, it's at least incrementally positive. Because after the company announced this last quarter, it really took down estimates and so did the street.And so you think about it. They came into the print today. Now, the stock was up 2% in regular session.Now, it's indicated up 5% or 6% after hours. But remember, the EPS estimates came way down to set a very low bar after they last reported. I think there's some positive things going on here.However, I think that their legacy business is going to continue to dampen the overall growth rate. And even though they'll get some love where their AI capabilities and also OCI, their Cloud Infrastructure business that supports theirs and others AI capabilities, the legacy business is going to slow down that company at least on a total revenue basis.And so I think over time, you have a compounded annual growth rate here of sales of about 5% and maybe earnings per share with a little bit of operating margin bump and more due to stock buybacks of 10, 11, 12. And it's better than it had been. And it's probably fairly impressive for a very mature snail growth company.But if I'm going to play AI, I would probably sell on Oracle strength tomorrow. And as Brian says, if it does rekindle some excitement about AI, which has done pretty poorly over the last two trading sessions, I would rather buy those names.BRIAN SOZZI: Paul, good to see you, as always. Is there something fundamentally wrong with some of these AI companies that investors need to worry about, that the market's trying to sniff out today.PAUL MEEKS: Yeah, I think, Brian, that we continue to have a year or maybe even more. And I'm concerned with this call where we're just doing infrastructure build. Large language, model building, strongly in favor of the customized service server companies like a Supermicro. And, of course, the GPU guys like NVIDIA and AMD.And then we'll have inference. And, again, that tilts in favor of hardware and semiconductors. The thing that creeps me out that you're leading into here, Brian, is that I'm not sure that these AI apps from these software vendors will be as-- they'll definitely be ubiquitous.I just don't know if they're going to be moneymakers. And so I don't know if I would put a lot of money into these follow on some day released, some day hopefully successful software apps that have AI embedded. I still would stick with the infrastructure because I know that's going to work. And I know it's going to work for the next couple of years.I don't know about the other stuff. There could be some cool products. But just like when we got on the other side of the .combubble, when it popped, we found that, hey, everybody has a broadband internet connection now. And it ain't that great, and it ain't that profitable.

Yahoo Finance Video

Oracle: 'Stick with' AI infrastructure, strategist explains

https://finance.yahoo.com/video/oracle-stick-ai-infrastructure-strategist-212204114.html

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ORCL

Image source: The Motley Fool.Oracle (NYSE: ORCL)Q3 2024 Earnings CallMar 11, 2024, 5:00 p.m. ETContents:Prepared RemarksQuestions and AnswersCall ParticipantsPrepared Remarks:OperatorGood afternoon. My name is Krista and I'll be your conference operator today. At this time, I would like to welcome everyone to the Oracle Corporation third quarter fiscal year 2024 earnings conference call. All lines have been placed on mute to prevent any background noise.After the speakers' remarks, there will be a question-and-answer session. [Operator instructions] Thank you. I would now like to turn the conference over to Ken Bond, senior vice president, investor relations. Mr.Bond, you may begin your conference.Ken Bond -- Head of Investor RelationsThank you, Krista. Good afternoon, everyone, and welcome to Oracle's third-quarter fiscal year 2024 earnings conference call. A copy of the press release and financial tables, which includes a GAAP to non-GAAP reconciliation and other supplemental financial information can be viewed and downloaded from our Investor Relations website. Additionally, a list of many customers who purchase Oracle Cloud Services or went live on Oracle Cloud recently will be available from our Investor Relations website.On the call today are Chairman and Chief Technology Officer Larry Ellison and Chief Executive Officer Safra Catz. As a reminder, today's discussion will include forward-looking statements including predictions, expectations, estimates, or other information that might be considered forward-looking. Throughout today's discussion, we will provide some important factors relating to our business, which may potentially affect these forward-looking statements. These forward-looking statements are also subject to risks and uncertainties that may cause actual results to differ materially from statements being made today.Should you invest $1,000 in Oracle right now?Before you buy stock in Oracle, consider this:The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oracle wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Story continuesStock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of March 11, 2024As a result, we caution you against placing undue reliance on these forward-looking statements, and we encourage you to review our most recent reports including our 10-K and 10-Q and any applicable amendments for a complete discussion of these factors and other risks which may affect our future results or the market price of our stock. And finally, we are not obligating ourselves to revise our results or these forward-looking statements in light of new information or future events. Before taking questions, we'll begin with a few prepared remarks. And with that, I'd like to turn the call over to Safra.Safra Catz -- Chief Executive OfficerThanks, Ken, and good afternoon, everyone. We had another excellent quarter with third-quarter revenue coming in as expected and EPS $0.02 above the high end of my guidance range. Now, before I get into the results of the quarter, I wanted to touch on the strength of our infrastructure cloud business. OCI has emerged as the largest driver of our overall revenue acceleration, growing much much faster than our cloud competitors. Customers have figured out that by moving to OCI, they can really get more while paying less, but it's not just the cost that matters to our customers.Beyond the superior price performance of OCI, customers are choosing Oracle and Oracle services for multiple reasons. First, we know better than anyone what it takes to run the full stack of technology that goes into mission-critical workloads. I'm talking about running at enterprise scale with comprehensive security and unparalleled support, and that's from decades of experience running the world's most important workloads and optimizing clustering technology, which is critical to artificial intelligence workloads and database services. Secondly, our AI capabilities are unique as they're built in to help customers drive business outcomes. This is more than integrating generative AI across our fusion and industry cloud applications and autonomous database, which we have done. It's also about enabling and refining these AME AI models with the customer's own data to better understand and serve their operations without them losing control of their own data. Third, we provide deployment flexibility for customers based on how they want to run in the cloud.In addition to offering public cloud services, we remain the only vendor which also offers a dedicated and complete cloud of customer-dedicated regions, sovereign clouds, and Alloy, our partner cloud. so customers don't have to compromise the services they receive while meeting their deployment needs. And finally, we provide multi-cloud offerings so customers can consume our cloud services in the public cloud of their choice. We offer Oracle Database at Azure with Microsoft, as well as MySQL Heatwave through multiple clouds. And you can expect more multi-cloud services to come.Now to Q3 results, which I'd like to point out I had the actual results on day five and signed off with my auditors days ago, so I'm just bragging a little bit, but I couldn't help it. I know a lot of CFOs are pretty jealous. As I mentioned earlier, total revenue came in at the midpoint of my constant-currency guidance and EPS was above the high end of guidance. As was the case when I gave guidance last quarter, currency had little effect in Q3, but I'll still discuss our results using constant-currency growth rates in the few areas that the rates are slightly different.So, here we go. Cloud revenue, that's SaaS and IaaS, excluding Cerner, was 4.4 billion, up 26%. Including Cerner, total cloud revenue was up 24% at 5.1 billion, with IaaS revenue of 1.8 billion up 49%, and SaaS revenue of 3.3 billion up 14%. This quarter marks the first time our total cloud revenue is more than our total license support revenue. So, we have crossed over.Total cloud services and license support revenue for the quarter was 10 billion, up 11%, driven again by our strategic cloud applications, autonomous database, and OCI. Application subscription revenues, which includes product support, were 4.6 billion and up 10%. Our strategic back-office SaaS applications now have annualized revenue of 7.4 billion, and we're up 18%. Infrastructure revenues, which includes license support were 5.4 billion and up 13%.Infrastructure cloud services revenue was up 49%. Excluding legacy hosting services, OCI Gen2 Infrastructure Cloud services revenue grew 52% with an annualized revenue of 6.7 billion. OCI consumption revenue was up 63%. Were it not for some continuing supply constraints, consumption growth would have been even higher. Database subscription revenue, which includes database license support, were up 5% and highlighted by cloud database services which were up 34% and now have annualized revenue of 1.9 billion.Very importantly, as on-premise databases, my database -- my -- databases migrate to the cloud, we expect these cloud database services will be the third leg of revenue growth alongside strategic SaaS and OCI. Software license revenues were 1.3 billion, down 3%. So, all-in, total revenues for the quarter were 13.3 billion, up 7% including Cerner and up 9% excluding Cerner. Now, the margins.The gross margin for cloud services and license support was 77%. This is as before a result of the mix between support and cloud, in which cloud is growing much faster than support. Support and SaaS gross margin percentages are consistent with last year, while IaaS gross margins improved substantially year over year. While we continue to build data center capacity, overall gross margins will go higher as more of our cloud regions fill up. We monitor these expenses carefully to ensure gross margin percentages expand as we scale.And to that point, gross profit dollars of cloud services and license support grew 8% in Q3. Non-GAAP operating income was 5.8 billion, up 12% from last year. Operating margin was 44%, up from 42% last year as we continue to drive more efficiencies in our operating expenses, which continue to trend down as a percentage of revenue. Looking forward, as we continue to benefit from economies of scale in the cloud and drive Cerner profitability to Oracle standards, we will not only continue to grow operating income, but we will also expand the operating margin percentages. The non-GAAP tax rate for the quarter was very close to my guidance at 18.9%, and non-GAAP EPS was $1.41 in USD, up 16% in both USD and constant currency. GAAP EPS was $0.85.At the -- at quarter end, we had nearly $9.9 billion in cash and marketable securities, and short-term deferred revenue balance -- and the short-term deferred revenue balance was 8.9 billion, up 4%. Over the last four quarters, operating cash flow was 18.2 billion, up 18%; and free cash flow was 12.3 billion, up 68%. Capital expenditures were 6 billion over the same time period as we continue to see cash flow benefit from our cloud transformation. Our remaining performance obligation, or RPO, is now over 8 billion with the portion excluding Cerner up 41% in constant currency.We signed several large deals this quarter, and we have many more in the pipeline. Approximately 43% of our total RPO is expected to be recognized as revenue over the next 12 months. And this reflects the growing trend of customers wanting larger contracts as they see firsthand how Oracle Cloud Services are benefiting their businesses. And we expect to have some very nice joint announcements with Nvidia next week. Now, while we spent 2.1 billion on capex this quarter, the 1.7 billion in the cash flow statement is slightly lower just due to the timing of payments. So, the 2.1 billion is actually what we spent and will pay for.We are working as quickly as we can to get the cloud capacity built out given the enormity of our backlog and pipeline. I expect the capex will be somewhere around 7 billion to 7.5 billion this fiscal year, meaning our Q4 capex should be considerably higher. To that point, we now have 68 customer-facing cloud regions live, with 47 public cloud regions around the world and another eight being built. Twelve of these public cloud regions interconnect with Azure, and more locations with Microsoft are coming online soon. We also have 11 dedicated regions live and 13 more planned several national security regions in EU sovereign regions live with increasing demand for more of each.And finally, we already have two Alloy cloud regions live with five more planned where Oracle partners become cloud providers offering customized cloud services alongside Oracle Cloud. And of course, we have also many many many cloud customer installations. As I mentioned earlier, the sizing, flexibility, and deployment optionality of our cloud regions continues to be incredible advantage for us in the marketplace. And as we've said before, we're committed to returning value to our shareholders through technical innovation, acquisitions, stock repurchases, prudent use of debt, and a dividend. And this quarter, we repurchased 4 million shares for a total of 450 million. In addition, we paid out dividends of 4.4 billion over the last 12 months, and the board of directors declared a quarterly dividend of $0.40 per share today.Now, before I dive into Q4 guidance, I'd like to share some thoughts on what I see for the next 12 months or so. As demand for our cloud services continues getting stronger, our pipeline is growing even faster and our win rates are going higher as well. As our supply constraints ease, revenue growth rates will accelerate higher as our capacity expands and we get into fiscal year '25. I should also say that we continue to expect the -- FY '24, of which we are now in the fourth quarter, total revenue excluding Cerner will accelerate from last year, as it has for the past three years, and will likely be significantly higher in FY '25.In addition, Cerner, which is a significant headwind this year, we expect to return to growth next year. And finally, and -- and I remain firmly committed to our FY '26 financial goals for revenue, operating margin, and EPS growth. However, some of these goals might prove to be too conservative given our momentum. Let me now turn to my guidance for Q4, which I'll review on an -- on GAAP basis as always. And if currency exchange rates remain the same as they are now, currency should have little effect on total revenue and EPS.However, of course, actual currency impact may be different. So, at least right now, all the numbers are the same for -- for constant currency and USD. Total revenues, including Cerner, are expected to grow from 4% to 6%. Total revenue, excluding Cerner, are expected to grow 6% to 8%. Total revenue -- total cloud revenue, excluding Cerner, is expected to grow from 22% to 24% as more capacity comes online in Q4.The EPS growth rate will be affected by the compare as our Q4 tax rate last year was 9.2%, which I believe most of you have already accounted for in your models. And my EPS guidance for Q4 assumes a base tax rate of 19%. As always, one-time tax events could cause actual tax rates to vary from my guidance, like they did last year. So, with that, non-GAAP EPS is expected to be down 2% or -- to flat and be between $1.62 and $1.66.And with that, I'll turn it over to Larry for his comments.Larry Ellison -- Chairman and Chief Technology OfficerThank you, Safra. Well, Oracle signed another big Generation 2 cloud infrastructure contract with Nvidia in Q3. Oracle's Gen2 AI infrastructure business is booming. That's become pretty clear to everybody.But in addition to selling infrastructure for training AI large language models, Oracle is also completely reengineering its industry-specific applications to take full advantage of generative artificial intelligence. The best example of this is in healthcare, where Oracle did not just add a bit of AI around the edges of existing applications. Instead, we developed completely new applications using our APEX application generator and our autonomous database. These all-new applications use generative AI throughout the application. The best example is in healthcare, where our new ambulatory clinic system is being delivered to customers this Q4. This completely new application features a voice interface called the Clinical Digital Assistant.The Clininal Digital Assistant listens to a doctor's consultations with a patient and automatically generates prescriptions, doctor's orders, doctor's notes, then automatically updates the patient's electronic health records. The Clinical Digital Assistant's voice interface makes our new healthcare systems dramatically easier to use and saves hours of doctors' precious time every day, which now can be spent with patients rather than typing into a computer. The delivery of our new AI-centric healthcare cloud applications, including the ambulatory clinic system, the Clinical Digital Assistant, and the health data intelligence system, will enable the rapid modernization of our customer's healthcare systems and transform Oracle Health and Cerner into a high-growth business for years to come. Ken, back to you.Safra Catz -- Chief Executive OfficerWe don't hear you, Ken.Ken Bond -- Head of Investor RelationsThank you. Thank you, Larry. Sorry about that. Krista, if you could please poll the audience for questions and if we could proceed from there.Thank you.Questions & Answers:OperatorAbsolutely. [Operator instructions] Your first question comes from the line of John DiFucci from Guggenheim Securities. Please go ahead.John DiFucci -- Guggenheim Partners -- AnalystThank you. Safra, the infrastructure-as-a-service growth of 49% implies a Herculean increase in new business coming online, new ARR, the way we model it anyway, something I just thought you wouldn't be able to do this quarter given -- given how much you had to do, though we realized we don't know the timing of when deals come online. But last quarter, you said you were going to reallocate resources to focus on some of these very large OCI deals to get them implemented earlier, so you start to get revenue earlier. Is that what happened this quarter? Is that what we're seeing, or is that still -- is that still to come?Safra Catz -- Chief Executive OfficerI honestly, John, that is still to come. So, this is just pretty much our regular-way business. That's what you're seeing. We have enormous amounts of demand.I tried to make that clear last quarter. And we have more capacity coming online, but we had tried to -- you know, we tried to focus on much larger chunks of data center capacity and electricity and all of that. And that's just -- that's all to come. This is really our regular-way business and our customers just growing. And a whole bunch of new customers, by the way, I think they're there are many many customers who have come on and -- that haven't gotten capacity yet.We've got at least 40 new AI bookings that are over a billion that haven't come online yet.John DiFucci -- Guggenheim Partners -- AnalystThat sounds --Larry Ellison -- Chairman and Chief Technology OfficerJohn, that's --John DiFucci -- Guggenheim Partners -- AnalystGo ahead, Larry. Sorry.Larry Ellison -- Chairman and Chief Technology OfficerOK, I'm -- let me -- let me add that Oracle is building data centers at a record level. And -- and a lot of people, I think, are aware that we can build fairly small data centers to get started when we want to that -- but the unique thing about Oracle's data centers, they're all identical except for scale. You do not have custom data centers. They all have all the Oracle services. They are all complete -- one of the things that's unusual about them, they're all completely automated.They come up on their own and they kind of run themselves. I mean, look, we do have a bunch of people, you know, working on -- working on these data in these -- on these data centers, but they are extremely high -- they're highly automated. Our operating system is autonomous Linux. Our database is the Oracle Autonomous Database.Our new HeatWave database, Microsoft -- MySQL Heatwave, is highly automated, and therefore, we can build -- build -- every time we build a data center, it's like the data center we built before except for one thing, scale. We can go very small. We can get a full cloud data center with all the services and 10 racks -- racks. But this is what I want to point out.We're also building the largest data centers in the world that we know of . We're building an AI data center in the United States where you could park eight Boeing 747 nose-to-tail in that one data center. So, we are building large numbers of data centers, and we -- and some of those data centers are smallish, but some of those data centers are the largest AI data centers in the world. So, we're bringing on enormous amounts of capacity over the next 24 months. Because the -- the demand the demand is so high, we -- we need to do that to just satisfy our existing set of customers.Give you an idea, one more thing, in terms of data centers, we're building 20 data centers from Microsoft and Azure. They just ordered three more data centers this quarter. They're adding -- they're adding to that already. And there are other multi-cloud agreements that are being signed.There are multi-cloud -- a number of multi-cloud agreements in Japan where computer manufacturers in Japan are adopting our cloud and will be reselling our cloud as partners. And we think NRI is already doing that, but there are a number of other companies that are going to be doing that. So, that's something we're seeing over demand for data centers of people who want to buy Alloy and then resell our -- our cloud services with their -- with their proprietary cloud services on top of it, you know, we're seeing that. So, some of our largest customers all over the world want their own Oracle region. They don't want to share a public cloud. They want they -- they want a cloud region dedicated -- or actually, multiple cloud regions dedicated to that bank or that -- or that technology company or that -- or that telephone company.So, they're building their own data centers, which are -- those are -- those are Oracle Cloud data centers. They are -- they're all identical, so we're able to automate and run those with not a lot of additional labor costs. It's a huge advantage for us.John DiFucci -- Guggenheim Partners -- AnalystWell, thank you, Larry and Safra. And, listen, what you put up this quarter in infrastructure as a service, it just looks pretty impressive, but it sounds like there's a lot more to come. Thank you for taking my question.Larry Ellison -- Chairman and Chief Technology OfficerJohn, my last comment will be -- would be the growth in RPO is what's to come. And RPO is obviously growing faster than revenue because we can't meet the demand. That's -- that's the measure of demand. The 80 billion RPO is quite a -- an acceleration of demand.So, demand is not slowing down, it's actually increasing quite a bit.John DiFucci -- Guggenheim Partners -- AnalystWell, there are a lot of questions on that last quarter, and I guess there won't be any on this one. Thank you.Ken Bond -- Head of Investor RelationsThank you, John. Next question, please.OperatorYour next question comes from the line of Raimo Lenschow from Barclays. Please go ahead.Raimo Lenschow -- Barclays -- AnalystHey, thank you, and congrats from me as well. I wanted to talk a little bit about Cerner. In the announcement, you talked about the most of Cerner now, is -- is running out of your OCI. Well, first of all, there's a very quick turnaround here, well done.What's kind of the implications for that, both from running efficiency but also innovation on the platform? Thank you.Larry Ellison -- Chairman and Chief Technology OfficerWell, two things. One is we save a huge amount of money moving them into our standard data center, right, because our OCI -- OCI costs are much lower than the cost of the Cerner-dedicated data center in Kansas City. Also, the big thing that we're excited about is OCI is highly secure. It's got a highly secure perimeter. And therefore, those -- you know, those applications are much less vulnerable to ransomware or other kind of attacks than if they were in a different kind of data center.So, we're very happy that these are now secured. The -- the third thing is now that they're in our cloud, we're able to update those applications on our regular -- on a regular three-month cadence. So, we're able to modernize those customers that are in the cloud on a regular basis and start delivering our -- our brand-new applications, the completely rewritten Cerner application, first, for ambulatory clinics and then eventually for acute care hospitals. And the ambulatory clinic system is coming out this quarter. And we're able to automatically deliver the -- you know, that system to existing customers. It's not a reimplementation, it is literally an update to what they've already got running in the Oracle Cloud. Even though it's an all-new application, I'm not going into much technical detail, but it uses the same underlying data schema.So, we literally can bring up the new application, you know, without the customer having to go through any implementation process. We can do it just as an update, like when we ship a new version of Fusion to an existing Fusion customer. We can now ship a new version of an all-new version of the Cerner application to a Cerner customer in OCI. So, it allows us to modernize their infrastructure very very rapidly, deliver the voice -- Clinical Digital Assistant, make the system easier to use, save doctors' time, deliver a lot more value, put in the diagnostic, imaging systems.The health data intelligence system deliver all of that automatically on a regular three-month cadence. So, it allows us to modernize the Cerner base very very quickly while keeping them safe from ransomware.Raimo Lenschow -- Barclays -- AnalystPerfect. Thank you.OperatorYour next question comes from the line of Ben Reitzes from Melius Research. Please go ahead.Ben Reitzes -- Melius Research -- AnalystYeah, thanks. It's a pleasure to be speaking with you this afternoon. Larry and Safra, can you talk a little bit about capex? It -- your guidance implies a almost doubling of capex in the fourth quarter. And then, what kind of trajectory is needed for the next fiscal year given this RPO growth, what kind of uptick is needed? And, Larry, if you don't mind, you know, what -- if you can give some color on, you know, GPU availability and how that plays in versus data center requirements in terms of that spending.Thanks so much.Safra Catz -- Chief Executive OfficerSo, for fiscal year -- for fiscal year '25, I'm looking at about 10 billion in capex because it also involves, not only some big centers, but it also involves expansion of existing centers. So, we've already got some areas that will be filling out. So, at least preliminarily, we're looking at 10 billion for next year. And then, you know, it's -- it's not too complicated to figure out the math here when I'm looking at somewhere between 7 billion and 7.5 billion for the -- for the full year. And you've got all the numbers for Q1, 2, and 3 at this point.And I would include, for Q3, the one we just turned down, saying, I would, you know, add in the amount we haven't paid yet as -- as the capex number for this quarter, OK? And that gets -- yeah, that would be -- and then, Larry gets the second question. But anyway, so 2.1 for this quarter and -- and you've got Q1 and Q2, and I'm going to be somewhere between 7 billion and 7.5 billion for the full year, which is actually a little bit lower than -- than I thought. But we -- we were able to do pretty well, you know, how we spend very carefully.Ben Reitzes -- Melius Research -- AnalystGreat. Thanks. And, Larry, the -- the amount that -- you know, how's the GPU availability in terms of you hitting your goals and, you know, vis a vis, you know, other bottlenecks that could be out there?Safra Catz -- Chief Executive OfficerCan I take at least part of this?Ben Reitzes -- Melius Research -- AnalystOh, yeah, sure.Safra Catz -- Chief Executive OfficerThe GPU, we are good. We are actually very good in -- in our GPU access and capabilities. So, building the computers, and -- and that it's much more making sure we've got the power on that.Larry Ellison -- Chairman and Chief Technology OfficerYeah, thank you, Safra. Safra says we have a great relationship with Nvidia. You know, they're -- they're a customer of ours, as well as us being a customer of theirs, and we work very closely together, So, that's going pretty well. Building these -- let me -- the scale of some of these data centers is breathtaking.Again, the one we're building in Salt Lake, again, you -- you can park eight 747s nose-to-tail. We can give you a video of this -- of this thing under construction, but it's hard -- I mean, it's breathtaking. So, there's a tremendous amount of demand. The data centers take longer to build than we would like.That's -- That said, we are getting very good at building them quickly. And -- and getting the building and the power and the communication links in, we're doing faster than we have ever had in the past. And the thing is, once we deliver the hardware, the hardware comes up very very quickly because the -- the process of bringing up the hardware is now all automated. It's very different than it used to be. So, we're able to bring additional capacity online very quickly if we have the -- the electric power and the communication lines. So, the long pole in the tent is actually building the -- building the structure, connecting the electricity, and connecting the communication links.Ben Reitzes -- Melius Research -- AnalystThanks, Larry. Appreciate it. Congrats on the OCI growth.Larry Ellison -- Chairman and Chief Technology OfficerThank you.OperatorYour next question comes from the line of Derrick Wood from TD Cowen. Please go ahead.Derrick Wood -- TD Cowen -- AnalystGreat. Thank you. Larry, just within the last few months, you guys have enabled Oracle Database and OCI to be run on top of Azure, which seems like a fairly significant development. Can you talk about what the customer reception has been around this announcement, how you think it could change the arc of new investments on the Oracle database platform, and what this means for potentially unlocking a stronger adoption cycle for autonomous database?Larry Ellison -- Chairman and Chief Technology OfficerWell, I think it is the key to unlocking a stronger adoption cycle for -- move a -- moving Oracle in general -- to the cloud in general and the -- specifically the migration to Autonomous Database. Oracle, we expect the multi-cloud initiative to continue to expand that we're seeing it expand in Japan, but we expected to expand among other hyperscalers, to adopt a similar -- you know, a similar multi-cloud approach where we build -- we build OCI regions inside of and coexisting -- with their existing cloud infrastructure. We think the world -- the era of walled gardens is coming to an end, where it used to be, OK, I'm going to move all my stuff to AWS or I'm going to move all my stuff to Azure. What customers really want is the ability to use multiple clouds and for those multiple clouds to talk to one another. And I think -- I mean, in the era of the internet and now cloud computing -- it is really called cloud computing.; it's not called a bunch of separate clouds.The -- so, we expect multiple cloud to become the norm and Oracle to be available everywhere. And we think that -- and back to what you said, we think that will preserve our franchise and database where we've been the No. 1 database in the IT ecosystem for a very long time. We think that's going to preserve that franchise and expand it because the Autonomous Database is a unique piece of technology, and there's nothing like it in the world. And maybe the most interesting thing, no one else is working on anything like that.No one else is even trying to duplicate the autonomous database. So, we think it will be -- it will become a very successful product in every cloud.Derrick Wood -- TD Cowen -- AnalystThanks, Larry.OperatorYour next question comes from the line of Kirk Materne from Evercore ISI. Please go ahead.Kirk Materne -- Evercore ISI -- AnalystYeah, thanks very much for taking the questions, and congrats on an incredible bookings quarter. Larry, I wonder if you can just talk a little bit about the interest level on Alloy in international markets where there might be a bit of a premium on data sovereignty and, you know, maybe how that's impacting the growth opportunity for OCI when we look out toward the balance of calendar '24. Thanks.Larry Ellison -- Chairman and Chief Technology OfficerWell, I think Japan is maybe the most interesting market where we -- we had early success with NRI. You know, they -- you know, they run the Tokyo Stock Exchange. You know, what NRI has is just -- is an Oracle -- a couple of Oracle cloud regions, which they resell in the financial services community inside of Japan. And one of their applications is -- is a major stock exchange, the Tokyo Stock Exchange. So, think about how many clouds run stock exchanges, that would be ours.It's got to be highly secure. It can never go down. It's got to have extremely high transaction rates. We can do that.And the success of NRI has caused other -- the other computer companies in Japan to become very very interested and also reselling our cloud with -- and -- and we also have the ability that they can add on some of their own technology to our cloud. So, our cloud is open, so you can plug in other things to the cloud. So, imagine a big computer company in Japan adopting the Oracle Cloud, reselling autonomous database, reselling all of our technologies because all we -- we only make one kind of cloud. They're all the same, and they have all of the services, but then that company can add their own services to their -- for their customers. We think all of the cloud companies in Japan are going to adopt OCI, plus a lot of big companies -- or big car companies in Japan will want -- want their own. The phone companies in Japan will want their own. The technology companies in Japan will want their own Oracle regions and because they're sovereign, because they're highly secure, and because they're highly cost-effective.So, we think this allows us to enter a variety of new markets. Every government -- pretty much every government is going to want a sovereign cloud and a dedicated region for that government for not only -- so, we see a number of countries -- you know, it's funny we talk about, you know, winning business with companies. For the first time, we're beginning to win business country -- for countries, you know, for the -- for sovereign clouds where the national government and the state governments are moving to that Oracle OCI region. And of course, it's got to be at least two of them for redundancy, for, you know -- and in case of disaster and disaster recovery. So, we have a number of countries where we're -- we're negotiating, you know, sovereign regions with the national government.We see that time and time again, major companies, governments, computer -- computer suppliers, reselling our -- our Alloy cloud. The demand for our cloud regions is extraordinarily high. I believe we will end up -- this is a funny prediction, but OK, we'll end up with more data centers and cloud regions than all the other hyperscalers combined [Inaudible].Safra Catz -- Chief Executive OfficerYeah. Sure. I think -- just to make sure you have all the numbers between Alloy and dedicated regions, we've got 13 live, we've got 18 under construction, and we've signed five new ones just this past quarter. So, for us, it's -- they're -- they're just -- there's just a list we're going through and trying to get them all because they are such a unique capability and in such high demand.Larry Ellison -- Chairman and Chief Technology OfficerAnd let me -- let me just have one last thing. Microsoft does not compete for this business. AWS does not compete for this business. Google does not compete for this business.We're the only ones in this business.Kirk Materne -- Evercore ISI -- AnalystThank you, all.OperatorOur final question today comes from Brad Zelnick from Deutsche Bank. Please go ahead.Brad Zelnick -- Deutsche Bank -- AnalystThanks very much for taking my question. Larry, my question actually follows on your answer to Kirk's question because I think it's so important. You know, in talking to one of your GSI partners, we heard about a global public sector solution that they referred to as government in a box, where Oracle, in partnership with the likes of Starlink, the Tony Blair project, are building solutions on top of OCI, including apps and tech and even Cerner to literally run entire country's digital operations. So, hoping you can -- you can add even a little bit more color about what you're doing here, how big an opportunity it is, because it just seems like such a powerful example of the entire Oracle Cloud stack coming together in a very meaningful way.Larry Ellison -- Chairman and Chief Technology OfficerWell, it is really really -- it's very interesting and we've gone into the, you know, government -- national government and state government applications in a very very big way. To give you an idea, a little glimpse of what we're doing. Yes, we -- because we can deliver these cloud regions to medium-sized countries, so, for example, Serbia, is standardizing on -- or these Oracle cloud regions for, you know, for the -- for the national government, we're automating their healthcare. And people know that when -- we're in the healthcare business.What they might not know is, in cooperation with Starlink, we're able to deliver on an internet service to -- for the entire country, rural -- you know, the rural part of the country. By the way, we can deliver the internet and we have delivered the internet to, let's say, Kenya or Rwanda very inexpensively using Starlink and our -- and our sovereign cloud regions to back -- backhaul the internet -- the internet -- internet traffic. So, you can bring every school in Serbia online, has internet connectivity. Even if they're rural, doesn't matter, every school, every hospital.It's true of Rwanda, that's true of Kenya. We can do it very very cost effectively. And one of the applications we have for agriculture, we actually do a national map of the country where we can show you each of the farms in the country, what their -- this farm is growing coffee, this farm is growing maize, this farm -- which part of the fields are -- are getting enough nitrogen, which part of the fields are getting enough water, what corrective actions you need to take to increase your agricultural output. We're doing that, again, in concert with Elon Musk and SpaceX to do this kind of mapping to provide this a -- this AI-assisted. And then, these maps are AI-assisted, help them plan their agricultural output and predict their agricultural output, predict markets, the logistics of the agricultural output, doing all of all of those things as next-generation national applications.And it is one of the most exciting things we're doing. Of course, we do procurement and accounting, and human resources and recruiting, you know, for the government, we do all of those applications, but it's some of the newer applications regarding food security, so making sure all the schools are online -- rural schools are online, that rural hospitals are online. It's automating those -- those rural hospitals. It's automating their vaccination program, their healthcare program across the board. These next-generation applications are very attractive. I'll tell you one other crazy thing that we do.We're -- another generative AI application. If you want to join the EU -- it took Serbia eight years to harmonize their laws to be able to join the EU. Albania is facing the same thing, but with generative AI, we can read the entire corpus of the Albanian laws and -- and actually harmonize their laws with the EU in probably more like 18 months to two years rather than the eight years it took Serbia. So, there are all sorts of interesting new AI applications out there that people you -- you've probably never heard of before, at least I hadn't heard of before until these last 12 months now that we've worked on and we're now in the process of delivering.Brad Zelnick -- Deutsche Bank -- AnalystReally amazing stuff, Larry. Thank you and congrats. And, Safra, really great to see the firm reiteration of your fiscal '26 targets. Thanks so much for taking my question.Safra Catz -- Chief Executive OfficerThank you.Ken Bond -- Head of Investor RelationsThank you, Brad. A telephonic replay of this conference call will be available for 24 hours on our Investor Relations website. Thank you for joining us today. And with that, I'll turn the call back to Krista for closing.Operator[Operator signoff]Duration: 0 minutesCall participants:Ken Bond -- Head of Investor RelationsSafra Catz -- Chief Executive OfficerLarry Ellison -- Chairman and Chief Technology OfficerJohn DiFucci -- Guggenheim Partners -- AnalystRaimo Lenschow -- Barclays -- AnalystBen Reitzes -- Melius Research -- AnalystDerrick Wood -- TD Cowen -- AnalystKirk Materne -- Evercore ISI -- AnalystBrad Zelnick -- Deutsche Bank -- AnalystMore ORCL analysisAll earnings call transcriptsThis article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.The Motley Fool has positions in and recommends Oracle. The Motley Fool has a disclosure policy.Oracle (ORCL) Q3 2024 Earnings Call Transcript was originally published by The Motley Fool

Motley Fool

Oracle (ORCL) Q3 2024 Earnings Call Transcript

https://finance.yahoo.com/news/oracle-orcl-q3-2024-earnings-003015956.html

5c0a1f4a-f9b2-3524-949f-149c4ce45c4e

ORLY

A Relative Strength Rating upgrade for O'Reilly stock shows improving technical performance. Will it continue?Continue reading

Investor's Business Daily

O'Reilly Stock Rises Again, Trading Near All-Time High

https://finance.yahoo.com/m/84ec9bac-c1a1-3d9e-93fd-fc2dedd5f124/o-reilly-stock-rises-again-.html

84ec9bac-c1a1-3d9e-93fd-fc2dedd5f124

ORLY

Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.2 Stocks to Add to Your WatchlistThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure.Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Lowe's (LOW) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $1.73 a share, just 21 days from its upcoming earnings release on March 6, 2024.Lowe's' Earnings ESP sits at 2.84%, which, as explained above, is calculated by taking the percentage difference between the $1.73 Most Accurate Estimate and the Zacks Consensus Estimate of $1.68.LOW is just one of a large group of Retail-Wholesale stocks with a positive ESP figure. O'Reilly Automotive (ORLY) is another qualifying stock you may want to consider.O'Reilly Automotive, which is readying to report earnings on April 24, 2024, sits at a Zacks Rank #3 (Hold) right now. It's Most Accurate Estimate is currently $9.22 a share, and ORLY is 70 days out from its next earnings report.Story continuesThe Zacks Consensus Estimate for O'Reilly Automotive is $9.21, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of 0.02%.Because both stocks hold a positive Earnings ESP, LOW and ORLY could potentially post earnings beats in their next reports.Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportLowe's Companies, Inc. (LOW) : Free Stock Analysis ReportO'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

How to Boost Your Portfolio with Top Retail-Wholesale Stocks Set to Beat Earnings

https://finance.yahoo.com/news/boost-portfolio-top-retail-wholesale-140006654.html

cc14912a-c77f-37a4-9431-e027c6bf3007

ORLY

A month has gone by since the last earnings report for O'Reilly Automotive (ORLY). Shares have added about 6.7% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is O'Reilly Automotive due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.O'Reilly Q4 Earnings Beat Estimates, Sales MissO’Reilly reported fourth-quarter 2023 adjusted earnings per share of $9.26, beating the Zacks Consensus Estimate of $9.07. The bottom line increased from $8.37 per share in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $3,832 million, marginally missing the Zacks Consensus Estimate of $3,838 million. The top line, however, increased 5.2% year over year.During the quarter, comparable store sales grew 3.4%. The company opened 47 new stores in the United States and Mexico. The total store count was 6,157 as of Dec 31, 2023.Financials, Share Repurchase & CostsIn the reported quarter, selling, general and administrative expenses flared up 6.6% year over year to $1.25 billion. Operating income rose to $718.7 million from $682.2 million generated in the year-ago period. Net income was roughly $552.5 million, up from $528.6 million in the year-ago quarter.During the reported quarter, O’Reilly repurchased 0.6 million shares for $560 million at an average price of $922.86 per share. After the end of the quarter until the release date, ORLY repurchased an additional 0.1 million shares of common stock for a total investment of $102 million at an average price of $967.63 per share. As of Feb 7, the company had nearly $2.47 billion remaining under the current share repurchase authorization.It had cash and cash equivalents of $279.1 million at the end of the reported quarter, up from $108.6 million recorded as of 2022-end. Its long-term debt was $5.57 billion, higher than $4.37 billion as of Dec 31, 2022.Story continuesDuring the reported quarter, O’Reilly generated $516.4 million in cash from operating activities, down from the year-ago period’s $795.2 million. Capital expenditures totaled $252.3 million, rising from $174.5 million in the year-ago period. Free cash flow came in at $256 million, indicating a decline of 40% year over year.2024 OutlookFor 2024, O’Reilly envisions total revenues in the range of $16.8-$17.1 billion, up from $15.8 billion reported in 2023. Earnings per share are expected in the range of $41.05-$41.55, up from $38.47 reported in 2023. The comparable store sales growth is expected between 3% and 5%. Free cash flow is projected in the band of $1.8-$2.1 billion. Capital expenditures are expected between $900 million and $1 billion. The company intends to open 190-200 stores this year.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.VGM ScoresAt this time, O'Reilly Automotive has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, O'Reilly Automotive has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportO'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Is O'Reilly Automotive (ORLY) Up 6.7% Since Last Earnings Report?

https://finance.yahoo.com/news/why-oreilly-automotive-orly-6-163047214.html

4b549c2b-e9d3-31f3-9c15-9dd1934e441f

ORLY

In this article, we will be taking a look at the 20 biggest retail companies in the US. If you want to skip our detailed analysis of the retail industry, you can go directly to see the 5 Biggest Retail Companies in the US.The Global Retail Industry at a GlanceThe global retail industry drives consumer spending, contributes to GDP growth, and employs a large number of people globally. According to a report by Mordor Intelligence, the global retail industry is expected to reach a value of $32.68 trillion in 2024. The market is expected to grow at a compound annual growth rate (CAGR) of 7.65% from 2024 to 2029 and reach a value of $47.24 trillion by the end of the forecasted period.Rising disposable income and increased consumer spending are key factors creating a positive outlook for the market. Innovation in retail technology, including artificial intelligence (AI), augmented reality (AR), virtual reality (VR), and the Internet of Things (IoT), is fueling market growth. These technologies are expected to become more prominent to enhance the customer experience and meet changing consumer preferences during the forecasted period.Key Market Players in the US Retail SectorSome of the most prominent names in the US retail industry are Walmart Inc. (NYSE:WMT), Amazon.com Inc. (NASDAQ:AMZN), and Costco Wholesale Corporation (NASDAQ:COST). Let's discuss these companies in detail below.Costco Wholesale Corporation (NASDAQ:COST) is a retail company that operates a chain of membership-only warehouses and retail stores. It offers quality merchandise at discounted prices by selling in bulk at lower margins. Costco Wholesale Corporation (NASDAQ:COST) is one of the largest retailers in the world and it ranks high among the best discount retailer stocks to buy as well. On March 7, Costco Wholesale Corporation (NASDAQ:COST) reported strong earnings for the fiscal second quarter of 2024. The company reported earnings per share (EPS) of $3.71, surpassing EPS estimates by $0.07. The company reported a revenue of $58.44 billion. Here are some comments from Costco Wholesale Corporation's (NASDAQ:COST) earnings call regarding its plans for fiscal 2024:Story continues"And that puts the remainder of fiscal 2024 for Q3 and Q4, we plan on opening a total of 15 net new locations, 11 in the US, two in Japan, and one each in Korea and in China. Regarding CapEx, fiscal second quarter spend was approximately $1.03 billion. And for the year, it remains in the north of $4.4 billion to $4.6 billion, in that range." Retail companies are embracing data analytics and customer insights to offer personalized shopping experiences. Technological innovations are further expected to enhance customer satisfaction. Amazon.com Inc. (NASDAQ:AMZN) is an American multinational online retail and technology company. It specializes in e-commerce, online marketing, cloud computing, and artificial intelligence. Amazon.com Inc. (NASDAQ:AMZN) is one of the best internet retail stocks to buy. On January 16, CNBC reported that Amazon.com Inc. (NASDAQ:AMZN) has introduced an artificial intelligence (AI) tool that can answer shoppers’ questions about specific products. The new feature, available on Amazon.com Inc.’s (NASDAQ:AMZN) mobile app, will quickly provide answers by summarizing information collected from product reviews and listings. This tool can help shoppers avoid scrolling through pages of reviews to find information about an item.Retailers are also working on optimizing delivery processes to enhance customer experience. On March 7, Walmart Inc. (NYSE:WMT) announced the launch of a new On-Demand Early Morning Delivery service to help customers save time and offer convenience. Starting as early as 6 AM, this innovative solution will allow customers to receive their orders within 30 minutes, providing an early and quick solution for their shopping needs. With a wide range of items available both in-store and online, customers can easily access products like fashion, furniture, baby essentials, and more during the early morning hours. This initiative is part of Walmart Inc.’s (NYSE:WMT) ongoing efforts to enhance customer experiences and streamline delivery services.Now that we have discussed what’s going on in the retail industry, let’s take a look at the 20 biggest retail companies in the US.20 Biggest Retail Companies in the USA wide view of an aisle in a specialty retailer, filled with licensed pop culture products, vinyls and action figures.MethodologyIn this article, we have listed the 20 biggest retail companies in the US. To find the top retail companies in America, we sifted through various sources including industry reports, our own rankings in addition to rankings available on various websites, and consulted stock screeners from Yahoo Finance and Finviz. For companies that are publicly traded, we decided to rank them according to their market capitalization as of March 8, 2024. We used fiscal year revenues to rank the companies that are not publicly traded. Finally, we narrowed down our selection to rank the 20 biggest retail companies in the US based on their market capitalization and revenues, which are listed below in ascending order.20 Biggest Retail Companies in the US20. Williams-Sonoma Inc. (NYSE:WSM)Market Capitalization: $15.87 BillionWilliams-Sonoma Inc. (NYSE:WSM) is an American consumer retail company that ranks among the top 20 biggest retail companies in the US. The company owns a number of brands and it sells kitchenware, appliances, and home furnishings. It operates retail stores in the US, Canada, Australia, and the United Kingdom. Williams-Sonoma Inc. (NYSE:WSM) has a market capitalization of $15.87 billion as of March 8, 2024.19. Best Buy Co. Inc. (NYSE:BBY)Market Capitalization: $17.12 BillionBest Buy Co. Inc. (NYSE:BBY) is an American consumer electronics retailer. As one of the world’s largest specialty consumer electronics retailers, it has more than 1,000 stores in the US and Canada. As of March 8, 2024, Best Buy Co. Inc. (NYSE:BBY) has a market capitalization of $17.12 billion.18. Walgreens Boots Alliance Inc. (NASDAQ:WBA)Market Capitalization: $18.05 BillionWalgreens Boots Alliance Inc. (NASDAQ:WBA) is an integrated healthcare, pharmacy, and retail company. As one of the world’s biggest pharmacy retailers, it has over 12,500 locations in the US, Europe, and Latin America. Walgreens Boots Alliance Inc. (NASDAQ:WBA) has a market capitalization of $18.05 billion as of March 8, 2024. It ranks 18th on our list of the 20 biggest retail companies in the US.17. Ulta Beauty Inc. (NASDAQ:ULTA)Market Capitalization: $26.62 BillionUlta Beauty Inc. (NASDAQ:ULTA) is an American chain of beauty stores. As one of the largest beauty retailers in the US, it sells prestige cosmetics, fragrances, skincare, and hair care products. As of March 8, 2024, Ulta Beauty Inc. (NASDAQ:ULTA) has a market capitalization of $26.62 billion.16. Tractor Supply Company (NASDAQ:TSCO)Market Capitalization: $26.88 BillionTractor Supply Company (NASDAQ:TSCO) is an American retail chain of stores that sells products for agriculture, lawn and garden maintenance, home improvement, and livestock and pet care to home, land, pet, and animal owners. The company operates more than 2,200 stores in 49 states. As one of the top retail companies in the US, Tractor Supply Company (NASDAQ:TSCO) has a market capitalization of $26.88 billion as of March 8, 2024.15. Dollar Tree Inc. (NASDAQ:DLTR)Market Capitalization: $32.68 BillionDollar Tree Inc. (NASDAQ:DLTR) is an American retail corporation that operates a chain of discount variety stores. It ranks among the top 15 on our list of the biggest retail companies in the US. With more than 16,000 stores, Dollar Tree Inc. (NASDAQ:DLTR) operates in all 48 contiguous states and 5 Canadian provinces. As of March 8, 2024, Dollar Tree Inc. (NASDAQ:DLTR) has a market capitalization of $32.68 billion.14. Dollar General Corporation (NYSE:DG)Market Capitalization: $34.88 BillionDollar General Corporation (NYSE:DG) is a major discount retailer that operates a chain of variety stores. With more than 19,000 stores in the US, the corporation offers low prices on a wide variety of items including, food, snacks, cleaning supplies, housewares, and basic apparel. Dollar General Corporation (NYSE:DG) has a market capitalization of $34.88 billion as of March 8, 2024.13. The Kroger Co. (NYSE:KR)Market Capitalization: $39.94 BillionThe Kroger Co. (NYSE:KR), commonly known as Kroger, is an American retail company that ranks 13th on our list of the biggest retail companies in the US. It operates retail stores, supermarkets, and multi-department stores. It also operates 170 fine jewelry stores and more than 2,200 pharmacies. As one of the largest retailers in the US, The Kroger Co. (NYSE:KR) has a market capitalization of $39.94 billion as of March 8, 2024.12. Ross Stores Inc. (NASDAQ:ROST)Market Capitalization: $49.16 BillionRoss Stores Inc. (NASDAQ:ROST), operating under the brand name Ross Dress for Less, is one of the largest off-price retail chains in the US. Through its chain of discount department stores, it provides branded and designer apparel, accessories, footwear, and home fashions. As of March 8, 2024, Ross Stores Inc. (NASDAQ:ROST) has a market capitalization of $49.16 billion.11. AutoZone Inc. (NYSE:AZO) Market Capitalization: $54.08 BillionAutoZone Inc. (NYSE:AZO) is an American retailer and distributor of automotive replacement parts and accessories. It provides auto and truck parts, chemicals, and accessories through more than 6,000 store locations in the US. As one of the top retail companies in the United States, AutoZone Inc. (NYSE:AZO) has a market capitalization of $54.08 billion as of March 8, 2024.10. Publix Super MarketsRevenue: $57.1 BillionPublix Super Markets, or simply Publix, is a private company that ranks among the top 10 on our list of the biggest retail companies in the US. With more than 1,300 store locations, Publix Super Markets is the largest employee-owned supermarket chain in the United States. In 2023, Publix Super Markets generated a revenue of $57.1 billion.9. O'Reilly Automotive Inc. (NASDAQ:ORLY)Market Capitalization: $64.31 BillionO'Reilly Automotive Inc. (NASDAQ:ORLY) is an American auto parts retailer. It is a major supplier of automotive aftermarket parts, equipment, supplies, tools, and accessories to professional service providers and do-it-yourself customers. It currently has more than 6,000 stores in 48 US states and Puerto Rico and over 60 stores in Mexico. As of March 8, 2024, O'Reilly Automotive Inc. (NASDAQ:ORLY) has a market capitalization of $64.31 billion.8. Target Corporation (NYSE:TGT)Market Capitalization: $79.19 BillionTarget Corporation (NYSE:TGT) is an American retail corporation. As one of the largest retailers in the US, it operates a chain of discount department stores and hypermarkets. With more than 1,900 stores in the US and a market capitalization of $79.19 billion as of March 8, 2024, Target Corporation (NYSE:TGT) ranks 8th on our list of the 20 biggest retail companies in the US.7. CVS Health Corporation (NYSE:CVS)Market Capitalization: $93.5 BillionCVS Health Corporation (NYSE:CVS) is an American healthcare company that provides healthcare and retail pharmacy services. It offers a variety of products and services through its brands including Aetna, CVS Caremark, and CVS Pharmacy. CVS Pharmacy is one of the largest retail pharmacy chains in the US. CVS Health Corporation (NYSE:CVS) has a market capitalization of $93.5 billion as of March 8, 2024.6. The TJX Companies Inc. (NYSE:TJX)Market Capitalization: $109.13 BillionThe TJX Companies Inc. (NYSE:TJX) is an American multinational off-price department store corporation that offers deep discounts on selections of high quality, fashionable, brand name and designer merchandise. It is a major off-price retailer of apparel and home fashions in the US. The TJX Companies Inc. (NYSE:TJX) has more than 4,800 stores and the company has a presence in nine countries. With a market capitalization of $109.13 billion as of March 8, 2024, it ranks 6th on our list of the 20 biggest retail companies in the US.Click to continue reading and see 5 Biggest Retail Companies in the US.Suggested Articles:Top 20 Most Valuable Fintech Companies in the US25 Most Valuable Tech Companies Outside The US30 Largest Companies in the World by RevenueDisclosure: None. 20 Biggest Retail Companies in the US is published on Insider Monkey.

