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The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. We note that Duke Energy Corporation (NYSE:DUK) does have debt on its balance sheet. But the more important question is: how much risk is that debt creating?When Is Debt Dangerous?Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. If things get really bad, the lenders can take control of the business. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. The first thing to do when considering how much debt a business uses is to look at its cash and debt together. See our latest analysis for Duke Energy What Is Duke Energy's Debt?You can click the graphic below for the historical numbers, but it shows that as of December 2023 Duke Energy had US$79.5b of debt, an increase on US$74.4b, over one year. Net debt is about the same, since the it doesn't have much cash.debt-equity-history-analysisHow Strong Is Duke Energy's Balance Sheet?The latest balance sheet data shows that Duke Energy had liabilities of US$17.3b due within a year, and liabilities of US$109.4b falling due after that. Offsetting these obligations, it had cash of US$253.0m as well as receivables valued at US$4.13b due within 12 months. So it has liabilities totalling US$122.3b more than its cash and near-term receivables, combined.Story continuesThis deficit casts a shadow over the US$71.5b company, like a colossus towering over mere mortals. So we definitely think shareholders need to watch this one closely. After all, Duke Energy would likely require a major re-capitalisation if it had to pay its creditors today.We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.Duke Energy shareholders face the double whammy of a high net debt to EBITDA ratio (6.4), and fairly weak interest coverage, since EBIT is just 2.4 times the interest expense. The debt burden here is substantial. Fortunately, Duke Energy grew its EBIT by 8.3% in the last year, slowly shrinking its debt relative to earnings. There's no doubt that we learn most about debt from the balance sheet. But ultimately the future profitability of the business will decide if Duke Energy can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So it's worth checking how much of that EBIT is backed by free cash flow. In the last three years, Duke Energy created free cash flow amounting to 15% of its EBIT, an uninspiring performance. That limp level of cash conversion undermines its ability to manage and pay down debt.Our ViewOn the face of it, Duke Energy's net debt to EBITDA left us tentative about the stock, and its level of total liabilities was no more enticing than the one empty restaurant on the busiest night of the year. But at least it's pretty decent at growing its EBIT; that's encouraging. We should also note that Electric Utilities industry companies like Duke Energy commonly do use debt without problems. We're quite clear that we consider Duke Energy to be really rather risky, as a result of its balance sheet health. So we're almost as wary of this stock as a hungry kitten is about falling into its owner's fish pond: once bitten, twice shy, as they say. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately, every company can contain risks that exist outside of the balance sheet. Be aware that Duke Energy is showing 1 warning sign in our investment analysis , you should know about...At the end of the day, it's often better to focus on companies that are free from net debt. You can access our special list of such companies (all with a track record of profit growth). It's free.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 Duke Energy (NYSE:DUK) A Risky Investment?

https://finance.yahoo.com/news/duke-energy-nyse-duk-risky-110010868.html

fb8c2895-b575-3d3f-9a83-15e0803cb74a

DUK

Duke Energy (NYSE:DUK) Full Year 2023 ResultsKey Financial ResultsRevenue: US$28.6b (up 1.0% from FY 2022).Net income: US$4.18b (up 11% from FY 2022).Profit margin: 15% (up from 13% in FY 2022).EPS: US$5.43 (up from US$4.89 in FY 2022).earnings-and-revenue-growthAll figures shown in the chart above are for the trailing 12 month (TTM) periodDuke Energy EPS Misses ExpectationsRevenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 36%.Looking ahead, revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Electric Utilities industry in the US.Performance of the American Electric Utilities industry.The company's share price is broadly unchanged from a week ago.Risk AnalysisWe don't want to rain on the parade too much, but we did also find 2 warning signs for Duke Energy (1 is significant!) that you need to be mindful 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.

Duke Energy Full Year 2023 Earnings: EPS Misses Expectations

https://finance.yahoo.com/news/duke-energy-full-2023-earnings-101549089.html

a9e011be-e378-313c-accd-2f8f84c6fcc8

DUK

Regional Lineman's Rodeo events test job skills critical to power delivery and restoration International Rodeo competition featuring the world's top lineworkers to be held Oct. 19 in Bonner Springs, Kan.ST. PETERSBURG, Fla., March 5, 2024 /PRNewswire/ -- At a competition powered by skill and packed with competitors, 15 Duke Energy Florida lineworkers secured spots over the weekend to compete among the most elite lineworkers in the world this fall at the International Lineman's Rodeo.(PRNewsfoto/Duke Energy)Duke Energy's Florida Lineman's Rodeo in Winter Garden was one of three regional Lineman's Rodeos that will take place this spring across Duke Energy's service areas, displaying the talent and skills of the company's dedicated lineworkers. Lineman's rodeos are specialized contests that test job-related skills line technicians rely on daily to restore power day and night – often in unpredictable outdoor conditions. Events take place on de-energized equipment in a simulated environment, but participants are scored based on simulations of on-the-job work, with deductions for mistakes. Competitors are judged on efficiency, agility, technique and safety procedures.Categories scored included equipment repair, pole climbs and hurt man rescues. Duke Energy holds three regional competitions to qualify lineworkers for the international competition – including in the Carolinas, Florida and the Midwest.The Florida rodeo this year included one senior team, 11 journeyman teams and nearly 80 apprentices. Team divisions are based in part on tenure. An apprentice is a lineworker with less than four years of utility experience. A journeyman or senior journeyman with Duke Energy has more than four years of utility experience. The senior division in a Lineman's Rodeo denotes lineworkers who are 50 years old or older."Our customers and communities depend on us to keep the power flowing 24/7, 365 days a year," said Barry Anderson, Duke Energy Florida senior vice president of customer delivery. "We participate in these rodeo competitions to not only sharpen our skills as lineworkers, but to make sure we are working at the highest level of safety, integrity and service for our customers and our peers." Story continuesElevated expertiseDuke Energy Florida regional rodeo winners will join other top lineworkers from Duke Energy rodeos in Florida and the Midwest to compete in the International Lineman's Rodeo in Bonner Springs, Kan., on Oct. 19, an international event that attracts the most talented lineworkers from around the world. The best lineworkers at Duke Energy and its legacy companies have showcased their talents at the International Lineman's Rodeo for more than two decades."I got into line work just because of my love of the outdoors, helping people and turning the lights on," said Eric Polous, Duke Energy Florida lineworker from the Odena Operations Center. "It was a great competition. We came down here and we never competed together. We grew together as a team and won third place. We are going to Kansas, and we are excited to go."Duke Energy Florida competitors advancing from regional rodeos to the International Lineman's Rodeo include:Apprentice Overall Awards First place – Alejandro Guillen, St. Petersburg, Fla.Second place – Steele Conlin, Longwood, Fla.Third place – Tyler Farmer, Longwood, Fla.Journeyman Overall Awards First place – Brandon Bagley, Buena Vista, Fla.                    Zachary Bichard, Buena Vista, Fla.                     Ivan White, Buena Vista, Fla.Second place – Steven J. Goepfert, Dunnellon, Fla.                          Lars Graylin Langlo, Inverness, Fla.                          Kyle Metz, Brooksville, Fla.Third place – Justin Mathes, Crawfordville, Fla.                      Eric Polous, Odena, Fla.                      Tim West, Odena, Fla.Journeyman Senior Overall Awards First place – Chet Braden, Walsingham, Fla.                     Ed Filor, Inverness, Fla.                     Henry Shupe, Seven Springs, Fla."For me, it's extremely rewarding to be able to do this in front of my children and family. To be able to pay back to all the volunteers and everybody who put in for a good day at the rodeo," said Ivan White, Duke Energy Florida lineworker and lead health & safety professional.Duke Energy employs nearly 1,000 lineworkers across its Florida service area.The Florida Lineman's Rodeo was supported by volunteers and vendors from across the Duke Energy community. A record-breaking number of more than 50 vendors also supported this year's event and more than 80 volunteer students from four colleges including St. Petersburg College, South Florida State College, Valencia College and Northwest Lineman College attended the event and had the opportunity to meet and speak with Duke Energy leadership."It's a good time with good friends, good family and just a great opportunity to show off our trade," said Zachary Bichard, Duke Energy Florida lineworker from the Buena Vista Operations Center.Powering the future gridLineworkers play a key role in power grid improvement projects that help modernize and strengthen Duke Energy's system against storms and other impacts, making it more reliable and resilient. This can include work to upgrade lines and poles, underground outage-prone lines where data indicates it makes sense to do so, and enhancing grid reliability through the integration of smart, self-healing technology – which saved more than 35 million minutes of total lost outage time last year in Florida.Hiring and developing entry-level craft and skilled talent is critical to address the growing needs of residential and non-residential customers, as well as to deploy a cleaner, diverse energy mix to meet current and future needs for these customers and their communities. These vital employees also help enable the connection of more renewables and added protection from cybersecurity and physical threats.Duke Energy continues to hire lineworker talent and works closely with community colleges across its company footprint to recruit diverse, skilled candidates. Individuals interested in a lineworking career with Duke Energy should contact community colleges directly for more information on their specific lineworker training programs including available funding for tuition. Duke Energy FloridaDuke Energy Florida, a subsidiary of Duke Energy, owns 10,500 megawatts of energy capacity, supplying electricity to 1.9 million residential, commercial and industrial customers across a 13,000-square-mile service area in Florida.Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. Its electric utilities serve 8.2 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 50,000 megawatts of energy capacity. Its natural gas unit serves 1.6 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The company employs 27,600 people.Duke Energy is executing an aggressive clean energy transition to achieve its goals of net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company has interim carbon emission targets of at least 50% reduction from electric generation by 2030, 50% for Scope 2 and certain Scope 3 upstream and downstream emissions by 2035, and 80% from electric generation by 2040. In addition, the company is investing in major electric grid enhancements and energy storage, and exploring zero-emission power generation technologies such as hydrogen and advanced nuclear.Duke Energy was named to Fortune's 2023 "World's Most Admired Companies" list and Forbes' "World's Best Employers" list. More information is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos and videos. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.Media contact: Audrey StaskoMedia line: 800.559.3853CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/duke-energys-florida-linemans-rodeo-qualifies-15-local-lineworkers-to-compete-in-international-event-302080381.htmlSOURCE Duke Energy

PR Newswire

Duke Energy's Florida Lineman's Rodeo qualifies 15 local lineworkers to compete in international event

https://finance.yahoo.com/news/duke-energys-florida-linemans-rodeo-182700864.html

310a7da2-5e70-3cba-8f28-679681b11e59

DUK

Funding will support 34 nonprofit and government agencies across the company's Indiana service territoryPLAINFIELD, IN / ACCESSWIRE / March 7, 2024 / First responders across Indiana, including local police, fire and emergency management agencies (EMAs), will benefit from more than $200,000 in grants from the Duke Energy Foundation. The funding will help public safety agencies increase their response capabilities during severe weather and other emergencies through advanced preparation, planning, equipment and training."When severe weather strikes, we rely on strong partnerships with local emergency management and law enforcement agencies to effectively respond and restore power in affected communities," said Stan Pinegar, president of Duke Energy Indiana. "These grants will help give first responders the tools and training they need to respond to any emergency."During major emergencies and natural disasters, local emergency management agencies play a critical role in providing information, resources and support that Duke Energy relies on to speed power restoration for its customers."Successful preparedness, response and recovery requires a community approach," said Sean Stoops, chief of the Avon Police Department. "We envisioned equipping all of our patrol vehicles with automated external defibrillators (AEDs). With the support of Duke Energy and other community partners, we were able to bring that goal to fruition, purchasing 35 AEDs that our officers can use to deliver life-saving measures to a person in cardiac arrest."Grants were awarded to the following organizations:Bartholomew County EMA$8,000 to purchase new water rescue equipment, including a new motor for an airboatBartholomew County Sheriff's Office$5,000 to support public safety measures and preparations ahead of the total solar eclipse on April 8, 2024Brown County EMA$5,500 to help equip a Brown County EMA emergency operations center with computers, monitors, software and other electrical componentsStory continuesCass County EMA$4,000 to sponsor a hazardous materials technician certification courseCity of Brazil Fire Department$7,500 to support the department's efforts to promote its "Free Smoke Detector Program"City of Clinton Fire Department$7,000 to support the department's water rescue unit with the purchase of a sonar unit, anchors, throw bags and medical itemsCity of Delphi Police Department$6,500 to support the purchase of a vehicle that can access trails and other confined areas in emergenciesCity of Greencastle Fire Department$7,500 to support emergency preparedness and trainingClark County EMA$2,750 to purchase a rescue boat that can be used during water rescue emergenciesCrawford County EMA$2,750 to provide weather radios to local residentsFayette County EMA$10,000 to purchase portable, two-way radios and firefighter breathing apparatusFloyd County EMA$2,750 to provide weather radios to local residentsFountain County EMA$2,205 to purchase safety cones that can be used to block restricted areasFranklin County EMA$10,000 to fund new equipment and training, including an unmanned aerial vehicle with thermal and infrared technology, water rescue equipment, and mass sheltering items such as cots and personal care kitsFulton County EMA$5,000 to conduct a hazardous materials tabletop exerciseGibson County EMA$11,000 to provide education and training for first respondersHamilton County EMA$10,000 to enhance community outreach and preparedness educationHarrison County EMA$2,750 to purchase an unmanned aerial vehicle that can be deployed in planning and response operationsHuntington County EMA$5,000 to purchase various supplies and equipment, including uniformsJefferson County EMA$2,799 to purchase an unmanned aerial vehicleJennings County EMA$5,000 to equip the department's disaster response vehicle with a thermal imaging camera and provide weather alert radios to local residentsKnox County EMA$11,000 to purchase cots and amenities for displaced residents during emergenciesLawrence County EMA$5,500 to purchase a generator that can provide back-up power to a Lawrence County EMA facility in an emergencyMonroe County EMA$5,500 to provide weather radios to local residentsMontgomery County Emergency Response Team$6,785 to support the purchase of a small, enclosed trailer equipped with thermal blankets, cooling towels, an electric kettle, instant hot packs, an electric heater and other supplies that support firefighter rehabilitationOrange County EMA$5,500 to provide weather radios to local residentsScott County EMA$2,750 to purchase an unmanned aerial vehicleSwitzerland County EMA$9,000 to purchase firefighter equipmentTippecanoe County Surveyor's Office$6,510 to purchase rescue helmetsTown of Avon Police Department$22,000 to equip patrol vehicles with AEDsTown of Cambridge City Fire Department$3,500 to purchase new firefighter bootsTown of Converse Volunteer Fire Company$10,000 to purchase a thermal imaging cameraTown of Dunreith Fire Department$4,000 to purchase new firefighter bootsWashington County EMA$2,750 to provide weather radios to local residentsDuke Energy FoundationThe Duke Energy Foundation provides philanthropic support to meet the needs of communities where Duke Energy customers live and work. The Foundation contributes more than $2 million annually in charitable gifts to Indiana and is funded by Duke Energy shareholder dollars. More information about the Foundation and its Powerful Communities program can be found at duke-energy.com/Foundation.Duke Energy IndianaDuke Energy Indiana, a subsidiary of Duke Energy, provides about 6,300 megawatts of owned electric capacity to approximately 890,000 customers in a 23,000-square-mile service area, making it Indiana's largest electric supplier.Contact: McKenzie Barbknecht24-Hour: 800.559.3853View original content here.View additional multimedia and more ESG storytelling from Duke Energy on 3blmedia.com.Contact Info:Spokesperson: Duke EnergyWebsite: https://www.3blmedia.com/profiles/duke-energyEmail: [email protected]: Duke EnergyView the original press release on accesswire.com

