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PKG

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 Packaging Corporation of America (NYSE:PKG) is about to go ex-dividend in just four days. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Accordingly, Packaging Corporation of America investors that purchase the stock on or after the 14th of March will not receive the dividend, which will be paid on the 15th of April.The company's upcoming dividend is US$1.25 a share, following on from the last 12 months, when the company distributed a total of US$5.00 per share to shareholders. Based on the last year's worth of payments, Packaging Corporation of America stock has a trailing yield of around 2.7% on the current share price of US$186.08. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. See our latest analysis for Packaging Corporation of America 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. Packaging Corporation of America is paying out an acceptable 59% of its profit, a common payout level among most companies. 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. Dividends consumed 53% of the company's free cash flow last year, which is within a normal range for most dividend-paying organisations.Story continuesIt's positive to see that Packaging Corporation of America's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.Click here to see the company's payout ratio, plus analyst estimates of its future dividends.historic-dividendHave Earnings And Dividends Been Growing?Companies that aren't growing their earnings can still be valuable, but it is even more important to assess the sustainability of the dividend if it looks like the company will struggle to grow. If earnings fall far enough, the company could be forced to cut its dividend. That explains why we're not overly excited about Packaging Corporation of America's flat earnings over the past five years. It's better than seeing them drop, certainly, but over the long term, all of the best dividend stocks are able to meaningfully grow their earnings per share. Earnings per share growth has been slim, and the company is already paying out a majority of its earnings. While there is some room to both increase the payout ratio and reinvest in the business, generally the higher a payout ratio goes, the lower a company's prospects for future growth.The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the past 10 years, Packaging Corporation of America has increased its dividend at approximately 12% a year on average.Final TakeawayHas Packaging Corporation of America got what it takes to maintain its dividend payments? Earnings per share have barely grown, and although Packaging Corporation of America paid out over half its earnings and free cash flow last year, the payout ratios are within a normal range for most companies. In summary, while it has some positive characteristics, we're not inclined to race out and buy Packaging Corporation of America today.So if you want to do more digging on Packaging Corporation of America, you'll find it worthwhile knowing the risks that this stock faces. Every company has risks, and we've spotted 2 warning signs for Packaging Corporation of America you should know about.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.

Four Days Left Until Packaging Corporation of America (NYSE:PKG) Trades Ex-Dividend

https://finance.yahoo.com/news/four-days-left-until-packaging-122215641.html

c55e6da2-e0d6-37a8-9019-c0e34fa95306

PLD

Boosting shareholders’ wealth, Prologis, Inc. PLD recently announced a 10.3% hike in its quarterly cash dividend to 96 cents per share from 87 cents paid out in the prior quarter. The increased dividend will be paid out on Mar 29 to shareholders of record as of Mar 18, 2024.The latest dividend rate marks an annualized amount of $3.84 per share compared with the prior rate of $3.48. Based on the company’s share price of $133.44 on Feb 22, the latest hike results in a dividend yield of 2.88%.Solid dividend payouts are the biggest enticements for real estate investment trust (REIT) investors and Prologis remains committed to that. Prior to this hike, In February 2023, the company’s board hiked its quarterly dividend by 10% to 87 cents per share. Moreover, Prologis has increased its dividend five times in the last five years and has a five-year annualized dividend growth rate of 13.33%. Check Prologis’ dividend history here.Prologis provides industrial distribution warehouse space in some of the busiest distribution markets worldwide. The properties of the company are typically located in large, supply-constrained infill markets in close proximity to airports, seaports and ground transportation facilities, which facilitates rapid distribution of customers’ products. Prologis’ strategically located facilities and its ability to generate sufficient cash flow through its operating platform are reflected in the latest hike.In the fourth quarter of 2023, 43.7 million square feet (msf) of leases commenced in the company’s owned and managed portfolio, with 36.8 msf in the operating portfolio and 6.9 msf in the development portfolio. The average occupancy level in Prologis’ owned and managed portfolio remained high at 97.1%.For 2024, management expects occupancy in the band of 96.50-97.50%, with occupancy likely to be down in the first quarter and improve for the remainder of 2024. The company projects its annual market rent growth will average between 4-6% over the next three years, with 2024 being modestly positive and ramping thereafter. Also, our estimate points to a year-over-year increase of 9.6% in rental revenues in 2024.Story continuesPrologis has capitalized on growth opportunities through acquisitions and developments. Its investments over the years comprised a wide array, including the largest M&A transactions in the real estate sector and individual off-market deals below $5 million.In 2023, the company’s share of building acquisitions amounted to $733 million. Development stabilization aggregated $3.15 billion, while development starts totaled $3.4 billion. For 2024, it anticipates acquisitions at Prologis share between $500 million and $1 billion, while development starts are expected in the range of $3.0-$3.5 billion.On the balance sheet front, this industrial REIT maintains a healthy balance sheet position, with no significant debt maturities until 2026. As of Dec 31, 2023, its liquidity amounted to $6 billion. It also enjoyed credit ratings of A3 (Outlook Stable) from Moody’s and A (Outlook Stable) from Standard & Poor’s, as of the same date, enabling it access to the debt market at favorable rates. Given its balance sheet strength, the company seems well-positioned to carry on with its growth endeavors.Moreover, Prologis’ return on equity (“ROE”) is 5.29%, significantly higher than the industry’s ROE of 3.05%. Prologis churns cash flow of $5.42 per share compared with the industry’s average of $1.77. Its projected sales growth of 9.56% is higher than the industry’s average of 3.14%.With ample financial flexibility, the company remains well-poised to respond to any challenges and bank on growth opportunities. Moreover, with a solid operating platform, opportunities for growth and a decent financial position compared with the industry, we expect the latest dividend rate to be sustainable.Shares of this Zacks Rank #3 (Hold) company have gained 19.1% over the past three months compared with the industry’s rise of 6.2%.Zacks Investment ResearchImage Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks from the REIT sector are EastGroup Properties EGP and SL Green Realty SLG, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for EGP’s 2024 funds from operations (FFO) per share is pegged at $8.29, suggesting year-over-year growth of 6.4%.The Zacks Consensus Estimate for SLG’s 2024 FFO per share stands at $5.88, indicating an increase of 19% from the year-ago reported figure.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.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 reportPrologis, Inc. (PLD) : Free Stock Analysis ReportSL Green Realty Corporation (SLG) : Free Stock Analysis ReportEastGroup Properties, Inc. (EGP) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Prologis (PLD) Rewards Investors With a 10.3% Dividend Hike

https://finance.yahoo.com/news/prologis-pld-rewards-investors-10-164800140.html

da4a35d9-f3e2-3fae-b748-5f81cf197fc0

PLD

Real estate investment trusts (REITs) are specifically structured to pass income on to shareholders. Prologis (NYSE: PLD) is no different from any other REIT in this regard, though it tends to be afforded a premium valuation much of the time. So its 2.6% dividend yield might seem a bit miserly -- until you find out that the dividend has grown at an annualized clip of more than 10% over the past decade. That's very attractive. And, given the REIT's $40 billion secret weapon, more robust dividend growth is likely in the years ahead. Here's what you need to know.Prologis is a one-stop warehouse shopPrologis has a market cap of around $120 billion. That is a huge figure for a REIT and makes this company one of the largest players in the broader REIT sector. However, Prologis is a very focused company. It owns around 5,500 warehouses. Looking at this from a different perspective, the REIT manages assets with over 1.2 billion square feet of rentable space.Image source: Getty Images.That's just the start, however, because its portfolio isn't just in one country -- it is spread around the world. North America, South America, Europe, and Asia are all covered, with properties in around 20 countries. All the assets Prologis owns are in important transportation hubs, which means demand is pretty strong for its properties. Better yet, with such a broadly diversified footprint, Prologis can offer its more than 6,700 customers a single business contact for multiple, geographically diverse locations.This REIT is an entrenched giant in the warehouse sector, and it would be very difficult to unseat it. But there's one more subtle factor here that investors should keep in mind, even though it often gets overlooked. Prologis has a $40 billion investment opportunity built right into its portfolio.How do you grow a REIT?The REIT model is pretty simple. REITs own large physical assets and rent them out to customers. But how does one grow a REIT? The answer is just as simple: You increase the number of assets the REIT owns. There are really just two ways to do this.Story continuesThe first, and most obvious, way to increase the size of a REIT's portfolio is to buy additional properties. That can happen on a one-off basis, through portfolio size transactions, or via the acquisition of a competitor. Prologis does all three.The second way to grow the portfolio would be to build new assets from the ground up. This is a longer process and has to start with owning land on which the REIT can build something. That's the key here. Prologis owns or controls around 8,000 acres of land in North America, over 2,200 acres in Europe, nearly 1,800 acres in South America, and about 100 acres in Asia. Most of this property is near assets the REIT already operates, so the land is well located and will easily slide right into the operating asset base.While it would take years for Prologis to build on all of that land, that's actually a net positive. It means that the REIT has years of growth already built into its portfolio. Management estimates that this is a $40 billion opportunity. But step back for a second and consider how big that really is by comparing it to the REIT's $120 billion market cap. This is a very big secret weapon and one to which investors should be paying a lot of attention.PLD Dividend Per Share (Annual) ChartA growth and income stalwartGiven Prologis' 2.6% dividend yield, it probably won't be of interest to investors looking to maximize the income their portfolios generate. But the rapid dividend growth, and the $40 billion opportunity to build on vacant land it already owns, suggest that growth and income investors should probably take a closer look at this industry giant.In the end, if you own the stock for long enough, a fast-growing dividend can provide more income than a slow-growing dividend. Prologis is the kind of company that long-term investors could learn to love more and more every year, even if they have a penchant for larger upfront income streams.Should you invest $1,000 in Prologis right now?Before you buy stock in Prologis, 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 Prologis 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 no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Prologis. The Motley Fool has a disclosure policy.This Dividend Stock's $40 Billion Secret Weapon was originally published by The Motley Fool

Motley Fool

This Dividend Stock's $40 Billion Secret Weapon

https://finance.yahoo.com/news/dividend-stocks-40-billion-secret-104200118.html

015d9e69-77ae-3409-9e4d-7e9b2174ba71

PLD

Prologis PLD is well-poised to capitalize on favorable conditions in the industrial real estate market due to its strong operational foundation and substantial scale. As a prominent player in this asset class, the company experiences healthy demand for its industrial real estate offerings, as evidenced by the strong performance of leasing and rental rates.Over the past years, due to the surge in e-commerce, the expansion of various industries and continuous endeavors to enhance supply-chain effectiveness, there has been a notable increase in the need for logistics infrastructure and streamlined distribution networks. This upswing has contributed to the thriving state of the industrial real estate market, which has been proving advantageous for companies like Prologis, STAG Industrial STAG and EastGroup Properties EGP.The future of supply chains hinges on the ability to remain resilient. Consequently, in the long run, apart from the fast adoption of e-commerce, logistics real estate is expected to benefit from an increase in inventory levels. This opens up opportunities for industrial property owners, including Prologis, STAG Industrial and EastGroup Properties, to thrive in a favorable market environment.In particular, PLD provides industrial distribution warehouse space in some of the busiest distribution markets worldwide. The company’s properties are typically located in large, supply-constrained infill markets in proximity to airports, seaports and ground transportation facilities, which facilitates the rapid distribution of customers’ products. The solid demand for Prologis’ strategically located facilities has driven healthy operating performance over the past few quarters.In the fourth quarter of 2023, 43.7 million square feet (msf) of leases commenced in the company’s owned and managed portfolio, with 36.8 msf in the operating portfolio and 6.9 msf in the development portfolio. The average occupancy level in Prologis’ owned and managed portfolio remained high at 97.1%. For 2024, management expects occupancy in the band of 96.50-97.50%. We estimate occupancy to be 97%. Also, our estimate points to a year-over-year increase of 9.6% in rental revenues in 2024.With healthy operating fundamentals in industrial real estate markets, Prologis has capitalized on growth opportunities through acquisitions and developments. Its investments over the years comprise a wide array, including the largest M&A transactions in the real estate sector and individual off-market deals below $5 million.In June 2023, it concluded the buyout of nearly 14 million square feet of industrial properties from opportunistic real estate funds affiliated with Blackstone for cash consideration of $3.1 billion. The move significantly enhanced Prologis’ presence in the key U.S. markets, poising it well for long-term growth.Moreover, the company’s share of building acquisitions amounted to $733 million in 2023. Development stabilization aggregated $3.15 billion, while development starts totaled $3.4 billion. Prologis’ investments over the years comprise a wide array, including the largest M&A transactions in the real estate sector and individual off-market deals below $5 million. For 2024, the company anticipates acquisitions at Prologis share between $500 million and $1 billion, while development starts are expected in the range of $3-$3.5 billion.PLD maintains a healthy balance sheet position with ample flexibility. This industrial REIT’s liquidity amounted to $6 billion as of Dec 31, 2023. The company's weighted average interest rate on its share of the total debt was 3%, with a weighted average term of 9.1 years. It has no significant debt maturities until 2026. Given its balance sheet strength and prudent financial management, the company is well-poised to capitalize on long-term growth opportunities.Moreover, solid dividend payouts are arguably the biggest enticements for REIT shareholders, and Prologis is committed to that. In February 2024, the company’s board hiked its quarterly dividend by 10.3% to 96 cents per share from 87 cents paid earlier, taking the annualized dividend to $3.84 per share. In the last five years, Prologis has increased its dividend six times, and its five-year annualized dividend growth rate is 13.33%. Check Prologis’ dividend history here.Given the company’s solid operating platform, opportunities for growth, a decent financial position compared with the industry and our year-over-year growth projection of 6.8% in the first-quarter 2024 core FFO, this dividend rate is expected to be sustainable over the near term.Shares of Prologis have rallied 11% over the past three months, outperforming the industry’s increase of 6.1%. PLD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Story continuesZacks Investment ResearchImage Source: Zacks Investment ResearchHowever, with the asset category being attractive even during challenging times, there is a development boom in many markets. This high supply is likely to fuel competition and curb pricing power. New supply is likely to create pressure on vacancy levels and rent growth to some extent in some of the company’s markets in the upcoming quarters. Management expects vacancy rates to increase throughout the first half of 2024, peaking at 6-6.1%.Moreover, a high interest rate is a concern for Prologis. Elevated rates imply higher borrowing costs for the company, affecting its ability to purchase or develop real estate. The company’s consolidated debt as of Dec 31, 2023 was $29 billion. For 2024, our estimate indicates a 1.4% year-over-year increase in the company’s interest expenses. Further, with high interest rates in place, the dividend payout might seem less attractive than the yields on fixed-income and money market accounts.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.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 reportPrologis, Inc. (PLD) : Free Stock Analysis ReportStag Industrial, Inc. (STAG) : Free Stock Analysis ReportEastGroup Properties, Inc. (EGP) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Here's Why You Should Hold Prologis (PLD) Stock in Your Kitty

https://finance.yahoo.com/news/heres-why-hold-prologis-pld-141800528.html

4c475511-8fe0-323b-9c85-a83d5d31511b

PLD

Prologis (PLD) closed at $134.12 in the latest trading session, marking a -0.7% move from the prior day. This move lagged the S&P 500's daily loss of 0.11%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 0.41%.Shares of the industrial real estate developer have appreciated by 1.96% over the course of the past month, underperforming the Finance sector's gain of 4.89% and the S&P 500's gain of 2.7%.Analysts and investors alike will be keeping a close eye on the performance of Prologis in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.29, signifying a 5.74% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.81 billion, reflecting a 10.91% rise from the equivalent quarter last year.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.50 per share and a revenue of $7.5 billion, indicating changes of -1.96% and +10.05%, respectively, from the former year.Investors might also notice recent changes to analyst estimates for Prologis. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Prologis is carrying a Zacks Rank of #3 (Hold).Story continuesWith respect to valuation, Prologis is currently being traded at a Forward P/E ratio of 24.55. This represents a premium compared to its industry's average Forward P/E of 11.31.Also, we should mention that PLD has a PEG ratio of 2.7. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the REIT and Equity Trust - Other industry held an average PEG ratio of 2.4.The REIT and Equity Trust - Other industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 147, finds itself in the bottom 42% echelons of all 250+ industries.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.To follow PLD in the coming trading sessions, be sure to utilize Zacks.com.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 reportPrologis, Inc. (PLD) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Prologis (PLD) Dipped More Than Broader Market Today

https://finance.yahoo.com/news/why-prologis-pld-dipped-more-221518708.html

b1136ba0-a7ea-3e1b-8595-96c14183b8a8

PM

Consumers have more nicotine alternatives than ever and they’re making the switch faster than expected, putting fresh pressure on tobacco giants.Continue reading

The Wall Street Journal

Cigarettes Are Losing Their Hold on the Nicotine Fix

https://finance.yahoo.com/m/75e49348-7188-33ee-9ce9-4e31ee75ab5e/cigarettes-are-losing-their.html

75e49348-7188-33ee-9ce9-4e31ee75ab5e

PM

For Immediate ReleaseChicago, IL – February 26, 2024 – Today, Zacks Equity Research discusses Philip Morris International Inc. PM, Altria Group, Inc. MO and 22nd Century Group, Inc. XXII.Industry: TobaccoLink: https://www.zacks.com/commentary/2230687/3-tobacco-stocks-grabbing-attention-on-solid-industry-trendsThe Zacks Tobacco industry participants have been focused on strengthening their arms in the smoke-free product arena owing to consumers' rising health consciousness. Strong pricing power has also been working well for tobacco players.These upsides have been helping companies navigate a tough industry landscape, wherein inflation has impacted Adult Tobacco Consumers' ("ATC") spending patterns, thereby affecting companies' volumes. All said, Philip Morris International Inc., Altria Group, Inc. and 22nd Century Group, Inc. appear to be well-placed for growth.About the IndustryThe Zacks Tobacco industry includes companies that manufacture and sell cigarettes as well as tobacco and nicotine-based products, such as cigars, snuffs and oral tobacco. Some companies also offer RRPs, such as e-cigarettes, vaping and heat-not-burn variants. A few of the firms are engaged in making devices and attachments needed in vaping and heat-not-burn products.Most products manufactured by the tobacco industry participants fall under the strict vigilance of the U.S. Food and Drug Administration ("FDA") and are required to follow the permissible levels of nicotine in manufacturing. Players in this space sell products mostly through large retailers, distributors, convenience stores, drugstores, wholesalers and grocery chains. Additionally, some international tobacco firms operate in the country through subsidiaries.4 Trends Shaping the Future of the Tobacco IndustryPricing Power: Players in the tobacco industry have been leveraging the strong pricing influence of tobacco products, which also helps them make up for high taxes and soft cigarette sales volumes. Since smokers tend to be less responsive to price hikes due to their addiction, this approach is anticipated to continue benefiting companies within the tobacco sector. The prudent pricing of cigarettes has been supporting the revenues of players in the tobacco industry in the face of declining volumes.Story continuesSmoke-Free Products Gain Prominence: Rising health consciousness and stringent government regulations aimed at reducing cigarette smoking have driven many consumers toward reduced-risk products (RRPs) or smoke-free alternatives. These products are promoted as having a less adverse impact on health due to their scientific composition and way of consumption.An increasing number of consumers are turning to these alternatives as a means to quit smoking traditional cigarettes. Major players in the tobacco industry have been allocating resources to expand their presence in this category, including investing in innovations to make these products more user-friendly and energy-efficient.Companies have been experiencing significant revenue growth in the RRP or smoke-free product space. Philip Morris and British American Tobacco have been proactively working toward transitioning into predominantly smoke-free companies in the coming years. The resilience of these products is likely to continue delivering favorable outcomes for industry participants as they undergo business transformations.Cigarette Volume Concerns: The industry is battling challenges related to the inflationary environment, which has influenced consumer spending habits. Given the ever-changing external landscape, economic factors like inflation, increased interest rates, global supply-chain hurdles and ATC dynamics, such as purchasing patterns, the adoption of smoke-free products and disposable income, are likely to impact cigarette sales volumes.Further, cigarette volumes have been affected by strict government regulations pertaining to sales, marketing and manufacturing. Such regulatory norms are imposed due to health hazards caused by the consumption of nicotine. Some guidelines issued by the FDA include the mandatory use of precautionary labels on cigarette packets and self-critical advertisements. As cigarette sales constitute a significant portion of revenues for tobacco industry companies, the decrease in sales volumes within this category raises concerns.Cost Pressures: The performance of numerous industry participants has been adversely affected by cost inflation. Global inflationary challenges linked to essential materials such as tobacco leaf, energy and labor costs have been a worry. Elevated expenses related to the research, development and marketplace activities of smoke-free products further present risks to profit margins.Zacks Industry Rank Indicates Good ProspectsThe Zacks Tobacco industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #104, which places it in the top 41% 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 bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.Industry vs. Broader MarketThe Zacks Tobacco industry has underperformed the Zacks S&P 500 composite as well as the broader Zacks Consumer Staple sector over the past year.The industry has declined 13.7% over this period compared with the broader sector's drop of 3.9%. Meanwhile, the S&P 500 has risen 26.4% in the said time frame.Industry's Current ValuationOn the basis of forward 12-month price-to-earnings (P/E), which is commonly used for valuing consumer staple stocks, the industry is currently trading at 9.29X compared with the S&P 500's 20.61X and the sector's 17.34X.Over the past five years, the industry has traded as high as 13.18X, as low as 9.1X and at the median of 10.79X.3 Tobacco Stocks to Keep a Close Eye OnPhilip Morris International: The company has been benefiting from its robust pricing actions. Additionally, this Zacks Rank #3 (Hold) company's focus on smoke-free products, aligning with changing consumer preferences, has helped it firm its position. Philip Morris is on track to achieve its goal of transitioning into a primarily smoke-free entity by 2025.The company expects 2024 to be another strong year, backed by organic smoke-free net revenue and profit growth. The success of the company's smoke-free portfolio is led by the outstanding performance of flagship premium brands, IQOS and ZYN. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for PM's 2024 EPS has dropped from $6.45 to $6.40 in the past seven days. Shares of Philip Morris have slipped 3.1% in the past six months.Altria Group: The Zacks Rank #3 company has been showing resilience amid a tough landscape through its pricing power and focus on smoke-free alternatives. Altria's investment in on! is proving to be fruitful in this regard. The acquisition of NJOY Holdings marks another significant development in the e-vapor category. MO highlighted its 2028 Enterprise Goals at its 2023 Investor Day, as part of which it targets generating mid-single-digit adjusted EPS growth through 2028 (on a compounded annual basis).Altria shares have declined 5.8% in the past six months. The Zacks Consensus Estimate for MO's 2023 EPS has dipped by a penny to $5.07 over the past seven days.22nd Century Group: The agricultural biotechnology company is renowned for its efforts in reducing tobacco harm and developing reduced nicotine tobacco products. This Zacks Rank #3 company has been on track to reduce operating costs. Incidentally, 22nd Century Group recently divested its hemp/cannabis operations, which will help it lower its cost burden considerably, taking the company closer to its goal of generating cash-positive operations.The Zacks Consensus Estimate for 22nd Century Group's 2024 bottom line has remained unchanged at a loss of $4.30 over the past 30 days. Shares of XXII have declined 92% in the past six months.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 reportAltria Group, Inc. (MO) : Free Stock Analysis ReportPhilip Morris International Inc. (PM) : Free Stock Analysis Report22nd Century Group, Inc (XXII) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Zacks Industry Outlook Highlights Philip Morris International, Altria and 22nd Century Group

https://finance.yahoo.com/news/zacks-industry-outlook-highlights-philip-143200863.html

e932fdf9-b219-3c69-b43a-7031663ee6a2

PM

Archer Daniels Midland Company ADM is slated to report  fourth-quarter 2023 results on Mar 12, before market open. The company is likely to report top and bottom-line declines when it posts the fourth-quarter 2023 results.The Zacks Consensus Estimate for the company’s quarterly earnings is pegged at $1.42 per share, which suggests a decline of 26.4% from the year-ago quarter’s reported figure. The consensus mark has been stable in the past 30 days. For fourth-quarter 2023 revenues, the consensus mark is pegged at $23.7 billion, suggesting a 9.8% decline from the year-ago quarter’s reported figure.In the last reported quarter, the company delivered an earnings surprise of 8.7%. Its earnings outperformed the Zacks Consensus Estimate by 16.9%, on average, in the trailing four quarters.Key Factors to NoteArcher Daniels is exposed to headwinds, including higher performance-related compensation, project-related costs and shifting costs from business segments into the centralized centers of excellence in the supply chain and operations. These are likely to have led to a continued rise in SG&A expenses in the to-be-reported quarter. As a percentage of sales, we expect SG&A expenses to increase 20 basis points to 3.6% in the fourth quarter.Archer Daniels Midland Company Price and EPS Surprise Archer Daniels Midland Company Price and EPS SurpriseArcher Daniels Midland Company price-eps-surprise | Archer Daniels Midland Company Quote The company is also not immune to the global impacts of inflation. It expects corporate costs for 2023 to be $1.5 billion, driven primarily by inflation and higher interest expenses. This is likely to have impacted the company’s fourth-quarter performance, affecting margins. We note that the company has been witnessing a downside driven by an ongoing investigation of its accounting practices, particularly in the Nutrition segment. It has been grappling with sluggish performance in its Nutrition segment. We anticipate the segment’s sales to drop 4.5% year over year.Nonetheless, Archer Daniels has been gaining from solid demand, improved productivity and product innovations. Also, the company has been witnessing improved crush margins. Robust demand for ethanol and biofuels raises optimism about ethanol and biofuel margins. Gains from these efforts are likely to have provided some cushion to the company’s quarterly performance.On its last earnings call, management had anticipated the Ag Services and Oilseeds unit to deliver solid results, that are slightly lower than the prior year, in fourth-quarter 2023. It projected Ag Services’ results to be in line with the prior year. It had predicted similar year-over-year North American export volumes, a competitive South American export program and solid performance from the global trade. Management expected the crushing subsegment to generate strong results similar to the year-ago period. For the fourth quarter, it had predicted steady demand and margins for starches, sweeteners and wheat flower products.Story continuesWhat the Zacks Model UnveilsOur proven model does not conclusively predict an earnings beat for Archer Daniels this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Archer Daniels currently has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell).Stocks With Favorable CombinationHere are some companies, which according to our model,  have the right combination of elements to deliver an earnings beat.Ollie's Bargain Outlet OLLI currently has an Earnings ESP of +1.12% and a Zacks Rank of 3. The company is anticipated to register top and bottom-line growth in fourth-quarter fiscal 2023. The Zacks Consensus Estimate for OLLI’s quarterly revenues is pegged at $649.1 million, suggesting growth of 18.1% from the figure reported in the year-ago quarter.You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for Ollie's quarterly earnings has been unchanged in the past 30 days at $1.16 per share, suggesting 38.1% growth from the year-ago quarter's reported number. OLLI delivered an earnings surprise of 7%, on average, in the trailing four quarters.Simply Good Foods SMPL currently has an Earnings ESP of +1.06% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for SMPL’s quarterly earnings has been unchanged in the past 30 days at 56 cents per share, suggesting growth of 19.2% from the year-ago quarter's reported number.The consensus estimate for Simply Good’s quarterly revenues is pegged at $1.13 billion, which suggests growth of 4.3% from the figure reported in the year-ago quarter. SMPL delivered an earnings surprise of 4.7%, on average, in the trailing four quarters.Philip Morris International PM currently has an Earnings ESP of +0.11% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports first-quarter 2024 results. The Zacks Consensus Estimate for PM’s quarterly revenues is pegged at $8.4 billion, which suggests growth of 3.5% from the figure reported in the prior-year quarter.The consensus estimate for Philip Morris’ bottom line has moved down 2.8% in the past 30 days to $1.40 per share, which suggests growth of 1.5% from the figure reported in the year-ago quarter. PM has delivered an earnings surprise of 2.5%, on average, in the trailing four quarters.Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.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 reportPhilip Morris International Inc. (PM) : Free Stock Analysis ReportThe Simply Good Foods Company (SMPL) : Free Stock Analysis ReportOllie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Archer Daniels (ADM) to Post Q4 Earnings: What's in The Cards?

https://finance.yahoo.com/news/archer-daniels-adm-post-q4-161200065.html

cd0258ce-0e7e-3f1d-abfc-ac5b65f9b9f8

PM

Tobacco stocks have long been ripe territory for income investors, and after years of consolidation and decline, the industry has been whittled down to three major players: Altria (NYSE: MO) and Philip Morris International (NYSE: PM), which were once part of the same company; and British American Tobacco. BAT deserves consideration from income investors open to tobacco stocks, but here we'll focus on just Altria and Philip Morris, two companies with similar product portfolios and who have a history of working together.When the old Philip Morris split in 2008 into Philip Morris International and Altria, which is the parent of Philip Morris USA, PMI took the territory outside the U.S., while Altria retained domestic operations, and the two companies have evolved since. Let's take a look at how the two stocks stack up in various categories to see which is the better buy today.Image source: Getty Images.The state of the business: Altria vs. Philip MorrisBoth tobacco stocks are subject to similar industry trends, including declining cigarette consumption. In its fourth-quarter earnings report, Altria reported a 7.6% decline in cigarette shipment volumes to 18.2 billion, and overall revenue, excluding excise taxes, fell 2.4% to $4.35 billion.Historically, Altria has made up for falling cigarette volumes by raising prices, and it's also looked to new businesses to deliver growth. However, most of those attempts have fallen flat. In 2018, it spent $12.8 billion to acquire a 35% stake in Juul Labs, though a regulatory crackdown erased nearly all the value of that investment, and what's left of it now is some heated tobacco intellectual property rights.An investment in Canadian cannabis grower Cronos Group also led to write-downs and losses, as that industry has underperformed since Canadian legalization.Now, Altria is pinning its hopes on NJOY, which it acquired a year ago for $2.75 billion in cash. NJOY brings a diverse portfolio of both disposable e-cigarettes, branded Daily, and a vape with reusable pods, Ace. NJOY's revenue is believed to be a fraction of Altria's, so its value is in its own growth potential. Altria also sold the commercialization rights in the U.S. for Philip Morris International's heat-not-burn system IQOS back to PMI, showing that it's solely focused on NJOY as its next-gen product.Story continuesBy comparison, Philip Morris seems to have several advantages over Altria. It reported a decline in cigarette volume of just 1.9% to 151.1 billion, as international markets have faced less tobacco regulation as the U.S. has. Philip Morris has also done better at developing its next-gen business as sales of its heated tobacco units (HTUs), largely IQOS, rose 6.1% to 34 billion, which is more cigarettes than Altria sold in total. PMI's purchase of IQOS rights for the U.S. from Altria for $2.7 billion indicates confidence that it can make that product successful in the U.S.Because of its success in HTUs, Philip Morris's overall product shipment volume is nearly flat, and it is on the verge of driving positive growth as HTUs, which were up 6.1% in the latest quarter, replacing cigarettes. More than any other tobacco stock, Philip Morris has found success with next-gen products. That's led to solid revenue growth as well, with adjusted revenue up 8.3% to $9 billion in the fourth quarter.Profitability: Altria vs. Philip MorrisWhile Philip Morris is growing revenue faster than Altria, it's the more profitable of the two companies based on margins, which is likely a reflection of much of its sales coming from the premium Marlboro brand, and the increased disposable income in the U.S. Altria recorded an adjusted operating income margin of 59.9% last year, compared to 33% for Philip Morris.Still, Philip Morris managed to grow adjusted operating income by 3.7%, while Altria's was flat.Valuation and yield: Altria vs. Philip MorrisAltria currently trades at a price-to-earnings ratio of 8.3 and offers an impressive dividend yield of 9.6%. Philip Morris, on the other hand, offers a P/E of 17.2 and a dividend yield of 5.8%. That gives Altria a clear edge here.And the winner is...Altria might be more appealing to dividend investors strictly looking for yield, but Philip Morris is the better choice. The company has a much brighter future as its next-gen business has reached scale and cigarette volumes are declining more slowly, and it doesn't face the same regulatory restrictions that Altria does.Altria's dividend does look safe for now, but it can't rely on raising cigarette prices forever. While the NJOY acquisition could pay off, it could also take years for it to positively impact the bottom line. Only one of these stocks offers growth, stability, and high yield, and that's Philip Morris.Should you invest $1,000 in Philip Morris International right now?Before you buy stock in Philip Morris International, 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 Philip Morris International 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, 2024Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool recommends British American Tobacco P.l.c. and Philip Morris International and recommends the following options: long January 2026 $40 calls on British American Tobacco and short January 2026 $40 puts on British American Tobacco. The Motley Fool has a disclosure policy.Better High-Yield Dividend Stock to Buy: Altria vs. Philip Morris was originally published by The Motley Fool

Motley Fool

Better High-Yield Dividend Stock to Buy: Altria vs. Philip Morris

https://finance.yahoo.com/news/better-high-yield-dividend-stock-150900340.html

c4e48750-fda2-31e9-9735-decf02d88433

PNC

PNC Financial Services Group (NYSE:PNC) Full Year 2023 ResultsKey Financial ResultsRevenue: US$20.7b (flat on FY 2022).Net income: US$5.13b (down 10% from FY 2022).Profit margin: 25% (down from 28% in FY 2022).EPS: US$12.78 (down from US$13.85 in FY 2022).earnings-and-revenue-growthAll figures shown in the chart above are for the trailing 12 month (TTM) periodPNC Financial Services Group EPS Misses ExpectationsRevenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.4%.Looking ahead, revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Banks industry in the US.Performance of the American Banks industry.The company's shares are down 1.8% from a week ago.Balance Sheet AnalysisJust as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet. We have a graphic representation of PNC Financial Services Group's balance sheet and an in-depth analysis of the company's financial position.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.

PNC Financial Services Group Full Year 2023 Earnings: EPS Misses Expectations

https://finance.yahoo.com/news/pnc-financial-services-group-full-124758170.html

2b0e968e-8efe-36b7-ab4a-4e0a77e22e8d

PNC

The PNC Financial Services Group, Inc (PNC) closed the latest trading day at $144.85, indicating a -0.87% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.13%.Coming into today, shares of the company had lost 3.61% in the past month. In that same time, the Finance sector gained 3.85%, while the S&P 500 gained 4.74%.Analysts and investors alike will be keeping a close eye on the performance of The PNC Financial Services Group, Inc in its upcoming earnings disclosure. The company is expected to report EPS of $3.06, down 23.12% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.2 billion, down 7.21% from the year-ago period.For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.28 per share and a revenue of $21.2 billion, signifying shifts of -12.91% and -1.34%, respectively, from the last year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for The PNC Financial Services Group, Inc. 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.The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% increase. The PNC Financial Services Group, Inc is currently sporting a Zacks Rank of #3 (Hold).Story continuesIn terms of valuation, The PNC Financial Services Group, Inc is presently being traded at a Forward P/E ratio of 11.9. This represents a premium compared to its industry's average Forward P/E of 10.54.One should further note that PNC currently holds a PEG ratio of 1.7. 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. As of the close of trade yesterday, the Banks - Major Regional industry held an average PEG ratio of 1.52.The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% of all 250+ industries.The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.You can find more information on all of these metrics, and much more, on Zacks.com.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 PNC Financial Services Group, Inc (PNC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

The PNC Financial Services Group, Inc (PNC) Suffers a Larger Drop Than the General Market: Key Insights

https://finance.yahoo.com/news/pnc-financial-services-group-inc-230005416.html

2b39dc5b-676a-3b88-b977-5f733a2262f9

PNC

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Growth & Income Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The S&P 500 Index rose 11.7% in Q4 and 26.3% for the year. Investors became more comfortable that the U.S. Federal Reserve was done with raising interest rates, leading to a decrease of over 70 basis points in 10-year U.S. Treasury yields. The Federal Reserve’s core Personal Consumption Expenditures (PCE) Price Index has been moderating on a year-over-year basis, easing concerns about interest rates. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.Carillon Eagle Growth & Income Fund featured stocks like The PNC Financial Services Group, Inc. (NYSE:PNC) in the fourth quarter 2023 investor letter. Headquartered in Pittsburgh, Pennsylvania, The PNC Financial Services Group, Inc. (NYSE:PNC) is a diversified financial services company. On March 8, 2024, The PNC Financial Services Group, Inc. (NYSE:PNC) stock closed at $150.33 per share. One-month return of The PNC Financial Services Group, Inc. (NYSE:PNC) was 0.80%, and its shares gained 15.59% of their value over the last 52 weeks. The PNC Financial Services Group, Inc. (NYSE:PNC) has a market capitalization of $59.802 billion.Carillon Eagle Growth & Income Fund stated the following regarding The PNC Financial Services Group, Inc. (NYSE:PNC) in its fourth quarter 2023 investor letter:"The PNC Financial Services Group, Inc. (NYSE:PNC) and JPMorgan performed well due to more benign inflation data, which the market likely interpreted as a sign that a recession is now less likely to occur. Recall that historically speaking, banks are hyper-cyclical stocks and typically will trade lower if investors foresee a recession, because recessions tend to trigger loan losses."A view of a busy banking hall, customers engaging with banking staff to conduct their financial transactions.Story continuesThe PNC Financial Services Group, Inc. (NYSE:PNC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, The PNC Financial Services Group, Inc. (NYSE:PNC) was held by 37 hedge fund portfolios, down from 45 in the previous quarter, according to our database.We discussed The PNC Financial Services Group, Inc. (NYSE:PNC) in another article and shared the list of best regional bank dividend stocks to buy. 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:15 States for Couples Retiring on Just Social Security in the US40 Most Polluted Cities in the World in 202420 Countries that Spend the Most on Research and DevelopmentDisclosure: None. This article is originally published at Insider Monkey.

Insider Monkey

Benign Inflation Data Pushed The PNC Financial Services Group (PNC)

https://finance.yahoo.com/news/benign-inflation-data-pushed-pnc-075251749.html

2efaed1d-5874-372c-bc4e-0797bf584132

PNC

In the latest trading session, The PNC Financial Services Group, Inc (PNC) closed at $152.84, marking a +1.67% move from the previous day. The stock outpaced 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 company witnessed a gain of 1.73% over the previous month, trailing the performance of the Finance sector with its gain of 4.89% and the S&P 500's gain of 2.7%.Market participants will be closely following the financial results of The PNC Financial Services Group, Inc in its upcoming release. The company plans to announce its earnings on April 16, 2024. It is anticipated that the company will report an EPS of $3.05, marking a 23.37% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.2 billion, indicating a 7.21% decrease compared to the same quarter of the previous year.For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.29 per share and a revenue of $21.2 billion, representing changes of -12.84% and -1.34%, respectively, from the prior year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for The PNC Financial Services Group, Inc. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.07% decrease. At present, The PNC Financial Services Group, Inc boasts a Zacks Rank of #3 (Hold).Story continuesIn terms of valuation, The PNC Financial Services Group, Inc is presently being traded at a Forward P/E ratio of 12.23. This valuation marks a premium compared to its industry's average Forward P/E of 11.17.One should further note that PNC currently holds a PEG ratio of 1.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Banks - Major Regional industry had an average PEG ratio of 1.59 as trading concluded yesterday.The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 48, putting it in the top 20% 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.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 reportThe PNC Financial Services Group, Inc (PNC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

The PNC Financial Services Group, Inc (PNC) Ascends While Market Falls: Some Facts to Note

https://finance.yahoo.com/news/pnc-financial-services-group-inc-221520773.html

18519cba-fdb1-35fa-be3b-ac31149cceba

PNR

LONDON, February 19, 2024--(BUSINESS WIRE)--Pentair plc (NYSE: PNR) announced today that it will pay a regular quarterly cash dividend of $0.23 per share on May 3, 2024 to shareholders of record at the close of business on April 19, 2024. 2024 marks the 48th consecutive year that Pentair has increased its dividend.ABOUT PENTAIR PLCAt Pentair, we help the world sustainably move, improve and enjoy water, life’s most essential resource. From our residential and business water solutions, to industrial water management and everything in between, Pentair is focused on smart, sustainable water solutions that help our planet and people thrive.Pentair had revenue in 2023 of approximately $4.1 billion, and trades under the ticker symbol PNR. With approximately 10,500 global employees serving customers in more than 150 countries, we work to help improve lives and the environment around the world. To learn more, visit Pentair.com.View source version on businesswire.com: https://www.businesswire.com/news/home/20240219738738/en/ContactsPentair Contacts:Shelly HubbardVice President, Investor RelationsTel: 763-656-5575E-mail: [email protected] Rebecca OsbornDirector, CommunicationsTel: 763-656-5589Email: [email protected]

Business Wire

Pentair Announces Quarterly Cash Dividend

https://finance.yahoo.com/news/pentair-announces-quarterly-cash-dividend-211900244.html

ab956ff8-4807-3ef5-be64-7956a9656f46

PNR

Strengths highlight Pentair's innovative product range and strong market presence.Weaknesses underscore the challenges in raw material procurement and labor force management.Opportunities emphasize the potential in emerging markets and sustainable water solutions.Threats consider the impact of economic fluctuations and intense competition.On February 20, 2024, Pentair PLC (NYSE:PNR), a global leader in the water treatment industry, filed its 10-K with the SEC, providing a comprehensive overview of its financial health and operational strategies. With a workforce of 10,500 employees and operations across 25 countries, Pentair has cemented its position in the market through its three core segments: Flow, Water Solutions, and Pool. The company reported a robust revenue of approximately $4.1 billion for the fiscal year ended December 31, 2023, reflecting its strong financial standing and market reach. This SWOT analysis delves into the intricacies of Pentair's financial filings to offer investors a clear picture of its strengths, weaknesses, opportunities, and threats, guiding informed investment decisions.Warning! GuruFocus has detected 8 Warning Sign with PNR.Decoding Pentair PLC (PNR): A Strategic SWOT InsightStrengthsBrand and Innovation Leadership: Pentair PLC (NYSE:PNR) stands out in the water treatment industry with its strong brand recognition and commitment to innovation. The company's extensive product portfolio, which includes energy-efficient swimming pool equipment, filtration solutions, and commercial and industrial pumps, is a testament to its focus on quality and sustainability. Pentair's brand names, such as Everpure, Fleck, and Sta-Rite, are synonymous with reliability and performance, which has helped the company secure a loyal customer base. The acquisition of Manitowoc Ice in July 2022 for $1.6 billion further demonstrates Pentair's strategic growth initiatives and its dedication to expanding its water solutions offerings.Financial Robustness: Pentair's financial performance is a cornerstone of its strength. With a revenue of $4.1 billion in 2023, the company showcases a solid balance sheet. The Pool segment, in particular, has been a significant contributor, with one customer accounting for approximately 15% of Pentair's consolidated net sales in 2023. This financial robustness provides Pentair with the capital necessary to invest in research and development, enabling continuous improvement of its product lines and maintaining its competitive edge in the market.Story continuesWeaknessesSupply Chain and Raw Material Vulnerabilities: Despite its strong market position, Pentair faces challenges in its supply chain, particularly in the procurement of raw materials like steel, electronic components, and plastics. Global container transportation delays and volatile market trends have the potential to affect raw material availability and lead times. This vulnerability could impact Pentair's ability to meet customer demand promptly and maintain its reputation for quality and service.Labor Force Management: Pentair's success is heavily reliant on its ability to attract, develop, and retain a skilled workforce. While the company has a relatively small portion of unionized employees in the U.S., it must navigate complex labor relations, particularly in Europe where employee representative organizations are more prevalent. The need to offer competitive wages and benefits to retain top talent adds to the operational costs and could affect Pentair's profitability if not managed effectively.OpportunitiesEmerging Market Expansion: Pentair is well-positioned to capitalize on the growing demand for water treatment solutions in emerging markets. With its strong brand presence and innovative product range, the company can leverage its expertise to tap into new geographical regions, where the need for clean and sustainable water solutions is rapidly increasing. This expansion could lead to significant revenue growth and diversification of Pentair's customer base.Sustainability Trend Alignment: The global shift towards sustainability presents a substantial opportunity for Pentair. The company's focus on energy-efficient and eco-friendly products aligns with the increasing consumer and regulatory demand for sustainable solutions. By continuing to innovate in this area, Pentair can strengthen its market leadership and attract environmentally conscious customers, further driving sales and brand loyalty.ThreatsEconomic Fluctuations: Pentair's international operations expose it to risks associated with global economic conditions. Currency exchange rate volatility, particularly the strengthening of the U.S. dollar against the euro, could adversely affect the company's financial results. Additionally, economic downturns in key markets could lead to reduced demand for Pentair's products, impacting its revenue and growth prospects.Intense Competition: The water treatment industry is highly competitive, with numerous domestic and international players vying for market share. Some competitors have substantially greater resources, which could challenge Pentair's ability to maintain its competitive position. The company must continuously innovate and offer high-quality, competitively priced products to stay ahead of its rivals and protect its market share.In conclusion, Pentair PLC (NYSE:PNR) exhibits a robust set of strengths, including a strong brand reputation, innovative product offerings, and solid financial performance. However, it must address weaknesses related to supply chain vulnerabilities and labor force management to sustain its competitive edge. Opportunities for growth in emerging markets and the sustainability trend present promising avenues for expansion, while economic fluctuations and intense competition pose significant threats. By strategically leveraging its strengths and opportunities while mitigating its weaknesses and threats, Pentair is poised to maintain its leadership in the water treatment industry.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 Pentair PLC (PNR): A Strategic SWOT Insight

https://finance.yahoo.com/news/decoding-pentair-plc-pnr-strategic-050814385.html

6d090680-63c4-30de-b5ac-80b8c5627b7d

PNR

Pentair plc (PNR) shares scaled a new 52-week high of $80.14 on Mar 06 before closing the session lower at $79.17. Shares rallied after the company hosted its 2024 Investor Day on the same day.PNR has a market capitalization of $12.8 billion. The company’s shares have gained 44.7% over the past year compared with the industry’s 8.9% growth. Zacks Investment ResearchImage Source: Zacks Investment Research What’s Driving Pentair?Upbeat Long-term Outlook: Pentair expects adjusted earnings per share of $4.15 to $4.25 in 2024. The company reported adjusted earnings per share of $3.75 in 2023. The mid-point of the range indicates year-over-year growth of 12% at the mid-point.In the recent Investor Day’s presentation, the company announced its expectation of a low-double-digit adjusted EPS (CAGR)  by 2026 from 2024. Sales (CAGR) is expected to grow in the mid-single digits from 2024 to 2026.Resilient  2023 Performance: Pentair has delivered improved performances in the Flow and Water Solutions segments, which helped offset the impacts of weak pool volumes over the past few quarters. The company also delivered margin expansion across its segments in 2023, primarily driven by pricing, cost-cutting initiatives and progress on its Transformation initiatives.This is commendable, considering the weakness in the pool segment’s sales due to the channel inventory correction throughout the year. Per the company, this situation will not likely recur in 2024. It also expects gains from the transformation initiatives to accelerate.Focus on Growth: Pentair is focused on expanding digital transformation, innovation, technology and brand building. The company has a strong product pipeline. Its new IF3 pump was soft-launched this year and backed by positive feedback. Pentair sees this as an opportunity to build on its leading technology position in pool pumps.The company has embarked on a Transformation program to accelerate growth and drive margin expansion. The program is structured in multiple phases and is expected to drive operational efficiency, streamline processes and reduce complexity, while meeting financial objectives.Aided by this, the company delivered an adjusted return on sales (ROS) of 20.8% in 2023. It recently announced that it expects its returns on sales to expand to 24%  in 2026 from 2022, aided by its transformation initiatives. Also, the company has been engaged in restructuring activities to cut down fixed costs and realign the business, which is expected to aid earnings.Solid Balance Sheet: Over the past five years, Pentair has generated a cumulative free cash flow of more than $2 billion. It has a long-term target to consistently generate free cash flow greater than 100% conversion of net income.The company’s total debt to total capital ratio was 0.38 at the end of 2023, lower than 0.46 as of 2022 end. It has no significant long-term debt maturing in the next five years. Pentair's times interest earned is pegged at 6.2. Its strong balance sheet positions it well for growth.PNR raised its quarterly dividend by 5% to 23 cents per share. This marks the 48th consecutive year of the company raising its dividend.Story continuesZacks Rank and Stocks to ConsiderPentair currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the Industrial Products sector are Cadre Holdings, Inc. CDRE, AZZ Inc. AZZ and Proto Labs, Inc. PRLB. CDRE currently sports a Zacks Rank #1 (Strong Buy), and AZZ and PRLB carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.15 per share. The consensus estimate for 2024 earnings has moved 6% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 72% in the past year.The Zacks Consensus Estimate for AZZ’s fiscal 2024 earnings per share is pegged at $4.19. The consensus estimate for 2024 earnings has moved north by 2% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 37.6%. AZZ shares have rallied 76.7% in the past year.The Zacks Consensus Estimate for Proto Labs’ 2024 earnings is pegged at $1.62 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days and suggests year-over-year growth of 1.9%. The company has a trailing four-quarter average earnings surprise of 42.2%. PRLB shares have gained 15.7% in the past 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 reportAZZ Inc. (AZZ) : Free Stock Analysis ReportPentair plc (PNR) : Free Stock Analysis ReportProto Labs, Inc. (PRLB) : Free Stock Analysis ReportCadre Holdings, Inc. (CDRE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Pentair (PNR) Hits 52-Week High: What's Aiding Its Rally?

https://finance.yahoo.com/news/pentair-pnr-hits-52-week-174700821.html

b1dfe64a-ade7-381d-b74a-8eeffe05fcda

PNR

LONDON, March 11, 2024--(BUSINESS WIRE)--Pentair plc (NYSE:PNR), a leader in helping the world sustainably move, improve, and enjoy water, life’s most essential resource, will be presenting at the J.P. Morgan Industrials Conference on March 12, 2024.President and Chief Executive Officer John L. Stauch will present at approximately 10:00 a.m. ET. A live audio webcast of the presentation can be accessed through the "Investor Relations" section of Pentair’s website (www.pentair.com). A replay of this presentation will be available approximately 24 hours after the conclusion of Mr. Stauch’s remarks and will remain available on the website through April 11, 2024.ABOUT PENTAIR PLCAt Pentair, we help the world sustainably move, improve, and enjoy water, life’s most essential resource. From our residential and commercial water solutions, to industrial water management and everything in between, Pentair is focused on smart, sustainable water solutions that help our planet and people thrive.Pentair had revenue in 2023 of approximately $4.1 billion, and trades under the ticker symbol PNR. With approximately 10,500 global employees serving customers in more than 150 countries, we work to help improve lives and the environment around the world. To learn more, visit www.pentair.com.View source version on businesswire.com: https://www.businesswire.com/news/home/20240311450595/en/ContactsShelly HubbardVice President, Investor RelationsTel.: 763-656-5575E-mail: [email protected] OsbornDirector, External CommunicationsTel.: 763-656-5589E-mail: [email protected]

Business Wire

Pentair to Present at J.P. Morgan Investor Conference

https://finance.yahoo.com/news/pentair-present-j-p-morgan-105000099.html

01af4862-2e51-3ec9-8696-46fee5b6657b

PNW

Pinnacle West Capital Corporation PNW is scheduled to release fourth-quarter 2023 results on Feb 27, before market open. The company delivered an earnings surprise of 5.1% in the last reported quarter.Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.Factors to ConsiderPinnacle West Capital’s fourth-quarter revenues are expected to have benefited from retail customer growth and an increase in electricity sales, owing to strong growth in the Arizona region. Increased contribution from Transmission is also expected to have boosted revenues in the to-be-reported quarter.However, planned outage in the fourth quarter might have resulted in higher operations and maintenance expenses. Still-high interest rates and increased depreciation and amortization must have offset some positives in the to-be-reported quarter.Q4 ExpectationsThe Zacks Consensus Estimate for fourth-quarter earnings is pegged at a loss of 10 cents per share, indicating a year-over-year improvement of 52.4%.The Zacks Consensus Estimate for revenues is pinned at $1.01 billion, implying a year-over-year increase of 0.5%.What Our Quantitative Model PredictsOur proven model does not conclusively predict an earnings beat for Pinnacle West Capital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.  Pinnacle West Capital Corporation Price and EPS SurprisePinnacle West Capital Corporation Price and EPS SurprisePinnacle West Capital Corporation price-eps-surprise | Pinnacle West Capital Corporation QuoteEarnings ESP: The company’s Earnings ESP is -93.56%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: Currently, Pinnacle West Capital carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.Upcoming ReleasesInvestors may consider the following player from the same sector which have the right combination of elements to come up with an earnings beat this reporting cycle.AES AES is expected to beat on earnings when it reports fourth-quarter results on Feb 26, after market close. It has an Earnings ESP of +0.36% and a Zacks Rank #3 at present.AES’ long-term (three to five years) earnings growth rate is 8.79%. The Zacks Consensus Estimate for earnings is pegged at 69 cents per share.Sempra Energy SRE is expected to beat on earnings when it reports fourth-quarter results on Feb 27, before market open. It has an Earnings ESP of +0.29% and a Zacks Rank #3 at present.SRE’s long-term (three to five years) earnings growth rate is 4.95%. It delivered an average earnings surprise of 9% in the last four quarters.Consolidated Water CWCO is expected to beat on earnings when it reports fourth-quarter results soon. It has an Earnings ESP of +4.44% and a Zacks Rank #2 at present.CWCO’s long-term earnings growth rate is 8%. It delivered an average earnings surprise of 61.6% in the last four quarters.Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.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 reportSempra Energy (SRE) : Free Stock Analysis ReportPinnacle West Capital Corporation (PNW) : Free Stock Analysis ReportThe AES Corporation (AES) : Free Stock Analysis ReportConsolidated Water Co. Ltd. (CWCO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

What's in Store for Pinnacle West Capital (PNW) in Q4 Earnings?