Insider Monkey

20 Biggest Retail Companies in the US

https://finance.yahoo.com/news/20-biggest-retail-companies-us-171425916.html

1b98d316-510b-3559-bc15-17f01fd77551

OTIS

Have you been paying attention to shares of Otis Worldwide (OTIS)? Shares have been on the move with the stock up 3.9% over the past month. The stock hit a new 52-week high of $92.93 in the previous session. Otis Worldwide has gained 3.3% since the start of the year compared to the 5.2% move for the Zacks Construction sector and the 8.6% return for the Zacks Building Products - Miscellaneous industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 31, 2024, Otis Worldwide reported EPS of $0.87 versus consensus estimate of $0.85.For the current fiscal year, Otis Worldwide is expected to post earnings of $3.87 per share on $14.71 billion in revenues. This represents a 9.32% change in EPS on a 3.52% change in revenues. For the next fiscal year, the company is expected to earn $4.28 per share on $15.42 billion in revenues. This represents a year-over-year change of 10.81% and 4.82%, respectively.Valuation MetricsOtis Worldwide may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Otis Worldwide has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.Story continuesIn terms of its value breakdown, the stock currently trades at 23.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 18.8X. On a trailing cash flow basis, the stock currently trades at 22.5X versus its peer group's average of 14.4X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Otis Worldwide currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Otis Worldwide fits the bill. Thus, it seems as though Otis Worldwide shares could still be poised for more gains ahead.How Does OTIS Stack Up to the Competition?Shares of OTIS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Masco Corporation (MAS). MAS has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of D.Earnings were strong last quarter. Masco Corporation beat our consensus estimate by 25.76%, and for the current fiscal year, MAS is expected to post earnings of $4.10 per share on revenue of $8.01 billion.Shares of Masco Corporation have gained 10.6% over the past month, and currently trade at a forward P/E of 18.12X and a P/CF of 16.33X.The Building Products - Miscellaneous industry is in the top 6% of all the industries we have in our universe, so it looks like there are some nice tailwinds for OTIS and MAS, even beyond their own solid fundamental situation.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportOtis Worldwide Corporation (OTIS) : Free Stock Analysis ReportMasco Corporation (MAS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Otis Worldwide Corporation (OTIS) Soars to 52-Week High, Time to Cash Out?

https://finance.yahoo.com/news/otis-worldwide-corporation-otis-soars-141510281.html

61318445-03d5-3e13-b6e0-7fb9cb5010ed

OTIS

President of Otis Asia Pacific, Montlivault De, has sold 18,393 shares of Otis Worldwide Corp (NYSE:OTIS) on February 21, 2024, according to a recent SEC Filing. Otis Worldwide Corp is a company that provides elevators, escalators, and moving walkways. The company operates in more than 200 countries and territories, and offers products and services through its subsidiaries.Warning! GuruFocus has detected 3 Warning Sign with BTU.Over the past year, the insider has sold a total of 18,393 shares and has not made any purchases of the company's stock. The insider transaction history for Otis Worldwide Corp shows a pattern of 7 insider sells and 0 insider buys over the past year.On the day of the insider's recent sell, shares of Otis Worldwide Corp were trading at $91.1, resulting in a market capitalization of $37,918.117 billion. The price-earnings ratio of the stock stands at 27.59, which is above both the industry median of 21.72 and the company's historical median price-earnings ratio.The stock's price-to-GF-Value ratio is 1.05, with a GF Value of $86.94, indicating that Otis Worldwide Corp is considered Fairly Valued based on its GF Value. The GF Value is calculated using historical trading multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.Insider Sell: Otis Asia Pacific President Montlivault De Sells 18,393 Shares of Otis Worldwide CorpThe insider trend image above reflects the recent selling activity by insiders at Otis Worldwide Corp.Insider Sell: Otis Asia Pacific President Montlivault De Sells 18,393 Shares of Otis Worldwide CorpThe GF Value image provides an insight into the stock's valuation, suggesting that the current price is in line with the intrinsic value estimated by GuruFocus.This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.This article first appeared on GuruFocus.

GuruFocus.com

Insider Sell: Otis Asia Pacific President Montlivault De Sells 18,393 Shares of Otis Worldwide Corp

https://finance.yahoo.com/news/insider-sell-otis-asia-pacific-042347564.html

7cfe7d7c-4c56-39b8-9bf3-1fe0a18aeec0

OTIS

Otis Worldwide Corporation OTIS, a global leader in elevator and escalator manufacturing, secured a significant contract with Emaar Properties to modernize 34 elevators and eight escalators in the iconic Burj Khalifa, the world's tallest building. This contract also includes servicing all units for an additional decade.Since the installation of the first elevators and escalators in 2010, Otis has been a trusted partner for Emaar Properties, ensuring safe and efficient vertical mobility within the 828-meter-tall structure. The company's expertise has been instrumental in maintaining smooth operations for the supertall building, which features over 160 stories and attracts millions of visitors annually.The Burj Khalifa's original elevators, installed by Otis, include double-deck units capable of speeds up to 10 meters per second, swiftly transporting passengers to the observation deck on the 124th and 125th floors in just 60 seconds.Otis' Elevator Management System (EMS Panorama) played a crucial role in monitoring the performance of the building's elevators and escalators. With the upcoming modernization, a new and improved version of EMS Panorama will offer real-time remote-control capabilities, enhancing operational efficiency and passenger experience by minimizing wait times and optimizing travel.Leveraging its vast experience from modernizing other iconic landmarks worldwide, such as the Empire State Building in the USA and Egee Tower in Paris, Otis aims to execute the Burj Khalifa project seamlessly, ensuring minimal disruption for occupants and visitors alike.Having been part of the UAE for over 50 years, Otis continues to contribute to the region's infrastructure development, reaffirming its commitment to innovation and excellence in vertical transportation.Share Price PerformanceShares of Otis have gained 14.8% over the past six months, underperforming the Zacks Building Products – Miscellaneous industry’s 32.9% rise. Although shares of Otis have underperformed in the industry, the company’s focus on product innovation and business expansion initiatives are expected to drive the company further.Story continuesZacks Investment ResearchImage Source: Zacks Investment ResearchThe company maintained its research and development (R&D) investment in 2023 as well, investing $144 million and 1% of net sales. It invested $150 million in 2022 and $159 million in 2021, particularly for R&D. Otis also invested about $57 million in digital and strategic initiatives in 2023. Otis connects global R&D efforts through an operating model that sets global and local priorities based on customer and segment needs.Zacks Rank and Key PicksOtis currently carries a Zacks Rank #3 (Hold).Here are some better-ranked stocks from the Construction sector.NVR, Inc. NVR currently sports a Zacks Rank of 1 (Strong Buy). The stock has gained 20.3% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.NVR delivered a trailing four-quarter earnings surprise of 8.1%, on average. The Zacks Consensus Estimate for NVR’s 2024 sales and earnings per share (EPS) indicates growth of 7.7% and 4.6%, respectively, from the prior-year levels.Summit Materials, Inc. SUM currently sports a Zacks Rank of 1. SUM delivered a trailing four-quarter earnings surprise of 18.2%, on average. The stock has gained 29.9% in the past six months.The Zacks Consensus Estimate for SUM’s 2024 sales and EPS indicates growth of 80.2% and 53.2%, respectively, from a year ago.Century Communities, Inc. CCS presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 49.2%, on average. Shares of CCS have rallied 13.8% in the past six months.The Zacks Consensus Estimate for CCS’ 2024 sales and EPS indicates a rise of 11.1% and 24.4%, respectively, from the prior-year levels.Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportCentury Communities, Inc. (CCS) : Free Stock Analysis ReportNVR, Inc. (NVR) : Free Stock Analysis ReportSummit Materials, Inc. (SUM) : Free Stock Analysis ReportOtis Worldwide Corporation (OTIS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

OTIS Secures Major Modernization Contract for Burj Khalifa

https://finance.yahoo.com/news/otis-secures-major-modernization-contract-125400494.html

53fdb95d-c5b1-329c-b81d-bd2ed4321107

OTIS

ExlService Holdings, Inc.Bartlett Brings Decades of Executive Leadership Experience; Mittal Completes 10+ Year Service to EXLNEW YORK, March 07, 2024 (GLOBE NEWSWIRE) -- EXL [NASDAQ: EXLS], a leading data analytics and digital operations and solutions company, announced today that Thomas Bartlett has been appointed to EXL’s board of directors as an independent director, effective March 6, 2024. Bartlett will serve on the board’s audit committee and nominating and governance committee.   The company also announced that Som Mittal has notified the board that he will not stand for re-election at EXL’s 2024 annual meeting of stockholders and therefore will be retiring from the board in June 2024.“We are excited to welcome Tom to the board,” said Board Chair Vikram Pandit. “Tom brings a tremendous amount of experience in running a large, high-growth technology-focused organization and we look forward to the insights he will bring.”CEO and Board Vice Chair Rohit Kapoor, said, “Tom has deep expertise in scaling growth as demonstrated in the expansion of American Tower from around $10 billion to $100 billion in market capitalization under his leadership. His perspective will be immensely valuable as EXL pursues its mission to be the AI and data-led partner of choice for our clients.”“EXL is at the forefront of combining data, AI and domain knowledge to create true value for clients,” said Bartlett. “I am excited to join the board of directors and look forward to helping the management team continue EXL’s amazing growth.”Bartlett joined American Tower in 2009 as executive vice president and chief financial officer and served as its chief executive officer from 2020 to 2024. Prior to joining American Tower, Bartlett had a 25-year career at Verizon Communications. He also serves as a director of Otis Worldwide Corporation (NYSE: OTIS) where he is a member of the audit committee and the compensation committee.   He is a member of the World Economic Forum’s Information and Communications Technologies (ICT) Board of Governors, the National Association of Real Estate Investment Trust (NAREIT) Executive Committee, and the Business Roundtable.Story continues“On behalf of EXL and its board of directors, I would also like to thank Som for the wisdom and insights he has contributed since joining the board in 2013,” said Pandit. “Som’s deep knowledge of industry in India and his unique perspective of the technology sector were invaluable to EXL’s growth.”Kapoor added, “Som’s contributions to EXL over the years have been extremely impactful. His clarity of thought and wealth of knowledge have served EXL well. I am thankful for Som’s service to EXL and wish him and his family all the best.”“I have truly enjoyed being a member of the board and being part of what has been an incredible journey over the last 10 years,” said Mittal. “EXL is well positioned to take advantage of the coming AI economy, and I look forward to following its continued success.”About EXLEXL (NASDAQ: EXLS) is a leading data analytics and digital operations and solutions company. We partner with clients using a data and AI-led approach to reinvent business models, drive better business outcomes and unlock growth with speed. EXL harnesses the power of data, analytics, AI, and deep industry knowledge to transform operations for the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media and retail, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have more than 54,000 employees spanning six continents. For more information, visit www.exlservice.com.Cautionary Statement Regarding Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL's operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management's experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include our ability to maintain and grow client demand, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, rising interest rates, rising inflation and recessionary economic trends, are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by federal securities laws.© 2024 ExlService Holdings, Inc.  All rights reserved. For more information go to www.exlservice.com/legal-disclaimerContactsMedia Keith Little+1 703-598-0980 [email protected] RelationsJohn Kristoff+1 212 209 [email protected]

GlobeNewswire

EXL Announces Appointment of Thomas Bartlett to Board of Directors and Retirement of Board Member Som Mittal

https://finance.yahoo.com/news/exl-announces-appointment-thomas-bartlett-210100628.html

76d922c7-0eed-327a-ba5a-5f23c9be046d

OXY

More than year after leaving the public markets, Continental Resources’ corporate private life appears to be active, including $1 billion in M&A.The Greta Garbo of E&Ps Continental is not. Despite being private, the company detailed its production and earnings, although it has no obligation to do so.Oklahoma City-based Continental’s Feb. 22 annual report details some of its behind-the-scenes deals, as well as production results for the Bakken and Permian, Anadarko and Powder River basins.On the deal front, Continental gave firm financial numbers about its transactional values—but not the locations of the deals. Where precisely the company bought—and sold—may by a mystery, but some inferences can be made.For full-year 2023, Continental executed on $681 million in acquisitions, with $161 million allocated for proved properties and $520 million for unproved. It disposed of another $390 million in assets.In March 2023, Continental disclosed in Securities and Exchange Commission (SEC) filings that the company acquired oil and gas properties in Oklahoma’s Anadarko for a cash consideration of $178 million. Of the purchase price, $84 million was allocated to proved properties and $94 million went to unproved properties.That leaves about $500 million remaining for acquisitions it made the rest of the year—a half billion that likely went to the Bakken and Permian.A comparison of Continental’s acreage to end 2023 compared to 2022 gives an “as the spreadsheet flies” estimate of what the company added—not including acreage swaps or other non-momentary transactions.Continental’s Anadarko acreage increased the most year-over-year, by 6%, to 502,421 net acres. Continental leasehold also increased in the expensive Bakken (6,316 net acres) and the ultra-pricey Permian (5,527 acres).The company’s only core play to shrink its footprint—albeit by a negligible 1,773 acres—was the Powder River Basin. Continental also subtracted another 43,516 net acres from its “other” pile of oil and gas properties.Story continuesOverall, 2023 oil and gas property divestitures of $390 million resulted in a pre-tax net loss of $51 million.(Source: Hart Energy, SEC filings)“The disposed properties represented an immaterial portion of the company's production and proved reserves,” Continental told the SEC.Continental posted about $3 billion in income for the year, down from $4 billion in 2024.The Permian and Bakken led growth for Continental’s total production, offsetting slight 3% to 5% declines in the Anadarko, Powder River and “other” assets.Total Bakken production averaged 220,428 boe/d day for fourth-quarter 2023, up 26% from fourth-quarter 2022. For the year, average daily Bakken production increased 18% compared to 2022.“In 2023, we participated in the drilling and completion of 363 gross (166 net) wells in the Bakken compared to 266 gross (93 net) wells in 2022,” Continental said in regulatory filings.The company’s inventory of proved undeveloped drilling locations in the Bakken totaled 539 net wells at years end.Continental’s Permian assets represent 21% of the company’s total proved reserves at the end of 2023—and 13% of its average production for the quarter. The Permian pumped out 58,601 boe/d in the final quarter of 2023, a 30% increase over fourth-quarter 2022. Continental drilled and completed 66 net wells in the play compared to 35 in 2022.“Our proved reserves in the Permian Basin totaled 386 MMBoe as of Dec. 31, 2023, an increase of 27% compared to Dec. 31, 2022,” the company said in SEC filings. “Our inventory of proved undeveloped drilling locations in the play totaled 459 gross (377 net) wells at year-end 2023.”In the Anadarko, production averaged 144,158 boe/d in the fourth quarter, down 13% compared to the fourth-quarter 2022. The company drilled and completed 43 net wells in the basin.Production in the Powder River Basin averaged 25,577 boe/d in fourth-quarter 2023, a 9% decrease year-over-year.(Source: Rextag)

Hart Energy

Continental Resources Makes $1B in M&A Moves—But Where?

https://finance.yahoo.com/news/continental-resources-makes-1b-m-173500121.html

67e15812-53f7-3971-bb24-6a1202f6d02e

OXY

Billionaire investor and owner of Berkshire Hathaway – Warren Buffett – released his annual letter to shareholders Saturday. We have discussed some points from there (as highlighted by a Mint article) that could serve as investing tips to the learners.Stay Invested in EquitiesSince his first stock purchase in 1942, Warren Buffett has kept a majority of his net worth in U.S.-based equities. Despite market fluctuations, his long-term strategy has paid off handsomely. Buffett said “America has been a terrific country for investors” and emphasized the importance of patience and confidence in the investing process. In this context, the S&P 500 ETF SPY could be a great pick. The fund is up 81% in the past five years.Focus on Businesses with Enduring FundamentalsBuffett's strategy at Berkshire is straightforward: invest in businesses with strong and lasting fundamentals. He warns against the illusion of predicting winners and losers, noting that even experts may commit mistakes in forecasting a stock's fate. The key is to identify businesses with enduring competitive advantages.Here we’d like to add that Buffett prefers “wide moat” stocks. The term was popularized by Buffett as he seeks "economic castles protected by unbreachable moats.” In the world of investing, "moat stocks" refer to companies that possess strong competitive advantages. VanEck Morningstar Wide Moat ETF MOAT too added 84.2% in the past five years.Occasional Market Disturbances Are NormalBuffett acknowledged the unpredictability of markets, citing historical instances of market collapses in 1914, 2001 and 2008. He said that “such instant panics won’t happen often – but they will happen”. He cautions investors against complacency, highlighting the likelihood of rapid market downturns caused by technological advancements and global interconnectedness.Here again, we would suggest you to stay invested in broader market ETFs like SPDR Portfolio S&P 1500 Composite Stock Market ETF SPTM, which has returned 77% in the past five years.Story continuesHave Moderate Expectations for ReturnsWhile Buffett's Berkshire aims to outperform the broader market with lower risk, Buffett advises against unrealistic expectations. This tempered outlook reflects a focus on steady growth rather than speculative gains. In this context, investors looking for consistent but moderate gains may try investing in steady sectors like healthcare. iShares US Healthcare ETF IYH has added 57.8% in the past five yearsAbout Oil InvestmentsOccidental Petroleum is now Berkshire's seventh largest holding in the equity portfolio. At yearend, Berkshire owned 27.8% of Occidental Petroleum’s common shares. Buffett's preference for Occidental Petroleum demonstrates his principle of investing in familiar industries where he sees winning prospects. Despite uncertainties surrounding carbon-capture initiatives, Buffett sees value in Occidental's strategic positioning within the U.S. oil and gas sector.Those who follow Buffett but do not have strong stomach for risks may tap ETFs like Occidental-heavy ETFs like Texas Capital Texas Oil Index ETF OILT and First Trust Nasdaq Oil & Gas ETF FTXN. The ETF approach lessens the company-specific risks.Learn to AdaptCharlie Munger's advice to Buffett exemplifies the importance of learning from evolving strategies. Munger's advice to focus on acquiring exceptional businesses rather than bargains reshaped Berkshire's trajectory, illustrating the value of humility and flexibility in investment decisions.Munger suggested Buffett to “add to it wonderful businesses purchased at fair prices and give up buying fair businesses at wonderful prices.” Munger said this to Buffett going against the latter’s long-standing liking for value investing.In this context, we can consider artificial intelligence business, which is currently hot like anything. Most tech giants are coming up with expansion plans on AI and intend to take the growth momentum forward. But then, after about a one-year rally, AI stocks and ETFs are not cheap. You can follow Munger by investing in AI ETFs like Global X Robotics & Artificial Intelligence ETF BOTZ. BOTZ is up 30% in the past one year.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportTexas Capital Texas Oil Index ETF (OILT): ETF Research ReportsiShares U.S. Healthcare ETF (IYH): ETF Research ReportsVanEck Morningstar Wide Moat ETF (MOAT): ETF Research ReportsGlobal X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research ReportsFirst Trust NASDAQ Oil & Gas ETF (FTXN): ETF Research ReportsSPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Buffett's Wisdom: 6 ETF Strategies for Investors

https://finance.yahoo.com/news/buffetts-wisdom-6-etf-strategies-180000393.html

c48dc0ab-0eb5-36fb-8e70-1472f4187b79

OXY

There are a number of great money managers on Wall Street, but few, if any, can hold a candle to the "Oracle of Omaha," Warren Buffett. Since Buffett became CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) in the mid-1960s, he's overseen a greater than 4,900,000% aggregate return in his company's Class A shares (BRK.A), and practically doubled up the annualized total return, including dividends, of the benchmark S&P 500.Patient investors have become financially independent mirroring the Oracle of Omaha's investments. This can be done by analyzing Berkshire's quarterly Form 13F filings with the Securities and Exchange Commission. A 13F details what Wall Street's brightest minds purchased and sold in the most recent quarter.But while Berkshire Hathaway's 13Fs have clued investors into a number of businesses Buffett appreciates, the Oracle of Omaha's favorite stock to buy -- one which he's added to for 22 consecutive quarters -- won't be found on his company's 13F.Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.Apple and Occidental Petroleum have been popular buys, but neither is Buffett's favorite stockA quick glance at Berkshire's $361 billion portfolio would appear to suggest that tech stock Apple (NASDAQ: AAPL) is Warren Buffett's favorite business. After all, it accounted for 42.5% of invested assets as of the closing bell on March 6.Innovation is a big reason Apple held the title of world's largest publicly traded company for so long (it only recently ceded this title to Microsoft). Since upgrading iPhone to handle 5G speeds in late 2020, the company's flagship smartphone has accounted for half or more of domestic smartphone market share. Even though Warren Buffett doesn't understand the mechanics of how an iPhone works, he fully understands consumer behavior and the exceptional loyalty of Apple's customers to its products.But what investors may have overlooked is Apple's innovation beyond its physical products. CEO Tim Cook is overseeing an extended transformation that has Apple focused on various subscription services. Subscriptions should smooth out Apple's revenue recognition during iPhone upgrade cycles, steadily lift the company's operating margin over time, and encourage Apple's customers to stay within the company's ecosystem of products and services.Story continuesHowever, the best aspect of owning a lot of Apple stock for Warren Buffett might be its unbeatable capital-return program. Apple is returning $14.8 billion annually in dividends to its shareholders, and has repurchased in excess of $600 billion worth of its common stock since the start of 2013. Buffett is a huge fan of businesses that reward long-term-minded investors like himself.The other stock in Berkshire's portfolio that you'd probably think is Warren Buffett's favorite to buy is energy juggernaut Occidental Petroleum (NYSE: OXY). Since the beginning of 2022, the Oracle of Omaha and his investment aides, Ted Weschler and Todd Combs, have purchased more than 248 million shares of Occidental -- a position with a market value of $15.2 billion.Although energy stocks haven't played a big role in Berkshire's portfolio throughout much of this century, the past couple of years have represented something of a change of heart for Buffett and his team. Piling into Occidental the way Berkshire's investment team has signals that they believe the spot price of crude oil will remain above historic norms, or perhaps head even higher.While it's tough to predict the directional movements of energy commodities with any certainty, there are factors working in Buffett's favor. For instance, capital underinvestment for multiple years from energy majors during the COVID-19 pandemic has led to tight global oil supply. When the supply of an in-demand commodity is constrained, it's not uncommon for the price of that commodity to rise.A higher spot price for crude oil would be noteworthy for two reasons for Occidental. First, it generates the lion's share of its revenue from its drilling operations. If the price of oil climbs, it disproportionately benefits, when compared to other integrated oil and gas operators.Secondly, Occidental is still digging itself out of debt. The company is counting on a higher spot price to fuel the steady paydown of its remaining debt.Image source: Getty Images.Meet the stock Warren Buffett has purchased for 22 consecutive quartersThough it's abundantly clear that Apple and Occidental Petroleum are core holdings in the $361 billion portfolio Warren Buffett oversees at Berkshire Hathaway, neither stock has been purchased by the Oracle of Omaha for 22 consecutive quarters.To find Warren Buffett's favorite stock, investors will want to peer beyond the company's 13Fs and take a closer look at Berkshire Hathaway's quarterly operating results. Contained within these operating results is a section on share repurchases. That's right -- the stock Buffett genuinely can't stop buying is shares of his own company.Share buybacks at Berkshire Hathaway took a big turn in mid-July 2018. Prior to this point, repurchases could only be undertaken if the company's shares traded at or below 120% of book value (i.e., no more than 20% above reported book value in the most recent quarter). Since Berkshire Hathaway's stock never retreated to or below this preset threshold, the company went years without any share repurchases.Everything changed on July 17, 2018, which is when Berkshire's board reworked the covenants governing share repurchases to allow Warren Buffett and the late, great Charlie Munger to work their magic.Under the new criteria, as long as Berkshire Hathaway has at least $30 billion in aggregate cash, cash equivalents, and U.S. Treasuries on its balance sheet, and both Buffett and Munger agreed that shares of their company were intrinsically cheap, buybacks could continue with no preset cap.During the fourth quarter of 2023, Buffett oversaw the repurchase of 3,623 Class A shares and 660,585 Class B shares (BRK.B) of Berkshire stock at a total cost of almost $2.15 billion. Since the criteria for buybacks changed in July 2018, Buffett has bought back more than $74 billion worth of his company's stock, with repurchases occurring every single quarter.The reason the Oracle of Omaha and his team spend such a small fortune on buybacks is because it's the easiest way to reward investors who share their long-term vision. Since Berkshire doesn't pay a dividend, regular buybacks are incrementally increasing the ownership stakes of existing shareholders.Furthermore, buying back stock can lift earnings per share (EPS) for businesses with steady or growing net income. As Berkshire's outstanding share count shrinks over an extended period, EPS should increase. Ideally, this makes Berkshire Hathaway appear even cheaper to investors.Regardless of how well or poorly the U.S. economy and stock market are performing, Warren Buffett buying back shares of his favorite stock, Berkshire Hathaway, is a virtual given.Should you invest $1,000 in Berkshire Hathaway right now?Before you buy stock in Berkshire Hathaway, consider this:The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of March 8, 2024Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Microsoft. The Motley Fool recommends Occidental Petroleum and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.Warren Buffett Has Bought Shares of This Stock for 22 Consecutive Quarters -- and It's Not Apple or Occidental was originally published by The Motley Fool

Motley Fool

Warren Buffett Has Bought Shares of This Stock for 22 Consecutive Quarters -- and It's Not Apple or Occidental

https://finance.yahoo.com/news/warren-buffett-bought-shares-stock-092100420.html

69d2bb78-c08a-324f-93a5-36d19d87be8a

OXY

Key InsightsOccidental Petroleum's estimated fair value is US$65.50 based on 2 Stage Free Cash Flow to EquityOccidental Petroleum's US$60.80 share price indicates it is trading at similar levels as its fair value estimate The US$65.95 analyst price target for OXYis comparable to our estimate of fair value.Today we will run through one way of estimating the intrinsic value of Occidental Petroleum Corporation (NYSE:OXY) by taking the forecast future cash flows of the company and discounting them back to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example!Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. See our latest analysis for Occidental Petroleum What's The Estimated Valuation?We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:Story continues10-year free cash flow (FCF) forecast2024202520262027202820292030203120322033 Levered FCF ($, Millions) US$4.56bUS$6.29bUS$6.69bUS$4.42bUS$4.42bUS$4.00bUS$3.77bUS$3.64bUS$3.57bUS$3.56bGrowth Rate Estimate SourceAnalyst x4Analyst x3Analyst x3Analyst x1Analyst x1Est @ -9.42%Est @ -5.91%Est @ -3.45%Est @ -1.73%Est @ -0.52% Present Value ($, Millions) Discounted @ 8.4% US$4.2kUS$5.4kUS$5.3kUS$3.2kUS$3.0kUS$2.5kUS$2.1kUS$1.9kUS$1.7kUS$1.6k("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$31bWe now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.3%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.4%.Terminal Value (TV)= FCF2033 × (1 + g) ÷ (r – g) = US$3.6b× (1 + 2.3%) ÷ (8.4%– 2.3%) = US$60bPresent Value of Terminal Value (PVTV)= TV / (1 + r)10= US$60b÷ ( 1 + 8.4%)10= US$27bThe total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$58b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of US$60.8, the company appears about fair value at a 7.2% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.dcfImportant AssumptionsThe calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Occidental Petroleum as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.4%, which is based on a levered beta of 1.322. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.SWOT Analysis for Occidental PetroleumStrengthDebt is well covered by earnings and cashflows.Dividends are covered by earnings and cash flows.WeaknessEarnings declined over the past year.Dividend is low compared to the top 25% of dividend payers in the Oil and Gas market.OpportunityAnnual earnings are forecast to grow faster than the American market.Good value based on P/E ratio and estimated fair value.ThreatAnnual revenue is forecast to grow slower than the American market.Looking Ahead:Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Occidental Petroleum, we've put together three further factors you should assess:Risks: For example, we've discovered 2 warning signs for Occidental Petroleum that you should be aware of before investing here.Future Earnings: How does OXY's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

A Look At The Intrinsic Value Of Occidental Petroleum Corporation (NYSE:OXY)

https://finance.yahoo.com/news/look-intrinsic-value-occidental-petroleum-120026065.html

af0e7cc4-cfe2-3888-b31b-b3a089ea2ae0

PANW

Fool.com contributor Parkev Tatevosian reviews the latest developments in Palo Alto Networks' (NASDAQ: PANW) most recent earnings results, which decreased its stock price.*Stock prices used were the afternoon prices of Feb. 24, 2024. The video was published on Feb. 26, 2024.Should you invest $1,000 in Palo Alto Networks right now?Before you buy stock in Palo Alto Networks, consider this:The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palo Alto Networks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of February 26, 2024Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palo Alto Networks. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.Should Investors Buy the Dip in Palo Alto Networks Stock? was originally published by The Motley Fool

Motley Fool

Should Investors Buy the Dip in Palo Alto Networks Stock?

https://finance.yahoo.com/news/investors-buy-dip-palo-alto-214004922.html

d59c7261-ff24-309c-ae8e-3a9b394c395f

PANW

Palo Alto Networks Inc (NASDAQ:PANW), a global cybersecurity leader, is known for its comprehensive portfolio of security products and services designed to provide advanced protection against cyber threats. The company's offerings include advanced firewalls and cloud-based offerings that extend those firewalls to cover other aspects of security.According to a recent SEC filing, President Jenkins William D Jr sold 1,867 shares of Palo Alto Networks Inc on February 23, 2024. Over the past year, the insider has sold a total of 5,927 shares and has not made any purchases of the stock.The insider transaction history for Palo Alto Networks Inc shows a trend of insider sales over the past year, with 58 insider sells and no insider buys recorded.Insider Sell: President Jenkins William D Jr Sells Shares of Palo Alto Networks IncOn the valuation front, Palo Alto Networks Inc's shares were trading at $280.13 on the day of the insider's recent sale, resulting in a market cap of $97.83 billion. The price-earnings ratio stands at 47.31, which is above the industry median of 27.7 but below the company's historical median price-earnings ratio.Insider Sell: President Jenkins William D Jr Sells Shares of Palo Alto Networks IncThe stock's price of $280.13 compared to the GuruFocus Value (GF Value) of $220.78 indicates a price-to-GF-Value ratio of 1.27, suggesting that Palo Alto Networks Inc is significantly overvalued based on its GF Value. The GF Value is calculated considering historical trading multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.Warning! GuruFocus has detected 5 Warning Sign with PANW.This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.This article first appeared on GuruFocus.

GuruFocus.com

Insider Sell: President Jenkins William D Jr Sells Shares of Palo Alto Networks Inc

https://finance.yahoo.com/news/insider-sell-president-jenkins-william-031905730.html

acc4d3f7-1a27-3419-a2c5-858e292bb377

PANW

Cybersecurity stocks have underperformed in 2023. But cloud security companies may be better positioned as corporate budgets tighten.Continue reading

Investor's Business Daily

Cybersecurity Stocks To Watch Amid Shift To AI, Cloud

https://finance.yahoo.com/m/758558ed-5483-3092-ad3c-96b4538b84c2/cybersecurity-stocks-to-watch.html

758558ed-5483-3092-ad3c-96b4538b84c2

PANW

Fool.com contributor Parkev Tatevosian elaborates on how these changes could impact Palo Alto Networks (NASDAQ: PANW) stock investors.*Stock prices used were the afternoon prices of March 9, 2024. The video was published on March 11, 2024.Should you invest $1,000 in Palo Alto Networks right now?Before you buy stock in Palo Alto Networks, consider this:The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palo Alto Networks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of March 11, 2024Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palo Alto Networks. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.Palo Alto Networks Stock Investors Were Curious After a Huge Strategic Move From Management was originally published by The Motley Fool

Motley Fool

Palo Alto Networks Stock Investors Were Curious After a Huge Strategic Move From Management

https://finance.yahoo.com/news/palo-alto-networks-stock-investors-212640809.html

7c5f7e4f-0d61-354d-8cce-d56352a0bb9e

PARA

The reviews are in, and Dungeons and Dragons (DND) is a hit!According to movie review site Rotten Tomatoes, last year's Dungeons & Dragons: Honor Among Thieves (HAT) fantasy flick won a 91% rating from critics, and 93% approval from audiences -- and collected $93.2 million in U.S. box office receipts. BoxOfficeMojo points out that, when you add in global box office figures, that number swells to $208.2 million.But that probably wasn't enough cash to make HAT profitable for Paramount (NASDAQ: PARA), its distributor. The movie reportedly cost $150 million to produce, and the movie industry's rule of thumb is that marketing costs generally double a film's final budget -- meaning Paramount needed the movie to rake in $300 million-plus to earn a decent profit.Despite this disappointment, it seems Paramount is ready to roll the dice on DND once more. Here's what you need to know.1. Paramount has broken the DND curseHonor Among Thieves was actually the fourth movie in the DND line. A previous trilogy of DND movies, each distributed by a different company, all bombed at the box office -- averaging only 25% positive reviews on Rotten Tomatoes. HAT, however, was different.HAT may not have made money on its first attempt -- but only because it was competing for moviegoer dollars against the juggernaut that was The Super Mario Bros. Movie, which hoovered up $1.4 billion at the box office. Recognizing this, Paramount has reportedly agreed to partner with DND brand-owner Hasbro (NASDAQ: HAS) on a new project to produce an eight-episode run of a live-action DND television show, to play on the Paramount+ streaming service.There, DND will join at least one other successful live-action series based on a game. Halo on Paramount+ is already garnering 90%-plus ratings from critics on Rotten Tomatoes.It will also attempt to duplicate the success of a separate, small-screen DND-based series, the Legend of Vox Machina cartoon that runs on Paramount rival Amazon's Prime Video service (and scores a perfect 100% from Rotten Tomatoes-polled critics).Story continues2. A second DND movie may be in the worksNo date has yet been set for when a DND series might air on Paramount+. But assuming it does run, and assuming it performs as well on Paramount's streaming service as Halo already has, this could set the stage for a second attempt at a successful DND movie.According to a story on ScreenRant last year, actor Chris Pine, one of the stars in the original (i.e., fourth) DND film, confirms that not only has he heard "rumors" that a second HAT movie is in the works, but he's "confident" it may happen, and will "absolutely" sign on to reprise his character, Edgin, in such a movie.3. This could be great news for HasbroWhile Honor Among Thieves' failure to earn a profit was certainly disappointing, it makes sense that Paramount would attempt a second roll of the dice. Around the world, some 50 million fans are already avid players of DND. That's 67% more players than are logged on to Microsoft's Halo Infinite video game service -- a big, established fan base that should be easy to convert into paying customers for movie theaters and for Paramount's streaming service alike.As for Hasbro, that company is still best known for its toys and board games, which provide the bulk of its $5 billion in annual revenue. But this "consumer products" division didn't earn a profit last year, and even when it was profitable (in 2022, for example), has tended to earn profit margins only a fraction of the incredibly profitable Hasbro Wizards of the Coast (WotC) division, which makes DND.According to data from S&P Global Market Intelligence, in 2022, WotC earned Hasbro a gargantuan 36% operating profit margin on its sales. Seeing as consumer products' margin was just 5.5%, it makes sense that Hasbro would want to place more bets on DND as a source of future revenue growth.Admittedly, this bet may not succeed. Hasbro's film and TV division, dubbed "entertainment," has a pretty spotty record -- losing money more often than not. But right now, DND remains the sharpest arrow in Hasbro's quiver, and its best chance of turning things around in entertainment.Therefore, it makes sense that Hasbro would pull that arrow out and give it another shot.Should you invest $1,000 in Paramount Global right now?Before you buy stock in Paramount Global, consider this:The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Paramount Global wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of February 26, 2024John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Microsoft. The Motley Fool recommends Hasbro and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.Paramount and Hasbro: A Match Made in Heaven? 3 Things Investors Should Know About Their Latest Partnership. was originally published by The Motley Fool

Motley Fool

Paramount and Hasbro: A Match Made in Heaven? 3 Things Investors Should Know About Their Latest Partnership.

https://finance.yahoo.com/news/paramount-hasbro-match-made-heaven-173000854.html

d41c753d-f73a-334d-927d-41ec1306077a

PARA

This week, we’re looking ahead to **Paramount Global**’s earnings. Michael Morris, senior managing director at Guggenheim Securities, joins us to share what Wednesday’s results could tell us about prospects for streaming, for entertainment and for media conglomerates.Continue reading

The Wall Street Journal

WSJ's Take On the Week Podcast: What Paramount’s Earnings Could Tell Us About State of Streaming

https://finance.yahoo.com/m/2a98523a-a55e-3c26-a8d8-bec64e0bf71d/wsj-s-take-on-the-week.html

2a98523a-a55e-3c26-a8d8-bec64e0bf71d

PARA

US theaters have suffered with the advent of the pandemic and strike-related supply-chain delays. While the box office has struggled to reclaim its pre-pandemic prominence, Cinemark CEO Sean Gamble has reassured investors that studios will focus on theatrical releases once again.Box Office Guru Founder and Editor Gitesh Pandya joins Yahoo Finance to give insight into entertainment companies' renewed focus on theatrical releases. He highlights that with the "right content, people are coming out," citing Dune's $82.5 million opening weekend.Pandya signals that the Oscars are an important "PR bonanza" for the film industry, though most Academy Award entrants will have already been released in theaters.For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.Editor's note: This article was written by Nicholas JacobinoVideo Transcript[AUDIO LOGO]JOSH LIPTON: Award season is in full swing with the Oscars happening on Sunday. The box office is still recovering from the pandemic and multiple writer strikes. But Cinemark CEO telling investors this week that studios are focusing on theatrical releases again.For more on all of this, we're talking to Gitesh Pandya, box office guru, founder and CEO. Gitesh, it's always good to see you.GITESH PANDYA: Great to be here.JOSH LIPTON: We were talking off camera, Gitesh. I was interested in when you looked at just overall box office. And I was asking, we're still down pretty meaningfully from pre-pandemic?GITESH PANDYA: Yeah, we're, down from pre-pandemic times. There's a lot of times in February and March have some big films before 2020, when the box office would do pretty well in the first quarter. And then even the last couple of years during post-pandemic times, you had a couple of big films coming out.So put it this way. Two years ago, right around now, you had a brand new Batman film opening. And it opened right after Omicron was happening.Story continuesAnd people still came out to over $130 million opening weekend. Now, this last weekend, we had Dune Part 2, $82.5 million. Nothing to sneeze at. More than double what the first dune made.And so with the right content, people are coming out. One of the problems is that because of the strikes, a lot of the supply line has been delayed. And so we don't have as many films out there and ready to go. Right now in the first half of the year first quarter of the year that we normally do.So there's a lack of volume in the marketplace right now that will get corrected by the time we reach the second quarter into the summer when you have a lot more films coming out. Normally, you have a big film every week or two. And we haven't had much of that this year. It's been a very poor first quarter. But now, with dune coming out and more sequels, it's starting to get better.JULIE HYMAN: So we've got the Oscars this weekend. And given that backdrop of the waning box office, the increase of streaming, obviously, also a factor of that. What role does the Oscars now play? What role does the prestige picture now play in the age of streaming?GITESH PANDYA: Well, certainly, it's a PR bonanza because you get so much attention. The world's media is on the Oscars at least for that one night. Most of these films, the bigger films have already played out. And they've made most of their money anyway.Oppenheimer, for example, has grossed about $960 million since last July when it first came out. So it's mostly done with its worldwide box office run. Except for Japan. That's a country where they didn't know whether they'd be able to release it there or not.It's a very sensitive topic over there. But it's opening Japan at the end of this month. So it might be a big Oscar winner when it finally opens.But still, it's going to do just under $1 billion worldwide. There's not much upside except on the streaming side on video on demand and things like that. You will see some more people who maybe missed Oppenheimer, the first time.I've seen it on the big screen. I've seen it on the small screen at home. I can see it a third-time.JOSH LIPTON: Julie hasn't seen it.JULIE HYMAN: I still haven't seen it.JOSH LIPTON: What are you waiting for? Come on.GITESH PANDYA: I don't know what she's waiting for. It's incredible film. But it's going to be the big winner, I believe. I'm predicting it will win Best Picture and also Best Director this weekend.JOSH LIPTON: Gitesh, we were talking about this. A big issue would seem to me, but correct me, there's just too much good content you can get at home. You're there.I'm on my couch. You got a drink, your dog, you got the flat screen. It's really-- isn't it just that much harder to get people off the couch?GITESH PANDYA: Well, that's why the movies have to be engaging. They have to be kick ass movies that you leave the couch for, that you go to the movie theater for. Streaming and the box office can coexist.It's like the restaurant business. You can eat food at home. You can go out to a restaurant. Both can succeed. But they have to be good.So with the movies, people have a different threshold now. And so if a movie looks interesting, I do want to see it. I'll wait to see it at home. That's what the studios have to fight against.And so when they're making a film, and when they're marketing a film, they have to have something that is completely engaging, exciting, that you must see right away on the big screen right now and not wait six weeks, eight weeks later to watch at home. That is the big challenge. And the studios that can solve that are going to be the big winners.Because, again, in this pandemic time, you have so many reasons for people not to go out to the movies. But you look at Spider-Man, Top Gun, Barbie, some of the movies in the last couple of years. These are among the 10 highest grossing movies of all-time during this post pandemic era.So people will go out with different challenges. It's just got to be the right thing at the right time.JULIE HYMAN: And are we getting that? That's the other big question, right? There's been a lot of complaints about. And Bob Iger was asked about this recently, right? The equalization of content.And that the quality isn't there. Is that going to change? Is that going to get better?GITESH PANDYA: That's one of the big mistakes over the last couple of years. Quality versus quantity. Too much quantity. Mediocrity doesn't sell anymore.You can't make a 15 mediocre TV shows. It's better to make three really fantastic well-made shows. On the movie side, the ones that are really well-reviewed, well-liked by the audiences, as well, winning awards, that's what's going to sell.And so I think if some of the studios focus on really the quality of the product and making it really well and then putting it out into the marketplace, you'll see almost unlimited box office potential worldwide.