ACCESSWIRE

Duke Energy Supports Fellow First Responders With More Than $200,000 in Grants for Emergency Preparedness in Indiana

https://finance.yahoo.com/news/duke-energy-supports-fellow-first-133000382.html

7c04ff65-de41-3bc6-9e8d-5ccd4269ba19

DVA

Lantheus Holdings, Inc. LNTH has been gaining from its focus on pipeline development. The optimism led by a solid fourth-quarter 2023 performance and strength in radiopharmaceuticals are expected to contribute further. However, dependence upon third parties and macroeconomic concerns are major downsides.Over the past year, the Zacks Rank #1 (Strong Buy) stock has lost 8.8% against the 7.8% gain of the industry. The S&P 500 has witnessed 28.7% growth in the said time frame.The renowned radiopharmaceutical-focused player has a market capitalization of $4.54 billion. The company projects 0.6% growth for 2024 and expects to witness continued improvements in its business. Lantheus’ earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 14.8%.Zacks Investment ResearchImage Source: Zacks Investment ResearchLet’s delve deeper.Pipeline Development: We are optimistic about Lantheus actively developing its pipeline with promising assets like PNT2002 and PNT2003. In December 2022, the company announced the closing of a set of strategic collaborations with POINT Biopharma Global Inc. (POINT). This granted Lantheus a license to exclusive worldwide rights (excluding Japan, South Korea, China including Hong Kong, Macau and Taiwan; Singapore and Indonesia) to co-develop and commercialize POINT’s PNT2002 and PNT2003 product candidates.Strength in Radiopharmaceuticals: Lantheus has established itself as a leader in the radiopharmaceutical sector, particularly in prostate-specific membrane antigen (PSMA) positron emission tomography (PET) imaging, where its product, PYLARIFY, has a strong demand. Based on estimates from third-party sources regarding the incidence of prostate cancer in men in the United States, Lantheus believes the market potential for PSMA PET imaging agents in the United States could be up to 350,000 annual scans, comprised of 125,000 scans for patients with an intermediate, unfavorable or high or very high risk of suspected metastases of prostate cancer and 195,000 scans for patients with suspected recurrence of prostate cancer, among others.Story continuesStrong Q4 Results: Lantheus saw solid top-line and bottom-line performances in fourth-quarter 2023. Strong segmental performances were also registered, with continued strength in PYLARIFY and DEFINITY. The expansion of gross margin was also seen.DownsidesMacroeconomic Concerns: Lantheus’ operational and financial success are significantly influenced by various factors, many of which are outside its control. The current economic environment and financial market conditions present unpredictable challenges to the business. There is a risk of reduced demand for healthcare services and pharmaceuticals due to various factors, which could affect revenues. This, in turn, might result in delayed or canceled orders, impacting the company's financial stability and liquidity.Dependence Upon Third Parties: PYLARIFY is produced by a network of PET manufacturing facilities (PMFs) across the nation, each requiring separate FDA approval. Despite ongoing efforts to qualify additional PMFs, there's uncertainty regarding the FDA's continued approvals and the PMFs' manufacturing capabilities, which could impact Lantheus’ future operations and financial health.Estimate TrendLantheus has been witnessing a positive estimate revision trend for 2024. Over the past 90 days, the Zacks Consensus Estimate for its earnings per share has moved 3.1% north to $6.27.The Zacks Consensus Estimate for first-quarter 2024 revenues is pegged at $334 million.Other Key PicksA few other top-ranked stocks in the broader medical space are DaVita Inc. DVA, Cardinal Health, Inc. CAH and DexCom, Inc. DXCM.DaVita, sporting a Zacks Rank #1, has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.DaVita’s shares have gained 51.2% compared with the industry’s 12.6% rise in the past year.Cardinal Health, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 15.9%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.Cardinal Health has gained 39.6% compared with the industry’s 14.9% rise in the past year.DexCom, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 33.1%. DXCM’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 32.8%.DexCom’s shares have rallied 5.1% compared with the industry’s 11% rise 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 reportDaVita Inc. (DVA) : Free Stock Analysis ReportCardinal Health, Inc. (CAH) : Free Stock Analysis ReportDexCom, Inc. (DXCM) : Free Stock Analysis ReportLantheus Holdings, Inc. (LNTH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Here's Why You Should Add Lantheus (LNTH) to Your Portfolio

https://finance.yahoo.com/news/heres-why-add-lantheus-lnth-160000752.html

c9a8fe2b-bd2e-3f73-9d93-6b9d394c30fd

DVA

ClearPoint Neuro, Inc. CLPT recently announced its receipt of the FDA’s clearance and first-in-human cases using the ClearPoint 2.2 Software with integrated Maestro Brain Modeling. The company also announced the publication of a key validation study for its ClearPoint Maestro Brain Model in the peer-reviewed journal NeuroImage.The first clinical cases using ClearPoint 2.2 were completed successfully in the current quarter. The company expects a full market release in the second half of 2024.The latest regulatory approval is likely to be a significant stepping stone for ClearPoint Neuro and boost its business.Significance of the ApprovalManagement believes that the Maestro Brain Model and its integration into the recently FDA-cleared ClearPoint 2.2 navigation software is expected to now offer fast, peri-procedural segmentation of the cortical structures of the brain to identify both targets and safety zones for cell and gene therapy delivery, laser ablation, biopsy and deep brain stimulation.Per management, the announcement that one of many planned validation studies has been published in NeuroImage will likely give surgeons confidence in the performance and accuracy of the Maestro Tool.Industry ProspectsPer a report by MarketsandMarkets, the global neuromodulation market was estimated at $6.2 billion in 2023 and is anticipated to reach $11 billion by 2028 at a CAGR of 12%. Factors like the rising prevalence of neurological disorders and the increasing adoption of innovative neuromodulation devices are likely to drive the market.Given the market potential, the latest regulatory clearance will likely provide a significant impetus to ClearPoint Neuro’s business.Notable DevelopmentsLast month, ClearPoint Neuro announced the installation and completion of an initial procedure with both the ClearPoint Prism Neuro Laser Therapy System and the ClearPoint Neuro Navigation System.The same month, ClearPoint Neuro announced its receipt of the FDA’s 510(k) clearance for its SmartFrame OR Stereotactic System. The system is expected to offer flexible workflows to surgeons (including iCT forward projection), thereby enabling precise image-based corrections to achieve sub-millimetric accuracy.Story continuesAlso, in January, ClearPoint Neuro announced its preliminary results for the fourth quarter and full year 2023. Per the results, the company expects its fourth-quarter 2023 revenues to be approximately $6.8 million, up 32% year over year. Biologics and drug delivery revenues are likely to be $4.1 million, up 76% year over year.Price PerformanceShares of the company have lost 12.7% in the past year against the industry’s 11% rise and the S&P 500's 28.7% growth.Zacks Investment ResearchImage Source: Zacks Investment ResearchZacks Rank & Key PicksCurrently, ClearPoint Neuro carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, Cardinal Health, Inc. CAH and DexCom, Inc. DXCM.DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.DaVita’s shares have gained 51.2% compared with the industry’s 12.6% rise in the past year.Cardinal Health, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 15.9%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.Cardinal Health has gained 39.6% compared with the industry’s 14.9% rise in the past year.DexCom, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 33.1%. DXCM’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 32.8%.DexCom’s shares have rallied 5.1% compared with the industry’s 11% rise 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 reportDaVita Inc. (DVA) : Free Stock Analysis ReportCardinal Health, Inc. (CAH) : Free Stock Analysis ReportDexCom, Inc. (DXCM) : Free Stock Analysis ReportClearPoint Neuro, Inc. (CLPT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

ClearPoint Neuro (CLPT) Gets FDA's Nod for New Software

https://finance.yahoo.com/news/clearpoint-neuro-clpt-gets-fdas-160100106.html

3458ad74-981a-3615-8ad4-66d51bbb7869

DVA

GE HealthCare Technologies Inc. GEHC announced the publication of data that depicts its artificial intelligence (AI) models’ ability to accurately predict patient responses to immunotherapies.The study collected clinical data to accurately predict the effectiveness and toxicity of cancer immunotherapy. A pan-cancer sample's data revealed that the company’s AI models' accuracy ranged from 70% to 80%.Price PerformanceIn the past six months, GEHC shares have grown 40.9% compared with the industry’s rise of 12.4%. The S&P 500 has gained 13.1% in the same time frame. Zacks Investment ResearchImage Source: Zacks Investment Research More on GE Healthcare AI ModelsPer the press release, this is the first effort to create AI models that can evaluate immunotherapy's risks and benefits using only routinely gathered electronic health record (EHR) data. The fact that inputs like diagnosis codes and medication are easily obtainable in patients' medical records is one of the main benefits of the models employed in this study.From the manually gathered data, only two characteristics were selected — the number of past immune checkpoint inhibitor medications and the smoking status. Clinicians can easily obtain and include these new features in the model.GE HealthCare and Vanderbilt University Medical Center (“VUMC”) retrospectively examined and correlated the immunotherapy responses for thousands of VUMC cancer patients to create the models. They made use of de-identified genetic, cellular, proteomic, tumor, genomic and imaging data from patients.GE HealthCare instructed its models to forecast the chance of a particular patient experiencing an adverse response and the efficacy outcomes. This information might facilitate clinicians in choosing the best treatment plan quickly. It might also help avoid needless side effects and expenses.Benefits of AI IntegrationGE HealthCare is launching products and solutions that actively use the power and capabilities of AI to deliver precision care, which aids clinicians in optimizing care with ease and efficiency.Story continuesThe company’s LOGIQ portfolio’s innovative new features and advanced AI tools are designed to address the evolving requirements of healthcare providers with easy imaging, efficient workflow and Verisound digital and AI solutions, including reporting, fleet management, AI and collaboration tools.GE HealthCare’s focus on innovation is likely to be the key driver in boosting its business. The company’s LOGIQ ultrasound portfolio, are likely to strengthen the company’s capabilities in advancing AI tools and boost its ultrasound business.GE HealthCare plans to commercialize the models once it secures regulatory authorization. Potential fields include clinical decision support and drug development. Because of the models' numerous input characteristics, the business expects to be widely adopted and deployed.Industry ProspectsPer a report by MarketsandMarkets, the global AI in healthcare market size is valued at $20.9 billion in 2024 and is expected to reach $148.4 billion by 2029 at a growth rate of 48.1%.Growth of AI in the healthcare market is driven by the generation of large and complex healthcare datasets, the pressing need to reduce healthcare costs, improving computing power and declining hardware costs, and the rising number of partnerships among different domains in the healthcare sector.Given the market potential of AI in healthcare, GE Healthcare’s AI models are likely to boost its business and increase revenues.Notable DevelopmentsGE Healthcare recently entered a strategic care alliance with OSF HealthCare and Pointcore to help increase clinical and operational efficiencies, standardize care delivery models, and improve patient outcomes across OSF HealthCare. The tie-up is expected to leverage GE HealthCare’s innovative technology and Pointcore’s experience in managing non-clinical matters for hospitals and clinics.The company announced its collaboration with MedQuest Associates to boost multi-site outpatient imaging networks. As a result of this three-year collaboration, GE Healthcare, with its innovative technologies, along with MedQuest’s outpatient imaging facilities, is set to optimize imaging solutions and support Theranostics.GE HealthCare Technologies Inc. Price GE HealthCare Technologies Inc. PriceGE HealthCare Technologies Inc. price | GE HealthCare Technologies Inc. QuoteZacks Rank & Stocks to ConsiderGEHC carries a Zacks Rank #3 (Hold) at present.Some other top-ranked stocks in the broader medical space are DaVita Inc. DVA, Cardinal Health, Inc. CAH and Cencora, Inc. COR.DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.DaVita’s shares have gained 58.3% compared with the industry’s 18.9% rise in the past year.Cardinal Health, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.Cardinal Health has gained 51.9% compared with the industry’s 3.2% rise in the past year.Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.Cencora’s shares have rallied 51.5% compared with the industry’s 3.6% rise 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 reportDaVita Inc. (DVA) : Free Stock Analysis ReportCardinal Health, Inc. (CAH) : Free Stock Analysis ReportCencora, Inc. (COR) : Free Stock Analysis ReportGE HealthCare Technologies Inc. (GEHC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

GE HealthCare (GEHC) AI Model to Predict Immunotherapy Response

https://finance.yahoo.com/news/ge-healthcare-gehc-ai-model-163300301.html

8237232b-ea0e-3be0-865b-da5ec78c2d36

DVA

Efforts to advance chronic disease prevention through enhanced education, awareness and support — kicking off during National Kidney MonthDENVER, March 11, 2024 /PRNewswire/ -- Today, The American Diabetes Association ® (ADA) and DaVita (NYSE: DVA), a leading provider of kidney care services, announced the expansion of a multi-year collaboration, focused on advancing chronic disease prevention, specifically addressing two of the most prevalent chronic conditions in the U.S. — diabetes and chronic kidney disease (CKD). The kick-off for this expanded effort coincides with National Kidney Month, a time when both organizations bolster efforts to increase kidney health awareness and education.The American Diabetes Association and DaVita Strengthen Alliance to Tackle Chronic Disease Head-OnChronic disease is the leading cause of death and disability in the United States.[1] More than 38 million Americans are living with diabetes, and approximately one in three American adults with diabetes has CKD.[2] Because the symptoms of CKD are often mild and go undetected, it's critical for individuals to understand their risk factors and take necessary steps to protect their health."At DaVita, we say we're a community first and a company second, underscoring our deep-rooted commitment to creating healthier communities," said Dr. Jeff Giullian, chief medical officer for DaVita. "By combining our expertise in kidney care with the ADA's leadership in diabetes education, we aim to make a lasting impact on chronic disease prevention, specifically in the communities that need it most."As part of this expansion, DaVita has contributed an additional $1.5 million to bolster the ADA's initiatives targeting individuals at risk of or who have diabetes and CKD, focused on driving hyperlocal and culturally relevant awareness and engagement in particular within communities of greater need.Diabetes and CKD disproportionately affect many communities of color, including Black and Hispanic or Latino populations. The two organizations are dedicated to improving health equity by uncovering new ways to drive awareness in underserved communities, addressing disparities and barriers to care, and mitigating clinical biases. The efforts include developing materials in multiple languages, learning personal cultural context for lifestyles and dietary considerations, and identifying barriers that these communities face.Story continuesTogether, the ADA and DaVita will:Create a digital home base with new educational materials that are easily accessible for patients and health care professionals.Pilot a registered dietitian (RDs) program enabling greater access to diabetes education and resources to keep RDs well-informed to better care for patients.Sponsor the ADA's State of Diabetes events in high-priority markets where DaVita and ADA leaders will lead discussions around some of the most important topics facing their shared patient populations in today's health care system."Through our work with DaVita, we have informed and educated millions of Americans — but our work isn't finished," said Charles "Chuck" Henderson, chief executive officer at the ADA. "We must continue the momentum and create more opportunities to promote diabetes and CKD education, especially in high-need communities with marginalized populations."To further celebrate National Kidney Month in March, DaVita has launched a campaign that focuses on "Connecting the Dots" between kidney health and other chronic conditions, including diabetes. On March 26, DaVita dietitians will join the ADA for a live cooking class featuring a tasty diabetes- and kidney-friendly meal. Learn more and register here.For more information and resources from the ADA and DaVita, check out the latest edition of their co-created online kidney care journey at diabetes.org/kidney.About the American Diabetes Association  The American Diabetes Association (ADA) is the nation's leading voluntary health organization fighting to bend the curve on the diabetes epidemic and help people living with diabetes thrive. For 83 years, the ADA has driven discovery and research to treat, manage, and prevent diabetes while working relentlessly for a cure. Through advocacy, program development, and education we aim to improve the quality of life for the over 136 million Americans living with diabetes or prediabetes. Diabetes has brought us together. What we do next will make us Connected for Life®. To learn more or to get involved, visit us at diabetes.org or call 1-800-DIABETES (800-342-2383). Join the fight with us on Facebook (American Diabetes Association), Spanish Facebook (Asociación Americana de la Diabetes), LinkedIn (American Diabetes Association), Twitter (@AmDiabetesAssn), and Instagram (@AmDiabetesAssn).About DaVita DaVita (NYSE: DVA) is a health care provider focused on transforming care delivery to improve quality of life for patients globally. The company is one of the largest providers of kidney care services in the U.S. and has been a leader in clinical quality and innovation for more than 20 years. DaVita cares for patients at every stage and setting along their kidney health journey—from slowing the progression of kidney disease to helping to support transplantation, from acute hospital care to dialysis at home. As of December 31, 2023, DaVita served approximately 250,200 patients at 3,042 outpatient dialysis centers, of which 2,675 centers were located in the United States and 367 centers were located in 11 other countries worldwide. DaVita has reduced hospitalizations, improved mortality, and worked collaboratively to propel the kidney care industry to adopt an equitable and high-quality standard of care for all patients, everywhere. To learn more, visit DaVita.com/About.Media Contacts:Virginia [email protected] [email protected][1] https://www.cdc.gov/chronicdisease/resources/infographic/chronic-diseases.html[2] https://www.cdc.gov/diabetes/data/statistics-report/index.html CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/the-american-diabetes-association-and-davita-strengthen-alliance-to-tackle-chronic-disease-head-on-302085792.htmlSOURCE American Diabetes Association