https://finance.yahoo.com/news/whats-store-pinnacle-west-capital-140100289.html

5f69a932-4b90-3b7c-a780-93e62120b95c

PNW

The Zacks Utilities sector’s fourth-quarter 2023 earnings are expected to have been driven by planned investments to further improve its operations, cost-saving initiatives and usage of new technologies that helped in increasing the reliability of its services and lowering operating and maintenance expenses.Per the latest Earnings Preview, the Zacks Utilities sector’s fourth-quarter earnings are expected to have increased 15.3% year over year on a decline of 4.7% in revenues. The utilities might have been affected due to warmer-than-normal weather patterns in most of the fourth quarter. However, new utility rates implemented in the service territories and customer growth are likely to have boosted profits.Factors to ConsiderUtilities continue to make prudent capital expenditures that reduce operating, fuel, maintenance and upkeep expenses. As a result, customers benefit from saving money on their utility costs. Utilities have reduced costs while simultaneously improving overall operations and efficiency through digital technology investments, crucial system connections and data-driven decision-making.Various positive aspects, such as new electric tariffs, customer additions, cost control and the execution of energy-efficiency initiatives, continue to benefit utilities. Also, the ongoing investments to further improve the resiliency of electric infrastructure against extreme weather conditions and the transition to cost-effective, renewable energy sources to produce electricity are expected to have benefited the power industry.Most of the utility companies have pledged to deliver 100% clean energy and achieve the zero-emission target in the coming years. As a result, these companies have been reducing their use of coal and other polluting sources in their generating portfolios and increasing the use of clean, renewable energy sources in their production portfolios.Still-high interest rate environment that remained in the United States during the fourth quarter is likely to have caused higher borrowing expenses for the capital-intensive utilities. As a result, increased interest expenses might have had a negative impact on the sector's profitability.Fourth-quarter weather patterns were warmer than normal for most of the fourth quarter across the service territories, with below-average precipitation. In November, some of the regions experienced snowfall. Overall, the weather is expected to have had a moderate effect on utilities' fourth-quarter top-line performance.Story continuesWhat Our Model PredictsAccording to the Zacks model, a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.American Electric Power Company, Inc.’s AEP quarterly results are likely to have benefited from increased retail load, transmission revenues as well as positive rate changes in Texas and Ohio. The company's profitability might have been supported by the positive impacts of better investments made in the previous quarters as well as strong sales projections, even in the face of negative effects from increased depreciation and interest expenses. (Read more: What's in Store for American Electric in Q4 Earnings?)Our proven model predicts an earnings beat for American Electric Power this time around. AEP has an Earnings ESP of +2.36% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.American Electric Power Company, Inc. Price and EPS SurpriseAmerican Electric Power Company, Inc. Price and EPS SurpriseAmerican Electric Power Company, Inc. price-eps-surprise | American Electric Power Company, Inc. QuoteSempra Energy’s SRE fourth-quarter earnings are likely to have gained from favorable rate base observed in the prior quarters, customer growth and cost-saving initiatives. Growth in multiple areas of Oncor service territory and the premier energy-producing region, the Permian Basin, might have also contributed positively. However, still-high interest rates, transportation tariffs and lower income tax benefits are likely to have negatively impacted the company’s bottom line. (Read more: What's in the Cards for Sempra This Earnings Season?)Our proven model predicts an earnings beat for Sempra Energy this time around. SRE has an Earnings ESP of +0.29% and a Zacks Rank #3 at present.Sempra Energy Price and EPS SurpriseSempra Energy Price and EPS SurpriseSempra Energy price-eps-surprise | Sempra Energy QuotePinnacle West Capital Corporation’s PNW fourth-quarter revenues are expected to have benefited from retail customer growth and an increase in electricity sales, owing to strong growth in the Arizona region. However, still-high interest rates and increased depreciation and amortization must have offset some positives in the to-be-reported quarter. (Read more: What's in Store for Pinnacle West Capital in Q4 Earnings?)Our proven model does not predict an earnings beat for Pinnacle West Capital this time around. PNW has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present.Pinnacle West Capital Corporation Price and EPS SurprisePinnacle West Capital Corporation Price and EPS SurprisePinnacle West Capital Corporation price-eps-surprise | Pinnacle West Capital Corporation QuoteStay on top of upcoming earnings announcements with the Zacks Earnings Calendar.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 reportSempra Energy (SRE) : Free Stock Analysis ReportAmerican Electric Power Company, Inc. (AEP) : Free Stock Analysis ReportPinnacle West Capital Corporation (PNW) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Utility Stocks Reporting Q4 Earnings on Feb 27: AEP, SRE & PNW

https://finance.yahoo.com/news/utility-stocks-reporting-q4-earnings-140900754.html

0ceed045-6238-3c07-96b0-9682098f237c

PNW

PHOENIX, February 29, 2024--(BUSINESS WIRE)--Pinnacle West Capital Corp. (NYSE: PNW) ("Pinnacle West") announced today that it has priced its registered public offering of 9,774,436 shares of its common stock for approximate net proceeds of $630.5 million (before offering expenses, assuming the underwriters do not exercise their option to purchase additional shares and upon, and assuming, full physical settlement of the forward sale agreements) in connection with the forward sale agreements described below. The common stock offering was priced at a public offering price of $66.50 per share.Pinnacle West has granted to the underwriters the option to purchase up to an additional 1,466,165 shares of its common stock. If such option is exercised, Pinnacle West may, in its sole discretion, enter into additional forward sale agreements with the forward purchasers in respect of, in the aggregate, the number of additional shares of Pinnacle West’s common stock that are subject to the exercise of such option, and Pinnacle West currently anticipates that, if such option is exercised, it will do so. The offering is expected to close on March 4, 2024, subject to the satisfaction of customary conditions.Barclays, Citigroup, Mizuho and Wells Fargo Securities are acting as joint book-running managers for this offering. The underwriters may offer shares of Pinnacle West’s common stock in transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.In connection with the offering, Pinnacle West entered into separate forward sale agreements with Mizuho Markets Americas LLC and Wells Fargo Bank, National Association, referred to in such capacity as the forward purchasers, pursuant to which Pinnacle West has agreed to sell shares of its common stock to the forward purchasers at an initial forward sale price per share equal to the price per share at which the underwriters purchase the shares in the offering, subject to certain adjustments. In connection with the forward sale agreements, the forward purchasers or their respective affiliates, acting as forward sellers are borrowing from third parties an aggregate of 9,774,436 shares of Pinnacle West’s common stock. Such borrowed shares of Pinnacle West’s common stock will be delivered by the forward sellers for sale to the underwriters in the offering. Settlement of each forward sale agreement is expected to occur no later than September 4, 2025. Although Pinnacle West expects to settle each forward sale agreement entirely by the full physical delivery of shares of its common stock in exchange for cash proceeds, Pinnacle West may, subject to certain conditions, elect cash settlement or net share settlement for all or a portion of its rights or obligations under the forward sale agreements.Story continuesPinnacle West will not initially receive any proceeds from the sale of shares of its common stock by the forward sellers or their affiliates to the underwriters. If Pinnacle West elects physical settlement of the forward sale agreements, it expects to use any net proceeds received for investment in its principal subsidiary Arizona Public Service Company to fund capital expenditures and general corporate purposes.This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering of these securities may be made only by means of a prospectus supplement and accompanying base prospectus relating to this offering.The public offering is being made pursuant to an effective shelf registration statement that has been filed with the Securities and Exchange Commission (the "SEC"). A preliminary prospectus supplement related to the offering has been filed with the SEC and is available on the SEC’s website. In addition, copies of the preliminary prospectus supplement and accompanying base prospectus relating to the shares of common stock being offered may be obtained by contacting: Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 1-888-603-5847 or by emailing [email protected]; Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 1-800-831-9146; Mizuho Securities USA LLC, ATTN: Equity Capital Markets, 1271 Avenue of the Americas, 3rd Floor, New York, New York 10020, telephone: 1-212-205-7600 or by emailing [email protected]; Wells Fargo Securities, 90 South 7th Street, 5th Floor, Minneapolis, Minnesota 55402, telephone: 1-800-645-3751 or by emailing [email protected]; or by accessing the SEC’s website at www.sec.gov.General InformationPinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of nearly $25 billion, about 6,500 megawatts of generating capacity and approximately 6,100 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the company provides retail electricity service to approximately 1.4 million Arizona homes and businesses.FORWARD-LOOKING STATEMENTSThis press release contains forward-looking statements based on current expectations. These forward-looking statements are often identified by words such as "estimate," "predict," "may," "believe," "plan," "expect," "require," "intend," "assume," "project," "anticipate," "goal," "seek," "strategy," "likely," "should," "will," "could," and similar words. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by Pinnacle West or Arizona Public Service ("APS"). These factors include, but are not limited to, the factors discussed in the most recent Pinnacle West/APS Form 10-K and 10-Q along with other public filings with the Securities and Exchange Commission, which readers should review carefully before placing any reliance on our financial statements or disclosures. Neither Pinnacle West nor APS assumes any obligation to update these statements, even if our internal estimates change, except as required by law.View source version on businesswire.com: https://www.businesswire.com/news/home/20240229910819/en/ContactsMedia Contact: Alan Bunnell (602) 250-3376Analyst Contact: Amanda Ho (602) 250-3334Website: pinnaclewest.com

Business Wire

Pinnacle West Announces Pricing of a Public Offering of 9,774,436 Shares of Common Stock

https://finance.yahoo.com/news/pinnacle-west-announces-pricing-public-120000526.html

d24f6055-a36d-35f5-a1d8-9059b72be463

PNW

Pinnacle West Capital Corporation (NYSE:PNW) just released its latest annual results and things are looking bullish. The company beat expectations with revenues of US$4.7b arriving 3.5% ahead of forecasts. Statutory earnings per share (EPS) were US$4.41, 3.0% ahead of 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. Check out our latest analysis for Pinnacle West Capital earnings-and-revenue-growthAfter the latest results, the seven analysts covering Pinnacle West Capital are now predicting revenues of US$4.90b in 2024. If met, this would reflect a satisfactory 4.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 8.1% to US$4.78. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.79b and earnings per share (EPS) of US$4.77 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small increase to to revenue forecasts.It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$76.10, implying that the uplift in revenue is not expected to greatly contribute to Pinnacle West Capital's valuation in the near term. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Pinnacle West Capital analyst has a price target of US$95.00 per share, while the most pessimistic values it at US$68.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.Story continuesThese estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pinnacle West Capital's past performance and to peers in the same industry. We would highlight that Pinnacle West Capital's revenue growth is expected to slow, with the forecast 4.4% annualised growth rate until the end of 2024 being well below the historical 6.0% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.4% annually. Even after the forecast slowdown in growth, it seems obvious that Pinnacle West Capital is also expected to grow faster than the wider industry.The Bottom LineThe most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$76.10, with the latest estimates not enough to have an impact on their price targets.With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Pinnacle West Capital going out to 2026, and you can see them free on our platform here..Plus, you should also learn about the 2 warning signs we've spotted with Pinnacle West Capital (including 1 which makes us a bit uncomfortable) .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.

Analyst Estimates: Here's What Brokers Think Of Pinnacle West Capital Corporation (NYSE:PNW) After Its Yearly Report

https://finance.yahoo.com/news/analyst-estimates-heres-brokers-think-121026269.html

c227c3d2-2c93-32f4-aed6-b8ad6387950e

PODD

Insulet Corporation (NASDAQ:PODD) Q4 2023 Earnings Call Transcript February 22, 2024Insulet Corporation beats earnings expectations. Reported EPS is $1.44, expectations were $0.67. Insulet 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: Good afternoon, ladies and gentlemen, and welcome to the Insulet Corporation Fourth Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Deborah Gordon, Vice President, Investor Relations.Deborah Gordon: Thank you. Good afternoon, and thank you for joining us for Insulet's Fourth Quarter and Full Year 2023 Earnings Call. With me today are Jim Hollingshead President and Chief Executive Officer; and Lauren Budden, our Interim Chief Financial Officer and Treasurer. Both the replay of this call and the press release discussing our 2023 results, and 2024 guidance will be available on the Investor Relations section of our website. . Also on our website is our fourth quarter supplemental earnings presentation. We encourage you to reference that document for a summary of key metrics and business updates. Before we begin, we remind you that certain statements made by Insulet during the course of this call may be forward-looking and could materially differ from current expectations.Please refer to the cautionary statements in our SEC filings for a detailed explanation of the inherent limitations of such statements. We'll also discuss non-GAAP financial measures with respect to our performance, namely adjusted growth and operating margin, adjusted EBITDA and constant currency revenue, which is revenue growth, excluding the effect of foreign exchange. These measures align with what management uses as supplemental measures in assessing our operating performance, and we believe they are helpful to investors, analysts and other interested parties as measures of our operating performance from period to period. Additionally, unless otherwise stated, all financial commentary regarding dollar and percentage changes will be on a year-over-year reported basis with the exception of revenue growth rate, which will be on a year-over-year constant currency basis.Story continuesWith that, I'll turn the call over to Jim.Jim Hollingshead: Thanks, Deb. Good afternoon, and thank you for joining us. With our strong Q4 2023 results, we kept off another transformational year, in which we firmly established Insulet as the market leader in automated insulin delivery. In 2023, we realized a 30% revenue growth, which marked our eighth consecutive year of 20-plus percent revenue growth and represented dollar growth of almost $400 million. We accomplished this while also significantly expanding margins and generating positive free cash flow. Our record new customer starts in 2023, fueled our global growth and our Omnipod 5 AID system, which generated $1 billion in revenue in 2023 is transforming diabetes management. We entered 2024 with significant momentum, and we are looking forward to a year of many growth catalysts ahead.On today's call, I want to do three things: first, discuss our financial results and market traction. Next, I'll provide an update on the continuing progress of our clinical efforts and then review key developments in our innovation pipeline. Our fourth quarter revenue once again exceeded our expectations with total Omnipod growth of 35%, including U.S. growth of 43%. Part of our outperformance was driven by U.S. distributors placing additional orders near the end of the quarter, which we had not factored into our guidance. We'll provide more detail on this in a few minutes. Yet even without these additional orders, we closed out 2023 ahead of our expectations, including healthy margin expansion. These are remarkable results, and I want to thank our global team for their execution and dedication.We are proud of the incredible impact the Omnipod product platform is having on people with diabetes. We recently achieved milestones of roughly 425,000 active global customers on the Omnipod platform, which represents growth of approximately 25% from this time last year. This also includes almost 250,000 customers on Omnipod 5, which has proven to be revolutionary. And Omnipod DASH continues to drive strong new customer starts in our U.S. type 2 diabetes market as well as in most of our international markets. We are thrilled that our unique technology is making a meaningful impact on the diabetes community, advancing our mission to improve the lives of people with diabetes around the world. Omnipod 5 is the only FDA cleared, fully disposable pod-based AID system.This makes our product unique and clearly differentiated from competitors' offers. These product attributes underpin our competitive advantages and are key to fueling our growth, further establishing our leadership position and expertise in the diabetes market. The fully on-body wearable AID experience of Omnipod 5 dramatically reduces the daily burden of living with diabetes. And its simplicity, ease of use and broad and affordable access are also key drivers of its rapid adoption. For almost a decade, we have significantly invested in U.S. pharmacy channel access, including building the infrastructure, developing key pharmacy relationships, creating an easy onboarding pathway and building deep in-house expertise, all of which has resulted in a strong and leading channel access we have today.We continue to strengthen Omnipod's access and affordability, including our innovation pipeline that will go through this channel by building on our advantages. In the U.S., Omnipod 5 continue to represent the vast majority of our new customer starts in Q4, and we expect this trend to continue. In addition, customer retention remains strong. The mix of U.S. new customer starts coming from multiple daily injections and legacy tubed pumps continued at an estimated 80-20 percentage split. Today, even with improved technology, most people using insulin still use MDI as their mode of care. More than 60% of people with type 1 diabetes in the U.S. are on MDI and the vast majority of people with type 2 diabetes are using daily injections. Therefore, bringing people out of MDI and on to Omnipod remains the largest opportunity for us, and we continue to drive pump penetration and share gain in both the type 1 and type 2 markets, strengthening our leadership position.Omnipod 5 not only drove our number one position for U.S. and customer starts in 2023, it was the most prescribed AID system in the U.S. This is because a growing number of health care providers are writing scripts for it. In Q4, we saw another increase in prescribers growing to over 18,500, up from 17,000 in Q3. We speak with many HCPs and it is clear that Omnipod 5 is the winning choice for AIB. It is extremely gratifying to see the growing demand, confidence and adoption which have led to a growing number of scripts HCPs now write for our system. Our strong new customer starts included continuing adoption of Omnipod in the U.S., type 2 diabetes market. We estimate that no more than 5% of people with type 2 diabetes who need intensive insulin therapy are currently using any kind of pump.And we know that we are already the market leader in that space. We are confident that Omnipod will prove to be a simple and compelling solution for the millions of people globally with type 2 diabetes who today need insulin therapy as a part of their diabetes care regimen as well as the future millions who will naturally progress to requiring insulin as a part of their care. We are well positioned to bring all of the benefits of the Omnipod platform with people with type 2 diabetes both today and in the future. In the fourth quarter, type 2 diabetes patients represented between 20% and 25% of our U.S. new customer starts across our Omnipod suite of products. While Omnipod DASH, with its type 2 indication for use is the leading insulin pump operating in this market, we look forward to marketing Omnipod 5 to type 2 patients once we have an expanded indication.The underlying demand is apparent. We expect the last participant to complete our type 2 pivotal trial in the coming weeks, and we plan to submit results to the FDA by the end of 2024 for an expanded indication. We are confident this will be another catalyst that will fuel our growth trajectory, allow us to serve more patients and help us deliver on our mission. We look forward to sharing study results at ADA this June. The success of Omnipod 5, including its early yet powerful impact in 2 of our European markets, led to another strong quarter of new customer starts globally. Internationally, we realized a notable sequential increase in new customer starts, driven by the impact of Omnipod 5 that's having in the U.K. and Germany. Our early success in these countries supports our confidence that it will continue to transform diabetes care and position us as a market leader everywhere Omnipod 5 is available.We remain on track with our Omnipod 5 plus G6 European launch plans with the aim of making Omnipod 5 accessible to the majority of our European customers by the end of 2024. We are also thrilled to begin our journey launching Omnipod 5 integrated with Abbott’s Freestyle Libre 2 Plus sensor. I'll speak to this new opportunity in a moment. In addition to our type 2 pivotal study progress, we are meaningfully advancing several other clinical initiatives. We are excited to attend the ATTD International Conference in Italy in a couple of weeks where we will present data for the Omnipod 5 plus G6 randomized controlled trial. This RCT compared Omnipod 5 to non-AID pump and included study sites in the U.S. and France. We are thrilled to have recently published in the Diabetes Technology and Therapeutics Journal real-world evidence from almost 70,000 people with type 1 diabetes, demonstrating Omnipod 5's effectiveness in a large, diverse population.The data are impressive and demonstrate the strength of the Omnipod 5 algorithm in the real world delivering leading time in range and very low hypoglycemia, reinforcing Omnipod 5 as the obvious choice for clinical outcomes and personalized diabetes care. Central to everything we do is our mission to simplify life for people with diabetes. We want to make it easier for people to get prescribed therapy, get set up on therapy and use therapy consistently over time. This is the point of our evolution feasibility study taking place in New Zealand. Our intent is to have a next-generation algorithm that will further drive simplicity of use. We completed the first feasibility study in participants with either type 1 or type 2 diabetes, commencing initially in supervised hotel setting and then progressing to at-home use.We are pleased with the preliminary results and are analyzing the data and making modifications for the next round of subjects. We will present early feasibility results at ATTD. Lastly, we continue to actively enroll participants in our RADIANT study in France, the U.K. and Belgium, which is our Libre 2 integration trial. We began enrollment in September 2023, which is now halfway complete. Feedback has been tremendous and physicians new to Omnipod 5 appreciate its simplicity and potential to reach many more pump-naive users. As a reminder, both our G6 and Libre 2 studies are designed to provide the evidence we need to elevate Omnipod 5 status as superior first-line therapy and help drive our pricing and market access initiatives as we further roll out Omnipod 5 with multiple sensors across our international markets.I'll now provide an update on our innovation progress and we'll focus on three key areas: expanding the Omnipod 5 platform, moving upstream in the type 2 market with Omnipod Go and building our digital and data capabilities. Many of you have heard us say that our current Omnipod 5 system is our "minimum" viable product. That's easy to forget given how quickly the market has adopted Omnipod 5 and made it the leading offer. Our current version is on only one operating system, Android. It is integrated with only one continuous glucose monitoring partner, Dexcom and until recently, was commercialized with only G6, and it contains our first-generation algorithm. This is about to change with platform extensions that will strengthen our leadership, deepen our competitive moats and allow us to open up Omnipod 5 to many more customers.To start, we are excited to have commenced our U.S. limited market release of Omnipod 5 with G7 over the last 2 weeks. This initial release will allow us time to test the market and build product at scale to prepare for what we are confident will be a very successful full market release of G7 this year. We anticipate an acceleration in new customer starts following a full launch, which will help to fuel our revenue growth more meaningfully in 2025 and beyond. We are also on track with our planned limited market release of Omnipod 5 with Libre 2 Plus in the first half of this year in the Netherlands and U.K. made possible by the CE Mark approval we received earlier this month. We are excited that the option for customers to use Omnipod 5 with both G6 and Libre 2 Plus will enable us to reach many more patients.Our recent and upcoming CGM integrations are important milestones in providing choice to tens of thousands of customers who want to use Omnipod 5 and we believe both integrations will be a significant catalyst for our growth in 2024 and beyond. Rounding out near-term innovation, we are planning for our U.S. launch of Omnipod 5 with the G6 system with our iOS app this year. This will mark a major innovation milestone because so many of our U.S. customers use Apple iPhone and prefer to carry only one phone. Another innovation that will allow us to reach more people and further expand our total addressable market is Omnipod GO, a solution designed for individuals with type 2 who naturally progress to requiring basal-only insulin and want a simple way to receive their daily dose, while avoiding the burden of injections.A pharmacy worker placing wireless handheld personal diabetes managers against the light.Our commercial pilot is underway, and it will help us refine our commercialization plans. Omnipod DASH has already made Insulet the leader in insulin delivery for people with type 2 diabetes. And with Omnipon GO, we are well positioned to move upstream in the patient care pathway. When we achieve clearance for Omnipod 5 in the type 2 market, we will bring all of the advantages of our AID system to this market. With these 3 products, our aim is to deliver an Omnipod portfolio that meets the full range of needs of people with type 2 who require insulin as a part of their care. We are excited about our innovation in the space and our ability to address the unmet needs that exist in this patient population. It is a massive global market that we expect will continue to grow, and we have the clear lead to pursue this market opportunity.We are also excited to build on our digital and data capabilities. One of the breakthrough features of Omnipod 5 is the real-time data provided by SIM cards in every controller. We constantly hear from physicians and patients how much they appreciate not needing to plug in for real-time usage data and 100% cloud connectivity has already given us the opportunity to publish the largest, real-world data set on AID. Over time, we plan to use the data to speed our product development, further improve the user experience, streamline physician workflows and build on our competitive advantages. We also continue building digital and data-driven products to simplify diabetes management for both customers and caregivers. In closing, Insulet continues to set the standard for the industry.With a strong 2023 behind us, we see multiple catalysts in the coming year and beyond. We are confident we will drive significant growth and continued success. I want to thank our Insulet global team for your dedication and deep passion for our customers and your commitment to delivering innovation. You are the reason for our success and our ability to continue to drive our mission to simplify life for the millions of people with diabetes around the world. With that, I will turn the call over to Lauren.Lauren Budden: Thanks, Jim. 2023 was another exciting year for Insulet, and the fourth quarter was no exception. We have strong momentum with many catalysts that will drive revenue growth and margin expansion in 2024 and over the long term. In Q4, we generated strong global, new customer starts fueled by the continued high demand for Omnipod 5, not only in the U.S. but also in our first 2 European markets. . As a result of our growing customer base, we delivered 37% revenue growth in Q4, driven by global Omnipod growth of over 35%. We benefited from a shift in order timing and an increase in days on hand at certain pharmacy distributors, which I'll speak to in a moment. Without these benefits, our results still exceeded these guidance ranges.On a reported basis, for total revenue, foreign currency was a 130 basis point tailwind compared to Q4 of last year. U.S. Omnipod revenue growth was 43%, which continues to be driven by our annuity-based model and growing U.S. pharmacy volume. This includes an increasing volume contribution from Omnipod 5 and the related premium for pods in the U.S. pharmacy. Pharmacy channel access continues to be a benefit for the many reasons Jim spoke to, and our efforts to drive increased volume through this channel have resulted in almost all of our U.S. volume going through the pharmacy channel. The recurring net volume benefit we recognized in Q4 from new customers who received their starter kits and first refill orders was in line with our expectations and remain consistent with Q3 levels.We expect this trend to continue. Also as expected, the same net volume benefit from existing customers converting to Omnipod 5 was immaterial since the vast majority had already previously converted. In Q4, U.S. revenue benefited from 2 dynamics not previously contemplated in our guidance. First, our largest U.S. pharmacy wholesalers collectively placed an estimated $20 million to $25 million in orders that were accelerated from the first quarter of 2024 in advance of our implementation of a new ERP system at the start of 2024. The second benefit was an increase in estimated channel inventory days on hand of approximately $10 million to $15 million as pharmacy distributors returned to their normal levels. As a reminder, in the first half of 2023, we called out a reduction in inventory days on hand below normal levels.What this boils down to is approximately $30 million to $40 million in revenue in Q4 that we had not anticipated, contributing approximately 12 points to our U.S. revenue growth. We are proud of our fourth quarter U.S. performance, especially given the tougher comparison due to the Omnipod 5 full market release in August of 2022. Additionally, new customer starts in Q4 were slightly down from Q3 as expected as the market is moving from Dexcom's G6 sensor to G7. We are excited to have launched our U.S. limited market release of Omnipod 5 with G7. And as Jim shared, we expect new customer starts to accelerate throughout 2024 as we ramp our commercial efforts. Overall, our U.S. business and related revenue growth are very strong, fueled by Omnipod 5's success and continued robust demand.International Omnipod revenue increased 12.5%, which was above our expectations. Growth was primarily driven by continued strong adoption of Omnipod DASH and to a smaller degree, a benefit from our Omnipod 5 launches in the U.K. and Germany, both of which drove notable increases in new customer starts. On a reported basis, foreign currency was a 550 basis point tailwind over the prior year, which was approximately 250 points favorable versus our guide. In Q4, our estimated global attrition and utilization trends remained stable. Drug Delivery revenue was almost $9 million, representing a $5.5 million increase, which was above our guidance range due to timing. Gross margin was 70.9%, up over 1,200 basis points. Excluding the impact of the 2022 medical device corrections, adjusted gross margin increased 620 basis points to 70.7% in Q4 2023.This exceeded our expectations due to favorable manufacturing costs and product mix. The increase in adjusted gross margin was primarily driven by improved manufacturing efficiencies and favorable mix that included a premium from volume growth in the pharmacy channel. Partially offsetting the favorable contributors were expected higher production costs as U.S. manufacturing continues to ramp and become a larger portion of our total production. Operating expenses increased in line with our expectations as we invested in our business to support our strong growth trajectory, including gearing up for near-term product launches globally. Adjusted operating margin was 20.7% and adjusted EBITDA was 26.9% of revenue. Both were above our expectations, primarily due to the $30 million to $40 million revenue benefit I mentioned, which had an estimated 360 basis point favorable impact on adjusted operating margin.To a lesser extent, both outperformed due to our higher-than-expected gross margin. Turning to cash and liquidity. We ended the year with over $700 million in cash and the full $300 million available under our credit facility. At the end of January, we successfully repriced our Term Loan B at a lower interest rate, which will reduce interest expense on an annualized basis by almost $2 million. We also achieved the milestone during the year of turning free cash flow positive, generating approximately $70 million in 2023. We continue to strengthen our financial position, giving us the flexibility to invest throughout our organization to drive long-term sustainable growth while at the same time expanding our margins and generating positive free cash flow.Now turning to our 2024 outlook. We continue to expect another year of large dollar growth even with the significant volume benefits realized in 2023, most notably from our Omnipod 5 ramp. We expect to approach total company revenue of $2 billion at the high end of our guidance range. For the full year, we expect total Omnipod revenue growth of 13% to 18% and total company revenue growth of 12% to 17%. As a reminder, our total company growth expectations exclude approximately 3 points due to the estimated $20 million to $25 million in orders that were accelerated to the fourth quarter of 2023. For U.S. Omnipod, we expect revenue growth of 16% to 21% driven by strong Omnipod 5 adoption as well as recurring revenue from Omnipod DASH and the benefits of our annuity model and pharmacy channel access.As a reminder, we have a tougher comparison in 2024, resulting from the significant 2 scripts and retail channel net stocking volume benefits in 2023. In addition, our expectations exclude approximately 4 points of growth due to the estimated orders that shifted into 2023. When factoring this into both periods, our normalized expectation for 2024 at the high end of our range is in line with the color we provided on our third quarter call of mid-20% growth. We anticipate new customer starts in the first half of 2024 to be slightly lower than the levels we had in the second half of 2023 due to normal seasonality trends, and we expect an acceleration in the second half of 2024 following a full market release of Omnipod 5 with G7. Also, as a reminder, estimated revenue from Omnipod 5 with our iOS app and from Omnipod GO is expected to be immaterial.We also currently expect the cadence of our revenue growth to be weighted more towards the second half of 2024 due to the timing of new customer starts, partially offset by the Q4 2023 stocking benefit. For international Omnipod, we expect revenue growth of 7% to 10%, which is in line with the 2024 color we previously provided of high single digits. On a reported basis, we are assuming no foreign currency impact. We expect growth to be driven by ongoing Omnipod DASH adoption and from our recent Omnipod 5 launches in the U.K. and Germany. We expect continued headwinds in the countries where we do not yet have Omnipod 5 to partially offset this growth. We are excited to enter our first European markets in the first half of 2024, with Omnipod 5 integrated with Abbott's FreeStyle Libre 2 Plus and to launch Omnipod 5 with G6 in another market around the same time.As a reminder, given the nature of our annuity model, we expect these launches to more meaningfully contribute to our growth rate in 2025. We continue to expect the first half of the year to be in the high single digits range and to accelerate in the second half of the year to a range of high single digits to low double digits, primarily due to a more meaningful contribution from our Omnipod 5 U.K. and Germany launches and, to a lesser extent, the additional launches in 2024. Lastly, for Drug Delivery, we expect a 50% to 60% decline in line with the 2024 color we previously provided. Turning to 2024 gross margin. We expect a range of 68% to 69% and anticipated benefit from favorable product mix and manufacturing efficiencies. Partially offsetting these tailwinds are higher costs associated with our new product launches.We expect gross margin in the second half of the year to be higher than the first half due to accelerating revenue throughout the year and continued manufacturing efficiencies. In 2024, we plan to expand both gross and operating margins while driving market growth. We expect operating expenses to increase as we invest in R&D and clinical and expand our sales force and other functions to support our commercial efforts and growth initiatives, including our near-term product lines. Our sales force expansion includes hiring some reps specifically focused on pediatrics, a population for which Omnipod has always captured a large share. Even with increased investments, we have many opportunities to significantly expand margins and increase shareholder value, and we remain committed to doing just that.We expect operating margin to be approximately 13%, up approximately 100 basis points from 2023 adjusted operating margin. When factoring in the 130 basis point year-over-year unfavorable impact in 2024 from the $20 million to $25 million shift in order timing, we expect operating margins to be approximately 200 basis points higher in 2024 over 2023. We expect operating margin to significantly improve in the second half of the year over the first half due to revenue ramping during the year and continued manufacturing improvements. We have many catalysts for growth in 2024 and considerable opportunities to drive further margin expansion over the near and long term coming from scaling the business efficiently even with the continued focused investments in our robust innovation pipeline and commercial efforts.We expect capital expenditures to almost double from 2023 due to the timing of spend to support our planned 2024 production at our new Malaysia manufacturing facility as well as investments to support continuous improvement efforts in our other manufacturing locations and to a lesser degree, investment in IT infrastructure. Turning to our first quarter 2024 guidance. We expect total Omnipod growth of 15% to 18% and total company growth of 17% to 20%. Our total company revenue expectations exclude approximately 6 points of growth due to the orders that shifted into 2023. For U.S. Omnipod, we expect growth of 19% to 22%, which excludes over 8 points of growth due to the orders that shifted into 2023. For international Omnipod, we expect growth of 5% to 8%.On a reported basis, we estimate a favorable foreign exchange impact of approximately 100 basis points. Finally, we expect Q1 drug delivery revenue to be approximately $5 million to $6 million. In conclusion, we delivered another quarter and year of significant financial performance and strategic execution. We have strong momentum at the start of 2024 with many catalysts ahead and as a result, we are in a fantastic position to continue to grow and efficiently scale our business. The global market opportunities for Insulet are tremendous, and we will continue to invest in innovation with an increased commitment to significant margin expansion. We are well positioned to drive long-term value creation for our shareholders and to deliver on our mission for our customers.With that, operator, please open the call for questions.See also 16 Best Exercises For Lower Back Pain and 15 Hot Penny Stocks On the Move.To continue reading the Q&A session, please click here.

Insider Monkey

Insulet Corporation (NASDAQ:PODD) Q4 2023 Earnings Call Transcript

https://finance.yahoo.com/news/insulet-corporation-nasdaq-podd-q4-174033542.html

6ed81d83-d8ce-3bce-ac9a-5697a006e95f

PODD

Insulet (NASDAQ:PODD) Full Year 2023 ResultsKey Financial ResultsRevenue: US$1.70b (up 30% from FY 2022).Net income: US$206.3m (up by US$201.7m from FY 2022).Profit margin: 12% (up from 0.4% in FY 2022). The increase in margin was driven by higher revenue.EPS: US$2.96 (up from US$0.066 in FY 2022).earnings-and-revenue-growthAll figures shown in the chart above are for the trailing 12 month (TTM) periodInsulet Revenues and Earnings Beat ExpectationsRevenue exceeded analyst estimates by 3.0%. Earnings per share (EPS) also surpassed analyst estimates by 48%.Looking ahead, revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the Medical Equipment industry in the US.Performance of the American Medical Equipment industry.The company's shares are down 3.6% from a week ago.Risk AnalysisYou still need to take note of risks, for example - Insulet has 1 warning sign we think you should be aware of.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.

Insulet Full Year 2023 Earnings: Beats Expectations

https://finance.yahoo.com/news/insulet-full-2023-earnings-beats-133545876.html

231122df-e5c5-3c96-8930-0b7899f94054

PODD

ACTON, Mass., March 08, 2024--(BUSINESS WIRE)--Insulet Corporation (NASDAQ: PODD) (Insulet or the Company), the global leader in tubeless insulin pump technology with its Omnipod® brand of products, today presented positive results from its first randomized controlled trial (RCT) showing improved glycemic and patient-reported outcomes in type 1 diabetes with the Omnipod 5 Automated Insulin Delivery System (Omnipod 5). The OP5-003 Trial results were presented at the 17th International Conference on Advanced Technologies & Treatments for Diabetes (ATTD) in Florence, Italy.Professor Eric Renard, MD, PhD of Montpellier University Hospital, shared evidence of the efficacy and safety of the automated Omnipod 5 System compared to insulin pump therapy with continuous glucose monitoring (CGM) in adults with type 1 diabetes (T1D) in the United States and France. Omnipod 5 use led to a 17.5% improvement in time in range (TIR), decreased HbA1c, decreased percentage of time in hypoglycemia, and decreased mean glucose in individuals with baseline HbA1c levels above the recommended target."Omnipod 5 continues to demonstrate impressive clinical outcomes for people with type 1 diabetes," said Professor Renard. "We expect this latest set of compelling evidence to have a profound impact on international accessibility and affordability, allowing more people with diabetes to experience the benefits provided by this innovative technology."It is the first Omnipod 5 randomized controlled trial to date, and the first time the system has been evaluated by international participants."Since Omnipod 5’s first commercial launch in the United States, we have been working diligently to expand into new markets and improve access to this life-changing technology," said Dr. Trang Ly MBBS, FRACP, PhD, Insulet Senior Vice President and Medical Director. "By gathering evidence from international participants through a randomized controlled trial, we have demonstrated the true benefit of using our tubeless, disposable automated insulin delivery (AID) system to manage type 1 diabetes over alternative forms of therapy and illustrated the superiority of Omnipod 5 compared to standard pump therapy with CGM for people with type 1 diabetes."Story continuesStudy OverviewA key objective of the OP5-003 trial was to evaluate Omnipod 5 in a population that was representative of the real world, primarily participants with an HbA1c above 8% at baseline. Insulet presented data for 194 adults who had used traditional (non-AID) insulin pump therapy (including 87% using the Omnipod or Omnipod DASH® Insulin Management System) for three months or longer and had a HbA1c between 7 and 11% (mean 8.5%). The participants had type 1 diabetes for at least one year and were enrolled at 14 institutions across the United States (61%) and France (39%).The participants were randomized into two groups and studied over the course of 13 weeks. The control group (n=62) continued to use their usual insulin pump with a Dexcom G6 CGM, while the intervention group (n=132) used Omnipod 5 with Dexcom G6.Key Data HighlightsThe participants using Omnipod 5 showed a significantly greater TIR (70-180 mg/dL) by 17.5% (43.8% in Control group versus 61.2% in Intervention group), or an additional 4.2 hours per day, and a greater reduction in HbA1c by 0.58% (1.24% with Omnipod 5 vs. 0.68% in the Control group). The final HbA1c was 7.25% in the Omnipod 5 group versus 7.84% in the Control group.Significantly lower mean glucose and time above 180 mg/dL (%) were also observed in the Omnipod 5 group versus the Control group.Time spent below 70 mg/dL (%) was significantly lower with Omnipod 5 by 0.36%, with mean time below 70 mg/dL (%) decreasing from 1.66% to 1.18% with Omnipod 5, while it increased from 1.66% to 1.75% in the Control group.Time below 54 mg/dL (%) was shown to be non-inferior (within a 1% margin) between the two groups. This mean value decreased from 0.32% to 0.23% with Omnipod 5 and decreased from 0.42% to 0.37% in the Control group.There were zero events of severe hypoglycemia or DKA with Omnipod 5, and one event of severe hypoglycemia and zero events of DKA in the Control group.All of the primary and secondary endpoints of the study were met. Exploratory endpoints showed no significant difference in change in total daily dose from baseline or change in body mass index from baseline between the Omnipod 5 and Control groups.Insulet also presented positive patient-reported results related to three key psychosocial measures that were included as secondary endpoints: diabetes distress, hypoglycemia confidence, and diabetes-related quality of life. As reported by study participants through individual surveys, Omnipod 5 use resulted in both statistically significant and clinically meaningful improvements in each of these three measures compared to the Control group. These results demonstrate that Omnipod 5 provides clinically meaningful improvements in key psychosocial aspects of living with type 1 diabetes.In conclusion, this multi-national, RCT data demonstrates the superiority of the Omnipod 5 AID System compared to standard pump therapy with CGM and indicates that it should be offered as a first-line therapy for adults with type 1 diabetes. These results will be submitted for publication later this year.About Insulet Corporation:Insulet Corporation (NASDAQ: PODD), headquartered in Massachusetts, is an innovative medical device company dedicated to simplifying life for people with diabetes and other conditions through its Omnipod product platform. The Omnipod Insulin Management System provides a unique alternative to traditional insulin delivery methods. With its simple, wearable design, the tubeless disposable Pod provides up to three days of non-stop insulin delivery, without the need to see or handle a needle. Insulet’s flagship innovation, the Omnipod 5 Automated Insulin Delivery System, integrates with a continuous glucose monitor to manage blood sugar with no multiple daily injections, zero fingersticks, and can be controlled by a compatible personal smartphone or the Omnipod 5 Controller. Insulet also leverages the unique design of its Pod by tailoring its Omnipod technology platform for the delivery of non-insulin subcutaneous drugs across other therapeutic areas. For more information, please visit: insulet.com and omnipod.com.Forward-Looking Statement:This press release may contain forward-looking statements concerning Insulet's expectations, anticipations, intentions, beliefs, or strategies regarding the future. These forward-looking statements are based on its current expectations and beliefs concerning future developments and their potential effects on Insulet. There can be no assurance that future developments affecting Insulet will be those that it has anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond its control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, and other risks and uncertainties described in its Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on February 23, 2024 in the section entitled "Risk Factors," and in its other filings from time to time with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of its assumptions prove incorrect, actual results may vary materially from those projected in these forward-looking statements. Insulet undertakes no obligation to publicly update or revise any forward-looking statements.©2024 Insulet Corporation. Omnipod and Omnipod DASH are registered trademarks of Insulet Corporation in the United States of America and other various jurisdictions. All rights reserved. Dexcom is a registered trademark of Dexcom, Inc. and used with permission.View source version on businesswire.com: https://www.businesswire.com/news/home/20240308063720/en/ContactsInvestor Relations: Deborah R. GordonVice President, Investor Relations(978) [email protected]: Angela Geryak WiczekSenior Director, Corporate Communications(978) [email protected]

Business Wire

Insulet’s Randomized Controlled Trial (OP5-003) Demonstrates Omnipod® 5 Automated Insulin Delivery System is Superior to Pump Therapy

https://finance.yahoo.com/news/insulet-randomized-controlled-trial-op5-110000094.html

5729fcdd-42b6-34fa-b971-73c70633f0c7

PODD

Key InsightsInsulet's estimated fair value is US$184 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$180 suggests Insulet is potentially trading close to its fair value The US$237 analyst price target for PODD is 29% more than our estimate of fair valueToday we will run through one way of estimating the intrinsic value of Insulet Corporation (NASDAQ:PODD) by taking the expected future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. See our latest analysis for Insulet Is Insulet Fairly Valued?We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value:10-year free cash flow (FCF) estimate2024202520262027202820292030203120322033 Levered FCF ($, Millions) US$299.4mUS$260.7mUS$388.7mUS$365.0mUS$511.7mUS$583.7mUS$645.3mUS$697.3mUS$741.4mUS$779.4mGrowth Rate Estimate SourceAnalyst x4Analyst x5Analyst x3Analyst x1Analyst x1Est @ 14.07%Est @ 10.54%Est @ 8.06%Est @ 6.33%Est @ 5.12% Present Value ($, Millions) Discounted @ 6.7% US$281US$229US$320US$281US$370US$395US$409US$414US$413US$406("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$3.5bStory continuesAfter calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.3%. We discount the terminal cash flows to today's value at a cost of equity of 6.7%.Terminal Value (TV)= FCF2033 × (1 + g) ÷ (r – g) = US$779m× (1 + 2.3%) ÷ (6.7%– 2.3%) = US$18bPresent Value of Terminal Value (PVTV)= TV / (1 + r)10= US$18b÷ ( 1 + 6.7%)10= US$9.4bThe total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$13b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of US$180, the company appears about fair value at a 2.5% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.dcfThe AssumptionsThe calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. 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 Insulet 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 6.7%, which is based on a levered beta of 0.965. 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 InsuletStrengthEarnings growth over the past year exceeded the industry.Debt is well covered by earnings.WeaknessNo major weaknesses identified for PODD.OpportunityAnnual earnings are forecast to grow faster than the American market.Current share price is below our estimate of fair value.ThreatDebt is not well covered by operating cash flow.Revenue is forecast to grow slower than 20% per year.Next Steps:Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Insulet, we've compiled three further aspects you should consider:Risks: We feel that you should assess the 1 warning sign for Insulet we've flagged before making an investment in the company.Future Earnings: How does PODD'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 Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQGS every day. If you want to find the calculation for other stocks 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.

Calculating The Fair Value Of Insulet Corporation (NASDAQ:PODD)

https://finance.yahoo.com/news/calculating-fair-value-insulet-corporation-194654463.html

e8409c73-7d1e-34ac-8c3c-d8b94274a70c

POOL

Pool Corporation POOL reported fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line declined from the prior-year quarter's figure. The company’s results were affected by lower sales volumes of discretionary pool products, attributed to a decline in pool construction and discretionary replacement activities. Following the results, the company’s shares dropped 2.6% during trading hours on Feb 22.Earnings & Revenues DiscussionDuring the third quarter, the company reported adjusted earnings per share (EPS) of $1.30, beating the Zacks Consensus Estimate of $1.28. In the prior-year quarter, the company reported an adjusted EPS of $1.79.Quarterly net revenues of $1 billion missed the consensus mark of $1.02 billion. The top line declined 8.5% year over year. The downside was caused by lower sales volume from reduced pool construction activities.Pool Corporation Price, Consensus and EPS Surprise Pool Corporation Price, Consensus and EPS SurprisePool Corporation price-consensus-eps-surprise-chart | Pool Corporation Quote Operating Highlights & ExpensesDuring the fourth quarter, the cost of sales came in at $709.3 million, compared with $780.2 million reported in the prior-year quarter. Our estimate for the cost of sales was $735.4 million.During the quarter, gross profits (as a percentage of net sales) declined 50 basis points (bps) year over year to 29.3% from 28.8% reported in the year-ago quarter. Our estimate for the metric was 27.6%.During the fourth quarter, operating income declined 26.1% year over year to $79.3 million. Our estimate for operating income was $84.1 million. The operating margin came in at 7.9%, down 190 bps from the prior-year quarter’s level.Selling and administrative expenses increased 2.9% year over year to $214.4 million. Our estimate for the metric was $195.9 million.Net income during the quarter totaled $51.4 million compared with $71.9 million reported in the year-ago quarter. Our estimate for net income was $51.8 million.Story continuesBalance SheetAs of Dec 31, 2023, the company’s cash and cash equivalents amounted to $66.5 million compared with $45.6 million as of Dec 31, 2022. During the quarter, its net long-term debt amounted to $1.02 billion compared with $1.4 billion reported in the year-ago quarter. Goodwill during the quarter came in at $700 million compared with $692 million reported in the prior-year quarter.As of Dec 31, 2023, net cash provided by operating activities amounted to $888.3 million compared with $484.9 million reported in the prior-year period.2023 HighlightsNet sales in 2023 came in at $5.54 billion compared with $6.2 billion in 2022.Operating income in 2023 came in at $746.6 million compared with $1.03 billion in 2022.In 2023, adjusted EPS came in at $13.18 compared with $18.43 in the previous year.2024 GuidanceFor 2024, Pool Corp expects adjusted EPS in the range of $13-$14. The Zacks Consensus Estimate for 2024 earnings is currently pegged at $14.Zacks Rank & Key PicksPool Corp has a Zacks Rank #4 (Sell).Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows:Royal Caribbean Cruises Ltd. RCL currently sports a Zacks Rank #1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 26.4%, on average. Shares of RCL have surged 71.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for RCL’s 2024 sales and EPS indicates a rise of 14.1% and 44%, respectively, from the year-ago period’s levels.H World Group Limited HTHT carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 94.5%, on average. The stock has declined 25.2% in the past year.The Zacks Consensus Estimate for HTHT’s 2024 sales and EPS indicates an improvement of 7.2% and 7.1%, respectively, from the year-ago period’s levels.Carnival Corporation & plc CCL carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 19.2%, on average. The stock has gained 39.8% in the past year.The Zacks Consensus Estimate for CCL’s 2024 sales indicates a rise of 13.8% from the year-ago levels.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 reportCarnival Corporation (CCL) : Free Stock Analysis ReportRoyal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis ReportPool Corporation (POOL) : Free Stock Analysis ReportH World Group Limited Sponsored ADR (HTHT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Pool Corp (POOL) Q4 Earnings Beat Estimates, Revenues Miss