Yahoo Finance Video

What role do the Oscars play in the age of streaming?

https://finance.yahoo.com/video/role-oscars-play-age-streaming-130004459.html

704f93e4-e983-3779-a086-f545569cd8e6

PARA

Tesla isn't just 2024's worst performer in the Magnificent Seven, it's the biggest loser in the S&P 500 index vs. standout Nvidia.Continue reading

Investor's Business Daily

Nvidia Has Soared In 2024, But These 8 Stocks Are Far From Magnificent

https://finance.yahoo.com/m/414888cf-2c76-386e-aa0f-d83a78425889/nvidia-has-soared-in-2024-.html

414888cf-2c76-386e-aa0f-d83a78425889

PAYC

It looks like Paycom Software, Inc. (NYSE:PAYC) is about to go ex-dividend in the next four days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. In other words, investors can purchase Paycom Software's shares before the 1st of March in order to be eligible for the dividend, which will be paid on the 18th of March.The company's next dividend payment will be US$0.375 per share, on the back of last year when the company paid a total of US$1.50 to shareholders. Based on the last year's worth of payments, Paycom Software has a trailing yield of 0.8% on the current stock price of US$184.67. If you buy this business for its dividend, you should have an idea of whether Paycom Software's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing. See our latest analysis for Paycom Software Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Paycom Software is paying out just 19% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Luckily it paid out just 22% of its free cash flow last year.It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.Click here to see the company's payout ratio, plus analyst estimates of its future dividends.Story continueshistoric-dividendHave Earnings And Dividends Been Growing?Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. It's encouraging to see Paycom Software has grown its earnings rapidly, up 20% a year for the past five years. Paycom Software looks like a real growth company, with earnings per share growing at a cracking pace and the company reinvesting most of its profits in the business.Unfortunately Paycom Software has only been paying a dividend for a year or so, so there's not much of a history to draw insight from.To Sum It UpIs Paycom Software an attractive dividend stock, or better left on the shelf? We love that Paycom Software is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow. These characteristics suggest the company is reinvesting in growing its business, while the conservative payout ratio also implies a reduced risk of the dividend being cut in the future. Paycom Software looks solid on this analysis overall, and we'd definitely consider investigating it more closely.On that note, you'll want to research what risks Paycom Software is facing. To help with this, we've discovered 1 warning sign for Paycom Software that you should be aware of before investing in their shares.If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Be Sure To Check Out Paycom Software, Inc. (NYSE:PAYC) Before It Goes Ex-Dividend

https://finance.yahoo.com/news/sure-check-paycom-software-inc-122725429.html

76715124-5ece-3a77-bb05-bb845c76000e

PAYC

Paycom Software (PAYC) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Over the past month, shares of this maker of human-resources and payroll software have returned -4.7%, compared to the Zacks S&P 500 composite's +4.7% change. During this period, the Zacks Internet - Software industry, which Paycom falls in, has gained 11.1%. The key question now is: What could be the stock's future direction?While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.For the current quarter, Paycom is expected to post earnings of $2.44 per share, indicating a change of -0.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.6% over the last 30 days.For the current fiscal year, the consensus earnings estimate of $7.70 points to a change of -0.7% from the prior year. Over the last 30 days, this estimate has changed -6.9%.Story continuesFor the next fiscal year, the consensus earnings estimate of $8.78 indicates a change of +14.1% from what Paycom is expected to report a year ago. Over the past month, the estimate has changed -3.7%.With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #5 (Strong Sell) for Paycom.The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:12 Month EPSProjected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.In the case of Paycom, the consensus sales estimate of $496.28 million for the current quarter points to a year-over-year change of +9.9%. The $1.87 billion and $2.1 billion estimates for the current and next fiscal years indicate changes of +10.6% and +12.3%, respectively.Last Reported Results and Surprise HistoryPaycom reported revenues of $434.6 million in the last reported quarter, representing a year-over-year change of +17.3%. EPS of $1.93 for the same period compares with $1.73 a year ago.Compared to the Zacks Consensus Estimate of $422.59 million, the reported revenues represent a surprise of +2.84%. The EPS surprise was +8.43%.The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.Paycom is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Paycom. However, its Zacks Rank #5 does suggest that it may underperform the broader market in the near term.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportPaycom Software, Inc. (PAYC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Paycom Software, Inc. (PAYC) Is a Trending Stock: Facts to Know Before Betting on It

https://finance.yahoo.com/news/paycom-software-inc-payc-trending-140009196.html

8de4b332-b0f0-3653-b0fe-f885b6f00582

PAYC

Paycom Software (PAYC) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Over the past month, shares of this maker of human-resources and payroll software have returned -7.2%, compared to the Zacks S&P 500 composite's +3.4% change. During this period, the Zacks Internet - Software industry, which Paycom falls in, has gained 2.8%. The key question now is: What could be the stock's future direction?While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.Paycom is expected to post earnings of $2.43 per share for the current quarter, representing a year-over-year change of -1.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -5.9%.The consensus earnings estimate of $7.65 for the current fiscal year indicates a year-over-year change of -1.3%. This estimate has changed -8.3% over the last 30 days.Story continuesFor the next fiscal year, the consensus earnings estimate of $8.72 indicates a change of +13.9% from what Paycom is expected to report a year ago. Over the past month, the estimate has changed -4.7%.With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Paycom.The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:12 Month EPSProjected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.In the case of Paycom, the consensus sales estimate of $495.86 million for the current quarter points to a year-over-year change of +9.8%. The $1.87 billion and $2.1 billion estimates for the current and next fiscal years indicate changes of +10.5% and +12.5%, respectively.Last Reported Results and Surprise HistoryPaycom reported revenues of $434.6 million in the last reported quarter, representing a year-over-year change of +17.3%. EPS of $1.93 for the same period compares with $1.73 a year ago.Compared to the Zacks Consensus Estimate of $422.59 million, the reported revenues represent a surprise of +2.84%. The EPS surprise was +8.43%.The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.Paycom is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Paycom. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportPaycom Software, Inc. (PAYC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Paycom Software, Inc. (PAYC) is Attracting Investor Attention: Here is What You Should Know

https://finance.yahoo.com/news/paycom-software-inc-payc-attracting-140012646.html

8ac98120-88d9-31c0-9fba-64c07bd6f8a5

PAYC

A month has gone by since the last earnings report for Paycom Software (PAYC). Shares have lost about 7.2% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Paycom due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.Paycom Q4 Earnings and Revenues Surpass EstimatesPaycom ended 2023 on a strong note by delivering solid fourth-quarter results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate and improved year over year.The online payroll and human resource technology provider reported non-GAAP earnings of $1.93 per share in the fourth quarter, beating the Zacks Consensus Estimate of $1.78. The bottom line improved 11.56% from $1.73 per share reported in the year-ago quarter.In the fourth quarter of 2023, Paycom reported revenues of $434.6 million, beating the consensus mark of $422.6 million. The top line improved 19.4% year over year. The top-line figure also surpassed management’s previous guidance of $420-$425 million, primarily driven by new logo wins, partially offset by a dip in cross-selling to the existing clients.Quarter in DetailPaycom’s Recurring revenues (representing 98.3% of the total revenues) improved 17.4% to $427.3 million in the fourth quarter. Our estimate for the company’s Recurring revenues was pegged at $414.8 million.The company’s revenues from the Implementation and Other segment improved to $7.3 million from $6.6 million in the year-ago quarter and contributed 1.7% to total sales. Our estimate for the division’s revenues was pegged at $7.7 million.Adjusted gross profits climbed 15.8% from the year-ago period to $362 million. However, the adjusted gross margin contracted 100 basis points (bps) on a year-over-year basis to 83.3%.Story continuesPaycom’s adjusted EBITDA increased 7.7% year over year to $176.6 million. The adjusted EBITDA margin contracted 360 bps to 40.6%.Balance Sheet & Cash FlowPaycom exited the fourth quarter with cash and cash equivalents of $294 million compared with $484 million recorded in the previous quarter. In the fourth quarter, the company had no long-term debt, representing a decrease from the net long-term debt of $29 million in the previous quarter.In the fourth quarter of 2023, PAYC generated an operating cash flow of approximately $134.5 million, paid out $21.5 million in dividends and bought back $212.9 million worth of its common stock. In 2023, the company generated an operating cash flow of approximately $485 million. During the year, it bought back shares worth $286.6 million and paid $64.8 million in dividend.The company has $800 million remaining under its buyback authorization as of Dec 31, 2023. Paycom’s board has approved its upcoming quarterly dividend of 37.5 cents per share, payable in March 2024.GuidanceFor the first quarter of 2024, Paycom forecasts revenues in the range of $494-$497 million and expects adjusted EBITDA between $218 million and $222 million.For 2024, PAYC forecasts revenues in the band of $1.860-$1.885 billion and expects adjusted EBITDA in the range of $720-$730 million.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.The consensus estimate has shifted -5.88% due to these changes.VGM ScoresCurrently, Paycom has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Paycom has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.Performance of an Industry PlayerPaycom belongs to the Zacks Internet - Software industry. Another stock from the same industry, Aspen Technology (AZPN), has gained 10.9% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.Aspen Technology reported revenues of $257.16 million in the last reported quarter, representing a year-over-year change of +5.9%. EPS of $1.37 for the same period compares with $0.35 a year ago.For the current quarter, Aspen Technology is expected to post earnings of $1.63 per share, indicating a change of +53.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Aspen Technology. Also, the stock has a VGM Score of F.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportPaycom Software, Inc. (PAYC) : Free Stock Analysis ReportAspen Technology, Inc. (AZPN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Is Paycom (PAYC) Down 7.2% Since Last Earnings Report?

https://finance.yahoo.com/news/why-paycom-payc-down-7-163053999.html

4a125ea1-ef23-3d34-8d81-75a71f915cd1

PAYX

Dissecting the Dividend Dynamics of Paychex Inc (NASDAQ:PAYX)Paychex Inc (NASDAQ:PAYX) recently announced a dividend of $0.89 per share, payable on 2024-02-27, with the ex-dividend date set for 2024-02-12. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Paychex Inc's dividend performance and assess its sustainability.What Does Paychex Inc Do?Warning! GuruFocus has detected 6 Warning Signs with WEC.High Yield Dividend Stocks in Gurus' PortfolioThis Powerful Chart Made Peter Lynch 29% A Year For 13 YearsHow to calculate the intrinsic value of a stock?Paychex Inc is a leading provider of payroll, human capital management, and insurance solutions servicing small and midsize clients primarily in the United States. The company, established in 1979, services over 740,000 clients and pays over 1 in 12 U.S. private-sector workers. Alongside its traditional payroll services, Paychex offers HCM solutions such as benefits administration and time and attendance software, as well as human resources outsourcing and insurance agency services.Paychex Inc's Dividend AnalysisA Glimpse at Paychex Inc's Dividend HistoryPaychex Inc has maintained a consistent dividend payment record since 1988. Dividends are currently distributed on a quarterly basis. Paychex Inc has increased its dividend each year since 2013, earning it the title of a dividend achiever, a distinction awarded to companies that have consistently raised their dividends for at least the past 11 years. Below is a chart showing annual Dividends Per Share to track historical trends.Breaking Down Paychex Inc's Dividend Yield and GrowthAs of today, Paychex Inc currently has a 12-month trailing dividend yield of 2.81% and a 12-month forward dividend yield of 2.89%, indicating an expectation of increased dividend payments over the next 12 months.Over the past three years, Paychex Inc's annual dividend growth rate was 9.50%. On a five-year horizon, this rate decreased to 8.50% per year. However, over the past decade, Paychex Inc's annual dividends per share growth rate stands at an impressive 12.90%. Based on Paychex Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Paychex Inc stock as of today is approximately 4.27%.Story continuesPaychex Inc's Dividend AnalysisThe Sustainability Question: Payout Ratio and ProfitabilityTo assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-11-30, Paychex Inc's dividend payout ratio is 0.77, which may suggest that the company's dividend is sustainable.Paychex Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Paychex Inc's profitability 10 out of 10 as of 2023-11-30, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.Growth Metrics: The Future OutlookPaychex Inc's growth rank of 10 out of 10 suggests that the company's growth trajectory is strong relative to its competitors. Paychex Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a robust revenue model. The company's revenue has increased by approximately 7.30% per year on average, outperforming approximately 56.82% of global competitors.The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Paychex Inc's earnings increased by approximately 12.50% per year on average, outperforming approximately 52.49% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 10.30%, outperforms approximately 55.66% of global competitors.Next StepsConsidering Paychex Inc's solid dividend payments, consistent dividend growth rate, prudent payout ratio, robust profitability, and promising growth metrics, the company stands out as a potentially attractive option for value investors focused on income generation. However, investors should always consider their individual investment goals and the overall diversification of their portfolios. For those looking to expand their income-generating assets, Paychex Inc warrants a closer look within the broader context of a well-rounded investment strategy. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.This article first appeared on GuruFocus.

GuruFocus.com

Paychex Inc's Dividend Analysis

https://finance.yahoo.com/news/paychex-incs-dividend-analysis-100440346.html

a9486d80-ba0e-368b-9c9e-8339e4a9fe65

PAYX

The Zacks Outsourcing industry has experienced significant growth, driven by various economic, technological and business factors. Key drivers include the pursuit of cost savings, access to a pool of skilled talent and the opportunity to focus on core competencies. According to a report by ReportLinker, the outsourcing sector is projected to see substantial expansion, with an estimated growth of $75.89 trillion between 2023 and 2027. This growth is expected to maintain a steady compound annual growth rate (CAGR) of 6.5%, reflecting the industry's resilience and attractiveness to businesses seeking efficient solutions.Automatic Data Processing, Inc.ADP, Paychex, Inc. PAYX and Broadridge Financial Solutions, Inc. BR can be considered by investors from the in-focus Outsourcing market.About the IndustryOutsourcing involves delegating a company's internal operations to external resources or third-party contractors to enhance operational efficiency. Within the Zacks Outsourcing sector, you'll find companies that provide human capital, business management and IT solutions, primarily catering to small- and medium-sized enterprises. These services encompass a broad spectrum, including HR support, payroll management, benefits administration, retirement planning and insurance services. Certain firms excel in delivering business process services, with a strong focus on transaction processing, analytics and global automation solutions. This outsourcing approach empowers businesses to concentrate on their core competencies while external experts manage these critical functions.5 Trends Shaping the Future of Outsourcing IndustryRising Demand Environment: The industry has gained traction over the past year, thanks to the recent advancements in the field of technology and the onset of remote work. Revenues, income and cash flows have been growing in the past year, aiding many industry players to pay out stable dividends.Story continuesContinued Growth of Business Process Outsourcing (BPO): Most outsourcing activities occur at lower levels within the organizational hierarchy. Per Grand View Research, the global market for BPO reached a valuation of $261.9 billion in 2022 and is expected to witness a compound annual growth rate (CAGR) of 9.4% from 2023 to 2030. The demand for these services remains high due to their advantages, including greater flexibility, cost reduction and improved service quality.Relevance of IT Outsourcing: The IT Outsourcing market is projected to generate revenues of approximately $460.10 billion in 2023, with an anticipated CAGR of 11.07% from 2023 to 2028. The upside is expected to lead to a market size of about $777.70 billion by 2028. In the future, outsourced IT services will cover a wide range of functions, including programming and technical support. Organizations can outsource entire IT departments to cut costs and focus on core tasks. A significant driver of outsourcing trends will be the shortage of in-house engineering talent.Rising Importance of Cybersecurity: Heightened public awareness and evolving cyber threats, like ransomware and national-level cyberattacks, have led to a growing demand for robust data encryption and cybersecurity measures. Companies prioritize employee security awareness training and breach detection systems to prevent cybersecurity incidents. To address these challenges, businesses increasingly turn to outsourced cybersecurity services to mitigate risks, maintain compliance and support scalability in their operations.Emerging Technology Trends: Trends like the Internet of Things (IoT), cloud computing, Artificial Intelligence (AI) and Machine Learning (ML) are on the verge of reshaping the outsourcing sector. These innovations propel efficiency, foster innovation and bolster competitiveness, altering the delivery of outsourcing services and opening novel avenues for businesses to enhance their operational efficiency. For instance, IoT data can be collected, processed and analyzed in the cloud, enabling real-time decision-making and predictive maintenance for clients. By integrating AI and ML into customer support outsourcing, companies can provide faster, more efficient and consistent customer support while optimizing operational costs.Zacks Industry Rank Indicates Encouraging ProspectsThe Zacks Outsourcing industry, which is housed within the broader Zacks Business Services sector, currently carries a Zacks Industry Rank #93. This rank places it in the top 37% of more than 250 Zacks industries.The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates continued outperformance in the near term. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.The analysts covering the companies in this industry have been increasing their estimates. Over the past year, the industry’s consensus earnings estimate for the current year has increased 1.9%.Before we discuss several stocks that investors may consider holding due to their growth potential, let's first examine the recent performance of the industry in the stock market and its current valuation.Industry's Price PerformanceThe Zacks Outsourcing industry has lagged the broader Zacks Business Services sector and the Zacks S&P 500 composite over the past year.The industry has gained 13.5% over this period compared with 22.4% gain of the broader sector and a 23% increase of the Zacks S&P 500 composite.One-Year Price PerformanceIndustry's Current ValuationOn the basis of forward 12-month price-to-earnings (P/E), commonly used for valuing outsourcing stocks, the industry is currently trading at 20.41X compared with the S&P 500’s 20.72X and the sector’s 26.21X.In the past five years, the industry has traded as high as 30.82X, as low as 18.23X and at the median of 24.4X, as the charts below show.Price to Forward 12-Month P/E Ratio 3 Outsourcing Stocks to ConsiderHere are three stocks from the outsourcing space with bright near-term prospects. Paychex currently has a Zacks Rank #2 (Buy), while BR and ADP have a Zacks Rank #3 (Hold) each.Paychex is a prominent provider of integrated HCM solutions, offering payroll, human resource, retirement and insurance services tailored to the needs of small- to medium-sized businesses. Paychex exhibits strength, driven by robust revenue growth and its commanding position in the outsourcing market. The company is actively pursuing opportunities in the professional employer organization industry. At the same time, its steadfast commitment to consistent dividend payouts and share buybacks enhances investor confidence and contributes to earnings per share.Paychex provided its fiscal 2024 outlook wherein adjusted earnings per share are expected to register 10-11% growth, up from 9-11% expected previously. PAYX reaffirmed its expectation of total revenues to register 6-7% growth.Management Solutions’ revenues are expected to grow around 5-6%. PEO and Insurance Solutions revenues are expected to grow 7-9%, up from the previously guided 6-9%. Interest on funds held for clients is anticipated to be in the range of $140-$150 million. The company expects operating margin in the range of 41-42%.The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $5.33 billion, indicating a 6.5% increase from the year-ago reported figure. The consensus mark for earnings is pegged at $4.72, indicating growth of 10.5% from the year-ago reported figure. The estimate has been slightly revised northward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Price & Consensus: PAYXBroadridge Financial is a global fintech firm known for providing tech-driven solutions and investor communication services to banks, broker-dealers, asset managers and issuers, with a reputation for producing and distributing critical financial documents. Its robust business model, driven by growing recurring fee revenues and strategic acquisitions, positions it well for revenue growth, supported by a diverse product portfolio. Broadridge excels in implementing its growth strategy in governance, capital markets and wealth management, seizing opportunities in the tech solutions space, including digital, AI, cloud and blockchain, through acquisitions.For fiscal 2024, Broadridge expects recurring revenue growth in the range of 6-9%. Adjusted earnings per share growth is expected to be in the 8-12% range. Adjusted operating income margin is estimated to be around 20%. Closed sales are anticipated between $280 million and $320 million.The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $6.54 billion, suggesting an increase of 7.9% from the year-ago reported figure. The consensus mark for earnings is pegged at $7.72, indicating growth of 10.1% from the year-ago figure. The estimate has remained unchanged in the past 60 days.Price & Consensus: BRAutomatic Data Processing is a top-tier provider of cloud-based Human Capital Management (HCM) technology solutions, offering global employers comprehensive services such as payroll, talent management, HR, benefits administration, and time and attendance management. By strategically acquiring firms like Celergo, WorkMarket, Global Cash Card and The Marcus Buckingham Company, the company sustains its dominant position in the HCM market, underpinned by a robust business model, significant recurring revenues, attractive profit margins, outstanding client retention and minimal capital outlays.For fiscal 2024, ADP still expects revenues to register 6-7% growth. Adjusted EPS is expected to register 10-12% growth. The adjusted effective tax rate is estimated to be approximately 23%. Adjusted EBIT margin is expected to grow 60-70 bps, down from the previously guided 60-80 bps.Automatic Data Processing expects Employer Services revenues to grow at a rate of about 7-8%, while PEO Services revenues are expected to grow 3-4%.The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $19.15 billion, calling for a 6.3% rise from the year-ago reported figure. The consensus mark for earnings per share is pegged at $9.14, indicating growth of 11.1% from the year-ago reported figure. The estimate has remained unchanged in the past 60 days.Price & Consensus: ADPWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAutomatic Data Processing, Inc. (ADP) : Free Stock Analysis ReportBroadridge Financial Solutions, Inc. (BR) : Free Stock Analysis ReportPaychex, Inc. (PAYX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

3 Stocks to Watch From a Growing Outsourcing Industry

https://finance.yahoo.com/news/3-stocks-watch-growing-outsourcing-153300569.html

7aa3c1f5-54fb-3ef6-b0bb-0f0c2c851afd

PAYX

Investors looking for stocks in the Outsourcing sector might want to consider either Barrett Business Services (BBSI) or Paychex (PAYX). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.Currently, Barrett Business Services has a Zacks Rank of #2 (Buy), while Paychex has a Zacks Rank of #3 (Hold). This means that BBSI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.BBSI currently has a forward P/E ratio of 15.38, while PAYX has a forward P/E of 25.91. We also note that BBSI has a PEG ratio of 1.10. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PAYX currently has a PEG ratio of 3.31.Another notable valuation metric for BBSI is its P/B ratio of 4.39. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PAYX has a P/B of 12.48.Based on these metrics and many more, BBSI holds a Value grade of A, while PAYX has a Value grade of D.Story continuesBBSI sticks out from PAYX in both our Zacks Rank and Style Scores models, so value investors will likely feel that BBSI is the better option right now.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportBarrett Business Services, Inc. (BBSI) : Free Stock Analysis ReportPaychex, Inc. (PAYX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

BBSI vs. PAYX: Which Stock Is the Better Value Option?

https://finance.yahoo.com/news/bbsi-vs-payx-stock-better-164015002.html

92c110bb-5218-3533-8f06-b412331fc627

PAYX

The February Paychex Small Business Employment Watch showed hourly earnings growth for U.S. workers at 3.42% and a national jobs index of 100.67. (Graphic: Business Wire)ROCHESTER, N.Y., March 05, 2024--(BUSINESS WIRE)--According to the Paychex Small Business Employment Watch, year-over-year hourly earnings growth for U.S. workers moderated to 3.42% in February, continuing a trend that began mid-2022. Small business job growth held steady from last month, with the national Small Business Jobs Index closing February at 100.67."While our index continues to show job growth in businesses with fewer than 50 workers, it has now remained below pre-pandemic levels for two months. For the first time since March 2021, a major region has fallen below 100 (West: 99.81)," says John Gibson, Paychex president and CEO. "A tight job market for qualified candidates, access to affordable growth capital, and concerns about inflation continue to constrain small business owners from reaching their full growth potential.""Wage growth for small business workers continues to moderate, most notably for weekly earnings in Leisure and Hospitality. The sector fell below three percent (2.58%) for the first time since January of 2021 and is down from a peak of 10.35%," adds Gibson.Jobs Index and Wage Data Highlights:The national index for February (100.67) continued to show slow and steady growth, down just 0.26 percentage points since July 2023.National hourly earnings growth moderated to 3.42% year-over-year, continuing a measured deceleration that began in May 2022.The West (3.87%) led regional hourly earnings growth for the ninth month in a row, and job growth fell below 100 for the first time since March 2021.The South reported the weakest hourly earnings growth (3.11%) among regions in February. It remained the strongest region for small business employment growth (101.35), a designation it has held for 17 of the last 18 months.Small business job gains in Leisure and Hospitality (100.24) continue to level off after pandemic surges, down 0.35 percentage points from last month and 5.09 percentage points from last year.Story continuesThe complete Small Business Employment Watch results for February 2024, including interactive charts detailing the data at a national, regional, state, metro, and industry sector level are available at www.paychex.com/watch. Learn more and sign up to receive monthly Employment Watch alerts.About the Paychex Small Business Employment WatchThe Paychex Small Business Employment Watch is released each month by Paychex, Inc. Focused exclusively on businesses with less than 50 workers, the monthly report offers analysis of national employment and wage trends, as well as examines regional, state, metro, and industry sector activity. Drawing from the payroll data of approximately 350,000 Paychex clients, this powerful industry benchmark delivers real-time insights into the small business trends driving the U.S. economy.About PaychexPaychex, Inc. (Nasdaq: PAYX) is an industry-leading HCM company delivering a full suite of technology and advisory services in human resources, employee benefit solutions, insurance, and payroll. The company serves approximately 740,000 customers in the U.S. and Europe and pays one out of every 12 American private sector employees. The more than 16,000 people at Paychex are committed to helping businesses succeed and building thriving communities where they work and live. Visit paychex.com to learn more.View source version on businesswire.com: https://www.businesswire.com/news/home/20240305447706/en/ContactsMedia Contacts Tracy VolkmannPaychex, Inc.(585) [email protected] @PaychexColleen BennisMatter CommunicationsAccount Director(585) [email protected]

Business Wire

U.S. Small Businesses Continue to Show Moderate Job Growth and Wage Inflation Continues to Moderate

https://finance.yahoo.com/news/u-small-businesses-continue-show-133000606.html

b4210120-869c-3c2f-a064-ff5e347a203b

PCAR

It has been about a month since the last earnings report for Tesla (TSLA). Shares have added about 8.1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Tesla due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.Tesla Q4 Earnings Miss EstimatesTesla came up with a disappointing fourth-quarter 2023 show, missing both earnings and revenue estimates. Fourth-quarter earnings per share of 71 cents missed the Zacks Consensus Estimate of 75 cents and also declined from the year-ago figure of $1.19. Total revenues of $25.17 billion also lagged the consensus mark of $25.94 billion but inched up 3% year over year.Key TakeawaysTesla’s fourth-quarter production totaled 494,989 units (476,777 Model 3/Y, and 18,212 other models), up 13% year over year, and surpassed our estimate of 481,420 units. The company delivered 484,507 vehicles, reflecting a year-over-year rise of 20% and topping our estimate of 476,620 units. The Model 3/Y registered deliveries of 461,538 vehicles, marking year-over-year growth of 19% and outpacing our projection by 3,646 units.Total automotive revenues of $21,563 million were up 1% year over year but lagged our estimate of $22,385 million. The reported figure also included $433 million from the sale of regulatory credits for electric vehicles, which decreased 7% year over year. Automotive sales, excluding revenues from leasing and regulatory credits, totaled $20,630 million, missing our projection of $21,468 million on lower-than-expected ASPs.Automotive gross profit came in at $4,065 million. Automotive gross margin came in at 18.8%, down from 25.9% reported in fourth-quarter 2022 but topping our forecast of 18.4%. This can be attributed to lower-than-expected cost of automotive sales. The metric came in at 17,498 million, below our projection of 18,273 million.Tesla’s operating margin declined 964 basis points year over year to 7.6% in the quarter under discussion and also lagged our estimate of 7.9%.Story continuesEnergy Generation and Storage revenues came in at $1,438 million in fourth-quarter 2023, higher than the year-ago quarter’s figure of $1,310 million but lagging our estimate of $1,591 million. Notably, energy storage deployments came in at 3.2 GWh, falling short of our projection of 4.1 GWh. Solar deployments declined both on a sequential and yearly basis amid high interest rates. The metric came in at 41 MW, significantly missing our forecast of 90MW.  Services and Other revenues were $2,166 million, up 27.3% year over year, but missed our estimate of $2,203 million. Supercharging, part sales, used vehicle sales and merchandise sales drove growth on a year-over-year basis.FinancialsTesla had cash/cash equivalents/investments of $29,094 million as of Dec 31, 2023, compared with $22,185 million on Dec 31, 2022. Long-term debt and finance leases, net of the current portion, totaled $2,857 million, up from $1,597 million on Dec 31, 2022.Net cash provided by operating activities amounted to $4,370 million in fourth-quarter 2023. Capital expenditure totaled $2,306 million in the quarter under review. Tesla generated a free cash flow of $2,064 million during the reported quarter, which rose from $1,420 million generated in the year-ago period.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.The consensus estimate has shifted -21.77% due to these changes.VGM ScoresCurrently, Tesla has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Tesla has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerTesla belongs to the Zacks Automotive - Domestic industry. Another stock from the same industry, Paccar (PCAR), has gained 8.3% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.Paccar reported revenues of $8.59 billion in the last reported quarter, representing a year-over-year change of +11.1%. EPS of $2.70 for the same period compares with $1.76 a year ago.Paccar is expected to post earnings of $2.13 per share for the current quarter, representing a year-over-year change of -5.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.8%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Paccar. Also, the stock has a VGM Score of A.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportTesla, Inc. (TSLA) : Free Stock Analysis ReportPACCAR Inc. (PCAR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Is Tesla (TSLA) Up 8.1% Since Last Earnings Report?

https://finance.yahoo.com/news/why-tesla-tsla-8-1-163026596.html

5f3afb71-7e72-34f5-a946-c2e17f5cca6b

PCAR

Investors with an interest in Automotive - Domestic stocks have likely encountered both Paccar (PCAR) and Tesla (TSLA). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.Right now, Paccar is sporting a Zacks Rank of #1 (Strong Buy), while Tesla has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PCAR has an improving earnings outlook. But this is just one piece of the puzzle for value investors.Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.PCAR currently has a forward P/E ratio of 13.72, while TSLA has a forward P/E of 60.83. We also note that PCAR has a PEG ratio of 1.75. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TSLA currently has a PEG ratio of 2.72.Another notable valuation metric for PCAR is its P/B ratio of 3.65. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TSLA has a P/B of 9.65.Based on these metrics and many more, PCAR holds a Value grade of A, while TSLA has a Value grade of C.Story continuesPCAR stands above TSLA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PCAR is the superior value option right now.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportPACCAR Inc. (PCAR) : Free Stock Analysis ReportTesla, Inc. (TSLA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

PCAR or TSLA: Which Is the Better Value Stock Right Now?

https://finance.yahoo.com/news/pcar-tsla-better-value-stock-164013673.html

7937e8a4-09bb-3678-ad0b-9f6e26dd3f95

PCAR

Investors interested in Auto-Tires-Trucks stocks should always be looking to find the best-performing companies in the group. Is General Motors Company (GM) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.General Motors Company is a member of our Auto-Tires-Trucks group, which includes 111 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. General Motors Company is currently sporting a Zacks Rank of #2 (Buy).Over the past 90 days, the Zacks Consensus Estimate for GM's full-year earnings has moved 17% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.According to our latest data, GM has moved about 10% on a year-to-date basis. Meanwhile, stocks in the Auto-Tires-Trucks group have lost about 8% on average. This shows that General Motors Company is outperforming its peers so far this year.One other Auto-Tires-Trucks stock that has outperformed the sector so far this year is Paccar (PCAR). The stock is up 17.4% year-to-date.The consensus estimate for Paccar's current year EPS has increased 10.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).Looking more specifically, General Motors Company belongs to the Automotive - Domestic industry, a group that includes 20 individual stocks and currently sits at #84 in the Zacks Industry Rank. Stocks in this group have lost about 23.7% so far this year, so GM is performing better this group in terms of year-to-date returns. Paccar is also part of the same industry.Story continuesGoing forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to General Motors Company and Paccar as they could maintain their solid performance.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportGeneral Motors Company (GM) : Free Stock Analysis ReportPACCAR Inc. (PCAR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Is General Motors (GM) Stock Outpacing Its Auto-Tires-Trucks Peers This Year?

https://finance.yahoo.com/news/general-motors-gm-stock-outpacing-134012667.html

25229176-7b4b-35c8-ad4d-79d9a98e6f6c

PCAR

Paccar (PCAR) closed at $114.03 in the latest trading session, marking a -0.54% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.11%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.41%.Shares of the truck maker have appreciated by 8.15% over the course of the past month, outperforming the Auto-Tires-Trucks sector's gain of 0.55% and the S&P 500's gain of 2.7%.Analysts and investors alike will be keeping a close eye on the performance of Paccar in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.15, reflecting a 4.44% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.07 billion, indicating a 0.26% increase compared to the same quarter of the previous year.PCAR's full-year Zacks Consensus Estimates are calling for earnings of $8.14 per share and revenue of $32.32 billion. These results would represent year-over-year changes of -15.3% and -2.99%, respectively.Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Paccar. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.17% higher. Paccar presently features a Zacks Rank of #1 (Strong Buy).Story continuesLooking at its valuation, Paccar is holding a Forward P/E ratio of 14.09. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 14.09.Meanwhile, PCAR's PEG ratio is currently 1.79. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Automotive - Domestic industry currently had an average PEG ratio of 1.79 as of yesterday's close.The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 84, positioning it in the top 34% of all 250+ industries.The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportPACCAR Inc. (PCAR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Paccar (PCAR) Dipped More Than Broader Market Today

https://finance.yahoo.com/news/why-paccar-pcar-dipped-more-221520708.html

f748e03b-9c70-388f-9ddf-7f9070c67ff9

PCG

PG&E Corporation (NYSE:PCG) Q4 2023 Earnings Call Transcript February 22, 2024PG&E Corporation isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).Operator: Thank you for standing by. And welcome to the PG&E Corporation Fourth Quarter 2023 Earnings Release Call. I would now like to welcome Jonathan Arnold, Vice President of Investor Relations to begin the call. Jonathan, over to you.Jonathan Arnold: Good morning, everyone, and thank you for joining us for PG&E’s Fourth Quarter 2023 Earnings Call. With us today are Patti Poppe, Chief Executive Officer; and Carolyn Burke, Executive Vice President and Chief Financial Officer. We also have other members of the leadership team here with us in our Oakland headquarters. First, I should remind you that today’s discussion will include forward-looking statements about our outlook for future financial results. These statements are based on information currently available to management. Some of the important factors, which could affect our actual financial results are described on the second page of today’s earnings presentation. The presentation also includes a reconciliation between non-GAAP and GAAP financial measures.The slides along with other relevant information can be found online at investor.pgecorp.com. We would also encourage you to review our Annual Report on Form 10-Q for the year ended December 31, 2023. With that, it’s my pleasure to hand the call over to our CEO, Patti Poppe.Patricia Poppe: Thank you, Jonathan. Good morning, everyone. This morning we reported full year core earnings of $1.23 delivering at the high end of our annual guidance range. This result represents growth of 12% over our 2022 results of $1.10. In the fourth quarter we recognized the full year benefit of our 2023 general rate case as expected. I’m also pleased to announce that we exceeded our 2% annual nonfuel O&M savings target for the second consecutive year with savings coming in at 5.5% and pushing our EPS to the high end of the range. Because these savings were predominantly generated by reducing waste and improving service, they benefit customers today and benefit investors for years to come. Looking to 2024, we are reaffirming our at least 10% growth target which is now based on our actual 2023 results of $1.23.Story continuesThis results in an increase to our 2024 core earnings guidance range with a new higher midpoint of $1.35 versus our previous guidance of $1.33. We also reaffirm our commitment to at least 9% core EPS growth for both 2025 and 2026, re-based off our actual 2023 results in our new 2024 range. In addition, I'm pleased to share that we're extending our core EPS growth guidance of at least 9% for an additional two years through 2028. Our needed customer investment leads to strong rate-based growth, which continues to be the primary driver of our future earnings growth. We're providing you with updated five-year forecasts for both rate-based and CapEx in today's slides. These numbers now extend to 2028 and show a consistent compound annual growth rate of 9.5% using the new base year of 2023.Finally, we reaffirm our commitment to no new equity in 2024 and remain committed to pursuing the most efficient forms of financing available for 2025 and beyond, which Carolyn will discuss in her remarks. On slide four, we've added 2023 actuals illustrating our high end of guidance results and the rebasing of forward year growth rates now through 2028. This is our simple, affordable model in action. The list in 2023 reflects our 5.5% non-fuel O&M reduction well above our 2% plan. Slide five is a reminder of the key elements of our simple, affordable model, which allows us to continue growing customer capital investment at 9% or more while containing customer bill increases at or below assumed inflation in the 2% to 4% range. Key enablers in the model are ongoing annual non-fuel O&M reductions of 2%, efficient financing, and electric low growth in the 1% to 3% range.The proof is in the numbers. The simple, affordable model works. You first saw slide six during our November business update call. This version has been updated for a few additional known items, such as the 2024 cost of capital trigger. Our new ROE of 10.7% took effect on January 1st this year, with collections beginning this month in gas rates and next month for electric. Delivering on this projected 2% to 4% bill growth trajectory is an essential element of the PG&E plan, and one which will be important for building trust with our customers over the long run. For our average gas and electric residential customer, average monthly bill increases are limited to the 2% to 4% range from 2023 through 2026. I wanted to be clear that this includes the step up in 2024 as we implement the GRC and other deferred cost recoveries.Our plan shows average bills stepping down, beginning later this year and further in both 2025 and 2026, keeping the average annual increase in the lower half of the 2% to 4% range as catch-up recoveries roll off. Two of the larger items are around $1 billion of 2022 WMCE interim rate relief, which comes off bills in mid-2024, and the 24-month collection of our first-year GRC revenues, which come off at the start of 2026. Let me say that again. Based on what we know today, our bills will rise at the lower half of the range, around 2.5% per year on average for the duration of this rate case from 2023 through 2026. Let's shift gears to the significant progress the team has made on risk mitigation. Slide seven updates our 2023 admission data for the full year.Total CPUC reportable admissions came in at 65% for 2023, down 68% from the 2017 baseline, and 29% down from 2022. On the right side of the slide, we're showing our weather normalized ignition rate, which is a metric from our wildfire mitigation plan. This year's number of 0.93 was a reduction of 71% from 2017, and our lowest annual number since we began calculating this metric. The metric demonstrates that we continue to drive down wildfire risk in 2023, even after adjusting for fewer circuit mile days under our three or higher conditions when the risks of catastrophic wildfire are highest. While we're extremely pleased with these results, our team certainly isn't stopping here. We see further opportunities to drive overall wildfire risk reduction beyond the 94% achieved in 2023, as we continue with additional system hardening and deployment of new technologies.In addition to the physical risk reduction, financial risks are also lower, including key protections under AB 1054, which were reaffirmed with the issuance of our annual safety certificate last month. Looking forward, here on Slide eight, we want to take a moment to highlight how we see PG&E offering investors a truly differentiated, high-quality utility growth story. This starts with premium rate-based growth and industry leading 9.5%. What sets us apart is our commitment to make this investment affordable for our customers. The key enabler is our ability to drive consistent non-fuel O&M savings as we deploy our lane operating system in a utility, which previously saw cost compound at an annual 10% rate over the prior five years. As a reminder, several years of doing whatever was necessary to respond to back-to-back crisis pushed our capital-to-expense ratio far below the industry average.This is where we have a wealth of opportunity and a long runway to drive efficiencies with sustainable savings benefiting both our customers and our investors. We expect future load growth related to California's leadership and electrification to be a further differentiator and one which will help keep customer build growth within our 2% to 4% forecast. In addition to continued adoption of electric vehicles throughout our service territory, we have seen a three-fold increase in data center applications in 2023 versus the prior four years. We plan to speak more about these load growth trends over the course of this year, including at an investor meeting which we are planning for June 12th in New York, so please mark your calendars for that. The fundamental differentiators of rate-based growth, O&M savings, and load growth, we would add our constructive state regulatory and policy environment in California.Key elements of the California regulatory model include four years of revenue certainty under the GRC, returns which are set separately from the GRC including a formulaic adjustment mechanism, and timely recovery for pass-through of important cost categories including fuel and pension. With our GRC resolved, we now have revenue certainty extended through 2026, giving us the best level of regulatory visibility we've had since I joined PG&E and something which any regulated utility would love. This brings me to our performance playbook, including our lean operating system, which is becoming a critical differentiator for PG&E as we continue building a sustainable culture based on continuous improvement and what we refer to as breakthrough thinking.And so, on slide nine, to my story of the month, or in this case, the story of the year. Let me first take you back to the beginning of 2023. We had a goal to underground 350 miles of electric lines at a unit cost of $3.3 million per mile. We started 2023 with only about five miles of civil construction fully complete. At that point, we had hundreds of miles still to design, thousands of individual easements to negotiate, 345 miles of trenches to dig, and 350 miles of cable to pull. And then, the winter storms hit. 15 atmospheric rivers to be exact, which brought civil work to a near standstill through April. So, how did we deliver on 2023 undergrounding plan? As scoped, on time, and at better than targeted unit cost performance? Well, during a visit with our board of directors in December, I watched proudly as the undergrounding team described how they use the PG&E performance playbook every day and at every level.What they shared wasn't one silver bullet, not just a breakthrough idea or a value stream map or a waste elimination. Rather, it was this team's commitment to living the culture, using the tools, and building the capabilities that enabled our results and which will cause future success. In 2023 alone, the undergrounding team eliminated $68 million in waste for the benefit of our customers. They did this by updating our standards, deploying optimal construction methods, and better managing spoils. With additional improvements, average unit cost came in below our target of $3.3 million to just under $3 million per mile. And the average construction cycle time improved from five and a half months back in February 2023 to three and a half months today.Brightly-lit nighttime view of an electricity power grid with distribution lines and transmission substations.This was a total game changer in meeting and exceeding our 350 mile goals. Thanks to our 2023 undergrounding efforts, we can avoid proactively turning off power to about 15,000 households during dangerous high wind events. These customers who live in our highest risk areas can now sleep at night knowing they do not have to trade safety for reliability or worry that a tree might land on the power line in their backyard. This is climate resilient infrastructure for all weather conditions and for generations to come. The team reminded us that before lean we would have managed the underground efforts through spreadsheets and phone calls. That was the old PG&E way. Undergrounding team is showing us the new PG&E. Imagine the impact our performance playbook can have enterprise-wide.It's great that we achieved our 2023 goals. What's even better is that we've created a playbook enabling consistent premium performance year-end and year-out. As I like to say, performance is power. This means delivering safe, affordable and reliable service to our hometowns along with consistent predictable financial results. With that, let me turn it over to Carolyn.Carolyn Burke: Thank you Patti and good morning everyone. Today I'm excited to cover three topics with you. First, a recap of our 2023 results. Second, our differentiated growth opportunities. And third, how are we making this growth affordable for our customers by executing on our simple, affordable model? Starting here on slide 10, I'm pleased to report that we met or exceeded all of our 2023 goals, both operational and financial. And we're on track for each of our longer-term commitments. Our 2023 report card is another proof point that our performance playbook is working. The culture and capabilities we are building here at PG&E are enabling our delivery of consistent, predictable results. It's a virtue to recycle, setting industry-leading targets, using our lean operating system to manage the day-to-day work, and then delivering on our promises, building trust with our customers and our investors.This is how we've made our system safer, faster. It's how we deliver it on our 2022 and 2023 EPS guidance. And it's how we can further strengthen our balance sheet while keeping bills affordable for our customers. I'm especially proud that we reduce non-fuel operating and maintenance costs by 5.5% in 2023. That's in addition to fully observing inflation and on top of the 3% we achieved in 2022. Looking forward, we see no shortage of opportunities to continue delivering better outcomes for customers at a lower cost all across the business. I'd note that not all of the 2023 reduction hit the bottom line, with the majority directly benefiting customers, including our self-insurance solution and substantial efficiencies in our vegetation management work.Our mid-teens by 2024 FFO to debt target is on track, and there is no change to our plan to reduce parent company debt by at least $2 billion by the end of 2026. We remain firmly committed to achieving solid investment grade ratings. In December, we were pleased to see S&P revised their rating outlook from stable to positive, indicating the potential for an upgrade in the next 12 months. And earlier this week, I'm delighted to say that Moody's upgraded our rating by one notch, also leaving us some positive outlook. This puts us one notch away from investment grade, one step closer to our goal. We value the support we receive from our regulators, helping us strengthen our balance sheet while we execute our plan to affordably serve customers and investors.For example, on February 1st, the Commission issued a proposed decision authorizing interim rate relief in the amount of $516 million, while our wildfire and gas safety cost application is pending. The interim relief may be voted on as early as March 7th, and would provide for collections to start as soon as practical over a 12-month period. Moving to slide 11, as you can see here, and as expected, the largest discrete driver of fourth quarter and full-year results was the approval of our 2023 general rate case, which added $0.15. We also saw a benefit of $0.03, partly attributed to our non-fuel O&M savings, including better resource management and improved planning and execution. Please recall that our O&M savings are part of our simple, affordable model, which allows us to complete more work for the benefit of our customers while delivering affordability.That's exactly what you see here with $0.05 of redeployment. Our savings allowed us to stand up 10 additional model yards, designed to improve frontline productivity with more efficient processes, minimizing rework, and eliminating waste as we deliver for our customers. We also provided additional training resources for our co-workers, and we accelerated inspections, calling forward work to protect 2024, and ensuring we're doing the highest priority work for our customers. We use every extra resource to better serve our customers and achieve our commitments to you, our investors. We weather the ups and downs to deliver consistent predictable results. As Patti highlighted, we ended 2023 at the top of our EPS guidance range, although our core philosophy remains to redeploy excess earnings back into the system, benefiting customers while de-risking and extending premium growth on behalf of investors.On slide 12, we are extending our CapEx and rate-based growth projections another year to include 2028, showing a five-year annual rate-based growth of 9.5%. Our new five-year capital plan represents an increase of over $10 billion, or approximately 20% over the 2023 to 2027 plan. This also is over 45% higher than the previous five-year period from 2019 to 2023. The amounts shown on this slide reflect our base capital plan, including how much our rate-based is already approved by regulators. The vast majority, or 93%, of our rate-based for this year is already authorized, as is 90% of our 2026 forecast. In addition to our plan, there are substantial needs to do more. Specifically, we have at least an incremental $5 billion of CapEx opportunities, which we will seek to fold into our plan while still meeting our affordability commitments.These include capacity investments and transmission upgrades to support continued system-wide growth. As we work to drive affordability under our simple affordable model and ongoing deployment of lean, we will look for opportunities to add this important work. As you know, this capital investment fuels both earnings growth and improves our operating cash flow, as illustrated on slide 13, which we have updated and extended since we first showed it at last year's investor day. As shown, we're projecting substantial improvement in our operating cash flow in 2024, partly as a result of the final GRC decision. Operating cash flow grows from $5 billion in 2023 to $11 billion by 2028, providing resources to grow our capital investment for customers from $9.8 billion in 2023 to $14 billion in 2028, and substantially improving our cash flow before dividends.As Patti mentioned, our guidance includes no new equity in 2024. As we look forward, we have many good efficient financing choices, including close to $2.5 billion of annual retained earnings today and rising from there at our present low level of dividend payout. Half of our funding provided from normal utility debt, substantial levels of prior cost recovery, favorable tax conditions, poor working capital improvements, the sale of a minority interest in our non-nuclear generation assets, and potentially reintroducing an at-the-market or ATM equity program in 2025. While we are not giving the final mix of our 2025 financing plan today, rest assured that our plan only includes choices which are accretive to our guidance. In light of this, we are extending our core EPS growth rate of at least 9% through 2027 and 2028.Moving to slide 14, this is our simple affordable model and a breakdown of the 5.5% O&M savings last year. Patti shared details about our undergrounding achievements in 2023, and there are many more similar stories throughout the business. I’ll share just one more with you today. At our investor day, you heard about improvements we were making to the new customer connections process by leveraging our performance playbook. Now, here's how we ended the year. The team was able to save $24 million while decreasing average end-to-end lead time by 13%. That's a 50-day reduction. We also reduced engineering design time by 33%, a 37-day reduction. As a result, customer on-time delivery improved by 25 percentage points. I share this example to make an important point.This is not a cost-cutting program at PG&E. Rather, this is about good business decisions, which are sustainable for the long-term, and it's about using the performance playbook, including the Lean operating system, to improve how we do our work every day. Our actions are improving the customer experience and making capital and safety investments affordable. I'll end here on slide 15 with regulatory catalysts on the horizon in 2024. As you can see, they are still plentiful and include resolution of our proposed PacGen sale, a proposed decision in Phase 2 of our GRC, implementing Senate Bill 410 and unlocking our potential to meet the new customer demand here in California, filing of our 10-year undergrounding plan, and bringing our $5 billion of incremental capital opportunities into the plan while still meeting our affordability goals.Finally, I'll comment on our cost of capital adjustment advice letter, which was approved by Commission staff in December, raising our allowed ROE from 10% to 10.7% and truing up our cost of debt. While this adjustment is already approved and in customer rates starting this month, in January, a joint intervener group filed a late request for review of staff's approval. While we recognize this creates some uncertainty for investors, we were pleased that the Commission staff upheld operation of the adjustment mechanism in December as intended. Intervenors offered no new fundamental arguments in their request for review, and we look forward to this issue being resolved expeditiously. In the meantime, as we have said consistently, our EPS growth guidance is not dependent on the outcome, and we value the opportunity to redeploy the revenue uplift for the benefit of customers while delivering consistent, predictable results for investors.There's a lot to look forward to in 2024 and beyond. Including our 10% core EPS growth guidance and our at least 9% growth rate now extended through 2028. With that, I'll hand it back to Patti.Patricia Poppe: Thank you, Carolyn. Before we take your questions, let me introduce our new report card here on slide 16, against which you'll be able to track our record of differentiated performance. We're showing our results for 2022 and 2023, along with our goals for 2024 and beyond. We believe, we have a differentiated plan and the right team in place to deliver on these objectives. As I said earlier, performance is power, and we have significant operational momentum with a healthy set of catalysts in front of us. The PG&E turnaround is on track. We trust you feel the momentum as we do. We look forward to seeing you at upcoming investor conferences, as well as our investor meeting scheduled for June 12th in New York. With that, Operator, please open the lines for questions.See also 25 Best Zoos in the US and 16 Best Exercises For Lower Back Pain.To continue reading the Q&A session, please click here.