PR Newswire

The American Diabetes Association and DaVita Strengthen Alliance to Tackle Chronic Disease Head-On

https://finance.yahoo.com/news/american-diabetes-association-davita-strengthen-204000313.html

12a28bc8-fa7f-3372-b3c9-5cbe2dbbd43d

DVN

Devon Energy (NYSE: DVN) launched a pioneering capital return framework following its transformational merger with WPX Energy in early 2021. It established the industry's first fixed-plus-variable dividend policy. The framework featured a fixed base quarterly dividend and a variable dividend of up to 50% of its free cash flow. Several oil stocks have since taken a page from Devon Energy's playbook by launching similar fixed-plus-variable dividend policies, including Chord Energy (NASDAQ: CHRD). That oil producer is now taking another page out of Devon's playbook by agreeing to acquire Enerplus (NYSE: ERF), a company Devon had also offered to buy. Here's a look at how the deal will benefit dividend investors and where Devon might turn next to fuel its payout.Drilling down into the dealChord Energy is acquiring Enerplus in a cash-and-stock deal, valuing the target at about $3.9 billion (including the assumption of debt). It's paying 90% of the $3.4 billion equity value in stock (0.10125 of its shares for each share of Enerplus) and the other 10% in cash ($1.84 per share). The transaction will create an $11 billion oil and gas company by enterprise value.Enerplus is a near-perfect strategic fit for Chord Energy:Image source: Chord Energy. As the map on that slide shows, the acquisition will increase Chord Energy's acreage position in the Williston Basin. The combined company will have nearly 1.3 million net acres and produce 279,000 barrels of oil equivalent per day (BOE/d). That will make it the top producer in the region. The increased scale drives Chord's view that it can capture up to $150 million in annual cost savings. While Enerplus also owns a non-operated position in the gas-rich Marcellus shale, Chord could seek to sell those assets to further enhance its financial position.The cost savings from the combination will help increase Chord's free cash flow. The combined company expects to produce around $1.2 billion in free cash this year (up from $800 million as a stand-alone company). Chord intends to return 75% of that money to shareholders via a base dividend, variable dividends, and share repurchases. Story continuesChord reaffirmed its current base dividend rate ($5 per share annually). Meanwhile, it recently declared its latest variable dividend at $2 per share for the fourth quarter. Annualizing the most recent combined payment puts its dividend yield at 8%. Given its enhanced free cash flow, Chord could continue paying significant dividends following its Enerplus merger. Another option off the table for DevonReuters reported earlier this month that Devon approached Enerplus with an acquisition offer. Buying Enerplus would have enabled Devon to significantly enhance its scale in the Williston Basin, where it's a much smaller producer (54,000 BOE/d compared to Enerplus' 78,000 BOE/d). Devon was also reportedly among the many companies evaluating a potential offer to acquire CrownRock before Occidental Petroleum's $12 billion deal. CrownRock would have significantly bolstered its already world-class position in the Delaware Basin. Reuters also reported that Devon had discussed a merger with Marathon Oil. However, those talks ended because they could not agree on terms. Devon is one of many oil companies seeking to participate in the current consolidation wave washing over the oil patch. Exxon kicked things off by agreeing to acquire Pioneer Natural Resources for over $60 billion last year. Chevron followed with a deal to buy Hess for around $60 billion, while Diamondback Energy agreed to a $26 billion takeover of privately held Endeavor Energy Resources. Even with so many targets taken, Devon has plenty of options. It could circle back to Marathon. The multi-basin producer would be an excellent strategic fit. It could also consider Permian Resources, which, like Devon, has a strong position in the Delaware Basin, or Matador Resources, which operates in the Delaware, Eagle Ford (where Devon also operates), and the gassier Haynesville shale and Cotton Valley plays. The key will be to find a target that's a strong strategic fit to enhance its scale and free cash flow. Securing the right deal at the right price could enable Devon to boost its free cash flow, giving it more money to pay dividends. Waiting for the right opportunityDevon Energy's transformational merger with WPX Energy in 2021 created a lot of value for shareholders. It enhanced its free cash flow, giving it the fuel to launch its very popular fixed-plus-variable dividend framework. Others, like Chord Energy, have copied that playbook. It's now acquiring the same company Devon wanted to buy, which should fuel more dividends for its investors.However, losing out on another acquisition isn't the end of the world for Devon. There are still plenty of opportunities to participate in the current consolidation wave. It could deliver another transformational phase of value creation if it can wait for the right deal to emerge.Should you invest $1,000 in Devon Energy right now?Before you buy stock in Devon Energy, 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 Devon Energy 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, 2024Matt DiLallo has positions in Chevron. The Motley Fool has positions in and recommends Chevron and Enerplus. The Motley Fool recommends Occidental Petroleum and Pioneer Natural Resources. The Motley Fool has a disclosure policy.This Ultra-High-Yield Dividend Stock Takes Another Page Out of Devon Energy's Playbook was originally published by The Motley Fool

Motley Fool

This Ultra-High-Yield Dividend Stock Takes Another Page Out of Devon Energy's Playbook

https://finance.yahoo.com/news/ultra-high-yield-dividend-stock-132500465.html

2ef9096e-95e7-3c1c-b7fe-6c6e84674aa8

DVN

Devon Energy (NYSE: DVN) has been a winning stock since closing its transformational merger with WPX Energy in early 2021. The transaction turned it into a free cash flow machine. That gave it the fuel to grow value for its investors through dividends, share repurchases, debt reduction, and acquisitions. The company's adept use of its cash flow has helped power a nearly 190% total return since the merger closed (40.6% annualized), easily beating the S&P 500's roughly 40% (11.4% annualized) total return during that period. The oil stock should have plenty of fuel to continue growing shareholder value in the future. Here's a look at what drives that view.Its transformational transaction has delivered resultsWhen Devon Energy closed its merger of equals transaction with WPX Energy in early 2021, the company believed the deal would significantly enhance its ability to generate free cash flow. "This transformational merger enhances the scale of our operations, builds a dominant position in the Delaware Basin and accelerates our cash-return business model that prioritizes free cash flow generation and the return of capital to shareholders," stated Devon's executive chairman Dave Hager at the time. The company used that merger as a springboard to launch the industry's first fixed-plus-variable dividend framework. Devon intended to pay a fixed base dividend that would increase each year. On top of that, it targeted to return up to 50% of its excess free cash to shareholders through a variable dividend. Since launching the framework, Devon has nearly doubled its base dividend rate while paying significant variable dividends:Data source: Devon Energy. Chart by the author. The company's variable payment surged along with oil prices (and its oil-fueled cash flows) during the first half of 2022. While lower oil prices impacted its cash flow over the past few quarters, Devon still produces lots of cash to pay dividends.In addition to paying dividends, Devon uses its gushing cash flows to repurchase shares, repay debt, and make acquisitions:Story continuesImage source: Devon Energy.The company has repurchased over $2.1 billion in stock since late 2021, retiring 6% of its outstanding shares. Meanwhile, it has strengthened its balance sheet by repaying $1.5 billion of debt since the merger closed, reducing its leverage ratio to less than 1. Devon has also made two cash-gushing acquisitions. It paid $865 million to acquire the leasehold interests and related assets of RimRock Oil & Gas in mid-2022. The highly accretive deal enabled Devon to increase its base dividend by 13%. The company followed that acquisition up with a $1.8 billion deal for Validus Energy in late 2022. The cash-gushing acquisition gave Devon more fuel to pay variable dividends, helping offset some of the decline in oil prices. Plenty of fuel to continue paying dividendsDevon Energy expects to continue producing lots of cash. The oil company estimates it could generate $3.2 billion in free cash flow this year, assuming that oil averages around $80 per barrel (slightly above the recent price). That would be a more than 20% improvement from last year's level, fueled by lower service costs and its focus on investing in its highest-return drilling locations. The company aims to return 70% of its free cash flow to shareholders this year. It intends to grow its base dividend, buyback shares, and pay variable dividends. Given its currently low valuation -- Devon trades at around an 11% free cash flow yield, making it more than 50% cheaper than the broader market indexes -- it will likely prioritize repurchases over variable dividends in the near term. It will use the other 30% to retire maturing debt and further strengthen its financial profile. Meanwhile, the company is on the lookout for its next transformational merger. While all its rumored acquisition targets have since agreed to a deal with another suitor, plenty of potential merger partners remain. The right deal at the right price could further enhance its ability to generate free cash flow and pay dividends.Using its cash to create shareholder valueDevon Energy has become a free cash flow machine since closing its transformational merger with WPX Energy. That has given it the money to pay dividends, repurchase shares, strengthen its balance sheet, and make acquisitions. The company is in an excellent position to continue growing shareholder value in the future, especially if it can capitalize on the current M&A wave in the oil patch to complete another transformational deal.Should you invest $1,000 in Devon Energy right now?Before you buy stock in Devon Energy, 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 Devon Energy 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, 2024Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Beat the S&P 500 With This Cash-Gushing Dividend Stock was originally published by The Motley Fool

Motley Fool

Beat the S&P 500 With This Cash-Gushing Dividend Stock

https://finance.yahoo.com/news/beat-p-500-cash-gushing-114200928.html

e8cde5c1-92b0-3a79-9a51-8685b98d62ea

DVN

Readers hoping to buy Devon Energy Corporation (NYSE:DVN) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. 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 because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. In other words, investors can purchase Devon Energy's shares before the 14th of March in order to be eligible for the dividend, which will be paid on the 28th of March.The company's next dividend payment will be US$0.44 per share, and in the last 12 months, the company paid a total of US$2.87 per share. Based on the last year's worth of payments, Devon Energy stock has a trailing yield of around 5.4% on the current share price of US$46.16. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether Devon Energy has been able to grow its dividends, or if the dividend might be cut. See our latest analysis for Devon Energy 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. Devon Energy paid out a comfortable 49% of its profit last year. 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. Over the last year it paid out 72% of its free cash flow as dividends, within the usual range for most companies.It's positive to see that Devon Energy'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.Story continuesClick 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 earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. It's encouraging to see Devon Energy has grown its earnings rapidly, up 40% a year for the past five years.Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Devon Energy has delivered 11% dividend growth per year on average over the past 10 years. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.Final TakeawayFrom a dividend perspective, should investors buy or avoid Devon Energy? Earnings per share have grown at a nice rate in recent times and over the last year, Devon Energy paid out less than half its earnings and a bit over half its free cash flow. Devon Energy looks solid on this analysis overall, and we'd definitely consider investigating it more closely.So while Devon Energy looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. Every company has risks, and we've spotted 3 warning signs for Devon Energy (of which 1 is significant!) 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.

Devon Energy Corporation (NYSE:DVN) Looks Interesting, And It's About To Pay A Dividend

https://finance.yahoo.com/news/devon-energy-corporation-nyse-dvn-122825745.html

2ec895e6-2084-303f-8df1-a1f3e291e354

DVN

Jonathan Steinberg has done an about-face. Two years ago, the CEO of WisdomTree Inc. (NYSE:WT) sold more than $1 million of his company's stock. Last month, he bought more than $2 million worth.Steinberg's company was among the first to issue exchange-traded funds, often called ETFs. It remains one of the top 10 issuers of ETFs in the U.S.Though he's no shrinking violet, Steinberg is less famous than both his father and his wife. His father, Saul Steinberg, had a reputation as a fierce corporate raider. Among his successful takeovers were Reliance Insurance Co. and Pergamon Press. He also made runs at Chemical Bank and Walt Disney Co. (NYSE:DIS).Warning! GuruFocus has detected 6 Warning Sign with WT.The younger Steinberg's wife is Maria Bartiromo, well known to television viewers as a Wall Street commentator, first on CNBC and later on Fox Business channel. A strikingly attractive woman, she was nicknamed the money honey.Before he launched WisdomTree, Steinberg was the publisher of Individual Investor magazine, and was a contestant in a stock-picking contest I used to run for the Wall Street Journal called Investment Dartboard. Contestants' results were compared with the results from throwing darts at the stock pages.He won the contest half a dozen times.In the past dozen years, Steinberg has sold WisdomTree shares on 24 occasions, and has bought the shares nine times. His purchase last month was his largest to date.Profits at WisdomTree jumped 42% last year, on an 8% revenue increase.The company's net profit margin is handsome at 29%. Return on equity is also strong, 26% in the past year. Analysts figure it will earn about 49 cents a share this year, and the stock (recently at $8.42) sells for about 17 times that figure not cheap, but not especially expensive.My guess is that Steinberg will do well on his recent purchase. He owns 9.1 million shares, worth about $77 million.DevonNatural gas prices have rarely been lower than they are now (about $1.51 per million British Thermal Units. So it's noteworthy that Devon Energy Corp. (NYSE:DVN) CEO Richard Muncrief spent about $666,000 this month to increase his hoard of Devon stock.Story continuesMuncrief also bought shares a year ago, as I noted in this column. His latest purchase, on March 4, was 15,000 shares. He now owns about 1.9 million shares, worth about $84 million at Devon's March 8 price of $46.16.Devon, based in Oklahoma City, Oklahoma, expects revenue of about $12.4 billion this year. It produces both oil and natural gas, and natural gas accounts for a big share of its reserves. It is also investing heavily in geothermal energy production.Natural gas sells for about $1.51 per million BTUs today, down from a 20-year average of a little over $4. So to say that Moncrief is making a contrarian bet is an understatement.I think it's a shrewd trade. Only twice in the past 20 years has natural gas been as cheap as it is now. Both times it rebounded swiftly and emphatically. As for the oil part of the business, I think that oil will average $80 a barrel or more for the next year or two, giving companies room for good profits.According to GuruFocus, Muncrief's trades have tended to outperform the Standard & Poor's 500 Index.The recordThis column is one in a long series about corporate insiders' trades. I can tabulate one-year results for 59 columns all those written from the beginning of 1999 through a year ago.The stocks I have recommended based on insider purchases have beaten the Standard & Poor's 500 Total Return Index by 0.77 percentage points on average.The stocks I've said to avoid, even though insiders were buying, have trailed behind the S&P 500 by 24.30 percentage points.Stocks where I noted insider sales have trailed the index by two percentage points.That almost wraps it up, but there is one more category. There were 14 stocks where I noted insider buying but made no comment, or an ambiguous comment. That group has beaten the benchmark by 16.20 percentage points.A year ago, I wrote about insider buys at Devon Energy and Stifel Financial Corp. (NYSE:SF). From then until this writing, Devon is down 2.2% and Stifel has returned 36%. The S&P returned 35%.I also noted that a few insiders had sold shares at Ford Motor Co. (NYSE:F). Since then, Ford has trailed the index by 27 percentage points.Bear in mind that my column results are hypothetical and shouldn't be confused with results I obtain for clients. Also, past performance doesn't predict the future.John Dorfman is chairman of Dorfman Value Investments LLC in Boston, Massachusetts. He or his clients may own or trade securities discussed in this column. He can be reached at [email protected]. This article first appeared on GuruFocus.