https://finance.yahoo.com/news/pool-corp-pool-q4-earnings-162700069.html

079c6801-d71e-3033-a3a0-42f5c489d4bd

POOL

Pool Corporation (NASDAQ:POOL) Q4 2023 Earnings Call Transcript February 22, 2024Pool Corporation beats earnings expectations. Reported EPS is $1.32, expectations were $1.26. Pool 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: Good day and welcome to the Pool Corporation Fourth Quarter 2023 Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Melanie Hart, Vice President and Chief Financial Officer. Please go ahead.Melanie Hart: Welcome to our fourth quarter and year end 2023 earnings conference call. Discussion, comments, and responses to questions today may include forward-looking statements, including management's outlook for 2024 and future periods. Actual results may differ materially from those discussed today. Information regarding the factors and variables that could cause actual results to differ from projected results are discussed in our 10-K. In addition, we may make references to non-GAAP financial measures in our comments. A description and reconciliation of any of our non-GAAP financial measures included in our press release are posted to our corporate website in the Investor Relations section. President and CEO, Peter Arvan will begin our call today. Pete?Peter Arvan: Thank you, Melanie, and good morning to everyone on the call. For the full year 2023, we generated over $5.5 billion in revenue, the second largest in company history, and over $2 billion higher than 2019, a year with a similar number of new pools constructed and the last year and before the pandemic. We generated $747 million in operating income, more than double our operating income in 2019, an operating margin of 13.5%, a 280 basis point expansion above 2019 operating margin. These results highlight the larger installed base available for us to serve post pandemic and our ability to fulfill our customers maintenance, remodel, and renovation and new construction product needs. Even in a challenging environment our customer service outshined our competitors through our powerful distribution network, the largest, most integrated in the pool industry, and we continue to make wise investments to promote our future growth.Story continuesWe were up against tremendous comps throughout most of the year, yet the team at all levels worked extremely hard to deliver very solid results. The year began with us lapping 33% sales growth in the first quarter of 2022 over 2021. Sales declined 15% in the first quarter of 2023 compared to 2022 amidst unusually poor weather conditions in key year round markets. Delayed pool openings in many of our seasonal markets followed, and higher than normal inventory levels across the industry contributed to an abnormal selling environment during the first half of the year. Macroeconomic constraints and uncertainties, primarily in the form of elevated and escalating interest rates and recent inflation, resulted in new pool units declining from 98,000 units in 2022 to an estimated 70,000 to 75,000 units in 2023, or 25% to 30% decline.These evolving external factors made it extremely difficult to forecast underlying demand at the start of the year. As 2023 progressed, clarity around the market improved and we adapted accordingly. We focused on specific customer needs and opportunities, particularly those related to maintaining the ever growing 5.4 million swimming pools in the installed base. Given our broad reach, unmatched capabilities, it is in situations like this that our team shines. We continue to invest in expanding our footprint and in technology tools that improve our customers ability to grow their business and be more productive. We continued our focus on customer experience and being the best channel to market for our suppliers. These efforts combined allowed us to continue growing our share and outperforming the industry.Our disciplined execution enabled us to generate $888 million in operating cash flow in 2023, a company record. This result positively demonstrates our working capital management capabilities, capital capacity, and insightful and opportune investments in inventory. Now I'd like to recap our full year and fourth quarter results. Total sales for the year came in at $5.5 billion, which was down 10% from the record of 2022 and in line with our third quarter guidance. For the fourth quarter of 2023, total sales came in at $1 billion, compared to $1.1 billion in the fourth quarter of 2022, or down 8%. Geographically, the sales declines were fairly consistent in three of our major markets and improved sequentially as the year progressed. For the full year and the fourth quarter, we saw sales in California come in at -12% and 8% respectively.In Texas, sales were consistent and down 10% in both periods. Arizona experienced similar results as we recorded sales down 9% for the full year and down 8% for the quarter. Florida performed a bit better for the full year at down -5% but declined 12% in the fourth quarter of 2023 against very strong comps of 20% to 22% growth in the fourth quarter of 2022. For the full year and the fourth quarter, our sales declined 9% and 10% in our year round markets and 13% and 7% in our seasonal markets, showing improvement in the season and most of our year round markets as the year progressed. For perspective, in 2022 our seasonal markets were up 8% for the year and up 15% in our year round markets. I will now provide some color on our key product category sales compared to the full year and fourth quarter of last year.Chemical sales were down 1.5% for the year but up 1% for the fourth quarter. Considering the significant trichlor deflation that hit during the 2023 pool season and the softer start to the year in the first quarter, driven by excess inventory in the channel and the challenging weather pattern, we considered the full year results of down only 1.5% a clear indication of us further expanding our share in this critical maintenance category. We believe the significant price volatility exhibited from 2021 to 2023 will be behind us after we pass the first quarter of 2024 and that excess channel inventory has normalized. As it relates to our chemical supply initiatives. We made great progress on expanding our usage of SunCoast chemical packaging facility that we acquired as part of the Porpoise acquisition.In 2023, our teams more than tripled the amount of chemicals produced and sourced from this strategic and very capable facility compared to 2022. These actions not only improve our surety of supply, but also improve our profitability. Building material sales declined 9% for the full year and 8% in the fourth quarter. Considering that new pool construction was down an estimated 25% to 30% and that renovation and remodel was down around 12%, we are quite pleased with how the team performed in this highly profitable product group. Our proprietary NPT branded products, expanded building material offering and convenient nationwide sales center and design center network remain the go to source for discerning pool owners and our outstanding dealer base.No one has a more complete product offering or more capable team that caters to the best builders and remodelers in the industry. We look towards the equipment pad. Equipment sales decreased 9% for both the year and for the fourth quarter, demonstrating the resilience of the maintenance related equipment demand and our best in class customer service despite lower new pool construction activity in 2023. Demand for heaters and cleaners, the most discretionary product within the equipment category, saw continued headwinds as we cycled through the demand that was pulled forward during the pandemic and cautious consumer spending on more discretionary pool item purchases. We remain confident that the ever increasing install base of the pools and the need to modernize the older equipment pads and the desire to move towards the connected backyard will present many years of incremental growth opportunities going forward.Turning to end markets our commercial business continued to grow at 9% for the full year and 5% for the fourth quarter. The growth in 2023 is on top of 27% growth for both the full year and the fourth quarter of 2020. We continue to invest in resources to expand our reach in the commercial pool market. In 2023 this investment included acquiring a commercial products wholesale distribution company, furthering our competitive efforts to serve the commercial pool market's new construction and install base equipment needs and utilize our expansive distribution infrastructure to service commercial pool operators. We continue gaining wholesale distribution market share in this growing specialty area of the pool industry. Sales to our independent retail customers declined 11% for the full year and 8% in the fourth quarter.Unfavorable weather resulting in less chemical and maintenance needs and supply normalization affected our sales to independent retailers in the first half of 2023. We have a high concentration of retailers that operate in seasonal markets that were adversely impacted by the late start to the year. Additionally, this category is heavily impacted by products like cleaners, above-ground pools, and spas, which are all returning to pre pandemic levels. Keep in mind this represents the sell to the retail channel. Retail sales by our independent Pinch A Penny retail stores, which are highly concentrated in Florida and Texas and represent sell through the retail channel, increased 3% for the full year in 2023 compared to 2022 and declined 4% in the fourth quarter.We are pleased with this result given the dynamic market and the tough comps we had. For reference, Pinch A Penny grew 17% in both the fourth quarter and the full year of 2022. Turning to Europe, as we previously reported, following record results, in 2021, Europe sales declined 15% in 2022 under the backdrop of the war affecting Eastern Europe, resulting in rapidly escalating energy costs and an economic slowdown in customer or consumer caution. In 2023, European sales declined 11% in local currency for the full year and 7% in the fourth quarter. We began to see some signs of inflection towards the end of the swimming pool season and believe our long term growth opportunity in Europe remained strong. Keep in mind, this market makes up about 4% of our total revenue.For horizon net sales declined 4% for both the full year and the fourth quarter throughout 2023, stronger sales from commercial irrigation projects buffered weaker residential market sales. We continue to focus on expanding our reach, primarily through the Sunbelt and through greenfield expansion in growing markets, and on leveraging our distribution operating model to support the long term growth opportunities within the irrigation landscape and equipment needs. Now, let me talk a little about gross margins. Our gross margins finished at 30% for the full year, consistent with our recent guidance and long term expectations. We are proud of this accomplishment, which highlights our capabilities on supply chain optimization, our growing portfolio of private label products and value-added pricing initiatives.For the fourth quarter of 2023, our gross margins improved 50 basis points to 29.3% compared to the fourth quarter of 2022. Melanie will provide more details on gross margins in her prepared remarks. Operating expenses reflected a 0.6% increase in 2023 in line with our previous guidance. Despite the cyclical sales trends, we continued investing in our talent and on our employer of choice initiatives to make sure that we retained the best team in the industry and continued to separate ourselves from the competition. Additionally, we continued opening new locations, conducting customer facing events and training, and expanded capacity at our chemical packaging facility. In 2023, we opened 14 new locations and added five locations through acquisition, bringing our total count to almost 440 sales centers.We also expanded our Pinch A Penny distribution capabilities. Our Pinch A Penny franchise network added 15 new stores, over two times the number of stores added to the franchise network last year, which is the most stores that the franchise has ever added in a year. Taking advantage of our synergies, we now serve the Pinch A Penny Texas stores through our localized distribution network. Our wide footprint and integrated distribution network opened the door for us to expand quickly throughout the Sunbelt. While we continue to invest in growth driven initiatives, we applied intense focus to controllable and variable expenses without compromising customer experience or service. Orders processed through our B2B POOL360 platform continued to grow in total lines, increasing 3% in 2023, growing from 11% of total lines in 2022% to 14% of total lines in 2023 or a nearly 30% increase in total lines.We also increased total revenue dollars through the tool by 1% in 2023, showing sales through our digital tool growing faster - growing at a rate faster than our overall net sales. These results demonstrate significant progress, particularly in this year's environment and the customers' benefit it provides. We have put significant time and effort into improving this critical user feature like products search, product information, and the overall user experience. With a renewed innovative approach to our customer facing solutions, we marched towards transforming POOL360 from a B2B tool to a complete customer facing digital ecosystem. Last year, we revamped the POOL360 ordering platform in 2023 building on our next generation POOL360 application, we launched our POOL360 water solution software and just last week launched our POOL360 service platform.These are all incredible tools for our customers that will continue to gain traction for years to come. POOL360 Water provides best in class instore and mobile water analysis and offers solutions that help us grow our private label chemical products and improve brand awareness. Water testing from a variety of methods from liquid titration to digital are all fed into the tool, delivering a proprietary diagnosis and chemical dosage recommendation that will ensure a safe and healthy swimming pool. POOL360 Water allows all of our dealers to offer consistent, accurate advice to pool owners and operators while creating demand for our tremendous chemical offering. This tool also has embedded in it a CRM that will help the stores provide an unparalleled customer experience.POOL360 Service designed for our service customers large and small, includes a CRM and applications to better manage their business through facilitating daily routes, quoting and securing one-time service requests, automating, invoicing and collections, enhancing electronic ordering and integrating procurement with their already established POOL360 account. Over the next few years, we plan to add more phases to this digital ecosystem to further add productivity and help our customers grow their business more quickly. For all three platforms, customers can leverage our proprietary best in class digital marketing resources that will help them drive profitable growth for their business. Recognize we are in the early stages of customer adoption, but we see tremendous opportunity to help our retail and service customers expand their offering, provide unique professional services, and connect directly and easily to our products.Moving on, let me comment on our operating income performance. We recorded $747 million in operating income in 2023, down from a record $1 billion in 2022, but up $405 million from 2019. For the quarter, we recorded $79 million in operating income, a 26% decline from 2022 but over three times the operating income of the fourth quarter of 2019. Operating margins for the full year of 2023 was 13.5% compared to a record 16.6% in 2022 and expanded 280 basis points from 2019, demonstrating our ability to leverage fixed costs and effectively manage variable expenses, generating enhanced operating margins while making growth oriented investments in our business. With 2023 behind us, let me comment on the future. I remain excited and very confident in the long term growth potential for our industry and specifically POOLCORP.The growing and aging installed base drives 85% of our revenue through continual maintenance and periodic renovation and upgrading needs. We will continue to do what we do best in serving the non-discretionary maintenance needs which made up over 60% of our business in 2023. We expect slight growth from our maintenance product components in 2024 assuming normal weather conditions. Further, no one is better positioned to serve the pool professional considering our scale, industry leading talent, and digital platform and tools. For the DIY market we have added considerable capabilities to enhance our independent retail products and service offering and will continue to expand Pinch A Penny network to grow share in this important aftermarket and maintenance and repair category.We expect inflationary increases to benefit our consolidated business again in 2024 with an estimated 2% to 3% added to our overall top line. We believe chemical pricing to have largely stabilized. Equipment pricing remains solid as expected and that we will see some fluctuations on commodities that make up a very small portion of our sales. New pool construction represented just under 15% of our business in 2023. Currently, we expect that new pool construction in units could be flattened down 10%. Although likely to reflect higher pool values, the number could vary broadly by market and geography. While the full impact of the interest rate hikes over the past couple of years and timing of future interest rate cuts remain uncertain, the long term outlook for outdoor living products growth remains strong.Aerial view of a swimming pool with outdoor furniture surrounding it.As higher borrowing rates and recent inflation have increased the cost of building a swimming pool to approximately $80,000. We expect budget conscious consumers will likely stay on the sidelines and more affluent consumers seeking pools with enhanced features and products content will drive the mix of new pools towards the higher end again in 2024. Millennials are outpacing other generations seeking homes, and with the slowdown of existing home sales, new construction is making up for the housing shortage, creating new available backyards for swimming pools in the future, but at a slower rate than we have seen for the last several years. We carefully watch this trend and consider it as part of our expansion strategy to ensure that we are located to effectively serve where the new pools will be.Automation and connected products remain a high priority for all and particularly for this generation, driving how we work with our vendor partners to provide the most efficient channel to market for introducing new technology enabled products. Renovation and remodel activity should be stable in most markets, with about 10% of the installed base contemplating a renovation on an annual basis. Surfaces wear out or in need of a more modern look. Equipment gets outdated and becomes uneconomical to operate, maintain, or repair. As we have discussed, we consider this market to be semi-discretionary, so larger R and R sales could potentially be flat to down 10% if higher interest rates persist, but this too will cycle with the economy and borrowing costs.We consider this not an if market but a when market as all pools will need renovation periodically during their normal lifecycle. Considering these sales variables, we are estimating an EPS range for 2024 to be $13.10 to $14.10 on a per share basis, including an estimated $0.10 benefit from ASU. Melanie will provide additional comments on gross margin and expenses in her comments that will help you understand our view. We expect that cash flow from operating activities will be in line with net income and our capital allocation priorities remain unchanged. We will use our robust cash flow to invest in our operations, growth, and expansion. We will fund strategic acquisitions and with the approval of our board, continue to pay dividends and consider share repurchases while maintaining a prudent debt structure, ultimately providing exceptional returns to our shareholders.Our competitive position has never been stronger. We remain approximately five times larger than our nearest competitor and have a history of being relentlessly focused on execution. This execution focus is further enhanced by a new spirit of innovation that will allow us to provide unmatched customer value and support which will enable us to continue gaining share. No doubt the rate of new pool construction has slowed. Consumers are more cautious today than in the last few years, but there is a desirability of pool ownership and outdoor living is strong and will get even stronger. It is imperative that we continue investing, that we continue our focus on the customer and on investments in the future to ensure we get stronger. The demand environment will change as the economy changes and monetary policy evolves, but that impacts only the smaller portion of our business, which is one of the most unique things about the industry.Don't lose sight of the fact that this industry continuously grows upon itself and no other company is better positioned to weather the cycles and continuously improve. Like POOLCORP. I am proud of the continued progress. I am proud of our continued progress as the clear leader of our industry and confident in our superior value proposition of which each of our 6000 plus employees work hard to improve each and every day. In closing, I want to say thank you to the POOLCORP team. As I reflect on this year, it has been a tough one, but because of you, we are a better and stronger company than ever. I also want to thank our supplier partners and most importantly, our customers for helping millions of people enjoy the benefits of healthy outdoor living and making the memories of lifetime.I will now turn the call over to Melanie Hart, our Vice President of Finance and Chief Financial Officer for her detailed commentary.Melanie Hart: Thank you Pete. Good morning everyone. I'll begin our fourth quarter results, move into how we finished out 2023 and then cover what we are seeing as we start 2024. Net sales for fourth quarter showed a modestly improved trend, down 8.4% versus negative 8.7% for the third quarter 2023 when compared to the prior year. Inflation moderated as expected and was an approximate 1% benefit for the quarter. We realized a 29.3% gross margin during the quarter, an improvement of 20 basis points from third quarter 2023 and a 50 basis point improvement over fourth quarter 2022. The year over year change includes a margin decrease from the prior year inventory gain benefits offset by the additional 120 basis points for import taxes recorded in the fourth quarter 2022.During the fourth quarter, operating expenses increased 3% over last year's fourth quarter. Cost inflation in occupancy, wages, and insurance expenses continued to be largely mitigated by sales center operating efficiency improvements and cost management. Operating income of $79 million for the quarter represents a decrease of 26% from prior year operating income of $107 million. Operating margin was 7.9% in the quarter compared to 9.8% in Q4 of 2022. Diluted earnings per share for the fourth quarter was a $1.32 compared to a $1.82 in the fourth quarter of 2022, reflecting lower operating income slightly offset by less interest expense. Now I'll move on to a review of our full year 2023 results. Other than comparing to a record 2022, full year 2023 represented a very strong performance as our industry transitioned from heightened demand of the pandemic period and the effects of inflation and supply chain disruptions we successfully right sized our inventory position, invested for future growth with 14 greenfield sales centers, and five acquired sales centers covering all parts of our business and opened 15 new Pinch A Penny franchise stores, introduced new customer enabling technology, held our operating expenses approximately flat, generated over $820 million in free cash flow, reduced outstanding borrowings by over $330 million and returned almost $475 million to shareholders through dividends and share repurchases.All in all, we're proud of our performance in 2023 as we demonstrated the resilience in our operating model and positioned ourselves for successful future growth. We finished 2023 with net sales of $5.5 billion, a decrease of 10.3% from prior year record net sales. Within net sales, we realized approximately 3% of product cost inflation benefit. Lower levels of net sales were driven principally by reduced new pool construction activities expected to be down around 25% in units built and lower pool renovation and remodel activity, which combined represents approximately 7% points of the reduced total sales during the year. Unfavorable weather during the first half of the year resulted in 2% lower net sales. Lower customer early buys, primarily due to higher customer inventory at the start of the year, and chemical and commodity pricing are estimated to have contributed an additional 2% points of the negative impact on sales in the maintenance portion of the business.Additional impacts representing the remaining 2% points were attributable to declines in sales of certain discretionary products such as heaters and cleaners and lower horizon and Europe sales activity during the year. Lower levels of new pool construction in 2023 slightly changed our estimate of the composition of our North American net sales. For 2022 we estimated sales of new construction related products were approximately 17%, renovation and remodel product sales comprised roughly 22%, and maintenance product sales represented the remaining approximately 61%. In 2023, the lower level of new construction product sales moved that portion of our business closer to 14%, with renovation and remodel product sales estimated at 24% and the remaining 62% coming from maintenance.Based on our sales activity of certain products specifically used in new pool construction, we appear to have outperformed the market as our decreases for these products were less severe than the total market as indicated by reported new pool permit decreases and preliminary estimates of total new pool units constructed in 2023. Gross margin finished the full year in line with our long term target of 30%. As we see in a typical year, we expect pluses and minuses each quarter due to seasonality and product sales mix variations. During the year each of our quarters saw varying fluctuations from normal seasonal patterns as we realized remaining benefits of lower cost inventory impacts from the slow start to the season, product mix changes, and lower vendor incentives resulting from lower purchase levels.Operating expenses increased $6 million to $913 million only a 0.6% increase over 2022, including $12 million related to greenfield sales centers opened and locations acquired during the year. Increased wage inflation, occupancy cost, and continued investments in digital transformation and technology were partially offset by lower incentive-based compensation and volume related sales expenses. The investments in new sales center development and digital transformation are expected to generate additional sales growth and capacity as market conditions stabilize and industry growth returns to normalized levels. Operating margin of 13.5%, decreased 310 basis points compared to the prior year record operating margin of 16.6%, which represented a significant expansion compared to pre-pandemic operating margin levels as we have leveraged scale benefits even when revenue dollars have normalized over prior year and our gross margin rate came in consistent with our long-term target.We received an ASU benefit of $7 million or $0.17 per diluted share for the full year, of which $0.02 was added in the fourth quarter and not included in our prior guidance. Full year tax rate, excluding the ASU, was 25%. Earnings per share for 2023 of $13.35, decreased 29% when compared to the record $18.70 we earned in 2022. Without the impact of the ASU in both periods, our EPS of $13.18 compared to $18.43 was a decrease of 28%. Cash flow from operating activities increased to a record $888 million, an improvement of $403 million over 2022. This includes cash benefit from our strong operating results and a net benefit from our working capital management, including inventory reduction efforts that contributed $230 million. Moving to comments on our balance sheet.We ended the year with accounts receivable totaling $343 million, down $9 million from year-end 2022 and days sales outstanding of 26.8 days comparable to prior year. A great job by the team working to meet our customer needs, especially during a tough demand environment. During the third quarter, we reported on our inventory reduction goals and accomplishments. Even with higher early buy inventory receipt activity during the fourth quarter, we executed almost $230 million reduction in inventory balances year-over-year, including the impact of higher-than-normal number of new locations opened, acquisitions and current year inflation. We expect to see a seasonal increase in first quarter ahead of the 2024 season, but plan to maintain inventory balances throughout 2024 that are lower than 2023.We reduced total debt outstanding by $330 million to $1.05 billion compared to year-end 2022. Total borrowing levels remain below our target leverage ratio of 1.5 to 2x, finishing the year with a leverage ratio of 1.4x. We also repurchased $306 million of our stock, including $119 million in the fourth quarter, reducing our fully diluted weighted average shares outstanding by 800,000 compared to the full year 2023. Additionally, in May 2023, we increased our quarterly dividend per share by 10% to $1.10 when compared with share repurchases, we returned almost $475 million to our shareholders, the second highest year in our history. Next, I'll comment on our outlook for 2024. Pete has included in his comments our expectations regarding the market in 2024 and the timing of net sales growth recovery.With that as a backdrop, we expect to continue to outperform the market in 2024. We are currently expecting flat to low single-digit sales increases in 2024, with a 2% to 3% pricing benefit on a blended product line basis and could potentially see a 1% to 2% benefit from normalized weather, primarily attributable to the first two quarters. This considers our expectation that maintenance will rise slightly with the increase in installed base of pools and discretionary product sales will still see some pressures until economic conditions stabilize. Our guidance considers volume expectations on renovation and remodel and new construction markets continuing at similar levels to 2023 at the high end and the potential for a decrease of up to 10% at the low end.Horizon in Europe could also see modest pressure up to a 5% decline at the low end. During 2024, we will see an increase of two selling days with one in the third quarter and one in the fourth quarter. However, given the timing of extra days, we expect the impact to be less than 1%. Gross margin for the full year is expected to be near our long-term guidance target of 30%. Margin will vary seasonally over the quarters as it has historically, with second quarter typically reflecting the highest gross margin for the year. We expect that the carryover from the remainder of the lower cost inventory sold through in first quarter of 2023 will be substantially similar to the benefit we will get in 2024 from the normalized vendor early buys that took place at the end of 2023.However, the lower level of customer early buys in first quarter 2023 was also a benefit to margins in prior year from which we are not expecting a corresponding impact in 2024. We will see the remaining effect on margins from the lower selling prices of chemicals and commodities also in the first quarter and at current pricing, there should be minimal impact on second quarter. Wages, rent and other operating costs are still a headwind, resulting in modest expense increases in 2024. But our ongoing capacity creation projects throughout the company will drive improved productivity. We plan to continue accelerating our technology initiatives that will exert pressure on the short-term operating margin improvement. However, these additive investments are intended to drive long-term strategic growth, provide increased capacity to grow, and drive continued future operating efficiency.Specifically, we have considered in our SG&A cost guidance incremental expense of $15 million for normalized performance-based compensation, $12 million for new greenfield locations we will open in 2024 and a $20 million incremental investment in our technology initiatives. Overall, we expect 2024 operating margin to be approximately 13%. Interest expense should be between $50 million and $53 million based on current rates and excluding any share repurchases. Depreciation and amortization for 2024 is anticipated to be in the range of $44 million. We are estimating a $0.10 benefit from ASU in the first quarter for the expected impact of restricted shares vesting and stock options expiring in 2024. Our annual tax rate is projected to be approximately 25.3% excluding ASU.For weighted average shares outstanding that will be applied to the net income attributable to common shareholders, we expect approximately 38.7 million shares at the end of Q1 and 38.8 million shares for the remaining quarters with no additional share buybacks. This results in guidance for 2024 diluted EPS of $13.10 to $14.10, including the $0.10 ASU benefit. The midpoint of our guidance represents a 2.4% improvement excluding the ASU. After our record cash flows in 2023, we would expect to see 2024 return to normalized levels of around 100% of net income. Our consistent capital allocation priorities include uses of cash of around 1% to 1.5% of net sales on organic growth, such as ongoing capital expenditures and sales center expansions. We also plan to continue strategic acquisitions, authorized dividends, and share buybacks.We ended the year with $344 million available under our current share repurchase authorization. In 2023, 58% or the majority of our cash flow from operating activities was generated in the second half of the year as is typical from a seasonal standpoint. Since 2019, we have reported increased sales of 73%. Gains from inflation and market share over the 2020 to 2022 higher growth period coupled with acquisitions and relative stability of higher levels of inflation and product cost remain. We also continue to realize higher margin from acquired sales and supply chain and pricing initiatives versus our 2019 levels. Our decision to continue to invest in 2023 and as we move forward to 2024 in areas that have proven can position us for long-term growth while improving our operations and strengthening our leading position in the market will allow us to continue long-term shareholder value.Thank you for joining today's call. We are now ready to open the line for questions.See also 25 Best Zoos in the US and 12 Best Marijuana Stocks To Invest In.To continue reading the Q&A session, please click here.

Insider Monkey

Pool Corporation (NASDAQ:POOL) Q4 2023 Earnings Call Transcript

https://finance.yahoo.com/news/pool-corporation-nasdaq-pool-q4-162730141.html

0f931c14-6f1a-302d-9dfa-f949fa2b1d8e

POOL

Pool Corp's expansive distribution network and product offerings position it as a leader in the swimming pool supplies industry.Market trends and consumer behavior indicate potential growth opportunities in pool maintenance and outdoor living spaces.Technological advancements and a focus on environmentally sustainable products could shape Pool Corp's future strategies.Competition and economic factors remain significant threats that could impact Pool Corp's market share and profitability.Warning! GuruFocus has detected 5 Warning Sign with POOL.Pool Corp (NASDAQ:POOL), the world's largest wholesale distributor of swimming pool supplies, equipment, and related leisure products, has released its 10-K filing on February 27, 2024. This SWOT analysis delves into the company's financials, market position, and strategic outlook. With a market capitalization of over $14 billion as of June 30, 2023, and a robust customer base of approximately 125,000, Pool Corp's financial health is evident. The company's net sales for pool and hot tub chemicals alone accounted for roughly 14% of total net sales in 2023. Despite a decrease in new in-ground pool construction units by 23% in 2023, Pool Corp's diverse product offerings and strategic acquisitions position it well within the industry. This analysis will further explore the strengths, weaknesses, opportunities, and threats as presented in the latest SEC filing.Decoding Pool Corp (POOL): A Strategic SWOT InsightStrengthsExtensive Distribution Network and Product Range: Pool Corp operates 439 sales centers across North America, Europe, and Australia, offering over 200,000 products. This extensive network ensures a broad reach and the ability to provide customers with a wide array of products, from maintenance supplies to construction materials. The company's scale allows for efficient distribution, favorable purchasing conditions, and a competitive edge in product availability and delivery.Market Leadership and Brand Recognition: As a member of the S&P 500 Index and the largest wholesale distributor in its sector, Pool Corp enjoys significant brand recognition and credibility. This reputation is bolstered by its comprehensive selection of both manufacturer and proprietary products, which enhances customer loyalty and trust in the brand.Story continuesFinancial Stability: Pool Corp's financial performance, with a market value of over $14 billion and consistent net sales, reflects its financial stability. This strong financial foundation allows for strategic investments in growth initiatives and resilience against market fluctuations.WeaknessesDependence on Seasonal and Economic Factors: The swimming pool industry is subject to seasonal demand and economic conditions that influence consumer spending on new pools and renovations. Pool Corp's performance is therefore tied to these external factors, which can lead to fluctuations in sales and profitability.Concentration of Customer Base: While Pool Corp serves a large number of customers, most are small, family-owned businesses with limited capital resources. This concentration could pose risks if these customers face economic hardship or if there is a shift in market dynamics favoring larger retailers or direct-to-consumer models.Competition and Market Penetration: Intense competition from regional, local, and national distributors, as well as from mass market and internet retailers, presents ongoing challenges. Pool Corp must continuously innovate and differentiate its offerings to maintain and grow its market share.OpportunitiesGrowth in Outdoor Living and Sustainability Trends: Increasing consumer interest in enhancing outdoor living spaces and investing in environmentally sustainable, energy-efficient products presents significant growth opportunities. Pool Corp can capitalize on these trends by expanding its product lines and marketing efforts in these areas.Technological Advancements: The company's investment in Pool360 technologies and other digital tools provides an opportunity to improve customer service and operational efficiency. Embracing e-commerce and digital marketing strategies can attract new customers and strengthen relationships with existing ones.Strategic Acquisitions and Market Expansion: Pool Corp's history of strategic acquisitions, such as Sun Wholesale Supply, and its plans for further expansion into new geographic markets and product categories, offer pathways for continued growth and diversification.ThreatsEconomic Downturns and Consumer Spending: Economic downturns can lead to reduced consumer spending on discretionary items like pools and renovations. Higher interest rates and a potential housing market slowdown could negatively impact Pool Corp's sales and profitability.Supply Chain Disruptions: Global supply chain challenges, including vendor backlogs and production shutdowns, can affect product availability and lead to increased costs. These disruptions could hinder Pool Corp's ability to meet customer demand and maintain profit margins.Regulatory and Environmental Pressures: Pool Corp must navigate regulatory requirements and environmental concerns related to the chemicals and products it distributes. Compliance costs and potential shifts in consumer preferences towards eco-friendly alternatives could impact the company's operations and product offerings.In conclusion, Pool Corp (NASDAQ:POOL) exhibits a robust market presence with its extensive distribution network, strong brand recognition, and financial stability. However, it must address weaknesses such as its dependence on seasonal and economic factors, as well as the intense competition it faces. Opportunities for growth lie in the rising trends of outdoor living and sustainability, technological advancements, and strategic market expansion. Nevertheless, threats from economic downturns, supply chain disruptions, and regulatory pressures loom on the horizon. Pool Corp's strategic focus on innovation, customer service, and sustainable practices will be crucial in leveraging its strengths and opportunities while mitigating 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 Pool Corp (POOL): A Strategic SWOT Insight

https://finance.yahoo.com/news/decoding-pool-corp-pool-strategic-050801768.html

e0c2b7be-4203-3f0a-b8be-ef9f66ae07fd

POOL

In this article, we discuss 11 best March dividend stocks to buy. You can skip our detailed analysis of dividend capture strategy and performance of dividend stocks, and go directly to read 5 Best March Dividend Stocks To Buy. Dividend investing is highly favored among investors because of its potential for long-term benefits. However, there's another approach called the dividend capture strategy, which some investors employ to focus on short-term gains. This strategy involves frequent trading with the goal of capturing the cash payouts from more stocks than one would typically receive through traditional buy-and-hold methods. Unlike the conventional approach where investors hold onto stocks for longer periods, dividend capture involves swiftly moving in and out of various stocks to secure a continuous flow of dividends. It's essentially an income-oriented trading strategy that aims to generate dividends from a diverse range of stocks over short timeframes, rather than relying on periodic payouts from a select few stocks.Regardless of the specific investment approach, dividend stocks have consistently captured investors' attention due to their reliable returns over time. Particularly, companies that have consistently increased their dividend payouts have historically outperformed other asset classes. As indicated in a report from Nuveen, over extended periods, companies that consistently raise dividends or initiate dividend payments have demonstrated superior returns with lower risk, as measured by standard deviation, compared to companies that maintain, reduce, or eliminate their dividends. Walmart Inc. (NYSE:WMT), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV) are some of the best dividend growth stocks to invest in. Aside from focusing on the growth of dividends, the report also highlighted the significance of payout ratios. Companies that are barely earning enough to cover dividend payments or those allocating most of their earnings as dividends might face challenges from competitors. This is because their cash flow might not be adequate to sustain their operations effectively. Moreover, companies with high dividend yields, particularly those with high payout ratios, could face risks of limited future growth. This situation could potentially endanger both the appreciation of share prices and the growth of dividends.Story continuesFortunately, the S&P 500's dividend payout ratio is currently lower than its typical long-term average, and consensus forecasts predict an 11% growth in earnings per share for 2024. These factors are expected to contribute to attractive returns for shareholders. Furthermore, companies are maintaining substantial cash reserves on their balance sheets, totaling $1.9 trillion as of September 30, 2023, which is close to the highest levels seen in the past twenty years. Additionally, with equity market valuations surpassing their long-term averages, there's a likelihood that corporate management teams will prioritize dividend growth in 2024 over stock buybacks as a means of rewarding shareholders, given the elevated valuations.Against commonly held beliefs, dividend growth from companies showed resilience throughout 2023, spanning various sectors and geographical regions, as reported by Janus Henderson. However, certain sectors such as mining, select energy stocks, and chemicals experienced challenges in this regard. Notably, the market observed a higher standard of dividend growth, with a reduced dependence on one-time special dividends and exchange rate fluctuations, which were prominent features in 2022. The firm maintained a positive outlook on dividends, although it exercised caution as companies and economies adapt to higher interest rates. It emphasized that dividends have demonstrated less volatility compared to earnings over time, with the majority of companies consistently increasing dividends annually. Furthermore, dividends exhibit less cyclical behavior than commonly perceived by investors. Sectors such as consumer staples, utilities, pharmaceuticals, and telecommunications are known for their consistent dividend payouts, offering a protective cushion against sectors more susceptible to economic fluctuations, such as banks, energy, and mining. Taking an active and diversified approach to income investing across various regions and sectors can provide reassurance during periods of market uncertainty and facilitate the accumulation of long-term wealth.In view of this, we will discuss some of the best dividend stocks to buy in March.11 Best March Dividend Stocks To BuyPhoto by nick chong on UnsplashOur Methodology:For this list, we selected dividend stocks that will trade ex-dividend in March 2024. Ex-dividend date indicates the cutoff day to buy a stock to receive its upcoming dividend payment. We also measured hedge fund sentiment around each stock, according to Insider Monkey’s Q4 2023 data of 910 elite funds. The list is ranked in ascending order of their ex-dividend dates. 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).11. Stanley Black & Decker, Inc. (NYSE:SWK)Ex-Dividend Date: March 7Stanley Black & Decker, Inc. (NYSE:SWK) is a diversified global provider of hand tools, power tools, and related accessories, mechanical access solutions, electronic security solutions, engineered fastening systems, infrastructure solutions, and more. On February 27, the company declared a quarterly dividend of $0.81 per share, which was in line with its previous dividend. It is one of the best dividend stocks on our list as the company has been paying regular dividends to shareholders for the past 156 years while maintaining a 56-year streak of consistent dividend growth. The stock has a dividend yield of 3.62%, as of March 5.The number of hedge funds tracked by Insider Monkey owning stakes in Stanley Black & Decker, Inc. (NYSE:SWK) jumped to 32 in Q4 2023, from 19 in the previous quarter. The collective value of these stakes is over $416.6 million.10. Evergy, Inc. (NASDAQ:EVRG)Ex-Dividend Date: March 8Evergy, Inc. (NASDAQ:EVRG) is a Missouri-based electric utility company that provides electricity generation, transmission, and distribution services to residential, commercial, industrial, and wholesale customers. The company declared a 5% hike in its quarterly dividend to $0.6425 per share on February 29. This was the company's 19th consecutive year of dividend growth, which makes EVRG one of the best dividend stocks on our list. The stock's dividend yield on March 5 came in at 5.14%.At the end of Q4 2023, 39 hedge funds tracked by Insider Monkey reported having stakes in Evergy, Inc. (NASDAQ:EVRG), up from 34 in the previous quarter. The total value of these stakes is more than $1 billion. Among these hedge funds, Point72 Asset Management was the company's leading stakeholder in Q4.9. Old Republic International Corporation (NYSE:ORI)Ex-Dividend Date: March 8Old Republic International Corporation (NYSE:ORI) will be trading ex-dividend on March 8. The diversified insurance company provides property and casualty insurance coverage to individuals, businesses, and institutions. It currently pays a quarterly dividend of $0.265 per share, having raised it by 8.2% on March 2. Through this increase, the company achieved its 44th annual consecutive dividend growth. With a dividend yield of 3.63% as of March 5, ORI is one of the best dividend stocks on our list.As of the close of Q4 2023, 25 hedge funds in Insider Monkey's database held stakes in Old Republic International Corporation (NYSE:ORI), growing from 21 in the preceding quarter. These stakes are collectively valued at over $287.5 million.8. Salesforce, Inc. (NYSE:CRM)Ex-Dividend Date: March 13Following in the footsteps of Meta Platforms, Inc. (NASDAQ:META), Salesforce, Inc. (NYSE:CRM) also recently announced its first-ever dividend. The cloud-based software company concluded its fiscal year 2024 on a high note, showcasing its prowess in effectively managing the balance between increasing sales and profits. Furthermore, the enterprise software leader announced enhancements to its stock buyback initiative. The company offers a quarterly dividend of $0.40 per share for a dividend yield of 0.51%, as of March 5.Salesforce, Inc. (NYSE:CRM) was a part of 131 hedge fund portfolios at the end of Q4 2023, growing significantly from 122 in the previous quarter, as per Insider Monkey's database. The stakes owned by these hedge funds have a collective value of roughly $15 billion. With over 2.1 million shares, AQR Capital Management was the company's leading stakeholder in Q4.7. Pool Corporation (NASDAQ:POOL)Ex-Dividend Date: March 13Pool Corporation (NASDAQ:POOL) is next on our list of the best dividend stocks that will be trading ex-dividend in March. The company serves a diverse customer base that includes swimming pool builders, retailers, and service companies. It has been rewarding shareholders with growing dividends for the past 12 years and currently offers a quarterly dividend of $1.10 per share. As of March 5, the stock has a dividend yield of 1.09%.At the end of December 2023, 42 hedge funds tracked by Insider Monkey held stakes in Pool Corporation (NASDAQ:POOL), up from 41 in the previous quarter. The overall value of these stakes is over $767 million.6. Linde plc (NASDAQ:LIN)Ex-Dividend Date: March 13Linde plc (NASDAQ:LIN) ranks sixth on our list of the best dividend stocks going ex-dividend in March. The multinational industrial gases and engineering company declared a 9% hike in its quarterly dividend to $1.39 per share. This marked the company's 29th consecutive year of dividend growth. The stock's dividend yield on March 5 came in at 1.22%.Insider Monkey's database of Q4 2023 indicated that 74 hedge funds owned stakes in Linde plc (NASDAQ:LIN), up from 71 in the previous quarter. The consolidated value of these stakes is nearly $4 billion. Scopus Asset Management owned a LIN stake worth over $25.7 million, becoming the company's leading shareholder in Q4. Click to continue reading and see 5 Best March Dividend Stocks To Buy.  Suggested articles:13 Best Pharma Dividend Stocks To Buy in 202411 Best Consumer Electronics Stocks To Buy11 Best Cruise Stocks To Buy NowDisclosure. None. 11 Best March Dividend Stocks To Buy is originally published on Insider Monkey.

Insider Monkey

11 Best March Dividend Stocks To Buy

https://finance.yahoo.com/news/11-best-march-dividend-stocks-083954962.html

d103839d-846d-3e59-882d-6bf30eb2ba56

PPG

The latest trading session saw PPG Industries (PPG) ending at $144.37, denoting a +0.69% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.04%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.28%.The paint and coatings maker's stock has climbed by 0.41% in the past month, falling short of the Basic Materials sector's gain of 1.21% and the S&P 500's gain of 5.01%.The upcoming earnings release of PPG Industries will be of great interest to investors. The company is forecasted to report an EPS of $1.89, showcasing a 3.85% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $4.43 billion, showing a 1.16% escalation compared to the year-ago quarter.For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.47 per share and a revenue of $18.59 billion, signifying shifts of +10.43% and +1.91%, respectively, from the last year.Investors should also note any recent changes to analyst estimates for PPG Industries. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.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, the Zacks Consensus EPS estimate has moved 0.1% lower. PPG Industries currently has a Zacks Rank of #3 (Hold).From a valuation perspective, PPG Industries is currently exchanging hands at a Forward P/E ratio of 16.92. This represents a discount compared to its industry's average Forward P/E of 17.29.Story continuesOne should further note that PPG currently holds a PEG ratio of 1.41. 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. Chemical - Specialty stocks are, on average, holding a PEG ratio of 2.58 based on yesterday's closing prices.The Chemical - Specialty industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% of all 250+ industries.The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Remember to apply Zacks.com to follow these and more stock-moving metrics during 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 reportPPG Industries, Inc. (PPG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

PPG Industries (PPG) Rises Higher Than Market: Key Facts

https://finance.yahoo.com/news/ppg-industries-ppg-rises-higher-225008423.html

8c02345d-f18d-371c-9dc8-1e1ab74d88c4

PPG

PITTSBURGH, February 26, 2024--(BUSINESS WIRE)--PPG (NYSE: PPG), a global leader in paints, coatings, and specialty materials, today announced that it has engaged Goldman Sachs & Co. LLC as financial advisor to assist in a review of strategic alternatives for its architectural coatings business in the U.S. and Canada.PPG’s architectural coatings business in the U.S. and Canada, which operates within the company’s performance coatings segment, is an industry leader in residential and commercial architectural coatings through its well-known portfolio of brands, including GLIDDEN®, OLYMPIC®, LIQUID NAILS®, HOMAX®, PITTSBURGH PAINTS & STAINS®, Manor Hall®, FLOOD®, DULUX® (in Canada), and SICO®, among others. The business manufactures and sells interior and exterior paints, stains, caulks, repair products, adhesives, and sealants for homeowners and professionals. It also includes certain light-duty protective coatings products that are primarily sold through company-owned stores and manufactured through a common factory footprint.In total, the distribution network includes more than 15,000 touchpoints through company-owned stores, independent dealer locations, and major home improvement centers and retailers across the U.S. and Canada. In 2023, the architectural coatings business in the U.S. and Canada represented approximately 10% of PPG’s total net sales.PPG Chairman and Chief Executive Officer, Tim Knavish, said, "The architectural coatings business in the U.S. and Canada has a well-established position in a growing market, leading brands, proven innovation, established customers, and dedicated and talented employees. We have made considerable progress over the past several years in modernizing the architectural coatings business model to better position the business for continued success. This has included instituting value-added customer-facing digital tools, revamping our manufacturing and distribution footprint, transitioning towards an asset-light distribution model, and introducing innovative products that enhance customer productivity and sustainability. Our actions over the past several years have created positive momentum in the business as we have significantly increased the number of distribution points for our well-known brands. These changes have been recognized in the industry and validate the progress of the business’ transformed strategy. The business is now poised to accelerate this transformation.Story continues"We are exploring this strategic review now given the positive momentum in the business, with the intent of ensuring its continued growth and success while also maximizing the value for PPG and its shareholders. We will assess whether some or all of the business could be better suited to grow faster with a partner or different owner, or may be better suited to operate as a core business within another company, as a standalone entity, or in a joint venture. Our review will help to determine if any of these alternative structures will provide the business with more speed and accelerated growth capability. Throughout this process, we will continue to fully support the business, our employees, and our architectural coatings customers throughout the U.S. and Canada."In January, we announced a strategic review of alternatives for our silica products business and are now also conducting a review of our architectural coatings U.S. and Canada business. These actions reflect a regular and disciplined strategic assessment process by our Board and management team, including ensuring each of our businesses delivers value for our customers and shareholders, and aligns with the growth and investment strategies for the company," said Knavish.Despite the business delivering flat sales volumes in 2023, on a 3-year pro forma basis PPG’s overall company sales volume results would have improved cumulatively by over 200 basis points excluding the architectural coatings U.S. and Canada business. Also, the company’s Performance Coatings segment operating (EBIT) income, excluding the U.S. and Canada architectural coatings EBIT and the associated growth-related investments we have made, would have resulted in an approximately 300-basis point improvement in segment margins in 2023.The timing and outcome of the strategic review is uncertain. There is no assurance that the review will result in any transaction or other outcome. PPG does not intend to disclose developments or provide updates on the progress or status of the review unless and until it deems further disclosure is appropriate or required. PPG’s strategic review of its architectural coatings business in the U.S. and Canada does not include its architectural coatings businesses in the other regions around the world, including in Latin America, Europe and Asia Pacific, where PPG holds strong #1 or #2 positions in a number of key countries.The architectural coatings business in the U.S. and Canada is led by about 6,600 employees, and manufactures and distributes products through dedicated facilities in:Manufacturing: East Point, GA; Oakwood, GA; Louisville, KY; Huron, OH; Reno, NV; Carrollton, TX; Temple, TX; Delta, BC (Canada); and Vaughan, ON (Canada).Distribution: Huron, OH; Oakwood, GA; Reno, NV; Aurora, IL; Flower Mound, TX; Riverside, CA; Reading, PA; Carolina, PR (Puerto Rico); Calgary, AB (Canada); Delta, BC (Canada); Toronto, ON (Canada); and Moncton, NB (Canada).The architectural coatings business’ footprint in the U.S. and Canada includes approximately 750 company owned stores in the U.S. (including Puerto Rico) and Canada.In addition, its headquarters is located in Cranberry, PA, which includes the leadership and administrative team for the business. The business also has an office in Vaughan, ON (Canada) and Boucherville, QC (Canada), which includes additional administrative teams.The company will hold a conference call to discuss the strategic review of its US and Canada architectural coating business today, February 26, at 9:00 a.m. ET. Participants can pre-register for the conference by navigating to https://www.netroadshow.com/events/login?show=d5d8bf31&confId=61593 . The conference call also will be available in listen-only mode via Internet broadcast from the PPG Investor Center at www.ppg.com. A telephone replay will be available February 27, beginning at approximately 11:00 a.m. ET, through March 11, at 11:59 p.m. ET. The dial-in numbers for the replay are: in the United States, 1-833-470-1428; Canada, 1-226-828-7575; UK, (Local) 20-8068-2558; international, +44-20-8068-2558; passcode 947016. A Web replay also will be available shortly after the call on the PPG Investor Center at www.ppg.com, and will remain through Wednesday, February 26, 2025.PPG: WE PROTECT AND BEAUTIFY THE WORLD®At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and specialty materials that our customers have trusted for over 140 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net sales of $18.2 billion in 2023. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.The PPG Logo, We protect and beautify the world are registered trademarks of PPG Industries Ohio, Inc.Forward-Looking StatementsStatements contained in this press release relating to matters 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, including statements about the future performance of PPG’s architectural coatings business and potential outcomes of the review of strategic alternatives for the business. You can identify forward-looking statements by the fact that they do not relate strictly to current or historic facts. Forward-looking statements are identified by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "project," "outlook," "forecast" and other expressions that indicate future events and trends. Many factors could cause actual results to differ materially from the forward-looking statements contained herein. Such factors include the potential outcome of the review of strategic alternatives for the business; the timing of any transaction and whether any transaction will be entered into or consummated at all; the terms, structure, benefits and costs of any transaction; the risk that the review and its announcement could have an adverse effect on the architectural coatings business or PPG’s results of operations; the risk that the review could divert the attention and time of PPG’s management; the risk of any unexpected costs or expenses resulting from the review; the risk of any litigation relating to the review and the risks and uncertainties described in our Annual Report on Form 10-K for the year ended December 31, 2023 and those described from time to time in our future reports filed with the Securities and Exchange Commission. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.All information in this press release speaks only as February 26, 2024, and any distribution of this release after that date is not intended and will not be construed as updating or confirming such information. PPG undertakes no obligation to update any forward-looking statement, except as otherwise required by applicable law.CATEGORY CorporateView source version on businesswire.com: https://www.businesswire.com/news/home/20240226296188/en/ContactsPG Media Contact: Mark SilveyCorporate [email protected] Investor Contact: Jonathan EdwardsInvestor [email protected] investor.ppg.com

Business Wire

PPG to review strategic alternatives for architectural coatings business in the U.S. and Canada

https://finance.yahoo.com/news/ppg-review-strategic-alternatives-architectural-120000340.html

dc60a5aa-165e-3a35-8845-462cad4a35ce

PPG

The most recent trading session ended with PPG Industries (PPG) standing at $140.12, reflecting a +0.96% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.51% gain on the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.58%.Shares of the paint and coatings maker have depreciated by 0.79% over the course of the past month, underperforming the Basic Materials sector's gain of 4.25% and the S&P 500's gain of 2.94%.The investment community will be paying close attention to the earnings performance of PPG Industries in its upcoming release. The company is predicted to post an EPS of $1.89, indicating a 3.85% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $4.43 billion, up 1.16% from the prior-year quarter.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.47 per share and a revenue of $18.59 billion, indicating changes of +10.43% and +1.91%, respectively, from the former year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for PPG Industries. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. PPG Industries presently features a Zacks Rank of #3 (Hold).Story continuesIn terms of valuation, PPG Industries is presently being traded at a Forward P/E ratio of 16.38. This represents a discount compared to its industry's average Forward P/E of 17.47.One should further note that PPG currently holds a PEG ratio of 1.37. 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 Chemical - Specialty industry currently had an average PEG ratio of 2.13 as of yesterday's close.The Chemical - Specialty industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 137, placing it within the bottom 46% of over 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 follow all of these stock-moving metrics, and many more, on Zacks.com.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 reportPPG Industries, Inc. (PPG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

PPG Industries (PPG) Surpasses Market Returns: Some Facts Worth Knowing

https://finance.yahoo.com/news/ppg-industries-ppg-surpasses-market-225012102.html

aca6ef58-bdf2-31f8-90e9-b6d957b562df

PPG

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.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.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.PPG Industries (PPG)PPG Industries Inc., based in Pennsylvania, is a global supplier of paints, coatings, chemicals, specialty materials, glass, and fiber glass. The company has manufacturing facilities and equity affiliates in about 70 countries.PPG boasts a Momentum Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of PPG Industries has seen some interesting price action recently; the stock is down 0.5% over the past one week and up 1.6% over the past four weeks. And in the last one-year period, PPG has gained 10.6%. As for the stock's trading volume, 1,615,005.25 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, three analysts revised their earnings estimate higher in the last 60 days for PPG, while the Zacks Consensus Estimate has increased $0.03 to $8.47 per share. PPG also boasts an average earnings surprise of 7.7%.Investors should take the time to consider PPG for their portfolios due to its solid Zacks Ranks, notable earnings metrics, and impressive Momentum and VGM Style Scores.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 reportPPG Industries, Inc. (PPG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Here's Why PPG Industries (PPG) is a Strong Momentum Stock

https://finance.yahoo.com/news/heres-why-ppg-industries-ppg-145008922.html

a4bd6dfe-72c5-3fb5-9995-93aefc8cab9a

PPL

Cornett, a 25-year utility industry veteran, will succeed Dave Bonenberger March 4ALLENTOWN, Pa., Feb. 21, 2024 /PRNewswire/ -- PPL Corporation (NYSE: PPL) today announced 25-year utility industry veteran Greg Cornett has been named president of Rhode Island Energy (RIE). Effective March 4, Cornett will succeed Dave Bonenberger, who is moving into a new role as PPL Senior Vice President and Chief Operating Officer – Utilities. Greg Cornett | Source: PPL CorporationWhile Bonenberger's role is changing, he will remain responsible for ensuring RIE's seamless transition to PPL systems and processes as the company works to exit its remaining transition service agreements with National Grid by mid-2024. In addition, Bonenberger will be responsible for utility operations across PPL.Along with Cornett's appointment, PPL is also promoting Vice President of Electric Operations Alan LaBarre to RIE Chief Operating Officer. LaBarre has 35 years of utility experience serving Rhode Island communities. He will oversee electric and natural gas operations to ensure safe, reliable energy delivery for RIE customers."With Greg's excellent leadership skills, deep knowledge of the utility industry, collaborative nature and strong commitment to our mission, he is an outstanding fit to lead Rhode Island Energy into the future," said PPL President and Chief Executive Officer Vincent Sorgi. "He joins Alan and a very strong and experienced local leadership team that is 100% focused on making a positive impact in our communities and advancing a clean energy transition while ensuring safe, reliable and affordable energy for our customers."Cornett currently serves as Vice President and Deputy General Counsel for PPL. Prior to his current role, he served as Associate General Counsel and Director of Legal Services for PPL subsidiaries Louisville Gas and Electric Company and Kentucky Utilities Company. He also previously was an equity member with a large law firm in Kentucky, where he focused his work in the utility sector.Story continues"I'm honored to lead Rhode Island Energy and excited to engage with a wide variety of stakeholders to secure a sustainable energy future for our customers," said Cornett. "Rhode Island Energy is uniquely situated to help the state meet its energy and climate goals in a way that preserves energy affordability and enhances reliability for customers. As we embrace this opportunity, I'm eager to support the state's long-term growth and success."RIE is part of the PPL family of companies. The utility provides essential energy services to more than 770,000 customers across Rhode Island through the delivery of electricity or natural gas.About PPLPPL Corporation (NYSE: PPL), headquartered in Allentown, Pennsylvania, is a leading U.S. energy company focused on providing electricity and natural gas safely, reliably and affordably to more than 3.5 million customers in the U.S. PPL's high-performing, award-winning utilities are addressing energy challenges head-on by building smarter, more resilient and more dynamic power grids and advancing sustainable energy solutions. For more information, visit www.pplweb.com.Note to Editors: Visit our media website at www.pplnewsroom.com for additional news about PPL Corporation.Contacts:For news media: Ryan Hill, 610-774-4033For financial analysts: Andy Ludwig, 610-774-3389CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/ppl-corporation-names-greg-cornett-president-of-rhode-island-energy-302068067.htmlSOURCE PPL Corporation; Rhode Island Energy

PR Newswire

PPL Corporation names Greg Cornett president of Rhode Island Energy

https://finance.yahoo.com/news/ppl-corporation-names-greg-cornett-221500299.html

495a85ef-de4c-34d4-8b8a-5d5e0b39ecfe

PPL

The board of PPL Corporation (NYSE:PPL) has announced that it will be paying its dividend of $0.2575 on the 1st of April, an increased payment from last year's comparable dividend. Based on this payment, the dividend yield for the company will be 3.8%, which is fairly typical for the industry. See our latest analysis for PPL PPL's Earnings Easily Cover The DistributionsWe like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. Based on the last payment, earnings were actually smaller than the dividend, and the company was actually spending more cash than it was making. Paying out such a large dividend compared to earnings while also not generating free cash flows is a major warning sign for the sustainability of the dividend as these levels are certainly a bit high.The next year is set to see EPS grow by 92.0%. Under the assumption that the dividend will continue along recent trends, we think the payout ratio could be 50% which would be quite comfortable going to take the dividend forward.historic-dividendDividend VolatilityThe company has a long dividend track record, but it doesn't look great with cuts in the past. The dividend has gone from an annual total of $1.47 in 2014 to the most recent total annual payment of $1.03. The dividend has shrunk at around 3.5% a year during that period. Generally, we don't like to see a dividend that has been declining over time as this can degrade shareholders' returns and indicate that the company may be running into problems.Dividend Growth Potential Is ShakyGiven that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. PPL's EPS has fallen by approximately 17% per year during the past five years. Dividend payments are likely to come under some pressure unless EPS can pull out of the nosedive it is in. Over the next year, however, earnings are actually predicted to rise, but we would still be cautious until a track record of earnings growth can be built.Story continuesPPL's Dividend Doesn't Look GreatOverall, while the dividend being raised can be good, there are some concerns about its long term sustainability. The company isn't making enough to be paying as much as it is, and the other factors don't look particularly promising either. Considering all of these factors, we wouldn't rely on this dividend if we wanted to live on the income.Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 2 warning signs for PPL that investors should take into consideration. Is PPL not quite the opportunity you were looking for? Why not check out 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.