Insider Monkey

PG&E Corporation (NYSE:PCG) Q4 2023 Earnings Call Transcript

https://finance.yahoo.com/news/pg-e-corporation-nyse-pcg-155457730.html

fd77f9d1-71a1-3f44-b014-7dfad034aa1d

PCG

In this article, we discuss 12 best green stocks to invest in 2024. If you want to skip our detailed discussion on the clean energy industry, head directly to 5 Best Green Stocks To Invest In 2024.In 2023, the solar energy market saw positive growth, while the wind energy sector faced significant challenges. Wind energy projects struggled with rising costs for materials, labor, and capital, as well as delays in interconnection, permits, and transmission. However, there was some relief in the supply chain as new clean energy and climate laws came into effect. Federal investments in clean energy and increasing demand for decarbonization from both public and private sectors are driving forces for renewables. These factors are expected to help renewables overcome obstacles in 2024 to meet climate targets, as per Deloitte. 2024 is expected to see varying speeds of growth across renewable technologies, industries, and markets. The Energy Information Administration predicts a 17% growth in renewable deployment, reaching 42 gigawatts in 2024, which would account for nearly a quarter of electricity generation.According to S&P Global Commodity Insights, investments in clean energy technology are projected to reach nearly $800 billion in 2024, a 10% to 20% increase from 2023. Solar energy is expected to receive the largest share of this investment, accounting for around 55% of the total. Onshore wind will see significant investment as well, although at a slower growth rate. The fastest-growing sectors are anticipated to be battery energy storage and electrolysis. Despite increasing costs for offshore wind and hydrogen energy, decreasing raw material prices are likely to lead to a continued decline in the average cost of clean energy technologies in 2024. Solar and battery costs have already dropped significantly since 2022 and are expected to fall below 2020 levels in 2024. While solar and battery manufacturers have enjoyed healthy margins, they are expected to face lower margins in the coming years. Downstream players, such as distributors and installers, may face challenges due to high inventories and declining prices. The oversupply and decreasing raw material prices in solar modules and batteries led to a price war in the second half of 2023, with further market consolidation expected in 2024. The global wind turbine supply market is historically divided between Chinese manufacturers serving the domestic market and Western firms catering to the rest of the world. Story continuesOn a more positive note, one of the key commitments from COP28 is to triple global renewables capacity by 2030 to 11 terawatts. This initiative aims to reduce the reliance on fossil fuels in global energy production. The pledge is part of a broader effort to decarbonize the energy sector, which is responsible for about three-quarters of global greenhouse gas emissions. Sultan al-Jaber, the United Arab Emirates' COP28 summit President, said:"This can and will help transition the world away from unabated coal."Led by the European Union, the United States, and the United Arab Emirates, the pledge also includes plans to expand nuclear power, reduce methane emissions, and limit private finance for coal power. The goal of tripling renewable energy capacity is to eliminate CO2-emitting fossil fuels from the world's energy system by 2050 at the latest.In this article, we discuss the best green stocks to invest in 2024, including General Electric Company (NYSE:GE), NextEra Energy, Inc. (NYSE:NEE), and PG&E Corporation (NYSE:PCG).Our Methodology Green stocks refer to renewable energy, energy storage, battery, and electric vehicle stocks, which were selected based on overall hedge fund sentiment toward each stock. We have assessed the hedge fund sentiment from Insider Monkey’s database of 933 elite hedge funds tracked as of the end of the fourth quarter of 2023. The list is arranged in ascending order of the number of hedge fund holders in each firm. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). 12 Best Green Stocks To Invest In 2024A photovoltaic field at dawn, its solar panels shimmering in the light of a new day.Best Green Stocks To Invest In 202412. Albemarle Corporation (NYSE:ALB)Number of Hedge Fund Holders: 27Albemarle Corporation (NYSE:ALB) creates, produces, and sells specialty chemicals all over the world. The company’s operations are divided into three segments – Energy Storage, Specialties, and Ketjen. The Energy Storage unit provides lithium compounds, services for handling reactive lithium products, and recycles lithium-containing by-products. The Specialties segment offers bromine-based chemicals, lithium specialties, cesium products for the chemical and pharmaceutical sectors, and zirconium, barium, and titanium products for pyrotechnics like airbag initiators. The Ketjen segment focuses on clean fuel technologies. Albemarle Corporation (NYSE:ALB) is one of the best clean energy stocks.On February 22, Albemarle Corporation (NYSE:ALB) declared a $0.40 per share quarterly dividend, in-line with previous. The dividend is to be paid on April 1 to shareholders on record as of March 15.According to Insider Monkey’s fourth quarter database, 27 hedge funds were bullish on Albemarle Corporation (NYSE:ALB), down from 37 funds in the preceding quarter. Philippe Laffont’s Coatue Management held a significant position in the company, with 591,603 shares worth $85.47 million.In addition to General Electric Company (NYSE:GE), NextEra Energy, Inc. (NYSE:NEE), and PG&E Corporation (NYSE:PCG), Albemarle Corporation (NYSE:ALB) is one of the best clean energy stocks. The London Company Large Cap Strategy stated the following regarding Albemarle Corporation (NYSE:ALB) in its fourth quarter 2023 investor letter:“Albemarle Corporation (NYSE:ALB) – ALB underperformed as weak lithium prices drove downward revisions to earnings expectations, and sentiment became more negative regarding demand for electric vehicles. Commodity prices are inherently uncertain, but we continue to view ALB-as a winner in this growing industry and favorably positioned on the cost curve. Our long- term view of ALB is not affected by short-term supply- demand dynamics for the commodity.”11. Fluence Energy, Inc. (NASDAQ:FLNC)Number of Hedge Fund Holders: 28Fluence Energy, Inc. (NASDAQ:FLNC) provides energy storage solutions, services, and AI-powered software for renewable energy and storage projects worldwide. Their products include integrated hardware, software, and digital intelligence. Fluence Energy, Inc. (NASDAQ:FLNC) serves the Americas, Asia Pacific, Europe, the Middle East, and Africa. It is one of the best clean energy stocks. On February 7, Fluence Energy, Inc. (NASDAQ:FLNC) announced financial results for the first quarter of fiscal year 2024. The company reported a GAAP EPS of -$0.14 and a revenue of $364 million.According to Insider Monkey’s fourth quarter database, 28 hedge funds were bullish on Fluence Energy, Inc. (NASDAQ:FLNC), up from 17 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the largest shareholder of the company, with 2.28 million shares valued at $54.45 million.Here is what ClearBridge Investments Value Equity Strategy has to say about Fluence Energy, Inc. (NASDAQ:FLNC) in its Q4 2021 investor letter:“During the quarter we participated in the initial public offering of Fluence Energy, one of the market leaders in the rapidly growing electricity storage market. Energy storage is set to become one of the key areas of investment for energy transition given the intermittency of renewables. Current estimates project spending on energy storage will grow from roughly $5 billion per year currently to $50 billion annually over the coming decades. As this spending ramps up, we expect Fluence’s revenues to grow well above 20% over the next several years and allow the business to scale profitably. Based on the IPO price, Fluence was valued at roughly 2x forward revenues and less than market multiples on cash flow and earnings by mid-decade in our base case scenario. With over 20% market share the stock is well-positioned to follow growth higher, especially if Fluence can enhance its business model with services revenues and a software offering to handle the growing complexity of an increasingly digital grid.10. Array Technologies, Inc. (NASDAQ:ARRY)Number of Hedge Fund Holders: 32Array Technologies, Inc. (NASDAQ:ARRY) is one of the best clean energy stocks. It produces and markets ground-mounted tracking systems for solar energy projects globally, including in the United States, Spain, Brazil, and Australia. The company has two segments – Array Legacy Operations and STI Operations. It was established in 1989 and is based in Albuquerque, New Mexico.On November 7, Array Technologies, Inc. (NASDAQ:ARRY) announced a Q3 non-GAAP EPS of $0.21, outperforming market consensus by $0.08. Its revenue came in at $350.4 million, missing estimates by $26.53 million.According to Insider Monkey’s fourth quarter database, 32 hedge funds were bullish on Array Technologies, Inc. (NASDAQ:ARRY), compared to 40 funds in the prior quarter. Herbert Frazier’s Hill City Capital held the largest position in the company, with 8.84 million shares worth approximately $148.52 million.Here is what ClearBridge Investments has to say about Array Technologies, Inc. in its Q2 2021 investor letter:“Commodity price increases have led to margin pressure across industries, and in some cases have altered our thesis for holding a company. This was the case this quarter with top detractor Array Technologies, an equipment manufacturer that makes trackers and associated software for ground-mounted solar projects, which we sold and may revisit again in the future. Margins also came under pressure for pasture-raised eggs company Vital Farms, due to an increase in commodity prices that it was unable to pass through to end customers. This aspect of the business model is being re-evaluated by management; we saw better opportunities elsewhere and sold our position.”9. Nextracker Inc. (NASDAQ:NXT)Number of Hedge Fund Holders: 33Ranking 8th on our list of the best clean energy stocks is Nextracker Inc. (NASDAQ:NXT), an energy solutions firm, which delivers solar tracker and software solutions for utility-scale and distributed solar projects globally. On January 31, Nextracker Inc. (NASDAQ:NXT) announced financial results for the third quarter of fiscal year 2024. The company reported a non-GAAP EPS of $0.96 and a revenue of $710.43 million, outperforming Wall Street estimates by $0.47 and $92.94 million, respectively.According to Insider Monkey’s fourth quarter database, 33 hedge funds were bullish on Nextracker Inc. (NASDAQ:NXT), up from 26 funds in the preceding quarter. 8. Sunrun Inc. (NASDAQ:RUN)Number of Hedge Fund Holders: 35Sunrun Inc. (NASDAQ:RUN) is one of the best clean energy stocks, and is involved in the design, development, installation, sale, and maintenance of residential solar energy systems across the United States. The company also provides battery storage options alongside solar systems and offers services to commercial developers, including multi-family and new homes.On February 23, Sunrun Inc. (NASDAQ:RUN) revealed the pricing details of $475 million in total principal amount for their 4.00% convertible senior notes due in 2030, which were offered in a private placement.According to Insider Monkey’s fourth quarter database, 35 hedge funds were bullish on Sunrun Inc. (NASDAQ:RUN), an increase from 26 funds in the last quarter. William B. Gray’s Orbis Investment Management is the largest position holder in the company, with 14.2 million shares valued at $279 million.Here is what Horizon Kinetics has to say about Sunrun Inc. (NASDAQ:RUN) in its Q2 2021 investor letter:“What this table did not cover is valuation. What’s expensive, what’s cheap? A good business that is too expensive is not a good investment. The most expensive business in the table is Sunrun. Sunrun is the nation’s largest residential rooftop solar panel system seller/installer. Sunrun’s valuation might also shed Thumbnail valuation.To start at the top of the income statement, Sunrun shares trade at 10.3x revenues. The most profitable company in the S&P 500, Microsoft, trades at 13x revenues. Sunrun operates at a loss. Obviously, not only is tremendous growth anticipated, but tremendous profitability, too.Let’s simply accept that investors have correctly anticipated Sunrun’s future success and make that the starting point for a valuation exercise.If, 10 years from now, Sunrun is ultimately valued at 25x net income, and if today’s $9.5 billion valuation is appropriate, that would require $380 million of net income ($9,500 million ÷ 25).Let’s say Sunrun will have the same net profit margin as the average S&P 500 company, which is 10%. That means it would need $3,800 million of sales to generate that level of earnings ($380 mill ÷ 10%).Since sales are now $920 million, they would have to rise by 4.1x in the next 10 years. That would require annual sales growth of 15.2%.You see how neatly that all works: investors accept the company’s 10-year, 15% annual sales growth projections, and if a 10% net profit margin and a P/E of 25x earnings are reasonable, then the company will have a $9.5 billion market cap at that time. Except that is the current price. That means a 10-year return of zero.In order to get a 10% annualized return from the stock, Sunrun would need to be priced at a P/E of 65x its earnings 10 years from now, if at a 10% net margin. Or it would have to have some combination of lower P/E and higher growth and/or higher profit margin.In the meantime, this is Sunrun’s recent pattern of revenue growth and profitability (the company did recently increase its estimate of installed-capacity growth in 2021 from 20-25% to a new estimate of 25% to 30%).For the time being, Sunrun loses an extraordinary amount of money, an amount that has been getting larger. Perhaps there are economies of scale that will manifest in the future, so that it will attain profitability. Perhaps from the roughly one-half of Sunrun’s revenues that are from long-term customer service agreements that run up to 25 years. For now, though, the company would seem to require a lot of external financing, and that is one of the greatest business risks.”7. Constellation Energy Corporation (NASDAQ:CEG)Number of Hedge Fund Holders: 41Constellation Energy Corporation (NASDAQ:CEG) produces and sells electricity across the United States. Their operations are divided into five segments – Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions. The company possesses over 32,000 megawatts of generating capacity via nuclear, wind, solar, natural gas, and hydroelectric assets.On November 6, Constellation Energy Corporation (NASDAQ:CEG) reported a Q3 GAAP EPS of $2.26, beating estimates by $1.23, and a revenue of $6.11 billion, missing market consensus by $1.01 billion.According to Insider Monkey’s fourth quarter database, 41 hedge funds were bullish on Constellation Energy Corporation (NASDAQ:CEG), in contrast to the prior quarter when 45 funds had invested in the stock. William B. Gray’s Orbis Investment Management is the largest shareholder of the company, with 6.15 million shares valued at $718.88 million.Like General Electric Company (NYSE:GE), NextEra Energy, Inc. (NYSE:NEE), and PG&E Corporation (NYSE:PCG), Constellation Energy Corporation (NASDAQ:CEG) is one of the best clean energy stocks to invest in 2024. It ranks 6th on our list. Sound Shore Management made the following comment about Constellation Energy Corporation (NASDAQ:CEG) in its Q3 2023 investor letter:“On the plus side of the ledger, we had strong contributions from independent power producers Vistra and Constellation Energy Corporation (NASDAQ:CEG). Both stocks surged with higher US electricity prices as strong summer demand exposed reliability issues in many regions of the nation’s electric grid. Meanwhile, Midwest focused Constellation is the biggest producer of carbon-free electricity in the US with nuclear power plants representing the majority of its capacity. We added the name in January 2023 when the stock was trading at a below normal 15 times earnings. Our research identified an upside to earnings power from maturing hedges and regulatory changes, including the Inflation Reduction Act’s nuclear credit. A recent spinout from Exelon Corp, we viewed the strength of Constellation’s clean, reliable baseload power model as an appealing and high potential offering for residential and commercial customers. The company’s recent contract to supply Microsoft at premium power prices is evidence of the opportunity. Constellation is yet another example of an industry undergoing tremendous change that can offer attractive investment opportunities for investors with patience and a research process to uncover specific companies that are well positioned.”6. Enphase Energy, Inc. (NASDAQ:ENPH)Number of Hedge Fund Holders: 43Enphase Energy, Inc. (NASDAQ:ENPH) creates home energy solutions for the solar industry worldwide. The company’s products include semiconductor-based microinverters that convert energy at the solar module level. These microinverters are integrated with proprietary networking and software technologies, enabling energy monitoring and control. Enphase Energy, Inc. (NASDAQ:ENPH) is one of the best clean energy stocks.On February 7, Enphase announced that it anticipates an increase in demand for its products in the second quarter, particularly in Europe. The company projects improved revenue numbers in June 2024, attributing the positive outlook to seasonally better sell-through numbers, especially in the European market where demand is on the rise.According to Insider Monkey’s fourth quarter database, 43 hedge funds were bullish on Enphase Energy, Inc. (NASDAQ:ENPH), compared to 40 funds in the last quarter. D E Shaw held a significant position in the company, with 1.06 million shares worth $140.37 million.ClearBridge Sustainability Leaders Strategy made the following comment about Enphase Energy, Inc. (NASDAQ:ENPH) in its Q3 2023 investor letter:“Against this backdrop the Strategy underperformed, with the majority of detractors renewable- or utility-related companies suffering largely from cyclical interest rate pressures that have pushed up financing costs for the companies and weighed on income-producing sectors such as utilities. Most acutely, higher interest rates have dampened near-term U.S. residential solar demand, hurting Enphase Energy, Inc. (NASDAQ:ENPH) in particular. As a result, we sold Enphase, and invested proceeds into SolarEdge Technologies, which has greater exposure to European and utility-scale end markets, which are under comparatively less pressure.” Click to continue reading and see 5 Best Green Stocks To Invest In 2024.  Suggested articles:Jim Cramer Says Do Not Buy These 11 Stocks13 Best Major Stocks to Buy Right Now11 Best Revenue Growth Stocks to Invest In Disclosure: None. 12 Best Green Stocks To Invest In 2024 is originally published on Insider Monkey.

Insider Monkey

12 Best Green Stocks To Invest In 2024

https://finance.yahoo.com/news/12-best-green-stocks-invest-141041741.html

8a525d63-9e51-34a1-81a5-cdc42c4607f1

PCG

Dive Brief:The California Public Utilities Commission on Thursday approved a long-term power line undergrounding program allowing major utilities to propose 10-year plans designed to harden the state’s electric grid against wildfire risks while driving down costs through economies of scale.Moving power lines underground can reduce the risk of wildfire ignition by 98%, according to Pacific Gas & Electric, but critics of the practice argue there are cheaper methods such as reconductoring lines in at-risk areas. California utilities say burying their lines can cost from $1.85 million to $6.1 million per mile, depending on the location.Under the new program, utilities with at least 250,000 customers can submit undergrounding plans to the state’s Office of Energy Infrastructure Safety, which must approve or deny the plan within nine months. The CPUC will then have nine months to approve the costs.Dive Insight:Regulators stood up the new undergrounding program just four months after PG&E’s last general rate case was approved, which included authorization to bury more than 1,200 miles of power lines.In that decision “we found that increased investments in hardening the grid would provide great value to Californians,” CPUC Commissioner John Reynolds said in a statement. “The rules adopted today build on those investments, ensuring that long-term undergrounding promotes a safer grid in the most cost-effective way.”The new undergrounding program was authorized by legislators in 2022, in Senate Bill 884. It requires utilities to apply for available federal, state and other funding to help pay for the projects, and it calls for periodic audits led by an independent monitor selected by the Office of Energy Infrastructure Safety.The CPUC said any approval of undergrounding costs must include certain conditions including annual cost caps, unit cost caps, a cost-benefit threshold and requirements for third-party funding to be applied to reduce the annual cost cap.Story continues“This program creates a process for expedited undergrounding ... while also incorporating oversight and ratepayer protection measures,” said Commissioner Darcie Houck.PG&E in 2021 set a goal to move 10,000 miles of power lines underground and in December said it had completed about 600 miles of that work while also reducing costs from $4 million per mile to below $3 million per mile.PG&E filed for bankruptcy in 2019 after fires caused by its power lines burned hundreds of thousands of acres in Northern California and led to more than 100 deaths. It paid out $25.5 billion to resolve its fire-related liabilities.The utility said it plans to file its 10-year undergrounding plan by the middle of this year. Critics say customers can not afford more rate increases, however.PG&E’s general rate case approved by the CPUC in November added about $34 per month to average bills, according to local news sources. And regulators gave interim approval to a smaller increase on Thursday, which also included more than $500 million for upgrades including undergrounding.“This situation is untenable for many of PG&E's residential customers, who have seen rates balloon by over 80% over the last three years, making PG&E the most expensive power provider in the state,” Assemblymember Dawn Addis, D, and other lawmakers said in a letter to the CPUC last week.This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter.

Utility Dive

California regulators approve new program to expedite power line undergrounding

https://finance.yahoo.com/news/california-regulators-approve-program-expedite-083125933.html

62b8ff79-93b6-399f-933f-ad3ef8ad29eb

PCG

California's Cap-and-Trade Program Continues to Benefit PG&E Customers through the California Climate CreditOAKLAND, Calif., March 11, 2024 /PRNewswire/ -- In April, more than five million Pacific Gas and Electric Company (PG&E) customers will automatically receive the California Climate Credit on their energy bill.Pacific Gas and Electric Company (PRNewsfoto/Pacific Gas and Electric Company)Residential households with an active electric account will automatically receive an electric credit of $55.17, an increase from last year's credit of $38.39. Residential households with an active gas account will automatically receive a credit of $85.46, an increase from the $52.78 credit in 2023. That is a total credit of $140.63 for customers receiving both gas and electric service from PG&E. "This credit highlights our partnership with the state to champion environmental responsibility," said Vincent Davis, Senior Vice President, Customer Experience. "It encourages sustainable practices, moving our communities toward a brighter, greener future."The California Climate Credit is part of the state's efforts to fight climate change and is distributed by PG&E to customers as directed by the California Public Utilities Commission (CPUC). This credit is from the California Cap-and-Trade Program, which requires power plants, fuel providers, and large industrial facilities that emit greenhouse gases to buy carbon pollution allowances. The bill credit is designed to help utility customers during the transition to a low-carbon future. Residential customers receive biannual electric credits during April and October, while natural gas customers receive an annual credit in April. Eligible small business customers receive identical electric credits, distributed twice a year. Both sets of customers will receive the second electric credit in October. PG&E will also distribute over $36 million to eligible industrial customers on behalf of the CPUC. Eligibility requirements and other details are online here.Story continuesIn addition to the California Climate Credit, customers are encouraged to explore other ways to save energy, reduce costs on monthly bills, and contribute to building a sustainable future.PG&E Assistance Programs for Income-eligible CustomersCalifornia Alternate Rates for Energy (CARE): offers a discount of 20% or more each month on energy bills.Family Electric Rate Assistance (FERA): offers a monthly discount of 18% on electricity bills for households with three or more people.Energy Savings Assistance (ESA): provides energy-saving improvements at no charge.Relief for Energy Assistance through Community Help (REACH): offers a one-time energy credit of up to $1,000, doubling the previous amount of up to $500 based on past due balances. This is to help with sudden hardship and to prevent service disconnections.Low Income Home Energy Assistance (LIHEAP): a federally funded assistance program overseen by the state that offers a one-time payment to help low-income households pay for heating or cooling in their homes, provides emergency assistance in energy crises, and home weatherization.PG&E's Energy Efficiency DIY Tool KitDid you know you can lower energy bills and save money with PG&E's Energy Efficiency DIY tool kit? With a $200 investment in energy-efficient materials, customers can save nearly $1,000 each year.For more ways to manage your monthly bills, visit: Save Energy & Money.About PG&E Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE: PCG), is a combined natural gas and electric utility serving more than sixteen million people across 70,000 square miles in Northern and Central California. For more information, visit pge.com and pge.com/news   CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/pge-customers-to-receive-up-to-140-63-california-climate-credit-on-spring-energy-bill-302085497.htmlSOURCE Pacific Gas and Electric Company

PR Newswire

PG&E Customers to Receive Up to $140.63 California Climate Credit on Spring Energy Bill

https://finance.yahoo.com/news/pg-e-customers-receive-140-160600780.html

ef4abf54-d922-3f41-a3dd-782531905e2a

PEAK

DENVER, February 26, 2024--(BUSINESS WIRE)--Healthpeak Properties, Inc. (NYSE: PEAK) ("Healthpeak") today announced that, in connection with its and Healthpeak OP, LLC’s ("Healthpeak OP") previously announced consent solicitation and offers to guarantee for Physicians Realty L.P. (a consolidated subsidiary of Physicians Realty Trust (NYSE: DOC) ("Physicians Realty Trust" or "DOC")) senior notes related to Healthpeak’s agreement to merge with Physicians Realty Trust (the "Merger"), it has received the required consents from the holders of the outstanding Physicians Realty L.P. senior notes listed below (collectively, the "DOC Notes") to adopt the proposed amendments to each of the supplemental indentures to the Senior Indenture (each, an "Indenture") governing such DOC Notes.IssuerDebt Security DescriptionCUSIP No.Aggregate Principal AmountConsent PaymentPhysicians Realty L.P.4.300% Senior Notes due 202771951Q AA0$400,000,000$1.00 per $1,000Physicians Realty L.P.3.950% Senior Notes due 202871951Q AB8$350,000,000$1.00 per $1,000Physicians Realty L.P.2.625% Senior Notes due 203171951Q AC6$500,000,000$1.00 per $1,000The adoption of the amendments for each Indenture required consents from at least a majority in aggregate principal amount of each series of DOC Notes outstanding under such Indenture as of the record date for the consent solicitation and offers to guarantee, 5:00 p.m., New York City time, on February 9, 2024. Global Bondholder Services Corporation, the Tabulation Agent, has advised Healthpeak that as of the expiration time for the consent solicitation and offers to guarantee of 5:00 p.m., New York City time, on February 26, 2024 (the "Expiration Time"), Healthpeak and Healthpeak OP have received the required consents of the holders of DOC Notes.Promptly following the closing of the Merger, a supplemental indenture to the Indentures (the "Supplemental Indenture") will be executed and delivered, which Supplemental Indenture will contain the amendments as to which consents were sought and an unconditional and irrevocable guarantee by Healthpeak and Healthpeak OP of the prompt payment, when due, of any amount owed to the holders of the DOC Notes under such DOC Notes and such Indenture and any other amounts due pursuant to such Indenture (the "Healthpeak Guarantee"). The Supplemental Indenture will become effective upon its execution and delivery. The amendments contained in the Supplemental Indenture will not become operative, and the Healthpeak Guarantee will not be issued, until the completion of the Merger.Story continuesIn accordance with the terms of the consent solicitation and offers to guarantee, if the Merger is completed, as soon as practicable thereafter, Healthpeak will make a payment to each holder of DOC Notes for which a valid and unrevoked consent was provided prior to the Expiration Time, in an amount equal to $1.00 for each $1,000 principal amount of DOC Notes for which such holder provided valid and unrevoked consent prior to the Expiration Time.The amendments will amend the following sections contained in the Indentures: (i) the limitation on incurrence of total debt, limitation on incurrence of secured debt, debt service coverage test for incurrence, maintenance of unencumbered assets and insurance covenants would be conformed to the corresponding covenants in Healthpeak’s and Healthpeak OP’s existing indentures, (ii) the maintenance of properties covenant, which is not contained in Healthpeak’s and Healthpeak OP’s existing indentures, would be eliminated from the Indentures, (iii) the financial reporting covenant would be amended to replace Physicians Realty L.P.’s reporting obligations with Healthpeak’s reporting obligations and (iv) the events of default section would be conformed to the corresponding events of default section in Healthpeak’s and Healthpeak OP’s existing indentures.The terms and conditions of the consent solicitation and offers to guarantee were set forth in a Consent Solicitation Statement/Prospectus Supplement dated February 12, 2024, which was filed with the Securities and Exchange Commission, and which was sent to record holders of the DOC Notes.Barclays Capital Inc. and Morgan Stanley & Co. LLC acted as the Solicitation Agents for the consent solicitation and offers to guarantee. Questions regarding the terms of the consent solicitation and offers to guarantee should be directed to Barclays Capital Inc. by calling (800) 438-3242 (toll-free) or (212) 528-7581 (collect) or Morgan Stanley & Co. LLC by calling (800) 624-1808 (toll-free) or (212) 761-1057 (collect).Global Bondholder Services Corporation acted as the Information Agent and Tabulation Agent for the consent solicitation and offers to guarantee. Questions concerning consent procedures and requests for copies of the Consent Solicitation Statement/Prospectus Supplement should be directed to Global Bondholder Services Corporation by calling at (855) 654-2015 (toll-free) or (212) 430-3774 (banks and brokers).This press release is for informational purposes only and is not an offer to purchase or sell, a solicitation of an offer to purchase or sell, or a solicitation of consents with respect to any securities. The solicitation and offers to guarantee were made solely pursuant to an effective shelf registration statement and prospectus and the above-described Consent Solicitation/Prospectus Supplement dated February 12, 2024.The solicitation of consents is not being made in any jurisdiction in which, or to or from any person to or from whom, it is unlawful to make such solicitation under applicable state or foreign securities or "blue sky" laws.About Healthpeak PropertiesHealthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.Forward-Looking StatementsStatements contained in this release that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among other things, statements regarding our and our officers’ intent, belief or expectation as identified by the use of words such as "may," "will," "project," "expect," "believe," "intend," "anticipate," "seek," "target," "forecast," "plan," "potential," "estimate," "could," "would," "should" and other comparable and derivative terms or the negatives thereof. Examples of forward-looking statements include, among other things: (i) statements regarding timing, outcomes and other details relating to current, pending or contemplated acquisitions, dispositions, transitions, developments, redevelopments, densifications, joint venture transactions, leasing activity and commitments, capital recycling plans, financing activities, or other transactions discussed in this release; (ii) the issuance of the guarantee and any payment on the DOC Notes; and (iii) the amendments to the Indentures. Pending acquisitions, dispositions, joint venture transactions, leasing activity, and financing activity, including those subject to binding agreements, remain subject to closing conditions and may not be completed within the anticipated timeframes or at all. Forward-looking statements reflect our current expectations and views about future events and are subject to risks and uncertainties that could significantly affect our future financial condition and results of operations. While forward-looking statements reflect our good faith belief and assumptions we believe to be reasonable based upon current information, we can give no assurance that our expectations or forecasts will be attained. Further, we cannot guarantee the accuracy of any such forward-looking statement contained in this release, and such forward-looking statements are subject to known and unknown risks and uncertainties that are difficult to predict. These risks and uncertainties include, but are not limited to: risks associated with the ability to consummate the proposed merger with Physicians Realty Trust (the "DOC Merger") and the timing of the closing of the proposed merger; satisfaction of closing conditions to consummate the DOC Merger; the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement relating to the proposed transactions with Physicians Realty Trust (the "DOC Transactions"); the ability to secure favorable interest rates on any borrowings incurred in connection with the DOC Transactions; the impact of indebtedness incurred in connection with the DOC Transactions; the ability to successfully integrate portfolios, business operations, including properties, tenants, property managers and employees; the ability to realize anticipated benefits and synergies of the DOC Transactions as rapidly or to the extent anticipated by financial analysts or investors; potential liability for a failure to meet regulatory or tax-related requirements, including the maintenance of REIT status; material changes in the dividend rates on securities or the ability to pay dividends on common stock or other securities; potential changes to tax legislation; changes in demand for developed properties; adverse changes in the financial condition of joint venture partner(s) or major tenants; risks associated with the acquisition, development, expansion, leasing and management of properties; risks associated with the geographic concentration of Healthpeak; risks associated with the industry concentration of tenants; the potential impact of announcement of the DOC Transactions or consummation of the DOC Transactions on business relationships, including with clients, tenants, property managers, customers, employees and competitors; risks related to diverting the attention of Healthpeak’s management from ongoing business operations; unfavorable outcomes of any legal proceedings that have been or may be instituted against Healthpeak; costs related to uninsured losses, condemnation, or environmental issues, including risks of natural disasters; the ability to retain key personnel; costs, fees, expenses and charges related to the DOC Transactions and the actual terms of the financings that may be obtained in connection with the DOC Transactions; changes in local, national and international financial markets, insurance rates and interest rates; general adverse economic and local real estate conditions; risks related to the market value of shares of Healthpeak common stock to be issued in the DOC Transactions; the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business; foreign currency exchange rates; increases in operating costs and real estate taxes; changes in dividend policy or ability to pay dividends for Healthpeak common stock; impairment charges; unanticipated changes in Healthpeak’s intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity; pandemics or other health crises, such as coronavirus (COVID-19); and those additional risks and factors described under "Risk Factors" in the Consent Solicitation Statement/Prospectus Supplement dated February 12, 2024, in Healthpeak’s Annual Report on Form 10-K for the year ended December 31, 2023 and as described from time to time in Healthpeak’s Securities and Exchange Commission filings. Except as required by law, we do not undertake, and hereby disclaim, any obligation to update any forward-looking statements, which speak only as of the date on which they are made.View source version on businesswire.com: https://www.businesswire.com/news/home/20240226700349/en/ContactsAndrew Johns, CFASenior Vice President – Investor Relations720-428-5400

Business Wire

Healthpeak Properties, Inc. and Healthpeak OP, LLC Complete Consent Solicitation and Offers to Guarantee and Receive Required Consents to Amend Physicians Realty L.P. Indentures

https://finance.yahoo.com/news/healthpeak-properties-inc-healthpeak-op-211500701.html

324e8e8d-c0f7-3e4b-aff6-a89bcaf60be3

PEAK

NEW YORK, Feb. 26, 2024 /PRNewswire/ -- American Homes 4 Rent (NYSE: AMH) will replace Physicians Realty Trust (NYSE: DOC) in the S&P MidCap 400 effective prior to the opening of trading on Friday, March 1. S&P 500 constituent Healthpeak Properties Inc. (NYSE: PEAK) is acquiring Physicians Realty Trust in a deal expected to be completed soon pending final conditions. Post-merger, Healthpeak Properties will have a symbol change from PEAK to DOC.Following is a summary of the changes that will take place prior to the open of trading on the effective date:Effective DateIndex Name       ActionCompany NameTickerGICS SectorMarch 1, 2024S&P MidCap 400AdditionAmerican Homes 4 RentAMHReal EstateS&P MidCap 400DeletionPhysicians Realty TrustDOCReal EstateFor more information about S&P Dow Jones Indices, please visit www.spdji.comABOUT S&P DOW JONES INDICESS&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spdji.com.FOR MORE INFORMATION:S&P Dow Jones [email protected] [email protected] original content:https://www.prnewswire.com/news-releases/american-homes-4-rent-set-to-join-sp-midcap-400-302071763.htmlSOURCE S&P Dow Jones Indices

PR Newswire

American Homes 4 Rent Set to Join S&P MidCap 400

https://finance.yahoo.com/news/american-homes-4-rent-set-230400339.html

7e5b130c-72c9-3a14-bc70-0966269d8f0f

PEG

Public Service Enterprise Group Inc (NYSE:PEG) demonstrates a robust regulatory framework and strategic clean energy investments.Despite divestitures, PEG faces challenges in adapting to evolving energy markets and regulatory environments.Opportunities in infrastructure and clean energy projects present potential growth avenues for PEG.Threats include severe weather events, cybersecurity risks, and competitive pressures in the energy sector.Warning! GuruFocus has detected 8 Warning Signs with PEG.Public Service Enterprise Group Inc (NYSE:PEG), a leading energy company, has recently filed its 10-K report on February 26, 2024. This SWOT analysis aims to provide investors with a comprehensive view of the company's internal and external factors that could impact its performance. PEG operates a regulated utility, PSE&G, serving 4.2 million customers in New Jersey and also manages the Long Island Power Authority system. Following the sale of its mid-Atlantic, New York, and Northeast gas and oil power plants in 2022, PEG's focus has shifted towards regulated utility services and clean energy projects. The company's financial health, as reflected in the financial statements, shows a solid foundation with a market capitalization of $31,072.4 million as of June 30, 2023, and a commitment to safety, integrity, and customer service as core aspects of its operations.Decoding Public Service Enterprise Group Inc (PEG): A Strategic SWOT InsightStrengthsRegulatory Framework and Investment in Infrastructure: PEG's strength lies in its well-established regulatory framework, which has enabled the company to secure favorable rates for its transmission and distribution services. The company's transmission revenues are not impacted by sales volumes, providing a stable revenue stream. PEG's investment in infrastructure, particularly in clean energy projects such as energy efficiency (EE), electric vehicle (EV) charging infrastructure, and renewable energy, positions it well for future growth. The company's current approved distribution base rates provide for a return on equity (ROE) of 9.6%, indicating a strong financial position.Story continuesStrategic Divestitures and Operational Efficiency: PEG's strategic divestiture of its fossil generation portfolio aligns with its long-term vision of focusing on regulated utility services and clean energy. This move not only streamlines operations but also reduces exposure to volatile commodity markets. The company's operational efficiency is further enhanced by its role as a transmission owner in PJM Interconnection, ensuring reliable service to a densely populated and industrialized region.WeaknessesDependence on Regulatory Approvals: PEG's performance is heavily reliant on regulatory approvals for rate cases and investment programs. Any adverse regulatory developments could impact the company's ability to recover costs and earn a reasonable return on its investments. The necessity to file rate cases, such as the one in December 2023, introduces uncertainty and could affect financial stability if outcomes are not favorable.Challenges in Workforce Management: While PEG has a strong commitment to human capital management, the company faces challenges in maintaining a skilled workforce in a rapidly evolving energy sector. Over 60% of the workforce is represented by unions, and while recent negotiations have been successful, there is always a risk of labor disputes that could disrupt operations.OpportunitiesGrowth in Clean Energy and Technology: PEG has the opportunity to capitalize on the growing demand for clean energy and technology advancements. Investments in EE, EV infrastructure, and renewable energy projects align with shifting consumer preferences and regulatory trends towards sustainability. The company's proactive approach in these areas could lead to increased market share and customer loyalty.Expansion of Services and Customer Base: With a modest increase in its customer base since 2019, PEG has the opportunity to expand its services and reach. The company's competitive services, such as appliance repair, offer additional revenue streams within its service territory. Furthermore, the transition to a more electrified economy presents new business opportunities for PEG.ThreatsSevere Weather Events and Climate Change: PEG is susceptible to severe weather events and the impacts of climate change, which could damage infrastructure and disrupt services. The cost of storm restoration efforts may not be fully recoverable, and the inability to restore power promptly could damage the company's reputation. Additionally, climate change poses transition risks, including potential legislative and regulatory burdens.Cybersecurity and Competitive Pressures: Cybersecurity attacks pose a significant threat to PEG's ability to provide safe and reliable service. The company must continuously invest in cybersecurity measures to mitigate this risk. Moreover, PEG faces competitive pressures from new market entrants and technological advances that could affect its market position and pricing.In conclusion, Public Service Enterprise Group Inc (NYSE:PEG) exhibits a strong regulatory framework and strategic focus on clean energy, which are key strengths. However, the company must navigate regulatory uncertainties and workforce challenges. Opportunities in clean energy and service expansion are promising, but threats from severe weather, cybersecurity risks, and competition loom. PEG's ability to leverage its strengths while effectively managing its weaknesses and threats will be crucial for its continued success in the dynamic energy market.This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.This article first appeared on GuruFocus.