GuruFocus.com

CEOs Buy Shares at Wisdom Tree and Devon Energy

https://finance.yahoo.com/news/ceos-buy-shares-wisdom-tree-160936534.html

cbaa35fd-8697-33df-bd7c-91b8740a17ec

DXCM

DexCom (DXCM) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Over the past month, shares of this medical device company have returned -7.1%, compared to the Zacks S&P 500 composite's +5% change. During this period, the Zacks Medical - Instruments industry, which DexCom falls in, has gained 3.3%. The key question now is: What could be the stock's future direction?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.Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.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.For the current quarter, DexCom is expected to post earnings of $0.27 per share, indicating a change of +58.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.7% over the last 30 days.The consensus earnings estimate of $1.74 for the current fiscal year indicates a year-over-year change of +14.5%. This estimate has changed +1.8% over the last 30 days.Story continuesFor the next fiscal year, the consensus earnings estimate of $2.20 indicates a change of +26.4% from what DexCom is expected to report a year ago. Over the past month, the estimate has changed +3.3%.With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for DexCom.The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:12 Month EPSProjected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.In the case of DexCom, the consensus sales estimate of $909.9 million for the current quarter points to a year-over-year change of +22.7%. The $4.31 billion and $5.12 billion estimates for the current and next fiscal years indicate changes of +19% and +18.8%, respectively.Last Reported Results and Surprise HistoryDexCom reported revenues of $1.03 billion in the last reported quarter, representing a year-over-year change of +26.9%. EPS of $0.50 for the same period compares with $0.34 a year ago.Compared to the Zacks Consensus Estimate of $1.03 billion, the reported revenues represent a surprise of +0.41%. The EPS surprise was +16.28%.The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.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.The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.DexCom 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 DexCom. However, its Zacks Rank #2 does suggest that it may outperform 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 reportDexCom, Inc. (DXCM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Here is What to Know Beyond Why DexCom, Inc. (DXCM) is a Trending Stock

https://finance.yahoo.com/news/know-beyond-why-dexcom-inc-140010427.html

669ae847-e3e9-31d1-8830-b63f40ad5d78

DXCM

If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. Speaking of which, we noticed some great changes in DexCom's (NASDAQ:DXCM) returns on capital, so let's have a look.What Is Return On Capital Employed (ROCE)?For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for DexCom:Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)0.13 = US$598m ÷ (US$6.3b - US$1.6b) (Based on the trailing twelve months to December 2023).So, DexCom has an ROCE of 13%. On its own, that's a standard return, however it's much better than the 9.8% generated by the Medical Equipment industry. View our latest analysis for DexCom roceIn the above chart we have measured DexCom's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for DexCom .What The Trend Of ROCE Can Tell UsWe're delighted to see that DexCom is reaping rewards from its investments and is now generating some pre-tax profits. About five years ago the company was generating losses but things have turned around because it's now earning 13% on its capital. Not only that, but the company is utilizing 178% more capital than before, but that's to be expected from a company trying to break into profitability. This can tell us that the company has plenty of reinvestment opportunities that are able to generate higher returns.On a side note, we noticed that the improvement in ROCE appears to be partly fueled by an increase in current liabilities. Effectively this means that suppliers or short-term creditors are now funding 25% of the business, which is more than it was five years ago. Keep an eye out for future increases because when the ratio of current liabilities to total assets gets particularly high, this can introduce some new risks for the business.Story continuesThe Bottom LineLong story short, we're delighted to see that DexCom's reinvestment activities have paid off and the company is now profitable. Since the stock has returned a staggering 224% to shareholders over the last five years, it looks like investors are recognizing these changes. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence.One more thing to note, we've identified 1 warning sign with DexCom and understanding this should be part of your investment process.While DexCom may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list 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.

DexCom (NASDAQ:DXCM) Might Have The Makings Of A Multi-Bagger

https://finance.yahoo.com/news/dexcom-nasdaq-dxcm-might-makings-120030123.html

694e2d24-b690-33c4-8dd5-ec3b437f8adb

DXCM

Key InsightsThe projected fair value for DexCom is US$141 based on 2 Stage Free Cash Flow to EquityDexCom's US$135 share price indicates it is trading at similar levels as its fair value estimate The US$146 analyst price target for DXCM is 4.0% more than our estimate of fair valueDoes the March share price for DexCom, Inc. (NASDAQ:DXCM) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. This will be done using the Discounted Cash Flow (DCF) model. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow.We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. View our latest analysis for DexCom Crunching The NumbersWe use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:Story continues10-year free cash flow (FCF) forecast2024202520262027202820292030203120322033 Levered FCF ($, Millions) US$703.8mUS$924.4mUS$1.23bUS$1.66bUS$2.07bUS$2.38bUS$2.65bUS$2.87bUS$3.06bUS$3.22bGrowth Rate Estimate SourceAnalyst x7Analyst x7Analyst x5Analyst x2Analyst x2Est @ 14.88%Est @ 11.10%Est @ 8.46%Est @ 6.61%Est @ 5.31% Present Value ($, Millions) Discounted @ 6.6% US$660US$814US$1.0kUS$1.3kUS$1.5kUS$1.6kUS$1.7kUS$1.7kUS$1.7kUS$1.7k("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$14bAfter 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 6.6%.Terminal Value (TV)= FCF2033 × (1 + g) ÷ (r – g) = US$3.2b× (1 + 2.3%) ÷ (6.6%– 2.3%) = US$77bPresent Value of Terminal Value (PVTV)= TV / (1 + r)10= US$77b÷ ( 1 + 6.6%)10= US$41bThe total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$54b. 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$135, the company appears about fair value at a 3.9% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.dcfThe AssumptionsNow the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the 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 DexCom 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 6.6%, which is based on a levered beta of 0.935. 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 DexComStrengthEarnings growth over the past year exceeded the industry.Debt is not viewed as a risk.WeaknessNo major weaknesses identified for DXCM.OpportunityAnnual earnings are forecast to grow faster than the American market.Current share price is below our estimate of fair value.ThreatRevenue is forecast to grow slower than 20% per year.Moving On:Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. 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 DexCom, we've compiled three further items you should explore:Risks: For example, we've discovered 1 warning sign for DexCom that you should be aware of before investing here.Future Earnings: How does DXCM's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!PS. 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 Intrinsic Value Of DexCom, Inc. (NASDAQ:DXCM)

https://finance.yahoo.com/news/calculating-intrinsic-value-dexcom-inc-140013631.html

0c745774-cab8-3293-a40d-d18d8364a4e6

DXCM

DexCom (DXCM) ended the recent trading session at $133.04, demonstrating a -1.63% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.11%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.41%.Heading into today, shares of the medical device company had gained 12.27% over the past month, outpacing the Medical sector's gain of 3.03% and the S&P 500's gain of 2.7% in that time.The upcoming earnings release of DexCom will be of great interest to investors. The company is predicted to post an EPS of $0.27, indicating a 58.82% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $909.9 million, up 22.71% from the prior-year quarter.DXCM's full-year Zacks Consensus Estimates are calling for earnings of $1.74 per share and revenue of $4.31 billion. These results would represent year-over-year changes of +14.47% and +18.98%, respectively.Investors should also note any recent changes to analyst estimates for DexCom. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.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. Within the past 30 days, our consensus EPS projection has moved 1.8% higher. DexCom currently has a Zacks Rank of #3 (Hold).With respect to valuation, DexCom is currently being traded at a Forward P/E ratio of 77.62. This represents a premium compared to its industry's average Forward P/E of 28.35.Story continuesAlso, we should mention that DXCM has a PEG ratio of 2.35. 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. The average PEG ratio for the Medical - Instruments industry stood at 2.35 at the close of the market yesterday.The Medical - Instruments industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 70, positioning it in the top 28% 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.Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportDexCom, Inc. (DXCM) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

DexCom (DXCM) Sees a More Significant Dip Than Broader Market: Some Facts to Know

https://finance.yahoo.com/news/dexcom-dxcm-sees-more-significant-220021930.html

b84f6efa-b6a1-31a8-8f82-51accd6a921f

EA

Stuart Canfield, the CFO of Electronic Arts Inc (NASDAQ:EA), sold 1,500 shares of the company on February 20, 2024, according to a recent SEC filing. The transaction was executed at an average price of $140.26 per share, resulting in a total sale amount of $210,390.Electronic Arts Inc is a global leader in digital interactive entertainment. The company develops and delivers games, content, and online services for Internet-connected consoles, mobile devices, and personal computers. EA has more than 450 million registered players around the world and is known for its portfolio of critically acclaimed, high-quality brands such as The Sims, Madden NFL, EA SPORTS FIFA, Battlefield, Dragon Age, and Plants vs. Zombies.Warning! GuruFocus has detected 5 Warning Signs with EA.Over the past year, the insider has sold a total of 4,759 shares of Electronic Arts Inc and has not made any purchases. The recent sale by the insider is part of a trend observed over the past year, where there have been no insider buys and 48 insider sells for the company.Electronic Arts Inc CFO Stuart Canfield Sells 1,500 SharesOn the valuation front, Electronic Arts Inc's shares were trading at $140.26 on the day of the insider's sale, giving the company a market capitalization of $37.715 billion. The price-earnings ratio of the company stands at 35.53, which is above the industry median of 21.87 and also higher than the company's historical median price-earnings ratio.The stock's price-to-GF-Value ratio is 0.97, with a GF Value of $144.62, indicating that Electronic Arts Inc is fairly valued based on its GF Value. The GF Value is a proprietary intrinsic value estimate from GuruFocus, which is calculated considering historical trading multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.Electronic Arts Inc CFO Stuart Canfield Sells 1,500 SharesInvestors and analysts often monitor insider selling as it can provide insights into an insider's perspective on the value of the company's stock. However, insider transactions are not always indicative of future stock performance and can be influenced by various factors, including personal financial needs and portfolio diversification strategies.Story continuesFor more detailed information on insider transactions and stock performance for Electronic Arts Inc, interested parties can refer to the full SEC filing.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

Electronic Arts Inc CFO Stuart Canfield Sells 1,500 Shares

https://finance.yahoo.com/news/electronic-arts-inc-cfo-stuart-042238659.html

9e050368-1eac-3197-acdc-8fdba11d8e0b

EA

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.While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.Is This 1 Momentum Stock a Screaming Buy Right Now?Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.Electronic Arts (EA)Electronic Arts, popularly known as EA, is a leading developer, marketer, publisher and distributor of digital interactive entertainment, including games, extra content and services. Its portfolio includes wholly owned games like Apex Legends, Battlefield, and The Sims or licensed from others, including Madden NFL, Star Wars and others.EA sits at a Zacks Rank #3 (Hold), holds a Momentum Style Score of B, and has a VGM Score of B. The stock is down 0.4% and up 3.3% over the past one-week and four-week period, respectively, and Electronic Arts has gained 29.6% in the last one-year period as well. Additionally, an average of 2,115,029.25 shares were traded over the last 20 trading sessions.Momentum investors also pay close attention to a company's earnings. For EA, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.05 to $7.11 per share for 2024. EA boasts an average earnings surprise of 16.1%.EA should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong 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 reportElectronic Arts Inc. (EA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Here's Why Electronic Arts (EA) is a Strong Momentum Stock

https://finance.yahoo.com/news/heres-why-electronic-arts-ea-145011098.html

ff182e52-2261-34eb-b249-70fa31c407fd

EA

Key InsightsThe projected fair value for Electronic Arts is US$206 based on 2 Stage Free Cash Flow to EquityElectronic Arts' US$140 share price signals that it might be 32% undervaluedOur fair value estimate is 36% higher than Electronic Arts' analyst price target of US$152Today we will run through one way of estimating the intrinsic value of Electronic Arts Inc. (NASDAQ:EA) by projecting its future cash flows and then discounting them to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex.We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. Check out our latest analysis for Electronic Arts What's The Estimated Valuation?We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:Story continues10-year free cash flow (FCF) estimate2024202520262027202820292030203120322033 Levered FCF ($, Millions) US$1.91bUS$2.08bUS$2.35bUS$2.61bUS$2.84bUS$3.02bUS$3.17bUS$3.31bUS$3.43bUS$3.54bGrowth Rate Estimate SourceAnalyst x10Analyst x10Analyst x8Analyst x2Analyst x2Est @ 6.20%Est @ 5.03%Est @ 4.21%Est @ 3.63%Est @ 3.23% Present Value ($, Millions) Discounted @ 7.2% US$1.8kUS$1.8kUS$1.9kUS$2.0kUS$2.0kUS$2.0kUS$1.9kUS$1.9kUS$1.8kUS$1.8k("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$19bWe 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 7.2%.Terminal Value (TV)= FCF2033 × (1 + g) ÷ (r – g) = US$3.5b× (1 + 2.3%) ÷ (7.2%– 2.3%) = US$73bPresent Value of Terminal Value (PVTV)= TV / (1 + r)10= US$73b÷ ( 1 + 7.2%)10= US$36bThe total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$55b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of US$140, the company appears quite good value at a 32% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.dcfImportant 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 Electronic Arts 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 7.2%, which is based on a levered beta of 1.078. 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 Electronic ArtsStrengthEarnings growth over the past year exceeded its 5-year average.Debt is not viewed as a risk.WeaknessEarnings growth over the past year underperformed the Entertainment industry.Dividend is low compared to the top 25% of dividend payers in the Entertainment market.OpportunityAnnual earnings are forecast to grow for the next 3 years.Trading below our estimate of fair value by more than 20%.ThreatAnnual earnings are forecast to grow slower than the American market.Looking Ahead:Whilst important, the DCF calculation ideally won't be the sole piece of analysis you scrutinize for a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. Can we work out why the company is trading at a discount to intrinsic value? For Electronic Arts, we've compiled three pertinent factors you should look at:Financial Health: Does EA have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.Future Earnings: How does EA'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. 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.