PPL (NYSE:PPL) Has Announced That It Will Be Increasing Its Dividend To $0.2575

https://finance.yahoo.com/news/ppl-nyse-ppl-announced-increasing-113640906.html

a258f4bf-8cc6-32fa-8e35-8f18bc10fbba

PPL

PPL Corporation’s PPL ongoing investments in infrastructure construction projects and fewer outages will help serve customers efficiently. Focusing on cleaner power generation and growth in domestic operations will increase the company’s overall performance.However, this Zacks Rank #4 (Sell) company has to face risks related to dependence on its subsidiaries and rising competition in the transmission business.TailwindsPPL has a capital investment plan of $3.1 billion in 2024 and a total of $14.3 billion for the period of 2024-2027. The company’s capital investment plan primarily focuses on infrastructure construction projects for generation, transmission and distribution. Customers have been experiencing fewer outages, courtesy of ongoing investments to strengthen PPL’s infrastructure.The company will invest in strengthening grid, electricity and gas distribution and electricity transmission and expand renewable generation capacity. It will also focus on new technology to serve customers more efficiently.The company is also working to reduce its operating and maintenance (O&M) costs. It has already lowered costs by $75 million in 2023 from 2021 baseline and expects $120-$130 million in savings in O&M costs in 2024, $150 million in 2025 and save $175 million in 2026. The company is focused on reducing total operating expenses in the coming years, due to decrease in fuel cost and energy purchases. These initiatives will boost the company’s margins and support earnings growth.HeadwindsPPL conducts all operations through its subsidiaries. The company’s consolidated assets are also held by its subsidiaries. Its ability to repay debt, guarantee obligations and pay dividends is largely dependent upon the earnings of those subsidiaries.The company’s Pennsylvania-regulated segment faces competition for transmission projects. To develop transmission projects and structure their costs, it must abide by certain rules of the Federal Energy Regulatory Commission.Story continuesStocks to ConsiderSome better-ranked stocks from the same industry are Avangrid AGR, NiSource Inc. NI and DTE Energy DTE, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Avangrid’s long-term (three-to-five-year) earnings growth rate is 24.37%. The Zacks Consensus Estimate for AGR’s 2024 EPS indicates an increase of 7.66% from the previous year’s reported number.NiSource’s long-term earnings growth rate is 7.15%. The Zacks Consensus Estimate for NI’s 2024 EPS implies an improvement of 6.88% from that recorded in 2023.DTE Energy’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for DTE’s 2024 EPS indicates an increase of 16.93% from the previous year’s reported number.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 reportPPL Corporation (PPL) : Free Stock Analysis ReportNiSource, Inc (NI) : Free Stock Analysis ReportDTE Energy Company (DTE) : Free Stock Analysis ReportAvangrid, Inc. (AGR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

PPL Corporation (PPL) Rides on Investments, Cost Management

https://finance.yahoo.com/news/ppl-corporation-ppl-rides-investments-124500964.html

7026951f-3e46-3ab1-8a02-e7911e0d3690

PRU

In this article, we will list the top 20 companies with the most cash reserves. If you want to skip our detailed discussion about cash hoarding by nonbanking US firms, go to 7 Companies With the Most Cash Reserves. A recent research by Harvard Business Review revealed that nonbanking US companies have increased their hoards of cash significantly post-pandemic. Traditionally, financial institutions such as banks keep large sums of cash in hand because they are in the business of lending money. It does not make any apparent sense for nonbanking companies to hoard large piles of cash and collect only interest when cash could be invested for larger profits. According to the latest figures, the total cash reserves of the nonbanking US companies are a whopping $6.9 trillion, nearly equivalent to the GDPs of Germany and India combined. Today, cash represents $1 out of every $5 of total assets held by nonbanking US firms. As we dig a little deeper, the reasons for keeping cash reserves become clearer. According to analysts, companies are hoarding cash because it helps them avoid premature failures that might decimate shareholder value. It allows them greater investment and operational flexibility. Economies around the world are increasingly becoming knowledge-based. The 'winner-take-all reward' model is quite prevalent in industries around the world. So, nonbanking firms are hoarding cash to utilize now-or-never opportunities. Cash also provides a cushion to bridge the timing mismatch between cash generation and sudden cash needs. In simple terms, it gives the firms the flexibility to quickly capitalize on profitable opportunities. However, there is more to this story. Maintaining and building flexibility to capitalize on profitable opportunities is one side of the coin when it comes to hoarding cash. Higher cash reserves allow the companies to avoid taxes since they can only be collected on profits made by investments. The premise of investing cash in profitable investments rather than collecting only interest does not factor in the tax rate applied to those profits.Story continuesSo, it would only make sense for companies to invest rather than hoard cash if the investment is significantly net positive, including tax. Even if the investment is net positive after taxation but without a significant margin, it makes more sense for companies to keep the cash in hand for a small cost and utilize it when a one-of-a-kind opportunity arises. Then, there is also an exception of firms with subjective valuation. These firms might struggle to access capital quickly, and so keep a large proportion of their assets as cash in hand. It is quite interesting to note that multinationals whose value is generated primarily by their intellectual property are hoarding cash. Research by the professors at Kellogg School of Management found that reserves of Apple, Inc. (NASDAQ:AAPL), Alphabet, Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT) accounted for 92% of cash reserves that they could document. Naturally, all of these are tech companies and are also part of our top tech companies list. All three companies are extensively involved in research and development. In fact, last year  Microsoft Corporation (NASDAQ:MSFT) held off increasing the salaries of its employees, citing investment in AI as one of the reasons. It is worth noting that two of these companies, Microsoft Corporation (NASDAQ:MSFT) and  Alphabet, Inc. (NASDAQ:GOOG) are in competition with each other for the development of AI models. Microsoft Corporation (NASDAQ:MSFT) has invested heavily in Open AI, whereas Alphabet, Inc. (NASDAQ:GOOG) has invested in Antropic. It is quite apparent that both companies see the AI revolution as one of a kind opportunity that they want to capitalize on. In 2018,  Apple, Inc. (NASDAQ:AAPL) set an ambitious goal to reach a net cash neutral position where any cash in hand is balanced by its total debt. However, last year, the company took drastic steps to decrease the pile of idle cash it was sitting on. Apple, Inc. (NASDAQ:AAPL) returned much of the cash to shareholders in the form of share buybacks and dividends. It is worth noting here that despite all of the cash hoarding by nonbanking US companies, the financial sector and banking institutions have the most cash. This is apparent in our list as an overwhelming majority are financial institutions. With that backdrop, let's look at the top 20 companies with the most cash reserves. Top 20 Companies With the Most Cash ReservesA bank teller in a full-service office, counting and organizing cash.MethodologyFor our list of the top  20 companies with the most cash reserves, we researched online for companies with significant 'cash on hand' in their balance sheets. Then, we sorted the companies according to 'cash on hand', the higher this figure, the higher the company ranks on our list. 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 looking for the best stocks to buy you can benefit from the wisdom of hedge funds and corporate insiders.20 - Barclays PLC (NYSE:BCS)Cash On Hand - $287.13 BHeadquartered in London, UK, Barclays PLC (NYSE:BCS) is a British multinational investment bank and financial services company. It offers several financial services to consumers, small businesses, and larger financial institutions. The Bank also offers a variety of private banking, advisory, and investment services. It is also committed to innovation, which is evident in its partnership with IBM to explore the potential of generative AI. 19 - MetLife, Inc. (NYSE:MET)Cash On Hand - $292.39 BMetLife, Inc. (NYSE:MET) is 19th on our list of the top 20 companies with the most cash reserves. The company provides insurance, annuities, and employee benefit programs. MetLife, Inc. (NYSE:MET) also provides auto and home insurance through its partnership with Farmers Insurance's GroupSelect Auto Insurance. 18 - China Life Insurance Company Limited (HKG:2628)Cash On Hand - $307.44 BChina Life Insurance Company Limited is the only overseas wholly-owned subsidiary of China Life Insurance (Group) Company. It has a strong presence in Hong Kong, Macau, and Singapore. The company provides insurance solutions and investment services, which include, group life insurance, individual life insurance, travel insurance, and investment insurance. 17 - HSBC Holdings plc (NYSE:HSBC)Cash On Hand - $309.50 BHSBC Holdings plc (NYSE:HSBC) is 17th on our list of the top 20 countries with the most cash reserves. It is a holding company for the HSBC group and provides a variety of international banking and financial services. Some of the services offered by HSBC Holdings plc (NYSE:HSBC) include retail and commercial banking, insurance solutions, and mortgages. 16 - Prudential Financial, Inc. (NYSE:PRU)Cash On Hand - $317.28 BPrudential Financial, Inc. (NYSE:PRU) is 16th on our list of the top 20 companies with the most cash reserves. It is one of the leading providers of insurance, retirement planning, and investment management services. Some of the other services that Prudential Financial, Inc. (NYSE:PRU) offers are health insurance, administration, and asset management. 15 - Banco Santander S.A. (BME:SAN)Cash On Hand - $336.00 BBanco Santander, S.A., known commercially as Santander, is a multinational Spanish bank with its headquarters in Santander, Cantabria. It offers several financial products and services for individuals. Some of the services that the bank offers include including accounts, cards, loans, mortgages, pension plans, investment funds, and insurance.14 - Citigroup, Inc. (NYSE:C)Cash On Hand - $342.02 BCitigroup, Inc. (NYSE:C) is 14th on our list of the top 20 companies with the most cash reserves. It is an American multinational investment bank and financial services corporation. Citigroup, Inc. (NYSE:C) offers a range of financial services for both, individual and corporate customers. Some of the services that it offers include investment banking, retail brokerage, corporate banking, and cash management products and services.13 - Axa S.A. (ETR: AXA)Cash On Hand - $342.53 BAxa is a France-based holding company that operates as an insurance company. It offers a broad range of products and services, including life and non-life insurance, pension and saving products, and financial and asset management services. 12 - Japan Post Bank Co., Ltd. (TYO:7182)Cash On Hand - $416.85 BJapan Post Bank is one of the leading financial institutions in Japan. The bank offers several financial products and services through Japan's nationwide network of post offices. 11 - Japan Post Holdings Co., Ltd. (TYO:6178)Cash On Hand - $429.56 BJapan Post Holding is a publicly traded Japanese conglomerate. It is headquartered in Kasumigaseki, Chiyoda, Tokyo. The company is involved in the postal and logistics business, financial window business, banking business, and life insurance business. 10 - Mizuho Financial Group, Inc. (TYO:8411)Cash On Hand - $434.40 BMizuho Financial Group is 10th on our list of top 20 companies with the most cash reserves. It is a Japanese financial holding company that offers several financial services through its subsidiaries. Some of the financial services that its subsidiaries offer include general banking, securities brokerage, trust banking, and asset management. Mizuho Financial Group is one of the largest financial institutions in the world. 9 - BNP Paribas (EPA:BNP)Cash On Hand - $507.68 BHeadquartered in Paris, France, BNP Paribas is a multinational universal bank and financial services holding company. It was formed in 2000 as a result of a merger between Banque Nationale de Paris and Paribas. BNP Paribas is one of the largest banking groups in Europe. 8 - Sumitomo Mitsui Financial Group, Inc. (TYO:8316)Cash On Hand - $517.65 B Sumitomo Mitsui Financial Group is 8th on our list of the top 20 companies with the most cash reserves. It is a Japanese banking holding company headquartered in the Ōtemachi district of Chiyoda, Tokyo, Japan. The company was formed in December 2002, through a share transfer from Sumitomo. Click to continue reading and see Top 7 Companies With the Most Cash Reserves.Suggested articles: Top 20 Most Valuable Blockchain Companies in 202420 Fastest Growing E-Commerce Companies in 202420 Fastest Growing Technology Companies in the USDisclosure: none. Top 20 Companies With the Most Cash Reserves is originally published on Insider Monkey.

Insider Monkey

Top 20 Companies With the Most Cash Reserves

https://finance.yahoo.com/news/top-20-companies-most-cash-200256187.html

b6e47ece-1984-31c2-80cc-a8640fbd1873

PRU

Prudential Financial Inc's robust asset management arm, PGIM, with over $1.5 trillion in assets under management, showcases the company's strength in the financial sector.Despite a strong market position, Prudential faces challenges from a rapidly evolving competitive landscape and technological advancements.Opportunities for growth are present in emerging markets and through strategic capital reallocation to higher-growth businesses.Market volatility, regulatory changes, and cybersecurity threats pose significant risks to Prudential's operational and financial stability.Warning! GuruFocus has detected 7 Warning Sign with PRU.On February 21, 2024, Prudential Financial Inc (NYSE:PRU), a leading global financial services firm, filed its annual 10-K report, revealing a comprehensive overview of its operations and financial health. With a strong presence in the United States, Asia, Europe, and Latin America, Prudential Financial offers a wide range of financial products and services, including life insurance, annuities, and investment management through its subsidiaries and affiliates. As of December 31, 2023, the company boasts an impressive $1.450 trillion in assets under management, demonstrating its significant role in the global financial landscape. The filing also highlights the company's strategic focus on becoming less market-sensitive and its commitment to sustainable long-term growth, despite facing a competitive and rapidly changing industry.Decoding Prudential Financial Inc (PRU): A Strategic SWOT InsightStrengthsAsset Management Powerhouse: Prudential Financial Inc's investment management business, PGIM, stands as a testament to the company's financial prowess, managing over $1.5 trillion in assets. This not only provides a stable revenue stream but also positions Prudential as a leading player in the global investment market. PGIM's diversified global platform and strong investment performance are key drivers of Prudential's overall success, offering a competitive edge in attracting and retaining top-tier investment talent.Story continuesRobust International Presence: With approximately 40% of its earnings stemming from international operations, Prudential has successfully established a strong market position in Japan and is actively expanding in high-growth emerging markets. This geographical diversification mitigates risks associated with market concentration and allows Prudential to tap into new customer bases, further bolstering its global footprint and revenue diversification.WeaknessesMarket Sensitivity: Despite efforts to de-risk its business model, Prudential's profitability remains sensitive to market fluctuations, particularly in interest rates and equity markets. This sensitivity can lead to volatility in earnings and poses challenges in maintaining consistent financial performance, especially in an environment of economic uncertainty.Operational Risks: The recent disclosure of a cybersecurity incident, although not materially impacting the company's operations, underscores the operational risks Prudential faces in an increasingly digital world. The necessity to continuously invest in cybersecurity measures and maintain robust risk management practices adds to operational costs and requires constant vigilance to safeguard against potential breaches.OpportunitiesEmerging Market Expansion: Prudential's strategic focus on emerging markets presents significant growth opportunities. By leveraging its needs-based selling approach and focusing on protection products, Prudential can capitalize on demographic shifts and evolving consumer financial needs, particularly in regions like Asia and Latin America where insurance penetration rates are lower.Product and Service Innovation: The shift towards less interest rate-sensitive products and the adoption of technology-enabled channels open avenues for Prudential to innovate its product offerings. This aligns with changing consumer preferences for simpler, more accessible financial solutions and positions Prudential to meet the demands of a younger, tech-savvy customer base.ThreatsCompetitive Landscape: Prudential operates in a highly competitive industry, facing challenges from both traditional financial institutions and emerging fintech and insurtech companies. These competitors, often with advanced technological capabilities and innovative business models, could potentially disrupt the market and erode Prudential's market share.Regulatory and Environmental Risks: The company is subject to evolving regulatory environments and ESG standards, which can impact business practices and investor perceptions. Additionally, climate change poses both direct and indirect risks to Prudential's investment portfolio and operational resilience, necessitating strategic responses to these growing concerns.In conclusion, Prudential Financial Inc (NYSE:PRU) exhibits a strong market position with its expansive asset management capabilities and international reach. However, the company must navigate market sensitivities, operational risks, and a fiercely competitive landscape. Opportunities for growth in emerging markets and through product innovation are promising, yet threats from regulatory changes and environmental challenges loom. Prudential's strategic focus on de-risking its business and capitalizing on high-growth areas suggests a proactive approach to leveraging its strengths and addressing its weaknesses, while remaining vigilant of the opportunities and threats ahead.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 Prudential Financial Inc (PRU): A Strategic SWOT Insight

https://finance.yahoo.com/news/decoding-prudential-financial-inc-pru-050337156.html

edad1389-f93b-362b-ad13-3749779aac55

PRU

NEWARK, N.J., March 06, 2024--(BUSINESS WIRE)--Prudential Financial, Inc. (NYSE: PRU) and Reinsurance Group of America, Incorporated (NYSE: RGA) have been selected in a pension risk transfer involving Verizon Communications Inc. The transaction will settle approximately $5.9 billion of Verizon pension liabilities and will provide retirement security for a population that includes 56,000 Verizon retirees and their beneficiaries who commenced their benefits before Jan. 1, 2023.Prudential and RGA will each irrevocably guarantee and assume 50% of the benefit obligation to the retirees, except in certain jurisdictions where Prudential will irrevocably guarantee and assume 100% of the benefit obligation. Prudential and RGA, organizations with a long history of providing lifetime income to individuals, are well positioned to meet this commitment.The transaction marks the second major pension risk transfer agreement between Prudential and Verizon. In 2012, Prudential completed an approximately $7.5 billion transfer that covered approximately 41,000 of Verizon’s retirees."Prudential is once again proud to help secure the pension benefits of Verizon’s retirees, along with RGA for this transaction, with whom we have a long-standing relationship," said Alexandra Hyten, head of Institutional Retirement Strategies. "That, along with Prudential’s deep experience and leadership in managing and administering retirement benefits, will provide Verizon’s retirees a seamless transition with the superior service they expect and deserve."Under the terms of the agreement, The Prudential Insurance Company of America, a subsidiary of Prudential Financial, will assume complete responsibility for administrative services. This includes providing protected retirement income payments to this transaction’s population of retirees and their beneficiaries on behalf of Prudential and, where applicable, on behalf of RGA, beginning July 1, 2024.Story continues"We are proud to work with Prudential to help secure pension payments for Verizon retirees," said David Lipovics, senior vice president, head of institutional markets, RGA. "This transaction ensures the financial protection of retirees and their families. As the second jumbo transaction in 2024, it also underscores continued momentum in the U.S. pension risk transfer market."With this transaction, Prudential has completed four of the six largest U.S. pension risk transfers on record. Since 1928, Prudential has been an innovator in the pension risk transfer market, creating bespoke solutions for companies and organizations across a wide range of industries to help them de-risk and meet their financial objectives.Prudential revolutionized the modern pension risk transfer market with its pioneering pension buyouts with General Motors and its first transaction with Verizon in 2012. Many similar transactions followed, including HP Inc. in 2021, IBM in 2022 and, most recently, Shell USA in 2024.Included Verizon retirees will receive individualized information packages with further details about the transfer, including frequently asked questions. After receiving the package, individuals can contact the Verizon Benefits Center using a special dedicated line at 855-885-3061.ABOUT PRUDENTIALPrudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately $1.4 trillion in assets under management as of Dec. 31, 2023, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security. Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for nearly 150 years. For more information please visit news.prudential.com.With nearly 100 years of retirement experience, the Retirement Strategies team at Prudential delivers industry-leading solutions for growth and protection to more than 2 million individual and institutional customers. The business expands access to retirement security through its Individual Retirement protected accumulation and income strategies and its Institutional Retirement lines of business spanning U.S. Pension Risk Transfer, International Reinsurance, Stable Value, and Structured Settlements.© 2024 Prudential Financial, Inc. and its related entities. Prudential, Prudential Retirement Strategies, the Prudential logo, the Rock symbol and Rock Solid are service marks of PFI and its related entities, registered in many jurisdictions worldwide.Insurance products are issued by The Prudential Insurance Company of America (PICA), Newark, NJ. PICA is a Prudential Financial company. PICA is solely responsible for its financial condition and contractual obligations.ABOUT RGAReinsurance Group of America, Incorporated (NYSE: RGA) is a global industry leader specializing in life and health reinsurance and financial solutions that help clients effectively manage risk and optimize capital. Founded in 1973, RGA is today one of the world’s largest and most respected reinsurers and remains guided by a powerful purpose: to make financial protection accessible to all. As a global capabilities and solutions leader, RGA empowers partners through bold innovation, relentless execution, and dedicated client focus — all directed toward creating sustainable long-term value. RGA has approximately $3.7 trillion of life reinsurance in force and assets of $97.6 billion as of Dec. 31, 2023. To learn more about RGA and its businesses, please visit rgare.com or follow RGA on LinkedIn and Facebook. Investors can learn more at investor.rgare.com.Insurance products are issued by RGA Reinsurance Company (RGA Re), a subsidiary of Reinsurance Group of America, Incorporated. RGA Re is solely responsible for its financial condition and contractual obligations. RGA Re is not licensed in Connecticut, Maine, New Hampshire, New York, or any U.S. Territory.CONNECT WITH US:Visit prudential.com Follow on LinkedInView source version on businesswire.com: https://www.businesswire.com/news/home/20240306529427/en/ContactsMEDIA CONTACTS PRUDENTIAL Kristen Doyle +1 201-835-4872 [email protected] RGA Lizzie Curry +1 636-893-8443 [email protected]

Business Wire

Prudential and RGA entrusted to fulfill $5.9 billion in pension promises for Verizon

https://finance.yahoo.com/news/prudential-rga-entrusted-fulfill-5-222500648.html

c871ca90-9cbc-3bed-95cc-f71c524f6c06

PRU

Prudential Financial Inc. PRU recently announced that it has been selected for a pension risk transfer (PRT) transaction from Verizon Communications Inc., along with Reinsurance Group of America, Incorporated RGA. Under this agreement, the companies will settle $5.9 billion of pension liabilities and secure 56,000 Verizon retirees and their beneficiaries who started their benefits prior to Jan 1, 2023.This move bodes well for Prudential’s Retirement Strategies business, whose market is expected to grow over time. Prudential has been a leader in the pension risk transfer market, helping companies reduce risks related to pension liabilities, such as interest rate risk, earnings volatility and participant longevity. Prudential completed 11 transactions in 2023 worth approximately $6 billion. It also closed a $5 billion deal with Shell in early 2024. The trend of pension risk transfer is not showing any signs of slowing down, as high interest rates are resulting in favorable funding positions of more than 100%. Prudential expects a healthy pipeline to continue in 2024.RGA and PRU will irrevocably assume and guarantee 50% of the total benefit obligations, whereas in some cases, PRU will assume 100% of obligations. This transaction is the second-largest PRT between Verizon and Prudential. PRU had earlier assumed $7.5 billion worth of obligations of Verizon’s retirees in 2012. Prudential Insurance Company of America, a subsidiary of Prudential Financial, will take on the responsibilities of administrative services for the pension plan. The subsidiary will make payments to retirees and their beneficiaries on behalf of PRU and RGA beginning from Jul 1, 2024.This transaction marks PRU’s completion of four of the six largest U.S. pension risk transfers on record. PRU is expected to create unique deal structures and customized risk management solutions to win clients in the thriving pension risk transfer market. Moves like these are expected to benefit PRU’s results in the future.Story continuesZacks Rank & Price PerformancePrudential currently carries a Zacks Rank #3 (Hold).Shares of Prudential have gained 14.2% in the past year compared with the industry’s growth of 8.3%.Zacks Investment ResearchImage Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks from the finance sector are Cboe Global Markets CBOE and Coinbase Global COIN.Cboe Global delivered a trailing four-quarter average earnings surprise of 4.1%. The Zacks Consensus Estimate for CBOE’s 2024 earnings suggests a year-over-year rise of 6.4%. It presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Coinbase has an excellent track record of beating earnings estimates in each of the last four quarters, the average being 377.6%. The Zacks Consensus Estimate for COIN’s 2024 EPS indicates a year-over-year increase of 173%. It currently sports a Zacks Rank #1.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 reportPrudential Financial, Inc. (PRU) : Free Stock Analysis ReportCboe Global Markets, Inc. (CBOE) : Free Stock Analysis ReportReinsurance Group of America, Incorporated (RGA) : Free Stock Analysis ReportCoinbase Global, Inc. (COIN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Prudential (PRU) to Insure Verizon's Pension Liabilities

https://finance.yahoo.com/news/prudential-pru-insure-verizons-pension-151400267.html

44e30040-4d42-32df-9001-dda369f34f85

PSA

Public Storage (NYSE:PSA) Q4 2023 Earnings Call Transcript February 21, 2024Public Storage isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).Operator: Greetings, and welcome to the Public Storage Fourth Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Ryan Burke, Vice President of Investor Relations and Strategic Partnership, for Public Storage. Thank you. Mr. Burke, you may begin.Ryan Burke: Thanks, Rob. Hi, everyone. Thank you for joining us for our fourth quarter 2023 earnings call. I'm here with Joe Russell and Tom Boyle. Before we begin, we want to remind you that certain matters discussed during this call may constitute forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are subject to certain economic risks and uncertainties. All forward-looking statements speak only as of today, February 21, 2024, and we assume no obligation to update, revise or supplement statements that become untrue because of subsequent events. A reconciliation to GAAP of the non-GAAP financial measures we provide on this call is included in our earnings release. You can find our press release, supplement report, SEC reports and an audio replay of this conference call on our website, publicstorage.com.We do ask that you initially limit yourself to two questions. Of course, if you have more, please feel free to jump back in queue. With that, I'll turn it over to Joe.Joe Russell: Thank you, Ryan, and thank you for joining us today. Tom and I will walk you through our fourth quarter and full year 2023 performance, industry views and 2024 outlook. Then we'll open it up for Q&A. 2023 was a year of significant achievement for public storage amidst a competitive industry environment. The team elevated our customer experience and financial profile through digital and operating model transformation. Enhanced existing properties with over 500 solar installations and the Property of Tomorrow program. Advanced complementary business lines, including tenant reinsurance and third-party management and grew the portfolio through acquisitions, development and redevelopment. We did so while maintaining one of the real estate industry's best balance sheets, which is poised to fund growth moving forward in conjunction with significant retained cash flow.Story continuesJust a few of our collective accomplishments include: exceeding 3,000 owned properties and serving nearly 2 million in-place customers. Achieving an approximately 80% stabilized direct NOI margin through revenue generation and expense efficiency that only Public Storage is capable of. Acquiring and quickly integrating the $2.2 billion Simply Self Storage portfolio with approximately 90,000 customers across nearly 130 properties. This was the largest private acquisition in company history. Increasing the size of our high-growth non-same-store pool to 705 properties and 63 million square feet now comprising nearly 30% of our overall portfolio. Generating record revenues, net operating income and core funds from operations. Accelerating growth in third-party property management, adding 132 properties and reaching 324 properties in total.And receiving several accolades tied to sustainability including NAREIT's Leader in the Light Award, a second consecutive great Place to Work award and achieving top scoring benchmarks among U.S. self-storage REITs. The strength of our team, platform and brand was evident with move-in volumes up an impressive 9% in 2023, despite a backdrop of weaker customer demand during the year. The new customer environment remains challenging, but we have seen a degree of improvement in move-in rent trends recently. And our in-place customer base continues to perform well with average length of stay that are longer than the historic norm. We expect demand from new customers to stabilize during 2024 and the behavior of existing customers including our recent move-ins to remain strong due to clear macro conditions, including the potential for a soft landing, the potential for easing interest rates, resilient consumers, leveling home sales and strong home renter behavior.Aerial view of a thriving self-storage facility, showcasing the company's expertise in acquisition and development.We also anticipate fewer completions of new self-storage facilities nationally reducing the competitive impact of new supply in our local markets. All in, the industry is in better position entering 2024 than it was entering 2023. The full Public Storage team is focused on exercising our competitive advantages, which include advancing our digital and operating model transformation, expanding complementary businesses and creating partnerships across the broader industry, growing the portfolio through acquisitions, development, redevelopment and third-party management, and funding innovation and growth today and into the future with the industry's best balance sheet. All of this adds to the growth of our business over the near, medium and long term.And it comes at a time with the potential for further stabilization in the move-in environment, existing customers exhibiting strong behavior and an outlook for new competitive supply that is clearly in our favor. With good trends in customer demand, less pressure from new supply and our numerous competitive advantages, we are well positioned for 2024 and beyond. Now, I'll turn the call over to Tom.Tom Boyle: Thanks, Joe. On to financial performance, we finished the year reporting core FFO of $4.20 for the quarter and $16.89 for the year, ahead of the upper end of our guidance range representing 1% growth over the fourth quarter of '22, and 8.3% growth for 2023 overall, excluding the impact of PSB. Looking at the same-store portfolio, revenue increased 80 basis points compared to the fourth quarter of '22, at the higher end of our expectation. That was driven by better move-in volume and move-in rate performance. On expenses, same-store cost of operations were up 5.1% for the fourth quarter, largely driven by increases in marketing spend to support that move-in activity. In total, net operating income for the same-store pool of stabilized properties declined 50 basis points in the quarter.Meanwhile, the non-same-store NOI grew 31% and 25% for the fourth quarter and '23, respectively, demonstrating the continued strength of our lease-up and non-stabilized assets. Now turning to the outlook for '24. We introduced 2024 core FFO guidance with a $16.90 midpoint on par with 2023. As Joe mentioned, we entered the year more encouraged than we were last year at this time. We've seen the industry work through the declines in new customer demand from the peaks of 2021. We're anticipating that new customer demand stabilizes in 2024 as the macroeconomic picture becomes clearer. That paired with a consistently strong consumer and lower new competitive new supply. If we look at the same-store outlook for '24 specifically, the midpoint calls for revenue on par with '23.Similar to last year, move-in rates continue to be the biggest variable in the forecast heading through 2024 as well. We're anticipating at the midpoint case that move-in rents lap easier comps through the year, and crossed zero on a year-over-year basis towards the end of the summer. And occupancy results down 80 basis points, which is roughly on top of 2019 occupancies as we sit here today. Our expectations are for 2.75% same-store expense growth driven primarily by property tax and marketing expense. That leads to same-store NOI growth at the midpoint of a decline of 90 basis points. Our non-same-store acquisition and development properties are poised to be a strong contributor again in 2024, growing from $370 million of NOI contribution in '23 to $505 million at the midpoint and will grow from there in future years.In addition, embedded in the outlook is incremental acquisition and development activity, $500 million of acquisitions, and we plan to deliver a record $450 million of development in '24. Finally, our capital and liquidity position remains solid. Our leverage of 3.9x net debt and preferred to EBITDA combined with nearly $400 million of cash on hand at quarter end puts us in a very strong position heading into 2024. With that, I'll turn it back to you, Rob.See also 10 Countries with the Most Military Drones in the World and 11 Best Semiconductor Stocks To Invest In for the AI Boom.To continue reading the Q&A session, please click here.

Insider Monkey

Public Storage (NYSE:PSA) Q4 2023 Earnings Call Transcript

https://finance.yahoo.com/news/public-storage-nyse-psa-q4-141932538.html

a4404b22-d727-33f1-a922-d407ff513eeb

PSA

GLENDALE, Calif., February 23, 2024--(BUSINESS WIRE)--Public Storage (NYSE:PSA) announced today that on February 23, 2024, our Board of Trustees declared a regular quarterly common dividend of $3.00 per common share. The Board also declared dividends with respect to our various series of preferred shares. All the dividends are payable on March 28, 2024, to shareholders of record as of March 13, 2024.Company InformationPublic Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2023, we had: (i) interests in 3,044 self-storage facilities located in 40 states with approximately 218 million net rentable square feet in the United States and (ii) a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels:SHUR), which owned 275 self-storage facilities located in seven Western European nations with approximately 15 million net rentable square feet operated under the Shurgard® brand. Our headquarters are located in Glendale, California.View source version on businesswire.com: https://www.businesswire.com/news/home/20240223030350/en/ContactsRyan Burke(818) 244-8080, Ext. 1141

Business Wire

Public Storage Declares First Quarter 2024 Dividends

https://finance.yahoo.com/news/public-storage-declares-first-quarter-210500396.html

61b35332-b6ce-39b6-b952-bfba3bd68985

PSA

Real estate investment trusts or REITs can offer investors sitting on the fence a viable approach to the market. Simply put, the structure of these businesses requires them to distribute the majority of their taxable income to shareholders. These dividends can provide support during periods of ambiguity, such as right now.Another factor that helps REITs rise above other asset classes is liquidity. Owning physical real estate – while it may be considered the king of investments – represents an illiquid asset. However, REIT shares are publicly traded, allowing investors to buy and sell with ease.Finally, REITs offer diversification. With these entities covering multiple sectors, you can expand the breadth of your holdings easily. On that note, below are some compelling ideas to foolproof your portfolio.InvestorPlace - Stock Market News, Stock Advice & Trading TipsPublic Storage (PSA)a Public Storage sign in front of a facility of storage buildingsSource: Ken Wolter / Shutterstock.comOne of the more popular REITs, Public Storage (NYSE:PSA) is the largest of the real estate trusts in its core business of self-storage services in the U.S. Fundamentally, the company should benefit from increased storage demand. In particular, with housing costs soaring, people can elect to downsize, putting their bulky possessions in storage while attempting to secure cozier (and thus cheaper) living situations.In the market, PSA stock hasn’t exactly resonated with investors. Since the start of the year, shares lost 9% of market value. In the past 52 weeks, they’ve gone nowhere, shedding 4%. On the other hand, analysts believe that the current fiscal year should lead to sales of $4.63 billion, up 2.5% from the prior year. Also, in 2025, revenue may land at $4.85 billion.To be fair, Public Storage isn’t the cheapest name among REITs. However, it’s consistently profitable, thus facilitating a forward dividend yield of 4.23%. Lastly, analysts rate shares a consensus moderate buy with a $305.08 price target, implying over 7% upside potential.Story continuesRealty Income (O)realty income logo highlighted by a magnifying glass on a web browserSource: ShutterstockOne of the most commonly discussed REITs, Realty Income (NYSE:O) invests in free-standing, single-tenant commercial properties in the domestic market. As well, it features similar investments in Spain and the U.K. A major plus that benefits O shareholders is that Realty pays a monthly dividend. This way, investors can more frequently reinvest their earnings, among other benefits.Fundamentally, Realty should rise over the long run from everyday relevance. Unless you envision a future where pharmacies, groceries and consumer goods retailers would become obsolete, you can trust O stock. Further, the company’s forward dividend yield stands at 5.91%. Not only that, it enjoys 31 years of consecutive payout increases. That’s a status Realty won’t give up cheaply.Analysts view shares as a consensus moderate buy with a $61.40 average price target. That implies growth potential of nearly 18%. Looking ahead, they anticipate current year revenue to land at $4.78 billion, a 17.1% lift from last year’s result.Ventas (VTR)Senior Woman Sitting In Chair And Talking With Nurse In Retirement HomeSource: Monkey Business Images / Shutterstock.comOne of the most compelling REITs that offer a combination of capital gains potential and robust passive income, Ventas (NYSE:VTR) should be on your radar, especially if you don’t mind speculating a bit. Specializing in the ownership and management of research, medicine and healthcare facilities in the U.S., Canada and the U.K., Ventas may benefit richly from demographic realities.A large part of its business centers on senior care facilities. Obviously, with the massive population rise from the baby boom entering its golden years, there will be huge demand for senior care-related services. Thus, VTR stock represents a numbers-based investment.Unsurprisingly, analysts anticipate that current year sales will hit $4.78 billion, representing a 6.3% lift from the prior year. Looking out to 2025, they forecast revenue of $5.07 billion. While you’re waiting for the growth story to pan out, you can collect the forward dividend yield of 4.26%.Finally, analysts rate shares a consensus moderate buy with a $54 price target, projecting 28% upside potential.On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.More From InvestorPlaceThe #1 AI Investment Might Be This Company You’ve Never Heard OfMusk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.It doesn’t matter if you have $500 or $5 million. Do this now.The post Foolproof Your Portfolio With These 3 REITs appeared first on InvestorPlace.

InvestorPlace

Foolproof Your Portfolio With These 3 REITs

https://finance.yahoo.com/news/foolproof-portfolio-3-reits-152045353.html

ae019ac8-58f6-30b0-8a52-bab4ab1316c9

PSA

Assessing the Sustainability and Growth of Public Storage's DividendsPublic Storage (NYSE:PSA) recently announced a dividend of $3 per share, payable on 2024-03-28, with the ex-dividend date set for 2024-03-12. 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 Public Storage's dividend performance and assess its sustainability.What Does Public Storage Do?Warning! GuruFocus has detected 5 Warning Sign with PSA.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?Public Storage is the largest owner of self-storage facilities in the U.S. with more than 3,000 self-storage facilities in 40 states and approximately 215 million square feet of rentable space. Through equity interests, it also has exposure to the European self-storage market through Shurgard Self Storage. The company also has a merchandise business, a third-party property management business, and an insurance business that offers products to cover losses for the goods in self-storage facilities.Public Storage's Dividend AnalysisA Glimpse at Public Storage's Dividend HistoryPublic Storage has maintained a consistent dividend payment record since 1985, with dividends currently distributed on a quarterly basis. Notably, Public Storage has increased its dividend each year since 1992, earning it the status of a dividend aristocrata title reserved for companies with at least 25 consecutive years of dividend increases.Below is a chart showing annual Dividends Per Share for tracking historical trends.Breaking Down Public Storage's Dividend Yield and GrowthAs of today, Public Storage boasts a 12-month trailing dividend yield of 4.09% and a matching 12-month forward dividend yield, indicating consistent dividend projections. Over the past three years, Public Storage's annual dividend growth rate was 14.50%, which tapered to 6.00% per year over a five-year span. The decade-long annual dividends per share growth rate stands at 6.10%.Story continuesConsidering Public Storage's dividend yield and five-year growth rate, the 5-year yield on cost is approximately 5.47%.Public Storage's Dividend AnalysisThe Sustainability Question: Payout Ratio and ProfitabilityTo assess the sustainability of the dividend, one should evaluate the company's payout ratio. Public Storage's dividend payout ratio is currently 1.06, which may raise concerns about the sustainability of its dividends. However, the company's strong profitability rank of 9 out of 10, as well as a consistent record of positive net income over the past decade, suggest good profitability prospects that could support dividend payments.Growth Metrics: The Future OutlookPublic Storage's growth rank of 9 out of 10 signals a strong growth trajectory. The company's revenue per share and 15.40% average annual 3-year revenue growth rate outperform 86.2% of global competitors. Additionally, Public Storage's 19.40% average annual 3-year EPS growth rate and 9.40% 5-year EBITDA growth rate outperform 72.68% and 73.07% of global competitors, respectively, highlighting its earnings growth capability which is crucial for sustaining dividends.Next StepsIn conclusion, Public Storage's dividend history is marked by consistent growth and a commitment to returning value to shareholders. Despite a high payout ratio that may seem concerning, the company's robust profitability and strong growth metrics provide reassurance about the sustainability of its dividends. Investors considering Public Storage for its dividend potential should also weigh these factors alongside future industry trends, regulatory changes, and strategic company initiatives. Will Public Storage continue its legacy as a dividend aristocrat in the years to come? For those seeking high-dividend yield investments, GuruFocus Premium offers a comprehensive High Dividend Yield Screener to discover similar 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

Public Storage's Dividend Analysis

https://finance.yahoo.com/news/public-storages-dividend-analysis-110152049.html

f689018d-4b55-353b-83d8-2ec411d35f28

PSX

By Shariq KhanNEW YORK, Feb 22 (Reuters) - Braya Renewable Fuels said Thursday it has begun renewable diesel production at Canada's Come-by-Chance refinery, completing its conversion of the plant which once had an output of 135,000 barrels per day (bpd) of fuels.Dallas-based private equity firm Cresta Fund Management acquired a controlling interest in the refinery in Newfoundland and Labrador in November 2021, renaming it Braya, after it was shuttered for more than a year due to the coronavirus pandemic.Braya said it expects initial production capacity of 18,000 bpd of renewable diesel. It plans to increase the capacity and add production of sustainable aviation fuel in the future, while also exploring green hydrogen production."The on-site production of renewable diesel, sustainable aviation fuel, and green hydrogen offers proven alternatives to fossil fuels and significantly decreases the carbon emissions linked to hard-to-abate sectors such as heavy-duty transport, aviation, and heavy industry," Braya said in a statement.Renewable diesel is made from animal fats, food waste and plant oils. It is chemically equivalent to petroleum-based diesel and can be produced in existing refinery equipment, but the yields are lower than with conventional diesel.Come-by-Chance had originally tried to sell itself as a refinery, but talks with Canada's Irving Oil fell apart in October 2020, forcing its owners to idle operations.A number of North American refineries have undertaken conversions to renewable diesel since the pandemic slashed fuel demand and environmental pressure mounted to decarbonize.More could be converted as investor interest in U.S. refineries has waned, leaving ageing plants with few options.The Rodeo refinery in California, owned by Phillips 66 is expected to complete its conversion and start producing renewable fuels by the end of next month. (Reporting by Shariq Khan in New York; Editing by Alexander Smith)

Reuters

Braya starts making renewable diesel at converted Come-by-Chance plant

https://finance.yahoo.com/news/braya-starts-making-renewable-diesel-181033549.html

5102dd83-8dce-3db9-8ee7-76321d62241c

PSX

Most readers would already be aware that Phillips 66's (NYSE:PSX) stock increased significantly by 25% over the past three months. Since the market usually pay for a company’s long-term fundamentals, we decided to study the company’s key performance indicators to see if they could be influencing the market. In this article, we decided to focus on Phillips 66's ROE.Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Put another way, it reveals the company's success at turning shareholder investments into profits. View our latest analysis for Phillips 66 How To Calculate Return On Equity?Return on equity can be calculated by using the formula:Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' EquitySo, based on the above formula, the ROE for Phillips 66 is:23% = US$7.2b ÷ US$32b (Based on the trailing twelve months to December 2023).The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.23 in profit.Why Is ROE Important For 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. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.A Side By Side comparison of Phillips 66's Earnings Growth And 23% ROEFirstly, we acknowledge that Phillips 66 has a significantly high ROE. Further, even comparing with the industry average if 21%, the company's ROE is quite respectable. As a result, Phillips 66's remarkable 30% net income growth seen over the past 5 years is likely aided by its high ROE.Story continuesWe then performed a comparison between Phillips 66's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 36% in the same 5-year period.past-earnings-growthEarnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. What is PSX worth today? The intrinsic value infographic in our free research report helps visualize whether PSX is currently mispriced by the market.Is Phillips 66 Making Efficient Use Of Its Profits?Phillips 66's three-year median payout ratio to shareholders is 17%, which is quite low. This implies that the company is retaining 83% of its profits. This suggests that the management is reinvesting most of the profits to grow the business as evidenced by the growth seen by the company.Besides, Phillips 66 has been paying dividends for at least ten years or more. 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 36% over the next three years. Consequently, the higher expected payout ratio explains the decline in the company's expected ROE (to 18%) over the same period.ConclusionOn the whole, we feel that Phillips 66's performance has been quite good. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. With that said, on studying the latest analyst forecasts, we found that while the company has seen growth in its past earnings, analysts expect its future earnings to shrink. 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 Phillips 66's (NYSE:PSX) Stock?

https://finance.yahoo.com/news/robust-financials-driving-recent-rally-140012375.html

2d42aaae-3223-324f-88de-aaeedbde4113

PSX

Key InsightsPhillips 66's estimated fair value is US$199 based on 2 Stage Free Cash Flow to EquityPhillips 66 is estimated to be 25% undervalued based on current share price of US$149 Analyst price target for PSX is US$151 which is 24% below our fair value estimateHow far off is Phillips 66 (NYSE:PSX) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Believe it or not, it's not too difficult to follow, as you'll see from our example!We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. View our latest analysis for Phillips 66 Is Phillips 66 Fairly Valued?We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value:Story continues10-year free cash flow (FCF) estimate2024202520262027202820292030203120322033 Levered FCF ($, Millions) US$5.89bUS$5.62bUS$5.51bUS$5.36bUS$5.62bUS$5.65bUS$5.71bUS$5.79bUS$5.89bUS$6.00bGrowth Rate Estimate SourceAnalyst x6Analyst x5Analyst x2Analyst x1Analyst x1Est @ 0.49%Est @ 1.03%Est @ 1.41%Est @ 1.67%Est @ 1.86% Present Value ($, Millions) Discounted @ 8.2% US$5.4kUS$4.8kUS$4.4kUS$3.9kUS$3.8kUS$3.5kUS$3.3kUS$3.1kUS$2.9kUS$2.7k("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$38bWe 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 8.2%.Terminal Value (TV)= FCF2033 × (1 + g) ÷ (r – g) = US$6.0b× (1 + 2.3%) ÷ (8.2%– 2.3%) = US$104bPresent Value of Terminal Value (PVTV)= TV / (1 + r)10= US$104b÷ ( 1 + 8.2%)10= US$47bThe total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$85b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of US$149, the company appears a touch undervalued at a 25% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.dcfImportant AssumptionsNow the most important inputs to a discounted cash flow are the discount rate, and of course, the actual 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 Phillips 66 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 8.2%, which is based on a levered beta of 1.283. 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 Phillips 66StrengthDebt 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.OpportunityGood value based on P/E ratio and estimated fair value.ThreatAnnual earnings are forecast to decline for the next 3 years.Next Steps:Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. 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. Can we work out why the company is trading at a discount to intrinsic value? For Phillips 66, there are three additional factors you should explore:Risks: For example, we've discovered 2 warning signs for Phillips 66 (1 is concerning!) that you should be aware of before investing here.Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for PSX's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks 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.

Is There An Opportunity With Phillips 66's (NYSE:PSX) 25% Undervaluation?

https://finance.yahoo.com/news/opportunity-phillips-66s-nyse-psx-110019420.html

773a39ee-1953-3a55-ae60-21ea64084557

PSX

Paul Singer’s Elliott Investment is plowing money into a $1.6 billion continuation fund that lets Quantum Capital retain HG Energy as an investment.Continue reading

The Wall Street Journal

Elliott Bets $500 Million on Gas Producer Backed by Quantum

https://finance.yahoo.com/m/3f7d0909-c10f-36f5-a2ea-b38fd832154a/elliott-bets-500-million-on.html

3f7d0909-c10f-36f5-a2ea-b38fd832154a

PTC

Catherine Kniker, the Chief Strategy Officer of PTC Inc, executed a sale of 1,330 shares of the company on February 12, 2024, according to a recent SEC filing. The transaction resulted in the disposition of shares at a price of $179.59 each, which equates to a total value of $238,854.70.PTC Inc is a global software company that provides technology solutions that transform how products are created and serviced. The company's portfolio includes computer-aided design (CAD) modeling, product lifecycle management (PLM), and Internet of Things (IoT) technology platforms.Over the past year, the insider has sold a total of 6,420 shares of PTC Inc and has not made any share purchases. This latest transaction continues a trend observed over the past year, where there have been no insider buys but a total of 77 insider sells for the company.PTC Inc Chief Strategy Officer Catherine Kniker Sells Company SharesThe market capitalization of PTC Inc stands at $21.257 billion as of the date of the insider's recent sale. The stock's price-earnings ratio is 90.26, which is above both the industry median of 26.71 and the company's historical median price-earnings ratio.According to the GuruFocus Value chart, PTC Inc has a price-to-GF-Value ratio of 1.21, indicating that the stock is considered Modestly Overvalued in relation to its GF Value of $148.02.PTC Inc Chief Strategy Officer Catherine Kniker Sells Company SharesThe GF Value is determined by considering historical trading multiples, an adjustment factor based on the company's past performance, and future business performance estimates provided by Morningstar analysts.Warning! GuruFocus has detected 5 Warning Sign with PTC.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

PTC Inc Chief Strategy Officer Catherine Kniker Sells Company Shares

https://finance.yahoo.com/news/ptc-inc-chief-strategy-officer-064449144.html

dbd1bdf1-5feb-30be-96ef-2271e182816e

PTC

There's little doubt that the manufacturing sector is slowing, but what does that mean for industrial software company PTC (NASDAQ: PTC)? The company's first-quarter 2024 results showed that it's continuing to grow its crucial metric by a mid-teens rate, and its guidance for the full year suggests it will keep growing and generating value for investors. Still, will PTC hit its guidance? Here's what you need to know before buying the stock.PTC, ARR, and FCFThere's no way around it. This is an investment article about PTC, so there will be three-letter acronyms! Please stick with me -- it will get easier as I go along. ARR refers to PTC's key metric: Annual run rate. This represents "the annualized value of our portfolio of active subscription software, cloud, SaaS, and support contracts as of the end of the reporting period." As with all software companies focused on a subscription model, this is the critical number to follow as it tends to convert to free cash flow (FCF).After delivering 13% organic constant currency ARR growth of 13% in 2023, management expects ARR growth of 11% to 14% in 2024 and conservatively models 12% ARR growth to hit its guidance for FCF of $725 million.That figure makes PTC look fully valued. For example, an FCF of $725 million in 2024 would put it on nearly 30 times FCF. That may seem high, but note that management sees a pathway to $1 billion in FCF in 2026, putting it on 21.6 times 2026 FCF. That's more acceptable, provided PTC hits its numbers.After all, this is a company that's growing its crucial metric at a mid-teens rate, and its solutions are enabling the digital revolution in manufacturing.Image source: Getty Images.Question marks on PTC's guidanceStill, investors should always question the assumptions around guidance, and there are reasons to doubt PTC will hit its ARR guidance for 2024. The following table shows PTC's sequential growth by half years. So, for example, the figure for the first half of 2022 represents the net increase in ARR from the start of the financial full-year 2022 and the first six months of 2022. Adding the two halves gives you the full-year net increase, so you get $215 million ($94 million plus $121 million) for 2022 and a net increase of $214 million for 2023. Management believes its net ARR will grow by $241 million in 2024.Story continuesBut here's the thing: PTC will have challenges meeting its full-year guidance. The net ARR increase in the first quarter was $38 million, and management forecasts $41 million in the second quarter, which leaves it needing $162 million to meet the full-year guidance of $241 million. Put another way, PTC will need to generate 67% of its net ARR increase in the second half, compared to 60% and 56% in the previous two years.PTCFirst Half 2022Second Half 2022First Half 2023Second Half 2023First Half 2024 EstimatedSecond Half 2024 EstimatedSequential net ARR growth$94 million$121 million$85 million$129 million$79 million$162 millionShare of full-year increase44%56%40%60%33%67%Data source: PTC presentations, author's analysis.The subject matter came up on the recent earnings call. The new CEO, Neil Barua, expressed confidence in hitting the target of a net increase of $241 million in 2024 due to PTC's deal pipeline, which "is interesting to us in a manner that gives us confidence around the guidance."He also noted that "this doesn't assume that anything changes in the selling environment from now to the end of the year." In other words, the increase in the second half doesn't include an assumption that its end markets will improve.That's fair enough, but PTC still needs to meet its implied guidance for the second half.Image source: Getty Images.A stock to buy?PTC is a great company, and its solutions are the future of the manufacturing industry, but the stock's valuation doesn't leave much room for error. This hasn't been a great earnings season for industrial companies, and PTC is relying on a strong second half to meet its guidance. The risk/reward calculation suggests taking some caution over the stock as things stand now.Should you invest $1,000 in PTC right now?Before you buy stock in PTC, 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 PTC 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 12, 2024Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends PTC. The Motley Fool has a disclosure policy.PTC Is Great. Here's Why You Shouldn't Buy It was originally published by The Motley Fool