GuruFocus.com

Decoding Public Service Enterprise Group Inc (PEG): A Strategic SWOT Insight

https://finance.yahoo.com/news/decoding-public-enterprise-group-inc-050317235.html

593abfec-409b-370a-afa3-7d4e83bfb71a

PEG

ParticipantsCarlotta N. Chan; VP of IR; Public Service Enterprise Group IncorporatedDaniel J. Cregg; Executive VP & CFO; Public Service Enterprise Group IncorporatedRalph A. LaRossa; Chair, President & CEO; Public Service Enterprise Group IncorporatedCarly S. Davenport; Business Analyst; Goldman Sachs Group, Inc., Research DivisionConstantine Lednev; Associate; Guggenheim Securities, LLC, Research DivisionDavid Keith Arcaro; Executive Director & Lead Analyst of Utilities; Morgan Stanley, Research DivisionDurgesh Chopra; MD and Head of Power & Utilities Research; Evercore ISI Institutional Equities, Research DivisionRyan Michael Levine; VP; Citigroup Inc., Research DivisionPresentationOperatorLadies and gentlemen, thank you for standing by. My name is Rob, and I am your event operator today. I'd like to welcome everyone to today's conference, Public Service Enterprise Group's Fourth Quarter and Full Year Results 2023 Earnings Conference Call and webcast. (Operator Instructions) As a reminder, this conference is being recorded today, February 26, 2024, and will be available for replay as an audio webcast on PSEG's Investor Relations website at https://investor.pseg.com. I would now like to turn the conference over to Carlotta Chan. Please go ahead.Carlotta N. ChanGood morning, and welcome to PSEG's Fourth Quarter and Full Year 2023 Earnings Presentation. On today's call are Ralph LaRossa, Chair President and CEO and Dan Cregg, Executive Vice President and CFO. The press release, attachments and slides for today's discussion are posted on our IR website at investor.pseg.com and our 10-K will be filed later today. PSEG's earnings release and other matters discussed during today's call contain forward-looking statements and estimates that are subject to various risks and uncertainties. We will also discuss non-GAAP operating earnings, which differs from net income as reported in accordance with generally accepted accounting principles or GAAP in the United States. We include reconciliations of our non-GAAP financial measures and a disclaimer regarding forward-looking statements on our IR website and in today's materials. Following the prepared remarks, we will conduct a 30-minute question-and-answer session. I will now turn the call over to Ralph LaRossa.Story continuesRalph A. LaRossaThank you, Carlotta. Good morning to everyone, and thanks for joining us to review PSEG's 2023 fourth quarter and full year results. For the fourth quarter of 2023, PSEG reported net income of $1.10 per share compared to net income of $1.58 per share in the fourth quarter of 2022. Non-GAAP operating earnings for the fourth quarter of 2023 were $0.54 per share compared to $0.64 per share in the fourth quarter of 2022. Our non-GAAP results, excluding the items shown in attachments 8 and 9, which we provided with the earnings release. For the full year of 2023, PSEG reported net income of $5.13 per share compared to $2.06 per share for the full year of 2022. Our non-GAAP operating earnings of $3.48 per share for the full year came in at the high end of our 2023 guidance range of $3.40 to $3.50 per share and marked the 19th consecutive year that we delivered results meeting or exceeding our guidance. Our fourth quarter 2023 financial results capped off a solid operating year. Building on this result, you can see on Slide 5 that we also reaffirm PSEG's full year 2024 non-GAAP operating earnings guidance of $3.60 to $3.70 per share as well as our 5% to 7% earnings CAGR through 2028, and our $18 billion to $21 billion regulated CapEx plan that supports our rate base CAGR of 6% to 7.5% through 2028. In rolling forward our 5-year capital plan to 2028, we added approximately $3 billion of investments to the prior plan that started from a year-end 2023 rate base of $29 billion. These are all unchanged from our January 2024 investor updates and we continue to identify potential investment opportunities for future rate base growth. Dan will discuss our financial results in greater detail following my remarks. So I will focus on a quick look back than on our outlook and objectives for 2024. Since our last earnings call, PSE&G has submitted 2 important filings to the New Jersey Board of Public Utilities. In early December 2023, we filed our $3.1 billion Energy Efficiency II investment program. This significantly expanded offerings driven by an increase in work to achieve the savings targets required under the BPU's updated energy efficiency framework. If approved, this program will launch the state's second energy efficiency cycle beginning in January of 2025 and run through June of 2027 with investments made over a 6-year period. Our EE II filing aligns with the annual reduction goals of 0.75% for gas and 2% for electric contained in New Jersey's Clean Energy Act of 2018, which are all unchanged and extends through the 2027 program year. In the interim, we continue to conduct our award-winning Energy Efficiency program, which remains oversubscribed. This last November, we filed for a second extension to this program totaling approximately $300 million covering the July through year-end 2024 period. As a direct result of these programs, PSE&G is also advancing its Clean Energy Jobs program with a focus on lower and middle-income community hiring and training. Our EE programs continue to create value by lowering customer bills, reducing energy use and emissions and providing shareholders over the return of and on the energy efficiency spending. New Jersey continues to be a national leader in promoting the broad adoption of EE, and it remains an important tool in helping us reach New Jersey's clean energy goals. The second regulatory filing we made in December was our first distribution base rate case in nearly 6 years. This case addresses 57% of our rate base, given that the other 43% is regulated under our first formula rate. You're aware that this filing was required pursuant to the settlement of our second gas system modernization program back in 2018. The filing proposes an overall revenue increase of 9% with the typical combined residential electric and gas customers seeing a proposed increase of 12% or less than 2% of compounded growth over the 6-year period. We expect the procedural schedule for this rate case to be issued in the near term. And based on previous rate case timelines, we anticipate that this rate case will conclude later in 2024. The largest item in the rate case is to obtain recovery of our capital expenditures, already made to modernize system infrastructure and improve reliability but not yet in rates as well as to implement recovery of expenditures for the previously approved AMI and electric vehicle programs. Besides capital recovery, the rate case proposes several mechanisms to mitigate the impact of market volatility on customer bills, including insulating customers from swing in interest rates, severe weather events and revenue-related impacts of pension, providing for a more predictable monthly bill. We are also proposing a new time of use rates that will allow customers to save on their bills by shifting usage to off-peak periods, a rate option that can benefit all customers, including incentivizing residential customers to charge their electric vehicles during these off-peak hours. The BPU has added several commissioners in the past year. Phil Murphy recently appointed Michael Bange, a retired water utility executive with operations experience. The new commissioners continue to advance a full agenda, and we already have several data points over the past 6 months that are consistent with prior results, including 2 recent rate case settlements that adopted the existing New Jersey's return on equity rate of 9.6%. These agreements between the BPU staff, Rate Counsel, other interveners and the utilities demonstrate a continued preference for settlements over adjudicated cases in New Jersey. In 2023, the BPU will also approve settlements to extend our GSMP II program for 2 years to invest $900 million on infrastructure monetization and greenhouse gas reduction as well as a 9-month extension for $280 million, covering our EEI program through June of 2024. If you followed us for several years, you know that we are also laser-focused on cost containment. In 2023, we were able to lock in 4-year labor agreements with all our New Jersey represented employees, which addresses one of our largest O&M costs. This is just one example of our relentless cost discipline, which has positioned our distribution rate case increases to be the lowest in the state over the 6 years since our last rate case filing back in 2018. A comparison of our in-state electric and gas distribution rate increases since our last rate case is shown on Slide 12. PSE&G's electric distribution CAGR was less than 1/3 of the average New Jersey electric CAGR and our gas distribution CAGR was less than half of the average New Jersey gas CAGR. PSE&G's customer bills continue to compare very well with regional peers for residential electric and gas service and remain lower from a historical share of wallet basis. Of considerable note was our ability to reduce monthly bills for typical net residential natural gas customers with 3 commodity reductions during 2023 prior to the 2024 heating season. In addition to this focus on affordability, we continue to provide outstanding reliability. For the 22nd consecutive year, PSE&G received a Reliability One award in the Mid-Atlantic metropolitan service area from PA Consulting, an industry benchmarking group. We are very proud, it combines our reputation for reliability and our regionally favorable affordability with nationally recognized customer satisfaction scores. PSE&G ranked #1 for the second consecutive year in the J.D. Power 2023 U.S. Electric Utility Residential Customer Satisfaction Study in the East among our large utilities. We also secured the top position in the J.D. Power 2023 U.S. electric utility business customer satisfaction study in that same region. Now let's turn to our capital investment programs. During the fourth quarter of 2023, PSE&G invested approximately $1 billion in energy infrastructure and clean energy, bringing the full capital spend to $3.7 billion, our largest ever single year expenditure. As I mentioned earlier, PSE&G finished 2023 with a total rate base of approximately $29 billion, which was a 10% increase over year-end 2022 rate base. A key driver of this growth is our energy efficiency program, which continues to experience higher demand for residential and C&I offerings, accounting for close to $480 million of the $3.7 billion. Our infrastructure advancement program, which is focused on modernizing the last mile of our system has never been more critical as activity in response to new service requests for EV make-ready and additional large specific projects including data centers picks up. We also installed and placed into service 1.5 million smart meters through our CEF Advanced Metering program or AMI. The total AMI program, which is intended to replace more than 2.3 million meters in total is expected to be completed this year, still on schedule and on budget. Now turning to our nuclear operations. The nuclear production tax credit provided in the 2022 Inflation Reduction Act began on January 1 of this year and extends through 2032 with a payment of up to $15 a megawatt hour based on nuclear units gross receipts. Our nuclear fleet operated 93% capacity factor for the full year of 2023, producing approximately 32 terawatt hours of carbon-free baseload energy, which included a Salem 1 breaker-to-breaker run between refuelings. In wrapping up, I want to note a few other highlights. For the 16th consecutive year, PSEG has been named to the Dow Jones Sustainability North America Index. And for 2024, PSEG will also be included in the S&P Global Sustainability Yearbook. U.S. News & World Report also recently named PSEG to its inaugural list of 200 best companies to work for. And in 2023, we were recognized by the CPA-Zicklin Index as a trendsetter for corporate political disclosure practices and accountability. We also completed the sale of our last fossil unit in Hawaii last year, making PSEG Power one of the few carbon-free baseload generating fleets in the country. This fleet is well situated to benefit from potential data center growth, hydrogen hubs and a license extension with none of the potential upside in our current 5-year plan. PSE&G continues to execute on a robust set of growth investments aligned with New Jersey's energy policy goals as well as expected growth from increased electrification, including EV adoption, port electrification as well as new business, including data center loads. These last 2 mentions were recently recognized by PJM in their January 2024 load forecast report for our PS zone. We are very pleased with the progress made thus far to increase the predictability of PSEG. An important part of achieving this comes from our ability to execute on our current 5-year capital investment plan without the need to issue new equity or sell assets. PSEG has delivered on what we said we would do, and I look forward with confidence in this team's ability to continue to execute on our business plan in the years ahead. I'd like to close my remarks by thanking all 12,500 plus PSEG employees for their dedication and safety, reliability and our customers. I'll now turn the call over to Dan to discuss our financial results and outlook in greater detail and I'll be available for your questions after his remarks.Daniel J. CreggThank you, Ralph, and good morning, everyone. As Ralph mentioned earlier, PSEG reported net income of $5.13 per share for the full year of '23 compared to net income of $2.06 per share for 2022. Non-GAAP operating earnings for the full year of 2023 were $3.48 per share compared to $3.47 per share for 2022. For the fourth quarter of 2023, net income was $1.10 per share compared to $1.58 per share in 2022, and non-GAAP operating earnings were $0.54 per share for the fourth quarter of 2023, compared to $0.64 per share in 2022. We've provided you with information on Slide 7 and 9 regarding the contribution to non-GAAP operating earnings per share by business segment for the fourth quarter and full year of 2023. Slides 8 and 10 contain waterfall charts that take you through the net changes, the quarter-over-quarter and full year periods and non-GAAP operating earnings per share by major business. Starting with PSE&G, we reported fourth quarter 2023 net income of $0.58 per share compared to $0.70 per share in 2022. PSE&G had non-GAAP operating earnings of $0.59 per share for the fourth quarter of 2023 compared to $0.70 per share in 2022. The main drivers for both net income and non-GAAP operating earnings results for the quarter were growth in investments in transmission and gas distribution. These favorable items were offset by the expected decline in pension income and lower OPEB-related credits as well as anticipated higher depreciation, amortization and interest expense resulting from higher investments not yet reflected in rates and the timing of O&M in the quarter that was within our expectations for the full year. Compared to fourth quarter 2022, margin was $0.03 higher, driven by transmission at $0.01 per share, and gas margin also at $0.01 per share higher, primarily driven by the clause recovery of our GSMP investment. Other utility margin was also $0.01 per share favorable. Distribution O&M expense increased $0.05 per share compared to the fourth quarter of 2022, reflecting seasonality and operational timing. But for the full year, distribution O&M was flat versus 2022. Depreciation and interest expense each increased $0.02 per share compared to the fourth quarter of 2022, reflecting continued growth in investment, lower pension income resulting from 2022's investment returns, combined with lower OPEB credits, which ended in 2023, resulting in a $0.04 per share unfavorable comparison to the year earlier quarter. Lastly, the timing of taxes recorded through an effective tax rate, which nets to 0 across the full year and other flow-through taxes had a net unfavorable impact of $0.01 per share in the quarter compared to 2022. Weather during the fourth quarter, as measured by heating degree days, was 15% warmer than normal and 13% warmer than the fourth quarter of last year. As we've mentioned, the Conservation Incentive Program, or CIP mechanism, limits the impact of weather and other sales variances positive or negative on electric and gas margins while helping PSE&G broadly promote the adoption of its energy efficiency programs. Growth in the number of electric and gas customers, the driver for margin under the CIP mechanism has remained positive with each up by about 1% in 2023. On capital spending, as Ralph mentioned, PSE&G invested approximately $1 billion during the fourth quarter and completed its largest single year investment program at $3.7 billion for the full year. The program included upgrades and replacements to our T&D facilities, Energy Strong II investments, last mile spend in the infrastructure advancement program, ongoing gas infrastructure replacements via base and GSMP II spending, continued rollout of the clean energy investments in energy efficiency, smart meter installation and EV make-ready infrastructure. We recently rolled forward our 5-year regulated capital investment plan to 2028, amounting to $18 billion to $21 billion, which incorporates both the new $3.1 billion CEF-EE II filing as well as the $300 million expansion of the existing EE program through the end of 2024. For 2024, our regulated capital investment plan totals approximately $3.4 billion. Moving on to PSEG Power & Other. For the fourth quarter of 2023, PSEG Power & Other reported net income of $0.52 per share compared to net income of $0.88 per share for 2022. Non-GAAP operating loss was $0.05 per share for the fourth quarter of 2023 compared to a non-GAAP operating loss of $0.06 per share for 2022. For the fourth quarter of 2023, net energy margin rose by $0.05 per share after including lower capacity revenues that were $0.03 per share unfavorable and gas offset were lower by $0.01 per share compared to the year earlier quarter. O&M comparisons in the fourth quarter improved by $0.01 per share, driven by the absence of a Hope Creek refueling outage. Lower interest expense was $0.01 per share favorable, primarily the result of lower collateral requirements. Lower pension income from '22 investment returns and OPEB credits from the lower amortization benefit were $0.03 per share unfavorable versus fourth quarter of 2022. And taxes and other were $0.03 per share unfavorable compared to the fourth quarter of 2022, reflecting a partial reversal of the effective tax rate benefit from the first quarter of 2023. On the operating side, the nuclear fleet produced approximately 7.3 terawatt hours during the fourth quarter and 32 terawatt hours for the full year of 2023, running at a capacity factor of 86% and 93% for the quarter and full year respectively. At year-end 2023, PSEG Power had hedged approximately 90% to 95% of its expected generation for 2024 at an average price of $38 per megawatt hour, up from $31 per megawatt hour in 2023. Touching on some recent financing activity. As of December 31, PSEG had total available liquidity of $3.4 billion, including $54 million of cash on hand. PSEG Power had net cash collateral postings of approximately $113 million at December 31, more consistent with historical experience and substantially below the elevated levels seen during 2022. This reduction in collateral also helped to bolster PSEG's cash from operations to $3.8 billion for the full year 2023 versus $1.5 billion for the full year of 2022. At year-end 2023, PSEG had $500 million outstanding of a 364-day variable rate term loan maturing in April 2024 and PSEG Power had $1.25 billion outstanding of a variable rate term loan maturing in March of 2025. We've swapped a total of $1.4 billion from these 2 term loans at PSEG Power and PSEG from a variable to a fixed rate to mitigate variability in interest rates. As of December 31, reflecting our swaps, approximately 4% of our total debt was at a variable rate, which is down nearly 8% since year-end 2022, driven by a reduction in parent short-term debt of nearly $1.7 billion. We continue to maintain solid investment-grade ratings. Looking ahead, we expect that PSE&G's considerable cash generation combined with PSEG Power's enhanced cash flow visibility from the nuclear PTC will support the execution of PSEG's 5-year capital spending plan, which is dominated by regulated CapEx without the need to issue new equity or sell assets. In closing, we executed on our 19th year in a row of meeting or exceeding our non-GAAP operating earnings guidance. We are reaffirming PSEG's full year 2024 non-GAAP operating earnings guidance of $3.60 to $3.70 per share, and we are reaffirming the extension of our 5% to 7% operating earnings compounded annual growth rate through 2028. That concludes our formal remarks and we are now ready to begin the question-and-answer session.Question and Answer SessionOperator(Operator Instructions) The first question is from Shahriar Pourreza with Guggenheim Partners.Constantine LednevIt's actually Constantine here on for Shahriar. Congrats on a great quarter. Starting off on the power side of the business, do you see any further upside to earnings contribution from nuclear going beyond the sale of operates and refueling cycle adjustments like Hope Creek in '25 and maybe any pushes and takes as these could be accretive versus the utility growth on a consolidated basis?Ralph A. LaRossaConstantine, I think we've been mentioning for quite some time that we've got -- we potentially have some upsides down from PPAs or something similar to that. But we're going to look at what the state -- how the state moves from an economic development standpoint and then make some decisions from there. And let me give you a very specific kind of thought process. We've done a lot of work down and around the plan in anticipation of the wind port. And so that work progressed and the state has been very happy with it. They've got some manufacturers that are either in the process of moving into that area or still considering it. But if they don't use all of that area, maybe we could look at an electrolyzer set up that could be down in that vicinity that could provide us with an opportunity. Maybe there could be a data center down in that area. But all of those things really are driven by the growth that the state is looking to do from an economic development standpoint, and as we have done for many years here aligns with the policy of the state and that's going to enable us to continue to excel. So I think there is some upside. None of that is in our plan. None of it has been in our plan, and we're just going to keep our options open.Constantine LednevOkay. And any particular time frame that you're looking at or now ongoing?Ralph A. LaRossaNo. No. I think once we get a couple of years out here, we'll be able to see how is the ZECs are still in place through '25 and as all the companies are talking about ad nauseam, the PTC rules need to come out. And once all of that comes together, we'll be able to look at a plan to optimize the revenues from those plants.Constantine LednevOkay. Perfect. And maybe shifting to PSE&G for a little bit. Do you have any thoughts around any lessons learned around recent rate proceedings in the state? And just how are you thinking in terms of update filings through the process and maybe the activity around settlement negotiations like any deal breakers or settlement like ROE or anything else?Ralph A. LaRossaYes. Constantine, I think the biggest lesson learned is that New Jersey has its act together. I really think that the state -- if you look at what has happened recently with JCP&L and Atlantic City Electric, really good outcomes. And I wouldn't say everybody is always -- people are always looking for a little more here or there. But the process and the methodology that's been used has been consistent within the past. There hasn't been any real deviations and we don't expect there to be anything different with our case. Going in with a case that's not as big as some others have gone in with. And as we mentioned in the prepared remarks, if you look at Page 12 in the deck, we've done really well by our customers over a time period that has seen a lot of inflation. We're really not anticipating this to be a very contentious case.OperatorThe next question is from the line of David Arcaro with Morgan Stanley.David Keith ArcaroRalph, I think in the past, you've thought that there could be some upside to the PJM load growth outlook in New Jersey, and we've obviously seen some of that get reflected in the latest load forecast. We've also seen some state initiatives pushing for AI and data centers. So I guess what are you seeing on the ground in terms of data center activity, any upside to latest load growth expectations?Ralph A. LaRossaYes. So a couple of pieces there, David. First of all, on the state level, we were very happy to see that PJM listened to our recommendations and most importantly, to the state's policy. And so they've reflected both of those things in their latest forecast. That being said, PJM is a lot bigger than the state of New Jersey. And so we're hoping that PJM takes a look across its entire footprint and make sure that the same methodologies are being used and a consistent methodology in all the states. States have different policies. So they may have different outcomes, electric vehicles being a great example. But how that -- how any of those loads are being looked at should be consistent, in our opinion, across the entire footprint of PJM. And then specifically in our backyard, we are starting to see some data centers pop up here. I'd say -- so far, what we've seen is somewhere in the neighborhood of 50 to 100 megawatts, but those conversations are just starting. Again, if you think about what the state has been pushing from an economic development standpoint, there's a lot of AI activities. The governor is trying to entice some companies to move into the area. Once that happens, there might be some more opportunities for us. And our system is really well positioned. We've talked for years about the build that we did on the transmission side and the self transmission upgrades that we've been doing. It's driving some less mile investments for us, but that's also, again, consistent with what we've talked about with you all in the past.Daniel J. CreggYes. And David, just a reminder, we do have the Conservation Incentive Program that's in place. And so what this matters more from our perspective, it's less about the particular road growth and the volumes that we would sell. It's much more about the infrastructure needs to have these folks be able to set up shop here in New Jersey.Ralph A. LaRossaYes. And the only -- think about it this way, too, David, is if Dan is putting in a data center, he's going to use 100 megawatts, that's 100 megawatts more to spread the costs over for all the customers. So it also creates more headroom for our residential customers. So all bits of it come together in a positive way.David Keith ArcaroYes, that's helpful. Got it. And am I hearing you correctly that I'm wondering about the potential T&D CapEx opportunity that could stem from this so far. Are you thinking it's kind of within the programs that you're -- that you're growing already. wondering if there's potential incremental upside if this becomes a bigger driver?Ralph A. LaRossaYes, we would certainly signal that to you if we did. But I think what Dan and Carlotta and I've been saying wherever we've been going has been, right now, we've got our last mile investments that we need to make. And then if you look at our CapEx bar charts, we have a few -- a little bit of upside that's built into the high and the low, but there's nothing that I would say is incrementally driving us above those charts that we've provided in the past.David Keith ArcaroYes. Okay. Got it. Then I was just wondering, as we think about affordability in the state, I was wondering if you could run through just the elements of rate headroom that you see looking forward, things that fall off of the rate plan, I'm thinking storms, ZECs, et cetera, just to put the rate case increase into perspective.Ralph A. LaRossaYes, David, I'm going to let Dan walk you through that, but -- because there's a lot of puts and takes that we've been taking people through, but start with Page 12 and take it from there.Daniel J. CreggRalph tees it up exactly right. I think, rates -- I tend to not think about it as headroom as available dollars. I just try to think about it as maintaining an affordable bill for the for the state of New Jersey. And if you take a look at Page 12, it shows that we have done a very good job of doing exactly that over the last 5 years. And this is on a relative scale, but I think we've been able to manage the system very well at an affordable rate. And also with the reliability that Ralph talked about in his prepared remarks and also the customers sat studies talked about within those remarks. You do mention something that I think is important as well. If we take a look at the ZECs that will roll off in May of 2025, you'll see a couple of hundred million dollars that will come off of PSEG customers and closer to $300 million across the state. So that is I think, a benefit from an affordability perspective to the extent that there's capital that's needed for the reliability of the system and some of the energy transition that can help in that regard. But we don't really think about it as headroom, we think about just trying to maintain as affordable bills we can while we're still providing quality service to customers.OperatorOur next question comes from the line of Durgesh Chopra with Evercore ISI.Durgesh ChopraJust on the $3.1 billion energy efficiency filing, maybe can you just clarify, is that the spending, is that over a 6-year period? Or is that from '25 to '27, that's part one. And then part two, when should we expect a decision from the commission on that?Ralph A. LaRossaYes. So great questions, Durgesh. And it can be a little confusing because they do talk about the period as a triennial period. And so that '25 to '27, it's actually 2.5 years, which is the reason for some of the extensions that you've seen that we remarked upon earlier in our prepared remarks. Think about that 3-year period as being the period during which you're going to get the commitments to actually have the work get done. But we have described for folks, and it's important given the magnitude of the numbers, that it's understood that the actual spending to satisfy those commitments is going to be done closer to a 5- to 6-year period. So I think that's how to think about it. It is described as a triennial period. but that's more about getting the commitments. The spend will be over a little bit longer period. And the schedule that's in place right now is for us to move forward. We made that filing, if you recall, December 1. We did that at the same time as all the utilities in the state. And you should see in the third quarter to fourth quarter. I think it's October of this year coming up is the estimated date for us to get an outcome there.Durgesh ChopraGot it. And that process is separate and independent from the rate case, right? Just to be clear.Ralph A. LaRossaYes, that is correct. That is correct.Durgesh ChopraOkay. Perfect. And then can I just quickly follow up, Dan, just later thoughts and your discussions on the nuclear PTC and where do we stand on getting guidance in terms of timeline and what to expect there?Daniel J. CreggYes, we're still in a waiting game, I guess. I wish I had a different answer for you. Treasury, as we have spoken to them last, which is just a couple of months ago, we made them aware as we do every time that we can that it's important for them to try to get the rules out sooner rather than later. But as we sit here today, they have not issued a date by which that they will provide that guidance. So we are just awaiting their answer. I don't have anything more specific. I wish I did.OperatorOur next question comes from the line of Carly Davenport with Goldman Sachs.Carly S. DavenportMaybe just to quickly follow up under Durgesh's question there. As we think about the interim before we get the PTC guidance, how should we think about the hedge program in the meantime? Should we expect to see any potential incremental '24 hedges or starting to layer in '25 hedges between now and then?Daniel J. CreggYes. Carly, so we've provided some data with respect to where 2024 is. And we do have some hedges out for '25, obviously, at this juncture. I mean, it is a little bit more challenging when you don't know exactly how they're going to come out with that definition of gross receipts. And so what we've tried to do internally is just take a look at what some of the potential most logical outcomes could be and try to triangulate off of that to try to basically do exactly what we've always done is try to minimize the overall risk inherent with that business. And so if under different scenarios, you could see a moderation of risk by moderating our hedges a little bit, that's basically what we're going to try to do. Again, the objective of being identical to where it has been in the past to minimize the overall risk. And if there's a little bit of a different hedge position we might want to put on to do that, that's what we would end up doing.Carly S. DavenportGot it. Okay. That's really helpful. And then maybe just as you think about managing O&M, can you just talk about some of the moving pieces we should be keeping in mind for 2024. I know that there might be some upward pressure from some of the nuclear outages that you have, but anything that you'd flag on O&M for '24?Ralph A. LaRossaYes. No, there's nothing really. Just a reminder, though, for everyone, we really have that great outcome that we had with our union negotiations where we have labor certainty starting last May, and continuing where we had -- we negotiated a 4-year deal with our unions at 4% increase than 3%, 3% and 3% in the subsequent years. So there's no surprises that we see on the horizon from that aspect and there's a lot of talk certainly about fuel prices on the nuclear side, which we can give you some more about if you're interested. But it's such a small percentage of the overall O&M that we have that it's really -- it doesn't become a material conversation for us at this point. So we don't really see anything that's coming at us, there's always storms and its other activities, but nothing that we specifically are concerned about.Daniel J. CreggAnd even just to follow on Ralph's comments for '24 of the nuclear fuel comment, most of what we will incur for 2024 is what's in the reactor already. And so as we do step through time, you've seen some increment in those markets. But for 2024, you shouldn't expect anything very different.OperatorOur next question is from the line of Ryan Levine with Citi.Ryan Michael LevineOne follow-up on nuclear. Should we expect that there is a plan in place on what you would do once you get the treasury regulation around tax policy that you could roll out shortly thereafter or is there a more delayed timeline in terms of response that we should look for?Ralph A. LaRossaYes. Ryan, I can't say enough about Dan and his team as far as how much they've done as far as looking at a bunch of different options right now. So I think we're very well positioned to act when we need to act and they've been very thoughtful about that. But I'll give it to Dan to give you any more specifics.Daniel J. CreggYes. I mean, I think, Ralph said it, we've done a lot of work trying to understand where this could come out. I guess I would say the treasury has given us the time to do that work by not having some guidance out as early as we might have liked. So -- in those situations, what you do is you try to think about where they may come out with guidance and to prepare yourself to be ready for any of those outcomes. And so that's what we've been doing. To your -- the other part of your question, yes, we would let you know what our response will be after it does come out, we're able to thoroughly read through everything and make sure that we understand all the nuances that may or may not be in what comes out. I hope when it does come out, it will be a one and done, instead of guidance that will have incremental guidance to follow, it would be great if it was if it comes out in full form, but we will definitely share how we're approaching things once we know what the final rules are.Ryan Michael LevineGreat. And unrelated, I think you were touching on time of use rates as being important for the data center potential opportunity in New Jersey. Is that -- am I hearing that right? And is there any rate design mechanisms that are being discussed to maybe further attract that industry development in the state?Daniel J. CreggYes. So maybe a little bit less from a data center perspective, but certainly from a broader perspective, if you think about EVs, one of the things that we did touch on was that time of use rates is a topic that we would anticipate that we'd work through within this rate case. And I think in Ralph's prepared remarks, he talked about that being helpful to those that ultimately have EVs and could encourage some incremental adoption there. But that's more where you would find it in the rate case and less about data centers, more about electrification and EV.Ralph A. LaRossaWe're just really well positioned, Ryan, between the CIP that we've had in place for some time and where we are from a rate structure standpoint that Dan's comments are dead on.Operator(Operator Instructions) There are no further questions at this time. And I would like to turn the floor back to Mr. LaRossa for closing comments.Ralph A. LaRossaGreat. Thanks. .Listen, this -- I think the fact that we've got -- we only have 5 questions on this call, folks asking questions that at the end of the day, it was another uneventful call for us. And that is just really what we're hoping to put in place is we've worked really hard as a team to close out our first full year together. 2023 was a year of execution that came across from a number of different areas in our company. But it's all built on the base of a utility that's really uniquely positioned. It's got -- it's in -- it's provided affordable service for its customers, it's provided reliable service for its customers and it's continued to deliver high-quality service based upon the results of all the polling that we do with our customers and J.D. Power just being one of those examples. And then you combine that with a nuclear fleet now has continued to be more predictable, not only because of what we're seeing from the revenue side and the PTCs, but from an operating standpoint, you see in our deck, we went from 92% capacity factored and 93% capacity factor this year, and we'll continue to improve on that. That's our expectation. We want to continue to provide that great revenues from those plants that's going to provide us with the opportunity to continue to not issue equity, and not sell any assets and continue the growth that we've had on the utility side. So we thank you for all the support that you've given us over 2023, and you can expect from us the same consistent and uneventful progress that we've made throughout this past year. So thanks, and have a great day.OperatorLadies and gentlemen, this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Thomson Reuters StreetEvents

Q4 2023 Public Service Enterprise Group Inc Earnings Call

https://finance.yahoo.com/news/q4-2023-public-enterprise-group-060041030.html

f6753e2f-747a-3b1b-ad27-da6dde5c4907

PEG

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Public Service Enterprise Group Incorporated (NYSE:PEG) is about to go ex-dividend in just 3 days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Therefore, if you purchase Public Service Enterprise Group's shares on or after the 7th of March, you won't be eligible to receive the dividend, when it is paid on the 29th of March.The company's next dividend payment will be US$0.60 per share, on the back of last year when the company paid a total of US$2.28 to shareholders. Looking at the last 12 months of distributions, Public Service Enterprise Group has a trailing yield of approximately 3.9% on its current stock price of US$62.24. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether Public Service Enterprise Group can afford its dividend, and if the dividend could grow. View our latest analysis for Public Service Enterprise Group Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Fortunately Public Service Enterprise Group's payout ratio is modest, at just 44% of profit. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. It paid out an unsustainably high 236% of its free cash flow as dividends over the past 12 months, which is worrying. Our definition of free cash flow excludes cash generated from asset sales, so since Public Service Enterprise Group is paying out such a high percentage of its cash flow, it might be worth seeing if it sold assets or had similar events that might have led to such a high dividend payment.Story continuesWhile Public Service Enterprise Group's dividends were covered by the company's reported profits, cash is somewhat more important, so it's not great to see that the company didn't generate enough cash to pay its dividend. Were this to happen repeatedly, this would be a risk to Public Service Enterprise Group's ability to maintain its dividend.Click here to see the company's payout ratio, plus analyst estimates of its future dividends.historic-dividendHave Earnings And Dividends Been Growing?Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Fortunately for readers, Public Service Enterprise Group's earnings per share have been growing at 12% a year for the past five years. Earnings have been growing at a decent rate, but we're concerned dividend payments consumed most of the company's cash flow over the past year.Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, 10 years ago, Public Service Enterprise Group has lifted its dividend by approximately 5.2% a year on average. It's good to see both earnings and the dividend have improved - although the former has been rising much quicker than the latter, possibly due to the company reinvesting more of its profits in growth.To Sum It UpIs Public Service Enterprise Group an attractive dividend stock, or better left on the shelf? We're glad to see the company has been improving its earnings per share while also paying out a low percentage of income. However, it's not great to see it paying out what we see as an uncomfortably high percentage of its cash flow. Overall, it's hard to get excited about Public Service Enterprise Group from a dividend perspective.In light of that, while Public Service Enterprise Group has an appealing dividend, it's worth knowing the risks involved with this stock. For instance, we've identified 3 warning signs for Public Service Enterprise Group (2 shouldn't be ignored) you should be aware of.If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Public Service Enterprise Group Incorporated (NYSE:PEG) Pays A US$0.60 Dividend In Just Three Days

https://finance.yahoo.com/news/public-enterprise-group-incorporated-nyse-124603621.html

4a68b572-8a6a-36ec-a71f-975b347eb8ff

PEG

Investors interested in Utility - Electric Power stocks are likely familiar with Avangrid (AGR) and PSEG (PEG). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.Avangrid and PSEG are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AGR is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.AGR currently has a forward P/E ratio of 15.95, while PEG has a forward P/E of 17.50. We also note that AGR has a PEG ratio of 0.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PEG currently has a PEG ratio of 3.54.Another notable valuation metric for AGR is its P/B ratio of 0.67. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PEG has a P/B of 2.07.Story continuesThese are just a few of the metrics contributing to AGR's Value grade of B and PEG's Value grade of C.AGR sticks out from PEG in both our Zacks Rank and Style Scores models, so value investors will likely feel that AGR is the better option right now.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAvangrid, Inc. (AGR) : Free Stock Analysis ReportPublic Service Enterprise Group Incorporated (PEG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

AGR vs. PEG: Which Stock Is the Better Value Option?

https://finance.yahoo.com/news/agr-vs-peg-stock-better-154009137.html

b950cd96-995d-3df6-a005-77696467d56a

PEP

As PepsiCo deepens its global presence in snacking, a major part of that strategy is centered around thinking locally.The food and beverage giant, with $91 billion in global sales during 2023, is spending millions of dollars annually to better understand local food cultures so it can more effectively tailor Cheetos, Lay’s, Doritos, Quaker and its roughly 20 other global snacking brands to consumers in specific areas. PepsiCo’s products are available in more than 200 countries and territories around the world.“Immersing ourselves in local food culture is absolutely critical to our food business. It’s one of the biggest priorities,” Mustafa Shamseldin, PepsiCo’s category growth officer and chief marketing officer for international foods, said in an interview. “We want to double down further.”In the company's biggest regions, convenient foods are often responsible for more sales than PepsiCo’s beverages, according to a regulatory filing. In Latin America, these items make up 90% of sales; Africa, Middle East and South Asia, 70%; and Europe, 50%.Brittany Quatrochi, an analyst at Edward Jones, said PepsiCo has done a good job understanding the nuances of consumers in different areas in which they operate — a process that not all companies have been able to successfully master. With emerging countries tending to grow faster than already established ones, a deeper presence can be lucrative for PepsiCo whose Frito-Lay division gets about 40% of its sales outside North America, she said.PepsiCo’s Frito-Lay has ”done a good job with [localizing a brand] and they'll continue to do more of that over time,” Quatrochi said. “International is definitely a big piece of the growth story.”PepsiCo’s move to take a brand and give it local flavor is a strategy other snacking companies also have capitalized on.Kellanova, for example, said while sales for its Pringles chip brand are typically anchored around flavors like its original salted and sour cream and onion, its ancillary flavors tend to differ by region and by market.Story continuesPringles, which is available in more than 50 countries, has developed a ketchup flavor in Canada and recently co-created Tangy Tomato Twist in India with a local celebrity chef.The snack offering already has more than $3 billion in net sales, but David Lawlor, president of Kellanova Europe, told analysts last week that the brand is still in its “early innings” of growth, particularly as it expands its reach in emerging markets.In some regions such as Latin America and Asia, the increased demand for Pringles is outpacing supply. Kellanova recently started construction on new plans to help meet consumer interest.“This ability to adapt to local taste is one of the things that makes the brand so much fun and makes future penetration so attractive and so doable,” Lawlor said.While a product like a chip is popular globally, there are changes companies make to the flavor, texture and even size of the offering that helps it resonate with consumers and give it a more localized appeal.PepsiCo’s Lays, the best-selling snack brand in the world, according to the company, is available in dozens of flavors, including Falafel with pickled lemon in Egypt, cucumber and seaweed options in China, cheese and onion in the U.K. and Sabritas Adobadas (savory spices like red pepper and paprika with a slight tang of tomato and lime) in Mexico.Lays has made similar tweaks to its Magic Masala flavoring in Asia. In India. Magic Masala contains dried mango powder, while in Pakistan the product lists tomato powder. The cheese flavor for Lays can be lighter in certain regions, favor a white instead of yellow cheese in others, or have a slight tanginess in some places. Shamseldin estimated PepsiCo has created dozens of different cheese flavors for Lays, only a small fraction of which are being used today. He added that more than any other brand in PepsiCo’s snacking portfolio, flavor is “absolutely critical” for Lays to succeed in a certain location. PepsiCo’s popular Flamin’ Hot flavor, which is incorporated into several brands such as Doritos, Cheetos, Lays and Ruffles, also can have its spiciness level varied to the point where it could be viewed as really hot in one place and sweet and savory in another.“The idea of having a very spicy flavor was so powerful that we took it and wrote that across the world,” Shamseldin recalled.For some brands in PepsiCo’s snacking portfolio, the company turns to other attributes to resonate with local shoppers. In Doritos, PepsiCo can adjust the pressure needed to bite into the chip, while in Cheetos it may alter the size of each corn puff.To help it develop recipes tailored to area food cultures and local flavors, PepsiCo has culinary teams situated in kitchens around the globe. They are responsible for assessing food trends in local regions, including how consumers eat, textures they crave, their emotional connection to food and what is being served at restaurants — all things that could hint at a bigger trend about to break through.PepsiCo also works closely with its insights team to gather trends and observations of food culture across several markets.“We are investing in getting closer to the culinary hubs across the world and building capabilities locally to be closer to these markets and to be able to innovate and create content and engage with content at the local level,” Shamseldin said.This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter.

Food Dive

How PepsiCo, Kellanova adapt their snacks to local tastes around the world

https://finance.yahoo.com/news/popular-us-snacking-brands-place-101900142.html

077a241d-f219-3b48-95a4-9bf2291c76f5

PEP

(Bloomberg) -- A potential tax benefit is spurring US companies including PepsiCo Inc. and International Business Machines Corp. to sell bonds through their Singapore subsidiaries, fueling a record surge of sales from borrowers in the city state.Most Read from BloombergBYD’s New $233,450 EV Supercar to Rival Ferrari, LamborghiniA Spike in Heart Disease Deaths Since Covid Is Puzzling ScientistsFreddie Mercury’s London Residence Lists at £30 MillionJacob Rothschild, Financier and Philanthropist, Dies at 87Stock Rally Stalls at Start of Data-Packed Week: Markets WrapThe tactic can allow companies to deduct interest expense from their taxable income in both the US and Singapore. That double deduction means that effective borrowing costs — after taxes — can be materially lower than they would be with a bond issued in the US.The mechanics of qualifying for the benefit are complicated and a rule that emerged from the Organisation for Economic Cooperation and Development in December may wind up stopping firms from using the technique. But companies may be able to take advantage of it for at least the next three years.As companies sell bonds, they are pushing debt sales volume from Singapore ever higher. Last year, corporates sold $51.5 billion of notes from the city state, more than double the previous year and an all-time record. That mainly came from Pfizer Inc.’s sale of $31 billion of bonds, one of the biggest corporate bond offerings on record, in May 2023 through a Singapore unit to help finance an acquisition.The sales have continued this year: PepsiCo Singapore Financing sold $1.75 billion of bonds earlier this month, and IBM International Capital sold $5.5 billion of securities in late January.A spokesperson for IBM declined to comment. PepsiCo and Pfizer did not respond to requests for comment.New global tax rates are taking shape through the OECD to ensure minimum tax corporate rates are levied globally. Singapore domestic tax law allows a company, including a local subsidiary of a foreign corporation, to deduct interest payments on debt from their taxable income in the nation state. At the same time, the US tax code might allow companies to deduct a foreign branch’s interest expense from its US taxable income.Story continues--With assistance from Finbarr Flynn.Most Read from Bloomberg BusinessweekElon Musk’s Vegas Tunnel Project Has Been Racking Up Safety ViolationsThe High Cost of Eating Out in AmericaTranscript: Did Musk Buy Twitter to Keep His Movements Secret?Why Elon Musk Bought Twitter in the First PlaceCan the Masters of Hipster Cringe Conquer Hollywood With Wall Street Cash?©2024 Bloomberg L.P.

Bloomberg

Pepsi, IBM Sell Bonds Through Singapore to Reap Tax Benefit

https://finance.yahoo.com/news/pepsi-ibm-sell-bonds-singapore-003000776.html

4ba34e1a-a7aa-3afc-86c9-5da5aab375cc

PEP

PURCHASE, N.Y., March 11, 2024 /PRNewswire/ -- PepsiCo, Inc. (NASDAQ: PEP) today announced that it will issue its first-quarter 2024 (ending March 23) financial results and other related information on Tuesday, April 23, 2024 by posting the following materials and links on the company's website at www.pepsico.com/investors.PepsiCo (PRNewsfoto/PepsiCo, Inc.)Press release and 10-Q at approximately 6:00 a.m. EDTPrepared management remarks (in PDF format) at approximately 6:30 a.m. EDTLive question and answer session for analysts with Ramon Laguarta, Chairman and Chief Executive Officer, and Jamie Caulfield, EVP and Chief Financial Officer at 8:15 a.m. EDTAbout PepsiCo PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $91 billion in net revenue in 2023, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that puts sustainability and human capital at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. For more information, visit www.pepsico.com, and follow on X (Twitter), Instagram, Facebook, and LinkedIn @PepsiCo.Contacts:[email protected] [email protected] CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/pepsico-announces-timing-and-availability-of-first-quarter-2024-financial-results-302084790.htmlSOURCE PepsiCo, Inc.