Electronic Arts Inc. (NASDAQ:EA) Shares Could Be 32% Below Their Intrinsic Value Estimate

https://finance.yahoo.com/news/electronic-arts-inc-nasdaq-ea-195357536.html

50c501dc-2696-3706-ac30-1b0001db63e4

EA

REDWOOD CITY, Calif., February 29, 2024--(BUSINESS WIRE)--Electronic Arts Inc. (NASDAQ: EA) today announced that Andrew Wilson, CEO, will present at the Morgan Stanley Technology, Media & Telecom Conference on Wednesday, March 6, in San Francisco, CA. During the course of this event, EA may disclose material developments affecting its business and/or financial performance. Listeners may access the event via live audio webcast at http://ir.ea.com.Wednesday, March 06, 2024Presentation at 3:35 PM ET / 12:35 PM PTDuration: 40 MinutesSpeaker: Andrew Wilson, CEOWebcast: http://ir.ea.comPlease note the presentation time is subject to change, and significant deviations from the posted time will be announced on our investor relations website. Please contact the financial institution hosting the conference for additional details. An audio webcast archive will be available following the live event at http://ir.ea.com.About Electronic ArtsElectronic Arts (NASDAQ: EA) is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers.In fiscal year 2023, EA posted GAAP net revenue of approximately $7.4 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS FC™, Battlefield™, Apex Legends™, The Sims™, Madden NFL, Need for Speed™, Titanfall™, Plants vs. Zombies™ and F1®. More information about EA is available at www.ea.com/news.EA, EA SPORTS, EA SPORTS FC, Battlefield, Need for Speed, Apex Legends, The Sims, Titanfall, and Plants vs. Zombies are trademarks of Electronic Arts Inc. STAR WARS © & TM 2015 Lucasfilm Ltd. All rights reserved. John Madden, NFL, and F1 are the property of their respective owners and used with permission.Safe Harbor for Forward-Looking StatementsDuring the course of the presentation, Electronic Arts may make forward-looking statements regarding future events or the future financial performance of the company that are subject to change. Statements including words such as "anticipate," "believe," "expect," "intend," "estimate," "plan," "predict," "seek," "goal," "will," "may," "likely," "should," "could" (and the negative of any of these terms), "future" and similar expressions also identify forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management’s current expectations. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that might cause or contribute to such differences include those discussed in Part II, Item 1A of Electronic Arts’ latest Quarterly Report on Form 10-Q under the heading "Risk Factors", as well as in other documents we have filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2023. We assume no obligation to revise or update any forward-looking statement for any reason, except as required by law.Story continuesView source version on businesswire.com: https://www.businesswire.com/news/home/20240229667625/en/ContactsKatie BurkeDirector, Investor [email protected] RheaumeDirector, Financial [email protected]

Business Wire

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

https://finance.yahoo.com/news/ea-present-morgan-stanley-technology-214400070.html

b42b00bb-d215-3114-adc0-20f7187d5265

EBAY

Yahoo Finance Live previews the top stories and economic data investors should pay attention to for Tuesday, February 27, including earnings from companies like Lowe's (LOW) and J.M. Smucker (SJM), commentary from Federal Reserve Vice Chair for Supervision Michael Barr, and February's consumer confidence reading.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 TranscriptJOSH LIPTON: Time now for what to watch Tuesday, February 27 starting off on the earnings front. Earnings season we know is winding down here, but still some big names reporting tomorrow. Lowe's, Macy's, AutoZone, eBay, JM Smucker, and Masimo all set to post earnings. Lowe's reporting fourth quarter results before the opening bell, and stock having a solid start to the year it's up about 4%.JULIE HYMAN: Taking a look at the Fed, we're going to get some more commentary from one Federal Reserve official. Vice chair for Supervision Michael Barr speaking tomorrow giving us more insight on if and when the Fed could cut rates. this coming after comments from New York Fed President John Williams on Friday saying that the Central Bank is on track to cut interest rates quote, "later this year."JOSH LIPTON: And moving over to the economy, the monthly consumer confidence report from the Conference Board is out tomorrow measuring consumer attitudes regarding their finances. That number expected to tick up again making it four straight months of gains and providing another economic indicator ahead of Thursday's big PCE report tomorrow.

Yahoo Finance Video

Lowe's earnings, Fedspeak, Consumer data: What to Watch

https://finance.yahoo.com/video/lowes-earnings-fedspeak-consumer-data-222303124.html

def99de6-160e-39e4-8d10-8363268c0078

EBAY

Companies are cutting staff and focusing on efficiency amid a commitment to do more with less following a year of widespread layoffs. The layoffs so far this year suggest that companies are cutting in more targeted areas. Here’s a look at some of the companies that have announced layoffs so far this year.Continue reading

The Wall Street Journal

Layoffs in 2024: A List of Companies Cutting Jobs This Year

https://finance.yahoo.com/m/604dffb9-56b6-3a7f-aa11-739677c15b28/layoffs-in-2024-a-list-of.html

604dffb9-56b6-3a7f-aa11-739677c15b28

EBAY

A Trader Joe’s canvas mini tote bag that costs about the same as a pack of gum is being resold online for nearly 200 times its retail price.The Trader Joe’s bags, available in blue, red, green and yellow, have taken social media by storm in the past week, garnering more than 11 million views on Tik Tok. Although some stores have reportedly been placing limits on the amount people are able to buy at one time, customers have been flocking to stores across the country and snatching up as many of the $2.99 bags as they can, according to store employees.The viral Trader Joe's mini canvas tote bag. - From Trader Joe'sSome have been reselling the bags on e-commerce platforms like eBay and Facebook Marketplace. As of Sunday afternoon, hundreds of mini tote bags have been posted on eBay with prices ranging from $5 to $500.“As a seller, it just came naturally that I thought these would sell,” said one eBay user who is selling four tote bags in all available colors for $145 or best offer. They have already sold eight, and have one left in their store, according to their page. “I believe these were limited production,” the seller added.According to the page of another seller, who is offering a set of four bags for $499.99 or best offer, one set has been sold and two more remain.It’s unclear whether these bags have actually been sold at their advertised price point, since eBay users can bid below the starting offer.One Iowa-based store employee told CNN the bags were only available for a week before they sold out, with the next shipment not expected until September.Another employee at a New Jersey location said the customer craze started about two weeks ago, and that some holiday-minded shoppers are buying them ahead of time. “Customers love it. They’re buying a lot,” she said. “Easter is coming up and they make great baskets for kids.”The viral scenes at Trader Joe’s stores are reminiscent of the Stanley cup chaos last year: In December, Target introduced a limited-edition Valentine’s Day collection of Stanley tumblers. Shoppers jumped on the items, in some cases quite literally. The proof was documented in TikTok videos that showed people lining up outside Target stores waiting to rush in to grab the items. Stanley has since reworked its product launches to make them less chaotic.CNN’s Parija Kavilanz contributed reporting.For more CNN news and newsletters create an account at CNN.com

CNN Business

These viral $2.99 Trader Joe’s tote bags are being resold for as much as $500 on eBay

https://finance.yahoo.com/news/viral-2-99-trader-joe-200356626.html

91c3999e-ee3c-3b07-aa37-c5f9fc46591e

EBAY

Fool.com contributor Parkev Tatevosian discusses why this dividend stock, in particular, is an excellent purchase for passive income investors.*Stock prices used were the afternoon prices of March 8, 2024. The video was published on March 10, 2024.Should you invest $1,000 in eBay right now?Before you buy stock in eBay, 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 eBay wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of March 11, 2024Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends eBay and recommends the following options: short April 2024 $45 calls on eBay. 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.1 Ridiculously Cheap Dividend Stock Down 37% to Buy Now and Hold for the Long Term was originally published by The Motley Fool

Motley Fool

1 Ridiculously Cheap Dividend Stock Down 37% to Buy Now and Hold for the Long Term

https://finance.yahoo.com/news/1-ridiculously-cheap-dividend-stock-211027402.html

9f3f680c-396b-3965-9e9c-5ac87bde62d6

ECL

Ecolab (NYSE:ECL) Full Year 2023 ResultsKey Financial ResultsRevenue: US$15.3b (up 8.0% from FY 2022).Net income: US$1.37b (up 26% from FY 2022).Profit margin: 9.0% (up from 7.7% in FY 2022). The increase in margin was driven by higher revenue.EPS: US$4.82 (up from US$3.83 in FY 2022).earnings-and-revenue-growthAll figures shown in the chart above are for the trailing 12 month (TTM) periodEcolab EPS Misses ExpectationsRevenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.6%.Looking ahead, revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Chemicals industry in the US.Performance of the American Chemicals industry.The company's shares are up 3.2% from a week ago.Risk AnalysisWe should say that we've discovered 1 warning sign for Ecolab that you should be aware of before investing 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.

Ecolab Full Year 2023 Earnings: EPS Misses Expectations

https://finance.yahoo.com/news/ecolab-full-2023-earnings-eps-125827022.html

33eff274-bcca-38e0-8ed8-5734fed567c4

ECL

In this article, we will take a detailed look at Bill Gates' 16 Dividend Stocks To Buy. For a quick overview of such stocks, read our article Bill Gates' 5 Dividend Stocks To Buy.The era of low interest rates did not bode well for dividend investing as investors preferred to pile into growth stocks instead of dividend-paying equities. Especially after the 2008 financial crisis ended, dividend stocks' contribution to overall market returns declined. A Wall Street Journal report said that US stocks with dividend yields above 5% returned 450% since the end of 2008, compared the 640% gain posted by the broader S&P Composite 1500. On the other hand, companies that do not pay dividends have posted gains of about 1500%. But since the Federal Reserve started increasing interest rates and speculation of a "higher for longer" scenario becomes relevant, investors are starting to pay attention to dividend stocks.The WSJ report also quoted Daniel Peris, the portfolio manager at investment banking company Federated Hermes, who said in his book “The Ownership Dividend" that the trend in which dividend stocks lost their mojo amid low interest rates was temporary as he believes the pendulum is about to swing in the favor of dividend stocks.But does all dividend stocks worth your attention? As you will see in this article, smart investors and billionaires prefer high-quality dividend stocks with low volatility and strong businesses. The WSJ report said investing in dividend stocks with low volatility has outperformed other notable investment strategies about 60% of the time since 1998.Bill Gates' 16 Dividend Stocks To BuyMethodologyFor this article we scanned the Q4'2023 portfolio of Bill & Melinda Gates Foundation Trust and chose its top dividend stocks picks. 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).16. Hormel Foods Corp (NYSE:HRL)Bill Gates' Stake: $70,490,762With a dividend yield of about 3.7%, Hormel Foods Corp (NYSE:HRL) ranks 16th in our list of the top dividend stocks in Bill Gates' portfolio as of the end of 2023.Story continuesBill & Melinda Gates Foundation owns a $70 million stake in Hormel Foods Corp (NYSE:HRL).15. Danaher Corp (NYSE:DHR)Bill Gates' Stake: $86,289,820Earlier this month Danaher Corp (NYSE:DHR) increased its dividend by a whopping 12.5%.As of the end of the fourth quarter of 2023, 90 hedge funds out of the 933 funds in Insider Monkey's database had stakes in Danaher Corp (NYSE:DHR). The most notable stake in Danaher Corp (NYSE:DHR) is owned by Ken Fisher's Fisher Asset Management which owns a $978 million stake in Danaher Corp (NYSE:DHR).Headwaters Capital Management stated the following regarding Danaher Corporation (NYSE:DHR) in its fourth quarter 2023 investor letter:“Danaher Corporation’s (NYSE:DHR) acquisition offer for ABCM was approved by shareholders on 11/6/23. Shareholders approved the deal based on trough fundamentals (potential China weakness) and trough valuation (the broader market bottomed on 10/27). DHR took advantage of broader market fears and mis-aligned management incentives to acquire Abcam at a cheap price. While disappointing, ABCM was still a very successful investment for Headwaters as it outperformed the market by +27% during our ownership. The cash received from the acquisition was immediately re-deployed into the newest addition to the portfolio, IPAR (discussed below).”14. Kraft Heinz Co (NASDAQ:KHC)Bill Gates' Stake: $96,983,748With a 4.4% dividend yield and a recession-proof business, American food company Kraft Heinz Co (NASDAQ:KHC) ranks 14th in our list of the best dividend stocks according to Bill Gates. Bill & Melinda Gates Foundation owns a $97 million stake in Kraft Heinz Co (NASDAQ:KHC).As of the end of the fourth quarter of 2023, 44 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Kraft Heinz Co (NASDAQ:KHC).13. Anheuser-Busch Inbev SA (NYSE:BUD)Bill Gates' Stake: $110,047,860Anheuser-Busch Inbev SA (NYSE:BUD) is in the spotlight for two reasons. First, data from Nielsen has shown that the Bud Light brand saw improvement in sales during the one-month period ending January 27. Second, Donald Trump has called on his supporters to give Anheuser-Busch Inbev SA (NYSE:BUD) a "second chance" and called Anheuser-Busch Inbev SA (NYSE:BUD) a "Great American Brand." Trump was referring to the backlash Anheuser-Busch Inbev SA (NYSE:BUD) received from conservatives in the US after its collaboration with  transgender TikTok star Dylan Mulvaney.As of the end of the fourth quarter of 2023, Bill Gates' foundation owns a $110 million stake in Anheuser-Busch Inbev SA (NYSE:BUD).12. United Parcel Service, Inc. (NYSE:UPS)Bill Gates' Stake: $118,722,643United Parcel Service, Inc. (NYSE:UPS) ranks 12th in our list of the best dividend stocks in Bill Gates' 2024 portfolio. Last month, UPS declared a 0.6% increase in its prior dividend. Forward dividend yield came in at over 4%.A total of 46 hedge funds out of the 933 funds in Insider Monkey's database had stakes in United Parcel Service, Inc. (NYSE:UPS). Bill & Melinda Gates Foundation owns a $119 million stake in United Parcel Service, Inc. (NYSE:UPS).ClearBridge Large Cap Value Strategy made the following comment about United Parcel Service, Inc. (NYSE:UPS) in its Q3 2023 investor letter:“A higher-for-longer rate mentality taking hold was a headwind for economically sensitive stocks. Rising wages have been one of the main drivers of inflation, and this has proved to be a sticky area, keeping the Fed’s attention and weighing on share prices. For example, United Parcel Service, Inc. (NYSE:UPS) renegotiated a wage increase for its union-backed workforce this summer, which weighed on margins that were already being constricted by slowing volumes. While the new union deal will dampen profits over the next 12 months due to the front-end-loaded nature of the new five-year contract, management gained increased flexibility to deploy automation, which we think should further enhance UPS’s strong competitive position and provide a long-term tailwind to profitability.”11. Crown Castle Inc (NYSE:CCI)Bill Gates' Stake: $163,578,094Telecom infrastructure REIT Crown Castle Inc (NYSE:CCI) is a high-yield dividend stock in Bill Gates' Q4 portfolio. The stock has a dividend yield of over 5.5%.The stock is making waves after Crown Castle Inc's (NYSE:CCI) founder Ted Miller nominated four people for board director positions and outlined a restructuring plan that includes selling off its fiber assets.Carillon Eagle Growth & Income Fund made the following comment about Crown Castle Inc. (NYSE:CCI) in its Q2 2023 investor letter:“Crown Castle Inc. (NYSE:CCI) detracted from performance as telecom companies have temporarily slowed their deployment of additional cellular spectrum. This slowdown could impair future growth for cell tower companies.”10. Waste Connections Inc (NYSE:WCN)Bill Gates' Stake: $320,807,352Canadian-based Waste Connections Inc (NYSE:WCN) is a low-yield dividend stock in Bill Gates' portfolio. Earlier this month Waste Connections Inc (NYSE:WCN) posted fourth quarter results. Adjusted EPS in the quarter came in at $1.11, beating estimates by $0.02. Revenue in the quarter jumped 9.1% year over year to $2.04 billion.Bill & Melinda Gates Foundation owns a $321 million stake in Waste Connections Inc (NYSE:WCN).TimesSquare Capital U.S. FOCUS Growth Strategy made the following comment about Waste Connections, Inc. (NYSE:WCN) in its Q3 2023 investor letter:“Waste Connections, Inc. (NYSE:WCN), a non-hazardous waste company, pulled back by -6%. They serve residential, commercial, municipal, and industrial customers in the U.S. and Canada. Second quarter results included inline revenues, an upside to profits on better margins, though with slightly lower volumes. Management noted that volumes came in weaker than anticipated due to intentionally shedding low margin contracts. Forward revenue guidance was lowered slightly, reflecting lower surcharges from falling diesel prices.”9. FedEx Corp (NYSE:FDX)Bill Gates' Stake: $388,147,555FedEx Corp (NYSE:FDX) has a dividend yield of over 2% as of February 24. Bill & Melinda Gates Foundation owns a $388 million stake in FedEx Corp (NYSE:FDX). This fund is the biggest hedge fund stakeholder in FedEx Corp (NYSE:FDX) out of the 70 funds that had stakes in FedEx Corp (NYSE:FDX) as of the end of the fourth quarter of 2023.The London Company Large Cap Strategy stated the following regarding FedEx Corporation (NYSE:FDX) in its fourth quarter 2023 investor letter:“FedEx Corporation (NYSE:FDX) – After a very positive start to the year, FDX lagged during 4Q after a weak earnings report and lowered guidance. Fundamentals improved throughout the year as FDX enacted major cost cuts, but a decline in volumes in the quarter was too much for the new cost structure to overcome. Longer term, FDX has the potential to be a strong player in the transportation industry, but it will have to continue adjusting its fleet and network to an evolving marketplace.”8. Walmart Inc (NYSE:WMT)Bill Gates' Stake: $477,704,566Walmart Inc (NYSE:WMT) recently increased its annual dividend by 9%. This marked the 51st consecutive year of dividend increases from Walmart Inc (NYSE:WMT).As of the end of the fourth quarter of 2023, 85 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Walmart Inc (NYSE:WMT).7. Coca-Cola Femsa SAB de CV (NYSE:KOF)Bill Gates' Stake: $588,161,006The Mexican arm of Coca Cola, Coca-Cola Femsa SAB de CV (NYSE:KOF), ranks seventh in our list of the top dividend stocks in Bill Gates' portfolio. The Bill & Melinda Gates Foundation had a $478 million stake in Coca-Cola Femsa SAB de CV (NYSE:KOF).Hayden Capital made the following comment about The Coca-Cola Company (NYSE:KO) in its third 2023 investor letter:“It’s not just emerging markets either, where one could argue a “scarcity premium” given fewer quality public companies. Even in the US, The Coca-Cola Company (NYSE:KO) trades at ~30x P/E despite having the same earnings as 10 years ago.Both of these companies actually have lower revenues than 10 – 15 years ago too, indicating that their profit growth is mostly from margin expansion. This can only last for so long before there’s no more excess expenses left to cut.I find it ironic that all these companies trade as “bond-equivalents” in the minds of investors – even commanding lower yields than US treasuries, the safest security in the world. But it’s clear that their businesses are not nearly as safe. Coca-Cola is facing disruption risk from consumers shifting to new, heathier beverage brands.But these companies are ~35% more expensive than US Treasuries, despite the heightened risk. On a risk-adjusted basis, one could argue the implied premium is even higher.”Perhaps the explanation is simply the price volatility difference between these stocks and treasuries over the last two years. For example, 10-year Treasury bonds are down ~-20% since the beginning of 2022. By comparison, KO and PG are remarkably down only -4 – 6% over that time frame.”6. Ecolab Inc (NYSE:ECL)Bill Gates' Stake: $1,034,999,027Water treatment and cleaning solutions company Ecolab Inc (NYSE:ECL) is one of the top performers in Bill Gates' portfolio, with the stock up 40% over the past one year. It has a dividend yield of just over 1% as of February 24. The Bill & Melinda Gates Foundation has a $1 billion stake in Ecolab Inc (NYSE:ECL).Earlier this month Ecolab Inc (NYSE:ECL) posted Q4 results. Adjusted EPS in the fourth quarter came in at $1.55, beating estimates by $0.01. Revenue in the quarter jumped 7% year over year to $3.9 billion, missing estimates by $40 million.Mairs & Power Growth Fund stated the following regarding Ecolab Inc. (NYSE:ECL) in its fourth quarter 2023 investor letter:“All of our Materials holdings—Ecolab Inc. (NYSE:ECL), HB Fuller (FUL), and Sherwin Williams (SHW)—also posted strong results in 2023, a stark reversal from the prior year. After oil prices spiked above $100 in 2022 due to the Ukraine-Russia Conflict, oil has since pulled back to the low $70s. Oil and its by-products are major inputs for all of our Materials holdings; as such, lower oil prices have led to a rebound in profits. For example, our largest Materials holding—Ecolab—is expected to increase earnings more than 15% this year after declining 5% last year.” Click to continue reading and see Bill Gates' 5 Dividend Stocks To Buy.Suggested articles:What Ray Dalio Is Doing These Days? – Top 10 Stock Picks in 202315 Stocks Dumb Money’s Steve Cohen Is Betting On NowAQR Capital Management: AUM, Performance, Stock PicksDisclosure: None. Bill Gates' 16 Dividend Stocks To Buy is originally published on Insider Monkey.