Motley Fool

PTC Is Great. Here's Why You Shouldn't Buy It

https://finance.yahoo.com/news/ptc-great-heres-why-shouldnt-130200891.html

c40e7c73-be13-3bf8-97bb-c5b6276cd243

PTC

In this article, we discuss 12 tech stocks to sell according to Cathie Wood. If you want to skip our discussion on Cathie Wood’s latest investment plays, head over to 5 Tech Stocks To Sell Right Now According To Cathie Wood. ARK Invest CEO Cathie Wood is adapting her investment strategy to navigate an anticipated deflationary period in 2024, focusing on innovation and technological advancements. She discussed this approach on CNBC's "The Exchange", emphasizing its relevance in the 2024 market landscape. Wood anticipates an aggressive rate cut by the Federal Reserve, creating an economic environment where companies adept at deflation and dedicated to innovation can experience significant expansion. Wood's flagship fund, the ARK Innovation ETF, witnessed a noteworthy 70% year-to-date increase in 2023. As the market stabilizes, ARK is diversifying its portfolio, considering the potential reopening of the IPO market and reintroducing previously sold names with improving outlooks. Wood's strategy shift includes an increased focus on companies leading in AI and technology, exemplified by her renewed interest in Meta Platforms, Inc. (NASDAQ:META). She highlighted Meta's alignment with CEO Mark Zuckerberg's use of open-source AI. Wood also emphasized the transformative potential of gene editing technologies, particularly mentioning CRISPR Therapeutics, following the FDA approval of the first gene therapy using CRISPR CAS 9 for sickle cell disease. Despite early-stage pricing inefficiencies and cash-burn issues, Wood sees the gene editing sector as an attractive investment opportunity. In another noteworthy development, Coinbase Global, Inc. (NASDAQ:COIN) surpassed Tesla, Inc. (NASDAQ:TSLA) and became ARK's top holding in Q4 2023. According to Cathie Wood, the hype around electric vehicles is just beginning. In the firm's recent "Big Ideas" report, Wood predicts that sales of new battery-powered cars could increase by a third each year, reaching 74 million in 2030, with autonomous driving capabilities. Despite approximately 10 million EVs delivered in 2023, the forecast suggests substantial growth. At an average selling price of $20,000 per EV, this could result in over $1.4 trillion in annual revenue potential for EV manufacturers. Wood believes these companies may capture a tenth of that as profit before interest and tax. The downside is a potential decline in demand for internal combustion engine cars, as global new vehicle sales are projected to be around 100 million in 2030. This shift may lead to a "death spiral for incumbent auto manufacturers," warned ARK Invest. Wood gained prominence for her successful bets on Tesla, forecasting a target share price of $2,000 in 2027, primarily driven by Elon Musk solving autonomous driving challenges. Looking ahead to 2040, ARK Invest envisions a "Cambrian explosion" in battery technology applications, leading to the transformation of urban landscapes with the advent of flying taxis.Story continuesMoreover, in January 2024, Cathie Wood raised her bullish estimate for Bitcoin's price to $1,500,000 by 2030, a 50% increase from her previous prediction of $1 million. Wood attributed the increased likelihood of this optimistic scenario to the recent SEC approval of spot Bitcoin ETFs in the United States. According to her, this approval serves as a green light for the cryptocurrency. In a bear case, Wood anticipates a price of $258,500, while the base case is set at $682,800. ARK Invest supported its projections by pointing to factors such as a higher hashrate, long-term holder supply, and addresses with a non-zero balance. While Cathie Wood is bullish on innovation and disruptive technologies, some of the stocks to sell according to the ARK CEO include NVIDIA Corporation (NASDAQ:NVDA), Sea Limited (NYSE:SE), and Stratasys Ltd. (NASDAQ:SSYS). Our Methodology We scanned Cathie Wood’s ARK portfolio for Q4 2023 and selected the technology stocks where she discarded her stake by at least 20% or more in the last quarter of 2023. We have arranged the list in the ascending order of the percentage of stake discarded. We have also 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. 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 Tech Stocks To Sell Right Now According To Cathie WoodCathie Wood of ARK Investment ManagementTech Stocks To Sell Right Now According To Cathie Wood12. Check Point Software Technologies Ltd. (NASDAQ:CHKP)Number of Hedge Fund Holders: 38Percentage of Stake Discarded: 20%Check Point Software Technologies Ltd. (NASDAQ:CHKP) is a global IT security company that develops, markets, and supports a range of products and services. Their offerings include a multilevel security architecture, cloud, network, mobile devices, endpoints information, and IoT solutions. In the fourth quarter of 2023, Cathie Wood trimmed 20% of her stake in Check Point Software Technologies Ltd. (NASDAQ:CHKP), holding 13,702 shares worth $2 million. On February 6, Check Point Software Technologies Ltd. (NASDAQ:CHKP) reported a Q4 non-GAAP EPS of $2.57 and a revenue of $664 million, outperforming Wall Street estimates by $0.09 and $1.5 million, respectively. According to Insider Monkey’s fourth quarter database, 38 hedge funds were long Check Point Software Technologies Ltd. (NASDAQ:CHKP), compared to 31 funds in the earlier quarter. John W. Rogers’ Ariel Investments is the leading stakeholder of the company, with 1.5 million shares worth $229.2 million. Like NVIDIA Corporation (NASDAQ:NVDA), Sea Limited (NYSE:SE), and Stratasys Ltd. (NASDAQ:SSYS), Check Point Software Technologies Ltd. (NASDAQ:CHKP) is one of the stocks to sell according to ARK Invest. Here is what Diamond Hill International Fund Concentrated Fund has to say about Check Point Software Technologies Ltd. (NASDAQ:CHKP) in its Q1 2022 investor letter:“Check Point reported a solid Q4 as the company continues its lengthy transition towards a subscription-based sales model. We expect the firm to consistently repurchase shares with the substantial free cash flow it generates each year.”11. L3Harris Technologies, Inc. (NYSE:LHX)Number of Hedge Fund Holders: 37Percentage of Stake Discarded: 20%L3Harris Technologies, Inc. (NYSE:LHX) ranks 11th on the list of stocks to sell according to Cathie Wood. It is a global provider of mission-critical solutions for government and commercial clients. The company operates in several segments – Integrated Mission Systems, offering intelligence, surveillance, and reconnaissance systems; Space and Airborne Systems, providing space payloads, sensors, and mission solutions; Communication Systems, delivering broadband and tactical communication solutions; and Aerojet Rocketdyne, offering propulsion technologies for defense and space missions. In Q4 2023, Cathie Wood discarded 20% of her stake in L3Harris Technologies, Inc. (NYSE:LHX). She held 63,700 shares worth $13.4 million. On February 23, L3Harris Technologies, Inc. (NYSE:LHX) declared a $1.16 per share quarterly dividend, a 1.8% increase from its prior dividend of $1.14. The dividend is payable on March 22, to shareholders on record as of March 8. According to Insider Monkey’s fourth quarter database, 37 hedge funds were long L3Harris Technologies, Inc. (NYSE:LHX), down from 44 funds in the last quarter. Diamond Hill Mid Cap Strategy made the following comment about L3Harris Technologies, Inc. (NYSE:LHX) in its Q3 2023 investor letter:“L3Harris Technologies, Inc. (NYSE:LHX) is a defense contractor focused primarily on communications, surveillance and electronic warfare. We anticipate the US’s defense budget will be better than expected over the next few years as the Defense Department focuses on preparing for peer-level threats — an area in which LHX’s capabilities fit nicely. We believe there is room for improvement in recent execution — particularly at recently acquired Aerojet Rocketdyne — and we think LHX’s new management team is well-qualified to improve results. We accordingly capitalized on a recent share-price decline to initiate a position at what we consider a compelling valuation.”10. Xerox Holdings Corporation (NASDAQ:XRX)Number of Hedge Fund Holders: 25Percentage of Stake Discarded: 21%Xerox Holdings Corporation (NASDAQ:XRX) is a global workplace technology company that integrates hardware, services, and software for enterprises worldwide. In Q4 2023, Cathie Wood’s ARK Invest sold 21% of its stake in Xerox Holdings Corporation (NASDAQ:XRX). At the end of December, Wood owned 9,874 shares of the company worth $180,990. On February 22, Xerox Holdings Corporation (NASDAQ:XRX) declared a quarterly dividend of $0.25 per share, in line with previous. The dividend is distributable on April 30, to shareholders on record as of March 29. According to Insider Monkey’s fourth quarter database, Xerox Holdings Corporation (NASDAQ:XRX) was part of 25 hedge fund portfolios, compared to 20 in the last quarter. Mark Coe’s Intrinsic Edge Capital is a prominent stakeholder of the company. 9. CyberArk Software Ltd. (NASDAQ:CYBR)Number of Hedge Fund Holders: 50Percentage of Stake Discarded: 22%CyberArk Software Ltd. (NASDAQ:CYBR) is one of the stocks to sell according to Cathie Wood. CyberArk Software Ltd. (NASDAQ:CYBR) develops and sells software-based security solutions and services. The company's solutions include Privileged Access Manager, Vendor Privileged Access Manager, Endpoint Privilege Manager, Cloud Entitlements Manager, as well as Secrets Manager. In the December quarter, Cathie Wood sold 22% of her stake in CyberArk Software Ltd. (NASDAQ:CYBR). She held 10,984 shares of the company worth $2.40 million. On February 8, CyberArk Software Ltd. (NASDAQ:CYBR) reported a Q4 non-GAAP EPS of $0.81 and a revenue of $223.1 million, topping market expectations by $0.34 and $13.36 million, respectively. According to Insider Monkey’s fourth quarter database, 50 hedge funds were bullish on CyberArk Software Ltd. (NASDAQ:CYBR), compared to 32 funds in the prior quarter. RGM Capital is the largest stakeholder of the company, with 1 million shares worth over $221 million. Wasatch Small Cap Core Growth Strategy made the following comment about CyberArk Software Ltd. (NASDAQ:CYBR) in its Q4 2022 investor letter:“IT accounted for several of the greatest detractors from strategy performance during the fourth quarter. Among these were Paylocity Holding Corp. (PCTY), CyberArk Software Ltd. (NASDAQ:CYBR) and Q2 Holdings, Inc. (QTWO).A cybersecurity company that operates globally, CyberArk specializes in products and services to protect and safeguard customers’ IT networks and devices. A recent flurry of buyouts by private equity firms has fostered an active rumor mill that’s at times produced rapid gyrations in the prices of cybersecurity stocks. We suspect CyberArk may have been the target of some of this speculation during the third quarter. Moreover, the growing slate of security products offered by cloud-computing giants Microsoft, Amazon Web Services and Google may have bruised investor sentiment toward the group.”8. Taboola.com Ltd. (NASDAQ:TBLA)Number of Hedge Fund Holders: 26Percentage of Stake Discarded: 23%Taboola.com Ltd. (NASDAQ:TBLA) operates an artificial intelligence-based algorithmic engine platform globally. The company's Taboola platform collaborates with websites, devices, and mobile apps to provide recommendations for editorial content and advertisements on the open web. Taboola.com Ltd. (NASDAQ:TBLA) is one of the stocks to sell as per Cathie Wood. The ARK portfolio, as of Q4 2023, held 523,612 shares worth $2.26 million after Wood slashed 23% of her stake. On February 28, Taboola.com Ltd. (NASDAQ:TBLA) reported a Q4 GAAP EPS of $0.01, beating market consensus by $0.05. The revenue of $419.8 million, however, fell short of Wall Street estimates by $17.7 million. According to Insider Monkey’s fourth quarter database, 26 hedge funds held stakes in Taboola.com Ltd. (NASDAQ:TBLA), compared to 21 funds in the last quarter. Josh Goldberg’s G2 Investment Partners Management is the largest stakeholder of the company, with 2.6 million shares worth $11.3 million. 7. PTC Inc. (NASDAQ:PTC)Number of Hedge Fund Holders: 47Percentage of Stake Discarded: 24%PTC Inc. (NASDAQ:PTC) is a software company providing solutions for product lifecycle management, industrial Internet of Things, field service management, and more. The company’s diverse offerings include applications for CAD technology, augmented reality, and dynamic publishing. PTC Inc. (NASDAQ:PTC) is one of the stocks to sell according to Cathie Wood, who discarded 24% of her stake in Q4 2023. ARK Invest held 27,220 shares of PTC worth $4.76 million. On January 31, PTC Inc. (NASDAQ:PTC) reported its financial results for the quarter ending December 31, 2023. The company posted a non-GAAP EPS of $1.11 and a revenue of $550.21 million, beating Wall Street estimates by $0.14 and $12.22 million, respectively. According to Insider Monkey’s fourth quarter database, 47 hedge funds were long PTC Inc. (NASDAQ:PTC), compared to 38 funds in the prior quarter. Stephen Mandel’s Lone Pine Capital is the biggest stakeholder of the company. 6. Autodesk, Inc. (NASDAQ:ADSK)Number of Hedge Fund Holders: 46Percentage of Stake Discarded: 26%Autodesk, Inc. (NASDAQ:ADSK) is a global provider of 3D design, engineering, and entertainment technology solutions. The company offers a range of software products, including AutoCAD for design and visualization, Fusion 360 for 3D CAD, CAM, and engineering. Autodesk serves architecture, engineering, construction, product design, manufacturing, and media and entertainment sectors. Cathie Wood slashed 26% of her stake in Autodesk, Inc. (NASDAQ:ADSK) in Q4 2023. She owned 18,316 shares worth $4.46 million. On February 20, Baird noted that Autodesk, Inc. (NASDAQ:ADSK) has an attractive business model, indicating a recommendation for investors to continue buying shares into fiscal years 2025 and 2026. The feedback from resellers in the fourth quarter is viewed as positive and consistent with the previous quarter. According to Insider Monkey’s fourth quarter database, 46 hedge funds were bullish on Autodesk, Inc. (NASDAQ:ADSK), compared to 51 funds in the last quarter. William Von Mueffling’s Cantillon Capital Management is the largest stakeholder of the company, with 1.70 million shares worth $414.5 million. Like NVIDIA Corporation (NASDAQ:NVDA), Sea Limited (NYSE:SE), and Stratasys Ltd. (NASDAQ:SSYS), Autodesk, Inc. (NASDAQ:ADSK) is one of the stocks to sell according to Cathie Wood. RiverPark Large Growth Fund made the following comment about Autodesk, Inc. (NASDAQ:ADSK) in its Q2 2023 investor letter:“Autodesk, Inc. (NASDAQ:ADSK): Autodesk was our next top detractor despite quarterly results reported in late May that were in line with expectations. For 1Q, revenue grew 12%, Remaining Performance Obligation (RPO) grew 15%, and the company generated $714 million of FCF, which increased 69% year over year. Profitability for the company was strong, with a 32% non-GAAP operating margin for the quarter, and management reiterated its outlook for the year.Autodesk has a near monopoly on software for designing, building, and managing buildings, as well as software for infrastructure and manufacturing plants, prototyping software for manufacturers of products (including autos, machinery, and consumer products) and document sharing. As a result, we believe ADSK’s business is very sticky. The company expects to grow revenue mid-teens annually over the next several years, and, as we have seen in similar SaaS businesses, as revenue scales, operating margins are expected to expand significantly from their current 32% to more than 40%, more in-line with peers. We believe that ADSK shares can grow along with its mid-teens free cash flow growth over the next several years.”   Click to continue reading and see 5 Tech Stocks To Sell Right Now According To Cathie Wood.  Suggested articles:14 Social Security Spousal Benefits and Loopholes You Need to Know25 Countries with Most Gold Reserves in 202413 Biggest 401(k) Mistakes to Avoid Disclosure: None. 12 Tech Stocks To Sell Right Now According To Cathie Wood is originally published on Insider Monkey.

Insider Monkey

12 Tech Stocks To Sell Right Now According To Cathie Wood

https://finance.yahoo.com/news/12-tech-stocks-sell-now-134815433.html

fb1075f4-73fa-3449-aa68-c24bd0316f76

PTC

This isn't an argument about whether PTC (NASDAQ: PTC) or Trimble (NASDAQ: TRMB) is the better company; both are great and have excellent long-term prospects. Instead, I think one stock has a notably better risk/reward profile and is worth buying now, while the other is fully valued and has some near-term risk around its full-year guidance.PTC has an exciting futureIndustrial software companies' solutions are the future of manufacturing. The digital revolution sweeping the manufacturing and industrial sectors is still in its early stages, which means that PTC will have many years of growth ahead.Image source: Getty Images.If there are two phrases every manufacturer will look at in the coming years, they are "digital thread" and "closed-loop cycle."The former refers to the integration of digital data through the entire lifecycle of a physical product. Whether it's in the design phase with computer-aided design (CAD) software, the gathering of data about the product throughout the manufacturing process using product lifecycle management (PLM), or even the enhancement of operations through connecting the product to the digital world with the internet of things (IoT) or augmented reality (AR), PTC has a solution.Meanwhile, the "closed-loop cycle" refers to continuous digital iteration and improvement throughout a product's lifecycle. So, for example, if data analytics suggest that a product can be manufactured better with a redesign during the manufacturing process, a design engineer can do that and even digitally test out the changes to the manufacturing process made by the redesign.PTC's risk/reward calculationThe company has an exciting future, and its solutions continue to gain traction. PTC has grown its annual run rate (ARR), defined as the "annualized value of our portfolio of active subscription software, cloud, SaaS, and support contracts" by a double-digit annual rate since 2017, and management is aiming for a yearly mid-teens growth rate over the medium term.Story continuesSo why on earth shouldn't you favor buying the stock?My concern is that the company has much to do to meet its full-year ARR guidance. Management's guidance calls for ARR to grow from $1.98 billion at the end of 2023 to $2.22 billion at the end of 2024, an increase of $241 million.ARR grew by $38 million in the first quarter, and management is guiding toward $41 million in the second quarter, making $79 million for the first half. Since the full-year guidance is for an increase of $241 million, it implies an increase of $162 million in the second half.Here's how that looks graphically.Chart by author. Data source: PTC presentations.Given that first-half growth is estimated to be less than that achieved in 2023 and the industrial economy is slowing in 2024, the second-half growth estimate looks like an ask.PTC may well hit this target, but I think there's reason for caution. Investors should look closely at what ARR PTC reports in its upcoming second quarter.Trimble's underlying growth is impressiveA quick look at the two companies' price charts shows that Trimble has had a much more volatile time of it over the last year. That's understandable, given that Trimble's full-year earnings came in at the light end of its original guidance. For example, the initial guidance for 2023 called for organic annualized recurring revenue growth in the "mid-teens," when it came in at 13%. Organic revenue growth guidance was 2% to 5% when it came in at 1%, and diluted earnings per share was $2.66, at the bottom of the guidance of $2.66 to $2.86.TRMB ChartThe positioning and workflow technology company is growing its software and recurring revenue as it's becoming an increasing part of its customers' daily workflow, and it continues to grow its annualized recurring revenue at a mid-teens rate. However, two of its end markets, agriculture (its agriculture business is now part of a joint venture with AGCO) and transportation, slowed markedly in 2023 due to lower crop prices and a cyclical economic slowdown.That said, the guidance for organic annualized recurring revenue growth in 2024 is 11% to 13%. Trimble is set to significantly improve cash-flow generation in the coming years as its recurring revenue drops into cash flow. In addition, the guidance looks reasonable considering the 13% organic growth in annualized recurring revenue in the fourth quarter.Stocks to buy?PTC and Trimble are set to grow earnings and cash flow significantly in 2024, but I think there's more risk around PTC's guidance than now. Cautious investors will want to wait and see what management is guiding them to after the next set of earnings. Meanwhile, Trimble's earnings could surprise on the upside in 2024 if it has excellent traction in building and construction, and its transportation end market might bottom out.Should you invest $1,000 in PTC right now?Before you buy stock in PTC, 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 PTC 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, 2024Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends PTC and Trimble. The Motley Fool has a disclosure policy.1 Industrial Software Stock to Buy Hand Over Fist and 1 to Avoid was originally published by The Motley Fool

Motley Fool

1 Industrial Software Stock to Buy Hand Over Fist and 1 to Avoid

https://finance.yahoo.com/news/1-industrial-software-stock-buy-090100586.html

a5e234f1-2fc3-3e44-a30f-81702af465f1

PWR

Quanta Services, Inc. (NYSE:PWR) Q4 2023 Earnings Call Transcript February 22, 2024Quanta Services, Inc. beats earnings expectations. Reported EPS is $2.04, expectations were $1.97. Quanta Services, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).Operator: Greetings and welcome to Quanta Services' Fourth Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Kip Rupp, Vice President, Investor Relations. Thank you. You may begin.Kip Rupp: Thank you and welcome everyone to the Quanta Services fourth quarter and full year 2023 earnings conference call. This morning, we issued a press release announcing our fourth quarter and full year 2023 results, which can be found in the Investor Relations' section of our website at quantaservices.com. As highlighted in our earnings release this morning, as well as in the earnings press release announcing our earnings call schedule a couple of weeks ago, we've updated our earnings call format and supplemental materials. As a result, shortly after the release of our financial results this morning, we posted our fourth quarter and full year 2023 operational and financial commentary and our 2024 outlook expectation summary on Quanta's Investor Relations website.While management will make brief introductory remarks during this morning's call, the operational and financial commentary is intended to largely replace management's prepared remarks, allowing additional time for questions from the institutional investment community. Additionally, we no longer have a slide presentation to accompany this call, as the information that has historically been included in the presentation can now be found in our operational and financial commentary. Please remember that information reported on this call speaks only as of today, February 22nd, 2024, and therefore, you are advised that any time-sensitive information may no longer be accurate as of any replay of this call. This call will include forward-looking statements intended to qualify under the Safe Harbor from liability, established by the Private Securities Litigation Reform Act of 1995, including all statements reflecting expectations, intentions, assumptions or beliefs about future events or performance that do not solely relate to historical or current facts.Story continuesYou should not place undue reliance on these statements as they involve certain risks, uncertainties, and assumptions that are difficult to predict or beyond Quanta's control, and actual results may differ materially from those expressed or implied. We will also present certain historical and forecasted non-GAAP financial measures. Reconciliations of these financial measures to their most directly comparable GAAP financial measures are included in our earnings release and operational and financial commentary. Please refer to these documents for additional information regarding our forward-looking statements and non-GAAP financial measures. Lastly, if you would like to be notified when Quanta publishes news releases and other information, please sign up for e-mail alerts through the Investor Relations section of quantaservices.com.We also encourage investors and others interested in our company to follow Quanta IR and Quanta Services on the social media channels, listed on our website. With that, I would like to now turn the call over to Mr. Duke Austin, Quanta's President and CEO. Duke?A team of electricians climbing an industrial wiring structure, the complexity of the project revealed in the background.Duke Austin: Thanks Kip. Good morning everyone and welcome to the Quanta Services fourth quarter and full year 2023 earnings conference call. This morning, we reported fourth quarter and full year 2023 results, which included double-digit growth in revenues and earnings and included a number of record financial metrics, which we believe reflects robust demand for our services and solid execution. Total backlog at year-end was $30.1 billion, which we believe reflects the value of our collaborative client relationships, and evidences the momentum we see for 2024. Of note, Quanta has delivered record revenue six of the last seven years. Six consecutive years of record adjusted EBITDA and seven consecutive years of record adjusted diluted earnings per share.These results were built off an industry-leading operational and financial platform, and made possible by our more than 50,000 dedicated Quanta employees, whom we believe are the very best in our industry. As outlined in our operational and financial commentary, 2023 was a significant year for Quanta strategically, operationally, and financially. And though we are proud of our many accomplishments during the year, we continue to look forward with excitement towards the multiyear strategic initiatives, we are working on and the goals we expect to achieve in this and the coming years. We are positioning Quanta for decades of expected necessary infrastructure investment and believe our service line diversity creates platforms for growth that expand our total addressable market.Our portfolio approach and focus on craft skill labor is strategic advantage that provides us the ability to manage risk and ship resources across service lines and geographies. Which we believe will become increasingly important, as the energy transition accelerates. We believe our portfolio approach positions us well to allocate resources to the opportunities we find the most economically attractive and to achieve operating efficiencies and consistent financial results. I will now turn the call over to Jayshree Desai, Quanta's CFO, to provide a few remarks about our results and 2024 guidance, and then we will take your questions. Jayshree?Jayshree Desai: Thanks Duke and good morning everyone. Quanta completed the year with fourth quarter revenues of $5.8 billion, net income attributable to common stock of $210.9 million or $1.42 per diluted share, and adjusted diluted earnings per share of $2.04. Adjusted EBITDA was $550.2 million or 9.5% of revenue. Of note, our cash flow in the fourth quarter and for the full year was very strong with both setting period records. For the fourth quarter and full year of 2023, we had free cash flow of $915.5 million and $1.2 billion, respectively, which exceeded the upper end of our free cash flow guidance expectations. We ended the year with liquidity and a balance sheet that will position us to support our organic growth expectations in 2024, annually increase our dividend, and opportunistically invest capital.To that end, in January, we acquired two companies for aggregate consideration of approximately $425 million. This morning, we also provided our full year 2024 financial expectations, which calls for another year of profitable growth with record revenues, improved margins and opportunity for double-digit growth in adjusted EBITDA, adjusted earnings per share, and free cash flow. We believe our expectations demonstrate the strength of our portfolio approach to the business, our commitment to our long-term strategy, our favorable end market trends, and our competitive position in the marketplace. Additional details and commentary about our 2024 financial guidance can be found in our operational and financial commentary and outlook expectation summary, both of which are posted on our IR website.With that, we are happy to answer your questions. Operator?See also 20 Fastest Growing Biotech Companies in the US and 20 Most Valuable Digital Health Companies In The US.To continue reading the Q&A session, please click here.

Insider Monkey

Quanta Services, Inc. (NYSE:PWR) Q4 2023 Earnings Call Transcript

https://finance.yahoo.com/news/quanta-services-inc-nyse-pwr-151209563.html

5cbb3033-0811-33f2-bda6-2bff694f8290

PWR

Shareholders of Quanta Services, Inc. (NYSE:PWR) will be pleased this week, given that the stock price is up 11% to US$234 following its latest annual results. It was a workmanlike result, with revenues of US$21b coming in 3.2% ahead of expectations, and statutory earnings per share of US$5.00, in line with analyst appraisals. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year. Check out our latest analysis for Quanta Services earnings-and-revenue-growthFollowing the latest results, Quanta Services' 15 analysts are now forecasting revenues of US$22.6b in 2024. This would be a decent 8.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 19% to US$6.10. Before this earnings report, the analysts had been forecasting revenues of US$22.1b and earnings per share (EPS) of US$6.25 in 2024. So it's pretty clear consensus is mixed on Quanta Services after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.The analysts also upgraded Quanta Services' price target 9.6% to US$238, implying that the higher revenue expected to generate enough value to offset the forecast decline in earnings. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Quanta Services at US$275 per share, while the most bearish prices it at US$165. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.Story continuesThese estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Quanta Services' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Quanta Services' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 8.2% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.1% annually. Factoring in the forecast slowdown in growth, it looks like Quanta Services is forecast to grow at about the same rate as the wider industry.The Bottom LineThe most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Quanta Services will grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.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 Quanta Services 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 1 warning sign for Quanta Services 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.

Earnings Update: Here's Why Analysts Just Lifted Their Quanta Services, Inc. (NYSE:PWR) Price Target To US$238

https://finance.yahoo.com/news/earnings-heres-why-analysts-just-134835435.html

61b444fe-1410-338b-97c6-3fb186698482

PWR

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 Quanta Services, Inc. (NYSE:PWR) in the fourth quarter 2023 investor letter. Headquartered in Houston, Texas, Quanta Services, Inc. (NYSE:PWR) offers infrastructure solutions to the electric power, oil and gas, and communication industries. On March 6, 2024, Quanta Services, Inc. (NYSE:PWR) stock closed at $241.80 per share. One-month return of Quanta Services, Inc. (NYSE:PWR) was 16.38%, and its shares gained 50.61% of their value over the last 52 weeks. Quanta Services, Inc. (NYSE:PWR) has a market capitalization of $35.242 billion.Artisan Mid Cap Fund stated the following regarding Quanta Services, Inc. (NYSE:PWR) in its fourth quarter 2023 investor letter:"Along with DexCom, notable adds in the quarter included Quanta Services, Inc. (NYSE:PWR) and Jabil. Quanta provides outsourced skilled labor for maintenance and construction services, primarily to utilities. We have followed the company for over a decade and have witnessed its shift from oil and gas to renewables. The energy transition (solar and wind farms, electric vehicles, etc.) requires investments in the US energy grid to support greater electrification. At the same time, climate change is increasing stress on the existing grid, forcing utilities to increase maintenance spending. Furthermore, Federal incentive programs, such as the Inflation Reduction Act and Bipartisan Infrastructure Act, will help fuel Quanta’s long-term growth given its expertise in transmission and distribution connections as renewable energy infrastructure seeks to connect to the grid. The stock sold off early in the quarter on concerns that higher interest rates would lead to a pullback in renewables investments by utility customers. However, based on our industry research, we think Quanta’s key customers are well resourced and committed to meeting long-term electrification needs via infrastructure investment. We used the selloff as an opportunity to move the position into the CropSM at a more attractive valuation."Story continuesA team of electricians climbing an industrial wiring structure, the complexity of the project revealed in the background.Quanta Services, Inc. (NYSE:PWR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Quanta Services, Inc. (NYSE:PWR) was held by 51 hedge fund portfolios, down from 54 in the previous quarter, according to our database.We discussed Quanta Services, Inc. (NYSE:PWR) in another article and shared the list of high growth non-tech stocks that are profitable. 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 Countries With The Best Justice System in the World11 Best March Dividend Stocks To Buy13 Best Dividend Stocks For Rising Interest RatesDisclosure: None. This article is originally published at Insider Monkey.

Insider Monkey

Should You Add Quanta Services (PWR) to Your Portfolio?

https://finance.yahoo.com/news/add-quanta-services-pwr-portfolio-130037369.html

8d71b8de-c691-3395-bfa5-d81c7d20bcb4

PWR

In this piece, we will take a look at the 11 best engineering stocks to buy for 2024. If you want to skip our introduction to the engineering and construction industry, known for its high technology and high capital expenditure, then you can take a look at the 5 Best Engineering Stocks to Buy for 2024. If there's one thing that can be said for sure, it's that engineering is responsible for most of the technological achievements of the human race. The way we live and work has changed significantly over the course of the past century, aided by advances in transportation that see thousands of aircraft take to the skies daily and 24/7 electricity ensured by heavy duty power generators that use fossil fuels or green energy sources such as solar plants and windmills.While engineering is also used to refer to software engineering and by extension the work of firms such as Microsoft Corporation (NASDAQ:MSFT) and Meta Platforms, Inc. (NASDAQ:META), typically, engineering stocks are those that deal with heavy duty industrial grade products or serve the needs of the construction industry. For instance, one of the most well known engineering stocks in the U.S. is the industrial giant General Electric Company (NYSE:GE). It makes a wide variety of advanced products such as turbines and jet engines, and with a market capitalization of $167 billion, the stock is just a couple of catalysts shy of transforming itself from a large cap to a mega cap.Another example of an engineering stock is the diversified engineering and construction company Fluor Corporation (NYSE:FLR). Headquartered in Texas, the firm provides a wide variety of engineering services to the energy industry and includes other sectors such as construction in the mix as well.As you might be starting to understand, the nature of engineering stocks means that they are exposed to a specific set of tailwinds and headwinds. For firms such as Fluor Corporation (NYSE:FLR), these can include those involving their businesses. Since a large portion of Fluor's revenue comes from oil exploration, should the world's appetite for the black gold start to shrink, then the firm's shares will drop as well Additionally, since a lot of engineering stocks provide services to the construction industry, any drop in construction activity or housing starts will naturally not bode well for the shares.Story continuesBuilding on this, construction activity in the U.S. is also facing the heat from high interest rates. These make it difficult for builders to raise capital for new projects and also make it harder for prospective buyers to make pricey purchases. For instance, data from the Census Bureau shows that construction activity in the United States grew moderately annually in 2023 but did mark a double digit jump in December. In 2023, the total value of construction activity was worth $1.9 trillion to mark for a small 1% annual growth while in December 2023, a total of $2 trillion was spent on construction for a more noticeable 13.9% annual growth.Before we get to our list of the best engineering stocks, it's quite important to see what investors believe will be the timeline for U.S. interest rate cuts. After all, rate cuts stimulate economic activity and end up being a headwind for industrial and engineering stocks. On this front, data from the CME FedWatch tool shows that 53% are optimistic for a 25 basis point cut in June 2024 and this probability increases to 61% for cuts ranging between 25 basis points and 50 basis points in July. Should these expectations hold and if the economy continues to perform, then engineering stocks can also rise with the tide.With these details in mind, let's take a look at the best engineering stocks to buy. Some top names are KBR, Inc. (NYSE:KBR), Quanta Services, Inc. (NYSE:PWR), and TopBuild Corp. (NYSE:BLD).12 Best Engineering Stocks to Buy For 2024A crane carrying heavy building materials, representing the robust civil engineering products of the company.Our MethodologyTo make our list of the best engineering stocks to buy, we ranked the most valuable construction and engineering firms by the number of hedge funds that had bought the shares in Q4 2023. Only those industrial companies with a significant reliance on engineering for their business were chosen.For these best engineering 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 Engineering Stocks to Buy For 202411. Tetra Tech, Inc. (NASDAQ:TTEK)Number of Q4 2023 Hedge Fund Shareholders: 27Tetra Tech, Inc. (NASDAQ:TTEK) is an engineering services company headquartered in Pasadena, California. Its shares are rated Buy on average, and the average analyst share price target is $196.By the end of 2023's fourth quarter, out of the 933 hedge funds covered by Insider Monkey's research, 27 had invested in the firm. Tetra Tech, Inc. (NASDAQ:TTEK)'s stakeholder in our database is Ken Griffin's Citadel Investment Group due to its $47 million investment.Tetra Tech, Inc. (NASDAQ:TTEK) joins Quanta Services, Inc. (NYSE:PWR), KBR, Inc. (NYSE:KBR), and TopBuild Corp. (NYSE:BLD) in our list of the top engineering stocks for 2024.10. APi Group Corporation (NYSE:APG)Number of Q4 2023 Hedge Fund Shareholders: 30 APi Group Corporation (NYSE:APG) is an industrial consulting company that enables customers to work with safety systems, utility infrastructure, and other engineering areas. Its shares are up by 8.85% year to date, helped no doubt by the fact that APi Group Corporation (NYSE:APG)'s full year guidance given in February saw it upgrade the operating income forecast and share that it will be above the midpoint of the previous guidance to sit at $780 million. Delving deeper into its latest guidance, APi Group Corporation (NYSE:APG)'s management believes that in 2024, its building heating and associated projects will see their growth temper down as material costs drop.During 2023's December quarter, 30 out of the 933 hedge funds part of Insider Monkey's database were APi Group Corporation (NYSE:APG)'s shareholders. Andreas Haloversen's Viking Global was the biggest investor as it owned a $1.1 billion stake.9. Fluor Corporation (NYSE:FLR)Number of Q4 2023 Hedge Fund Shareholders: 32 Fluor Corporation (NYSE:FLR) provides a variety of utility related services that include nuclear power, mining project management, and other engineering aid. The firm's shares tanked after its fourth quarter and full year earnings report, as investors were less than impressed after a $21 million loss stunned analyst estimates of a $98 million.During last year's fourth quarter, 32 out of the 933 hedge funds profiled by Insider Monkey had bought and owned the firm's shares. Fluor Corporation (NYSE:FLR)'s largest hedge fund shareholder is Israel Englander's Millennium Management as it owns $136 million worth of shares.8. AECOM (NYSE:ACM)Number of Q4 2023 Hedge Fund Shareholders: 33 AECOM (NYSE:ACM) is a sizeable American firm that provides engineering design, construction engineering, and other associated services. It's one of the strongest rated engineering stocks on our list, with an average share rating of Strong Buy and an average share price target of $104. February 2024 also marked a win for the firm as it saw AECOM (NYSE:ACM) secure an engineering contract to build a Ontario rapid transit line covering more than 15 kilometers.As of December 2023, 33 out of the 933 hedge funds tracked by Insider Monkey were AECOM (NYSE:ACM)'s investors. Jeffrey Smith's Starboard Value LP owned the biggest stake which was worth $167 million.7. Comfort Systems USA, Inc. (NYSE:FIX)Number of Q4 2023 Hedge Fund Shareholders: 34 Comfort Systems USA, Inc. (NYSE:FIX) is a mechanical and electrical engineering firm that caters to the needs of the construction industry. Its shares surged by 12% in the days after the Q4 earnings results that saw Comfort Systems USA, Inc. (NYSE:FIX) beat analyst EPS estimates by delivering $9.01 as its earnings per share. Looking at the share price upside, the firm's average share price target is $275 which is lower than the current market share price of $282.Insider Monkey scoured through 933 hedge funds for their fourth quarter of 2023 investments to find that 34 had invested in the firm. Comfort Systems USA, Inc. (NYSE:FIX)'s largest hedge fund stakeholder is Israel Englander's Millennium Management through its $56.9 million investment.6. MasTec, Inc. (NYSE:MTZ)Number of Q4 2023 Hedge Fund Shareholders: 39 MasTec, Inc. (NYSE:MTZ) is a diversified engineering company that caters to the needs of the energy, construction, telecommunications firms, and other entities. With the latest earnings results due on February 29th, the firm is heading towards them with some momentum on the earnings front as it has beaten analyst EPS estimates in three out of its four latest quarters.As of Q4 2023 end, 39 out of the 933 hedge funds covered by Insider Monkey's research had bought MasTec, Inc. (NYSE:MTZ)'s shares. Herbert Frazier's Hill City Capital was the biggest investor since it owned 2 million shares that are worth $156 million.MasTec, Inc. (NYSE:MTZ), KBR, Inc. (NYSE:KBR), Quanta Services, Inc. (NYSE:PWR), and TopBuild Corp. (NYSE:BLD) are some engineering stocks that hedge funds are buying in 2024.Click here to continue reading and check out 5 Best Engineering Stocks to Buy For 2024. Suggested articles:Bill Gates’ 16 Dividend Stocks To Buy12 $10 Stocks That Will Triple14 Best S&P 500 Dividend Stocks To Invest In 2024Disclosure: None. 11 Best Engineering Stocks to Buy For 2024 is originally published on Insider Monkey.

Insider Monkey

11 Best Engineering Stocks to Buy For 2024

https://finance.yahoo.com/news/11-best-engineering-stocks-buy-143014593.html

7c452835-2668-39fa-84ba-453823a5d8ea

PXD

Strengths highlight Pioneer's robust presence in the Permian Basin and strong financial performance.Weaknesses underscore the challenges of reserve replacement and operational risks.Opportunities emphasize potential for strategic acquisitions and technological advancements.Threats consider the competitive landscape and cybersecurity vulnerabilities.Warning! GuruFocus has detected 6 Warning Signs with CPT.On February 22, 2024, Pioneer Natural Resources Co (NYSE:PXD), an independent oil and gas exploration and production company, filed its annual 10-K report, revealing a detailed account of its financial and operational status. Headquartered in Irving, Texas, Pioneer has a focused presence in the Permian Basin, boasting 2.4 billion barrels of proven reserves and a net production rate of 650 mboe per day as of year-end 2022. With oil and natural gas liquids making up 79% of its production, the company's financial tables reflect a robust balance sheet, signaling a strong market position and potential for growth. This SWOT analysis delves into the strengths, weaknesses, opportunities, and threats as presented in the 10-K filing, providing investors with a comprehensive understanding of Pioneer's strategic outlook.Decoding Pioneer Natural Resources Co (PXD): A Strategic SWOT InsightStrengthsRobust Permian Basin Operations: Pioneer Natural Resources Co (NYSE:PXD) has established a dominant position in the Permian Basin, one of the most prolific oil-producing regions in the United States. The company's substantial proven reserves of 2.4 billion barrels of oil equivalent and its high production rate underscore its operational efficiency and resource management. The focus on oil and natural gas liquids, which represent a significant portion of its production, aligns with market demand and pricing advantages, further solidifying its strength in the sector.Financial Resilience: Pioneer's financial performance is a testament to its strategic planning and risk management. The company's balance sheet reflects a strong financial position, with a healthy cash flow that supports its operations and investment activities. Its ability to maintain financial stability amidst market volatility is a competitive advantage that allows for sustained growth and shareholder value creation.Story continuesWeaknessesChallenges in Reserve Replacement: Despite Pioneer's significant proven reserves, the company faces the ongoing challenge of replacing reserves to sustain long-term production levels. The natural decline in well productivity necessitates continuous investment in drilling and production enhancement initiatives. The company's ability to find or acquire additional recoverable reserves is crucial to mitigating production declines and maintaining its reserve base, which is a weakness that requires strategic focus and capital allocation.Operational Risks: Pioneer's operations are subject to inherent risks associated with the oil and gas industry, including environmental hazards, equipment failures, and compliance with regulatory requirements. These operational risks can lead to unforeseen interruptions and potential financial losses. While the company has measures in place to manage these risks, the possibility of significant adverse events remains a weakness that could impact its operational efficiency and profitability.OpportunitiesStrategic Acquisitions and Partnerships: Pioneer Natural Resources Co (NYSE:PXD) has the opportunity to expand its asset base and enhance its market position through strategic acquisitions and partnerships. The company's strong financial standing enables it to pursue deals that can add value to its portfolio, such as the transaction with Exxon Mobil Corporation. By capitalizing on such opportunities, Pioneer can accelerate its growth and diversify its operations.Technological Advancements: The adoption of advanced technologies in exploration, drilling, and production processes presents significant opportunities for Pioneer. Leveraging technological innovations can improve operational efficiency, reduce costs, and minimize environmental impact. The company's commitment to ESG goals, including emissions reductions and water management, can be furthered through technology, enhancing its reputation and operational performance.ThreatsCompetitive Landscape: Pioneer operates in a highly competitive industry, where it faces competitors with greater financial and other resources. The competition extends beyond traditional oil and gas companies to include alternative energy providers, which are gaining support through government incentives and technological advancements. To maintain its competitive edge, Pioneer must continuously innovate and adapt to the evolving energy landscape.Cybersecurity and Data Privacy: As with many modern enterprises, Pioneer is exposed to cybersecurity threats that could compromise sensitive data and disrupt operations. The evolving nature of cyber threats requires the company to invest in robust security measures and remain vigilant against potential attacks. A significant cybersecurity incident could have far-reaching consequences for Pioneer's reputation and financial health.In conclusion, Pioneer Natural Resources Co (NYSE:PXD) demonstrates strong operational capabilities and financial resilience, particularly in its core area of the Permian Basin. However, the company must navigate the challenges of reserve replacement and operational risks. Opportunities for growth through strategic acquisitions and technological advancements are promising, but Pioneer must also be mindful of the competitive landscape and cybersecurity threats. By leveraging its strengths and addressing its weaknesses, while capitalizing on opportunities and mitigating threats, Pioneer is well-positioned to continue its trajectory of success in the oil and gas industry.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 Pioneer Natural Resources Co (PXD): A Strategic SWOT Insight

https://finance.yahoo.com/news/decoding-pioneer-natural-resources-co-050808892.html

991c2fba-1eda-31b5-836e-f320c2a63f83

PXD

Pioneer Natural Resources (PXD) 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.Shares of this independent oil and gas company have returned +0.9% over the past month versus the Zacks S&P 500 composite's +4.7% change. The Zacks Oil and Gas - Exploration and Production - United States industry, to which Pioneer Natural Resources belongs, has gained 5.5% over this period. Now the key question is: Where could the stock be headed in the near term?Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.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.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.Pioneer Natural Resources is expected to post earnings of $5.25 per share for the current quarter, representing a year-over-year change of +0.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.3%.For the current fiscal year, the consensus earnings estimate of $21.27 points to a change of +2.5% from the prior year. Over the last 30 days, this estimate has changed -1.1%.Story continuesFor the next fiscal year, the consensus earnings estimate of $21.95 indicates a change of +3.2% from what Pioneer Natural Resources is expected to report a year ago. Over the past month, the estimate has changed +1%.Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Pioneer Natural Resources is rated Zacks Rank #4 (Sell).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.For Pioneer Natural Resources, the consensus sales estimate for the current quarter of $5.31 billion indicates a year-over-year change of +16.9%. For the current and next fiscal years, $21.46 billion and $22.44 billion estimates indicate +10.8% and +4.6% changes, respectively.Last Reported Results and Surprise HistoryPioneer Natural Resources reported revenues of $5.22 billion in the last reported quarter, representing a year-over-year change of +2.1%. EPS of $5.26 for the same period compares with $5.91 a year ago.Compared to the Zacks Consensus Estimate of $5.18 billion, the reported revenues represent a surprise of +0.72%. The EPS surprise was -2.77%.Over the last four quarters, Pioneer Natural Resources surpassed consensus EPS estimates three times. The company topped consensus revenue estimates just once over this period.ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.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.Pioneer Natural Resources is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.Bottom LineThe 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 Pioneer Natural Resources. 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 reportPioneer Natural Resources Company (PXD) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Pioneer Natural Resources Company (PXD) is Attracting Investor Attention: Here is What You Should Know

https://finance.yahoo.com/news/pioneer-natural-resources-company-pxd-140010306.html

21becc42-49c9-3891-9902-d2fe301a51d9

PXD

In this piece, we will take a look at the 13 oil stocks with the biggest upside. If you want to skip our overview of the oil sector and some recent news, then you can skip ahead to the 5 Oil Stocks with Biggest Upside. When we talk about investing in major sectors of the stock market, such as oil stocks, the number of equities that are available for trading on major indexes runs into the hundreds. This means that selecting the right stocks to invest in becomes a tedious process that requires an investor to patiently work through copious amounts of financial data to see whether a share price is justified by a firm's underlying models.Naturally, this is why the finance industry exists, with the sell side sector hiring teams to analyze stocks and write recommendations. Some such firms include banks such as JPMorgan Chase & Co. (NYSE:JPM), Morgan Stanley (NYSE:MS), and The Goldman Sachs Group, Inc. (NYSE:GS). These banks issue hundreds of stock notes each year, and often formulate lists of top firms in sectors such as oil to narrow down potential star stock performers.Oil stocks in particular have been at the center of news coverage for the past couple of years, and despite significant demand up and downswings in the sector, their long term returns still resemble those that are characteristic of stable sectors. For instance, when we look at the five year performance of the S&P Oil & Gas Exploration & Production Select Industry Index, the index is up by 16%, a growth that discounts the effects of dividends in providing investors a larger bang for their buck.In fact for the oil industry, even though 2023 was a boon in terms of revenue and high profits due to elevated gas prices stemming from the Russian invasion of Ukraine, it saw a sector that was still reeling from the effects of post pandemic global shutdowns and travel restrictions. These had ensured that the demand for oil was cut down significantly, and as the implications became clear, the same S&P oil index that is up by 16% over the past five years dropped by more than 30% over the course of a single summer month.Story continuesJust before this turmoil hit, i.e. in June 2022, Goldman Sachs had started to share its favored oil stocks which the bank's analyst Neil Mehta outlined had the potential for the greatest share price upside. The list was accompanied by a note that identified companies slated to benefit from a boom in global commodity demand and prices right when the global energy industry was undergoing a significant re shift on the supply side and fuels such as liquefied natural gas (LNG) boomed as an alternative to cheap Russian gas.Mehta explained that the list of companies his teams had identified carried the potential of generating strong cash flows and potentially experiencing significant upside revisions down the road. He added that in case of long term crude oil prices hovering around $90, the top oil stocks could provide attractive valuations and end up being important components of a beta barbell investing strategy that allows an investor to focus on high and low risk stocks to strike an adequate balance between hedging a portfolio and seeking return.Since then, Goldman Sachs has mostly stuck with its oil price forecast, which is important since the high cash flow companies that the analyst identified are said to be capable of using stable prices to generate high cash flow. Cash flow is the actual money that is available to a firm for its operations and investor returns, and the bank's latest oil price forecast sits at $87 after a $2 raise in February 2024.With the outlook of oil still rosy despite a slow Chinese recovery, we decided to look at the top oil stocks with the biggest upside. Some notable picks are Chevron Corporation (NYSE:CVX), Hess Corporation (NYSE:HES), and Pioneer Natural Resources Company (NYSE:PXD).13 Oil Stocks with Biggest UpsideAn oil derrick in the North Sea, revealing the scope of the company's drilling operations.Our MethodologyTo make our list of the oil stocks with the highest upside, we ranked Goldman Sachs's top oil stock picks in 2022 and 2024 by the number of hedge funds that had bought the shares in 2023's December quarter. Out of these, the stocks with the highest number of hedge fund shareholders were chosen as the oil stocks with the highest upside. For the oil stocks from 2022, the share price performance from March 2022 is shared.For these oil stocks with the largest upside, we used 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.13 Oil Stocks with Biggest Upside13. Magnolia Oil & Gas Corporation (NYSE:MGY)Number of Q4 2023 Hedge Fund Shareholders: 25 Share Price Performance Since March 2022: -4.22%Magnolia Oil & Gas Corporation (NYSE:MGY) is a small American oil exploration firm headquartered in Houston, Texas. While the shares are down by 4.22% since March 2022, after the July dip, they have appreciated by 10%. The average analyst share price target is $24.77.During December 2023, 25 out of the 933 hedge funds tracked by Insider Monkey had bought the firm's shares. Magnolia Oil & Gas Corporation (NYSE:MGY)'s largest stakeholder among these is Amy Minella's Cardinal Capital due to its $42.9 million investment.Along with Hess Corporation (NYSE:HES), Chevron Corporation (NYSE:CVX), and Pioneer Natural Resources Company (NYSE:PXD), Magnolia Oil & Gas Corporation (NYSE:MGY)   is an oil stock with significant upside.12. Kosmos Energy Ltd. (NYSE:KOS)Number of Q4 2023 Hedge Fund Shareholders: 62 Share Price Performance Since March 2022: -5.77% Kosmos Energy Ltd. (NYSE:KOS) is an American oil and gas company with exploration projects in the U.S. and other countries. Its shares have been on a roller coaster trajectory since March 2022, and while the stock has soared by as much as 45% during this period, over the long term it is still down by roughly 6%.As of Q4 2023 end, 62 out of the 933 hedge funds part of Insider Monkey's database had bought and owned a stake in Kosmos Energy Ltd. (NYSE:KOS). Len Kipp and Xavier Majic's Maple Rock Capital was the firm's biggest investor since it owned $60 million worth of shares.11. Ovintiv Inc. (NYSE:OVV)Number of Q4 2023 Hedge Fund Shareholders: 35 Share Price Performance Since March 2022: -0.27%Ovintiv Inc. (NYSE:OVV) produces oil in several American states and Canadian provinces. While the stock was quick to recover most of its 2022 losses in the next couple of months, a sell off that took place in July 2023 after it announced a $250 million asset sale is yet to reverse itself.Insider Monkey scoured through 933 hedge fund holdings for last year's fourth quarter and found that 35 had invested in Ovintiv Inc. (NYSE:OVV). Michael Rockefeller and Karl Kroeker's Woodline Partners was the biggest investor since it held a $136 million stake.10. Antero Resources Corporation (NYSE:AR)Number of Q4 2023 Hedge Fund Shareholders: 39 Share Price Performance Since March 2022: -0.55%Antero Resources Corporation (NYSE:AR) is a Colorado based oil company with operations in the Appalachian basin and the Upper Devonian Shale. Looking at its financials to see how cash flows have done over the past couple of years, the operating cash flow dropped significantly in 2023 over 2022, on the back of a lower net income.By December 2023 end, 39 out of the 933 hedge funds surveyed by Insider Monkey were the firm's shareholders. Antero Resources Corporation (NYSE:AR)'s largest stakeholder is Phill Gross and Robert Atchinson's Adage Capital Management as it owns $107 million worth of shares.9. EQT Corporation (NYSE:EQT)Number of Q4 2023 Hedge Fund Shareholders: 40 Share Price Performance Since March 2022: 6.55%EQT Corporation (NYSE:EQT) is a pure play natural gas company headquartered in Pittsburgh, Pennsylvania. A greater interest in U.S. oil production following the Russian invasion has helped the stock over the past twelve months as the shares are up by 9.85%.Insider Monkey dug through 933 hedge fund portfolios for 2023's December quarter to find 40 EQT Corporation (NYSE:EQT) investors.  Eric W. Mandelblatt's Soroban Capital Partners owned the biggest stake which was worth $214 million.8. Coterra Energy Inc. (NYSE:CTRA)Number of Q4 2023 Hedge Fund Shareholders: 42 Share Price Performance Since March 2022: 2.78%Coterra Energy Inc. (NYSE:CTRA) is another natural gas company. The fact that its shares are also up since March marks a crucial divergence on our list of the oil stocks with the biggest upside. This comes in the form of natural gas, as gas companies have managed to sustain investor interest due to the need to develop Russian alternatives. Year to date the stock is flat on the back of weaker natural gas prices.During last year's final quarter, 42 out of the 933 hedge funds tracked by Insider Monkey had bought the firm's shares. Coterra Energy Inc. (NYSE:CTRA)'s largest hedge fund investor is Steve Cohen's Point72 Asset Management since it owns 5.5 million shares that are worth $141 million.7. Diamondback Energy, Inc. (NASDAQ:FANG)Number of Q4 2023 Hedge Fund Shareholders: 42 Share Price Performance Since March 2022: 36.75%Diamondback Energy, Inc. (NASDAQ:FANG) is one of the highest performing stocks on our list of the top stocks with the highest upside. A somewhat diversified firm, it is involved in producing oil and gas and transporting it as well. Not only are the shares up by 36.75% since March 2022, but this doesn't capture the full return as Diamondback Energy, Inc. (NASDAQ:FANG) also pays a $2 dividend for a 4.5% yield.Insider Monkey's fourth quarter of 2023 survey covered 933 hedge funds and found 42 Diamondback Energy, Inc. (NASDAQ:FANG) shareholders. Ric Dillon's Diamond Hill Capital was the biggest shareholder through its $248 million stake.6. ConocoPhillips (NYSE:COP)Number of Q4 2023 Hedge Fund Shareholders: 59 Share Price Performance Since March 2022: 4.22%ConocoPhillips (NYSE:COP) is a Texas based diversified oil firm with a presence in several countries. It's also one of the top rated stocks on our list, having secured an average share rating of Strong Buy and an average share price target of $136 that promises a hefty upside.59 out of the 933 hedge funds part of Insider Monkey's Q4 2023 database had bought and owned the firm's shares. ConocoPhillips (NYSE:COP)'s largest hedge fund investor is Boykin Curry's Eagle Capital Management due to its $1.5 billion investment.Chevron Corporation (NYSE:CVX), Hess Corporation (NYSE:HES), ConocoPhillips (NYSE:COP), and Pioneer Natural Resources Company (NYSE:PXD) are some top Goldman Sachs oil stocks with high potential upside.Click to continue reading and see 5 Oil Stocks with Biggest Upside.Suggested Articles:15 Best Stocks to Buy According to Billionaire D.E. Shaw20 Countries With Worst Vision ProblemsWarren Buffett and Hedge Funds Love These 11 StocksDisclosure. None. 13 Oil Stocks with Biggest Upside was initially published on Insider Monkey.