PR Newswire

PepsiCo Announces Timing and Availability of First-Quarter 2024 Financial Results

https://finance.yahoo.com/news/pepsico-announces-timing-availability-first-120000957.html

20a2fd64-cce3-3cdc-9ba4-bc46c1bfda90

PEP

Monday, March 10, 2024The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Exxon Mobil Corporation (XOM), PepsiCo, Inc. (PEP) and HSBC Holdings plc (HSBC). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.You can see all of today’s research reports here >>>Exxon Mobil shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+5.4% vs. +4.9%). The company being a reliable player in the energy sector, boasts a resilient integrated capital structure and a track record of prudent CAPEX management. Its strategic discoveries in the Stabroek Block and Permian Basin promise growth and lower greenhouse gas intensity.With a robust balance sheet, ExxonMobil prioritizes shareholder returns, evidenced by substantial buybacks and a strategic acquisition of Pioneer Natural Resources. XOM reported better-than-expected quarterly earnings due to increased liquids production.However, challenges loom, notably in upstream operations susceptible to volatile oil prices and regulatory hurdles like the $2B impairment in California. While committed to shareholders, XOM faces scrutiny for lagging industry peers in dividend yield and enduring financial strain from low-return investments and pandemic impacts.(You can read the full research report on Exxon Mobil here >>>)Shares of PepsiCo have underperformed the Zacks Beverages - Soft drinks industry over the past year (-2.1% vs. +7.4%). The company banks on strength and resilience in its categories, diversified portfolio, modernized supply chain, improved digital capabilities, flexible go-to-market distribution systems and robust consumer demand trends.These factors along with robust pricing aided PepsiCo’s earnings and organic revenues fourth-quarter 2023. The company witnessed organic revenue growth across the global beverage and convenient food businesses. Additionally, the company’s productivity and cost-management initiatives bode well. For 2024, PEP expects to deliver organic revenues revenue growth of at least 4%.However, PepsiCo witnessed soft volume trends across both businesses, which impacted reported revenues in the fourth quarter. Adverse currency rates also remain headwinds.(You can read the full research report on PepsiCo here >>>)Shares of HSBC have gained +16.0% over the past year against the Zacks Banks - Foreign industry’s gain of +27.7%. The company’s strong capital position, higher interest rates, an extensive network and business restructuring initiatives will keep supporting HSBC. The company is winding down its retail operations in Canada and is in the process of fully exiting Russia (gets Russia unit sale approval).In order to focus more on Asia, the company is set to acquire Citigroup’s wealth business in China. However, HSBC’s fourth-quarter 2023 results were hurt by lower revenues. While its efforts to improve market share in the Asia region will aid financials in the long run, it might lead to a rise in near-term costs.Because of its growth strategy and higher technology-related expenses, HSBC expects 2024 expense growth of 5%. The current tough macroeconomic backdrop is another near-term headwind.(You can read the full research report on HSBC here >>>)Other noteworthy reports we are featuring today include Cadence Design Systems, Inc. (CDNS), CrowdStrike Holdings, Inc. (CRWD) and Vulcan Materials Company (VMC).Director of ResearchSheraz MianNote: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>Story continuesToday's Must ReadExxonMobil (XOM) Banks on Resilient Capital StructurePepsiCo's (PEP) Investments in Business Drive the Top LineRestructuring to Aid HSBC Holdings (HSBC) Amid Cost WoesFeatured ReportsCadence (CDNS) Benefits from Diversified Product PortfolioPer the Zacks analyst, Cadence's performance is gaining from solid demand for the company's diversified product portfolio. Frequent product launches and strategic collaborations are tailwinds.CrowdStrike (CRWD) Rides on Product Strength, AcquisitionsPer the Zacks analyst, CrowdStrike is gaining from solid contributions of its growth-oriented products, primarily Falcon platform. Also, strategic buyouts like Bionic and Reposify are positive.Strategic Tie-Ups Aid Global Payments (GPN), High Costs AilPer the Zacks analyst, Global Payments gains from its healthy revenue stream on the back of buyouts, partnerships and electronic payment transactions. However, high expense level continues to bother.Investments & Clean Power Generation Aid AVANGRID (AGR)Per the Zacks analyst, AVANGRID's consistent investments will assist in upgrading its infrastructure. An expanding wind and solar generation portfolio will boost the company's performance.eSignature Strength Boosts DocuSign (DOCU) Despite ExpensesThe Zacks analyst is positive about DocuSign's top line, as it is significantly benefiting from continued customer demand for eSignature. However, escalating expenses are creating headwinds.Paramount Global (PARA) Banks on Paramount+, PlutoTV GrowthPer the Zacks analyst, Paramount Global is benefiting from strong viewership for its solid portfolio of streaming services including Paramount+ and PlutoTV.Rocket's (RCKT) Progress With Gene Therapies EncouragingThe Zacks Analyst is impressed with Rocket's encouraging gene therapy pipeline. An approval for the company's first product Kresladi, to treat leukocyte adhesion deficiency-I, is expected in June.New UpgradesRobust Public Sector Demand to Aid Vulcan's (VMC) Prospects Per the Zacks Analyst, Vulcan is likely to benefit from strong public sector demand. Also, strong aggregate-led business performance, and large industrial project demand bode well.Solid Bookings & Fleet Expansion to Aid Royal Caribbean (RCL)Per the Zacks analyst, Royal Caribbean is likely to benefit from robust booking trends, fleet expansion and digital initiatives. Also, strength in consumer onboard spending bodes well.Decent Comps Run to Fuel Sprouts Farmer' (SFM) Top LinePer the Zacks analyst, Sprouts Farmers' focus on product innovation, emphasis on e-commerce and expansion of private label offerings bode well. Comps are likely to rise 1.5-3.5% in 2024.New DowngradesRising Expenses and Lower Order backlog to Ail Thor (THO)The Zacks analyst is worried about Thor's rising SG&A expenses as a percentage of sales amid high investments in automation and innovation strategies. Declining backlog remains a concern.Weakness in Industrial Business Unit to Hurt Plexus (PLXS)Per the Zacks analyst, weakness in the Healthcare/Life Sciences and Industrial sectors is affecting Plexus' performance. Also, stiff competition and volatile macro environment is concerning.Softness in Biopharma Business Impedes Bio-Rad (BIO) GrowthThe Zacks analyst is worried about Bio-Rad witnessing reduced demand from biopharma customers for its process chromatography resins, resulting slower growth in Life Science Segment.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportExxon Mobil Corporation (XOM) : Free Stock Analysis ReportPepsiCo, Inc. (PEP) : Free Stock Analysis ReportVulcan Materials Company (VMC) : Free Stock Analysis ReportCadence Design Systems, Inc. (CDNS) : Free Stock Analysis ReportHSBC Holdings plc (HSBC) : Free Stock Analysis ReportCrowdStrike (CRWD) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Top Analyst Reports for Exxon Mobil, PepsiCo & HSBC

https://finance.yahoo.com/news/top-analyst-reports-exxon-mobil-192100166.html

4f5da8ba-9908-3b71-9445-94ed6110fc8e

PFE

The agency’s vaccine advisory committee could offer clues about an eventual call on how often the vaccines are needed.Continue reading

Barrons.com

How Often Do You Need an RSV Shot? A CDC Call Has High Stakes for GSK, Moderna.

https://finance.yahoo.com/m/c8a46da5-a72d-3574-8ce5-72914a77d380/how-often-do-you-need-an-rsv.html

c8a46da5-a72d-3574-8ce5-72914a77d380

PFE

(Bloomberg) -- A potential tax benefit is spurring US companies including PepsiCo Inc. and International Business Machines Corp. to sell bonds through their Singapore subsidiaries, fueling a record surge of sales from borrowers in the city state.Most Read from BloombergBYD’s New $233,450 EV Supercar to Rival Ferrari, LamborghiniA Spike in Heart Disease Deaths Since Covid Is Puzzling ScientistsFreddie Mercury’s London Residence Lists at £30 MillionJacob Rothschild, Financier and Philanthropist, Dies at 87Stock Rally Stalls at Start of Data-Packed Week: Markets WrapThe tactic can allow companies to deduct interest expense from their taxable income in both the US and Singapore. That double deduction means that effective borrowing costs — after taxes — can be materially lower than they would be with a bond issued in the US.The mechanics of qualifying for the benefit are complicated and a rule that emerged from the Organisation for Economic Cooperation and Development in December may wind up stopping firms from using the technique. But companies may be able to take advantage of it for at least the next three years.As companies sell bonds, they are pushing debt sales volume from Singapore ever higher. Last year, corporates sold $51.5 billion of notes from the city state, more than double the previous year and an all-time record. That mainly came from Pfizer Inc.’s sale of $31 billion of bonds, one of the biggest corporate bond offerings on record, in May 2023 through a Singapore unit to help finance an acquisition.The sales have continued this year: PepsiCo Singapore Financing sold $1.75 billion of bonds earlier this month, and IBM International Capital sold $5.5 billion of securities in late January.A spokesperson for IBM declined to comment. PepsiCo and Pfizer did not respond to requests for comment.New global tax rates are taking shape through the OECD to ensure minimum tax corporate rates are levied globally. Singapore domestic tax law allows a company, including a local subsidiary of a foreign corporation, to deduct interest payments on debt from their taxable income in the nation state. At the same time, the US tax code might allow companies to deduct a foreign branch’s interest expense from its US taxable income.Story continues--With assistance from Finbarr Flynn.Most Read from Bloomberg BusinessweekElon Musk’s Vegas Tunnel Project Has Been Racking Up Safety ViolationsThe High Cost of Eating Out in AmericaTranscript: Did Musk Buy Twitter to Keep His Movements Secret?Why Elon Musk Bought Twitter in the First PlaceCan the Masters of Hipster Cringe Conquer Hollywood With Wall Street Cash?©2024 Bloomberg L.P.

Bloomberg

Pepsi, IBM Sell Bonds Through Singapore to Reap Tax Benefit

https://finance.yahoo.com/news/pepsi-ibm-sell-bonds-singapore-003000776.html

4ba34e1a-a7aa-3afc-86c9-5da5aab375cc

PFE

Dividend stocks are great for several reasons. Some use the regular payouts they offer to complement their income, whether in retirement or otherwise, while others reinvest the money to boost long-term returns. Dividend stocks have generally outperformed their non-dividend-paying peers over long periods.Clearly, this mode of investing has advantages, but if there's one thing better than investing in dividend stocks, it's investing in cheap dividend stocks. Let's consider two companies that fit the bill: Pfizer (NYSE: PFE) and Viatris (NASDAQ: VTRS).1. PfizerLast year, Pfizer's revenue dropped by 42% year over year to $58.5 billion. The decline was due to the receding pandemic. Demand for Pfizer's COVID-19 vaccine, Comirnaty, and its related medicine, Paxlovid, dropped off a cliff. Still, the drugmaker's current slump won't last forever.Pfizer already has a plan to turn over a new leaf. Last year, it earned approval in the U.S. for seven brand-new products, more than double any of its competitors' total for 2023.These products will eventually help Pfizer's revenue start moving in the right direction.It's also worth noting that Pfizer's underlying business, excluding its coronavirus portfolio, isn't performing that badly: Revenue increased by a solid 7% year over year in 2023. Pfizer's decision to join the COVID-19 market has been a net positive despite its current declining top-line. It became the company in the pharmaceutical industry to hit $100 billion in sales in 2023 thanks to it. The money it generated allowed it to invest in the future.Pfizer made important acquisitions, including that of cancer specialist Seagen, for $43 billion. Seagen was already a successful oncology-focused biotech before having access to the kinds of funds Pfizer has. The newly formed entity under Pfizer should speed up innovation compared with what it would have been able to accomplish by itself. Pfizer plans on increasing the number of blockbuster cancer medicines in its portfolio to eight by 2030, up from five today.Story continuesOf course, Pfizer is also active in many other areas, from immunology to infectious diseases. It's developing an influenza vaccine to help address the low efficacy of currently available options. The drugmaker is also working on a combined COVID/flu vaccine. Both are in late-stage studies. Pfizer boasts 112 candidates in its pipeline. The company should significantly improve its lineup in the next few years, even more than it already has.As for the dividend, the company has increased its payouts by just under 17% in the past five years. It offers a forward dividend yield of 6.18%. Lastly, Pfizer's forward price-to-earnings (P/E) ratio is just 12, compared with a forward P/E of 18.4 for the pharmaceutical industry. So Pfizer looks like an attractively valued dividend stock by this popular metric.2. ViatrisViatris hasn't been a standalone, publicly traded corporation for very long. The company was created when Pfizer's former subsidiary, off-patent drug specialist Upjohn, merged with the corporation then known as Mylan N.V., which focused on developing and marketing generic drugs, back in late 2020.The company's position in the market for generic and branded pharmaceutical products is enviable. It owns several popular brands that should continue attracting customers for a long time. These include Viagra, Xanax, Lipitor, and more. This business creates a somewhat stable source of revenue for the company.Viatris has also significantly changed its operations recently by shedding lower-growth opportunity segments. For instance, it got rid of its biosimilar and women's healthcare units. Besides cutting off low-growth opportunities, Viatris planned to pay off debt while investing in more potentially lucrative avenues.The company created a new eye care division through acquisitions and announced a research and development partnership with Switzerland-based pharmaceutical company Idorsia. Viatris added two potential blockbuster candidates to its late-stage pipeline through the Idorsia deal, while it expects its new eye care unit to add more than $1 billion in annual sales by 2028.Viatris has struggled with top-line growth. Last year, its net sales of $15.4 billion remained flat on an adjusted basis (that is, taking into account acquisitions and divestitures). However, thanks to recent business changes, the company could make significant progress on that front in the years ahead. Meanwhile, Viatris offers a forward yield of 3.89%, though it has increased its dividend just once since it became a standalone company.Viatris' forward P/E ratio of 4.4 looks more than reasonable. For income seekers willing to stay the course for a while, Viatris looks like a good option.Should you invest $1,000 in Pfizer right now?Before you buy stock in Pfizer, consider this:The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pfizer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of March 8, 2024Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool recommends Viatris. The Motley Fool has a disclosure policy.2 Dirt Cheap Dividend Stocks to Buy and Hold was originally published by The Motley Fool

Motley Fool

2 Dirt Cheap Dividend Stocks to Buy and Hold

https://finance.yahoo.com/news/2-dirt-cheap-dividend-stocks-134500534.html

0efddf7b-4f2e-3bc7-a5c1-2dedb5bdbcc4

PFE

Contenders are beginning to emerge from the lab, some with the potential to unseat Lilly’s Zepbound and Novo’s Wegovy.Continue reading

Barrons.com

Wegovy and Zepbound Are King. Who’s Coming for Their Crowns.

https://finance.yahoo.com/m/8f1d8477-bfa4-3db3-a25f-0279d5214cca/wegovy-and-zepbound-are-king-.html

8f1d8477-bfa4-3db3-a25f-0279d5214cca

PFG

Have you been paying attention to shares of Janus Henderson Group plc (JHG)? Shares have been on the move with the stock up 7.2% over the past month. The stock hit a new 52-week high of $31.62 in the previous session. Janus Henderson Group plc has gained 4% since the start of the year compared to the 3.1% move for the Zacks Finance sector and the 7.3% return for the Zacks Financial - Investment Management industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 1, 2024, Janus Henderson Group plc reported EPS of $0.82 versus consensus estimate of $0.56.For the current fiscal year, Janus Henderson Group plc is expected to post earnings of $2.70 per share on $2.23 billion in revenues. This represents a 2.66% change in EPS on a 5.88% change in revenues. For the next fiscal year, the company is expected to earn $2.80 per share on $2.29 billion in revenues. This represents a year-over-year change of 3.85% and 2.88%, respectively.Valuation MetricsJanus Henderson Group plc may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Janus Henderson Group plc has a Value Score of B. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of B.Story continuesIn terms of its value breakdown, the stock currently trades at 11.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 10.8X. On a trailing cash flow basis, the stock currently trades at 11.7X versus its peer group's average of 10.5X. Additionally, the stock has a PEG ratio of 1.11. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Janus Henderson Group plc currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Janus Henderson Group plc passes the test. Thus, it seems as though Janus Henderson Group plc shares could have potential in the weeks and months to come.How Does JHG Stack Up to the Competition?Shares of JHG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Principal Financial Group, Inc. (PFG). PFG has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of A.Earnings were strong last quarter. Principal Financial Group, Inc. beat our consensus estimate by 7.65%, and for the current fiscal year, PFG is expected to post earnings of $7.59 per share on revenue of $15.24 billion.Shares of Principal Financial Group, Inc. have gained 0.2% over the past month, and currently trade at a forward P/E of 10.58X and a P/CF of 10.12X.The Financial - Investment Management industry is in the top 7% of all the industries we have in our universe, so it looks like there are some nice tailwinds for JHG and PFG, even beyond their own solid fundamental situation.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportJanus Henderson Group plc (JHG) : Free Stock Analysis ReportPrincipal Financial Group, Inc. (PFG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Janus Henderson Group plc (JHG) Hit a 52 Week High, Can the Run Continue?

https://finance.yahoo.com/news/janus-henderson-group-plc-jhg-141510782.html

1892bbe5-5ab2-388f-b05f-364f3ddc14cd

PFG

By Gabriel AraujoSAO PAULO, Feb 27 (Reuters) - Principal Financial Group's asset management business is bullish on Latin American equities as interest rates come down and valuations remain at compelling levels in the region, a top executive told Reuters.The company's portfolio for emerging markets has an "overweight" rating on Latin America, with Brazil being its favorite choice, counterbalancing an "underweight" position on China amid signs of weakness in the world's second-largest economy.That makes the asset manager, which oversees $695 billion globally, the latest to have bets placed on Brazil, joining the likes of ETF provider Global X and Switzerland's Vontobel in their view of discounted local equity valuations."Going back 20 years, we find that Brazil has been cheaper only 14% of the time," said Todd Jablonski, Principal Asset Management's global head of multi-asset investing, despite a late 2023 rally that saw the benchmark Bovespa stock index hit record highs."Even though we have seen the valuations increase and the fundamentals look pretty good, we still see upside because the valuation remains below its long-term averages.""If an investor 'underweights' China, you need a market big enough to hold that 'overweight.' And Brazil carries that feature," he noted.Brazil's central bank started a monetary easing cycle in August after holding its key Selic interest rate at 13.75% for nearly a year to tame high inflation, and has so far delivered a total of 250 basis points of rate cuts.Jablonski believes the central bank of Latin America's largest economy will continue cutting rates in 50-basis-point increments at its monetary policy meetings until getting the Selic rate to 8.5%, a view he acknowledged was "a bit more aggressive" than most market participants.Principal's optimism also extends to Latin America as a whole, with Mexico being its second-favorite market, both on compelling valuations and the benefits of the "nearshoring" trend that is driving increased industrial investments there."Brazil, Mexico, Colombia, Peru all delivered very strong returns, greater than 30% U.S. dollar returns last year," Jablonski said. "And valuation is still attractive." (Reporting by Gabriel Araujo; Editing by Paul Simao)

Reuters

Principal Asset Management upbeat on Latin America to counter China view

https://finance.yahoo.com/news/principal-asset-management-upbeat-latin-080000273.html

9925e75f-e3c8-3b88-ae4a-15a62e184dec

PFG

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.Is This 1 Momentum Stock a Screaming Buy Right Now?Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.Principal Financial (PFG)Ranked among the Fortune 500 companies, Des Moines, IA-based Principal Financial Group Inc. is a leader in global investment management offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through our diverse family of financial services companies. The company was founded in 1879.PFG boasts a Momentum Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Principal Financial has seen some interesting price action recently; the stock is up 0.2% over the past one week and up 3.4% over the past four weeks. And in the last one-year period, PFG has lost 3%. As for the stock's trading volume, 1,187,188.75 shares on average were traded over the last 20 days.A company's earnings performance is important for momentum investors as well. For fiscal 2024, four analysts revised their earnings estimate higher in the last 60 days for PFG, while the Zacks Consensus Estimate has increased $0.20 to $7.61 per share. PFG also boasts an average earnings surprise of 0%.Story continuesInvestors should take the time to consider PFG for their portfolios due to its solid Zacks Ranks, notable earnings metrics, and impressive Momentum and VGM Style Scores.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportPrincipal Financial Group, Inc. (PFG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Principal Financial (PFG) is a Top Momentum Stock for the Long-Term

https://finance.yahoo.com/news/why-principal-financial-pfg-top-145011728.html

2e300b4e-0885-39a4-9b94-6a979583ca08

PFG

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.Why Investors Should Pay Attention to This Value StockFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.Principal Financial (PFG)Ranked among the Fortune 500 companies, Des Moines, IA-based Principal Financial Group Inc. is a leader in global investment management offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through our diverse family of financial services companies. The company was founded in 1879.PFG is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 10.5X for the current fiscal year compared to the Financial - Investment Management industry's P/E of 11.2X. Additionally, PFG has a PEG Ratio of 1 and a Price/Cash Flow ratio of 10.1X. Value investors should also note PFG's Price/Sales ratio of 1.4X.A company's earnings performance is important for value investors as well. For fiscal 2024, four analysts revised their earnings estimate higher in the last 60 days for PFG, while the Zacks Consensus Estimate has increased $0.20 to $7.61 per share. PFG also holds an average earnings surprise of 0%.With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding PFG to their portfolios.Story continuesWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportPrincipal Financial Group, Inc. (PFG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

https://finance.yahoo.com/news/value-investor-1-stock-could-144008008.html

70078491-f1ea-3efe-9a9b-957096b53fc2

PG

In this article, we discuss 14 best S&P 500 dividend stocks to invest in 2024. You can skip our detailed analysis of dividend stocks in the S&P 500 and their performance over the years, and go directly to read 5 Best S&P 500 Dividend Stocks To Invest In 2024. In 2023, despite the presence of higher interest rates, consumers remained unfazed, and investors displayed more optimism than apprehension, largely fueled by the excitement surrounding advancements in artificial intelligence (AI). Consequently, the S&P 500 experienced a remarkable surge, gaining over 24% last year. This surge was primarily attributed to the dominance of what has been dubbed the "Magnificent Seven." These seven major companies, which include Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and NVIDIA Corporation (NASDAQ:NVDA), played a pivotal role in driving the S&P 500's performance, contributing significantly to its overall returns. On the flip side, a staggering 72% of stocks failed to match the performance of the S&P 500 index, setting a new record for underperformance. Additionally, dividend-paying stocks experienced a downturn in 2023, paving the way for the dominance of technology equities. Despite this, the stock market returns throughout the year were both exceptional and notably robust in comparison to historical trends.Despite their recent lackluster performance, dividends remain a crucial aspect of returns for equity investors and have garnered considerable attention in capital markets research. The appeal of dividend-paying stocks is substantial, and rightfully so as they have the potential to significantly enhance long-term investment outcomes. This general observation has been well-documented across various periods and global markets. For instance, one study analyzed the components contributing to total equity returns of U.S. stocks spanning from 1802 to 2002. It revealed that dividends, along with real growth in dividends, constituted a substantial portion, accounting for 5.8% of the total annualized return of 7.9% over 200 years. Another study, conducted from a global perspective by researchers at the London Business School, examined data from 1900 to 2005 across 17 countries. It found that the real return averaged around 5%, with an average dividend yield of 4.5% during that timeframe. These findings provide compelling evidence for the significance of dividends for long-term investors.Story continuesYet another report from S&P Dow Jones Indices provided insight into the enduring impact of dividend-paying equities over the long term. This report emphasized that since 1926, dividends have played a significant role, contributing roughly 32% of the total return for the S&P 500, with capital appreciations making up the remaining 68%. Hence, both sustainable dividend income and the potential for capital appreciation are key considerations for forming expectations regarding total returns. Furthermore, the growth of dividends proves to be beneficial for investors. Over an extended period, the S&P 500 Dividend Aristocrats, which monitors the performance of companies with 25 or more consecutive years of dividend growth, has surpassed the S&P 500 index while exhibiting lower volatility, indicating higher risk-adjusted returns. The S&P 500 Dividend Aristocrats' ability to mitigate losses can be observed through its upside and downside capture ratios. According to a report by S&P Dow Jones Indices, it has outperformed the S&P 500 in down months 69.34% of the time and in up months 43.61% of the time from December 29, 1989, to July 31, 2023. Additionally, it's worth noting that the S&P 500 Dividend Aristocrats experienced lower drawdown levels compared to the benchmark index.Considering these points, let's explore some of the top S&P 500 dividend-paying stocks.14 Best S&P 500 Dividend Stocks To Invest In 2024Image by Sergei Tokmakov Terms.Law from PixabayOur Methodology: To create this list, we first examined the S&P 500 stocks based on their weight in the index and picked the top 25 stocks that consistently distribute dividends to their shareholders. Among these, we chose 13 stocks that garnered the most attention from hedge fund investors by the conclusion of Q4 2023, using data from Insider Monkey’s database. The stocks are ranked in ascending order of the number of hedge funds having stakes in them. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).14. The Home Depot, Inc. (NYSE:HD)Number of Hedge Fund Holders: 70The Home Depot, Inc. (NYSE:HD) is a multinational home improvement retailer. It operates a chain of retail stores that offer a wide range of products and services for home improvement, construction, and renovation projects. On February 20, the company declared a 7.7% hike in its quarterly dividend to $2.25 per share. Through this increase, the company stretched its dividend growth streak to 14 years, which makes HD one of the best dividend stocks on our list. The stock's dividend yield on February 26 came in at 2.42%.At the end of Q4 2023, 70 hedge funds tracked by Insider Monkey reported having stakes in The Home Depot, Inc. (NYSE:HD), compared with 76 in the previous quarter. The consolidated value of these stakes is nearly $6 billion.13. The Procter & Gamble Company (NYSE:PG)Number of Hedge Fund Holders: 71The Procter & Gamble Company (NYSE:PG) is a multinational consumer goods corporation. It manufactures and sells a wide range of branded consumer packaged goods, including personal care products, grooming products, household cleaning agents, baby care products, and health care products. It currently pays a quarterly dividend of $0.9407 per share and has a dividend yield of 2.34%, as of February 26. With a dividend growth streak of 67 years, PG is one of the best S&P 500 dividend stocks on our list.As of the close of Q4 2023, 71 hedge funds in Insider Monkey's database owned stakes in The Procter & Gamble Company (NYSE:PG), compared with 75 in the preceding quarter. The collective value of these stakes is roughly $6 billion. Among these hedge funds, Fisher Asset Management was the company's leading stakeholder in Q4.12. Broadcom Inc. (NASDAQ:AVGO)Number of Hedge Fund Holders: 91Broadcom Inc. (NASDAQ:AVGO) is a global technology company that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. The company currently pays a quarterly dividend of $5.25 per share, having raised it by 14% in December 2023. It has been growing its dividends consistently for the past 13 years, which makes AVGO one of the best dividend stocks on our list. As of February 26, the stock has a dividend yield of 1.62%.The number of hedge funds tracked by Insider Monkey owning stakes in Broadcom Inc. (NASDAQ:AVGO) grew to 91 in Q4 2023, from 87 in the previous quarter. These stakes are collectively valued at over $8.8 billion.11. Bank of America Corporation (NYSE:BAC)Number of Hedge Fund Holders: 96Bank of America Corporation (NYSE:BAC) is one of the largest financial institutions in the US and globally. It operates as a diversified financial services company, offering a wide range of banking and financial products and services to its consumers. On January 24, the company declared a quarterly dividend of $0.24 per share, which was in line with its previous dividend. The company has a 24-year run of paying regular dividends to shareholders, which makes BAC one of the best dividend stocks on our list. As of February 26, the stock has a dividend yield of 2.83%.Bank of America Corporation (NYSE:BAC) ended the fourth quarter with 96 hedge fund positions, up from 88 in the previous quarter, according to Insider Monkey's database. The consolidated value of these stakes is nearly $40 billion. With over 1 billion shares, Warren Buffett's Berkshire Hathaway was the company's leading stakeholder in Q4.10. Merck & Co., Inc. (NYSE:MRK)Number of Hedge Fund Holders: 98Merck & Co., Inc. (NYSE:MRK) is next on our list of the best S&P 500 dividend stocks. The pharmaceutical and medical device company currently offers a quarterly dividend of $0.77 per share and has a dividend yield of 2.38%, as of February 26. The company has been rewarding shareholders with growing dividends for the past 13 years.Merck & Co., Inc. (NYSE:MRK) saw growth in hedge fund positions at the end of Q4 2023, as 98 funds owned stakes in the company, up from 85 in the previous quarter, according to Insider Monkey's database. The overall value of these stakes is over $7.16 billion.9. Oracle Corporation (NYSE:ORCL)Number of Hedge Fund Holders: 100Oracle Corporation (NYSE:ORCL) is a multinational technology company that specializes in developing and marketing enterprise software products, cloud computing solutions, and hardware systems. The company pays a quarterly dividend of $0.40 per share and has raised its dividends for eight years in a row. The stock's dividend yield on February 26 came in at 1.43%.Oracle Corporation (NYSE:ORCL) was a part of 100 hedge fund portfolios at the end of Q4 2023, jumping from 88 in the preceding quarter, as per Insider Monkey's database. The stakes owned by these hedge funds have a collective value of over $6.4 billion. With over 18.5 million shares, First Eagle Investment Management was the company's leading stakeholder in Q4.8. Eli Lilly and Company (NYSE:LLY)Number of Hedge Fund Holders: 102Eli Lilly and Company (NYSE:LLY) is a multinational pharmaceutical company that focuses on the discovery, development, manufacturing, and marketing of innovative pharmaceutical products to address various medical conditions and diseases. The company's current quarterly dividend comes in at $1.30 per share for a dividend yield of 0.67%, as of February 26. It is one of the best dividend stocks on our list as the company maintains a 10-year streak of consistent dividend growth.At the end of Q4 2023, 102 hedge funds tracked by Insider Monkey reported having stakes in Eli Lilly and Company (NYSE:LLY), which remained unchanged from the previous quarter. The collective value of these stakes is more than $11 billion.7. JPMorgan Chase & Co. (NYSE:JPM)Number of Hedge Fund Holders: 103An American financial services company, JPMorgan Chase & Co. (NYSE:JPM) pays a quarterly dividend of $1.05 per share. During the fourth quarter of 2023, the company returned $3.1 billion to shareholders through dividends, which makes JPM one of the best dividend stocks on our list. The stock offers a dividend yield of 2.28%, as of February 26.Insider Monkey's database of Q4 2023 indicated that 103 hedge funds owned stakes in JPMorgan Chase & Co. (NYSE:JPM), compared with 109 in the preceding quarter. The total value of these stakes is more than $9 billion. Ken Fisher's Fisher Asset Management was the company's leading stakeholder in Q4.6. Thermo Fisher Scientific Inc. (NYSE:TMO)Number of Hedge Fund Holders: 111Thermo Fisher Scientific Inc. (NYSE:TMO) ranks sixth on our list of the best dividend stocks in the S&P 500. The multinational biotech and life sciences company declared an 11.4% hike in its quarterly dividend to $0.39 per share. Through this increase, the company achieved its seventh annual consecutive dividend hike. The stock has a dividend yield of 0.28%, as of February 26.As of the end of Q4 2023, 111 hedge funds tracked by Insider Monkey owned stakes in Thermo Fisher Scientific Inc. (NYSE:TMO), up from 109 in the previous quarter. The collective value of these stakes is over $10.3 billion. Click to continue reading and see 5 Best S&P 500 Dividend Stocks To Invest In 2024.  Suggested articles:Bill Gates’ 16 Dividend Stocks To BuyJim Cramer Says Do Not Buy These 11 StocksKen Fisher Portfolio: 12 Biggest PositionsDisclosure. None. 14 Best S&P 500 Dividend Stocks To Invest In 2024 is originally published on Insider Monkey.

Insider Monkey

14 Best S&P 500 Dividend Stocks To Invest In 2024

https://finance.yahoo.com/news/14-best-p-500-dividend-181946918.html

7f4addf3-4092-3849-bc90-6e92ab735dd7

PG

In the latest trading session, Procter & Gamble (PG) closed at $160.22, marking a -0.5% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.13%.Coming into today, shares of the world's largest consumer products maker had gained 3.13% in the past month. In that same time, the Consumer Staples sector gained 2.5%, while the S&P 500 gained 4.74%.The investment community will be paying close attention to the earnings performance of Procter & Gamble in its upcoming release. On that day, Procter & Gamble is projected to report earnings of $1.42 per share, which would represent year-over-year growth of 3.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.53 billion, up 2.3% from the year-ago period.Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.45 per share and revenue of $84.89 billion, indicating changes of +9.32% and +3.52%, respectively, compared to the previous year.Investors should also note any recent changes to analyst estimates for Procter & Gamble. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.11% upward. Procter & Gamble is currently sporting a Zacks Rank of #3 (Hold).Story continuesInvestors should also note Procter & Gamble's current valuation metrics, including its Forward P/E ratio of 24.96. This represents a premium compared to its industry's average Forward P/E of 24.75.Meanwhile, PG's PEG ratio is currently 3.29. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Soap and Cleaning Materials industry stood at 3.38 at the close of the market yesterday.The Soap and Cleaning Materials industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 25, this industry ranks in the top 10% of all industries, numbering over 250.The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportProcter & Gamble Company (The) (PG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Procter & Gamble (PG) Sees a More Significant Dip Than Broader Market: Some Facts to Know

https://finance.yahoo.com/news/procter-gamble-pg-sees-more-224516341.html

45964975-9495-38f4-9d2b-168d18dbd90c

PG

Last week, all of the three widely followed indexes closed in the red. The S&P 500, Dow Jones Industrial Average and the Nasdaq Composite declined 0.3%, 0.9% and 1.2%, respectively.Market participants were eagerly awaiting Fed Chair Jerome Powell’s Congressional testimony to gauge the Fed’s rate-cut outlook. Powell said that they were looking to start cutting rates, but it will be subject to further assessment of where inflation is at and might not be anytime soon. There was an early-week tech slump that dragged the market down and a mid-week resurgence based on reports of a robust job market and encouraging earnings numbers.The focus continues to be on the central bank, though, and market participants are currently not expecting an interest rate cut before June 2024.Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.Here are some of our key achievements:Ocular Therapeutix and Solid Biosciences Surge Following Zacks Rank UpgradeShares of Ocular Therapeutix, Inc. OCUL have gained 126.8% (versus the S&P 500’s 8.8% increase) since it was upgraded to a Zacks Rank #2 (Buy) on January 8.Another stock, Solid Biosciences Inc. SLDB, which was also upgraded to a Zacks Rank #2 on January 8, has returned 101.5% since then.Zacks Rank, our short-term rating system, has earnings estimate revisions at its core. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.A hypothetical portfolio of Zacks Rank #1 (Strong Buy) stocks returned +20.63% in 2023 vs. +24.83% for the S&P 500 index and +15% for the equal-weight S&P 500 index. The portfolio of Zacks Rank #1 stocks is an equal-weight portfolio, while the S&P 500 index is a market-cap-weighted index that has been notably distorted by the concentrated performance of mega-cap stocks in 2023.Story continuesWe are not trying to cherry-pick here. But since this Zacks Model portfolio, consisting of Zacks Rank #1 stocks, is an equal-weight portfolio, the equal-weight S&P 500 index is the appropriate benchmark for comparison. Looked at this way, this portfolio has handily outperformed the index.The Zacks Model Portfolio - consisting of Zacks Rank #1 stocks – has outperformed the S&P index by more than 13 percentage points since 1988 (Through January 1st, 2024, the Zacks # 1 Rank stocks generated an annualized return of +24.18% since 1988 vs. +10.88% for the S&P 500 index).You can see the complete list of today’s Zacks Rank #1 stocks here >>>Check Ocular’s historical EPS and Sales here>>>Check Solid Biosciences’ historical EPS and Sales here>>>Zacks Investment ResearchImage Source: Zacks Investment ResearchZacks Recommendation Upgrades Vaxart and ACM Research Higher  Shares of Vaxart, Inc. VXRT and ACM Research, Inc. ACMR have advanced 108.5% (versus the S&P 500’s 7.2% rise) and 47.1% (versus the S&P 500’s 6.8% rise) since their Zacks Recommendation was upgraded to Outperform on January 9 and January 12, respectively.While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.The Zacks Recommendation classifies stocks into three groups — Outperform, Neutral and Underperform. While these recommendations are determined quantitatively, our analysts have the flexibility to override them for the 1100+ stocks they closely follow based on their better judgment of factors such as valuation, industry conditions and management effectiveness than the quantitative model.To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>>Zacks Focus List Stocks Sea Limited, Novo Nordisk Shoot UpShares of Sea Limited SE, which belongs to the Zacks Focus List, have gained 61.5% over the past 12 weeks. The stock was added to the Focus List on March 26, 2020. Another Focus-List holding, Novo Nordisk A/S NVO, which was added to the portfolio on March 7, 2023, has returned 37% over the past 12 weeks. The S&P 500 has advanced 11.7% over this period.The 50-stock Zacks Focus List model portfolio returned +21.72% in 2023 (through November 30) vs. +20.79% for the S&P 500 index and +6.32% for the equal-weight S&P 500 index. In 2022, the portfolio produced -15.2% vs. the S&P 500 index’s -17.96%.Since 2004, the Focus List portfolio has produced an annualized return of +11.07% through November 30, 2023. This compares to a +9.49% annualized return for the S&P 500 index in the same time period.On a rolling one-, three- and five-year annualized basis, the Zacks Focus List returned +13.49%, +9.21%, and +14.05% vs. +13.82%, +9.74% and +12.51% for the S&P 500 index, respectively.Unlock all of our powerful research, tools and analysis, including the Focus List, Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. Gain full access now >>Zacks ECAP Stocks Walmart and AutoZone Make Significant GainsWalmart Inc. WMT, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 18.1% over the past 12 weeks. AutoZone, Inc. AZO has followed Walmart with 17.2% returns.The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy and Hold stocks, returned +12.17% in 2023 vs. +26.28% for the S&P 500 index. The portfolio returned -4.7% in 2022 vs. the S&P 500 index’s -17.96%.With little to no turnover and annual rebalance periodicity, the ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.The ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution to access Zacks award-winning stock, mutual fund and ETF research. Click here to schedule a demo.Zacks ECDP Stocks Colgate-Palmolive Company and Procter & Gamble Outshine PeersColgate-Palmolive Company CL, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 14.4% over the past 12 weeks. Another ECDP stock, The Procter & Gamble Company PG, has climbed 11.4% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance.Check Colgate-Palmolive’s dividend history here>>>Check Procter & Gamble’s dividend history here>>>With an extremely low Beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps significantly mitigate risk.The Zacks Earnings Certain Dividend Portfolio (ECDP) returned -0.9% in 2023 vs. +26.28% for the S&P 500 index) and +8.11% for the Dividend Aristocrats ETF (NOBL). The portfolio returned -2.3% in 2022 vs. -17.96% for the S&P 500 index and -8.34% for NOBL.Click here to access this portfolio on Zacks Advisor Tools.Zacks Top 10 Stocks — Sprouts Farmers Market Delivers Solid ReturnsSprouts Farmers Market, Inc. SFM, from the Zacks Top 10 Stocks for 2024, has jumped 31.7% year to date compared to a 7.7% increase for the S&P 500 Index.The Top 10 portfolio returned +25.15% in 2023 vs. +26.28% for the S&P 500 index. Since 2012, the Top 10 portfolio has produced a cumulative return of +1060.9% through the end of 2023 vs. +360.1% for the S&P 500 index.On a rolling one-, three- and five-year annualized basis, the Zacks Top 10 portfolio returned +25.15%, +14.13%, and +29.3% vs. +26.28%, +10.23% and +15.61% for the S&P 500 index, respectively.Since 2012, the Zacks Top 10 portfolio has returned an annualized return of +22.67% through the end of 2023 vs. +13.56% for the S&P 500 index.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportNovo Nordisk A/S (NVO) : Free Stock Analysis ReportProcter & Gamble Company (The) (PG) : Free Stock Analysis ReportWalmart Inc. (WMT) : Free Stock Analysis ReportColgate-Palmolive Company (CL) : Free Stock Analysis ReportSea Limited Sponsored ADR (SE) : Free Stock Analysis ReportAutoZone, Inc. (AZO) : Free Stock Analysis ReportACM Research, Inc. (ACMR) : Free Stock Analysis ReportSprouts Farmers Market, Inc. (SFM) : Free Stock Analysis ReportOcular Therapeutix, Inc. (OCUL) : Free Stock Analysis ReportSolid Biosciences Inc. (SLDB) : Free Stock Analysis ReportVAXART, INC. (VXRT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Beat the Market Like Zacks: Walmart, Novo Nordisk, Procter & Gamble in Focus

https://finance.yahoo.com/news/beat-market-zacks-walmart-novo-120300982.html

d9ffafbd-e0ad-3fb6-bec6-909875ab9a98

PG

Procter & Gamble (PG) closed at $161.55 in the latest trading session, marking a +0.75% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.11%. Meanwhile, the Dow experienced a rise of 0.12%, and the technology-dominated Nasdaq saw a decrease of 0.41%.Heading into today, shares of the world's largest consumer products maker had gained 1.86% over the past month, outpacing the Consumer Staples sector's gain of 0.25% and lagging the S&P 500's gain of 2.7% in that time.Investors will be eagerly watching for the performance of Procter & Gamble in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.42, marking a 3.65% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $20.53 billion, reflecting a 2.3% rise from the equivalent quarter last year.For the full year, the Zacks Consensus Estimates are projecting earnings of $6.45 per share and revenue of $84.89 billion, which would represent changes of +9.32% and +3.52%, respectively, from the prior year.Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Procter & Gamble. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Procter & Gamble is holding a Zacks Rank of #3 (Hold) right now.Story continuesInvestors should also note Procter & Gamble's current valuation metrics, including its Forward P/E ratio of 24.85. Its industry sports an average Forward P/E of 24.85, so one might conclude that Procter & Gamble is trading at no noticeable deviation comparatively.One should further note that PG currently holds a PEG ratio of 3.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. PG's industry had an average PEG ratio of 3.47 as of yesterday's close.The Soap and Cleaning Materials industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 28, positioning it in the top 12% of all 250+ industries.The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportProcter & Gamble Company (The) (PG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Procter & Gamble (PG) Increases Despite Market Slip: Here's What You Need to Know

https://finance.yahoo.com/news/procter-gamble-pg-increases-despite-215017758.html