Insider Monkey

Bill Gates’ 16 Dividend Stocks To Buy

https://finance.yahoo.com/news/bill-gates-16-dividend-stocks-193811657.html

6e7b9ace-c2e8-30bc-88cc-ebd3ecce90f6

ECL

Many companies are still working to understand what artificial intelligence can do beyond work in call centers and among software coders. - Rob DobiCisco Systems recently had a problem: A manager and a new employee at the technology giant struggled to work together. Both people felt frustrated. What to do?Most Read from The Wall Street JournalMore Americans Are Treating Their 401(k)s Like Cash MachinesIncident on Latam Flight Injures Dozens Aboard Boeing 787 DreamlinerBehind the Alaska Blowout: a Manufacturing Habit Boeing Can’t BreakIt Isn’t Just Big Tech Propelling Gains in the Stock Market AnymoreWhat You Need to Know About Gold’s Curious RallyAs is increasingly the answer inside large U.S. companies, leaders turned to generative AI for help. Cisco’s human-resources team uploaded chat logs between the employee and manager, hoping to suss out the source of the tension. (Both people consented to this, Cisco says.)After quickly sifting through pages of discussions, the software came up with an answer: The manager didn’t feel heard as the employee asked some of the same questions over and over. The employee, seeking as much clarity as possible, could sense a high degree of frustration. The company says knowing the details helped the relationship improve.“There was just this ‘Aha!’ ” says Francine Katsoudas, Cisco’s top human-resources executive.Ominous and optimisticCompanies are turning to generative AI for ever more sophisticated tasks—including work such as deciphering friction between colleagues at Cisco, once exclusively the domain of well-paid knowledge workers. This change is fueling predictions of workplace transformation—both ominous and optimistic.Some fear a wave of disruptive job losses, as AI becomes better able to take over the work long done by knowledge workers. The thinking goes: Do you really need so many people in the HR department if the software can do it cheaper and more quickly?But others say such concerns are overblown. By contrast, they anticipate that AI will unlock innovations and usher in a higher quality of life.JPMorgan Chase CEO Jamie Dimon has said, for instance, that AI might require future generations to work only 3½ days a week. Technology will invent cures for cancer, Dimon said last year, and allow more people to live to 100 by finding breakthroughs impossible to achieve through the mind alone.Story continuesOthers say AI will free people to do more of what interests them. Within 10 years, AI will take on “80% of 80% of the jobs that exist today,” said Vinod Khosla, founder of venture-capital firm Khosla Ventures, in a Wall Street Journal interview last fall.“The need to work in society will disappear within 25 years for those countries that adapt these technologies,” Khosla said.Among executives on the ground, however, the situation is more murky. Many say they are now trying to parse the predictions, and to separate hype from reality to come up with their own answer to a fundamental question: How pervasive will AI become in corporate life, and how quickly should I adopt it in my own company?“At the end of the day, it’s the human interaction with the technology that’s going to make or break the impact,” says Marc Casper, CEO of life-sciences company Thermo Fisher Scientific, which is using generative AI in corporate functions such as marketing to help write advertising content.A host of hurdlesSome roles no doubt will significantly change. Research by the McKinsey Global Institute has found that, with generative AI and other tools, 30% of the hours worked today could be automated by 2030.Even so, the hurdles to broad AI adoption are many. Regulations remain in flux. Adopting AI means added costs. Companies selling AI tools, including OpenAI, face legal challenges, including from prominent executives like Elon Musk. Within many companies, data is often messy and unorganized, making it harder to use AI. Some executives also fear putting proprietary information inside large language models.Then there is the human issue. Labor unions have pushed back against AI; in Hollywood, the use of AI was a central issue in strikes last year among unions representing actors and writers.Getting people to change how they do their jobs and to adopt AI tools also takes time.“It’s one thing for the CEO and the board and the management team to understand AI. But to really succeed you have to bring everybody along, and so that’s actually the hardest part,” says Clara Shih, who oversees artificial intelligence at Salesforce.No job-killer, yetIn interviews with more than two dozen executives in recent weeks, many executives say they haven’t seen evidence yet that artificial intelligence is the job-killer—at least in the next few years—that some initially suspected when OpenAI’s ChatGPT emerged more than a year ago. This is partly because many companies are still working to understand all that AI can do beyond work in call centers and among software coders, where many employers gave priority to early AI projects.A variety of experiments are under way. Some companies are now rolling out AI tools to create photos for marketing projects or to analyze contracts. Others hope it can be used to produce training videos more quickly. Bob Toohey, chief human resources officer at the insurer Allstate, recently experimented with an AI tool that could allow the company to create internal videos in his voice or others from text prompts to allow for faster on-the-job learning.At Ecolab, a water-management and infection-prevention company, executives are testing generative AI to analyze earnings reports from rivals and to help in preparing for its own calls with investors.Christophe Beck, Ecolab’s chief executive officer, says the company’s finance team is using generative AI to parse earnings-call transcripts from competitors, asking questions such as: “What were the highlights that the CEO shared?” and “Where was the CEO the most secure? Where was the CEO least secure?”For its own results, Ecolab is experimenting in using generative AI to analyze what it emphasized in its quarterly earnings call a year ago, a potentially helpful reminder as teams craft a new earnings script. The results have been largely correct, if not fully trustworthy, Beck says. One generative AI analysis mixed up the CEO of Ecolab, inserting Beck’s predecessor in the role even though he stepped down more than three years ago.Reading the analysis, Beck joked: “I don’t know if I’ve been demoted,” but said the tools do help in saving some time. “It’s 60% right, 40% wrong,” he says. Beck has emphasized that AI tools be used throughout the company to improve its services.A question of costWith some AI software priced at $30 per employee a month, a number of executives have questioned the price tag. Many employers are finding that they are spending more money on AI than they are realizing in productivity improvements, says Christoph Schweizer, CEO of Boston Consulting Group. He encourages companies not to take a wait-and-see approach, saying they should try AI tools now to gain an edge.The impact on the size of the workforce remains a question. Some companies say they won’t fire existing employees, but they may not need to hire as significantly in the future if software can take on more work. The result is the same: fewer jobs.A survey released by the consulting giant Accenture in January found that roughly 60% of workers fear AI could eliminate their jobs. Manish Sharma, CEO of North America for Accenture, says that, based on his interactions with clients, he is convinced that AI will create more roles than it replaces. The jobs, though, might be different.One of the early revelations of AI, employers say, is that it is enabling workers to get up to speed on new tasks more quickly. That, in turn, also affects how companies hire.At the San Francisco company Tome, a generative AI storytelling and presentation platform, CEO Keith Peiris says he has begun looking to hire what he calls “resourceful generalists,” versus specialists with the exact experience he may need, knowing smart professionals can use AI software to amplify their knowledge and solve new problems that emerge.Chip maker Qualcomm is looking to create more marketing content for social-media platforms like TikTok. Don McGuire, the company’s chief marketing officer, says he’d likely never get budget approval to hire an army of additional video editors and others needed for such an effort. “I can’t hire enough people to move that fast,” he says.So instead, he has decided to build a new generative-AI creative studio in Mexico City, which is a short flight from Qualcomm’s headquarters in San Diego, but that has a lower cost of living and widespread availability of creative talent. The company plans to hire up to a dozen people there; new AI tools from Adobe and other vendors will allow the marketers to work with 25%-50% greater productivity, reducing the need for massive hiring, McGuire said.“It would be to augment my current set of resources,” he says. “It will be built with people, but with tools that are rooted in Gen AI.”Chip Cutter is a reporter covering workplace issues in The Wall Street Journal’s New York bureau. He can be reached at [email protected] Read from The Wall Street JournalBanks and Users Warn of Scammers on Facebook MarketplaceElon Musk’s xAI to Open-Source Its Grok Chatbot, in Latest Swipe at OpenAIEighty Percent of the World’s Stock Options Aren’t Traded Where You ThinkEQT and Equitrans Midstream to Combine in Big Natural-Gas DealWhen Is It OK to Manipulate Your Family Photos—and When Does It Go Too Far?

The Wall Street Journal

AI Is Taking On New Work. But Change Will Be Hard—and Expensive.

https://finance.yahoo.com/news/ai-taking-change-hard-expensive-134100799.html

b9642f2d-29fa-3470-babb-5c025464e447

ECL

BASF SE’s BASFY Monomers division has achieved a significant milestone in its sustainability journey, having achieved global ISCC PLUS and REDcert certifications for all production sites across all regions. With the certification of sites across the globe, BASF can now provide American customers with certified, sustainable Isocyanate solutions manufactured in the United States, ensuring a perfect fit for their product mix.REDcert and ISCC PLUS are sustainability certifications provided for the use of sustainable biomass as raw material in the chemical industry.The most recent accomplishment involves the MDI production site in Geismar, LA, USA, which, having secured certifications from ISCC PLUS and REDcert is now part of the certified locations worldwide.The company remains focused on driving sustainable transformation and meeting the high standards set by international certifiers. The Monomers division has been committed to improving its portfolio to align with sustainability goals and cater to customers' diverse needs worldwide.BASF SE Price and Consensus BASF SE Price and ConsensusBASF SE price-consensus-chart | BASF SE Quote In January 2023, BASF's Monomers division pledged to develop a circular option for every major product line by 2025. Remarkably, just one year later, approximately 70% of its extensive portfolio, including isocyanates, polyamides, glues, resins, precursors and inorganics, are available in chemically recycled or biomass-balanced variants, LowPCF products, or even ZERO variants(Zero Emissions, Renewable Origin), totaling 345 certified sustainable product alternatives. These alternatives cater to various industries, such as food packaging, textiles, automotive, construction, wood binders, and more.Moreover, the Monomers division continues to innovate by introducing novel solutions like polyol recycling and developing proprietary technologies that drive sustainability across industries. For instance, the introduction of loopamid addresses circularity in the fashion industry by recycling polyamide 6-based textile waste, allowing used fibers and materials to be recycled into new yarn while retaining material characteristics.Story continuesIn addition to expanding its sustainable product portfolio, BASF's Monomers division implemented measures to reduce carbon emissions across its production sites globally. These efforts align with BASF's overarching sustainability target of achieving net-zero carbon emissions by 2050. Leveraging the benefits of BASF's global Verbund network, significant CO2 mitigation measures have been implemented, such as improved heat recovery measures at the Shanghai BASF Polyurethane site, which is expected to reduce CO2 emissions by up to 34,000 tons annually.In the past year, BASF’s shares have gained 8.7% compared with the industry’s 6.8% fall in the same period.Zacks Investment ResearchImage Source: Zacks Investment ResearchZacks Rank & Key PicksBASF currently carries a Zacks Rank #5 (Strong Sell).Some better-ranked stocks in the Basic Materials space are Ecolab Inc. ECL, sporting a Zacks Rank #1 (Strong Buy), and Carpenter Technology Corporation CRS and Hawkins, Inc. HWKN, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Ecolab has a projected earnings growth rate of 22.65% for the current year. The Zacks Consensus Estimate for ECL’s current-year earnings has been revised upward by 5.4% in the past 60 days. ECL topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.7%. The company’s shares have rallied 41.6% in the past year.The consensus estimate for CRS’ current fiscal year earnings is pegged at $4 per share, indicating a year-over-year surge of 250.9%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 12.2%. The company’s shares have increased 52.3% in the past year.The consensus estimate for HWKN’s current fiscal year earnings is pegged at $3.61 per share, indicating a 26% year-over-year rise. HWKN beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have surged 69.8% 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 reportEcolab Inc. (ECL) : Free Stock Analysis ReportBASF SE (BASFY) : Free Stock Analysis ReportCarpenter Technology Corporation (CRS) : Free Stock Analysis ReportHawkins, Inc. (HWKN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