Insider Monkey

13 Oil Stocks with Biggest Upside

https://finance.yahoo.com/news/13-oil-stocks-biggest-upside-144301349.html

29ec2465-ed4e-35f0-8a47-533953e3894b

PXD

Investing in the stock market comes in all flavors and sizes. Typically, most investors focus on a firm's fundamentals, i.e. its income statement and balance sheet. So for instance, if a company's top and bottom line income grows significantly, then its shares also witness a corresponding increase in valuation. We don't have to look for this principle as the artificial intelligence stock NVIDIA Corporation (NASDAQ:NVDA)'s successive earnings reports have demonstrated triple digit growth on several fronts and its shares are at all time high levels.Another investing approach is looking at the technical indicators to determine if any favorable market 'winds' are blowing to allow the investor to align their sails for smooth trading. These indicators include historic share price averages, the volume of shares traded, and metrics that determine if a stock is overbought or oversold. Another such indicator is seasonality, which checks to see if any stock market sectors deliver returns by the season.When we talk about seasonality, then since spring has just started, it's best to see which Spring stocks are seeing interest from hedge funds. But before that, a look to see which stock market sectors perform well in spring. On this front, some research from CNBC and StockCharts can help guide us. Since the latter segregates stock indexes by their monthly performance, it makes sense to start our brief look at spring stock market performance by starting from it.Taking a look at the flagship S&P 500, the tech heavy NASDAQ Composite, and the NYSE Primary, then the first three months of spring offer strong returns across all of these. Considering data for the twelve months of the year between 2005 to 2024, the S&P 500 closed higher in April 84% of the time - the highest for any month during the year. This is also the case for the NYSE's performance, with the same percentage for the same month.Finally, when we look at how stocks on the NASDAQ Composite perform during spring months, then March and April saw the index close higher 68% of the time, each - for the second highest figure after its performance during July and November. Finally, spring's a good time for stocks especially when we consider that for the S&P and NYSE, May offers the third highest odds for a higher monthly close. Performance in May is particularly interesting when we remember a stock market 'proverb' that calls on investors to 'Sell in May and Go Away', referring to portfolio adjustments before the holidays. Combining this with the data, perhaps one reason why stocks do well in May is due to low liquidity also affecting prices through volatility.Story continuesThe next step in our analysis of the best spring stocks is to see which sectors perform well. On this front, CNBC did some research and determined that the best spring stocks often include companies that operate in the financial services and energy industry. To quote the publication:CNBC.com looked at stock performance over the past ten years and calculated the highest average gains during the spring months of March, April and May. Of all the stocks to achieve a gain of 20 percent or more, 27 percent were in the financial sector, while 21 percent were energy-oriented.So, how are these sectors doing right now? Well, the finance industry remains one of the most dynamic ones in the market. Banks were given a scare earlier this year after the shares of New York Community Bancorp, Inc. (NYSE:NYCB) dropped after it reported a surprise loss for the fourth quarter and made allocations for potential turmoil in the commercial real estate industry. The real estate sector's troubles have been exacerbated by record high interest rates, which also led to the fall of several U.S. banks during last year's regional banking crisis in the U.S.So, with spring with us, we decided to take a look at some top spring stocks to buy.15 Best Spring Stocks To Buy NowOur MethodologyTo make our list of the best spring stocks, we picked out the financial services and energy stocks with the highest number of hedge fund investors during Q4 2023.For these best spring 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.15 Best Spring Stocks To Buy Now15. Occidental Petroleum Corporation (NYSE:OXY)Number of Q4 2023 Hedge Fund Shareholders: 66 Occidental Petroleum Corporation (NYSE:OXY) is an American oil and gas exploration and production firm headquartered in Houston, Texas. The firm is ready to start the spring stock season on a strong note by reporting its Q4 2023 earnings during the first week of May. Analysts have penned an EPS estimate of 66 cents for Occidental Petroleum Corporation (NYSE:OXY)'s fourth quarter earnings.During the same quarter, 66 out of the 933 hedge funds tracked by Insider Monkey were Occidental Petroleum Corporation (NYSE:OXY)'s shareholders. Warren Buffett's Berkshire Hathaway owned the biggest stake which was worth $14.5 billion.14. The Goldman Sachs Group, Inc. (NYSE:GS)Number of Q4 2023 Hedge Fund Shareholders: 69The Goldman Sachs Group, Inc. (NYSE:GS) is one of the biggest investment banks in the world. As it divests away from its ill fated entry into consumer banking, February 2024 has been a busy month for The Goldman Sachs Group, Inc. (NYSE:GS) and has seen the bank expand its presence in Asia through a $1 billion investment fund and announce a new private equity round for its fund.As of Q4 2023 end, 69 out of the 933 hedge funds covered by Insider Monkey's research had invested in the firm. The largest The Goldman Sachs Group, Inc. (NYSE:GS) shareholder is Ken Fisher's Fisher Asset Management due to its $2.1 billion investment.13. Chevron Corporation (NYSE:CVX)Number of Q4 2023 Hedge Fund Shareholders: 71 Chevron Corporation (NYSE:CVX) is an American oil and gas super major. The firm's $53 billion acquisition of Hess Corp made headlines last year, and its shares dropped in February after Chevron Corporation (NYSE:CVX) warned that the deal might fall through if it cannot secure clearance from rival Exxon Mobile Corporation (NYSE:XOM).By the end of last year's fourth quarter, 71 out of the 933 hedge funds part of Insider Monkey's database were Chevron Corporation (NYSE:CVX)'s shareholders. Warren Buffett's Berkshire Hathaway owned the biggest stake which was worth $18.8 billion.12. Wells Fargo & Company (NYSE:WFC)Number of Q4 2023 Hedge Fund Shareholders: 72Wells Fargo & Company (NYSE:WFC) is one of the biggest domestic banks in the U.S. February 2024 is an important month for the firm since after the recent hype surrounding a reinvigorated mergers and acquisitions season this year, Wells Fargo & Company (NYSE:WFC) appointed a new vice chair with decades of experience in this segment of the finance industry.Insider Monkey scoured through 933 hedge fund portfolios for 2023's December quarter and found that 72 had bought and owned the firm's shares. Wells Fargo & Company (NYSE:WFC)'s largest investor in our database is Peter Rathjens, Bruce Clarke, and John Campbell's Arrowstreet Capital due to its $1.5 billion investment.11. Pioneer Natural Resources Company (NYSE:PXD)Number of Q4 2023 Hedge Fund Shareholders: 76Pioneer Natural Resources Company (NYSE:PXD) is a mid sized oil and gas company headquartered in Irving, Texas. It's become quite an important stock in the energy sector lately, as after Chevron announced that its deal for Hess Corporation might fall through, Pioneer Natural Resources Company (NYSE:PXD)'s multi billion dollar acquisition by Exxon can create fireworks before the final ts are crossed.As of Q4 2023 end, 76 out of th 933 hedge funds part of Insider Monkey's database had held Pioneer Natural Resources Company (NYSE:PXD)'s shares to touch highs last seen in 2016. Mathew Hallbower's Pentwater Capital Management owned the biggest stake which was worth $1.3 billion.10. Apollo Global Management, Inc. (NYSE:APO)Number of Q4 2023 Hedge Fund Shareholders: 77Apollo Global Management, Inc. (NYSE:APO) is one of the biggest asset management companies in the world. As investors rush hand over fist into AI stocks, its chief economist posted a rather interesting graph that pointed out that the "top 10 companies in the S&P 500 today are more overvalued than the top 10 companies were during the tech bubble in the mid-1990s."After digging through 933 hedge fund holdings for last year's fourth quarter, Insider Monkey found that 77 were Apollo Global Management, Inc. (NYSE:APO)'s investors.9. S&P Global Inc. (NYSE:SPGI)Number of Q4 2023 Hedge Fund Shareholders: 82 S&P Global Inc. (NYSE:SPGI) is one of the most well known financial services companies in the world courtesy of its flagship S&P500 index and economic coverage. Its shares are rated Strong Buy on average, and the average analyst share price target is $489.16.By the end of December 2023, 82 out of the 933 hedge funds profiled by Insider Monkey had bought the firm's shares. S&P Global Inc. (NYSE:SPGI)'s largest hedge fund shareholder is Chris Hohn's TCI Fund Management as it owns 9 million shares that are worth $3.9 billion.8. Exxon Mobil Corporation (NYSE:XOM)Number of Q4 2023 Hedge Fund Shareholders: 85Exxon Mobil Corporation (NYSE:XOM) is the last energy stock on our list of the best spring stocks to buy. As rival Chevron warned that its multi billion dollar expansion into Guyana might be blocked by Exxon, the firm chimed in as well and added that it will consider blocking the deal.Insider Monkey's fourth quarter of 2023 survey covering 933 hedge funds revealed 85 Exxon Mobil Corporation (NYSE:XOM) shareholders. Ken Fisher's Fisher Asset Management was the biggest investor due to its $1.3 billion stake.7. PayPal Holdings, Inc. (NASDAQ:PYPL)Number of Q4 2023 Hedge Fund Shareholders: 87PayPal Holdings, Inc. (NASDAQ:PYPL) is the first new age financial technology stock on our list of the best spring stocks. While its shares are down 2% year to date, there might be huge catalysts ahead if we believe recent figures from AltIndex that suggest PayPal Holdings, Inc. (NASDAQ:PYPL)'s payment volume stood at a whopping $1.5 trillion in 2023 for a new all time record.After scouring through 933 hedge fund portfolios for last year's December quarter, Insider Monkey found that 87 had bought the payments company's shares. PayPal Holdings, Inc. (NASDAQ:PYPL)'s largest hedge fund stakeholder is Josh Overdeck and David Siegel's Two Sigma Advisors as it has invested $460 million in the company.6. Citigroup Inc. (NYSE:C)Number of Q4 2023 Hedge Fund Shareholders: 87 Citigroup Inc. (NYSE:C) is another major American bank headquartered in New York City. Its decision to hire a multi decade JPMorgan deal making guru in February won laurels from analysts, with CFRA upgrading the shares to Hold from Buy and increasing the share price target to $65 from $54.As of Q4 2023 end, 87 out of the 933 hedge funds covered by Insider Monkey's research were Citigroup Inc. (NYSE:C)'s investors. Warren Buffett's Berkshire Hathaway owned the biggest stake which was worth $2.8 billion.5. Bank of America Corporation (NYSE:BAC)Number of Q4 2023 Hedge Fund Shareholders: 96 Bank of America Corporation (NYSE:BAC) is one of the biggest domestic banks in the U.S. The bank has been doing well on the financial front as of late by having beaten analyst EPS estimates in all four of its latest quarters. It chimed in on the AI wave in February by pointing out that while NVIDIA's shares have delivered a lot of returns, investors can make more money through call options by capitalizing on share price volatility.Insider Monkey dug through 933 hedge fund portfolios for 2023's December quarter and found that 96 had invested in the bank. Bank of America Corporation (NYSE:BAC)'s biggest investor among these is none other than Warren Buffett's Berkshire Hathaway who owns a $34.7 billion stake.4. JPMorgan Chase & Co. (NYSE:JPM)Number of Q4 2023 Hedge Fund Shareholders: 103 JPMorgan Chase & Co. (NYSE:JPM) is the American banking behemoth headquartered in New York City. With inflation and economic growth being key investor concerns for the stock market this year, its CEO Jamie Dimon was out with a rather dire viewpoint in February 2024 when he warned that the U.S. might be heading towards low growth and high inflation, called Stagflation in economics.As of December 2023 end, 103 out of the 933 hedge funds covered by Insider Monkey's research were the firm's shareholders. JPMorgan Chase & Co. (NYSE:JPM)'s largest hedge fund shareholder is Ken Fisher's Fisher Asset Management as it owns $2 billion worth of shares.3. Berkshire Hathaway Inc. (NYSE:BRK-B)Number of Q4 2023 Hedge Fund Shareholders: 117Berkshire Hathaway Inc. (NYSE:BRK-B) is the investment holding company headed by Warren Buffett. 2024 is a historic year for the firm, as after Mr. Buffett's close business partner and friend Charlie Munger passed away last year, he paid tribute to Mr. Munger in Berkshire Hathaway Inc. (NYSE:BRK-B)'s latest investor letter.During 2023's fourth and final quarter, 117 out of the 933 hedge funds profiled by Insider Monkey held a stake in the firm. Berkshire Hathaway Inc. (NYSE:BRK-B)'s biggest investor among these is Michael Larson's Bill & Melinda Gates Foundation Trust courtesy of its $7.1 billion stake.2. Mastercard Incorporated (NYSE:MA)Number of Q4 2023 Hedge Fund Shareholders: 141Mastercard Incorporated (NYSE:MA) is an American financial technology firm known for its payment platform and credit and debit cards. It's one of the strongest rated stocks on our list, as the shares are rated Strong Buy on average. The average analyst share price target for Mastercard Incorporated (NYSE:MA) is $505.46.During last year's December quarter, 141 out of the 933 hedge funds tracked by Insider Monkey were Mastercard Incorporated (NYSE:MA)'s shareholders. Charles Akre's Akre Capital Management owned the largest stake which was worth $2.1 billion.1. Visa Inc. (NYSE:V)Number of Q4 2023 Hedge Fund Shareholders: 162Visa Inc. (NYSE:V) is Mastercard's primary rival along with American Express in the payments platform industry. And like Mastercard, Capital One's $5.3 billion bid to acquire Discover stands to disrupt Visa Inc. (NYSE:V)'s strong position in the market by creating a large entity capable of competing with it. To wit, the deal has divided observers, as while JPMorgan's Jamie Dimon wants to let them compete, Democrats have urged the Biden Administration to block the deal.As of Q4 2023 end, 162 out of the 933 hedge funds profiled by Insider Monkey had bought and owned the firm's shares. Visa Inc. (NYSE:V)'s biggest hedge fund investor is Chris Hohn's TCI Fund Management through its $4.3 billion investment.Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.Suggested articles:Warren Buffett 2024 Portfolio: Top 12 Stock Picks12 $10 Stocks That Will TripleJim Cramer Was Right About These 10 Stocks

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e999b87e-6106-3a00-8c22-69d7a2f6ebb2

PYPL

Seeley brings over 25 years of global brand, digital, and performance marketing expertise to PayPal and its family of brands, including VenmoSAN JOSE, Calif., Feb. 26, 2024 /PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) today announced Geoff Seeley has joined the company as Chief Marketing Officer (CMO), reporting to Diego Scotti, Executive Vice President (EVP) and General Manager (GM) of Consumer Group and Global Marketing & Communications. Seeley brings over 25 years in global brand, digital, and performance marketing while building teams to drive transformative marketing models. Seeley was most recently the Global CMO and Communications Officer at CashApp and Afterpay. Geoff Seeley Joins PayPal as Chief Marketing OfficerSeeley will be responsible for overseeing the Global Marketing team across PayPal's family of brands, including Venmo. At PayPal, Seeley will be focused on making sure the PayPal and Venmo value propositions are clear, compelling, and simple for customers. He will also focus on bringing new energy to the PayPal and Venmo brands by leveraging the company's innovative history, powerful product portfolio, and continuing to build on customer trust."Geoff has a rich and impressive background leading marketing teams and building brands across some of the biggest global companies," said Diego Scotti, EVP and GM, Consumer Group and Global Marketing & Communications, PayPal. "Geoff brings over 25 years of expertise in transforming global consumer and B2B brands by leveraging cutting-edge digital and performance marketing and building strong teams focused on enhancing brand awareness and engagement with customers." Seeley previously worked on Airbnb's Homes business, where he had responsibilities across regional brand marketing, product marketing, global media, brand partnerships, marketing analytics, and research. Additionally, Seeley worked with Unilever as Global Communications Planning Director, where he helped established, legacy brands transform their marketing models and technology, upleveling the brand experience for customers.    Story continuesSeeley assumes the role of Chief Marketing Officer effective today, February 26, 2024.About PayPalPayPal has been revolutionizing commerce globally for more than 25 years. Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com, https://about.pypl.com/ and https://investor.pypl.com/.Media Contact:Juliet Niczewicz [email protected] original content to download multimedia:https://www.prnewswire.com/news-releases/geoff-seeley-joins-paypal-as-chief-marketing-officer-302070466.htmlSOURCE PayPal Holdings, Inc.

PR Newswire

Geoff Seeley Joins PayPal as Chief Marketing Officer

https://finance.yahoo.com/news/geoff-seeley-joins-paypal-chief-140000076.html

a67eca75-b01b-3d91-a7ed-885b8b8eba90

PYPL

Fool.com contributor Parkev Tatevosian evaluates the latest comments by PayPal's (NASDAQ: PYPL) management team to discuss what it could mean for investors.*Stock prices used were the afternoon prices of Feb. 23, 2024. The video was published on Feb. 25, 2024.Where to invest $1,000 right nowWhen our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.*They just revealed what they believe are the 10 best stocks for investors to buy right now… and PayPal made the list -- but there are 9 other stocks you may be overlooking.See the 10 stocks*Stock Advisor returns as of February 26, 2024Parkev Tatevosian, CFA has positions in PayPal. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short March 2024 $67.50 calls on PayPal. 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.Q&A With Wall Street: PayPal Stock Analysis was originally published by The Motley Fool

Motley Fool

Q&A With Wall Street: PayPal Stock Analysis

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c274bdd5-68b3-3ec3-a955-8f2335278a99

PYPL

In this video, I will cover the recent updates affecting PayPal (NASDAQ: PYPL).*Stock prices used were from the trading day of March 8, 2024. The video was published on March 10, 2024.Where to invest $1,000 right nowWhen our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.*They just revealed what they believe are the 10 best stocks for investors to buy right now… and PayPal made the list -- but there are 9 other stocks you may be overlooking.See the 10 stocks*Stock Advisor returns as of March 11, 2024Neil Rozenbaum has positions in PayPal. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short March 2024 $67.50 calls on PayPal. The Motley Fool has a disclosure policy. Neil 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.What Is Going On With PayPal Stock? was originally published by The Motley Fool

Motley Fool

What Is Going On With PayPal Stock?

https://finance.yahoo.com/news/going-paypal-stock-194639349.html

776eccd7-8e2e-3f64-b0a4-20f96e67a7ed

PYPL

This article takes a look at the 15 best places to retire in Hawaii. If you wish to skip our detailed analysis on navigating retirement living in the US, you may go to 5 Best Places to Retire in Hawaii. Moving Beyond Finances in RetirementIs retirement always about the cheapest possible option? For a large majority of retirees, yes. The average American retiree often sets out in search of the most affordable places to retire in the U.S. In a Synchrony Financial (NYSE:SYF) report, data from the Federal Reserve’s Survey of Consumer Finances states that median retirement savings for Americans aged 65 to 74 are a meager $164,000. While Synchrony Financial (NYSE:SYF) does give tips that senior citizens in their 60s can use to extend their retirement savings - such as working a few extra years or monetizing assets - this is not always an option. For many senior citizens, there are no assets to monetize. As for working longer, the US economy is not always supportive. NerdWallet reports an excess of 34,000 layoffs within the first two months of 2024, with big names such as Zoom Video Communications, Inc. (NASDAQ:ZM), PayPal Holdings, Inc. (NASDAQ:PYPL), and Microsoft Corporation (NASDAQ:MSFT) among the culprits.“It’s just more difficult for media to be profitable, and so you’ve had a pullback and a decline in employment in that sector of the economy” -Nick Bunker, Economic Research Director for North America, Indeed Hiring LabAdding to this, companies often have a trend of hiring younger employees. For instance, just 10% of PayPal Holdings, Inc. (NASDAQ:PYPL)’s workforce is in the 40 and above range, reports Zippia. The same percentage also holds true for Microsoft Corporation (NASDAQ:MSFT)’s employee age demographic. With numbers like these, it becomes difficult to think about little else but finances during retirement. That being said, there are some retirees who manage to save up for a comfortable - even luxurious - retirement. According to Smart Asset, about 10% of American retirees are millionaires when it comes to their retirement savings.  With a larger budget in hand, this gives senior citizens a more varied choice when it comes to their retirement location. Story continuesSenior citizens often search for warmer weather, peaceful communities, and beachside living when deciding on where to retire. The best place to offer all this, of course, is the Aloha State. You might wonder, ‘Is retiring in Hawaii a good idea?’ After all, Nasdaq states that Hawaii is the most expensive states, with an amount as high as $3.1 million needed to retire. However, for retirees who possess the financial means, Hawaii can prove to be a great choice. There’s nothing quite as relaxing as spending one’s Golden Years in a tropical haven. The state offers a moderate climate with low temperatures and mild humidity, a welcome break from the intense cold found in other states such as Alaska, Minnesota, and Wyoming. The winning factor, however, remains to be Hawaii’s natural beauty. The state is dotted with stunning beaches, hiking trails, waterfalls, and tropical forests - the perfect escape for nature-loving retirees. To facilitate retirees who are pondering the move to Hawaii, we have compiled a list of the 15 best places to retire in Hawaii.15 Best Places To Retire In HawaiiSorin Colac/Shutterstock.comMethodologyTo compile this list of the 15 best places to retire in Hawaii, we consulted several sources including Niche, Dewitt Move, New Home Source, Movoto, Royal Hawaiian Movers, Unbiased, Investment U, and Haven Lifestyles.  Once a list of places was compiled using these sources, we then ranked them across multiple factors, namely, their cost of living, their livability scores, and their median house price. For this article, cost of living indices were taken from Best Places, livability scores were taken from Area Vibes, and median house prices were taken from Redfin Corp (NASDAQ:RDFN). A cumulative score was then assigned to each place, with the 15 highest-scoring places making our list of the 15 best places to retire in Hawaii. For places that gained an equal score, their cost of living index and median house price was used as a tie-breaker. The resulting list is presented in ascending order, with the highest-ranked place being presented last. It is important to remember that personal preference plays a big part. The best course of action is to visit the place you plan to move to, converse with locals, take advice from a financial consultant, and only then make your final decision. 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. Here are the 15 best places to retire in Hawaii:15. Kapolei Insider Monkey Score: 38Cost of Living: 3.5% higher than Hawaii averageLivability Score: 68Median House Price: $692,500Set on the island of Oʻahu, Kapolei is located in Honolulu County. Getting its name from the volcanic cone known as Puʻu o Kapolei, Kapolei is popular for its natural beauty. Retirees can visit Ko Olina, a resort community complete with lagoons and white sand beaches. 14. PrincevilleInsider Monkey Score: 38Cost of Living: 6.7% lower than Hawaii averageLivability Score: 68Median House Price: $1,777,500Known for its master-planned condos and homes, Princeville offers unlimited beauty, including incredible views of the Pacific. A small town, Princeville is one of the best places to retire in Hawaii for retirees with its peaceful environment, beaches, and golf courses, among much more. 13. KaneoheInsider Monkey Score: 39Cost of Living: 3.5% higher than Hawaii averageLivability Score: 72Median House Price: $850,000For retirees who are looking to indulge in the island life without being swamped with an onslaught of tourists, Kaneohe is the perfect spot. Surrounded by the Ko’olau Mountains, Kaneohe experiences a tropical climate throughout the year. Residents can visit the Hoʻomaluhia Botanical Gardens, the Heʻeia State Park, and stock up on retail therapy at Windward Mall. 12. MakawaoInsider Monkey Score: 40Cost of Living: 3.3% lower than Hawaii averageLivability Score: 70Median House Price: $950,000Part of Maui County, Makawao translates to ‘Eye of the Forest’. Historically known for agriculture and ranching, Makawao is among the cheapest places to retire in Hawaii. 11. PukalaniInsider Monkey Score: 41Cost of Living: 3.3% lower than Hawaii averageLivability Score: 65Median House Price: $900,000Another Maui County pick, Pukalani is known for being family friendly and diverse. Retirees from all walks of life will easily fit in and enjoy life at this laid-back destination. With a country club, shopping mall, and a variety of eateries - including the highly-rated Kalei’s Lunchbox - residents will find everything they need nearby. 10. WahiawaInsider Monkey Score: 42Cost of Living: 3.5% higher than Hawaii averageLivability Score: 71Median House Price: $765,000Nestled between volcanic mountains, Wahiawa is set on the island of Oahu. An agricultural place, the area is famed for its pineapples. Residents can explore the Dole Pineapple Pavilion which boasts a range of pineapple varieties and a pineapple garden maze and the Wahiawa Botanical Garden. 9. Pearl CityInsider Monkey Score: 44Cost of Living: 3.5% higher than Hawaii averageLivability Score: 70Median House Price: $829,000One of the best places to retire in Hawaii is Pearl City. The area is best known for being the site of the historic Pearl Harbor. Serene tropical setting, vibrant local culture, and a plethora of recreational activities makes it an ideal retirement destination. 8. WailukuInsider Monkey Score: 47Cost of Living: 3.3% lower than Hawaii averageLivability Score: 77Median House Price: $960,000Set at the mouth of the Lao Valley and very near to the Kahului Airport is Wailuku. A friendly place, senior citizens can bask in the pleasant weather and fill their days with a host of activities that the place has to offer. Among the most popular are the Mystery Maui Escape Room, the Kepaniwai Park, and the Papohaku Park. 7. MililaniInsider Monkey Score: 48Cost of Living: 3.5% higher than Hawaii averageLivability Score: 78Median House Price: $782,500A city in Honolulu County, Mililani offers residents a suburban feel. Known for being a residential community, Mililani is perfect for retirees looking to move for retirement. The place holds a variety of retail options and restaurants, giving senior citizens a healthy mix of outdoor and indoor activities. 6. KahuluiInsider Monkey Score: 48Cost of Living: 3.3% lower than Hawaii averageLivability Score: 72Median House Price: $914,500Home to a deep raft harbor, Maui’s main airport, and an extensive shopping area, Kahului residents can revel in nature without forgoing any amenities. The area’s sandy beaches are known to be excellent surfing spots - and visitors can also get lucky and see wildlife such as turtles. The best part is the cost of living - at 3.3% lower than the Hawaii average. Click to continue reading and see the 5 Best Places to Retire in Hawaii. Suggested Articles: 15 Best Places to Retire If You Have No Savings16 Best Cities for Retirees in the Pacific Northwest20 Best Cities to Retire on a Budget of $1800 a MonthDisclosure: none. 15 Best Places to Retire in Hawaii is originally published on Insider Monkey.

Insider Monkey

15 Best Places To Retire In Hawaii

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1186f132-0589-3c8c-8416-badf45d021ef

QCOM

Alphabet’s Google is aiming to bring back the ability to create images of people with its artificial-intelligence tool Gemini within weeks, according to its AI chief.Continue reading

Barrons.com

Google Fixing Gemini AI Images, Samsung’s Smart Ring, and Other Technology News Today

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038529a1-ba7f-3f94-93fd-fb1e361bc7db

QCOM

Semiconductor designer Qualcomm (QCOM) showcased its latest generation of chips and AI models for mobile devices at the 2024 Mobile World Congress in Barcelona, Spain. Qualcomm CFO and COO Akash Palkhiwala sits down with Yahoo Finance's Brad Smith to discuss the company's artificial intelligence hub and use cases across devices:"You're already seeing the benefit of large language models on data centers. We've seen this show up in the financial performance of some of our peers. I think what's going to happen next is these models are going to be deployed on edge, on devices at large scale, and this includes not just phones but PCs and automotive and IOT [Internet of Things] devices, and that's a tremendous opportunity for Qualcomm, as these models get deployed in these devices. our chips will be at the forefront, making these deployments very easy for developers, for consumers, and bringing some incredible new use cases for the consumers to enjoy."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 Luke Carberry Mogan.Video TranscriptBRAD SMITH: Qualcomm unveiled a new suite of AI 5G and Wi-Fi devices at the Mobile World Congress in Barcelona on Monday. The chip designer is saying its latest innovations will jump start a new era of intelligent computing and consumer experiences.For more on Qualcomm's tech enhancements here, I'm joined by Akash Palkhiwala who is the Qualcomm chief financial officer and chief operating officer. Great to grab some time with you. And thanks for joining us from Barcelona.First and foremost, we got to know when you make some serious announcement like this about an AI hub and some of the other language learning models that are really going to be put forward here by Qualcomm, where does generative AI sit in the pillars of the Qualcomm growth targets that you've set forth?AKASH PALKHIWALA: Yeah. So first of all, thanks for having me. Excited to be here and talk about all the great things we have going on at Qualcomm right now. The AI hub we're particularly excited about, because it is something that addresses all kinds of models as generative models, but simpler AI models as well.Story continuesAnd the idea is there's one simple place that all our developers can go to on the web. And it's something that's accessible from Hugging Face and GitHub as well. And while they go there, they can take any of the models that are available. We have a curating of more than 75 language models that are available on the website.And you could take those models, build it into an application, test it on a device, and deploy it into an application store, all in one go right at the website. So it just makes it very easy for the developers to take advantage of the hardware that we've put forward. And we're excited that this broadens the reach of our products. And it makes it very easy for developers to access them.BRAD SMITH: It's so interesting, because AI chip demand has really been what's propelled so much of the semiconductor industry over this past year. When is LLMs, when our LLMs, the language learning models that really drive these applications, going to have their critical mass moments that companies like yourself at Qualcomm see the benefits of?AKASH PALKHIWALA: I think you're already seeing the benefit of large language models on data centers. We've seen this show up in the financial performance of some of our peers. I think what's going to happen next is, these models are going to be deployed on edge, on devices at large scale. And this includes, not just phones, but PCs, and automotive, and IoT devices.And that's a tremendous opportunity for Qualcomm, as these models get deployed in these devices, our chips will be at the forefront making these deployments very easy for developers, for consumers and bringing some incredible new use cases for the consumers to enjoy.BRAD SMITH: Certainly. So from that mindset and perspective, does it feel like generative AI is really going to supercharge the next smartphone supercycle, perhaps?AKASH PALKHIWALA: Yeah, absolutely. I think if you look at the smartphone market, what happens is every time there is a new technology that comes in, it drives an expansion in the market. And so generative AI, we are seeing tremendous traction across all the major OEMs. All the content companies are looking at how to take advantage of it. And there are several examples of use cases that the consumers, I think, are going to find extremely interesting.So we're excited about what it does to the phone market. We're excited about what it does to several other edge devices that Qualcomm participates in as well.BRAD SMITH: And when you think about those devices, you mentioned phones, will all phones released this year or perhaps next year have some type of AI-enabled chip on them? And what is that pass through as well mean for the revenue and the margins at Qualcomm?AKASH PALKHIWALA: Yeah. So starting earlier this year, we launched our new chip, Snapdragon 8, Gen 3. And this is a chip that has highly integrated, advanced AI capability to run gen AI models.And so as we go through the rest of the year, we're going to see a lot of our customers launch new devices, taking advantage of these capabilities. And that's going to translate into both content market share growth for us. And we're looking forward to it.BRAD SMITH: It's been interesting, especially within the broader AI chip and AI hype phase that we've seen, where it's really just been lighter fluid, not just for the stock market that's really latched on to that as a theme. I wonder what you make of it from your perspective, and where Qualcomm sees itself positioned as part of that.AKASH PALKHIWALA: Yeah. I think we're very much at the center of it. As I said earlier, I think you're seeing a lot of the use cases come through for AI on the cloud side at this point. We're seeing that transition over to the device side over the next year. And Qualcomm's at the center of making that happen.And we're pulling together the ecosystem right across from developers OEMs, content creators. And then we'll be able to bring all that together to have some great use cases for the consumers.BRAD SMITH: And just, lastly, while we have you. We do know that Apple has also said that they're going to, essentially, continue using your 5G modems until 2027. That's an extended timeline here. When you think about that and how that contributes to the bottom line, at least, for that interim period of time here, how does that change, perhaps, the margin profile or even the revenue profile from your perspective?AKASH PALKHIWALA: I think there's a lot of things that Qualcomm does well, but probably at the top of the list is making 5G chips. We're clearly the leader in performance in making those chips. And you're seeing that benefit come through in our relationship with Apple. They're looking for us to supply those chips to them. And we'll continue to maintain the leadership in performance and looking forward to just being a great supplier to them.BRAD SMITH: All right. I had the great privilege of going to Barcelona for the first time last year. You're out there right now. Akash Palkhiwala, thanks so much for taking some time from what I imagine is a great scene over at Mobile World Congress.Thanks so much, Qualcomm chief financial officer and chief operating officer.AKASH PALKHIWALA: Thank you very much. And talk to you soon.BRAD SMITH: All right. Talk soon. Thank you.

Yahoo Finance Video

Qualcomm chips will be 'at forefront' of AI device deployment: CFO

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2b7c60bb-f6ac-3026-b81a-3616cdd1136c

QCOM

If your ultimate investing goal is becoming a millionaire, there's one sector you'll want to overweight within your portfolio: Technology.The tech sector's stocks have a long history of outperforming the overall market. That's because tech companies tend to introduce the world's most revolutionary products and services. Think mobile phones, or high-speed internet, or augmented reality.With that as the backdrop, here's a closer look at three fantastic technology stocks with lots of upside ahead. Each one of these names is not only a leader in its respective arena, but also offers products or services everyone is going to need.1. QualcommWhen most investors think of chip companies, Nvidia and Intel likely are the first ones to come to mind. And understandably so. Nvidia's tech is at the heart of most chip-related products and services. Meanwhile, Intel's processors are still found in most of the world's conventional computers.These aren't the only chipmakers we would struggle to suddenly live without, however. Qualcomm (NASDAQ: QCOM) is in the mix, too, and perhaps even more important to you than Intel or Nvidia.See, Qualcomm makes or owns the rights to a technology that powers just about every mobile phone on the market. One of its core products is its powerful Snapdragon processor, giving your handheld device computing power that nearly rivals that of your laptop or desktop, but at a fraction of the size. It's not just your smartphone's CPU (central processing unit), though. Qualcomm's wares are found inside 5G and Wi-Fi antennas, within audio equipment, onboard smart cars, and even within security cameras, just to name a few. None of it is super-high-profile stuff. What Qualcomm lacks in "wow" factor, however, it more than makes up for in the breadth and depth of its product portfolio. The world's not simply going to stop using its technologies now. It can't.Story continuesThe company is also positioning itself for what could be a massive opportunity. That's the next chapter of the ongoing advent of artificial intelligence (AI).To date, most AI work has been handled by data centers far away from your computer, phone, or even an enterprise-level customer's premises. That's changing, though. This heavy-duty data management effort is increasingly able to be done by the devices at users' fingertips. Qualcomm is leading that charge. As CEO Cristiano Amon explained at the recent annual shareholders' meeting, "We are bringing Gen [generative] AI capabilities to smartphone users worldwide. Our leadership in premium and high-tier Android devices continues with our latest Snapdragon mobile platforms, which now feature significantly enhanced AI processing performance."It remains to be seen exactly what this will mean; plenty of people are still searching for practical uses of this tech. Qualcomm is prepared for whatever future may be in store, however.2. Palantir TechnologiesWhile some companies -- and many people -- may still not see much need for AI solutions, don't be too quick to jump to this same conclusion. In many cases, enterprises simply need to be shown how AI can make a positive impact on their business's bottom line.Enter Palantir Technologies (NYSE: PLTR).In simplest terms, Palantir turns artificial intelligence into a valuable, practical tool. For instance, the company's platform helps biopharma companies design and better manage clinical drug trials, allows energy companies to optimize their operational assets, and even helps retailers forecast specific inventory needs.Perhaps Palantir Technologies' bread and butter, however, is its ability to serve government agencies, and the military in particular. Its Gotham software enables front-line soldiers to be more effective by giving them better information about their opponents, for example. Just this week the company announced it's been awarded a $178 million contract by the U.S. Army's Contracting Command to provide a total of 10 TITAN (Tactical Intelligence Targeting Access Node) ground station systems. TITAN systems provide actionable targeting information for long-range precision fires.This is just a taste of what's in the cards. The analyst community is calling for top-line growth of nearly 22% this year as more prospects better understand what Palantir can do, and become paying customers as a result. Next year's revenue is projected to grow another 19%. And even beyond that point, there's reason to remain optimistic. Precedence Research suggests the AI software market alone is on pace to grow at an average annualized pace of 23% through 2032.3. MicrosoftFinally, add software giant Microsoft (NASDAQ: MSFT) to your list of potential millionaire-maker stocks.OK, there's no denying Microsoft's massive size makes it difficult for the company to log massive growth rates now. Much of next year's projected revenue growth of 14% reflects a reacceleration from this year's expected relatively slow sales growth of only 6%. Anything above 10% is actually pretty good here.Where Microsoft really shines is with its bottom line. This business scales up very nicely -- even if a bit inconsistently -- widening profit margin rates as it does.MSFT Revenue (TTM) ChartCredit the nature of its business. Once the code for software is written, its core cost is incurred. Sales of that software then end up mostly being turned into gross profit. The business model itself works to its advantage as well. Much of Microsoft's software is now rented rather than outright purchased, generating reliable recurring revenue.More than anything, though, Microsoft is just good at doing several things, each of which makes its digital ecosystem easier to wade into. GlobalStats says its Windows operating system is installed on more than two-thirds of the world's computers, for example, while its Office productivity apps work seamlessly with Windows. Its Bing search engine is now more than a mere search engine, too. It's become a full-blown AI assistant, incorporating tech from ChatGPT into a platform called Copilot, bringing revenue-bearing traffic to the site. Its cloud computing arm is now growing faster than Amazon Web Services largely because its interface offers all the tools a corporate customer might want, yet it's also simple to use.Is it the fastest-growing tech stock you can buy? No. But it's one of the most consistent technology companies, and there's never going to be a time when the world won't need what Microsoft brings to the table.Where to invest $1,000 right nowWhen our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for two decades, Motley Fool Stock Advisor, has more than tripled the market.*They just revealed what they believe are the 10 best stocks for investors to buy right now… and Microsoft made the list -- but there are 9 other stocks you may be overlooking.See the 10 stocks*Stock Advisor returns as of March 8, 2024John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Microsoft, Nvidia, Palantir Technologies, and Qualcomm. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short May 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.3 Millionaire-Maker Technology Stocks Worth a Closer Look was originally published by The Motley Fool

Motley Fool

3 Millionaire-Maker Technology Stocks Worth a Closer Look

https://finance.yahoo.com/news/3-millionaire-maker-technology-stocks-114000557.html

1eca892e-7afc-3b8b-8a0c-e7460d14f7d0

QCOM

Apple’s (AAPL) MacBook Air is one of the best laptops on the market. From its stylish design to its powerful performance and long-lasting battery, it’s hard to top what Apple has to offer. Well, except if you’re looking for a Windows laptop.But if you’re an Apple fan, or are curious about switching to the other side, the MacBook Air is, generally, the way to go. And that’s no different with the company’s newest 15-inch variety. After spending a few days with the 2024 MacBook Air 15-inch, I can say it’s better than ever. But it still has one nagging downside: a lack of connectivity ports on its right side.Available March 8, the latest Air lineup gets a processor bump from Apple’s M2 processor to the newer M3. The smaller 13-inch model starts at $1,099, while the 15-inch starts at $1,299.Both are available in a midnight color that features the same anodized seal that helps cut down on fingerprint smudges, something I wish my 2023 15-inch midnight MacBook Air had. I know it’s not that big of a deal, but when you’re spending north of $1,000 on something you touch every day, you want it to keep looking as clean as the day you bought it.My review unit came equipped with Apple’s 8-core CPU, 10-core GPU M3 chip, 16GB of memory, and 512GB of storage for $1,699. And if you’re in the market for the 15-inch Air, that’s the exact configuration I’d recommend you buy. It’ll get you enough performance to last a long time thanks to its 16GB of memory, and 512GB of storage should be enough for a game here and there, as well as your photos and videos.Apple's M3-powered MacBook Air offers strong performance and exceptional battery life. (Apple) (Apple)If you want to go all out, though, you can boost the memory to 24GB and storage to 2TB for $2,499. That said, for the same price, you could get a 16-inch MacBook Pro with a more powerful M3 Pro chip, 18GB of memory, and 512GB of storage.If you want to do some basic photo and video editing and light gaming, stick with the Air. But if you’re interested in heavy-duty photo and video work, gaming, and working on 3D modeling software, the Pro is the way to go.Story continuesAs far as overall performance goes, Apple says the latest Air outpaces last year’s model with 20% faster CPU performance than the M2 Air and 35% better performance than the M1-equipped model. Graphics also get a boost, with the M3 Air beating out the M2 and M1 models with 20% and 65% better performance, respectively.I’m writing this review with the M3-powered Air, and I haven’t seen any slowdown or hiccups. It opens apps quickly, springs to life when I lift the lid, and manages to run the game “Baldur’s Gate 3” relatively well on low to medium graphics settings. It doesn’t look as good as it would on, say, a dedicated gaming desktop or console, but if you’re looking to toss fireballs at goblins on the go, the Air will get the job done.The latest MacBook Airs also now support two external displays when you close their lids. So if you want to just use your Air as more or less a computing box and work off of those separate screens and a bluetooth keyboard and bluetooth mouse, you can do just that. Disconnect your Air from the setup and you can get going with ease.The latest MacBook Air is available with either a 13-inch or 15-inch display. (Apple) (Apple)Battery life is as fantastic as you’d expect from an Air running on one of Apple’s chips. The company says it managed to ring out 18 hours of battery life from the Air while playing back 1080p video via iTunes. I’ve used this review unit to write, browse the web, check out some video games, and more, and the battery never touched the red line.Of course, I kept recharging it every time I sat down at my makeshift workstation in my apartment’s kitchen/living room/dining room area, but when I did take it for a spin to another room, I never felt the need to bring a charger with me.One of the things that stands out about the M3-powered MacBook Air is the way Apple is positioning it as an AI machine. The company refers to the Air as the “world’s best consumer laptop for AI,” thanks to the M3’s built-in neural engine. It’s important to note that Apple has included neural engines in its chips for quite some time already, so the neural engine in the M3 isn’t exactly some kind of new development.Subscribe to the Yahoo Finance Tech newsletter. (Yahoo Finance)It’s more that by highlighting it, Apple is telling the world that it’s been building AI-capable laptops, desktops, and smartphones for years, while Windows laptops are only just beginning to embrace AI via Microsoft’s (MSFT) Copilot and AI-enabled chips from Intel (INTC), AMD (AMD), and Qualcomm (QCOM) on or coming to market this year.My only real critique of the MacBook Air is that it only has two Thunderbolt 4 ports on its left side. It seems like a minor complaint, but having the ports, which are compatible with rounded USB-C connectors, on only one side can make cable management difficult, especially if you’re used to having a connector on your system’s right side. I had to rearrange my home setup to get comfortable with my review unit, for instance.Overall, Apple’s latest MacBook Air builds on the success of its prior offerings and continues to carry the torch as one of the best laptops you can buy. If you’ve already got an M1 or M2-powered Air, you’re fine holding on to your unit for a while longer. If you’re still working with an Intel-based Air, though, it’s time to ditch that dinosaur for an Air with one of Apple’s chips.It’s worth keeping in mind that Apple is continuing to offer last year’s 13-inch MacBook Air with an M2 chip at a starting price of $999. You don’t get the slick fingerprint-reducing paint job or the ability to use two external monitors, but it’s still a fantastic laptop.If you’d rather grab an M3-powered MacBook Air, though, you won’t be disappointed.Daniel Howley is the tech editor at Yahoo Finance. He's been covering the tech industry since 2011. You can follow him on Twitter @DanielHowley.Click here for the latest technology news that will impact the stock market.Read the latest financial and business news from Yahoo Finance

Yahoo Finance

Apple MacBook Air 2024 review: The best keeps getting better

https://finance.yahoo.com/news/apple-macbook-air-2024-review-the-best-keeps-getting-better-150017212.html

813f7149-9be4-42b3-abbc-afc0afc4d903

QRVO

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.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.Qorvo (QRVO)Qorvo Inc. is a leading provider of core technologies and radio frequency (RF) solutions for mobile, infrastructure and aerospace/defense applications.QRVO is a Zacks Rank #2 (Buy) stock, with a Momentum Style Score of B and VGM Score of A. Shares are up 2.9% over the past one week and up 10.2% over the past four weeks. QRVO has gained 5% in the last one-year period as well. Looking at trading volume, an average of 1,660,568.75 shares exchanged hands over the last 20 trading days.A company's earnings performance is important for momentum investors as well. For fiscal 2024, eight analysts revised their earnings estimate higher in the last 60 days for QRVO, while the Zacks Consensus Estimate has increased $0.40 to $6.03 per share. QRVO also boasts an average earnings surprise of 76.4%.QRVO should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong 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 reportStory continuesQorvo, Inc. (QRVO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why This 1 Momentum Stock Could Be a Great Addition to Your Portfolio

https://finance.yahoo.com/news/why-1-momentum-stock-could-145006596.html

8fad1164-7f7a-367b-a2db-152461043f41

QRVO

In this article, we will be looking at the 25 most valuable semiconductor companies in the world. If you want to skip our detailed analysis of the global semiconductor industry, you can go directly to the 5 Most Valuable Semiconductor Companies in the World.Semiconductor Industry: Key InsightsAccording to a report by Deloitte, 2023 was a tumultuous year for the semiconductor industry as it experienced sales declining by 9.4% to $520 billion. This was the seventh downturn the industry went through since 1990. The situation was expected to be much worse, however, many semiconductor companies had stronger second and third quarters. 2024 is anticipated to be a better year with global sales predicted to reach $588 billion and surpass the record revenues of 2022, $574 billion.The memory chip market had the worst drop in sales in 2023, 31%. It was the most significantly impacted segment of the semiconductor industry. The rest of the industry only went through a steady 3% decline in sales in 2023. In end markets, PC and smartphone sales are expected to grow by 4% in 2024 after going through a downward slump in 2023. Communication and computer chip sales, including data center chips, remain crucial, constituting 56% of overall semiconductor sales in 2022. High inventory levels and declining fab utilization pose challenges for the industry. Inventory levels remained high at over $60 billion in fall 2023. Fab utilization also remained high during the recent shortage.Major Players In The Semiconductor IndustryNVIDIA Corp (NASDAQ:NVDA), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSMC), and Broadcom Inc. (NASDAQ:AVGO) are some of the most prominent names in the semiconductor industry.NVIDIA Corporation (NASDAQ: NVDA) is an American semiconductor company. NVIDIA Corporation (NASDAQ: NVDA) is based in Santa Clara, California. It is a leading provider of graphics processing units and application programming interfaces. On February 6, the company announced a partnership with Cisco Systems Inc (NASDAQ:CSCO). The partnership aims to provide AI infrastructure solutions for data centers by equipping enterprises with the computing power necessary for success in the AI era. Cisco's networking expertise and NVIDIA's GPU technology combined would enable them to deliver secure and scalable Ethernet-based infrastructure.Story continuesTaiwan Semiconductor Manufacturing Company Limited (NYSE:TSMC) is a Taiwan-based semiconductor company founded in 1987. The company is also a notable supplier of artificial intelligence hardware and software. On February 6, the company announced further investment in Japan Advanced Semiconductor Manufacturing, Inc. (JASM). Sony Semiconductor Solutions Corporation (SSS), DENSO Corporation, and Toyota Motor Corporation are also investing in JASM. JASM is Taiwan Semiconductor Manufacturing Company Limited's (NYSE:TSMC) majority-owned manufacturing subsidiary in Kumamoto Prefecture, Japan, which aims to build a second fab, scheduled to start operations by the end of 2027. The investment is expected to create over 3,400 high-tech professional jobs.Broadcom Inc. (NASDAQ:AVGO) is a notable semiconductor company headquartered in San Jose, California. The company designs, develops, and supplies semiconductor and infrastructure software solutions. On December 7, 2023, Broadcom Inc. (NASDAQ:AVGO) reported earnings for the fiscal fourth quarter of 2023. The company reported an EPS of $11.06, beating estimates by $0.1. The company's revenue for the quarter grew by 4.09% and amounted to $9.3 billion, ahead of market consensus by $18.97 million. As of February 15, the company has surged nearly 50.56% over the past six months. Here are some comments from the company's earnings call:"In our fiscal Q4 2023, consolidated net revenue was $9.3 billion, up 4% year-on-year and very much as we had guided at the last conference call. Semiconductor solutions revenue increased 3% year-on-year to $7.3 billion, and infrastructure software revenue grew 7% year-on-year to $2 billion. Overall, while infrastructure software remains very stable, semiconductor is continuing the cyclical slowdown at enterprises and telcos that we have been seeing over the past six months. However, hyperscalers remain strong. Generative AI revenue, driven by Ethernet solutions and custom AI accelerators, represented close to $1.5 billion in Q4 or 20% of semiconductor revenue, while the rest of the semiconductor revenue continued to be rather stable at around $6 billion."The semiconductor industry is a booming industry with prominent companies competing to meet to growing demand. We have made a list of the most valuable semiconductor companies in the world.25 Most Valuable Semiconductor Companies In The World25 Most Valuable Semiconductor Companies In The WorldOur Methodology To make our list of the most valuable semiconductor companies in the world, we went over several sources including industry reports, our own rankings, and multiple similar rankings. We also scanned the Finviz and Yahoo Finance stock screeners. For public companies, we checked each company's market capitalization, as of February 15, 2024, on Yahoo Finance. The market caps for foreign companies were converted to US dollars based on the exchange rates of the respective country. To quantify the "value" or "size" of private companies, we selected either the estimated valuation, or the annual revenue available for the most recent fiscal year, or the number of employees, subject to availability of data. The estimated valuation was sourced from major media reports based on the private companies' latest funding round. The annual revenue or number of employees was sourced from official statements by the company and the company's website. Since no private company made it to our list, we have ranked the most valuable semiconductor companies in the world in ascending order of their market capitalization, as of February 15.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 Most Valuable Semiconductor Companies In The World25. Cirrus Logic Inc. (NASDAQ:CRUS)Market Cap as of February 15: $4.89 BillionCirrus Logic Inc. (NASDAQ:CRUS) is a fabless semiconductor company. Cirrus Logic Inc. (NASDAQ:CRUS) specializes in low-power, high-precision mixed-signal processing solutions. The company also develops a range of audio products, including codec components, smart codecs, and boosted amplifiers.24. Allegro MicroSystems Inc (NASDAQ:ALGM)Market Cap as of February 15: $6.03 BillionAllegro MicroSystems Inc. (NASDAQ:ALGM) is a company that specializes in the development and manufacture of sensor integrated circuits. Allegro MicroSystems Inc. (NASDAQ:ALGM) was founded on March 30, 2013, and is headquartered in Manchester.23. Rambus Inc (NASDAQ:RMBS)Market Cap as of February 15: $6.13 BillionRambus Inc. (NASDAQ:RMBS) is a semiconductor company that produces industry-leading chips and silicon IP. The company was incorporated in 1990 and is headquartered in San Jose. As of February 15, the market cap of Rambus Inc. (NASDAQ:RMBS) is $6.13 billion.22. MACOM Technology Solutions Holdings Inc (NASDAQ:MTSI)Market Cap as of February 15: $6.19 BillionMACOM Technology Solutions Holdings Inc. (NASDAQ:MTSI) designs, develops, and manufactures semiconductors and modules with a focus on serving data centers, and telecommunication. MACOM Technology Solutions Holdings Inc. (NASDAQ:MTSI) was founded on March 25, 2009 and is headquartered in Lowell.21. Lattice Semiconductor Corp (NASDAQ:LSCC)Market Cap as of February 15: $10.53 BillionLattice Semiconductor Corp (NASDAQ:LSCC) is a company that designs, develops, and markets programmable logic products and related software. The company was founded in 1983 and is headquartered in Hillsboro. Lattice Semiconductor Corp (NASDAQ:LSCC) has a market cap of $10.53 billion, as of February 15.20. Qorvo Inc (NASDAQ:QRVO)Market Cap as of February 15: $10.97 BillionQorvo Inc. (NASDAQ:QRVO) is a semiconductor company that provides RF and power semiconductor solutions Qorvo Inc. (NASDAQ:QRVO) is one of the most valuable semiconductor companies in the world.19. Skyworks Solutions Inc (NASDAQ:SWKS)Market Cap as of February 15: $16.96 BillionSkyworks Solutions Inc. (NASDAQ:SWKS) is a semiconductor company that designs, develops, and manufactures proprietary semiconductor products. Skyworks Solutions Inc. (NASDAQ: SWKS) was founded in 1962 and is headquartered in Irvine.18. United Microelectronics Corp (NYSE:UMC)Market Cap as of February 15: $19.83 BillionUnited Microelectronics Corp (NYSE:UMC) is one of the most valuable semiconductor companies in the world. The company is based in Hsinchu, Taiwan. United Microelectronics Corp (NYSE:UMC) was founded in 1980.17. Globalfoundries Inc (NASDAQ:GFS)Market Cap as of February 15: $30.41 BillionGlobalFoundries Inc. (NASDAQ:GFS) is a multinational semiconductor contract manufacturing and design company. GlobalFoundries Inc. (NASDAQ:GFS) manufactures integrated circuits on wafers designed for various markets, including smartphones and automobiles.16. ON Semiconductor Corporation (NASDAQ:ON)Market Cap as of February 15: $34.90 BillionON Semiconductor Corporation (NASDAQ:ON) is an American semiconductor supplier company based in Scottsdale, Arizona. ON Semiconductor Corporation (NASDAQ:ON) was founded in 1999 and is a leading semiconductor manufacturer. The company provides power and signal management, logic, discrete, and custom devices for various applications.15. Monolithic Power Systems Inc (NASDAQ:MPWR)Market Cap as of February 15: $35.79 BillionMonolithic Power Systems Inc. (NASDAQ:MPWR) is a global company that manufactures and designs semiconductor-based power electronics solutions. Monolithic Power Systems Inc. (NASDAQ:MPWR) is headquartered in Kirkland, Washington.14. STMicroelectronics NV (NYSE:STM)Market Cap as of February 15: $40.57 BillionSTMicroelectronics NV (NYSE:STM) is a multinational semiconductor company. The company is headquartered in Plan-Les-Ouates, Switzerland, and offers a variety of semiconductor products including silicon chips and smartcards. As of February 15, the market cap of STMicroelectronics NV (NYSE:STM) is $40.57 billion.13. Microchip Technology Inc (NASDAQ:MCHP)Market Cap as of February 15: $43.54 BillionMicrochip Technology Incorporated (NASDAQ:MCHP) is an American semiconductor company that manufactures a variety of products including ICs. Microchip Technology Incorporated (NASDAQ:MCHP) was founded in 1989 and is headquartered in Chandler, Arizona.12. Marvell Technology Inc (NASDAQ:MRVL)Market Cap as of February 15: $59.62 BillionMarvell Technology Inc (NASDAQ: MRVL) is a leading semiconductor company that provides essential technology required for a variety of technologies including 5G networks and automotive innovation. Marvell Technology Inc (NASDAQ: MRVL) is one of the most valuable semiconductor companies in the world.11. NXP Semiconductors NV (NASDAQ:NXPI)Market Cap as of February 15: $60.31 BillionNXP Semiconductors NV (NASDAQ:NXPI) is a Dutch semiconductor company that designs and manufactures semiconductors including integrated circuits, power modules, and switches. NXP Semiconductors NV (NASDAQ:NXPI) is headquartered in Eindhoven, Netherlands.10. Micron Technology Inc (NASDAQ:MU)Market Cap as of February 15: $90.33 BillionMicron Technology Inc (NASDAQ:MU) is one of the leading semiconductor companies that designs and manufactures a variety of products including dynamic random access memory chips (DRAMs). Micron Technology Inc (NASDAQ:MU) was founded on October 5, 1978, and is headquartered in Boise, Idaho.9. Analog Devices Inc. (NASDAQ:ADI)Market Cap as of February 15: $92.39 BillionAnalog Devices Inc. (NASDAQ:ADI) is an American multinational semiconductor company. As of February 15, the company has a market cap of $92.39 billion. Analog Devices Inc. (NASDAQ:ADI) is headquartered in Wilmington, Massachusetts. The company specializes in data conversion, signal processing, and power management technology.8. Arm Holdings PLC - ADR (NASDAQ:ARM)Market Cap as of February 15: $129.95 BillionArm Holdings plc (NASDAQ:ARM) is a British semiconductor and software company that designs central processing unit (CPU) cores. It is one of the most valuable semiconductor companies in the world.7. Texas Instruments Inc (NASDAQ:TXN)Market Cap as of February 15: $143.55 BillionTexas Instruments Inc (NASDAQ:TXN) is an American technology company. Texas Instruments Inc (NASDAQ:TXN) is headquartered in Dallas, Texas. It designs and manufactures semiconductors, analog chips, and embedded processors6. Qualcomm Inc (NASDAQ:QCOM)Market Cap as of February 15: $171.80 BillionQualcomm Inc (NASDAQ:QCOM) is an American multinational corporation headquartered in San Diego, California. As of February 15, Qualcomm Inc (NASDAQ:QCOM) has a market cap of $171.80 billion. The company creates semiconductors, software, and services related to wireless technology.Click to continue reading and see the 5 Most Valuable Semiconductor Companies in the World.Suggested Articles:14 Best US Stocks For Foreign Investors17 Fastest Growing Cities in the US11 Best Logistics Stocks to BuyDisclosure: None. 25 Most Valuable Semiconductor Companies in the World is originally published on Insider Monkey.