551793ad-2ec7-324c-9485-8e17e680d2d2

PGR

For Immediate ReleaseChicago, IL – February 26, 2024 – Zacks Equity Research shares The Progressive Corp, PGR as the Bull of the Day and Archer Daniels Midland ADM as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Exxon Mobil Corp. XOM, Matador Resources Co. MTDR and Diamondback Energy, Inc. FANG.Here is a synopsis of all five stocks:Bull of the Day:The Progressive Corp, a current Zacks Rank #1 (Strong Buy), is a massive American insurance company. Analysts have taken their expectations higher across the board.In addition to favorable earnings estimate revisions, the company resides within the Zacks Insurance – Property & Casualty industry, currently ranked in the top 20% of all Zacks industries. Let's take a deeper look at the company.ProgressiveRight off the bat, it's worth noting that Progressive shares have been monster performers in general over the last decade, delivering a remarkable 25% annualized return vs. the S&P 500's 13.1%. Shares got a solid boost following its latest set of quarterly results.Concerning the above-mentioned quarter, PGR exceeded the Zacks Consensus EPS estimate by 24% and posted a 3% revenue beat, reflecting growth rates of 97% and 23%, respectively. Drilling a bit deeper, Progressive saw total Policies in Force grow 9% from the year-ago period, reflecting continued business momentum.The company's top line performance has been strong, with revenues enjoying a recent acceleration.In addition, shares aren't overly stretched regarding valuation given the company's growth, with the current 21.6X forward earnings multiple (F1) comparing favorably to the Zacks industry average of 29.0X. PGR is forecasted to enjoy 45% earnings growth on 15% higher sales in its current year (FY24), with FY25 expectations alluding to an additional 17% bump in earnings paired with a 12% revenue boost.The stock carries a Style Score of 'A' for Growth and a Style Score of 'D' for Value.Story continuesIncome-focused investors could also be attracted to PGR shares, currently yielding a respectable 0.4% annually paired with a sustainable payout ratio sitting at 6% of its earnings.Bottom LineInvestors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.The Progressive Corp. would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).Bear of the Day:Archer Daniels Midland is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products. Analysts have lowered their earnings expectations over the last several months, pushing the stock into a Zacks Rank #5 (Strong Sell).In addition, the company resides in the Zacks Agriculture – Operations industry, which is currently ranked in the bottom 4% of all Zacks industries (242/250). Let's take a closer look at how the agriculture giant currently stacks up.Archer Daniels MidlandADM shares have had a rough showing over the last year, losing more than 30% in value and widely underperforming relative to the general market. News of the company suspending its CFO over accounting practices near the end of January caused shares to nosedive, as we can see highlighted below.It was the biggest one-day drop for the stock (-24%) since all the way back in 1929.Shares have seen modest buying pressure since, up a slight 2.5%. Nonetheless, the unfavorable coverage has certainly weighed heavily on investors' sentiment and will remain a hurdle for the company to clear.Bottom LineNegative earnings estimate revisions from analysts and a recent suspension of its CFO paint a challenging picture for the company's shares in the near term.Archer Daniels Midland is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company's earnings outlook.For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.Additional content:Keep an Eye on 3 Permian Plays as Energy Stays StrongThe pricing environment of crude oil continues to be favorable, encouraging more exploration and production activities. Upstream players may keep increasing their operations in prolific shale resources, consequently raising the count of drilling rigs. With the uptick in drilling activities, production is expected to increase, benefiting businesses involved in exploration and production.Oil Price Still HighWest Texas Intermediate crude price is trading at more than $75 per barrel, which is favorable for exploration and production activities. In its short-term energy outlook, the U.S. Energy Information Administration ("EIA") projected the average spot price of West Texas Intermediate crude at $77.68 per barrel this year, still a handsome price for upstream operations.Permian Oil Production to RiseIn March, total oil production from shale resources in the United States will likely increase by 20,000 barrels per day to 9,716 thousand barrels per day (MBbl/D), per EIA. The shale resources comprise Anadarko, Appalachia, Bakken, Eagle Ford, Haynesville, Niobrara and Permian.Of all the resources, Permian will witness the highest increase in daily oil production next month, according to the EIA's drilling productivity report. In the Permian, the EIA projects oil production to rise by 14,000 barrels per day to 6,085 MBbls/D next month.Permian Explorers in the SpotlightIt is crystal clear that a favorable crude pricing scenario is backing higher production volumes. Improving Permian production amid healthy oil prices raised the incentive to keep an eye on companies like Exxon Mobil Corp., Matador Resources Co. and Diamondback Energy, Inc., operating in the most prolific basin. All the stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.3 Stocks to GainExxonMobil has solid upstream businesses. In the Permian Basin, ExxonMobil has a solid pipeline of profitable projects. To strengthen its presence in the Permian further, ExxonMobil entered into a staggering $59.5 billion all-stock deal to buy Pioneer Natural Resources (PXD). This is because Pioneer Natural is one of the foremost oil producers operating in the Permian Basin. With the deal closure expected in the first half of 2024, Permian production of the integrated energy major will increase significantly.Diamondback Energy, a leading pure-play Permian operator, has reported ongoing enhancements in the average productivity per well in the Midland Basin. The exploration and production company is likely to continue witnessing increased production volumes. FANG also has an investment-grade balance sheet.Matador Resources has a strong presence in the oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. In the sub-basin of the broader Permian, the company has a vast inventory of drilling areas that will back the exploration and production company's production volumes.Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339https://www.zacks.comZacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportExxon Mobil Corporation (XOM) : Free Stock Analysis ReportArcher Daniels Midland Company (ADM) : Free Stock Analysis ReportThe Progressive Corporation (PGR) : Free Stock Analysis ReportDiamondback Energy, Inc. (FANG) : Free Stock Analysis ReportMatador Resources Company (MTDR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

The Progressive and Archer Daniels Midland have been highlighted as Zacks Bull and Bear of the Day

https://finance.yahoo.com/news/progressive-archer-daniels-midland-highlighted-135100405.html

9c8b5d01-3eb7-39c4-a66c-28a3da3d6f7a

PGR

Progressive Corp's robust market presence with a strong brand and diverse product offerings.Opportunities for growth in a dynamic insurance industry landscape.Challenges in managing operational complexities and competitive pressures.Strategic initiatives to leverage strengths and mitigate potential threats.Progressive Corp (NYSE:PGR), a leading insurance holding company, has released its annual 10-K filing on February 26, 2024. The company, known for its personal and commercial auto insurance, as well as specialty lines, boasts approximately 18 million personal auto policies in force. With a significant presence in the United States, Progressive Corp operates through a dual-channel strategy, marketing its policies via independent agencies and direct channels. The company's financial health, as indicated in the filing, shows a strong balance sheet with a market capitalization of $76,906.83 million as of June 30, 2023. Progressive Corp's commitment to innovation, customer service, and strategic growth initiatives positions it well in the competitive insurance landscape.Warning! GuruFocus has detected 8 Warning Signs with AES.Decoding Progressive Corp (PGR): A Strategic SWOT InsightStrengthsMarket Position and Brand Recognition: Progressive Corp's market position is a testament to its strong brand recognition and customer loyalty. The company's strategic marketing efforts have resulted in a brand that is synonymous with innovation and customer-centric services. Progressive's dual-channel distribution strategy has allowed it to capture a significant market share, catering to diverse customer preferences. The brand's advertising campaigns, featuring recognizable characters and messages, have contributed to its high visibility in the insurance market. This brand equity not only attracts new customers but also aids in customer retention, as evidenced by the company's substantial policyholder base.Financial Performance and Diverse Product Portfolio: Progressive Corp's financial performance is robust, with a market capitalization reflecting the confidence of investors. The company's diverse product portfolio, which includes personal and commercial auto insurance, homeowners insurance, and other specialty lines, provides a competitive edge. This diversification allows Progressive to mitigate risks associated with market fluctuations in any single insurance category. Furthermore, the company's entry into homeowners insurance through acquisition demonstrates its proactive approach to expanding its product offerings and tapping into new revenue streams.Story continuesWeaknessesOperational Complexity: As Progressive Corp grows and diversifies its offerings, managing operational complexity becomes a challenge. The company's reliance on third-party systems, including cloud computing environments, increases the risk of system failures or data breaches. Additionally, the complexity of insurance products and the need for continuous innovation can strain resources and potentially lead to inefficiencies. Progressive must navigate these complexities to maintain its competitive advantage and ensure the delivery of high-quality products and customer experiences.Dependence on Economic Conditions: The insurance industry is sensitive to economic conditions, and Progressive Corp is no exception. Factors such as unemployment rates and vehicle sales directly impact the demand for insurance products. A downturn in the economy could lead to a decrease in new policy sales and an increase in claim frequencies, adversely affecting the company's profitability. Progressive's performance is thus tied to economic cycles, which can be unpredictable and challenging to manage.OpportunitiesTechnological Advancements: The insurance industry is rapidly evolving with technological advancements, and Progressive Corp is well-positioned to capitalize on this trend. By investing in data analytics, artificial intelligence, and mobile platforms, Progressive can enhance its underwriting processes, improve customer engagement, and streamline claims handling. These technological investments can lead to cost savings, improved efficiency, and a more personalized customer experience, driving growth and competitive differentiation.Market Expansion: Progressive Corp has the opportunity to expand its market presence both geographically and through product innovation. The company's strong financial position enables it to explore strategic acquisitions, partnerships, and entry into new markets. By leveraging its brand and expertise, Progressive can attract new customer segments and increase its market share. Additionally, the development of new insurance products that cater to emerging risks, such as cyber insurance, can open up new revenue channels.ThreatsCompetitive Pressure: The insurance industry is highly competitive, with numerous players vying for market share. Progressive Corp faces competition from both traditional insurers and new entrants, including insurtech startups that may offer innovative products or lower prices. To maintain its competitive position, Progressive must continuously invest in marketing, technology, and product development, which can strain financial resources and impact profitability.Regulatory Changes: Insurance companies operate in a heavily regulated environment, and Progressive Corp is subject to various federal and state regulations. Changes in laws or regulations can have a significant impact on the company's operations, requiring adjustments to business practices and potentially leading to increased costs. Moreover, any non-compliance with regulatory requirements can result in fines, reputational damage, and legal challenges, posing a threat to Progressive's business.In conclusion, Progressive Corp (NYSE:PGR) exhibits a strong market position with a well-recognized brand and a diverse product portfolio, which are key strengths in the competitive insurance industry. However, the company must navigate operational complexities and remain vigilant to economic fluctuations that could impact its business. Opportunities for growth through technological innovation and market expansion present exciting prospects for Progressive. Nevertheless, the company must be strategic in addressing competitive pressures and regulatory changes that pose potential threats. Overall, Progressive's strategic initiatives and robust financial foundation position it to leverage its strengths and capitalize on opportunities while effectively managing its weaknesses and threats.This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.This article first appeared on GuruFocus.

GuruFocus.com

Decoding Progressive Corp (PGR): A Strategic SWOT Insight

https://finance.yahoo.com/news/decoding-progressive-corp-pgr-strategic-050421653.html

a4e00698-8959-3889-9c4e-e65e88c2c80a

PGR

The Zacks Property and Casualty Insurance (P&C) industry is likely to benefit from better pricing, prudent underwriting and exposure growth. Industry players like Berkshire Hathaway Inc. (BRK.B), The Progressive Corporation PGR, Chubb Limited CB, The Travelers Companies TRV and AXIS Capital Holdings AXS are poised to grow despite a rise in catastrophic activities. Given an active catastrophe environment, the policy renewal rate should accelerate. Also, the increasing adoption of technology and the emergence of insurtech will help the industry players function smoothly.Though the industry is witnessing an increase in premium pricing, the magnitude has decreased in the last 12 quarters. Nonetheless, an improvement in surplus and accelerated economic activities set the stage for a better M&A environment. Per a report in Carrier Management, AM Best expects profitable commercial lines and improving personal lines, coupled with higher investment returns on increased yields and strong cash flow, to drive the industry’s performance in 2024.About the IndustryThe Zacks Property and Casualty Insurance industry comprises companies that provide commercial and personal property insurance, and casualty insurance products and services. Such insurance helps to safeguard property in case of any natural or man-made disasters. Liability coverages are also provided by some industry players. The insurance coverage offered also includes automobiles, professional risk, marine, excess casualty, aviation, personal accident, commercial multi-peril, and professional indemnity and surety. Premiums are the primary source of revenues. Better pricing and increased exposure drive premiums.  These companies invest a portion of premiums to meet their commitments to policyholders. The Fed made four hikes in 2023, taking the tally to 11 since March 2022. An improving rate environment is a boon for insurers, especially long-tail insurers.4 Trends Shaping the Future of the Property and Casualty Insurance IndustryImproved pricing to help navigate claims: Catastrophes are a concern for insurers due to the high degree of losses incurred. Insurers implement price hikes to ensure uninterrupted claims payment. Global commercial insurance prices rose for 25 straight quarters, per Marsh Global Insurance Market Index. Better pricing will help insurers write higher premiums and address claims payment prudently. Per Fitch Ratings, personal auto is likely to deliver better performance in 2024. This, coupled with better investment results and lower claims, should fuel insurers' performance per Fitch Ratings.  Per Deloitte Insights, gross premiums are estimated to increase sixfold to $722 billion by 2030. Analysts at Swiss Re Institute predict premiums to grow 5.5% in 2024.Catastrophe loss induces volatility in underwriting profits: The P&C insurance industry is susceptible to catastrophe events, which drag down underwriting profits.  Per reports in Aon, total economic losses were $380 billion in 2023, while insured losses were $118 million. According to AM Best, total net underwriting loss was $38 billion in 2023, a 10-year high, largely attributable to weather-related losses, high inflation as well as reinsurance pricing pressure. The combined ratio was 103.7 for the same time frame per the credit rating giant, to which catastrophe losses added 780 basis points. The credit rating giant also estimates cat loss to contribute 680 basis points to the expected combined ratio of 100.7 in 2024. Underwriting losses are expected to be primarily due to soft performance in personal lines, which are expected to witness higher catastrophe losses per Insurance Information Institute and Milliman. However, exposure growth, better pricing, prudent underwriting and favorable reserve development will help withstand the blow. Also, frequent occurrences of natural disasters should accelerate the policy renewal rate.Merger and acquisitions: Consolidation in the property and casualty industry is likely to continue as players look to diversify their operations into new business lines and geography. Buying businesses along the same lines will also continue as players look to gain market share and grow in their niche areas. With a sturdy capital level, the industry is witnessing a number of mergers, acquisitions and consolidations. Deloitte estimates more mergers and acquisitions in the reinsurance space in 2024.Increased adoption of technology: The industry is witnessing increased use of technology like blockchain, artificial intelligence, advanced analytics, telematics, cloud computing and robotic process automation that expedite business operations and save costs. The industry has also witnessed the emergence of insurtech — technology-led insurers — which creates competition for incumbent players.  Insurers continue to invest heavily in technology to improve scale and efficiencies. However, with insurtechs using the latest technologies and concepts that the incumbents are just beginning to experiment with, there remains a huge market risk. The use of technology also poses cyber threats.Story continuesZacks Industry Rank Indicates Bright ProspectsThe group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates rosy prospects in the near term. The Zacks Property and Casualty Insurance industry, which is housed within the broader Zacks Finance sector, currently carries a Zacks Industry Rank #34, which places it in the top 13% of more than 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Earnings estimates have increased 0.8% in a year.Before we present a few property and casualty stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.Industry Outperforms S&P 500 and SectorThe Property and Casualty Insurance industry has outperformed both the Zacks S&P 500 composite as well as its sector over the past year. The stocks in this industry have collectively risen 26.6% in a year compared with the Finance sector and the Zacks S&P 500 composite’s increases of 17.1% and 25.7%, respectively.One-Year Price PerformanceCurrent ValuationOn the basis of the trailing 12-month price-to-book (P/B), which is commonly used for valuing insurance stocks, the industry is currently trading at 1.44X compared with the S&P 500’s 6.25X and the sector’s 3.51X.Over the past five years, the industry has traded as high as 1.55X, as low as 0.97X and at the median of 1.39X.Price-to-Book (P/B) Ratio (TTM)Price-to-Book (P/B) Ratio (TTM)5 Property and Casualty Insurance Stocks to Add to Your PortfolioWe are recommending two Zacks Rank #1 (Strong Buy) stocks and three Zacks Rank #2 (Buy) stocks from the P&C Insurance industry. You can see the complete list of today’s Zacks #1 Rank stocks here. The Progressive Corporation: Based in Mayfield Village, OH, Progressive is one of the major auto insurers in the country. Better pricing, a compelling portfolio, leadership position, strength in Vehicle and Property businesses, healthy policies in force, retention and solid capital position poise this Zacks Rank #1 insurer well for growth.The Zacks Consensus Estimate for PGR’s 2024 and 2025 earnings suggests 50.7% and 14.1%, year-over-year growth respectively. The consensus estimate for 2024 and 2025 has moved up 4.1% and 0.3%, respectively, in the past seven days. The expected long-term earnings growth rate is pegged at 21.7%, better than the industry average of 11.9%.Price and Consensus: PGRAXIS Capital Holdings Limited: Bermuda-based AXIS Capital provides a broad range of specialty insurance and reinsurance solutions on a worldwide basis. Its compelling and diversified product portfolio, underwriting excellence, digital capabilities and solid capital position poise this Zacks Rank #1 insurer well for growth. This insurer boasts one of the highest dividend yields among its peers and has raised its dividend for 18 consecutive years.The Zacks Consensus Estimate for AXIS Capital’s 2024 and 2025 earnings suggests 3.1% and 10.1% respective year-over-year growth. The consensus estimate for 2024 and 2025 has moved up 0.1% and 10.9%, respectively, in the past 30 days. AXIS Capital’s earnings surpassed estimates in each of the last four quarters, the average surprise being 102.57%. The expected long-term earnings growth rate is pegged at 5%.Price and Consensus: AXSBerkshire Hathaway: Omaha, NE-based Berkshire Hathaway owns more than 90 subsidiaries in insurance, railroads, utilities, manufacturing services, retail and homebuilding. BRK.B is one of the largest property and casualty insurance companies measured by premium volume. BRK.B, carrying a Zacks Rank #2, should continue to benefit from its growing Insurance business as well as Manufacturing, Service and Retailing, and Finance and Financial Products segments. Continued insurance business growth fuels an increase in float, drives earnings and generates maximum return on equity. With Warren Buffett at its helm, Berkshire continues to create tremendous value for shareholders.The Zacks Consensus Estimate for 2024 and 2025 bottom line suggests a year-over-year increase of 7.7% and 15.3%, respectively. The consensus estimate for 2024 has moved up 1.8% in the past 30 days. The expected long-term earnings growth rate is 7%.Price and Consensus: BRK.BThe Travelers Companies: Based in New York, this Zacks Rank #2 insurer provides a wide variety of property and casualty insurance and surety products and services to businesses, organizations and individuals in the United States. and select international markets. Strong renewal rate change, retention, increase in new business supported by a compelling portfolio and a solid capital position poise TRV well for growth. The company raised its dividend for the 19th consecutive year at a compound annual growth rate of 8% over that period.  The Zacks Consensus Estimate for 2024 and 2025 earnings has moved 0.4% and 0.1% north respectively in the past 30 days.  The consensus estimate for 2024 and 2025 earnings indicates a year-over-year improvement of 34.7% and 13.8%, respectively. The expected long-term earnings growth rate is 11.5%.Price and Consensus: TRVChubb: Based in Zurich, Switzerland, Chubb is one of the world’s largest providers of P&C insurance and reinsurance. It has diversified through acquisitions into many specialty lines and also provides specialized insurance products. This Zacks Rank #2 insurer is poised to benefit from its focus on capitalizing on the potential of middle-market businesses and strategic initiatives, which pave the way for long-term growth. Chubb has hiked dividends for the last 30 straight years.The Zacks Consensus Estimate for 2025 bottom line has moved 3 cents north in the past 30 days. The Zacks Consensus Estimate for 2025 earnings indicates an improvement of 10.5% year over year. The expected long-term earnings growth rate is 10%.Price and Consensus: CBWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportBerkshire Hathaway Inc. (BRK.B) : Free Stock Analysis ReportThe Travelers Companies, Inc. (TRV) : Free Stock Analysis ReportChubb Limited (CB) : Free Stock Analysis ReportAxis Capital Holdings Limited (AXS) : Free Stock Analysis ReportThe Progressive Corporation (PGR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

5 Property & Casualty Insurers to Buy as Pricing Improves

https://finance.yahoo.com/news/5-property-casualty-insurers-buy-133200977.html

019d7fee-3f82-3b2d-95c4-dfeb27d51802

PGR

For Immediate ReleaseChicago, IL – March 11, 2024 – Today, Zacks Equity Research discusses Berkshire Hathaway Inc.(BRK.B), The Progressive Corp. PGR, Chubb Limited CB, The Travelers Companies TRV and AXIS Capital Holdings AXS.Industry: Property & Casualty InsuranceLink: https://www.zacks.com/commentary/2237817/5-property-casualty-insurers-to-buy-as-pricing-improvesThe Zacks Property and Casualty Insurance (P&C) industry is likely to benefit from better pricing, prudent underwriting and exposure growth. Industry players like Berkshire Hathaway Inc., The Progressive Corp., Chubb Limited, The Travelers Companies and AXIS Capital Holdings are poised to grow despite a rise in catastrophic activities. Given an active catastrophe environment, the policy renewal rate should accelerate. Also, the increasing adoption of technology and the emergence of insurtech will help the industry players function smoothly.Though the industry is witnessing an increase in premium pricing, the magnitude has decreased in the last 12 quarters. Nonetheless, an improvement in surplus and accelerated economic activities set the stage for a better M&A environment. Per a report in Carrier Management, AM Best expects profitable commercial lines and improving personal lines, coupled with higher investment returns on increased yields and strong cash flow, to drive the industry's performance in 2024.About the IndustryThe Zacks Property and Casualty Insurance industry comprises companies that provide commercial and personal property insurance, and casualty insurance products and services. Such insurance helps to safeguard property in case of any natural or man-made disasters. Liability coverages are also provided by some industry players. The insurance coverage offered also includes automobiles, professional risk, marine, excess casualty, aviation, personal accident, commercial multi-peril, and professional indemnity and surety.Story continuesPremiums are the primary source of revenues. Better pricing and increased exposure drive premiums. These companies invest a portion of premiums to meet their commitments to policyholders. The Fed made four hikes in 2023, taking the tally to 11 since March 2022. An improving rate environment is a boon for insurers, especially long-tail insurers.4 Trends Shaping the Future of the Property and Casualty Insurance IndustryImproved pricing to help navigate claims: Catastrophes are a concern for insurers due to the high degree of losses incurred. Insurers implement price hikes to ensure uninterrupted claims payment. Global commercial insurance prices rose for 25 straight quarters, per Marsh Global Insurance Market Index. Better pricing will help insurers write higher premiums and address claims payment prudently.Per Fitch Ratings, personal auto is likely to deliver better performance in 2024. This, coupled with better investment results and lower claims, should fuel insurers' performance per Fitch Ratings. Per Deloitte Insights, gross premiums are estimated to increase sixfold to $722 billion by 2030. Analysts at Swiss Re Institute predict premiums to grow 5.5% in 2024.Catastrophe loss induces volatility in underwriting profits: The P&C insurance industry is susceptible to catastrophe events, which drag down underwriting profits. Per reports in Aon, total economic losses were $380 billion in 2023, while insured losses were $118 million. According to AM Best, total net underwriting loss was $38 billion in 2023, a 10-year high, largely attributable to weather-related losses, high inflation as well as reinsurance pricing pressure.The combined ratio was 103.7 for the same time frame per the credit rating giant, to which catastrophe losses added 780 basis points. The credit rating giant also estimates cat loss to contribute 680 basis points to the expected combined ratio of 100.7 in 2024. Underwriting losses are expected to be primarily due to soft performance in personal lines, which are expected to witness higher catastrophe losses per Insurance Information Institute and Milliman.However, exposure growth, better pricing, prudent underwriting and favorable reserve development will help withstand the blow. Also, frequent occurrences of natural disasters should accelerate the policy renewal rate.Merger and acquisitions: Consolidation in the property and casualty industry is likely to continue as players look to diversify their operations into new business lines and geography. Buying businesses along the same lines will also continue as players look to gain market share and grow in their niche areas. With a sturdy capital level, the industry is witnessing a number of mergers, acquisitions and consolidations. Deloitte estimates more mergers and acquisitions in the reinsurance space in 2024.Increased adoption of technology: The industry is witnessing increased use of technology like blockchain, artificial intelligence, advanced analytics, telematics, cloud computing and robotic process automation that expedite business operations and save costs. The industry has also witnessed the emergence of insurtech — technology-led insurers — which creates competition for incumbent players. Insurers continue to invest heavily in technology to improve scale and efficiencies. However, with insurtechs using the latest technologies and concepts that the incumbents are just beginning to experiment with, there remains a huge market risk. The use of technology also poses cyber threats.Zacks Industry Rank Indicates Bright ProspectsThe group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates rosy prospects in the near term. The Zacks Property and Casualty Insurance industry, which is housed within the broader Zacks Finance sector, currently carries a Zacks Industry Rank #34, which places it in the top 13% of more than 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.The industry's positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Earnings estimates have increased 0.8% in a year.Before we present a few property and casualty stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock-market performance and valuation picture.Industry Outperforms S&P 500 and SectorThe Property and Casualty Insurance industry has outperformed both the Zacks S&P 500 composite as well as its sector over the past year. The stocks in this industry have collectively risen 26.6% in a year compared with the Finance sector and the Zacks S&P 500 composite's increases of 17.1% and 25.7%, respectively.Current ValuationOn the basis of the trailing 12-month price-to-book (P/B), which is commonly used for valuing insurance stocks, the industry is currently trading at 1.44X compared with the S&P 500's 6.25X and the sector's 3.51X.Over the past five years, the industry has traded as high as 1.55X, as low as 0.97X and at the median of 1.39X.5 Property and Casualty Insurance Stocks to Add to Your PortfolioWe are recommending two Zacks Rank #1 (Strong Buy) stocks and three Zacks Rank #2 (Buy) stocks from the P&C Insurance industry. You can see the complete list of today's Zacks #1 Rank stocks here.The Progressive Corporation: Based in Mayfield Village, OH, Progressive is one of the major auto insurers in the country. Better pricing, a compelling portfolio, leadership position, strength in Vehicle and Property businesses, healthy policies in force, retention and solid capital position poise this Zacks Rank #1 insurer well for growth.The Zacks Consensus Estimate for PGR's 2024 and 2025 earnings suggests 50.7% and 14.1%, year-over-year growth respectively. The consensus estimate for 2024 and 2025 has moved up 4.1% and 0.3%, respectively, in the past seven days. The expected long-term earnings growth rate is pegged at 21.7%, better than the industry average of 11.9%.AXIS Capital Holdings Ltd.: Bermuda-based AXIS Capital provides a broad range of specialty insurance and reinsurance solutions on a worldwide basis. Its compelling and diversified product portfolio, underwriting excellence, digital capabilities and solid capital position poise this Zacks Rank #1 insurer well for growth. This insurer boasts one of the highest dividend yields among its peers and has raised its dividend for 18 consecutive years.The Zacks Consensus Estimate for AXIS Capital's 2024 and 2025 earnings suggests 3.1% and 10.1% respective year-over-year growth. The consensus estimate for 2024 and 2025 has moved up 0.1% and 10.9%, respectively, in the past 30 days. AXIS Capital's earnings surpassed estimates in each of the last four quarters, the average surprise being 102.57%. The expected long-term earnings growth rate is pegged at 5%.Berkshire Hathaway: Omaha, NE-based Berkshire Hathaway owns more than 90 subsidiaries in insurance, railroads, utilities, manufacturing services, retail and homebuilding. BRK.B is one of the largest property and casualty insurance companies measured by premium volume. BRK.B, carrying a Zacks Rank #2, should continue to benefit from its growing Insurance business as well as Manufacturing, Service and Retailing, and Finance and Financial Products segments. Continued insurance business growth fuels an increase in float, drives earnings and generates maximum return on equity. With Warren Buffett at its helm, Berkshire continues to create tremendous value for shareholders.The Zacks Consensus Estimate for 2024 and 2025 bottom line suggests a year-over-year increase of 7.7% and 15.3%, respectively. The consensus estimate for 2024 has moved up 1.8% in the past 30 days. The expected long-term earnings growth rate is 7%.The Travelers Companies: Based in New York, this Zacks Rank #2 insurer provides a wide variety of property and casualty insurance and surety products and services to businesses, organizations and individuals in the United States. and select international markets. Strong renewal rate change, retention, increase in new business supported by a compelling portfolio and a solid capital position poise TRV well for growth. The company raised its dividend for the 19th consecutive year at a compound annual growth rate of 8% over that period.The Zacks Consensus Estimate for 2024 and 2025 earnings has moved 0.4% and 0.1% north respectively in the past 30 days. The consensus estimate for 2024 and 2025 earnings indicates a year-over-year improvement of 34.7% and 13.8%, respectively. The expected long-term earnings growth rate is 11.5%.Chubb: Based in Zurich, Switzerland, Chubb is one of the world's largest providers of P&C insurance and reinsurance. It has diversified through acquisitions into many specialty lines and also provides specialized insurance products. This Zacks Rank #2 insurer is poised to benefit from its focus on capitalizing on the potential of middle-market businesses and strategic initiatives, which pave the way for long-term growth. Chubb has hiked dividends for the last 30 straight years.The Zacks Consensus Estimate for 2025 bottom line has moved 3 cents north in the past 30 days. The Zacks Consensus Estimate for 2025 earnings indicates an improvement of 10.5% year over year. The expected long-term earnings growth rate is 10%.Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Media ContactZacks Investment Research800-767-3771 ext. [email protected]://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportThe Travelers Companies, Inc. (TRV) : Free Stock Analysis ReportChubb Limited (CB) : Free Stock Analysis ReportBerkshire Hathaway Inc. (BRK.B) : Free Stock Analysis ReportAxis Capital Holdings Limited (AXS) : Free Stock Analysis ReportThe Progressive Corporation (PGR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Zacks Industry Outlook Highlights Berkshire Hathaway, The Progressive, Chubb, The Travelers Companies and AXIS Capital Holdings

https://finance.yahoo.com/news/zacks-industry-outlook-highlights-berkshire-134000914.html

f5028f5d-ec8a-3351-9567-736fb3fa2d05

PH

Roper Technologies, Inc. ROP has been benefiting from strength across each of its segments. Its Application Software segment is gaining from solid momentum in its Deltek, Vertafore, Strata, Frontline and Aderant businesses. Continued SaaS strength, sustained momentum in the SMB channel and private sector solutions are aiding its Deltek business. The acquisition of Replicon (August 2023) has been supporting Deltek’s growth by boosting its SaaS solutions portfolio.Growing adoption and cross-selling of SaaS solutions, and continued GenAI innovation are key catalysts to Aderant’s growth. The Strata business is gaining from its leading decision support and financial planning solutions. The acquisitions of MGA systems and Syntellis, and strength across core P&C business are fueling growth of Vertafore. Strong customer renewal season is aiding the Frontline business. For 2024, the company expects total revenues to increase 11-12% year over year. Organic revenues are estimated to increase 5-6%.Roper is steadily strengthening its business through acquisitions. In August 2023, the company acquired cloud-based performance management and data solutions provider, Syntellis Performance Solutions. Also, in October 2022, it acquired Frontline Education for $3.7 billion. The acquisition builds on Roper’s Horizon software business, expanding its presence in the K-12 education market. Acquisitions boosted sales by 4% in the fourth quarter.ROP remains committed on rewarding its shareholders through dividend payouts and share buybacks. In 2023, it rewarded its shareholders with a dividend payment of $262.3 million, up 11% year over year. In November 2023, the company hiked its dividend by 10%. Zacks Investment ResearchImage Source: Zacks Investment Research In the past month, this Zacks Rank #3 (Hold) company's stock has gained 1.4% against the industry’s 1% decline.However, escalating costs and expenses have been a concern for ROP over time. In 2023, the cost of sales increased 15.5% year over year while selling, general and administrative expenses climbed 15%. Escalating costs, if not controlled, may impede the company’s bottom line.Given Roper’s extensive presence across international markets, its operations are subject to risks associated with unfavorable movement in foreign currencies and geopolitical issues. In 2023, movement in foreign currency translation adversely impacted revenue growth by 0.1%.Story continuesKey PicksWe have highlighted three better-ranked stocks, namely Nordson Corporation NDSN, Parker-Hannifin Corporation PH and Ingersoll-Rand plc IR, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Nordson delivered a trailing four-quarter average earnings surprise of 5.2%. In the past 60 days, the Zacks Consensus Estimate for NDSN’s 2024 earnings has increased 1.1%.Parker-Hannifin delivered a trailing four-quarter average earnings surprise of 14.4%. In the past 60 days, the Zacks Consensus Estimate for PH’s 2024 earnings has increased 2.6%.Ingersoll-Rand delivered a trailing four-quarter average earnings surprise of 15.9%. In the past 60 days, the Zacks Consensus Estimate for IR’s 2024 earnings has increased 1.6%.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportParker-Hannifin Corporation (PH) : Free Stock Analysis ReportRoper Technologies, Inc. (ROP) : Free Stock Analysis ReportIngersoll Rand Inc. (IR) : Free Stock Analysis ReportNordson Corporation (NDSN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Roper (ROP) Benefits From Business Strength Despite Risks

https://finance.yahoo.com/news/roper-rop-benefits-business-strength-171400375.html

50baba1e-2653-34ea-aeeb-58a9b03b0b9e

PH

Illinois Tool Works Inc. ITW has been benefiting from stable demand environment and improving supply chains. Strong market share and penetration gains in the rapidly growing electric vehicle markets are boosting revenues in the Automotive Original Equipment Manufacturer segment. The company’s Food Equipment segment is being aided by growth in the institutional, retail and service end markets. Driven by strength across its businesses, the company expects organic revenues to increase 1-3% and total revenues to rise 2-4% from the year-ago reported figure.The company’s focus on cost management and enterprise initiatives are supporting its margin performance. For instance, its cost of sales declined 1.2% year over year in 2023. Also, in the year, the operating margin of 25.1% increased 130 basis points due to the contribution of enterprise initiatives. Management expects the operating margin in the range of 25.5–26.5% for 2024 compared with 25.1% in 2023. Enterprise initiatives are expected to contribute 100 basis points to the operating margin in 2024.ITW remains committed on rewarding its shareholders through dividend payouts and share buybacks. In 2023, the company paid dividends worth $1.6 billion and repurchased shares worth $1.5 billion. Also, in August 2023, it hiked its dividend by 7%. Simultaneously, the company’s board approved a new $5 billion buyback program. In 2024, Illinois Tool expects to repurchase $1.5 billion worth of shares.Zacks Investment ResearchImage Source: Zacks Investment ResearchIn the past three months, the Zacks Rank #3 (Hold) company has gained 7.6% compared with the industry’s 17.8% growth.However, the company has been experiencing softness in the semiconductor, equipment and consumables end markets, of late. Also, weakness in the consumables business has been affecting its Specialty Products segment. Softness in the housing market has been weighing on the Construction Products segment, revenues from which declined 5.4% year over year in the fourth quarter of 2023.Also, weak liquidity position remains concerning for Illinois Tool. Exiting the fourth quarter, its cash and cash equivalents were $1.1 billion, lower than the short-term debt of $1.8 billion.Story continuesKey PicksWe have highlighted three better-ranked stocks from the same space, namely Nordson Corporation NDSN, Parker-Hannifin Corporation PH and Ingersoll-Rand plc IR, each currently carrying a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Nordson delivered a trailing four-quarter average earnings surprise of 5.2%. In the past 60 days, the Zacks Consensus Estimate for NDSN’s 2024 earnings has increased 1.1%.Parker-Hannifin delivered a trailing four-quarter average earnings surprise of 14.4%. In the past 60 days, the Zacks Consensus Estimate for PH’s 2024 earnings has increased 2.6%.Ingersoll-Rand delivered a trailing four-quarter average earnings surprise of 15.9%. In the past 60 days, the Zacks Consensus Estimate for IR’s 2024 earnings has increased 3.6%.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportIllinois Tool Works Inc. (ITW) : Free Stock Analysis ReportParker-Hannifin Corporation (PH) : Free Stock Analysis ReportIngersoll Rand Inc. (IR) : Free Stock Analysis ReportNordson Corporation (NDSN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Illinois Tool (ITW) Gains From Business Strength, Risks Remain

https://finance.yahoo.com/news/illinois-tool-itw-gains-business-120300394.html

56e261e3-bf22-32b9-8b54-b9c0cb92c863

PH

In this piece, we will take a look at the 12 best hot stocks to buy for March. If you want to skip our overview of the latest stock market news, then you can take a look at the 5 Best Hot Stocks to Buy For March. The stock market of 2024 is dominated by one key theme. If you haven't been following us regularly, then you'd have missed out on the fact that artificial intelligence, powered by the shares of NVIDIA Corporation (NASDAQ:NVDA) remains the key factor on investors' minds when they look at major indexes such as the S&P 500 and the tech focused NASDAQ Composite. No one can blame them for this either, as after inflation and interest rates set records, 2024 has also been a record setting year for the stock market.The artificial intelligence fueled mania, exacerbated by the earnings season in January that confirmed to investors that the demand for AI products was real and not just hype has pushed the S&P 500 index to cross the coveted 5,000 point mark for the first time in history. This comes after the NASDAQ's record setting spree last year and follows the second half of 2023 that had seen investors wonder whether the soaring S&P 500 in H1 2023 would continue its upward trajectory in the second half.This surge in the stock market, even as the Federal Reserve remains worried about inflation, has made NVIDIA one of the most valuable companies in the world and made it surpass the market volumes big ticket mega cap names the likes of Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOG). The two are worth $1.8 trillion and $1.7 trillion, respectively, while NVIDIA's 64% rise year to date fueled by the firm's latest earnings release means that its latest market capitalization now sits at $1.97 trillion with trailing and forward price to earnings ratios of 66 and 33, respectively.Yet, even though NVIDIA's shares take off and have no signs of looking back, the broader macroeconomic trends that shaped the stock market discourse in 2022 and 2023 are nevertheless still in play. Interest rates are still too high to be considered easy for business, and most investors expect that the first cuts will come in June - a percentage that increases for a July cut. The last week of February is also quite important because of the data that will become available. This will come in the form of the Personal Consumption Expenditure (PCE) index reading for January. The PCE is one of the most important data to judge the Fed's future actions since it is the central bank's preferred inflation metric. If officials believe that inflation is on a sufficiently downward trend to not raise its head again after an interest rate cut, then rates might start dropping before June. Should investors also read this conclusion, then the stock market should do well after the PCE data for January 2024.Story continuesBefore we move forward to our latest collection of the best hot stocks to buy though, a recent report from the famed investment bank The Goldman Sachs Group, Inc. (NYSE:GS) merits a mention. Goldman was one of the few voices on Wall Street that bucked the trend in late 2022 and argued that avoiding a recession might be avoidable despite rapid central bank interest rate hikes. Now, the bank shares that during the week that ended on February 2023, hedge funds sold technology stocks at some of the highest rates for the past five years. It believes that software stocks were among the biggest losers, while bullish bets such as call options for NVIDIA's shares remain in play and suggest a hesitancy to completely go against technology stocks.So, with Q1 2024 shaping up to be quite interesting, we decided to take a look at some hot stocks to buy. A couple of these are NVIDIA Corporation (NASDAQ:NVDA), Meta Platforms, Inc. (NASDAQ:META), and Uber Technologies, Inc. (NYSE:UBER).12 Best Hot Stocks to Buy For MarchPixabay/Public DomainOur MethodologyTo make our list of the best hot stocks to buy for March, we ranked the 50 best performing stocks of the S&P 500 over the past 30 days by the number of hedge funds that had bought the shares as of Q4 2023 end. Out of these, the top 12 stocks were chosen.For these best hot stocks for March, we hedge fund sentiment. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.12 Best Hot Stocks to Buy For March12. Parker-Hannifin Corporation (NYSE:PH)Number of Q4 2023 Hedge Fund Shareholders: 63 One Month Share Price Appreciation: 11.40% Parker-Hannifin Corporation (NYSE:PH) is an American industrial equipment company headquartered in Cleveland, Ohio. It marks a strong start to our list of the best hot stocks as the firm has beaten analyst EPS estimates in all four of its latest quarters.For their fourth quarter of 2023 shareholdings, 63 out of the 933 hedge funds part of Insider Monkey's database had held a stake in Parker-Hannifin Corporation (NYSE:PH). Ric Dillon's Diamond Hill Capital was the firm's biggest hedge fund investor due to its $450 million investment.Along with Meta Platforms, Inc. (NASDAQ:META), NVIDIA Corporation (NASDAQ:NVDA), and Uber Technologies, Inc. (NYSE:UBER), Parker-Hannifin Corporation (NYSE:PH) is a hot stock that hedge funds are buying.11. Eaton Corporation plc (NYSE:ETN)Number of Q4 2023 Hedge Fund Shareholders: 63 One Month Share Price Appreciation: 14.31% Eaton Corporation plc (NYSE:ETN) is another industrial products company that sells power management equipment, emergency handling products, and other systems. The shares are rated Buy on average, and the average analyst share price target is $278.During 2023's December quarter, 63 out of the 933 hedge funds tracked by Insider Monkey were the firm's investors. Eaton Corporation plc (NYSE:ETN)'s largest stakeholder among these is Philippe Laffont's Coatue Management as it owns $960 million worth of shares.10. American Express Company (NYSE:AXP)Number of Q4 2023 Hedge Fund Shareholders: 64 One Month Share Price Appreciation: 8.02% American Express Company (NYSE:AXP) is an iconic American firm known for its credit cards and travel services. The fact that it's a great hot stock to buy for March is clear from its 12 month performance which has seen the shares rise by 25%.Insider Monkey dug through 933 hedge fund portfolios for last year's fourth quarter and found that 64 had bought American Express Company (NYSE:AXP)'s shares. None other than Warren Buffett's Berkshire Hathaway was the biggest investor as it owned 151 million shares that were worth $28.4 billion.9. Applied Materials, Inc. (NASDAQ:AMAT)Number of Q4 2023 Hedge Fund Shareholders: 70 One Month Share Price Appreciation: 20.82% Applied Materials, Inc. (NASDAQ:AMAT) is a backend semiconductor equipment company whose products enable chip designers and makers to design and test their products. A key stock for the AI era, Applied Materials, Inc. (NASDAQ:AMAT) made a big announcement in February 2024 that saw it share a new portfolio of products designed to help chip makers in making advanced and leading edge semiconductors with feature sizes smaller than 2-nanometer.As of December 2023 end, 70 out of the 933 hedge funds profiled by Insider Monkey were the firm's investors. Applied Materials, Inc. (NASDAQ:AMAT)'s largest hedge fund shareholder is David Blood and Al Gore's Generation Investment Management due to its $1.1 billion stake.8. The Cigna Group (NYSE:CI)Number of Q4 2023 Hedge Fund Shareholders: 76 One Month Share Price Appreciation: 14.53% The Cigna Group (NYSE:CI) is an American healthcare plans and benefits management company headquartered in Bloomfield, Connecticut. Its investors were in for some great news in February 2024 when the firm announced a new $3.2 billion accelerated stock buyback.During 2023's fourth quarter, 76 out of the 933 hedge funds covered by Insider Monkey owned The Cigna Group (NYSE:CI)'s shares. Larry Robbins's Glenview Capital was the biggest investor through its $641 million investment.7. General Motors Company (NYSE:GM)Number of Q4 2023 Hedge Fund Shareholders: 83 One Month Share Price Appreciation: 12.43% General Motors Company (NYSE:GM) is an American car manufacturer that is one of the biggest of its kind in the country. Even though the electric vehicle industry is struggling as of late due to demand slowdown, this hasn't stopped General Motors Company (NYSE:GM) from expanding its global EV presence as it announced in February 2024 that its Cadillac Lyriq EV will be available in France.For their December quarter of 2023 investments, 83 out of the 933 hedge funds polled by Insider Monkey had invested in General Motors Company (NYSE:GM).6. The Walt Disney Company (NYSE:DIS)Number of Q4 2023 Hedge Fund Shareholders: 89 One Month Share Price Appreciation: 10.45% The Walt Disney Company (NYSE:DIS) is the globally well known media, hospitality, and entertainment giant. These days, as the stock market continues to soar on the back of AI, the firm is in the crosshairs of activist investor Blackwells Capital who argues that The Walt Disney Company (NYSE:DIS) is not fully leveraging AI in its business.89 out of the 933 hedge funds part of Insider Monkey's Q4 2023 database had bought the firm's shares. The Walt Disney Company (NYSE:DIS)'s largest stakeholder among these was Nelson Peltz's Trian Partners as it owned $2.9 billion worth of shares.NVIDIA Corporation (NASDAQ:NVDA), The Walt Disney Company (NYSE:DIS)Meta Platforms, Inc. (NASDAQ:META), and Uber Technologies, Inc. (NYSE:UBER) are some top hedge fund stocks with noticeable share price performance.Click here to continue reading and check out 5 Best Hot Stocks to Buy For March. Suggested articles:10 Stocks That Will Make You Rich In 202430 Countries With Extreme Poverty14 Best S&P 500 Dividend Stocks To Invest In 2024Disclosure: None. 12 Best Hot Stocks to Buy For March is originally published on Insider Monkey.