BASF (BASFY) Monomers Gets Global Production Site Certification

https://finance.yahoo.com/news/basf-basfy-monomers-gets-global-131600464.html

5e76ea57-889e-387a-9758-0d2a1a2d0e49

ECL

Want to start the week ahead of the pack? Check out Momentum Mondays, where I cover the leading breakout stocks in the market, summarize the major events of the week ahead, and prepare investors for profitable trading.Today, we will be taking a look at the broad stock market indexes to summarize the action of the last few weeks, then we will look at the economic calendar and earnings releases to address any market moving data coming our way. And finally, I will share four compelling technical trade setups in stocks with top Zacks Ranks.Stocks Grinding Higher… Time for a Rest? After last week’s goldilocks employment number and Jerome Powells open-ended testimony at congress, all that’s left is inflation data.On Tuesday morning we get CPI and Core CPI data. Analysts are forecasting a MoM increase of 0.4% and YoY increase of 3.1% for headline CPI and 0.3% MoM and 3.7% YoY for Core CPI.Then on Thursday morning PPI and Core PPI round up the week’s major data points.After seeing some diverging performance across the magnificent seven, along with some seasonal weakness approaching there is some potential this week for a minor correction this week. If the S&P 500 index can move below the 5,090 level, we may see 5,000 and even below there.It is also worth noting that both Bitcoin and Gold made new all-time highs last week.TradingViewImage Source: TradingViewTechnical SetupsWe have a handful of nice trading setups still in the market which can be monitored by active traders. All of these trading ideas come from stocks with top Zacks ranks.Netflix NFLX may be a worthy next addition to the Mag 7. The breakout level is $614.TradingViewImage Source: TradingViewEcolab ECL has an extremely tight bull flag forming on the daily chart. If it can breakout above $226, it should continue higher.TradingViewImage Source: TradingViewBlock SQ is one of my favorite stocks in the market right now. An opportunity for contrarians, but with upward trending earnings revisions and a nice technical trade setup.Story continuesTradingViewImage Source: TradingViewCardinal Health CAH has been a steady performer this year, and offers the advantage of being a defensive stock.TradingViewImage Source: TradingViewBottom LineEven the best trading setups fail, so it is always important for traders to prioritize making a trading plan, following the plan, and utilizing strict risk management protocols.Good luck this week traders!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 reportEcolab Inc. (ECL) : Free Stock Analysis ReportNetflix, Inc. (NFLX) : Free Stock Analysis ReportCardinal Health, Inc. (CAH) : Free Stock Analysis ReportBlock, Inc. (SQ) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Momentum Monday: Inflation Data in Focus this Week

https://finance.yahoo.com/news/momentum-monday-inflation-data-focus-162000634.html

8897ec89-ced1-3791-a3c8-c7540d8d76bf

ED

In this article, we discuss 11 best electric utility stocks to buy now. If you want to skip our discussion on the electric utility industry, head directly to 5 Best Electric Utility Stocks To Buy Right Now. In the face of a continuously changing energy landscape, US utilities maintain three primary objectives according to Ernst & Young (EY) – ensuring reliable, affordable, and sustainable energy. The utilities sector in 2024 requires a careful balance between conventional and innovative funding approaches to advance these priorities. Presently, utility executives are better equipped than ever to decisively navigate the transformative decisions required for the future. Initial focus should be on three primary opportunities – (1) Strengthening the balance sheet to support investment strategies that generate enduring value for stakeholders, (2) Optimizing newly accessible capital, such as grants and tax credits, to expedite the energy transition for power and utility companies, and (3) Upgrading technology to advance business operations.In 2023, the US power and utilities industry experienced advancements in decarbonization, increased deployment of solar power and energy storage, and improved grid reliability. As per a recent Deloitte report, the sector faced mixed fundamentals, with a slight decrease in electricity sales due to mild weather. Wholesale electricity prices dropped in response to lower natural gas costs, but high capital expenditures for grid modernization and decarbonization, coupled with rising interest rates, contributed to potential customer bill increases. The industry also grappled with costs related to disaster recovery, cybersecurity, and climate-related challenges. Despite lower fuel costs, retail electricity prices were projected to increase by 1.9% year-over-year, with residential prices potentially rising by 4.7%. In 2024, electricity prices are expected to stabilize, with a forecasted 2% increase in sales. The industry may focus on electrification, resource adequacy, and addressing rising costs, exploring the potential use of AI, including generative AI, to tackle challenges. Story continuesIn 2023, utilities faced a decline as investor preference shifted from defensive stocks to mega-cap growth companies, particularly in the technology and communication services sectors. This led to utilities being one of the weakest-performing sectors in the S&P 500. However, by late 2023, utilities stocks experienced significantly lower valuations, trading at one of the largest discounts to the S&P in the past two decades, according to a Fidelity report. The utility sector's near-term performance may continue to be influenced by investor sentiment and economic conditions in 2024. If the economy maintains a soft landing with strong growth and low inflation, utilities may remain out of favor. Conversely, in the face of economic weakness, investors could turn back to defensive stocks like utilities, known for stability, durable cash flows, and dividends, especially during market volatility. A decline in interest rates could further benefit utility stocks by making their dividends more attractive compared to bonds. Looking at the longer term, utilities are positioned at the center of the shift from carbon-based fuels to renewable energy sources. The Inflation Reduction Act of 2022 is expected to accelerate this transition by providing incentives for the adoption of clean-energy options and reducing greenhouse gasses. Consumers, businesses, and governments are actively working to decrease their carbon footprints, and forecasts suggest a potential doubling of the portion of US power generation from renewable sources by 2030.Some of the best electric utility stocks to invest in include NextEra Energy, Inc. (NYSE:NEE), PG&E Corporation (NYSE:PCG), and The Southern Company (NYSE:SO). Our Methodology We chose the top electric utility stocks based on overall hedge fund sentiment toward each stock. We have assessed the hedge fund sentiment from Insider Monkey’s database of 910 elite hedge funds tracked as of the end of the third quarter of 2023. The list is arranged in ascending order of the number of hedge fund holders in each firm. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). 11 Best Electric Utility Stocks To Buy Right NowA vibrant skyline illuminated by the lights of the electric utility company.Best Electric Utility Stocks To Buy Right Now11. Edison International (NYSE:EIX)Number of Hedge Fund Holders: 28Edison International (NYSE:EIX) is involved in the generation and distribution of electric power. The company serves residential, commercial, industrial, public, and agricultural customers in California. Additionally, Edison International offers decarbonization and energy solutions to commercial, institutional, and industrial customers in North America and Europe. On December 31, Edison International (NYSE:EIX) declared a $0.78 per share quarterly dividend, a 5.8% increase from its prior dividend of $0.74. The dividend was distributed to shareholders on January 31. According to Insider Monkey’s fourth quarter database, 28 hedge funds were bullish on Edison International (NYSE:EIX), same as the prior quarter. Richard S. Pzena’s Pzena Investment Management is the leading stakeholder of the company, with 13.3 million shares worth $950.7 million. Like NextEra Energy, Inc. (NYSE:NEE), PG&E Corporation (NYSE:PCG), and The Southern Company (NYSE:SO), Edison International (NYSE:EIX) is one of the best utility stocks to invest in. ClearBridge Large Cap Value Strategy made the following comment about Edison International (NYSE:EIX) in its Q3 2023 investor letter:“Our two utilities Sempra and Edison International (NYSE:EIX) were also negatively impacted by rising rates, although both outperformed the utility benchmark. We maintain a large active overweight to Sempra and added opportunistically to Edison to reflect its strong fundamentals.”10. Consolidated Edison, Inc. (NYSE:ED)Number of Hedge Fund Holders: 28Consolidated Edison, Inc. (NYSE:ED) specializes in regulated electric, gas, and steam delivery services in the United States. The company operates infrastructure, including transmission lines, substations, transformers, overhead and underground distribution lines, as well as natural gas distribution mains and service lines. It is one of the best utility stocks to buy. On February 15, Consolidated Edison, Inc. (NYSE:ED) reported a Q4 non-GAAP EPS of $1.00, beating market estimates by $0.03. The company also declared a $0.83 per share quarterly dividend on January 18, which will be paid on March 15 to shareholders on record as of February 14. According to Insider Monkey’s fourth quarter database, 28 hedge funds were bullish on Consolidated Edison, Inc. (NYSE:ED), compared to 27 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the leading stakeholder of the company, with 879,923 shares worth $80 million. 9. Eversource Energy (NYSE:ES)Number of Hedge Fund Holders: 29Eversource Energy (NYSE:ES) is a public utility holding company engaged in the energy delivery business. The company operates through segments such as Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution. Eversource Energy (NYSE:ES) is one of the best utility stocks to invest in. On February 13, Eversource Energy (NYSE:ES) announced its agreement to divest its 50% ownership in the South Fork Wind and Revolution Wind projects, located off the northeastern US coast, to Global Infrastructure Partners for approximately $1.1 billion in cash. This move brings Eversource Energy a step closer to achieving its objective of withdrawing from the challenged wind power sector. According to Insider Monkey’s fourth quarter database, 29 hedge funds were long Eversource Energy (NYSE:ES), compared to 30 funds in the preceding quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is the largest stakeholder of the company, with 939,334 shares worth $58 million. 8. Duke Energy Corporation (NYSE:DUK)Number of Hedge Fund Holders: 30Duke Energy Corporation (NYSE:DUK) operates as an energy company in the United States. The company has two segments – Electric Utilities and Infrastructure (EU&I) and Gas Utilities and Infrastructure (GU&I). On January 11, Duke Energy Corporation (NYSE:DUK) declared a quarterly dividend of $1.025 per share, in line with previous. The dividend is payable on March 18, to shareholders of record on February 16. It is one of the best utility stocks to watch.According to Insider Monkey’s fourth quarter database, 30 hedge funds were bullish on Duke Energy Corporation (NYSE:DUK), compared to 39 funds in the last quarter. John Overdeck and David Siegel’s Two Sigma Advisors is a significant position holder in the company, with 733,100 shares worth over $71 million.7. WEC Energy Group, Inc. (NYSE:WEC)Number of Hedge Fund Holders: 31WEC Energy Group, Inc. (NYSE:WEC) operates in the regulated natural gas and electricity sectors, providing renewable and non-regulated renewable energy services in the United States. The company operates through six segments – Wisconsin, Illinois, Other States, Electric Transmission, Non-Utility Energy Infrastructure, and Corporate and Other. WEC Energy Group, Inc. (NYSE:WEC) is one of the top utility stocks to invest in. On February 1, WEC Energy Group, Inc. (NYSE:WEC) reported a Q4 non-GAAP EPS of $1.10, beating Wall Street estimates by $0.02. However, the revenue of $2.22 billion fell short of market consensus by $510 million. According to Insider Monkey’s fourth quarter database, 31 hedge funds were long WEC Energy Group, Inc. (NYSE:WEC), compared to 25 funds in the last quarter. Israel Englander’s Millennium Management is the biggest stakeholder of the company, with 1.8 million shares worth $152.7 million. Carillon Tower Advisers made the following comment about WEC Energy Group, Inc. (NYSE:WEC) in its Q3 2022 investor letter:“WEC Energy Group, Inc. (NYSE:WEC), the Wisconsin electric and gas utility, fell in a weak utility group as interest rates rose and fears of bad debt expenses gathered. We view the company’s bad debt risk as relatively modest compared to the industry.”6. American Electric Power Company, Inc. (NASDAQ:AEP)Number of Hedge Fund Holders: 32American Electric Power Company, Inc. (NASDAQ:AEP) is an electric public utility holding company in the United States, engaged in the generation, transmission, and distribution of electricity for both retail and wholesale customers. On January 19, American Electric Power Company, Inc. (NASDAQ:AEP) declared a quarterly dividend of $0.88 per share, in line with previous. The dividend is payable on March 8, to shareholders on record as of February 9. According to Insider Monkey’s fourth quarter database, 32 hedge funds held stakes in American Electric Power Company, Inc. (NASDAQ:AEP), compared to 39 funds in the last quarter. Eric W. Mandelblatt’s Soroban Capital Partners is a prominent stakeholder of the company, with approximately 2 million shares worth $159.5 million. In addition to NextEra Energy, Inc. (NYSE:NEE), PG&E Corporation (NYSE:PCG), and The Southern Company (NYSE:SO), American Electric Power Company, Inc. (NASDAQ:AEP) is one of the best utility stocks to monitor. It ranks 6th on our list. Here is what ClearBridge Investments Value Equity has to say about American Electric Power Company, Inc. (NASDAQ:AEP) in its Q1 2022 investor letter:“About 5% of the portfolio is in transitioning power companies, typically migrating from coal to renewables. We have been active in encouraging these transitions and added a new position in American Electric Power (NASDAQ:AEP). AEP has the fastest planned renewable energy ramp in the U.S., with plans to both shrink coal and grow renewables by 50% each by 2030. This would drive an 80% emissions reduction, while supporting high single-digit earnings growth at a double-digit return.” Click to continue reading and see 5 Best Electric Utility Stocks To Buy Right Now.  Suggested articles:12 Best Gold Mining Companies to Invest In According to Analysts13 High Growth Penny Stocks That Are Profitable20 Most Carbon Productive Companies in the World Disclosure: None. 11 Best Electric Utility Stocks To Buy Right Now is originally published on Insider Monkey.