Insider Monkey

25 Most Valuable Semiconductor Companies In The World

https://finance.yahoo.com/news/25-most-valuable-semiconductor-companies-190934111.html

492882b1-a906-3e66-b5a1-b4b601db3032

QRVO

Nvidia and Super Micro hit new highs as fellow AI play Palantir surged into a buy area. But bullish sentiment is getting extreme.Continue reading

Investor's Business Daily

Dow Jones Futures Rise: Palantir Soars Into Buy Zone, Nvidia Runs, But Beware This

https://finance.yahoo.com/m/5a96fdb9-e90a-370d-ac1b-83217a553823/dow-jones-futures-rise-.html

5a96fdb9-e90a-370d-ac1b-83217a553823

QRVO

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.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.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.Qorvo (QRVO)Qorvo Inc. is a leading provider of core technologies and radio frequency (RF) solutions for mobile, infrastructure and aerospace/defense applications.QRVO is a Zacks Rank #3 (Hold) stock, with a Momentum Style Score of B and VGM Score of A. Shares are down 3% over the past one week and up 3.3% over the past four weeks. QRVO has gained 21.8% in the last one-year period as well. Looking at trading volume, an average of 1,027,962.88 shares exchanged hands over the last 20 trading days.Momentum investors don't just pay attention to price changes; positive earnings play a crucial role, too. Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.40 to $6.03 per share. QRVO boasts an average earnings surprise of 76.4%.With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding QRVO 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 reportQorvo, Inc. (QRVO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

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

https://finance.yahoo.com/news/momentum-investor-1-stock-could-135011237.html

a9858c78-4bd8-3dab-a7a2-465741718c4c

RCL

Investors looking for stocks in the Leisure and Recreation Services sector might want to consider either Royal Caribbean (RCL) or Vail Resorts (MTN). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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, Royal Caribbean has a Zacks Rank of #1 (Strong Buy), while Vail Resorts has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that RCL is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.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.RCL currently has a forward P/E ratio of 12.37, while MTN has a forward P/E of 26.25. We also note that RCL has a PEG ratio of 0.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MTN currently has a PEG ratio of 1.84.Another notable valuation metric for RCL is its P/B ratio of 6.38. 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, MTN has a P/B of 9.61.Story continuesBased on these metrics and many more, RCL holds a Value grade of B, while MTN has a Value grade of C.RCL has seen stronger estimate revision activity and sports more attractive valuation metrics than MTN, so it seems like value investors will conclude that RCL is the superior 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 reportRoyal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis ReportVail Resorts, Inc. (MTN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

RCL vs. MTN: Which Stock Should Value Investors Buy Now?

https://finance.yahoo.com/news/rcl-vs-mtn-stock-value-164013449.html

24b792cc-5c39-32c2-8f3f-5b126c3baa8b

RCL

With the pandemic behind us and fears of a recession starting to subside, Wall Street expects a big year as the consumer remains resilient, particularly in the travel industry. As the travel sector saw a boom in 2023, many investors look for ways to add great travel plays into their portfolios.As part of Yahoo Finance's Travel Guide 2024: Industry Insights special this week, Yahoo Finance Anchor Bradley Smith breaks down the travel stocks investors need to watch: Delta Air Lines (DAL), Marriott Hotels & Resorts (MAR), and Royal Caribbean Cruises (RCL).Catch more of Yahoo Finance's Travel Guide 2024: Industry Insights special coverage this week, or watch this full episode of Yahoo Finance Live here.Editor's note: This article was written by Nicholas JacobinoVideo TranscriptBRAD SMITH: It's been a few years since COVID upended the global travel sector. The world is now largely vaccinated, the recession we were all hoping to avoid didn't happen, and the consumer is still spending. Oh, and the Fed is about to cut rates. So it looks like we're poised for another huge year. Well, maybe. But there are more than a few headwinds to contend with. Not to mention trends that could reshape the way that you think about your next vacation.Is Delta the airline best positioned to hold market share? Are cruise lines about to hike prices on a stream of never ending demand? Is astrotourism really the next big hit for 2024? And should you really drive your Tesla from LA to San Francisco? Yahoo Finance's Travel Guide 2024, Industry Insights puts you at the center of the story, looking at planes, trains, automobiles, and any other form of transport you can think of.We're diving deep into the travel sector as a part of Yahoo Finance's Travel Guide 2024, Industry Insights. Now, for investors looking to the best way to play the travel sector, I've got three stocks for you to watch as we gear up for those peak travel seasons. First, let's talk a little airlines. Let's go to the skies with the steel birds. It's got to be Delta here. Delta is really focused here on international.Story continuesAnd that's one of the themes that could really play out here and benefit them. You think back to why Citi has this as one of their 2024 stock picks for the year here. Well, it comes back to that international travel demand here. And from Ed Bastian, the CEO of Delta, what he's told us in the most recent earnings is what we see in our whole bookings is really more of the same that we've been seeing all year, international bookings and demand looks really strong.That's what he told Yahoo Finance after they reported their most recent quarterly earnings. He also went on to say, so I think we're looking at a very, very strong Q3 as indicated by their guidance. And we'll have a strong Q4 as well. And so that is one of the kind of broader lookouts into deep in this year where international travel could play a role.Now, let's also talk about Marriott. Let's go to the accommodation space. This one is going to be in focus and why? Well, it's one of the top picks among analysts who are looking across the accommodations in the hotel industry across the Street here. And it has outperformed many of its industry competitors here. But one huge theme to zero in on for Marriott is going to be that rebound in corporate travel that we've been continuing to talk about.With the number of events that are set to be hosted and bookings that come along with those events, Marriott is seen as one of the outstanding participants or performers within that market here, especially as compared to some of its other peers here as well, even though one of the others also having a good year-to-date. That's Hyatt. So keep close tabs on them. They're up by about 15%.And lastly, let's go to the high seas here, if you will, where you'll find perhaps Captain Jack Sparrow and a few of his other friends. Let's go to the Caribbean, Caribbean, whatever you're calling it. Royal Caribbean ticker symbol RCL, that is really having a focus on these new fleets. And that could potentially pull forward some bookings here.And so if you think back to the earnings call that this company just had, they expect to grow capacity by the introduction of the Utopia of the Seas and Silver Ray in the first full year of service of the three incredible ships that joined their fleet during 2023. "The Icon of the Seas, Celebrity Ascent and Silver Nova, the new ships not only elevate their vacation experiences," they said, "and draw new customers to their brands, but they also provide yield tailwinds," they said on the call, "enhancing overall profitability."And in 2024, they expect yields to grow 5 and 1/4% to 7.25% driven by the performance of their entire fleet. So hoo, that is all that we're going to be tracking at least in these three stocks here, and we'll see how those themes play out for Marriott, Delta, and Royal Caribbean.

Yahoo Finance Video

Three big travel stocks to watch in 2024

https://finance.yahoo.com/video/three-big-travel-stocks-watch-170802963.html

865639fe-9697-399e-9de5-f200dabb0c22

RCL

Ariel Investments, an investment management company, released its “Ariel Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. Global markets in 2023 outperformed expectations, led by large-cap tech stocks known as the "magnificent seven." Improving inflation data and dovish comments from the Fed drove a strong finish to the year. Ariel Fund rose +13.41% in the fourth quarter, in line with the +13.35% of the Russell 2500 Index, but short of the +13.76% of the Russell 2500 Value Index. Over the past year, Ariel Fund increased by +15.81%, slightly below the +15.98% of the Russell 2500 Value Index and behind the +17.42% gain of the Russell 2500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.Ariel Fund featured stocks like Royal Caribbean Cruises Ltd. (NYSE:RCL) in the fourth quarter 2023 investor letter. Headquartered in Miami, Florida, Royal Caribbean Cruises Ltd. (NYSE:RCL) is a cruise company. On March 8, 2024, Royal Caribbean Cruises Ltd. (NYSE:RCL) stock closed at $127.47 per share. One-month return of Royal Caribbean Cruises Ltd. (NYSE:RCL) was 8.93%, and its shares gained 98.52% of their value over the last 52 weeks. Royal Caribbean Cruises Ltd. (NYSE:RCL) has a market capitalization of $32.715 billion.Ariel Fund stated the following regarding Royal Caribbean Cruises Ltd. (NYSE:RCL) in its fourth quarter 2023 investor letter:"Some holdings in the portfolio advanced considerably this quarter. Global cruise vacation company, Royal Caribbean Cruises Ltd. (NYSE:RCL), advanced on another quarterly earnings beat and subsequent raise in full-year guidance driven by stronger than anticipated consumer demand and solid cost containment. The company continues to experience solid momentum in onboard spend, while 2024 booking trends are significantly ahead of historical ranges at higher pricing. We believe the resiliency of the core cruise consumer in combination with management’s superior operational expertise and revised earnings outlook lays the foundation for RCL to exceed its three-year strategic imperative, the Trifecta Program."Story continuesAn aerial view of a luxurious cruise ship, surrounded by the blue horizon.Royal Caribbean Cruises Ltd. (NYSE:RCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Royal Caribbean Cruises Ltd. (NYSE:RCL) was held by 54 hedge fund portfolios, up from 41 in the previous quarter, according to our database.We discussed Royal Caribbean Cruises Ltd. (NYSE:RCL) in another article and shared the list of best cruise stocks to buy. 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:15 Most Honest Cities in the World12 Fastest Declining Cities in Florida20 Highest Paying Countries for Civil EngineersDisclosure: None. This article is originally published at Insider Monkey.

Insider Monkey

Reasons for the Outperformance of Royal Caribbean Cruises Ltd. (RCL)

https://finance.yahoo.com/news/reasons-outperformance-royal-caribbean-cruises-102446389.html

cf68a94b-b5f0-35b9-94c0-577386de3aa1

RCL

In this article, we will be covering the 20 largest travel companies in the world. If you want to skip our detailed analysis of the travel and tourism industry, you can go directly to 5 Largest Travel Companies In The World.The travel and tourism sector plays a vital role in global economies. It creates jobs, fosters cultural exchange, and supports local businesses. It promotes understanding between nations while also contributing significantly to GDP growth. According to the World Travel & Tourism Council (WTTC), travel and tourism accounted for 7.6% of global GDP in 2022 while also creating 22 million new jobs around the world.An Analysis of the Global Travel and Tourism IndustryThe travel and tourism sector plays a crucial role in addressing societal and economic challenges. The industry is now thriving after being severely impacted during the peak of the COVID-19 crisis, which led to travel restrictions, cancellations, and a sharp decline in tourism activities. According to a report by Market Research Future, the global travel and tourism market reached a value of $648.03 billion in 2023. The market is expected to grow at a compound annual growth rate (CAGR) of 5.8% from 2023 to 2032 and reach a value of more than $1.01 trillion by the end of the forecasted period. The North American region leads the global travel and tourism market, while Europe follows as the second-largest market. The Asia-Pacific region is anticipated to exhibit the fastest growth in the industry during the forecasted period.The travel and tourism market is undergoing a digital transformation with online booking platforms, travel agencies, mobile apps, and online travel-related services driving growth by enhancing connectivity and providing convenient and personalized traveler experiences. The trend of cultural and experiential tourism, with travelers seeking authentic, immersive experiences, unique destinations, and local experiences, is also a key factor driving market growth. Moreover, the rise in disposable incomes, especially in emerging markets, is leading to increased tourism. More people have the means to explore domestic and international destinations. According to the World Travel & Tourism Council (WTTC), domestic visitor spending saw an increase of 20.4% in 2022. On the other hand, international visitor spending went up by 81.9% in 2022.Story continuesWhat are Some of the Biggest Companies in the Travel and Tourism Industry Up To?Prominent companies in the travel and tourism industry are actively pursuing various strategies to expand their global presence and increase their profitability. Some of the most notable names are Marriott International Inc. (NYSE:MAR), Hilton Worldwide Holdings Inc. (NYSE:HLT), and Booking Holdings Inc. (NASDAQ:BKNG).Booking Holdings Inc. (NASDAQ:BKNG) is one of the world’s largest providers of online travel and related services. It provides online travel services in more than 220 countries through its brands which include Booking.com, Priceline, Agoda, KAYAK, and OpenTable. Booking Holdings Inc. (NASDAQ:BKNG) is also one of the best travel stocks to buy. On February 22, Booking Holdings Inc. (NASDAQ:BKNG) reported strong earnings for the fiscal fourth quarter of 2023. The company reported earnings per share (EPS) of $32, surpassing EPS estimates by $1.95. The company’s revenue for the quarter grew by 18.15% year-over-year and amounted to $4.78 billion, ahead of market consensus by $73.37 million. Here are some comments from Booking Holdings Inc.’s (NASDAQ:BKNG) Q4 2023 earnings call:“As we look to the year ahead, we see strong growth on the books for travel that’s scheduled to take place in 2024, which gives early indications of potentially another record summer travel season. As we’ve noted previously, a high percentage of these bookings are capable and what is on the books today for the summer period represents a small percentage of the total bookings that we expect to ultimately receive. David will provide further details on fourth quarter results and on our thoughts about the first quarter and full year 2024. Looking back at the full year of 2023, I am proud of our efforts to drive more benefits to our travelers and supply partners while also delivering record-setting industry-leading financial results. We reached a significant milestone last year with our customers’ booking an all-time high of over 1 billion room nights on our platform, which was an increase of 17% versus 2022.”As the demand for travel and tourism continues to grow, companies operating in this space are launching new products, engaging in mergers and acquisitions, increasing investments, and forming contracts and collaborations. Marriott International Inc. (NYSE:MAR) is an American multinational hospitality company. It operates and franchises hotels and licenses vacation ownership resorts in more than 130 countries around the world. On March 7, Marriott International Inc. (NYSE:MAR) announced that it has entered into an agreement with Victoria Park Hotels Ltd. to launch The Park Lane Hong Kong, Autograph Collection. This new addition is set to become part of Autograph Collection Hotels by early 2025. Autograph Collection Hotels’ portfolio includes more than 300 independent properties in some of the most desirable locations around the world. Situated within a 28-story mixed-use complex featuring retail spaces on the lower floors, the new hotel is projected to have 820 guest rooms, an executive lounge, 3 unique dining venues, extensive event spaces spanning over 1,700 square meters, and various recreational facilities. Some of the guest rooms will boast stunning views of Victoria Harbour, while others will overlook the city or Victoria Park in Hong Kong.On February 7, Hilton Worldwide Holdings Inc. (NYSE:HLT) announced an exclusive strategic partnership with Small Luxury Hotels of the World (SLH) that will introduce guests of Hilton Worldwide Holdings Inc. (NYSE:HLT) to a wide range of hotels in some of the most popular destinations around the world. This collaboration will significantly enhance Hilton Worldwide Holdings Inc.’s (NYSE:HLT) luxury offerings as unique SLH properties become part of the esteemed Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, and LXR Hotels & Resorts brands.Now that we have discussed what’s going on in the global travel and tourism industry, let’s take a look at the 20 largest travel companies in the world.20 Largest Travel Companies In The WorldA line of travellers queuing for a commercial flight, emphasizing the airport management operations.MethodologyIn this article, we have listed the 20 largest travel companies in the world. To find the top travel companies in the world, 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 9. We used fiscal year revenues to rank the companies that are not publicly traded. For foreign companies, we converted the market caps and revenues to US dollars according to their respective exchange rates, as of March 9. Finally, we narrowed down our selection to rank the 20 largest travel companies in the world based on their market capitalization and revenues, which are listed below in ascending order.20 Largest Travel Companies In The World20. Host Hotels & Resorts Inc. (NYSE:HST)Market Capitalization: $14.9 BillionHost Hotels & Resorts Inc. (NYSE:HST) is a major American lodging real estate investment trust (REIT) that invests in hotels. It owns a diverse portfolio of luxury and upper-upscale hotels. Host Hotels & Resorts Inc. (NYSE:HST) has a market capitalization of $14.9 billion as of March 9, 2024.19. Hyatt Hotels Corporation (NYSE:H)Market Capitalization: $16.12 BillionHyatt Hotels Corporation (NYSE:H) is an American multinational hospitality company. As one of the world’s top hospitality companies, it manages and franchises luxury and business hotels, resorts, and vacation properties in more than 70 countries across 6 continents. As of March 9, 2024, Hyatt Hotels Corporation (NYSE:H) has a market capitalization of $16.12 billion.18. InterContinental Hotels Group PLC (NYSE:IHG)Market Capitalization: $17.4 BillionInterContinental Hotels Group PLC (NYSE:IHG) is a British multinational hospitality company. With more than 6,000 hotels in over 100 countries, it is one of the world’s leading hotel companies. InterContinental Hotels Group PLC (NYSE:IHG) has a market capitalization of $17.4 billion as of March 9, 2024. It ranks 18th on our list of the 20 biggest travel companies in the world.17. Expedia Group Inc. (NASDAQ:EXPE)Market Capitalization: $18.5 BillionExpedia Group Inc. (NASDAQ:EXPE) is an American travel technology company. As one of the top travel agencies in the world, it owns and operates various brands including Expedia, Hotels.com, CarRentals.com, Vrbo, Travelocity, Trivago, Orbitz, Ebookers, CheapTickets, and Expedia Cruises. As of March 9, 2024, Expedia Group Inc. (NASDAQ:EXPE) has a market capitalization of $18.5 billion.16. Southwest Airlines Co. (NYSE:LUV)Market Capitalization: $20.44 BillionSouthwest Airlines Co. (NYSE:LUV) is an American airline company. It offers low-cost air travel service with frequent flights of mostly short routes. As one of the biggest travel companies in the world, Southwest Airlines Co. (NYSE:LUV) has a market capitalization of $20.44 billion as of March 9, 2024.15. Qatar Airways GroupRevenue: $21 BillionQatar Airways Group is the flag carrier of Qatar. Owned by the Government of Qatar, it is one of the world’s top airlines and it currently flies to over 170 international destinations. Qatar Airways Group generated an annual revenue of $21 billion in the year 2022-2023. It ranks among the top 15 on our list of the 20 largest travel companies in the world.14. Carnival Corporation & plc (NYSE:CCL)Market Capitalization: $21.38 BillionCarnival Corporation & plc (NYSE:CCL) is a British-American cruise operator. As one of the world's largest leisure travel companies, it owns some of the most well-known cruise line brands in North America, the United Kingdom, Germany, Italy, and Australia. Carnival Corporation & plc (NYSE:CCL) has a market capitalization of $21.38 billion as of March 9, 2024.13. Galaxy Entertainment Group Limited (SEHK:0027)Market Capitalization: $21.83 BillionGalaxy Entertainment Group Limited (SEHK:0027) is one of Asia’s top developers and operators of integrated entertainment and resort facilities. It owns and operates a broad portfolio of integrated resort, retail, dining, hotel, and gaming facilities in Macau. As one of the top travel companies in the world, Galaxy Entertainment Group Limited (SEHK:0027) has a market capitalization of $21.83 billion as of March 9, 2024.12. Delta Air Lines Inc. (NYSE:DAL)Market Capitalization: $27.17 BillionDelta Air Lines Inc. (NYSE:DAL) is one of America’s major airlines. It is also one of the world’s largest airlines by number of passengers carried. As one of the top travel companies in the world, Delta Air Lines Inc. (NYSE:DAL) has a market capitalization of $27.17 billion as of March 9, 2024.11. Amadeus IT Group S.A. (BME:AMS)Market Capitalization: $27.31 BillionAmadeus IT Group S.A. (BME:AMS) is a Spanish multinational technology company that develops technology and software for airlines, travel agencies, hotels, payment providers, and other travel-related businesses to enhance their operations and customer experiences. With a presence in more than 190 countries, the company provides software solutions for the global travel and tourism industry. As of March 9, 2024, Amadeus IT Group S.A. (BME:AMS) has a market capitalization of $27.31 billion.10. Trip.com Group Limited (NASDAQ:TCOM)Market Capitalization: $28.27 BillionTrip.com Group Limited (NASDAQ:TCOM) is a multinational travel service company that ranks among the top 10 on our list of the largest travel companies in the world. It owns and operates several travel agencies and travel fare aggregators including Ctrip, Qunar, Trip.com and Skyscanner. As of March 9, 2024, Trip.com Group Limited (NASDAQ:TCOM) has a market capitalization of $28.27 billion.9. Ryanair Holdings plc (NASDAQ:RYAAY)Market Capitalization: $32.3 BillionRyanair Holdings plc (NASDAQ:RYAAY) is an Irish airline company. As one of Europe's largest airline groups, it is the parent company of Ryanair, Ryanair UK, Buzz, Lauda, and Malta Air. With a market capitalization of $32.3 billion as of March 9, 2024, Ryanair Holdings plc (NASDAQ:RYAAY) ranks 9th on our list of the 20 largest travel companies in the world.8. Emirates GroupRevenue: $32.6 BillionEmirates Group is Dubai’s state-owned international aviation holding company. It owns Dubai National Air Travel Agency (dnata), an airport and ground services company, and Emirates Airline, one of the largest airlines in the Middle East. Emirates Group generated an annual revenue of $32.6 billion in the year 2022-2023.7. Royal Caribbean Cruises Ltd. (NYSE:RCL)Market Capitalization: $32.71 BillionRoyal Caribbean Cruises Ltd. (NYSE:RCL) is a global cruise holding company that owns and operates cruise brands including Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. As one of the world’s largest cruise line operators, Royal Caribbean Cruises Ltd. (NYSE:RCL) has a global fleet of 65 ships traveling to around 1,000 destinations around the world. The company has a market capitalization of $32.71 billion as of March 9, 2024.6. Las Vegas Sands Corp. (NYSE:LVS)Market Capitalization: $38.81 BillionLas Vegas Sands Corp. (NYSE:LVS) is an American casino and resort company that owns and operates integrated resorts in Macao and Singapore. As a driver of valuable leisure and business tourism, it is one of the world’s largest hotel and casino companies. With a market capitalization of $38.81 billion as of March 9, 2024, Las Vegas Sands Corp. (NYSE:LVS) ranks 6th on our list of the 20 largest travel companies in the world.Click to continue reading and see 5 Largest Travel Companies In The World.Suggested Articles:40 Most Polluted Cities in the World in 202420 Countries with the Strongest Paramilitary Forces in the World15 Sunniest Cities in EuropeDisclosure: None. 20 Largest Travel Companies In The World is published on Insider Monkey.

Insider Monkey

20 Largest Travel Companies In The World

https://finance.yahoo.com/news/20-largest-travel-companies-world-180018353.html

f7019cdb-8fb0-3878-92c1-5d248c647fc3

REG

Regency Centers Corp (NASDAQ:REG), a real estate investment trust (REIT) that specializes in the ownership, operation, and development of shopping centers primarily anchored by grocery stores, has reported an insider sell transaction. According to a recent SEC filing, President and CEO Lisa Palmer sold 25,306 shares of the company on February 21, 2024.Lisa Palmer has a history of selling shares in the company over the past year, with a total of 25,306 shares sold and no shares purchased during this period.Regency Centers Corp President and CEO Lisa Palmer Sells 25,306 SharesThe insider transaction history for Regency Centers Corp indicates a trend of more insider selling than buying over the past year. There have been zero insider buys and five insider sells in the last twelve months.On the valuation front, Regency Centers Corp shares were trading at $61.22 each on the day of the insider's recent transaction, resulting in a market capitalization of $11.27 billion.The price-earnings ratio of the company stands at 29.94, which is above the industry median of 17.06 but below the historical median price-earnings ratio for the company.Regency Centers Corp President and CEO Lisa Palmer Sells 25,306 SharesConsidering the current share price of $61.22 against the GuruFocus Value (GF Value) of $67.53, Regency Centers Corp has a price-to-GF-Value ratio of 0.91, suggesting that the stock is modestly undervalued according to GuruFocus's intrinsic value estimate. The GF Value is determined by 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 REG.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

Regency Centers Corp President and CEO Lisa Palmer Sells 25,306 Shares

https://finance.yahoo.com/news/regency-centers-corp-president-ceo-045707617.html

584e6ce9-14b0-3efc-a824-9b0963dbc6fd

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Regency Centers CorporationCHESHIRE, Conn., Feb. 23, 2024 (GLOBE NEWSWIRE) -- Regency Centers has acquired the land on which it plans to develop Cheshire Crossing, a 152,000-square foot shopping center anchored by Whole Foods Market in Cheshire, CT. This destination will be the retail component of a master-planned community known as Stone Bridge Crossing. Upon completion, Stone Bridge Crossing will include 140 townhomes and carriage houses, 300 multi-family units, and a 125-room Homewood Suites hotel in addition to the shopping center.Located at the intersection of CT-10 and I-691, the major thoroughfare arteries for the region, Cheshire Crossing is uniquely situated to serve Cheshire and a cluster of nearby towns with a lineup of retailers new to the area. Whole Foods Market will be joined by a 23,000 square-foot TJMaxx, an additional 18,000-square feet of junior anchor space, five outparcels, and 38,000-square feet of inline shops.“Cheshire Crossing is a great example of how Regency is remaining active in the region, and how we can leverage our experience and retailer relationships to develop best-in-class shopping centers from the ground up,” said Rebecca Wing, Vice President of Investments for Regency Centers. “We have a long history and working relationship with Whole Foods Market, and we look forward to demonstrating continued success as long-term stewards of this shopping center.”For more information, please contact [email protected] Regency Centers (Nasdaq:REG)Regency Centers is a preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member. For more information, please visit RegencyCenters.com.Story continuesEric Davidson904 598 [email protected]

GlobeNewswire

Regency Centers Announces Whole Foods Market Anchored Development in Central Connecticut

https://finance.yahoo.com/news/regency-centers-announces-whole-foods-234400626.html

59752f24-f0a0-310e-a0b4-c5f12ec97a4b

REG

Regency Centers CorporationJACKSONVILLE, Fla., Feb. 28, 2024 (GLOBE NEWSWIRE) -- Regency Centers, L.P. (“Regency Centers”, the “Company” or “Regency”) announced today that Moody’s Investors Service (“Moody’s”) raised its credit ratings related to the Company to ‘A3’ with a stable outlook.In its public announcement, Moody’s noted “Regency’s consistently strong operating performance such as lease rate and rent per square foot, high-quality and diversified portfolio of grocery-anchored shopping centers, prudent capital strategy, and good liquidity profile.”“We are gratified by the recognition from Moody’s of Regency’s long-standing commitment to operational excellence and balance sheet strength,” said Lisa Palmer, President and Chief Executive Officer. “This tremendous achievement is a testament to our disciplined strategy and the exceptional work of our team in executing the strategy.”About Regency Centers (Nasdaq: REG)Regency Centers is a preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member. For more information, please visit RegencyCenters.com.Christy McElroy904 598 [email protected]

GlobeNewswire

Regency Centers Upgraded by Moody’s to an ‘A3’ Credit Rating

https://finance.yahoo.com/news/regency-centers-upgraded-moody-a3-131500133.html

81a21b8e-c67a-3ad2-8a42-61b601e5b59f

REG

Regency Centers CorporationJACKSONVILLE, Fla., Feb. 29, 2024 (GLOBE NEWSWIRE) -- Regency Centers Corporation (“Regency” or the “Company”) (Nasdaq: REG) today announced that Lisa Palmer, President and Chief Executive Officer, is scheduled to make a presentation at the 2024 Citi Global Property CEO Conference (the “Conference”) on Tuesday, March 5, 2024, at 8:50 am ET. To access the Company’s live presentation, use the webcast registration link below.Regency Centers PresentationDate:Tuesday, March 5, 2024Time:8:50 a.m. – 9:25 a.m. ETSpeakers:Lisa Palmer – President & Chief Executive OfficerWebcast Link:Citi's 2024 Global Property CEO Conference PresentationA replay of the webcast will be available for one year following the completion of the conference.About Regency Centers Corporation (NASDAQ:REG)Regency Centers is a preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member. For more information, please visit RegencyCenters.com.Christy McElroy 904 598 7616 [email protected]

GlobeNewswire

Regency Centers to Present at Citi’s 2024 Global Property CEO Conference

https://finance.yahoo.com/news/regency-centers-present-citi-2024-131500357.html

2262e755-37ab-30e8-a14e-75382a722592

REGN

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: Moderna MRNA, RAPT Therapeutics, Inc. RAPT, Iovance Biotherapeutics, Inc. IOVA, Sarepta Therapeutics SRPT and Regeneron Pharmaceuticals, Inc. REGN.Here are highlights from Thursday’s Analyst Blog:Biotech Stock Roundup: Q4 Earnings, Approvals & MoreEarnings updates continue to be in focus in the biotech sector as we move through the last leg of the earnings cycle. Concurrently, pipeline and regulatory updates continue to be in the spotlight as well.Recap of the Week’s Most Important Stories:Moderna’s Q4 Earnings: Moderna reported earnings of 55 cents per share in the fourth quarter of 2023, which beat the Zacks Consensus Estimate of a loss of 78 cents per share. Revenues of $2.8 billion beat the Zacks Consensus Estimate of $2.5 billion. Revenues primarily comprise COVID-19 Vaccine Spikevax sales. Moderna reaffirmed its product sales guidance of approximately $4 billion for 2024.Moderna continues to expect initial regulatory approvals for its RSV vaccine (mRNA-1345), starting in the first half of 2024.RAPT Crashes on Study Failure: RAPT Therapeutics, Inc. announced that the FDA notified that a clinical hold has been placed on the company’s phase IIb trial of zelnecirnon (RPT193) in atopic dermatitis and phase IIa trial in asthma. Shares of this clinical-stage, immunology-based biopharmaceutical company crashed on the news. While the FDA informed RAPT verbally, the latter is yet to receive a formal clinical hold letter from the agency.The hold was placed due to a serious adverse event of liver failure in one patient in the atopic dermatitis trial, the cause of which is currently unknown but has been characterized as potentially related to zelnecirnon. Dosing of zelnecirnon has been halted in both clinical trials. Enrollment of new trial participants has also been paused. The clinical hold does not apply to RAPT’s ongoing trial of tivumecirnon (FLX475) in oncology.Story continuesPer the company, approximately 350 patients have been enrolled across three clinical studies evaluating zelnecirnon — the two phase II trials and an earlier phase Ia/Ib study. No evidence of liver toxicity has been observed with any other trial participant. Additionally, no evidence of liver toxicity was observed in nonclinical studies.IOVA Surges on Drug Approval: Shares of Iovance Biotherapeutics, Inc. surged after the company obtained FDA-granted accelerated approval to lifileucel suspension for intravenous infusion under the brand name Amtagvi.Lifileucel is a tumor-derived autologous T cell immunotherapy, indicated for the treatment of adult patients with unresectable or metastatic melanoma previously treated with a PD-1 blocking antibody, and if BRAF V600 mutation positive, a BRAF inhibitor with or without a MEK inhibitor.The FDA’s accelerated approval was based on safety and efficacy data from the phase II C-144-01 study, which evaluated Amtagvi in patients with advanced melanoma, previously treated with anti-PD-1 therapy and targeted therapy. Treatment with Amtagvi led to deep and durable responses in the given patient population. The accelerated nod from the regulatory body was based on the overall response rate and duration of response. Iovance is evaluating Amtagvi in frontline advanced melanoma in the phase III confirmatory study, TILVANCE-301, as well as additional solid tumor types.IOVA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Sarepta Up on Regulatory Update: Sarepta Therapeutics’ shares rose after the FDA accepted its efficacy supplement to the biologics license application (BLA), seeking to expand the treatment label for its Duchenne muscular dystrophy (DMD) drug, Elevidys. The FDA has assigned the Priority Review status to the company’s Elevidys filing with a review goal date of Jun 21, 2024.Elevidys was initially approved by the FDA in June 2023 under the accelerated pathway to treat ambulatory pediatric patients aged between four and five years with DMD.The efficacy supplement seeks to expand the labeled indication for Elevidys to treat all DMD patients, irrespective of age and ambulation status. Subject to approval, it will also convert the Elevidys accelerated approval to a traditional approval.Sarepta also reported that the regulatory body has confirmed that it will not hold any advisory committee meeting to discuss the efficacy supplement to the Elevidys BLA.Regeneron’s Myeloma Drug Gets Priority Review: Regeneron Pharmaceuticals, Inc. announced that its biologics license application (BLA), seeking approval of linvoseltamab for the treatment of adult patients with relapsed/refractory (R/R) multiple myeloma (MM) that has progressed after at least three prior therapies has been accepted by the FDA. The regulatory body has granted Priority Review to the same with a target action date of Aug 22, 2024.The BLA is supported by data from a phase I/II pivotal trial (LINKER-MM1) investigating linvoseltamab in R/R MM.The linvoseltamab clinical development program includes a phase III confirmatory trial in patients with R/R MM (LINKER-MM3) that is currently enrolling. Additional trials in earlier lines of therapy and stages of disease are planned or underway, including a phase I/II study in the first-line setting, a phase II trial in high-risk smoldering MM and a phase II trial in monoclonal gammopathy of undetermined significance. A phase I study of linvoseltamab, in combination with a Regeneron CD38xCD28 costimulatory bispecific in MM, is also planned.PerformanceThe Nasdaq Biotechnology Index has gained 0.73% in the past four trading sessions. Among the biotech giants, Incyte has gained 4.21% during the period. Over the past six months, shares of GSK have surged 22.6%. (See the last biotech stock roundup here: Biotech Stock Roundup: BIIB’s Q4 Results, CBAY Up on GILD’s Acquisition & Other Updates)What's Next in Biotech?Stay tuned for more earnings and pipeline updates.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 reportRegeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis ReportModerna, Inc. (MRNA) : Free Stock Analysis ReportSarepta Therapeutics, Inc. (SRPT) : Free Stock Analysis ReportIovance Biotherapeutics, Inc. (IOVA) : Free Stock Analysis ReportRapt Therapeutics (RAPT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

The Zacks Analyst Blog Highlights Moderna, RAPT Therapeutics, Iovance, Sarepta Therapeutics and Regeneron

https://finance.yahoo.com/news/zacks-analyst-blog-highlights-moderna-095800264.html

0b6956cb-6916-3acb-a319-221d63f3270f

REGN

Weight-loss drugs from Novo Nordisk and Eli Lilly lead to massive weight loss. But not all of that weight loss is healthy.Continue reading

Investor's Business Daily

Weight-Loss Drugs Have One Big Problem. These Drugmakers Are Taking It On.

https://finance.yahoo.com/m/2ed74293-5ef3-3af7-94af-ea656c94e8be/weight-loss-drugs-have-one.html

2ed74293-5ef3-3af7-94af-ea656c94e8be

REGN

Key InsightsUsing the 2 Stage Free Cash Flow to Equity, Regeneron Pharmaceuticals fair value estimate is US$1,665Current share price of US$969 suggests Regeneron Pharmaceuticals is potentially 42% undervaluedOur fair value estimate is 64% higher than Regeneron Pharmaceuticals' analyst price target of US$1,012Today we will run through one way of estimating the intrinsic value of Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) by taking the forecast future cash flows of the company and discounting them back to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. See our latest analysis for Regeneron Pharmaceuticals What's The Estimated Valuation?We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars:Story continues10-year free cash flow (FCF) forecast2024202520262027202820292030203120322033 Levered FCF ($, Millions) US$4.49bUS$4.69bUS$5.47bUS$6.31bUS$7.01bUS$7.53bUS$7.97bUS$8.35bUS$8.69bUS$9.00bGrowth Rate Estimate SourceAnalyst x6Analyst x6Analyst x5Analyst x3Analyst x2Est @ 7.42%Est @ 5.88%Est @ 4.80%Est @ 4.05%Est @ 3.52% Present Value ($, Millions) Discounted @ 6.2% US$4.2kUS$4.2kUS$4.6kUS$5.0kUS$5.2kUS$5.3kUS$5.2kUS$5.2kUS$5.1kUS$4.9k("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$49bAfter calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. 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 6.2%.Terminal Value (TV)= FCF2033 × (1 + g) ÷ (r – g) = US$9.0b× (1 + 2.3%) ÷ (6.2%– 2.3%) = US$237bPresent Value of Terminal Value (PVTV)= TV / (1 + r)10= US$237b÷ ( 1 + 6.2%)10= US$130bThe total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$179b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of US$969, the company appears quite good value at a 42% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.dcfThe AssumptionsWe would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. 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 Regeneron Pharmaceuticals 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 6.2%, which is based on a levered beta of 0.845. 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 Regeneron PharmaceuticalsStrengthDebt is not viewed as a risk.WeaknessEarnings declined over the past year.OpportunityAnnual earnings are forecast to grow for the next 3 years.Good value based on P/E ratio and estimated fair value.ThreatAnnual earnings are forecast to grow slower than the American market.Next Steps:Whilst important, the DCF calculation ideally won't be the sole piece of analysis you scrutinize for a company. DCF models are not the be-all and end-all of investment valuation. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Can we work out why the company is trading at a discount to intrinsic value? For Regeneron Pharmaceuticals, we've put together three fundamental factors you should consider:Risks: Every company has them, and we've spotted 1 warning sign for Regeneron Pharmaceuticals you should know about.Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for REGN's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.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.

Is There An Opportunity With Regeneron Pharmaceuticals, Inc.'s (NASDAQ:REGN) 42% Undervaluation?

https://finance.yahoo.com/news/opportunity-regeneron-pharmaceuticals-inc-nasdaq-140011037.html

81e3510e-3087-3c13-a161-7da35dfe7dde

REGN

Regeneron Pharmaceuticals, Inc.Approval extends treatment of Praluent to children aged 8 and older with heterozygous familial hypercholesterolemia (HeFH)TARRYTOWN, N.Y., March 11, 2024 (GLOBE NEWSWIRE) -- Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) announced the U.S. Food & Drug Administration (FDA) has extended the approval of Praluent® (alirocumab) as an adjunct to diet and other low-density lipoprotein cholesterol (LDL-C) lowering therapies to include pediatric patients aged 8 and older with heterozygous familial hypercholesterolemia (HeFH).“Many children with heterozygous familial hypercholesterolemia (HeFH) are able to substantially improve their LDL-C (bad cholesterol) with currently available therapies. But for those children whose LDL-C remains dangerously high, this approval is an important milestone as it gives these children and their families an additional option to help reduce and manage their LDL-C levels much earlier in their lives,” said Mary P. McGowan, M.D., Chief Medical Officer of the Family Heart Foundation.Familial hypercholesterolemia (FH) is an inherited condition caused by mutations in one of several genes that control how the body processes cholesterol, which can lead to very high levels of LDL-C (bad cholesterol). FH can come in two forms: HeFH, which develops when one mutated gene is inherited from one parent; and homozygous familial hypercholesterolemia (HoFH), which develops when a mutated gene is inherited from both parents. Praluent is approved to treat both children and adults with HeFH and adults with HoFH.The approval is based on a Phase 3, randomized multicenter trial evaluating pediatric patients aged 8 to 17 with HeFH, who had LDL-C levels of 130mg/dL or greater and were already being treated with lipid-lowering medications. Patients were randomized to receive Praluent (N=101) or placebo (N=52) every two or four weeks in two consecutive cohorts. Patients who received Praluent every four weeks had 31% lower LDL-C than placebo at 24 weeks (97.5% Confidence Interval: -45.0% to -17.9%; p<0.0001). Improvements in additional key lipid parameters were also observed. Results from the trial were recently published in the Journal of the American Medical Association Pediatrics.Story continuesNo new adverse reactions were identified in this trial, and the safety profile was consistent with the safety profile observed in adults with HeFH. Across Praluent trials in patients with primary hyperlipidemia (N=2,476), the most common adverse reactions (≥5%) more frequently observed with Praluent than placebo have been injection site reactions (7%), and influenza (6%) and diarrhea (5%).“The approval of Praluent for the treatment of high cholesterol was a historic landmark achievement, as it was the first approved therapy targeting the genetically-validated PCSK9 target for heart disease,” said George D. Yancopoulos, M.D., Ph.D., Board co-Chair, President and Chief Scientific Officer at Regeneron, and a principal inventor of Praluent. “Praluent has made a meaningful impact in the treatment of adults with familial hypercholesterolemia, and we are proud that our innovation will now be able to help appropriate children with the heterozygous form of this disease manage their dangerously high levels of LDL-C.”About the Praluent HeFH Pediatric TrialThe randomized multicenter Phase 3 trial consisted of a 24-week double-blind, placebo-controlled evaluating the efficacy and safety of Praluent in pediatric patients aged 8 to 17 years with HeFH (N=79). The primary endpoint was the percent change in LDL-C from baseline to week 24 in the Praluent and placebo treated patients. At baseline, patients were on a low-fat diet and being treated with background lipid-lowering therapy. In the trial, patients were randomized 2:1 to receive Praluent or placebo every 2 or 4 weeks. The Praluent dose was based on body weight.About PraluentPraluent inhibits the binding of PCSK9 to the LDL receptor and thereby increases the number of available LDL receptors on the surface of liver cells to clear LDL, which lowers LDL-C levels in the blood. Praluent was developed by Regeneron and Sanofi under a global collaboration agreement and invented by Regeneron using the company's proprietary VelocImmune® technology that yields optimized fully-human monoclonal antibodies.In the U.S., Praluent is currently indicated:to reduce the risk of myocardial infarction, stroke, and unstable angina requiring hospitalization in adults with established cardiovascular diseaseas an adjunct to diet, alone or in combination with other low-density lipoprotein cholesterol (LDL-C) lowering therapies in adults with primary hyperlipidemia including HeFH to reduce LDL-Cas an adjunct to other LDL-C-lowering therapies in adults with HoFH to reduce LDL-Calong with diet and other LDL-C lowering treatments in children aged 8 years and older with HeFH to reduce LDL-CIn addition to the U.S., Praluent is approved in 60 countries, including the European Union, Japan, Canada, Switzerland and Brazil.About Regeneron’s VelocImmune TechnologyRegeneron’s VelocImmune technology utilizes a proprietary genetically engineered mouse platform endowed with a genetically humanized immune system to produce optimized fully human antibodies. When Regeneron's President and Chief Scientific Officer George D. Yancopoulos was a graduate student with his mentor Frederick W. Alt in 1985, they were the first to envision making such a genetically humanized mouse, and Regeneron has spent decades inventing and developing VelocImmune and related VelociSuite® technologies. Dr. Yancopoulos and his team have used VelocImmune technology to create a substantial proportion of all original, FDA-approved fully human monoclonal antibodies currently available. This includes Evkeeza® (evinacumab-dgnb), REGEN-COV® (casirivimab and imdevimab), Dupixent® (dupilumab), Libtayo® (cemiplimab-rwlc), Praluent, Kevzara® (sarilumab), Inmazeb® (atoltivimab, maftivimab and odesivimab-ebgn) and Veopoz® (pozelimab-bbfg).IMPORTANT SAFETY INFORMATION AND INDICATIONSINDICATIONSPRALUENT is an injectable prescription medicine used:in adults with cardiovascular disease to reduce the risk of heart attack, stroke, and certain types of chest pain conditions (unstable angina) requiring hospitalization.along with diet, alone or together with other cholesterol-lowering medicines in adults with high blood cholesterol levels called primary hyperlipidemia (including a type of high cholesterol called heterozygous familial hypercholesterolemia [HeFH]), to reduce low-density lipoprotein cholesterol (LDL-C) or bad cholesterol.along with other LDL-lowering treatments in adults with a type of high cholesterol called homozygous familial hypercholesterolemia, who need additional lowering of LDL-C.along with diet and other LDL-C lowering treatments in children aged 8 years and older with HeFH to reduce LDL-C.It is not known if PRALUENT is safe and effective in children who are younger than 8 years of age or in children with other types of high cholesterol (hyperlipemias).IMPORTANT SAFETY INFORMATIONDo not use PRALUENT if you are allergic to alirocumab or to any of the ingredients in PRALUENT.Before you start using PRALUENT, tell your healthcare provider about all of your medical conditions, including allergies, and if you are pregnant or plan to become pregnant or if you are breastfeeding or plan to breastfeed.Tell your healthcare provider or pharmacist about any medicines you take, including prescription and over-the-counter medicines, vitamins, or herbal supplements.PRALUENT can cause serious side effects, including allergic reactions that can be severe and require treatment in a hospital. Stop using PRALUENT and call your healthcare provider or go to the nearest hospital emergency room right away if you have any symptoms of an allergic reaction including a severe rash, redness, hives, severe itching, trouble breathing, or swelling of the face, lips, throat, or tongue.The common side effects of PRALUENT include: redness, itching, swelling, or pain/tenderness at the injection site, flu or flu-like symptoms, diarrhea, muscle pain, muscle spasms and bruising. Tell your healthcare provider if you have any side effect that bothers you or that does not go away.Talk to your doctor about the right way to prepare and give yourself a PRALUENT injection and follow the “Instructions For Use” that comes with PRALUENT. In children aged 12 to 17 years, it is recommended that PRALUENT be given by or under the supervision of an adult. In children aged 8 to 11 years, PRALUENT should be given by a caregiver.You are encouraged to report negative side effects of prescription drugs to the FDA. Visit www.fda.gov/medwatch or call 1-800-FDA-1088.Please click here for full Prescribing Information. About RegeneronRegeneron (NASDAQ: REGN) is a leading biotechnology company that invents, develops and commercializes life-transforming medicines for people with serious diseases. Founded and led for over 35 years by physician-scientists, our unique ability to repeatedly and consistently translate science into medicine has led to numerous FDA-approved treatments and product candidates in development, almost all of which were homegrown in our laboratories. Our medicines and pipeline are designed to help patients with eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, hematologic conditions, infectious diseases and rare diseases.Regeneron is accelerating and improving the traditional drug development process through our proprietary VelociSuite® technologies, such as VelocImmune, which uses unique genetically humanized mice to produce optimized fully human antibodies and bispecific antibodies, and through ambitious research initiatives such as the Regeneron Genetics Center, which is conducting one of the largest genetics sequencing efforts in the world.For more information, please visit www.Regeneron.com or follow Regeneron on LinkedIn.Forward-Looking Statements and Use of Digital MediaThis press release includes forward-looking statements that involve risks and uncertainties relating to future events and the future performance of Regeneron Pharmaceuticals, Inc. (“Regeneron” or the “Company”), and actual events or results may differ materially from these forward-looking statements. Words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “seek,” “estimate,” variations of such words, and similar expressions are intended to identify such forward-looking statements, although not all forward-looking statements contain these identifying words. These statements concern, and these risks and uncertainties include, among others, the nature, timing, and possible success and therapeutic applications of products marketed or otherwise commercialized by Regeneron and/or its collaborators or licensees (collectively, “Regeneron’s Products”) and product candidates being developed by Regeneron and/or its collaborators or licensees (collectively, “Regeneron’s Product Candidates”) and research and clinical programs now underway or planned, including without limitation Praluent® (alirocumab) for the treatment of pediatric patients aged 8 to 17 with heterozygous familial hypercholesterolemia; uncertainty of the utilization, market acceptance, and commercial success of Regeneron’s Products and Regeneron’s Product Candidates and the impact of studies (whether conducted by Regeneron or others and whether mandated or voluntary), including the studies discussed or referenced in this press release, on any of the foregoing; the likelihood, timing, and scope of possible regulatory approval and commercial launch of Regeneron’s Product Candidates and new indications for Regeneron’s Products; the ability of Regeneron’s collaborators, licensees, suppliers, or other third parties (as applicable) to perform manufacturing, filling, finishing, packaging, labeling, distribution, and other steps related to Regeneron’s Products and Regeneron’s Product Candidates; the ability of Regeneron to manage supply chains for multiple products and product candidates; safety issues resulting from the administration of Regeneron’s Products (such as Praluent) and Regeneron’s Product Candidates in patients, including serious complications or side effects in connection with the use of Regeneron’s Products and Regeneron’s Product Candidates in clinical trials; determinations by regulatory and administrative governmental authorities which may delay or restrict Regeneron’s ability to continue to develop or commercialize Regeneron’s Products and Regeneron’s Product Candidates; ongoing regulatory obligations and oversight impacting Regeneron’s Products, research and clinical programs, and business, including those relating to patient privacy; the availability and extent of reimbursement of Regeneron’s Products from third-party payers, including private payer healthcare and insurance programs, health maintenance organizations, pharmacy benefit management companies, and government programs such as Medicare and Medicaid; coverage and reimbursement determinations by such payers and new policies and procedures adopted by such payers; competing drugs and product candidates that may be superior to, or more cost effective than, Regeneron’s Products and Regeneron’s Product Candidates; the extent to which the results from the research and development programs conducted by Regeneron and/or its collaborators or licensees may be replicated in other studies and/or lead to advancement of product candidates to clinical trials, therapeutic applications, or regulatory approval; unanticipated expenses; the costs of developing, producing, and selling products; the ability of Regeneron to meet any of its financial projections or guidance and changes to the assumptions underlying those projections or guidance; the potential for any license, collaboration, or supply agreement, including Regeneron’s agreements with Sanofi and Bayer (or their respective affiliated companies, as applicable) to be cancelled or terminated; the impact of public health outbreaks, epidemics, or pandemics (such as the COVID-19 pandemic) on Regeneron's business; and risks associated with intellectual property of other parties and pending or future litigation relating thereto (including without limitation the patent litigation and other related proceedings relating to EYLEA® (aflibercept) Injection), other litigation and other proceedings and government investigations relating to the Company and/or its operations, the ultimate outcome of any such proceedings and investigations, and the impact any of the foregoing may have on Regeneron’s business, prospects, operating results, and financial condition. A more complete description of these and other material risks can be found in Regeneron’s filings with the U.S. Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2023. Any forward-looking statements are made based on management’s current beliefs and judgment, and the reader is cautioned not to rely on any forward-looking statements made by Regeneron. Regeneron does not undertake any obligation to update (publicly or otherwise) any forward-looking statement, including without limitation any financial projection or guidance, whether as a result of new information, future events, or otherwise. Regeneron uses its media and investor relations website and social media outlets to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Regeneron is routinely posted and is accessible on Regeneron's media and investor relations website (https://investor.regeneron.com) and its LinkedIn page (https://www.linkedin.com/company/regeneron-pharmaceuticals).Contacts:Media RelationsMary HeatherTel: +1 [email protected] RelationsMark HudsonTel: +1 [email protected]

GlobeNewswire

Praluent® (alirocumab) Injection Receives FDA Approval to Treat Children with Genetic Form of High Cholesterol

https://finance.yahoo.com/news/praluent-alirocumab-injection-receives-fda-110000454.html

10377965-8584-3a8d-9896-0487c68d2a8e

RF

Regions Financial Corporation (NYSE:RF) stock is about to trade ex-dividend in four days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. Therefore, if you purchase Regions Financial's shares on or after the 29th of February, you won't be eligible to receive the dividend, when it is paid on the 1st of April.The company's next dividend payment will be US$0.24 per share. Last year, in total, the company distributed US$0.96 to shareholders. Based on the last year's worth of payments, Regions Financial stock has a trailing yield of around 5.3% on the current share price of US$18.28. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! We need to see whether the dividend is covered by earnings and if it's growing. Check out our latest analysis for Regions Financial If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. That's why it's good to see Regions Financial paying out a modest 42% of its earnings.When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.Click here to see the company's payout ratio, plus analyst estimates of its future dividends.historic-dividendHave Earnings And Dividends Been Growing?Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. This is why it's a relief to see Regions Financial earnings per share are up 9.2% per annum over the last five years.Story continuesThe main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Since the start of our data, 10 years ago, Regions Financial has lifted its dividend by approximately 23% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.To Sum It UpShould investors buy Regions Financial for the upcoming dividend? Regions Financial has seen its earnings per share grow slowly in recent years, and the company reinvests more than half of its profits in the business, which generally bodes well for its future prospects. In summary, Regions Financial appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.Wondering what the future holds for Regions Financial? See what the 18 analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flowGenerally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are 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.