Insider Monkey

12 Best Hot Stocks to Buy For March

https://finance.yahoo.com/news/12-best-hot-stocks-buy-141313015.html

740b6110-6ed0-3784-8524-458d90677a25

PH

U.S. stock markets have maintained their northward journey in 2024 after an astonishing rally in 2023. The bull run has gained further thrust as major stock indexes have posted multiple all-time highs on both intraday and closing basis so far this year. Year to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have advanced 2.7%, 8% and 8.9%.However, the major driver of last year’s and this year’s rally was globally booming artificial intelligence (AI), especially generative AI. Companies that have extensive application of AI in their final products have become multi-baggers in the past 15 months. Stock prices of some of these companies have skyrocketed 200-300% during this period.These highly overvalued stocks make a large section of financial researchers and analysts skeptical of investing, although the near-term business outlook of these entities remains solid. The current overstretched valuation of these stocks makes them less attractive in the investing arena.Meanwhile, several old economy stocks from sectors such as industrials, finance, auto, materials and consumer defensive have popped year to date. Investing in these untapped stocks with a favorable Zacks Rank should lead to profits.Our Top PicksWe have narrowed our search to five old economy stocks that have provided double-digit returns year to date and have more upside left. These stocks have seen positive earnings estimate revisions in the last 30 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The chart below shows the price performance of our five picks year to date.Zacks Investment ResearchImage Source: Zacks Investment ResearchAmerican Express Co. AXP has benefited from growth initiatives, such as launching new products, reaching new agreements and forging alliances. Consumer spending on T&E, which carries higher margins for AXP, is advancing well. AXP’s balance sheet looks strong with ample cash. Solid cash-generation abilities enable the pursuit of business investments and prudent deployment of capital via buybacks and dividends.Story continuesAmerican Express has an expected revenue and earnings growth rate of 9.4% and 14.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 30 days. The stock price of AXP has jumped 19.3% year to date.The Travelers Companies Inc. TRV boasts a strong market presence in auto, homeowners’ insurance and commercial U.S. property-casualty insurance with solid inorganic growth. A high retention rate, a rise in new business and positive renewal premium change bode well.TRV’s commercial businesses should perform well owing to market stability. TRV remains optimistic about the personal line of business, given growth at profitable agencies like auto and homeowners businesses. Strong and reliable returns from the growing fixed-income portfolio should drive net investment income. Sufficient capital boosts shareholder value. TRV aims for a mid-teens core return on equity over time.The Travelers Companies has an expected revenue and earnings growth rate of 11.8% and 34.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the last 30 days. The stock price of TRV has rallied 14.7% year to date.Parker-Hannifin Corp. PH is benefiting from higher demand from distributors and end users across the oil and gas, material handling, cars and light trucks, and farm and agriculture markets in the North American region within the Diversified Industrial segment.Higher volume across all businesses, especially the commercial and military aftermarket businesses bolstered PH’s Aerospace Systems unit. Synergies from the Meggitt buyout are also aiding PH. Benefits from the Win strategy are driving PH’s margins.Parker-Hannifin has an expected revenue and earnings growth rate of 4.5% and 11.7%, respectively, for the current year (ending June 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the last seven days. The stock price of TRV has climbed 16.7% year to date.General Motors Co.’s GM compelling electric vehicle (EV) and internal combustion engine portfolio, displaying strong demand for its quality pickups and SUVs, bodes well. GM retained the U.S. auto sales crown in 2023. Its massive EV push is commendable.GM plans to roll out 30 fresh EV models by 2025-end. General Motors’ Ultium Drive system and battery plants in Ohio, Tennessee and Lansing are likely to scale up its e-mobility prowess. GM is on track to deliver on its $2 billion net cost reduction program by 2024 end. Its superior liquidity profile and investor-friendly moves bode well.General Motors has an expected revenue and earnings growth rate of 1.8% and 17.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.9% over the last 30 days. The stock price of GM has advanced 10% year to date.Colgate-Palmolive Co. CL has been gaining from strong pricing, and the benefits of funding growth and other productivity efforts. This, along with solid business momentum, led to a robust performance during fourth-quarter 2023.In addition, accelerated revenue growth management plans aided CL’s organic sales in the fourth quarter. In fact, 2023 marked the fifth straight year of organic sales growth either in line or ahead of the 3-5% long-term goal. As a result, CL anticipates net sales growth of 1-4% for 2024.Colgate-Palmolive has an expected revenue and earnings growth rate of 3.7% and 7.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 30 days. The stock price of CL has appreciated 10.5% year to date.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAmerican Express Company (AXP) : Free Stock Analysis ReportParker-Hannifin Corporation (PH) : Free Stock Analysis ReportThe Travelers Companies, Inc. (TRV) : Free Stock Analysis ReportColgate-Palmolive Company (CL) : Free Stock Analysis ReportGeneral Motors Company (GM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Forget AI, Invest in 5 Surging Old Economy Stocks for Gains

https://finance.yahoo.com/news/forget-ai-invest-5-surging-120600383.html

ed792144-ff34-3db7-829b-8a756d7fe0fd

PHM

In this article, we discuss the 13 best stocks to buy now according to billionaire Cliff Asness. If you want to read about some more stocks in the Asness portfolio, go directly to 5 Best Stocks To Buy Now According To Billionaire Cliff Asness.Cliff Asness, the head of AQR Capital Management, stands out as one of Wall Street's most accomplished hedge fund managers. AQR, short for Applied Quantitative Research, traces its origins to Goldman Sachs' asset management division, a leading global investment bank. With an initial investment of $10 million from a select group of investors in 1995, Asness utilized quantitative methods to swiftly expand the Goldman Sachs Global Alpha Fund to over $100 million within a matter of months. Despite Asness departing from Goldman Sachs to establish his hedge fund in 1998, the Alpha Fund continued its growth trajectory, managing assets worth $12 billion by 2007.Cliff Asness often appears on television and podcasts, where he shares his expertise on financial matters. In a Bloomberg podcast last year, he expressed apprehension about overinflated stock prices, cautioned about challenges in the commercial real estate sector, and even forecasted the possibility of a looming financial crisis.“My biggest concern is stocks and bonds seem to be taking a very, very different view. Bonds are pricing in multiple, severe cuts over the next year to two years. That is a forecast for a recession, and not a mild one. Equities are whistling past the graveyard. If inflation stays sticky, or it comes down because we enter a non-trivial recession, it’s equities that I think are a scary place. They’re not priced very consistently with bonds, and we’re going to find out who’s right in the next year.”Asness recently grabbed attention by reiterating his stance on emerging-market equities outperforming the US market, despite this trade's lackluster performance in recent years. AQR allocates approximately $8 billion of its $99 billion under management to an emerging-market equities portfolio, managed collaboratively like its other funds. This perspective challenging the dominance of US stocks aligns AQR with other major players in the industry, such as Morgan Stanley Investment Management.Story continuesIn addition, the billionaire's hedge fund closed out 2023 with impressive double-digit returns across several of its funds, driven by strong performance in stock selection, bonds, European natural gas, and iron ore, as reported by Reuters. The investment manager achieved a net return of 18.5% for the year in its AQR Absolute Return strategy, its longest-running multi-strategy fund. This marked a notable comparison to the almost 44% net return achieved in 2022. Asness had predicted in January 2023 that this particular investing approach, involving "going long cheap companies and shorting expensive ones" within specific sectors, would be particularly appealing for the year. With that in mind, lets look at some of the top stocks in the AQR Capital Management portfolio, which include the likes of Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG).13 Best Stocks To Buy Now According To Billionaire Cliff AsnessCliff Asness of AQR Capital ManagementOur MethodologyThese were picked from the investment portfolio of AQR Capital Management at the end of the fourth quarter of 2023. To provide readers with a more comprehensive overview of the companies, the analyst ratings for each firm are mentioned alongside other details. A database of around 933 elite hedge funds tracked by Insider Monkey in the fourth quarter of 2023 was used to quantify the popularity of each stock in the hedge fund universe.13. Humana Inc. (NYSE:HUM)Number of Hedge Fund Holders: 86AQR Capital Management's Stake: $351.6 millionHumana Inc. (NYSE:HUM), headquartered in Kentucky, offers fully insured medical and specialty health insurance benefits to its customers. Latest 13F filings show that AQR Capital Management owned 1.7 million shares of Humana Inc. (NYSE:HUM) at the end of the fourth quarter of 2023 worth $351.6 million.On December 12, Argus upgraded Humana Inc. (NYSE:HUM)’s stock from a Hold to a Buy rating, with a $550 price target. This upgrade followed the company's decision to discontinue merger discussions with The Cigna Group (NYSE:CI), a move perceived to have multiple downsides according to the analyst.By the end of last year’s fourth quarter, 86 out of the 933 hedge funds covered by Insider Monkey’s research had bought a stake in Humana Inc. (NYSE:HUM). Ken Griffin’s Citadel Investment Group owned the biggest stake which was worth $688 million.Much like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), Humana Inc. (NYSE:HUM) is one of the best stocks to buy according to billionaire Cliff Asness.12. The Cigna Group (NYSE:CI)Number of Hedge Fund Holders: 76AQR Capital Management's Stake: $352.6 millionThe Cigna Group (NYSE:CI) is a for-profit American multinational managed healthcare and insurance company headquartered in Bloomfield, Connecticut. With a global presence spanning 30 countries, the company serves over 86 million customers and continues to be a prominent leader in providing global healthcare benefits. Securities filings show that AQR Capital Management owned over 1.179 million shares of The Cigna Group (NYSE:CI) at the end of December 2023 worth $352.6 million, representing 0.66% of the portfolio.As of the close of Q4 2023, 76 hedge funds in Insider Monkey’s database reported having stakes in The Cigna Group (NYSE:CI), a slight increase from the previous quarter. The consolidated worth of these stakes is more than $4.49 billion.Davis Funds mentioned The Cigna Group (NYSE:CI) in its Q3 2023 investor letter. Here is what the firm has to say:“In the attractive healthcare sector, we look beyond the obvious to identify businesses that simultaneously have exposure to this growth industry and also trade at low prices. We’re especially drawn to companies like Cigna Group, whose products or services play a part in helping to mitigate healthcare’s constantly rising costs. The healthcare industry has been a growing part of the U.S. economy for decades. As a result, many companies in this sector trade at high valuations reflecting their robust but well-known reputation for growth. For value-conscious investors like us, investing in healthcare requires looking beyond the obvious to identify businesses that have exposure to this growth industry but which trade at low prices. Furthermore, recognizing that the constantly rising cost of healthcare cannot go on forever, we have been particularly drawn to companies whose products or services play some role in managing or reducing the cost of care. As a result, we have positions in Cigna Group, a well-regarded provider of managed care.11. PulteGroup, Inc. (NYSE:PHM)Number of Hedge Fund Holders: 38AQR Capital Management's Stake: $379.78 millionPulteGroup, Inc. (NYSE:PHM) is a prominent American residential home-construction company headquartered in Atlanta, Georgia, United States. As of 2023, it held the position as the third-largest home-construction company in the United States in terms of the number of homes closed. Cliff Asness’ investment firm reduced its stake in PulteGroup, Inc. (NYSE:PHM) by 11% to $379.78 million in the fourth quarter of 2023.In the fourth quarter, PulteGroup, Inc. (NYSE:PHM) reported a profit of $711 million or $3.28 per share, a decrease from $882 million or $3.85 per share in the same period last year. The company sold 7,615 homes, which was below expectations, at an average price of $547,000, down from $561,000 a year ago. The decline in home sales was attributed to the surge in the average rate on a 30-year mortgage to nearly 8%, the highest level in two decades. These high rates led many potential homebuyers to postpone their purchases and prompted sellers to offer concessions. However, as mortgage rates moderated in the latter half of the quarter, PulteGroup, Inc. (NYSE:PHM) experienced a 57% increase in net new orders to 6,214 homes valued at approximately $3.4 billion. This growth was driven by a more favorable selling environment and a decrease in cancellations, which decreased to 9% of backlog from 11% in the same quarter of the previous year.After looking through 933 hedge funds for their fourth quarter of 2023 shareholdings, Insider Monkey discovered that 38 were the firm’s investors.10. Broadcom Inc. (NASDAQ:AVGO)Number of Hedge Fund Holders: 91AQR Capital Management's Stake: $436.8 millionBroadcom Inc. (NASDAQ:AVGO) is a leading global technology company specializing in the design, development, and supply of semiconductor and infrastructure software solutions. Catering to a wide array of industries such as networking, storage, broadband, wireless, and industrial sectors, Broadcom Inc. (NASDAQ:AVGO) has established itself as a key player in the tech industry. Latest 13F filings show that AQR Capital Management owned 391,343 shares of Broadcom Inc. (NASDAQ:AVGO) at the end of December 2023 worth $436.8 millionAccording to data from Insider Monkey’s fourth quarter database, Ken Fisher’s Fisher Asset Management holds the largest stake in Broadcom Inc. (NASDAQ:AVGO), with 2.13 million shares valued at $2.37 billion. Overall, 91 hedge funds expressed bullish sentiment towards the stock.9. Adobe Inc (NASDAQ:ADBE)Number of Hedge Fund Investors: 105AQR Capital Management's Stake: $448.26 millionHeadquartered in California, Adobe Inc. (NASDAQ:ADBE) stands as a versatile software company, offering an extensive range of products and solutions tailored to empower individuals, teams, and enterprises in content creation, publishing, and promotion. Renowned across various sectors, including content creators, students, and professionals, Adobe Inc. (NASDAQ:ADBE) also operates a Digital Experience segment, catering to brands and businesses in managing, implementing, and monetizing customer experiences. Securities filings indicate that AQR Capital Management held over 751,372 shares of Adobe Inc. (NASDAQ:ADBE) as of the end of December 2023, valued at $448.26 million, accounting for 0.84% of its portfolio.On December 13, Adobe Inc. (NASDAQ:ADBE) reported a Q4 non-GAAP EPS of $4.27 and revenue of $5.05 billion, surpassing Wall Street estimates by $0.13 and $30 million, respectively. Notably, the company repurchased approximately 1.8 million shares during the fourth quarter of 2023.After digging through 933 hedge fund portfolios for 2023’s December quarter, Insider Monkey found that 105 had held a stake in Adobe Inc. (NASDAQ:ADBE). Ken Fisher’s Fisher Asset Management was the biggest investor, owning 4.5 million shares that are worth $2.7 billion.8. Cisco Systems, Inc. (NASDAQ:CSCO)Number of Hedge Fund Holders: 60AQR Capital Management's Stake: $614.9 millionCisco Systems, Inc. (NASDAQ:CSCO) is a global corporation that specializes in designing, manufacturing, and selling networking and communication products worldwide. Its product portfolio includes switches, routers, wireless products, and computing solutions. At the end of the third quarter of 2023, Cliff Asness held over 12.17 million shares of Cisco Systems, Inc. (NASDAQ:CSCO), valued at $614.9 million, representing 1.15% of the portfolio.On November 15, Cisco Systems, Inc. (NASDAQ:CSCO) released its financial results for the first fiscal quarter of 2024. The company reported a non-GAAP EPS of $1.11 and revenue of $14.67 billion, surpassing Wall Street estimates by $0.08 and $40 million, respectively.At the end of the fourth quarter of 2023, 60 hedge funds in the database of Insider Monkey held stakes worth $2.71 billion in Cisco Systems, Inc. (NASDAQ:CSCO), compared to 64 in the previous quarter worth $1.64 billion.Here is what Oakmark Funds has to say about Cisco Systems, Inc. (NASDAQ:CSCO) in its Q3 2023 investor letter:“Cisco Systems, Inc. (NASDAQ:CSCO) is the leading networking solutions company. Networking equipment becomes more important as businesses modernize their IT infrastructure, and Cisco is well positioned to capture this demand given its broad portfolio and highly effective go-to-market strategy. Cisco is transitioning away from selling mainly transactional hardware and toward selling more software and subscriptions. This shift is expected to accelerate revenue growth, improve operating margins and build recurring revenue. Despite these notable business improvements, Cisco still trades near a trough valuation relative to the S&P 500 Index. More recently, Cisco announced its intention to acquire Splunk, a leader in security and observability, adding to its already strong position in the increasingly important security market. At a low-teens multiple of our estimate of normalized earnings, Cisco is trading comfortably below our estimate of intrinsic value.”7. Meta Platforms Inc (NASDAQ:META)Number of Hedge Fund Investors: 242AQR Capital Management's Stake: $636.6 millionMeta Platforms, Inc. (NASDAQ:META) is an American multinational technology company that provides social networking services, advertising solutions, and more through various platforms, including Facebook, Instagram, Threads, and WhatsApp. AQR Capital Management owned 1.79 million shares of Meta Platforms, Inc. (NASDAQ:META) at the end of December 2023, valued at $636.6 million, representing 1.19% of the portfolio of the fund.On February 1, Meta Platforms, Inc. (NASDAQ:META) declared its first-ever quarterly dividend of $0.50, payable by March 26 to the shareholders of record on February 22. As of February 11, the stock’s dividend yield was 0.43%.A total of 242 hedge funds in Insider Monkey’s database had stakes in Meta Platforms Inc (NASDAQ:META). The biggest stakeholder in Meta Platforms Inc (NASDAQ:META) was Rajiv Jain’s GQG Partners which owns a $3.95 billion stake in Meta Platforms Inc (NASDAQ:META).Meta Platforms, Inc. (NASDAQ:META) was mentioned in First Pacific Advisors’ fourth quarter 2023 investor letter. Here is what it said:“Meta Platforms, Inc. (NASDAQ:META) saw a welcome recovery in engagement and revenue year-to-date following a tough 2022. The company has continued to offer new solutions that allow advertisers to target customers effectively and efficiently via one of the world’s leading digital platforms. Moreover, operating profits are rising due to an organization-wide focus on improving productivity and accelerating the time to market for new products. However, overall profitability continues to be weighed down by losses in the Reality Labs segment. But, there is positive optionality that Meta will emerge from the AI arms race as one of the leading players in the industry.”Meta Platforms, Inc. (NASDAQ:META), Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG) are some of the best stocks to buy according to Cliff Asness.6. Alphabet Inc. (NASDAQ:GOOG)Number of Hedge Fund Holders: 166AQR Capital Management's Stake: $685.03 millionAlphabet Inc. (NASDAQ:GOOG), a major player in the technology sector, is renowned for its flagship product, Google, which handles billions of daily queries as a leading search engine. The company's portfolio includes various platforms for video streaming and productivity, with YouTube being a standout asset. Additionally, Alphabet Inc. (NASDAQ:GOOG) is involved in the retail of electronic devices, offering a range of products such as smartphones, ultra-thin notebooks, and speakers. Regulatory filings reveal that AQR Capital Management owned over 4.9 million shares of Alphabet Inc. (NASDAQ:GOOG) at the end of the fourth quarter of 2023, valued at $685.03 million, representing 1.28% of the portfolio.As of the close of the fourth quarter of 2023, 166 hedge funds held stakes in Alphabet Inc. (NASDAQ:GOOG). The most significant stakeholder during this period was Ken Fisher’s Fisher Asset Management, which owned a $6.3 billion stake in Alphabet Inc. (NASDAQ:GOOG). Click to continue reading and see the 5 Best Stocks To Buy Now According To Billionaire Cliff Asness. Suggested articles:12 Highest-Paid Women CEOs12 Best Communication Stocks To Buy According To Hedge Funds10 Best Augmented Reality Stocks Under $5Disclosure. None. 13 Best Stocks To Buy Now According To Billionaire Cliff Asness is originally published on Insider Monkey.

Insider Monkey

13 Best Stocks To Buy Now According To Billionaire Cliff Asness

https://finance.yahoo.com/news/13-best-stocks-buy-now-063449519.html

6ef19a23-21a2-3135-a371-4a923939be26

PHM

In this article, we will be navigating through the 14 legit reasons to back out of a home purchase. If you wish to skip our detailed analysis, you can move directly to the 5 Legit Reasons to Back Out of a Home Purchase. Calling Off a Home PurchaseThe home-buying process can be overwhelming for many. Although this process is expected to be mutually beneficial for all parties involved such as the buyer, the seller, and the real estate agent, there are many potential problems that can make the buyer call off the deal.A bright side to the probable problems is the presence of several contingencies that can help the buyer exit the deal without incurring a loss. A basic contingency in this regard is the inspection contingency which gives the buyer an opportunity to undertake an inspection of the property within a specified time period. In case the inspection reveals major problems, the buyer can back out of the contract. Based on the terms of the inspection contingency, the buyer can either leave the purchase and get the earnest money back or request the repair required. The final outcome will finally depend on whether the seller agrees to make the repairs or not.Financial burden and affordability issues tend to be a core limiting factor for homebuyers since many of them rely on some sort of financing. You can take a look at the cities where you can buy a home for under 300k. Addressing the financial constraints, the mortgage contingency gives the buyer some time to secure financing for the home purchase. This serves as a sense of relief since the buyer can simply back out if the lender refuses to give the money due to any circumstances. These circumstances will be discussed later as reasons to back out of a home purchase on our list. Some of the biggest mortgage companies in the US have also been covered.The buyer can escape any legal consequences in case of a home sale contingency as well. This is when the buyer is dependent on the sale of an existing house to proceed with the purchase of the new one. Apart from protecting the buyer's interests, contingency clauses also support the seller. For instance, the kick-out clause gives the seller the right to keep marketing the house to other buyers and to sell the house to a better buyer if the current buyer doesn't remove the aforementioned house sale contingency within a specific time.Story continuesLeading Homebuilders Providing Decent OptionsDespite the risks associated with the purchase of a house which can make the buyer call it off, homebuilders across the US tend to facilitate a smooth home-buying process. Some of these include  Lennar Corporation (NYSE:LEN), KB Home (NYSE:KBH), and PulteGroup, Inc. (NYSE:PHM). Other large homebuilders in the US have also been previously covered.Lennar Corporation (NYSE:LEN) is an American home construction company that constructs affordable, move-up, and active adult homes primarily under the Lennar brand name. It also engages in the development of high-quality multifamily rental properties. On February 16, Lennar Corporation (NYSE:LEN) reported that home sales in its new single-family community ‘Stonehill Manor’ will commence in March. Due to the positioning of the community, residents can easily commute to downtown Fort Myers. Popular beaches in the region can also be accessed.KB Home (NYSE: KBH) is one of the largest home builders in the United States. The company focuses on fostering interpersonal relationships with its customers by building homes unique to each customer based on their budget. On February 9, KB Home (NYSE: KBH) reported the grand opening of its new community in Buckeye, Arizona. The community ‘Mystic Vista Traditions’ allows residents to seek employment options in the Phoenix area. Outdoor recreation can also be undertaken at the Skyline Regional Park and Estrella Mountain Regional Park. Pricing for the new home starts from the low $300,000s.PulteGroup, Inc. (NYSE:PHM) is an American residential home construction company. The firm operates Pulte Homes which constructs consumer-inspired homes in more than 40 markets across the US. On February 15, PulteGroup, Inc. (NYSE:PHM) reported the grand opening of Rookery Lane at Concord, a new Boston area community. Those who wish to live in the community can conveniently access Boston and Concord. Nearby hiking trails and parks can also be visited. Prices for the new homes begin at $1,339,995.Without further ado, let’s move to the 14 legit reasons to back out of a home purchase.14 Legit Reasons to Back Out of a Home Purchase14 Legit Reasons to Back Out of a Home PurchaseOur Methodology:In order to compile a list of the 14 legit reasons to back out of a home purchase, we carried out a comprehensive consensus. We sifted through more than 10 sources to gather all the valid reasons that make home buyers walk away from the home-buying process. All the reasons that were most commonly cited have been ranked in our list based on their common appearance across our sources.By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.14 Legit Reasons to Back Out of a Home Purchase14. Disputed Boundary Lines Disputed boundary lines are one of the reasons to back out of a home purchase. If the land survey reveals that the boundary measurements are different than what was originally disclosed, the buyer can choose to walk away from the deal. This is because buyers expect the property details to be legit in the first place.13. An Option PeriodIn contracts where an option period is included, the buyer can back out within this period without any penalty or reason. Hence, this temporary time period can allow the buyer to leave the home-buying process.12. Agent Pressures into Making an OfferIf the buyer feels like the real estate agent is unnecessarily placing pressure to make an offer, the decision to back out of the home purchase can be taken. This is a precaution that helps the buyer avoid any problems that can potentially arise in the future from a purchase made under pressure and in a hurry.11. Seller Denies Extension in the Due-Diligence PeriodDuring the due diligence period agreed upon by the parties, the buyer can carry out an appraisal or inspection of the property. If the seller doesn’t extend the due diligence period and the buyer is not yet satisfied with the evaluation of the property, he can back out of the purchase. This is because the buyer demands more time to make an informed decision regarding the home purchase in this case.10. Unaffordability in Case of Monthly Mortgage PaymentsThe mortgage rate can even fluctuate after the pre-approval. In case the rate goes up, the monthly mortgage payments also increase which can raise affordability concerns for the buyer. Hence, the lack of affordability of monthly mortgage payments is one of the legit reasons to back out of a home purchase. 9. Local Zoning RestrictionsMany times, the buyer has plans to upgrade the house in the future, However, the local zoning restrictions might now allow the buyer to do so. In this case, the imposed restrictions become the buyer’s reason to walk away from the deal.8. Title IssuesA transparent title transfer can be halted by various issues. The legal document of the property might have an error that needs to be fixed to move forward with the deal. In case the seller has some debt that he has not paid, a lien can also be filed against the property. Another common issue in this regard is missing heirs who tend to have ownership of the property.7. Change in Employment StatusSometimes, the buyer gets subjected to unpredictable circumstances such as the loss of a job. Such events might not allow the buyer any financing. Since financing tends to be a primary factor for many home buyers, the declined loan will make the buyer back out of the home purchase. Hence, a change in employment status is one of the reasons behind exiting the home-buying process.6. Denied Loan FinancingIn case the buyer is denied the loan and is unable to secure the financing even after the pre-approval, a loan contingency allows the buyer to back out of the home purchase. This denial could be due to a change in the financial situation of the buyer due to which the lender denies the final loan.Click to continue reading and see 5 Legit Reasons to Back Out of a Home Purchase. Suggested articles:Top 15 Countries for Dental Tourism15 Countries with the Best Healthcare in Europe15 Countries with Highest Economic Mobility in the WorldDisclosure: None. 14 Legit Reasons to Back Out of a Home Purchase is originally published on Insider Monkey.

Insider Monkey

14 Legit Reasons to Back Out of a Home Purchase

https://finance.yahoo.com/news/14-legit-reasons-back-home-232901005.html

cb78b74c-d946-397c-b7ad-47d1e3c5a542

PHM

ATLANTA, March 08, 2024--(BUSINESS WIRE)--PulteGroup (NYSE: PHM), the nation’s third-largest homebuilder, today announced the nomination of Kristen Actis-Grande, Executive Vice President and Chief Financial Officer of MSC Industrial Direct Co., Inc. ("MSC") (NYSE: MSM), for election as a new independent director to its Board of Directors ("Board"). Ms. Actis-Grande’s appointment will be effective immediately if elected by PulteGroup shareholders at its annual meeting scheduled for May 6, 2024."Kristen is a strategic and accomplished business leader, and we are pleased that she is joining PulteGroup's Board," said Thomas J. Folliard, Chairman of the Board of PulteGroup. "Her comprehensive understanding of finance functions within large, public companies, along with her unique insights into the homebuilding industry and broader economy, will be of tremendous benefit as PulteGroup continues to successfully execute its disciplined operating strategy."Actis-Grande oversees and leads all finance-related functions for MSC, a leading North American distributor of a broad range of metalworking and maintenance, repair, and operations products and services. She is also responsible for the company’s corporate strategy, mergers and acquisitions and investor relations.Prior to joining MSC, Actis-Grande served in various finance-related roles for 17 years at Ingersoll Rand Inc., including Chief Financial Officer for its Compression Technologies and Services Division from 2018-2020 and Chief Financial Officer for its Residential HVAC and Supply division from 2016-2018, which included the Trane and American Standard brands.Actis-Grande holds an MBA from the Indiana University Kelley School of Business and a bachelor’s degree in finance from Lehigh University.About PulteGroupPulteGroup, Inc. (NYSE: PHM), based in Atlanta, Georgia, is one of America’s largest homebuilding companies with operations in more than 40 markets throughout the country. Through its brand portfolio that includes Centex, Pulte Homes, Del Webb, DiVosta Homes, American West and John Wieland Homes and Neighborhoods, the company is one of the industry’s most versatile homebuilders able to meet the needs of multiple buyer groups and respond to changing consumer demand. PulteGroup’s purpose is building incredible places where people can live their dreams.Story continuesFor more information about PulteGroup, Inc. and PulteGroup brands, go to pultegroup.com; pulte.com; centex.com; delwebb.com; divosta.com; jwhomes.com; and americanwesthomes.com. Follow PulteGroup, Inc. on Twitter: @PulteGroupNews.View source version on businesswire.com: https://www.businesswire.com/news/home/20240308229629/en/ContactsTim ChatlosOffice: [email protected]

Business Wire

PulteGroup Nominates Kristen Actis-Grande for Election to Board of Directors

https://finance.yahoo.com/news/pultegroup-nominates-kristen-actis-grande-220000455.html

a2f37676-387b-36aa-8b0c-292327044b97

PHM

In the latest market close, PulteGroup (PHM) reached $110.85, with a -1.62% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.11%. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq decreased by 0.41%.Coming into today, shares of the homebuilder had gained 9.29% in the past month. In that same time, the Construction sector gained 8.1%, while the S&P 500 gained 2.7%.The upcoming earnings release of PulteGroup will be of great interest to investors. The company's earnings report is expected on April 23, 2024. On that day, PulteGroup is projected to report earnings of $2.36 per share, which would represent year-over-year growth of 0.43%. In the meantime, our current consensus estimate forecasts the revenue to be $3.59 billion, indicating a 0.37% growth compared to the corresponding quarter of the prior year.Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.77 per share and revenue of $16.89 billion, indicating changes of +0.43% and +5.15%, respectively, compared to the previous year.Investors should also take note of any recent adjustments to analyst estimates for PulteGroup. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.43% rise in the Zacks Consensus EPS estimate. PulteGroup presently features a Zacks Rank of #3 (Hold).Story continuesFrom a valuation perspective, PulteGroup is currently exchanging hands at a Forward P/E ratio of 9.58. This indicates a premium in contrast to its industry's Forward P/E of 9.5.We can also see that PHM currently has a PEG ratio of 0.76. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. PHM's industry had an average PEG ratio of 0.87 as of yesterday's close.The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 36, placing it within the top 15% of over 250 industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportPulteGroup, Inc. (PHM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

PulteGroup (PHM) Sees a More Significant Dip Than Broader Market: Some Facts to Know

https://finance.yahoo.com/news/pultegroup-phm-sees-more-significant-214521900.html

8629aeb2-d9d0-3631-959b-ba7383ce818a

PKG

Packaging Corporation of America (NYSE:PKG) Q4 2023 Earnings Call Transcript January 25, 2024Packaging Corporation of America isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).Operator: Thank you for joining Packaging Corporation of America's Fourth Quarter and Full Year 2023 Earnings Results Conference Call. Your host today will be Mark Kowlzan, Chairman and Chief Executive Officer of PCA. Upon conclusion of his narrative, there will be a question-and-answer session. I'd now like to turn the floor over to Mr. Kowlzan. Please proceed when you are ready.Mark Kowlzan: Thank you, Jamie. Good morning, everyone, and thank you all for participating in Packaging Corporation of America's fourth quarter and full year 2023 earnings release conference call. Again, I'm Mark Kowlzan, Chairman and CEO of PCA. And with me on the call today is Tom Hassfurther, Executive Vice President, who runs the Packaging business; and Bob Mundy, our Chief Financial Officer. As usual, I will begin the call with an overview of the fourth quarter and full year results, and then I'll be turning the call over to Tom and Bob, who'll provide further details. After they're done, I'll wrap things up, and then we'll be glad to take questions. Yesterday, we reported fourth quarter 2023 net income of $189 million or $2.10 per share.Excluding special items, fourth quarter 2023 net income was $192 million or $2.13 per share, compared to the fourth quarter of 2022’s net income of $215 million or $2.35 per share. Fourth quarter net sales were $1.94 billion in 2023 and $1.98 billion in 2022. Total company EBITDA for the fourth quarter, excluding special items was $394 million in 2023 and $409 million in 2022. Excluding the special items, we also reported full year 2023 earnings of $784 million or $8.70 per share compared to the 2022 earnings of $1.04 billion or $11.14 per share. Net sales were $7.8 billion in 2023 and $8.5 billion in 2022. Excluding special items, total company EBITDA in 2023 was $1.6 billion compared to the $1.9 billion in 2022. Fourth quarter and full year 2023 net income included special items primarily for certain costs at our Jackson, Alabama mill for the paper-to-containerboard conversion-related activities and the closure and other costs related to corrugated products facilities and design center.Story continuesDetails of all special items for the year 2023 and 2022 were included in the schedules that accompanied our earnings press release. Excluding the special items, the $0.22 per share decrease in fourth quarter 2023 earnings compared to the fourth quarter of 2022 was driven primarily by lower prices and mix of $1.93 in the Packaging segment, lower prices and mix $0.04, and volume $0.03 in the Paper segment and higher depreciation expense $0.10. These items were partially offset by very good volume in the Packaging segment of $1.07 per share. We also had lower operating and converting costs of $0.51 driven by very good process efficiencies and control over other usages of fiber, chemicals, energy, materials and labor as well as lower energy and wood fiber prices.In addition, we had lower scheduled maintenance outage expenses of $0.19, lower freight and logistics expenses $0.03, lower other expenses $0.04 and a lower share count resulting from share repurchases $0.04. The results were $0.37 above the fourth quarter guidance of $1.76 per share, primarily due to higher volumes in our Packaging segment, lower operating and converting costs, lower freight and logistics expenses. Looking at the Packaging business. EBITDA excluding special items in the fourth quarter of 2023 of $385 million with sales of $1.8 billion resulted in a margin of 21.7% versus last year's EBITDA of $392 million and sales of $1.8 billion and also a 21.7% margin. For the full year 2023, Packaging segment EBITDA, excluding special items was $1.6 billion with sales of $7.1 billion or 21.8% margin compared to the full year 2022 EBITDA of $1.8 billion with sales of $7.8 billion or a 23.8% margin.Throughout the quarter, demand in the Packaging segment was stronger than our expectations. This higher volume along with the operational benefits of our capital spending program and continued emphasis on cost management and process efficiencies across the entire manufacturing and converting facility system drove operating and converting costs lower as well. We had an excellent restart of the Wallula, Washington mill and the No. 3 machine during the latter part of October and ran exceptionally well during the November, December period. And that helped us meet the stronger demand and build some needed inventory during the quarter to ensure the customers – that our customers were supplied with their needs. We plan to restart the No. 2 machine at the Wallula mill in this first quarter to help manage our expectations in the first half of 2024 for continued strong demand together with scheduled mill maintenance outages and the final phase of the containerboard conversion of the No. 3 machine at our Jackson, Alabama mill.I'll now turn it over to Tom, who'll provide more details on containerboard sales and the corrugated business.Tom Hassfurther: Thank you, Mark. As Mark mentioned, Packaging segment volume for the quarter exceeded our guidance estimates. Corrugated product shipments per workday were up 5.1% and total shipments with one additional shipping day were up 6.9% compared to last year's fourth quarter. Versus the third quarter of 2023, shipments per day were up 5.2% and total shipments were up 3.4%, even though there was one less shipping day. Outside sales volume of containerboard was 88,000 tons above last year's fourth quarter and 17,000 tons above the third quarter of 2023. Our order backlog and containerboard cut-up remained incredibly strong throughout the quarter. Although demand continues to be challenged by persistent inflation, higher interest rates and other factors, we expect our shipments to continue this positive momentum as we enter the first half of 2024.Relative to the published reductions in the industry benchmark grades that occurred in 2023, Domestic containerboard and corrugated products prices and mix together were $1.73 per share below the fourth quarter of 2022 and down $0.40 per share, compared to the third quarter of 2023, which included a richer mix of graphics and point-of-purchase display business. Export containerboard prices and mix were down $0.20 per share, compared to the fourth quarter of 2022 and down $0.01 per share compared to the third quarter of 2023. Beginning January 1, 2024, we began invoicing a $70 per ton price increase for linerboard and $100 per ton increase for medium according to our recent price announcement. As you are probably aware, this past Friday, the RISI Pulp and Paper Week publication did not recognize any increase in the industry's benchmark prices for either linerboard or medium.I'm sure you will have some questions for us on this topic, and we'll be happy to discuss them with you shortly. I'll turn it back to Mark.A containerboard factory with a display of multi-color boxes at the entrance.Mark Kowlzan: Thanks, Tom. Looking at the Paper segment, EBITDA excluding special items in the fourth quarter was $35 million with sales of $144 million or a 24.5% margin compared to the fourth quarter of 2022's EBITDA of $39 million and sales of $154 million or 25.7% margin. For the full year 2023, Paper segment EBITDA, excluding special items was $151 million with sales of $595 million or a record 25.3% margin compared to the full year 2022 EBITDA of $132 million with sales of $622 million or a 21.3% margin. Prices and mix were down 3% from last year's fourth quarter and from the third quarter of 2023, driven by the declines in the index prices that occurred during the year. Although, slightly better than our fourth quarter guidance, sales volume was 3% below last year's fourth quarter and down approximately 6% versus the seasonally stronger third quarter of 2023.The management team and all the employees of our paper business have done a tremendous job over the last several quarters to optimize our inventory and product mix, and remain focused on efficient and cost-effective operations in order to continue delivering outstanding results during 2023. I'll now turn it over to Bob.Bob Mundy: Thanks Mark. Cash provided by operations during the quarter totaled $335 million and free cash flow was $194 million. The primary payments of cash during the quarter included capital expenditures of $141 million, dividend payments of $112 million, cash tax payments of $59 million and net interest payments of $26 million. For the full year 2023, cash from operations was $1.3 billion with capital spending of $470 million and free cash flow, a record $845 million. Our final recurring effective tax rate for 2023 was 24.5%. During the fourth quarter, we issued $400 million of new 10-year notes. The proceeds from these notes will be used to redeem our $400 million notes that mature in September of 2024. Our net debt is not affected by this transaction and the proceeds from this issuance will be invested in marketable securities at an interest rate exceeding that of the new notes.The new bonds raised our overall fixed interest rate by approximately 30 basis points and extended the overall average maturity of our debt portfolio from 14.1 years to 15.6 years. Excluding the proceeds from this transaction, our year-end cash on-hand balance, including marketable securities, was just over $800 million, with liquidity of $1.1 billion. Regarding full year estimates of certain key items for the upcoming year, we expect total capital expenditures to be in the range of $470 million to $490 million. And DD&A is expected to be approximately $530 million. We estimate dividend payments of $450 million and cash pension and post-retirement benefit plan contributions of $27 million. Our full year interest expense in 2024 is expected to be approximately $53 million and net cash interest payments should be about $60 million.The estimate for our 2024 book effective tax rate is 25%. Currently, planned annual outages at our mills in 2024 including lost volume, direct costs and amortized repair costs is expected to total $0.96 per share. The current estimated impact by quarter in 2024 is $0.26 per share in the first quarter, $0.16 in the second, $0.19 in the third and $0.35 per share in the fourth quarter. These expenses include the volume and cost impact that will be incurred during the completion of the final phase of converting the No. 3 machine at the Jackson mill to containerboard during the first and second quarters. This will negatively impact our first quarter results by approximately $0.16 per share and our second quarter results by $0.08 per share. I'll now turn it back over to Mark.Mark Kowlzan: Thank you, Bob. I'm very proud of the outstanding results PCA delivered in 2023 under very challenging demand conditions. We successfully completed numerous cost reduction and process improvement projects along with other key strategic initiatives at the containerboard mills and corrugated products plants. Our dedicated sales and customer service organizations continue to be extremely motivated and understanding the business of our customers. They were very responsive to our customers' needs and works proactively to help them with their solutions to their opportunities and their challenges. These combined efforts allowed us to enhance our entire packaging business and deliver profitable growth opportunities for our customers and shareholders now and into the future.2023 also saw our paper business deliver record margins reflecting the capabilities of our employees to optimize our product mix, inventory, distribution channels and overhead structure, along with running very efficient manufacturing operations. These accomplishments helped us to achieve a new all-time annual record free cash flow. We ended the year with over $1.1 billion of liquidity and extended the overall average debt maturity to almost 16 years. We continued our commitment to a strong balance sheet and a balanced approach towards capital allocation. This allows us to profitably grow the company and to maximize returns for our shareholders, while maintaining the financial flexibility to react quickly to situations and opportunities. None of these things would be possible without the hard work of the talented employees and strong partnerships we’ve built with our customers and suppliers over many, many years.Looking ahead, as we move from the fourth and into the first quarter, as Tom indicated in our Packaging segment, we expect continued positive momentum in demand, along with two additional shipping days in the first quarter to drive higher total corrugated product shipments. Despite restarting the No. 2 machine at the Wallula mill, containerboard volume will be lower due to the downtime associated with the conversion of the No. 3 machine at the Jackson mill and a scheduled maintenance outage at the Counce, Tennessee mill. Prices and mix should be slightly higher with the implementation of our announced January price increases partially offset by a decrease in the published benchmark prices that occurred late in 2023 with export prices fairly flat.In our Paper segment, we expect an improved mix to move prices slightly higher with flat sales volume. Recycled fiber and energy prices will be higher and unusually cold seasonal weather will negatively impact usages and yields for energy, wood and chemicals, along with higher operating costs associated with the restart of the full operations at the Wallula mill compared to the fourth quarter operations. Labor and benefits costs will have seasonal timing related increases that occur at the beginning of a new year related to annual wage and benefit increases, the restart of payroll taxes and share-based compensation expenses. And finally, as Bob mentioned, scheduled outage expenses will include the significant first quarter impact of the conversion outage at the Jackson mill, which is estimated to be $0.16 per share.Considering these items, we expect the first quarter earnings of $1.54 per share. And with that, Jamie, I’d like to open the call for questions. And we can proceed as you call it out. Thanks, Jamie.Operator: [Operator Instructions] Our first question today comes from Mark Weintraub from Seaport Research Partners. Please go ahead with your question.See also 12 Best German Dividend Stocks and 40 Accredited Online Business Degree Programs Heading Into 2024.To continue reading the Q&A session, please click here.

Insider Monkey

Packaging Corporation of America (NYSE:PKG) Q4 2023 Earnings Call Transcript

https://finance.yahoo.com/news/packaging-corporation-america-nyse-pkg-140632844.html

1faf7df6-a0bc-3027-96c8-19ffee1da555

PKG

LAKE FOREST, Ill., February 14, 2024--(BUSINESS WIRE)--Packaging Corporation of America’s (NYSE: PKG) Chief Executive Officer, Mark Kowlzan, will speak at Bank of America Securities’ Global Agriculture and Materials Conference being held at The Conrad Fort Lauderdale Beach in Fort Lauderdale, FL on Thursday, February 29, 2024. After Mr. Kowlzan’s formal presentation, he and Executive Vice President and CFO, Robert Mundy will participate in a Fireside Chat Q&A session. Immediately following, they will be hosting a series of 1 x 1 meetings.For those interested in listening to the webcast, please go to our company’s website at https://packagingcorp.com, click on the "Investors" tab, and then in the drop-down menu, click "Presentations and Events". A webcast replay will be available shortly after the conclusion of the live presentation. The webcast replay will expire on May 29, 2024.PCA is the third largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America. PCA operates eight mills and 86 corrugated products plants and related facilities.View source version on businesswire.com: https://www.businesswire.com/news/home/20240214012285/en/ContactsBarbara SessionsPackaging Corporation of AmericaINVESTOR RELATIONS: (877) 454-2509PCA’s Website: www.packagingcorp.com

Business Wire

Packaging Corporation of America’s Chief Executive Officer to Speak at Bank of America’s 2024 Conference

https://finance.yahoo.com/news/packaging-corporation-america-chief-executive-194100473.html

c1f878e6-0cd6-351b-be7c-7daaa4a36cb7

PKG

Packaging Corporation of America (NYSE:PKG) has announced that it will pay a dividend of $1.25 per share on the 15th of April. This means the dividend yield will be fairly typical at 2.8%. Check out our latest analysis for Packaging Corporation of America Packaging Corporation of America's Dividend Is Well Covered By EarningsUnless the payments are sustainable, the dividend yield doesn't mean too much. Based on the last payment, Packaging Corporation of America was quite comfortably earning enough to cover the dividend. This means that a large portion of its earnings are being retained to grow the business.The next year is set to see EPS grow by 26.2%. Assuming the dividend continues along recent trends, we think the payout ratio could be 52% by next year, which is in a pretty sustainable range.historic-dividendPackaging Corporation of America Has A Solid Track RecordThe company has a sustained record of paying dividends with very little fluctuation. Since 2014, the dividend has gone from $1.60 total annually to $5.00. This implies that the company grew its distributions at a yearly rate of about 12% over that duration. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.Dividend Growth May Be Hard To AchieveInvestors who have held shares in the company for the past few years will be happy with the dividend income they have received. However, Packaging Corporation of America's EPS was effectively flat over the past five years, which could stop the company from paying more every year. The company has been growing at a pretty soft 1.8% per annum, and is paying out quite a lot of its earnings to shareholders. This isn't necessarily bad, but we wouldn't expect rapid dividend growth in the future.Packaging Corporation of America Looks Like A Great Dividend StockIn summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock.Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 2 warning signs for Packaging Corporation of America that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Packaging Corporation of America (NYSE:PKG) Has Affirmed Its Dividend Of $1.25

https://finance.yahoo.com/news/packaging-corporation-america-nyse-pkg-131140777.html

a50caece-290e-3ccc-862c-9f05efeac74e