Regions Financial Corporation (NYSE:RF) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

https://finance.yahoo.com/news/regions-financial-corporation-nyse-rf-122329417.html

7123f04e-3ee9-3ee1-9921-662597d176ef

RF

NORTHAMPTON, MA / ACCESSWIRE / February 26, 2024 / Regions Bank:Discover how one woman's guitar-playing passion inspired her to scale to new heights by serving others.By Kim BorgesSandy Green's home, once filled with voices and laughter, fell silent following her daughter and granddaughter's 2015 move from Raleigh, North Carolina, to Kansas City."An empty nest just guts you," Green said. "I was rendered paralyzed with sadness."Consolation arrived in the form of friends who gathered around the firepit, and the music played by one who brought a guitar.I'm going to buy a guitar. I knew I needed to play that thing.Sandy GreenGreen's thought at the end of the night?"I'm going to buy a guitar. I knew I needed to play that thing."Green devoted the entire next weekend to learning her new instrument."I watched instructional videos and printed out chords," she said. "By Monday, I noticed I wasn't sad anymore. It took me out of that place. I began looking forward to coming home after work and playing every night. It was my therapy."Terry Hoey, Mortgage Production manager and Raleigh market executive for Regions Bank by day and fellow avid guitarist during his down time, first crossed paths with Green that same year."Sandy and I met at a pickin' circle, where musicians get together to learn new material from each other and just play for the sheer joy of playing," he said.Shortly thereafter, Green discovered the joy of playing was just the first verse of her song. Turns out, she had a far larger act in store bringing joy to thousands more."One instrument in one shelter was originally my goal," she said of donating a guitar to a homeless shelter housing a teen she'd been mentoring through the Big Brothers Big Sisters organization.Sandy and I met at a pickin' circle, where musicians get together to learn new material from each other and just play for the sheer joy of playing.Story continuesTerry Hoey, Mortgage Production manager and Raleigh market executiveBut, then, an observation."She was all present, all calm with that guitar in her hand," said Green, describing the teen's reaction. "I don't think I've ever known a life where music wasn't important. In that moment, I saw I wasn't the only one whose life could be saved because of an instrument; I knew it was time to organize."Green's orchestrated effort involved launching Guitarists for Good, a nonprofit sharing the love of music by providing free instruments to homeless shelters and nonprofits serving people experiencing housing insecurity. Today, Green and her band of volunteers have distributed nearly 500 instruments to 160 organizations across 18 states. Hoey is part of the goodness ensemble."I've delivered multiple guitars around North Carolina and other instruments like keyboards and drums throughout Western Virginia over the years," he said. "Providing others with access to music was an easy commitment to make. It's a way I can leverage my personal passion to help others."In addition to delivering instruments, Hoey also helps string guitars, many of which are donated."Terry is wonderful," said Green. "He fans my flames and is just so supportive and cool."Others are fanning the flames, too. The friend who sold Green her first guitar? The guitar shop he owned still collects donations then refurbished by volunteers. He also serves as a member of Guitarists for Good's board of directors.Providing others with access to music was an easy commitment to make. It's a way I can leverage my personal passion to help others.Terry Hoey"I've got this army of do-gooders who have supported me every step of the way," said Green.Hoey's volunteerism is driven by two factors."Sandy's enthusiasm is a force," he said. "And, while it may not seem intuitive, musical instruments can play a part in helping men, women and teens in crisis, I can tell you in the most absolute terms they do. When people find themselves in overwhelming situations - and there's no immediate escape or solution - sometimes, slowing down and finding a moment of peace, a moment of joy can change their perspective. Music can offer that moment of gratitude."And maybe even moments of healing, too. It certainly has for Green. Today, her life is humming - and strumming - along quite nicely thanks to all who support Guitarists for Good. And her once quiet home is now often filled with music."I have jam sessions in my backyard which really serve to build community and offer a place for connection," Green said. "I'm so grateful we don't often ask for donations because news about us spreads organically through word of mouth. The donations just come as we need them. From the beginning, this amazing circle of people said, ‘Don't worry, we've got you.' And they sure have."Playing for Good:Seventeen year ago, Terry Hoey picked up the guitar to enjoy a shared hobby with his oldest son, Brendan. Today, the self-proclaimed "elementary school band nerd" continues to play, but it's for more than just fun.Hoey and his neighbor, Gretchen Norwood, play Raleigh establishments and events several times a year to raise funds for nonprofits like CASA, Challenge to Conquer Cancer, the Kay Yow Cancer Fund and a Meals On Wheels benefit scheduled for May. The "One Block Over" duo, who perform a variety of classic and southern rock melodies during their 30-song sets, have raised thousands of dollars benefitting community organizations.Brendan is now also occasionally part of the act as well."Being able to share something you're passionate about with your kid, there's nothing much better than that," said Hoey. "Playing with Brendan and with Gretchen allows me to take something I'm passionate about to creatively and positively make a difference. I'm grateful I have the means, the wherewithal and some of the skills I take from work to be able to help other people."View additional multimedia and more ESG storytelling from Regions Bank on 3blmedia.com.Contact Info:Spokesperson: Regions BankWebsite: https://www.3blmedia.com/profiles/regions-bankEmail: [email protected]: Regions BankView the original press release on accesswire.com

ACCESSWIRE

Regions Brings Music to Those in Need

https://finance.yahoo.com/news/regions-brings-music-those-154000455.html

34da5bb3-4e71-3b1e-aff1-f2d8a7442d05

RF

NORTHAMPTON, MA / ACCESSWIRE / March 6, 2024 / Regions BankAs part of Black History Month, Regions Bank honors local attorney, judge and community leader at its annual History in Motion celebration.When J. Mason Davis Jr. first met Houston Brown, he noticed there was something special about the young law clerk. In the years since, Davis' gut instinct proved dead on."A great judge, solid person, good citizen … and just a solid man," said Davis, shareholder at Dentons Sirote and former History in Motion honoree, describing his former clerk, partner and friend.And similar words were echoed by everyone who spoke of Judge Houston Brown at the recent Regions Bank History in Motion celebration in Birmingham, Alabama: a man with integrity, a role model and mentor, with an innate ability to work with all kinds of individuals and bring people together.For the past 15 years, Regions Bank has concluded Black History Month with its History in Motion event, which celebrates past, present and future leaders and the contributions they've made to our communities and our nation."Never let anyone else tell your story." Judge Houston BrownThis year's honoree has certainly led a remarkable life of leadership and commitment, which is even more extraordinary considering the challenges he faced early in life.Brown grew up in Birmingham and remembers his early childhood fondly."It was a good time to be a child," he says. "We had lots of love and attention at home, in the community and at church." But he also remembered becoming aware of racial tension when he was around 11 years old. Segregation, enforced by Jim Crow laws, created difficult times in the city.Brown recalled three events from his youth that changed the trajectory of his life.The first was attending the 1963 March on Washington, where Brown said he became emotional as Martin Luther King, Jr. spoke. Immediately after witnessing that moving and inspiring speech, he came back to Alabama and the house across the street from where he lived with his parents, the home of civil rights attorney Arthur D. Shores, was bombed. Against the orders of local police on the scene he ran across the street, determined to get inside and check on his neighbors.Story continuesTwo weeks later, four little girls were killed in the horrific bombing of the 16th Street Baptist Church in Birmingham. Two of the girls were very close family friends - "like extended family," Brown said - and that violent tragedy made a huge impact on the young man."It was the most heinous example of hatred - pure hatred and evil - that has happened to me, personally, in my entire life," he said.Brown said that he knew right then he had to contribute something positive to his community. So, he decided to go into law.He was the first Black student to be awarded the Juris Doctor degree from the Cumberland School of Law at Samford University in Birmingham."I didn't set out to make a mark, I didn't set out to be unique in any way," he said. "But I set out, with whatever I did, to try to do the very best that I could."Brown practiced law for 27 years, forming firms Davis and Brown and then Brown, Chappel and Burrell. In 2000, he was appointed to Circuit Judge in the Tenth Judicial Circuit of Alabama, and 13 years later was elected as presiding Circuit Court Judge. He was the first Black judge to hold that position.In those years of private practice and then on the bench, he earned a reputation for being a calming force, always balanced and fair, and a positive role model for young attorneys."He's one to be a destiny changer," said Barbara Shores, a lifelong friend of Brown and daughter of civil rights attorney Arthur D. Shores. "He's made important decisions and worked on social justice issues. To see him from where he started, in the yard playing basketball, to being in the courts as a judge - we're all very proud of him and the impact he's had on the citizens of Birmingham and the state of Alabama."Along with his professional contributions, for which he holds numerous awards and recognitions, Brown has also dedicated much of his life in leadership positions with community and civic organizations. He noted that he is particularly proud of having been appointed to serve on the first Police-Community Relations Committee for the City of Birmingham, serving as a presenter for the first seminar in 1968.Brown was a founding member of both the Alabama Lawyers Association and the Magic City Bar Association and was inducted in the Hall of Fame for both organizations.As he reflected on the events he's witnessed and the experiences of his life and career, he reiterated his personal philosophy of promoting understanding with honest conversation. Brown stressed the importance of keeping lessons learned in mind today, to avoid repeating our tragic history."We've got to talk to each other, and talk historically, truthfully, about what happened," he said. "And never let anyone else tell your story."View additional multimedia and more ESG storytelling from Regions Bank on 3blmedia.com.Contact Info:Spokesperson: Regions BankWebsite: https://www.3blmedia.com/profiles/regions-bankEmail: [email protected]: Regions BankView the original press release on accesswire.com

ACCESSWIRE

Judge Houston Brown: ‘A Destiny Changer’

https://finance.yahoo.com/news/judge-houston-brown-destiny-changer-173000318.html

88739eb3-3b5c-3222-b6a2-38ef03361072

RF

Honoring and empowering women.NORTHAMPTON, MA / ACCESSWIRE / March 8, 2024 / Regions BankBy Evelyn MitchellMarch is Women's History Month. At Regions, this is a special time to remember the past, celebrate the amazing women in our company and communities, and empower our customers through financial advice and guidance.I AM. WE ARE. - Celebrating Regions TodayOur collective history is part of who we are, and Regions is a stronger company today because of our associates.Meet DanielleI AM a Project Manager for Regions Mortgage division.I AM a member of the Gen Z generation, though I borrow much of my music taste from Gen X (thanks mom and dad!).I AM a lifelong learner and passionately curious about the world around me.I AM an energetic volunteer and mental health advocate.I AM a proud sister, daughter, granddaughter, niece, and friend.During Women's History Month, and every month, I AM grateful for the women who came before me and stand beside me, offering guidance, support, and encouragement to help me become a better version of myself every day.WE ARE REGIONS:Because of who I AM, WE ARE more curious, passionate, and futuristic!Meet FloreshaI AM a Community Relations Officer at Regions.I AM a mom, I AM a daughter, I AM a sister, I AM an auntie.I AM a kidney donor. Sharing this gift with my big brother meant the world to me.I AM the daughter of a veteran.I AM a Black woman.I AM a friend.I AM a community partner.During Women's History Month, I honor the contributions of trailblazing women who have fought for justice. Their dedication and courage have helped shape our world and continue to inspire generations.WE ARE REGIONS:Because of who I AM, WE ARE more aware, purposeful and inclusive.Empowering Women through Financial GuidanceAt Regions we are committed to empowering our customers and offering financial advice and guidance all year round.Regions Next Step financial wellness resources are designed to bolster money management skills and financial confidence for consumers and associates alike.Story continuesAnd, Regions' newly launched Women + Wealth program delivers timely advice, guidance and resources that women can implement in making key financial decisions. Highlights include:6 Money Management Tips for Women in their 20s and 30sWomen & Investing: A Fresh PerspectiveFinancially Confident Women - Wealth PodcastRegions DEI Areas of ImpactDEI activities at Regions are focused on three areas of impact: workforce, workplace and marketplace.​​​​​​​Workforce: View inclusion as a competitive advantage, with the goal of attracting, developing, and retaining talent.Workplace: Create and maintain a work environment that is inclusive and where associates are encouraged to collaborate across differences.Marketplace: Utilize DEI and social responsibility focus to strengthen our relationships with communities, clients, customers, and external stakeholders.View additional multimedia and more ESG storytelling from Regions Bank on 3blmedia.com.Contact Info:Spokesperson: Regions BankWebsite: https://www.3blmedia.com/profiles/regions-bankEmail: [email protected]: Regions BankView the original press release on accesswire.com

ACCESSWIRE

Regions Bank Celebrates Women’s History Month

https://finance.yahoo.com/news/regions-bank-celebrates-women-history-173000905.html

d6df450e-2dab-3592-aa26-a9eccb1ec18e

RHI

Insights into Robert Half Inc's Upcoming Dividend Payment and PerformanceRobert Half Inc (NYSE:RHI) recently announced a dividend of $0.53 per share, payable on 2024-03-15, with the ex-dividend date set for 2024-02-22. 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 Robert Half Inc's dividend performance and assess its sustainability.What Does Robert Half Inc Do?Warning! GuruFocus has detected 5 Warning Sign with RHI.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?Founded in 1948, Robert Half provides temporary, permanent, and outcome-based staffing for both in-person and remote positions in the finance and accounting, technology, legal, marketing, and administrative fields. Its subsidiary consulting arm, Protiviti, specializes in technology, risk, auditing, and compliance matters. The firm generates most of its sales inside the U.S. and stands as one of the largest specialized firms in the highly fragmented U.S. staffing industry. The firm generates annual revenue of around $7 billion.Robert Half Inc's Dividend AnalysisA Glimpse at Robert Half Inc's Dividend HistoryRobert Half Inc has maintained a consistent dividend payment record since 2004, distributing dividends on a quarterly basis. The stock is also recognized as a dividend achiever, a prestigious title awarded to companies that have increased their dividend each year for at least the past 20 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.Robert Half Inc's Dividend AnalysisBreaking Down Robert Half Inc's Dividend Yield and GrowthAs of today, Robert Half Inc currently has a 12-month trailing dividend yield of 2.42% and a 12-month forward dividend yield of 2.66%, suggesting an expectation of increased dividend payments over the next 12 months.Over the past three years, Robert Half Inc's annual dividend growth rate was 12.20%, which decreased slightly to 11.40% per year over a five-year horizon. However, over the past decade, the company's dividends per share have grown at an impressive annual rate of 11.60%.Story continuesBased on Robert Half Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Robert Half Inc stock as of today is approximately 4.15%.The 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. As of 2023-12-31, Robert Half Inc's dividend payout ratio is 0.59, indicating a balance between distributing earnings to shareholders and retaining funds for future growth and downturns.Robert Half Inc's profitability rank of 8 out of 10, as of 2023-12-31, suggests good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its strong profitability.Growth Metrics: The Future OutlookRobert Half Inc's growth rank of 8 out of 10 indicates a positive growth trajectory relative to its competitors. The company's revenue per share and 3-year revenue growth rate of approximately 10.20% per year outperforms 66.19% of global competitors.Robert Half Inc's 3-year EPS growth rate of approximately 14.00% per year surpasses 54.81% of global competitors. Additionally, the 5-year EBITDA growth rate of 6.40% outperforms 45.13% of global competitors, signaling a strong potential for continued dividend payments.Next StepsIn conclusion, Robert Half Inc's consistent dividend payments, impressive dividend growth rate, balanced payout ratio, strong profitability, and robust growth metrics make it an attractive option for investors seeking steady income. The company's financial health and industry position suggest a sustainable dividend outlook, providing a sense of security for income-focused portfolios.For investors seeking to expand their portfolio with similar opportunities, GuruFocus Premium users can leverage the High Dividend Yield Screener to identify high-dividend yield stocks.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

Robert Half Inc's Dividend Analysis

https://finance.yahoo.com/news/robert-half-incs-dividend-analysis-100935668.html

d97ccfd1-034f-350c-8d5a-53eccb55c134

RHI

MENLO PARK, Calif., Feb. 21, 2024 /PRNewswire/ -- Two executives from global talent solutions and business consulting firm Robert Half (NYSE: RHI) have been named to the Staffing Industry Analysts' 2024 North America Staffing 100 list: president and chief executive officer M. Keith Waddell, and president and CEO of talent solutions Paul F. Gentzkow. Each was selected for their outstanding leadership and contributions to the staffing industry.(PRNewsfoto/Robert Half)Since starting with the company as chief financial officer, Waddell has been instrumental in the growth of the business from a $7 million staffing franchisor to a Fortune 500 industry leader. He played a pivotal role in the 2002 launch of Protiviti, the enterprise's global business consulting subsidiary. Since being named president and chief executive officer in 2019, Waddell has prioritized investments in the company's global brand and AI-based technologies to deliver unique and effective solutions to employers and job seekers alike. Under his leadership, the organization has earned several prestigious accolades for its people-first culture, achievements in innovation and contributions as a responsible corporate citizen.At the helm of Robert Half talent solutions, Gentzkow has helped grow this part of the business to more than 300 locations worldwide. He has also overseen the successful addition of several new service lines to offer a full continuum of solutions to clients. Gentzkow's passion for offering world-class service and helping people find meaningful work, combined with a deep understanding of the industry, has helped establish the company as the industry leader. Under his leadership, revenue for the company's talent solutions divisions has grown from $220 million in 1992 to more than $4 billion in 2023.About Robert HalfRobert Half (NYSE: RHI) is the world's first and largest specialized talent solutions firm that connects opportunities at great companies with highly skilled job seekers. Offering contract talent and permanent placement solutions in the fields of finance and accounting, technology, marketing and creative, legal, and administrative and customer support, Robert Half has more than 400 locations worldwide, including nearly 100 locations in 18 countries outside the United States. Robert Half is the parent company of Protiviti®, a global consulting firm that provides internal audit, risk, business and technology consulting solutions. Robert Half, including Protiviti, has been named one of the Fortune® Most Admired Companies™ and 100 Best Companies to Work For and is a Forbes Best Employer for Diversity. Explore our comprehensive solutions, research and insights at RobertHalf.com.Story continues.CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/robert-half-executives-named-to-staffing-industry-analysts-2024-north-america-staffing-100-302067762.htmlSOURCE Robert Half

PR Newswire

Robert Half Executives Named to Staffing Industry Analysts' 2024 North America Staffing 100

https://finance.yahoo.com/news/robert-half-executives-named-staffing-180000210.html

e236664b-eec4-3920-a3cb-e92b7b755731

RHI

A month has gone by since the last earnings report for Robert Half (RHI). Shares have added about 0.8% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Robert Half 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 drivers.Robert Half Q4 Earnings Beat EstimatesRobert Half International reported better-than-expected fourth-quarter 2023 results.Quarterly earnings of 83 cents per share beat the consensus mark by 1.2% but declined 39.4% year over year. Revenues of $1.5 billion beat the consensus mark by a slight margin but decreased 14.7% year over year.Talent Solutions Revenues Down, Protiviti FallTalent Solutions’ revenues of $1 billion decreased 18% year over year on an as-adjusted basis. U.S. Talent Solutions’ revenues of $764 million were down 21% year over year. Non-U.S. Talent Solutions revenues decreased 10% year over year on an adjusted basis to $245 million.Protiviti revenues came in at $464 million, down 8% year over year on an as-adjusted basis. U.S. Protiviti revenues of $372 million declined 7% year over year on an as-adjusted basis. Non-U.S. Protiviti revenues of $92 million declined 9% year over year on an as-adjusted basis.The quarter had 61.1 billing days compared with 61.2 billing days in the year-ago quarter. At present, Robert Half operates 313 talent solutions locations worldwide, with 89 locations situated in 18 countries outside the United States. Currency exchange rate movements increased total revenues by $11 million year over year.Margins ContractGross profit in the quarter was $584.2 million, down 18.8% year over year. This compares with our expectation of a gross profit of $586 million, down 18.5% year over year.The gross profit margin of 39.7% declined 197 basis points year over year compared with our expectation of an adjusted gross profit margin of 40%, down 160 basis points year over year.Story continuesKey Balance Sheet and Cash Flow FiguresRobert Half ended the quarter with a cash and cash equivalent balance of $731.7 million compared with the $729.5 million witnessed at the previous quarter end. The company generated $115 million of cash from operations, while capital expenditures were $11.7 million. It paid out $51 million in dividends and repurchased shares worth $56 million in the reported period.Q4 GuidanceFor the first quarter of 2024, Robert Half expects revenues to be $1.44-$1.54 billion. EPS is expected between 54 cents and 68 cents.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.The consensus estimate has shifted -20.66% due to these changes.VGM ScoresCurrently, Robert Half 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 B on the value side, putting it in the top 40% 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, Robert Half 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 reportRobert Half Inc. (RHI) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Robert Half (RHI) Up 0.8% Since Last Earnings Report: Can It Continue?

https://finance.yahoo.com/news/robert-half-rhi-0-8-163039031.html

1a563f8b-d9f5-3d88-b303-7ea4e34f589e

RHI

Robert Half's (NYSE:RHI) stock is up by 1.1% over the past month. Since the market usually pay for a company’s long-term financial health, we decided to study the company’s fundamentals to see if they could be influencing the market. Particularly, we will be paying attention to Robert Half's ROE today.Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. View our latest analysis for Robert Half How Is ROE Calculated?ROE can be calculated by using the formula:Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' EquitySo, based on the above formula, the ROE for Robert Half is:26% = US$411m ÷ US$1.6b (Based on the trailing twelve months to December 2023).The 'return' is the amount earned after tax over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.26 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. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.Robert Half's Earnings Growth And 26% ROEFirst thing first, we like that Robert Half has an impressive ROE. Additionally, the company's ROE is higher compared to the industry average of 12% which is quite remarkable. This likely paved the way for the modest 7.7% net income growth seen by Robert Half over the past five years.Story continuesAs a next step, we compared Robert Half's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 11% in the same period.past-earnings-growthEarnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Has the market priced in the future outlook for RHI? You can find out in our latest intrinsic value infographic research report. Is Robert Half Making Efficient Use Of Its Profits?Robert Half has a three-year median payout ratio of 31%, which implies that it retains the remaining 69% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently.Moreover, Robert Half is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 35%. Accordingly, forecasts suggest that Robert Half's future ROE will be 28% which is again, similar to the current ROE.SummaryIn total, we are pretty happy with Robert Half's performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see a good amount of growth in its earnings. The latest industry analyst forecasts show that the company is expected to maintain its current growth rate. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts 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.

Is Robert Half Inc.'s (NYSE:RHI) Stock's Recent Performance A Reflection Of Its Financial Health?

https://finance.yahoo.com/news/robert-half-inc-nyse-rhi-111348078.html

93976146-c3ee-3e0d-9f6c-abc7befbb136

RJF

ST. PETERSBURG, Fla., Feb. 23, 2024 (GLOBE NEWSWIRE) -- On February 23, 2024, the Raymond James Financial, Inc. (NYSE: RJF) Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.45 per share, payable April 15, 2024 to shareholders of record on April 1, 2024.The Board declared a quarterly dividend of $0.3984375 per depositary share of 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock (NYSE:  RJF PrB) payable April 1, 2024, to shareholders of record on March 15, 2024.About Raymond James Financial, Inc.Raymond James Financial, Inc. (NYSE: RJF) is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations and municipalities. The company has approximately 8,700 financial advisors. Total client assets are $1.38 trillion. Public since 1983, the firm is listed on the New York Stock Exchange under the symbol RJF. Additional information is available at www.raymondjames.com.Forward-Looking StatementsCertain statements made in this press release may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future shareholder distributions. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.Story continuesCONTACT: Media Contact: Steve Hollister Raymond James 727.567.2824 Investor Contact: Kristina Waugh Raymond James 727.567.7654

GlobeNewswire

Raymond James Financial Declares Quarterly Dividends on Common and Preferred Stock

https://finance.yahoo.com/news/raymond-james-financial-declares-quarterly-212300456.html

b43dfe8c-0739-3778-ac49-5dc0d5887199

RJF

Given the reversal in corporate debt and equity issuances and deal-making activities, the Zacks Investment Bank industry is expected to witness a turnaround in investment banking fees in the quarters ahead.Also, heightened client activity in the trading business is expected to continue as uncertainty-induced volatility is likely to persist in the near term. While costs related to technological upgrades might impede bottom-line growth, these will eventually lead to improved operating efficiency. These factors will keep aiding industry players like Interactive Brokers Group, Inc. IBKR, Raymond James Financial, Inc. RJF and Piper Sandler Companies PIPR.Industry DescriptionThe Zacks Investment Bank industry consists of firms that provide financial products and services that include advisory-based financial transactions to corporations, governments and financial institutions worldwide. These started as partnership firms focused on initial public offerings (IPOs), secondary equity offerings, brokerage and mergers and acquisitions (M&As). Gradually, the companies have evolved into providers of various other services, including securities research, proprietary trading and investment management. Therefore, the industry players work mainly through three product segments — investment banking (M&As, advisory services and securities underwriting), asset management and trading and principal investments (proprietary and brokerage trading).3 Themes to Watch in the Investment Bank IndustryUnderwriting and Advisory Business Rebounding: After a sustained weakness in underwriting, IPOs and deal-making activities since 2022 due to geopolitical tensions, global supply-chain disruptions, aggressive monetary policy tightening worldwide to control inflation and potential recession risks, green shoots in advisory and underwriting businesses are visible with the deal pipeline looking healthy.As the macroeconomic environment steadies and the corporates adjust to the high-rate regime, global underwiring and M&A activities will gradually stabilize. Though the ride will be bumpy for investment banks in the near term, the improving operating backdrop will support industry’s players’ revenue growth.Trading Business Offers Some Support: Client activity in the trading business largely depends on the prevalent macroeconomic and geopolitical conditions. Since 2022, market volatility has significantly increased due to several geopolitical and macroeconomic headwinds. Though there has been some stability in the macroeconomic backdrop, markets continue to grapple with high global inflation, high interest rates and other geopolitical matters. So, trading volumes will likely remain decent, driven by solid client activities in equity and fixed-income businesses, thereby boosting industry players’ trading income.Technology to Improve Operating Efficiency: Innovative trading platforms, the use of artificial intelligence (AI) and investments in technology and advertising are likely to aid the operations of investment banks. The industry players are attracting and retaining the best talent for building a leadership team and spending heavily on technology to help clients with infrastructure development and new platforms. While investment banks will likely face increasing technology-related expenses in the near term, these initiatives are expected to improve operating efficiency over time.Story continuesZacks Industry Rank Indicates Bright ProspectsThe Zacks Investment Bank industry is a 14-stock group within the broader Zacks Finance sector. The industry currently carries a Zacks Industry Rank #27, which places it in the top 11% of more than 245 Zacks industries.The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform 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 encouraging earnings outlook for the constituent companies in aggregate. Before we present a few stocks that you may want to buy, let’s take a look at the industry’s recent stock market performance and valuation picture.Industry Underperforms Sector and S&P 500The Zacks Investment Bank industry has underperformed its sector and the S&P 500 over the past three years. While stocks in the industry have collectively gained 3.8%, the S&P 500 composite has jumped 9.3% and the Zacks Finance sector has risen 16.3%.Three-Year Price PerformanceIndustry ValuationOne might get a good sense of the industry’s relative valuation by looking at its price-to-tangible book ratio (P/TBV), commonly used for valuing investment banks because of significant variations in their earnings results from one quarter to the next.The industry currently has a trailing 12-month P/TBV of 4.07X, above the median level of 3.24X, over the past five years. This compares with the highest level of 4.24X and the lowest level of 1.37X over this period. The industry is trading at a considerable discount when compared with the market at large, as the trailing 12-month P/TBV ratio for the S&P 500 is 10.66X and the median level is 10.14X.Price-to-Tangible Book Ratio (TTM) Finance stocks typically have a lower P/TBV ratio, so comparing investment banks with the S&P 500 may not make sense to many investors. However, comparing the group’s P/TBV ratio with that of the broader sector ensures that the group is trading at a decent discount. The Zacks Finance sector’s trailing 12-month P/TBV ratio of 4.87X and the median level of 4.26X for the same period are above the Zacks Investment Bank industry’s respective ratios.Price-to-Tangible Book Ratio (TTM)3 Investment Banks Worth Betting onInteractive Brokers: This Zacks Rank #2 (Buy) company operates as an automated global electronic market maker and broker. The company, based in Greenwich, CT, specializes in routing orders, apart from executing and processing trades in securities, futures, foreign exchange instruments, bonds and mutual funds on more than 135 electronic exchanges and market centers worldwide. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Since its inception, Interactive Brokers has been chiefly focusing on developing proprietary software to automate broker-dealer functions, which has resulted in steady top-line improvement. Also, innovative products and measures taken to enhance global presence are expected to strengthen the company’s position in the online brokerage space.Though rising expenses act as a deterrent, IBKR continues to explore opportunities in emerging markets. Further, given the rapid growth of its European business, the company has substantially expanded its operations there. These efforts help diversify its operations and gain revenue stability.Shares of the company, which has a market cap of $44.9 billion, have rallied 14.4% over the past six months. The Zacks Consensus Estimate has moved almost 1% north to $6.07 for 2024 in the past 30 days.Price and Consensus: IBKR Raymond James: This is a diversified company based in St. Petersburg, FL. The company, along with its subsidiaries, provides financial services mainly in the United States, Canada and the U.K.RJF, with a Zacks Rank #2, has inked several strategic deals over the past years, which has also helped its expansion into Europe and Canada. In fiscal 2023, the company acquired Canada-based Solus Trust Company Limited, while in fiscal 2022, it acquired SumRidge Partners, TriState Capital Holdings and the U.K.-based Charles Stanley Group PLC. These deals, along with several past ones, poise Raymond James well for future growth. Management looks forward to actively growing through acquisitions with an aim to strengthen the Private Client Group and Asset Management segments further.Though steadily rising expenses make us apprehensive, a strong balance sheet and investment-grade long-term credit ratings from leading credit rating agencies are likely to continue supporting growth. Also, Raymond James’ robust capital deployments reflect a solid liquidity position and will keep enhancing shareholder value.With a market cap of $24.8 billion, Raymond James is expected to continue benefiting from its scale and business expansion initiatives. Its shares have rallied 14.9% over the past six months. The Zacks Consensus Estimate for fiscal 2024 earnings has remained unchanged at $9.20 over the past 30 days.Price and Consensus: RJF Piper Sandler: It operates as an investment bank and institutional securities firm. This Zacks Rank #1 company, based in Minneapolis, MN, offers investment banking and institutional sales, trading and research services. Also, PIPR provides advisory and underwriting services.The company has been enhancing its scale and capabilities through strategic buyouts. These have not only diversified its revenue base but also expanded PIPR’s sector coverage, geographical footprint and market share.Thus, through its scaled platform, Piper Sandler has been witnessing robust top-line growth. As the company continues to hire exceptional talent and broadens industry and product coverage, further top-line growth is anticipated despite near-term industry-wide headwinds.PIPR has a market cap of $2.9 billion. Over the past six months, shares of the company have jumped 28.9%. The Zacks Consensus Estimate for 2024 earnings has been revised 9.1% upward to $11.17 over the past 30 days.Price and Consensus: PIPRWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportInteractive Brokers Group, Inc. (IBKR) : Free Stock Analysis ReportRaymond James Financial, Inc. (RJF) : Free Stock Analysis ReportPiper Sandler Companies (PIPR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

3 Investment Banks to Buy on Rebounding Industry Prospects

https://finance.yahoo.com/news/3-investment-banks-buy-rebounding-132900495.html

6b3711de-1ad8-3cae-8fdf-e8abfe46bb40

RJF

For Immediate ReleaseChicago, IL – February 27, 2024 – Today, Zacks Equity Research discusses Interactive Brokers Group, Inc. IBKR, Raymond James Financial, Inc. RJF and Piper Sandler Companies PIPR.Industry: Investment BanksLink: https://www.zacks.com/commentary/2231428/3-investment-banks-to-buy-on-rebounding-industry-prospectsGiven the reversal in corporate debt and equity issuances and deal-making activities, the Zacks Investment Bank industry is expected to witness a turnaround in investment banking fees in the quarters ahead.Also, heightened client activity in the trading business is expected to continue as uncertainty-induced volatility is likely to persist in the near term. While costs related to technological upgrades might impede bottom-line growth, these will eventually lead to improved operating efficiency. These factors will keep aiding industry players like Interactive Brokers Group, Inc., Raymond James Financial, Inc. and Piper Sandler Companies.Industry DescriptionThe Zacks Investment Bank industry consists of firms that provide financial products and services that include advisory-based financial transactions to corporations, governments and financial institutions worldwide. These started as partnership firms focused on initial public offerings (IPOs), secondary equity offerings, brokerage and mergers and acquisitions (M&As).Gradually, the companies have evolved into providers of various other services, including securities research, proprietary trading and investment management. Therefore, the industry players work mainly through three product segments — investment banking (M&As, advisory services and securities underwriting), asset management and trading and principal investments (proprietary and brokerage trading).3 Themes to Watch in the Investment Bank IndustryUnderwriting and Advisory Business Rebounding: After a sustained weakness in underwriting, IPOs and deal-making activities since 2022 due to geopolitical tensions, global supply-chain disruptions, aggressive monetary policy tightening worldwide to control inflation and potential recession risks, green shoots in advisory and underwriting businesses are visible with the deal pipeline looking healthy.Story continuesAs the macroeconomic environment steadies and the corporates adjust to the high-rate regime, global underwiring and M&A activities will gradually stabilize. Though the ride will be bumpy for investment banks in the near term, the improving operating backdrop will support industry's players' revenue growth.Trading Business Offers Some Support: Client activity in the trading business largely depends on the prevalent macroeconomic and geopolitical conditions. Since 2022, market volatility has significantly increased due to several geopolitical and macroeconomic headwinds. Though there has been some stability in the macroeconomic backdrop, markets continue to grapple with high global inflation, high interest rates and other geopolitical matters. So, trading volumes will likely remain decent, driven by solid client activities in equity and fixed-income businesses, thereby boosting industry players' trading income.Technology to Improve Operating Efficiency: Innovative trading platforms, the use of artificial intelligence (AI) and investments in technology and advertising are likely to aid the operations of investment banks. The industry players are attracting and retaining the best talent for building a leadership team and spending heavily on technology to help clients with infrastructure development and new platforms. While investment banks will likely face increasing technology-related expenses in the near term, these initiatives are expected to improve operating efficiency over time.Zacks Industry Rank Indicates Bright ProspectsThe Zacks Investment Bank industry is a 14-stock group within the broader Zacks Finance sector. The industry currently carries a Zacks Industry Rank #27, which places it in the top 11% of more than 245 Zacks industries.The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform 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 encouraging earnings outlook for the constituent companies in aggregate. Before we present a few stocks that you may want to buy, let's take a look at the industry's recent stock market performance and valuation picture.Industry Underperforms Sector and S&P 500The Zacks Investment Bank industry has underperformed its sector and the S&P 500 over the past three years. While stocks in the industry have collectively gained 3.8%, the S&P 500 composite has jumped 9.3% and the Zacks Finance sector has risen 16.3%.Industry ValuationOne might get a good sense of the industry's relative valuation by looking at its price-to-tangible book ratio (P/TBV), commonly used for valuing investment banks because of significant variations in their earnings results from one quarter to the next.The industry currently has a trailing 12-month P/TBV of 4.07X, above the median level of 3.24X, over the past five years. This compares with the highest level of 4.24X and the lowest level of 1.37X over this period. The industry is trading at a considerable discount when compared with the market at large, as the trailing 12-month P/TBV ratio for the S&P 500 is 10.66X and the median level is 10.14X.Finance stocks typically have a lower P/TBV ratio, so comparing investment banks with the S&P 500 may not make sense to many investors. However, comparing the group's P/TBV ratio with that of the broader sector ensures that the group is trading at a decent discount. The Zacks Finance sector's trailing 12-month P/TBV ratio of 4.87X and the median level of 4.26X for the same period are above the Zacks Investment Bank industry's respective ratios.3 Investment Banks Worth Betting OnInteractive Brokers: This Zacks Rank #2 (Buy) company operates as an automated global electronic market maker and broker. The company, based in Greenwich, CT, specializes in routing orders, apart from executing and processing trades in securities, futures, foreign exchange instruments, bonds and mutual funds on more than 135 electronic exchanges and market centers worldwide. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Since its inception, Interactive Brokers has been chiefly focusing on developing proprietary software to automate broker-dealer functions, which has resulted in steady top-line improvement. Also, innovative products and measures taken to enhance global presence are expected to strengthen the company's position in the online brokerage space.Though rising expenses act as a deterrent, IBKR continues to explore opportunities in emerging markets. Further, given the rapid growth of its European business, the company has substantially expanded its operations there. These efforts help diversify its operations and gain revenue stability.Shares of the company, which has a market cap of $44.9 billion, have rallied 14.4% over the past six months. The Zacks Consensus Estimate has moved almost 1% north to $6.07 for 2024 in the past 30 days.Raymond James: This is a diversified company based in St. Petersburg, FL. The company, along with its subsidiaries, provides financial services mainly in the United States, Canada and the U.K.RJF, with a Zacks Rank #2, has inked several strategic deals over the past years, which has also helped its expansion into Europe and Canada. In fiscal 2023, the company acquired Canada-based Solus Trust Company Limited, while in fiscal 2022, it acquired SumRidge Partners, TriState Capital Holdings and the U.K.-based Charles Stanley Group PLC. These deals, along with several past ones, poise Raymond James well for future growth. Management looks forward to actively growing through acquisitions with an aim to strengthen the Private Client Group and Asset Management segments further.Though steadily rising expenses make us apprehensive, a strong balance sheet and investment-grade long-term credit ratings from leading credit rating agencies are likely to continue supporting growth. Also, Raymond James' robust capital deployments reflect a solid liquidity position and will keep enhancing shareholder value.With a market cap of $24.8 billion, Raymond James is expected to continue benefiting from its scale and business expansion initiatives. Its shares have rallied 14.9% over the past six months. The Zacks Consensus Estimate for fiscal 2024 earnings has remained unchanged at $9.20 over the past 30 days.Piper Sandler: It operates as an investment bank and institutional securities firm. This Zacks Rank #1 company, based in Minneapolis, MN, offers investment banking and institutional sales, trading and research services. Also, PIPR provides advisory and underwriting services.The company has been enhancing its scale and capabilities through strategic buyouts. These have not only diversified its revenue base but also expanded PIPR's sector coverage, geographical footprint and market share.Thus, through its scaled platform, Piper Sandler has been witnessing robust top-line growth. As the company continues to hire exceptional talent and broadens industry and product coverage, further top-line growth is anticipated despite near-term industry-wide headwinds.PIPR has a market cap of $2.9 billion. Over the past six months, shares of the company have jumped 28.9%. The Zacks Consensus Estimate for 2024 earnings has been revised 9.1% upward to $11.17 over the past 30 days.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 reportInteractive Brokers Group, Inc. (IBKR) : Free Stock Analysis ReportRaymond James Financial, Inc. (RJF) : Free Stock Analysis ReportPiper Sandler Companies (PIPR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Zacks Industry Outlook Highlights Interactive Brokers, Raymond James Financial and Piper Sandler

https://finance.yahoo.com/news/zacks-industry-outlook-highlights-interactive-133700276.html

694cebc6-2b26-30b6-8bd1-04d5efa677a4

RJF

CFO Paul Shoukry said the company is very active in M&A conversations, but was taking its time pursuing a deal to ensure it was the right fit at the right price.Continue reading

Barrons.com

Raymond James Eyes Potential Acquisitions, But a Deal Could Still Be Years Away

https://finance.yahoo.com/m/2943892f-9d82-3c9a-a23e-5a0bf509cf22/raymond-james-eyes-potential.html

2943892f-9d82-3c9a-a23e-5a0bf509cf22

RL

Ralph Lauren Corporation RL is well-poised to tap the positive trends in the fashion world, thanks to its digital endeavors and other robust strategies. Undoubtedly, management is focused on enhancing digital capabilities, deepening relations with customers via marketing, expanding international markets and efficiently controlling expenses.Buoyed by such strengths, shares of this apparel and accessories designer have surged 49.8% compared with the industry’s 11.4% growth in the past three months. A VGM Score of A further adds strength to this current Zacks Rank #1 (Strong Buy) company.Let’s Delve DeeperRalph Lauren’s “Next Great Chapter” plan appears encouraging. As part of the plan, the company completed the transition of Chaps to a licensed business, thus concluding the portfolio realignment announced last year. The move will likely enable it to focus on core brands, as part of the “Next Great Chapter” elevation strategy. In addition, the company’s strategy of product elevation, personalized and targeted promotion, disciplined inventory management and favorable channel and geographic mix, bodes well.It is making significant progress in expanding its digital and omnichannel capabilities through investments in mobile, omnichannel and fulfillment. The company remains focused on further digital investments to continue the creation of content for all platforms, expanding digital capabilities to improve the user experience, and continuing to leverage AI and data to serve consumers more efficiently.Zacks Investment ResearchImage Source: Zacks Investment ResearchThe company continues to scale and expand its connected retail capabilities, including virtual selling appointments, “buy online, pick up in store”, endless aisle product availability and more. RL launched its first-ever full catalog Ralph Lauren mobile app, efficiently leveraging its connected retail capabilities to deliver the most personalized and content-rich platform.Ralph Lauren is on track to exceed its top and bottom-line targets under the “Next Great Chapter” plan that was announced in June 2018. Later, it announced measures to accelerate its “Next Great Chapter plan,” which include creating a simplified global organizational structure and rolling out improved technological capabilities.Analysts seem quite optimistic about the company. The Zacks Consensus Estimate for fiscal 2024 sales and earnings per share (EPS) is currently pegged at $6.6 billion and $10.11, respectively. These estimates show corresponding growth of 2.5% and 21.2% year over year. The consensus estimate for fiscal 2025 sales and EPS is presently $6.9 billion and $11.12, respectively, indicating increases of 4.3% and 10%.To wrap up, Ralph Lauren seems to be a decent investment pick given all the aforementioned positives.Story continuesEye These Solid Picks TooSome other top-ranked companies are GIII Apparel GIII, lululemon athletica LULU and Royal Caribbean RCL.GIII Apparel, an accessories dealer, sports a Zacks Rank #1 (Strong Buy), at present. GIII has a trailing four-quarter earnings surprise of 541.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for GIII Apparel’s current financial-year EPS suggests growth of 39.3%, respectively, from the year-ago corresponding figure.lululemon athletica is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank #2 (Buy), at present.The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 18.4% and 23.7%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 9.2%, on average.Royal Caribbean caries a Zacks Rank of 2 at present. RCL has a trailing four-quarter earnings surprise of 28.3%, on average.The Zacks Consensus Estimate for RCL’s 2024 sales and EPS indicates increases of 13.7% and 38.1%, respectively, from the year-ago period’s reported levels.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 reportRoyal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis ReportRalph Lauren Corporation (RL) : Free Stock Analysis Reportlululemon athletica inc. (LULU) : Free Stock Analysis ReportG-III Apparel Group, LTD. (GIII) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Here's Why Ralph Lauren (RL) is Rallying Ahead of the Industry

https://finance.yahoo.com/news/heres-why-ralph-lauren-rl-124200450.html

bfa421a0-9fb7-3578-9ebf-37eeda7be107

RL

Wall Street has been witnessing volatility for the past couple of weeks after a solid January that saw major indexes hitting all-time highs. Inflation rose in January and the Federal Reserve indicated that a rate cut in March is unlikely, which has left investors somewhat concerned.However, consumer sentiment is still high as Americans now believe that the economy is still on solid ground and will have a softer landing than expected earlier as inflation has declined sharply over the past year.The University of Michigan's preliminary index of consumer sentiment came up with a reading of 79.6 in February, up from January’s final reading of 79. The survey's gauge of one-year inflation expectations came in at 3% in February after falling to 2.9% in January.Although inflation increased marginally in January, denting investors’ confidence, the overall sentiment remains upbeat as other economic data remain positive.The U.S. GDP grew 3.3% in the final quarter of 2023. Also, retail sales fell 0.8% in January, which has raised optimism that the Federal Reserve will ultimately go for a rate cut in May, if not March.Markets are pricing in at least five quarter percentage point rate cuts this year, with the first to come in May. Lower interest rates bode well for the broader economy as it lowers borrowing costs.Thus, the economy is poised to do well once the rate cuts come into effect.Our ChoicesWe have narrowed our search to five consumer discretionary stocks such as Cimpress plc CMPR, Dolby Laboratories, Inc. DLB, Netflix, Inc. NFLX, Lululemon Athletica Inc. LULU and Ralph Lauren Corporation RL, which have strong potential for 2024.These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  Cimpress plc is an online supplier of high-quality graphic design services and customized printed products to small businesses and consumers. CMPR’s product offerings include business cards, brochures and websites, e-commerce platforms, calendars, address labels, note pads and signage, among others.Story continuesCimpress’ expected earnings growth rate for the current year is 145.1%. The Zacks Consensus Estimate for current-year earnings has improved 12.3% over the past 60 days. CMPR currently has a Zacks Rank #2.Dolby Laboratories, Inc. develops audio and imaging technologies that revolutionize entertainment for user-generated content, TV shows, films, music, and gaming. A majority of DLB’s revenues is derived from the licensing of audio technologies. Dolby Laboratories operates on various licensing models, including a two-tier model, an integrated licensing model, a patent licensing model, recoveries and collaboration arrangements.Dolby Laboratories’expected earnings growth rate for the current year is 4.8%. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the past 60 days. DLB currently has a Zacks Rank #2.Netflix, Inc. is considered a pioneer in the streaming space. NFLX has been spending aggressively on building its portfolio of original shows. This is helping Netflix sustain its leading position despite the launch of new services like Disney+ and Apple TV+, as well as existing services like Amazon Prime Video.Netflix’s expected earnings growth rate for the current year is 40.7%. The Zacks Consensus Estimate for the current-year earnings has improved 6% over the past 60 days. NFLX currently sports a Zacks Rank #1.Lululemon Athletica Inc. designs, manufactures and distributes athletic apparel and accessories for women, men and female youth. LULU offers a line of apparel assortment, including fitness pants, shorts, tops and jackets designed for a healthy lifestyle and athletic pursuits, such as yoga, training, and running, as well as other sweaty and general fitness under the lululemon athletica brand name.Lululemon Athletica’s expected earnings growth rate for the current year is 23.8%. The Zacks Consensus Estimate for the current-year earnings has improved 0.4% over the past 60 days. LULU presently carries a Zacks Rank #2.Ralph Lauren Corporation is a major designer, marketer and distributor of premium lifestyle products in North America, Europe, Asia, and internationally. RL offers products in the apparel, footwear, accessories, home furnishings, and other licensed product categories.Ralph Lauren’s expected earnings growth rate for the current year is 21.2%. The Zacks Consensus Estimate for the current-year earnings has improved 7.2% over the past 60 days. RL presently sports a Zacks Rank #1.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 reportDolby Laboratories (DLB) : Free Stock Analysis ReportNetflix, Inc. (NFLX) : Free Stock Analysis ReportRalph Lauren Corporation (RL) : Free Stock Analysis Reportlululemon athletica inc. (LULU) : Free Stock Analysis ReportCimpress plc (CMPR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

5 Solid Stocks to Buy on a Steady Rise in Consumer Sentiment

https://finance.yahoo.com/news/5-solid-stocks-buy-steady-131200463.html

8058a408-6227-3c9f-ad6c-524efec4af09

RL

For Immediate ReleaseChicago, IL – March 11, 2024 – Stocks in this week’s article are Cardinal Health Inc. CAH, Toll Brothers TOL, Iron Mountain IRM, NetApp NTAP and Ralph Lauren Corp. RL.5 Dividend Stocks with High Growth ProspectsDividend investing remains a popular choice, irrespective of market conditions. This strategy focuses on companies that not only pay dividends but also consistently increase them over time. This approach offers a unique blend of income and growth potential, appealing to a broad range of investors. Additionally, it provides a sense of security in times of market uncertainty or downturns, as dividend-paying stocks can reduce the volatility of a portfolio and tend to outperform in a choppy market.Stocks with a strong history of year-over-year dividend growth form a healthy portfolio with a greater scope of capital appreciation, as opposed to simple dividend-paying stocks or those that have high yields. We have selected five dividend growth stocks — Cardinal Health Inc., Toll Brothers, Iron Mountain, NetApp and Ralph Lauren Corp. — that could be solid choices for your portfolio.Dividend Growth: A Winning StrategyStocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market and, thus, act as a hedge against economic or political uncertainty, as well as stock market volatility. At the same time, these offer downside protection with their consistent increases in payouts.Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that a dividend increase is likely in the future.Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.Story continuesHere are five of the 11 stocks that fit the bill:Ohio-based Cardinal Health is a nationwide drug distributor and provider of services to pharmacies, healthcare providers and manufacturers. The company saw a positive earnings estimate revision of 16 cents over the past 30 days for the fiscal year (ending June 2024), with an expected earnings growth rate of 25.7%.Cardinal Health presently has a Zacks Rank #1 and a Growth Score of B. You can see the complete list of today's Zacks #1 Rank stocks here.Pennsylvania-based Toll Brothers builds single-family detached and attached home communities, master-planned luxury residential resort-style golf communities, and urban low, mid, and high-rise communities, principally on the land it develops and improves. TOL saw a solid earnings estimate revision of $1.34 over the past 30 days for the fiscal year (ending October 2024) and has an expected earnings growth rate of 9.8%Toll Brothers has a Zacks Rank #1 and a Growth Score of A.Massachusetts-based Iron Mountain provides records and information management services and data center space and solutions in 59 countries. It saw a positive earnings estimate revision of 15 cents over the past 30 days for this year with an estimated earnings growth of 6.3%.Iron Mountain has a Zacks Rank #2 and a Growth Score of B.California-based NetApp provides enterprise storage as well as data management software and hardware products and services. It assists enterprises in managing multiple cloud environments, adopting next-generation technologies like artificial intelligence, Kubernetes, and contemporary databases, and navigating the complexity brought about by the quick development of data and cloud usage.NetApp saw a positive earnings estimate revision of 3 cents for the fiscal year (ending April 2024) over the past 30 days, with an estimated earnings growth rate of 10.7%. NetApp currently sports a Zacks Rank #1 and has a Growth Score of A.New York-based Ralph Lauren is a major designer, marketer and distributor of premium lifestyle products in North America, Europe, Asia and internationally. It offers products in apparel, footwear, accessories, home furnishings and other licensed product categories. The company saw a solid earnings estimate revision of 60 cents over the past month for the fiscal year (ending March 2025) and has an expected earnings growth rate of 9.5%.Ralph Lauren has a Zacks Rank #1 and a Growth Score of A.You can get the remaining stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial to the Research Wizard today.For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2237807/5-dividend-stocks-with-high-growth-prospectsDisclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.About Screen of the WeekZacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.Strong Stocks that Should Be in the NewsMany are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.Follow us on Twitter:  https://www.twitter.com/zacksresearchJoin us on Facebook:  https://www.facebook.com/ZacksInvestmentResearchZacks 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.Contact: Jim GiaquintoCompany: Zacks.comPhone: 312-265-9268Email: [email protected]: https://www.zacks.com/Zacks.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 reportIron Mountain Incorporated (IRM) : Free Stock Analysis ReportNetApp, Inc. (NTAP) : Free Stock Analysis ReportCardinal Health, Inc. (CAH) : Free Stock Analysis ReportRalph Lauren Corporation (RL) : Free Stock Analysis ReportToll Brothers Inc. (TOL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Zacks.com featured highlights include Cardinal Health, Toll Brothers, Iron Mountain, NetApp and Ralph Lauren

https://finance.yahoo.com/news/zacks-com-featured-highlights-cardinal-133300472.html

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JPMorgan raises its price target for Macy's (M) from $23 to $25 but maintains the retailer's Overweight rating. The analyst behind the call cites Macy's attempts to reposition itself for a turnaround, including better margins and sales growth.Yahoo Finance Retail Reporter Brooke DiPalma joins Yahoo Finance to break down the latest developments for Macy's amid its announcement of 150 store closures.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 TranscriptBRIAN SOZZI: JP Morgan's Matt Boss raised his price target on Macy's, $25 from $23. And he kept an overweight rating, which is comparable to a buy rating. For those taking notes at home, the JPM team has those bullish vibes after meeting with the CEO and CFO, saying the retailer is repositioning itself for better margins and sales growth for this year and beyond.JULIE HYMAN: Do you understand this business?BRIAN SOZZI: I understand a Macy's because I could drive to a Macy's. I know what they're doing. So, Matt Boss, really, one of my favorite retail analysts on the Street. And I really-- I find it interesting when he talked about these 150-store closures. Now, Macy's has not disclosed where these stores are closing just yet, only except two locations. What he notes here is that most of these 150 locations are pretty much awful, where Macy's is the lone anchor tenant inside of these malls that are dying.And really, my critique here is for new CEO Tony Spring, who's been at this company for a long time, why haven't these-- closed these stores 10 years ago? I have--JULIE HYMAN: He was been there, but he wasn't running the show.BRIAN SOZZI: But he's decision-maker. And I have a Macy's by me on Long Island. There's nothing left to this mall. There's a Macy's out in Long Island, Massapequa, with a sign out in front--JULIE HYMAN: Well, maybe that's one of the ones they're closing.Story continuesBRIAN SOZZI: We're still open. I hope they do close it because I think the whole mall should be bulldozed, and something else should be put there that is more economic growth friendly. The point being, these stores are not making any money.JULIE HYMAN: Well, you've got a lot of opinions today, Sozz. What would you put there instead of the mall?BRIAN SOZZI: I think it should be a stadium, a sports stadium. In my--JULIE HYMAN: Who's playing there?BRIAN SOZZI: Anybody. But the point is, there's a lot of space there in Massapequa where that Macy's is, and it's just not--JULIE HYMAN: You are--BRIAN SOZZI: All right, we're fired up.JULIE HYMAN: [INAUDIBLE] something today.BRIAN SOZZI: All right, let's bring in Yahoo Finance's Brooke DiPalma into the mix. Brooke, I don't know how you're going to follow that one, but I know you've been covering the Macy's situation very closely, and you've been digging into this Matt Boss note.BROOKE DIPALMA: Yeah, good afternoon to you both. Quite the hyped up crew here we've got on set, but definitely taking a deeper dive into what exactly this means for brands. Brands hoping that maybe that Massapequa stall is actually-- store is one of the good ones to move forward with. JP Morgan definitely dove into what exactly closing these 150 stores and leaving open the 350 stores means for brands like Ralph Lauren, like PVH, Levi, and Tapestry.And initially, you know, JP Morgan really saying here that this protects the long-term viability of the entire store fleet, while also allowing for reinvestment in those go forward locations--JULIE HYMAN: Yeah, it's basically--BROOKE DIPALMA: --in alignment with these vendor partners--JULIE HYMAN: Yeah, it says they want them to do this.BROOKE DIPALMA: [INAUDIBLE] doubling down on those top performing stores. These vendors really hoping to hopefully get rid of those-- what Matthew Boss called those tail end stores, those tail stores, and really double down on the stores that have those top performing vendors and brands, those top selling [INAUDIBLE].BRIAN SOZZI: You know what should go in those stores? A big [? Temu ?] warehouse manufacturer. There we go. Right there. [INAUDIBLE]JULIE HYMAN: Basically, what he's saying is that those-- it's in those vendors' interests.BROOKE DIPALMA: Exactly.JULIE HYMAN: They want them also to close the doors. I also thought it was interesting that Matt Boss made the point that, you say, why didn't this happen earlier? He's saying that this was in the works even before Macy's came under activist pressure.BROOKE DIPALMA: Yeah, and CEO Tony Spring said to Yahoo Finance, this ongoing, bold, new chapter strategy has been going on, has been in the works for more than six months. We know, though, that this activist shareholder, Arkhouse Brigade Capital, coming in with that $6.6 billion bid.And many on the Street saying that Macy's is really seriously considering it here. Some even saying that Tony Spring will stay as CEO under this deal. And when we spoke to Arkhouse, they're really looking at it as both retail and real estate. That also caused lots of skepticism about what Arkhouse's real intentions here. They're telling Yahoo Finance they want both sides of the business here.

Yahoo Finance Video

Macy's store closures: Ripple effect on retail brands?

https://finance.yahoo.com/video/macys-store-closures-ripple-effect-194828562.html

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