Insider Monkey

11 Best Electric Utility Stocks To Buy Right Now

https://finance.yahoo.com/news/11-best-electric-utility-stocks-134033847.html

667fe21f-8bb2-3768-bcb2-20ec5da857a2

ED

Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.2 Stocks to Add to Your WatchlistThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information. With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure.Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. American Electric Power (AEP) earns a Zacks Rank #3 right now and its Most Accurate Estimate sits at $1.28 a share, just four days from its upcoming earnings release on February 27, 2024.AEP has an Earnings ESP figure of 0.79%, which, as explained above, is calculated by taking the percentage difference between the $1.28 Most Accurate Estimate and the Zacks Consensus Estimate of $1.27.AEP is part of a big group of Utilities stocks that boast a positive ESP, and investors may want to take a look at Consolidated Edison (ED) as well.Slated to report earnings on May 2, 2024, Consolidated Edison holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $2.01 a share 69 days from its next quarterly update.Story continuesConsolidated Edison's Earnings ESP figure currently stands at 4.51% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.92.AEP and ED's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAmerican Electric Power Company, Inc. (AEP) : Free Stock Analysis ReportConsolidated Edison Inc (ED) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

How to Find Strong Utilities Stocks Slated for Positive Earnings Surprises

https://finance.yahoo.com/news/strong-utilities-stocks-slated-positive-140004752.html

f473880b-996f-38a8-bf94-e9ad373f1899

ED

Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine Consolidated Edison, Inc. (NYSE:ED), by way of a worked example.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 simpler terms, it measures the profitability of a company in relation to shareholder's equity. See our latest analysis for Consolidated Edison How To Calculate Return On Equity?The formula for return on equity is:Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' EquitySo, based on the above formula, the ROE for Consolidated Edison is:12% = US$2.5b ÷ US$21b (Based on the trailing twelve months to December 2023).The 'return' is the yearly profit. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.12.Does Consolidated Edison Have A Good ROE?One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, Consolidated Edison has a better ROE than the average (9.5%) in the Integrated Utilities industry.roeThat's what we like to see. With that said, a high ROE doesn't always indicate high profitability. A higher proportion of debt in a company's capital structure may also result in a high ROE, where the high debt levels could be a huge risk . You can see the 4 risks we have identified for Consolidated Edison by visiting our risks dashboard for free on our platform here.How Does Debt Impact Return On Equity?Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used.Story continuesCombining Consolidated Edison's Debt And Its 12% Return On EquityConsolidated Edison does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.16. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.ConclusionReturn on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking this free report on analyst forecasts for the company.Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.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 Consolidated Edison, Inc. (NYSE:ED) A High Quality Stock To Own?

https://finance.yahoo.com/news/consolidated-edison-inc-nyse-ed-110024023.html

a8e11a85-79bc-34ef-bcdc-e0229ec33123

EFX

Equifax Inc (NYSE:EFX) stands as a global leader in data, analytics, and technology, with a significant presence in credit reporting and workforce solutions.Despite strong market positioning, the company faces challenges from cybersecurity threats and intense competition within the industry.Opportunities for growth are abundant through strategic acquisitions, cloud technology advancements, and expansion of unique data assets.Threats include regulatory changes, technological disruptions, and potential data breaches that could impact the company's operations and reputation.Warning! GuruFocus has detected 8 Warning Signs with EFX.On February 22, 2024, Equifax Inc (NYSE:EFX) filed its annual 10-K report, providing a comprehensive overview of its financial performance and strategic positioning. As one of the leading credit bureaus in the United States, Equifax Inc (NYSE:EFX) plays a pivotal role in the financial ecosystem, offering credit reports and workforce solutions that are integral to lenders' credit decisions. With over 20% of its revenue generated from international markets, the company's global footprint is substantial. The 10-K filing reveals that Equifax Inc (NYSE:EFX) has maintained a robust financial standing, with a diversified revenue stream and a strong balance sheet. The company's market capitalization as of June 30, 2023, was approximately $28.88 billion, indicating a solid investor confidence in its business model and future prospects.Decoding Equifax Inc (EFX): A Strategic SWOT InsightStrengthsGlobal Reach and Diversified Portfolio: Equifax Inc (NYSE:EFX) boasts a comprehensive global presence, operating across North America, Asia Pacific, Europe, and Latin America. This geographical diversification not only mitigates the risk of regional economic downturns but also provides a broad spectrum of growth opportunities. The company's diversified portfolio, which includes credit reporting, workforce solutions, and various analytical services, contributes to a stable revenue stream and reduces dependence on any single product or market.Story continuesTechnological Advancements and Cloud Transformation: The company's strategic investment in cloud capabilities and technology has positioned it at the forefront of innovation within the industry. Equifax Inc (NYSE:EFX)'s cloud data and technology transformation are enabling the development of new products and services, enhancing customer experience, and improving system resiliency. This technological edge is a significant strength that allows the company to respond quickly to market demands and maintain a competitive advantage.Strong Brand and Market Position: As one of the "Big Three" credit reporting agencies, Equifax Inc (NYSE:EFX) enjoys a strong brand reputation and a loyal customer base. Its brand is synonymous with reliability and accuracy in credit reporting, which is critical for maintaining trust with both consumers and financial institutions. The company's market position is reinforced by its extensive data assets and advanced analytics, which provide unique insights for decision-making.WeaknessesData Security Concerns: Despite significant investments in data security, Equifax Inc (NYSE:EFX) remains vulnerable to cyber threats and data breaches, as highlighted in the 10-K filing. The nature of the company's business, dealing with sensitive personal and financial information, makes it a prime target for cyberattacks. Any security breach can lead to substantial financial costs, legal liabilities, and erosion of customer trust, which can have long-term implications for the company's reputation and profitability.Regulatory Compliance: The company operates in a highly regulated environment, with stringent laws governing consumer reporting, data protection, and privacy. Compliance with these evolving regulations requires constant vigilance and can result in significant operational costs. Moreover, any failure to comply can lead to penalties, legal challenges, and damage to the company's credibility.Dependence on Third-Party Data Providers: Equifax Inc (NYSE:EFX)'s business model relies heavily on acquiring data from third-party sources. This dependence can pose a risk if these relationships are disrupted or if the quality and accuracy of the data provided are compromised. Ensuring the integrity of third-party data is crucial for maintaining the company's product quality and customer trust.OpportunitiesStrategic Acquisitions and Partnerships: Equifax Inc (NYSE:EFX) has the opportunity to further expand its data assets and capabilities through strategic acquisitions and partnerships. By integrating new data sources and technologies, the company can enhance its product offerings, enter new markets, and strengthen its competitive position. The 10-K filing indicates a clear focus on leveraging inorganic growth to drive revenue and expand the company's unique differentiated data assets.Expansion into Emerging Markets: The company's international segment presents significant opportunities for growth, particularly in emerging markets where credit reporting and financial services are still developing. By establishing a presence in these markets, Equifax Inc (NYSE:EFX) can capitalize on the growing demand for credit information and analytics services, thereby driving global revenue growth.Advancements in Analytics and Decisioning Platforms: The ongoing investment in cloud-native technology and analytics platforms positions Equifax Inc (NYSE:EFX) to offer more sophisticated and tailored solutions to its customers. The company's ability to provide multi-data solutions at scale is a key differentiator that can attract new customers and deepen relationships with existing ones.ThreatsIntense Industry Competition: Equifax Inc (NYSE:EFX) faces stiff competition from other major credit reporting agencies, such as Experian and TransUnion, as well as from a multitude of niche providers offering specialized services. To maintain its market share, the company must continuously innovate and provide superior products and services that meet the evolving needs of its customers.Technological Disruptions: The rapid pace of technological change poses a threat to Equifax Inc (NYSE:EFX), as new entrants or existing competitors may develop disruptive technologies that could alter the competitive landscape. Staying aheadThis 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 Equifax Inc (EFX): A Strategic SWOT Insight

https://finance.yahoo.com/news/decoding-equifax-inc-efx-strategic-050445158.html

45cc69c4-ef46-3663-a998-b37ca7a1bae4

EFX

There are a few key trends to look for if we want to identify the next multi-bagger. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. However, after investigating Equifax (NYSE:EFX), we don't think it's current trends fit the mold of a multi-bagger.Understanding Return On Capital Employed (ROCE)Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Equifax, this is the formula:Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)0.094 = US$967m ÷ (US$12b - US$2.0b) (Based on the trailing twelve months to December 2023).So, Equifax has an ROCE of 9.4%. In absolute terms, that's a low return and it also under-performs the Professional Services industry average of 13%. Check out our latest analysis for Equifax roceAbove you can see how the current ROCE for Equifax compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Equifax .What Can We Tell From Equifax's ROCE Trend?There are better returns on capital out there than what we're seeing at Equifax. Over the past five years, ROCE has remained relatively flat at around 9.4% and the business has deployed 62% more capital into its operations. This poor ROCE doesn't inspire confidence right now, and with the increase in capital employed, it's evident that the business isn't deploying the funds into high return investments.Our Take On Equifax's ROCEIn summary, Equifax has simply been reinvesting capital and generating the same low rate of return as before. Investors must think there's better things to come because the stock has knocked it out of the park, delivering a 153% gain to shareholders who have held over the last five years. Ultimately, if the underlying trends persist, we wouldn't hold our breath on it being a multi-bagger going forward.Story continuesOn a final note, we've found 1 warning sign for Equifax that we think you should be aware of.For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity.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.

Return Trends At Equifax (NYSE:EFX) Aren't Appealing

https://finance.yahoo.com/news/return-trends-equifax-nyse-efx-110029535.html

02c7cfe6-7d00-3259-be6b-612e2b1f36fa

EFX

It has been about a month since the last earnings report for Equifax (EFX). Shares have added about 7.5% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Equifax due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.Equifax Beats on Q4 EarningsEquifax reported better-than-expected fourth-quarter 2023 results.Adjusted earnings came in at $1.81 per share, beating the Zacks Consensus Estimate by 4% and increasing 19.1% from the year-ago figure. Total revenues of $1.33 billion beat the consensus estimate by 1.1% and increased 10.7% from the year-ago figure on a reported basis and 14% on a local currency basis.Segmental InformationRevenues in the Workforce Solutions segment totaled $559.5 million, up 10% from the year-ago quarter’s figure and beating our estimated $551.2 million. Within the segment, Verification Services’ revenues of $457.1 million increased 15% year over year. Employer Services’ revenues of $102.4 million indicate a 7% year-over-year decline.Revenues in the USIS segment were $427.7 million, up 5% from the year-ago quarter’s level and beating our estimated $422.2 million. Within the segment, Online Information Solutions’ revenues of $327.5 million were up 6% from the year-ago quarter’s figure. Mortgage Solutions’ revenues of $22.9 million declined 12% year over year. Financial Marketing Services’ revenues were $77.3 million, which increased 7% year over year.Revenues in the International division totaled $339.3 million, gaining 20% and 22% year over year on a reported basis and a local-currency basis, respectively. Asia Pacific revenues of $82.2 million declined 3% from the year-ago reported figure on a reported basis and 2% on a local-currency basis.Story continuesRevenues from Europe amounted to $93.6 million, up 15% year over year on a reported basis and 9% on a local currency basis. Latin America revenues of $98.6 million grew 85% year over year on a reported basis and more than 100% on a local-currency basis. Canada revenues of $64.9 million were up 1% year over year, both on a reported basis and a local-currency basis.Operating ResultsAdjusted EBITDA in the fourth quarter of 2023 totaled $446.6 million, reflecting a 20% increase from the year-ago quarter’s level. Adjusted EBITDA margin was 33.7%, which increased 260 basis points from the year-ago reported figure.Workforce Solutions’ adjusted EBITDA margin was 51.2% compared with 46.8% a year ago. Adjusted EBITDA margin for the USIS division was 35.1% compared with 35.3% in the year-ago quarter. Adjusted EBITDA margin for the International segment was 31.2% compared with 25.8% in the year-ago quarter.Balance Sheet & Cash FlowEFX exited the fourth quarter with cash and cash equivalents of $216.8 million. Equifax generated $322.1 million in cash from operating activities in the quarter. The company has a long-term debt of $4.74 billion, down from the quarter-ago reported figure of $5.5 billion. Capital expenditures were $145.7 million. The company distributed $48.1 million as dividends during the quarter.Q1 and 2024 OutlookFor the first quarter of 2024, revenues are expected to be in the $1.375-$1.395 billion band. Adjusted earnings per share are expected to be in the range of $1.33-$1.43. For 2024, revenues are expected in the range of $5.67-$5.77 billion. Adjusted EPS is expected to be in the range of $7.2-$7.5.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.The consensus estimate has shifted -21.48% due to these changes.VGM ScoresCurrently, Equifax has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Equifax has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerEquifax is part of the Zacks Financial Transaction Services industry. Over the past month, Western Union (WU), a stock from the same industry, has gained 16.6%. The company reported its results for the quarter ended December 2023 more than a month ago.Western Union reported revenues of $1.05 billion in the last reported quarter, representing a year-over-year change of -3.6%. EPS of $0.37 for the same period compares with $0.32 a year ago.Western Union is expected to post earnings of $0.40 per share for the current quarter, representing a year-over-year change of -7%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.5%.Western Union has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.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 reportEquifax, Inc. (EFX) : Free Stock Analysis ReportThe Western Union Company (WU) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Equifax (EFX) Up 7.5% Since Last Earnings Report: Can It Continue?

https://finance.yahoo.com/news/equifax-efx-7-5-since-163053209.html

db0563b2-0357-35c6-ba37-954b54fda9c8

EFX

Today we're going to take a look at the well-established Equifax Inc. (NYSE:EFX). The company's stock saw a significant share price rise of 21% in the past couple of months on the NYSE. The company is now trading at yearly-high levels following the recent surge in its share price. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s take a look at Equifax’s outlook and value based on the most recent financial data to see if the opportunity still exists. Check out our latest analysis for Equifax What's The Opportunity In Equifax?According to our valuation model, Equifax seems to be fairly priced at around 13% below our intrinsic value, which means if you buy Equifax today, you’d be paying a fair price for it. And if you believe that the stock is really worth $309.60, then there isn’t much room for the share price grow beyond what it’s currently trading. Is there another opportunity to buy low in the future? Since Equifax’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.What kind of growth will Equifax generate?earnings-and-revenue-growthFuture outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Equifax's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.What This Means For YouAre you a shareholder? It seems like the market has already priced in EFX’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?Story continuesAre you a potential investor? If you’ve been keeping an eye on EFX, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.So while earnings quality is important, it's equally important to consider the risks facing Equifax at this point in time. Case in point: We've spotted 1 warning sign for Equifax you should be aware of.If you are no longer interested in Equifax, you can use our free platform to see our list of over 50 other stocks with a high growth potential.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.

When Should You Buy Equifax Inc. (NYSE:EFX)?

https://finance.yahoo.com/news/buy-equifax-inc-nyse-efx-130023022.html

72c4bce4-c01d-315e-b5bf-e1624972344f

EG

Record Annual Net Income of $2.5 billion and Operating Income of $2.8 billionAnnual 20.9% Net Income ROE and 23.1% Operating Income ROE; TSR1 of 26.5%Fourth Quarter Net Income of $804 million and Operating Income of $1.1 billionWell Positioned in 2024 Following Outstanding 1/1 RenewalsHAMILTON, Bermuda, February 07, 2024--(BUSINESS WIRE)--Everest Group, Ltd. (NYSE: EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions, today reported its fourth quarter 2023 results.Full Year 2023 Highlights20.9% Net Income ROE and 23.1% Operating Income ROE; Total Shareholder Return of 26.5%1$16.6 billion in gross written premium with year-over-year growth of 20.9%2 as reported for the Group, 26.4%2 for Reinsurance, and 10.3%2 for InsuranceCombined ratios of 90.9% for the Group, 86.4% for Reinsurance and 103.0% for InsuranceGroup attritional combined ratio of 86.9% when excluding the impact of 0.7 points from profit commissions associated with net favorable loss reserve development versus 87.4% in the prior year$451 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums, versus $945 million in the prior yearNet investment income increased over $600 million to $1.4 billion, a company recordBook value per share excluding unrealized gains (losses) on AFS fixed maturity investments increased 23.8% to $320.95 versus $259.18 at December 31, 2022Strong operating cashflow for the year of $4.6 billion, a company recordFourth Quarter 2023 Highlights23.8% Net Income ROE and 32.4% Operating Income ROE$4.3 billion in gross written premium with year-over-year growth of 18.3%2 for the Group, 21.9%2 for Reinsurance, and 11.6%2 for InsuranceCombined ratios of 93.2% for the Group, 78.8% for Reinsurance and 132.4% for InsuranceGroup attritional combined ratio of 86.7% when excluding the impact of 2.6 points from profit commissions associated with favorable loss reserve development versus 87.3% in the prior yearNet favorable development of approximately $5 million in prior year loss reserves, resulting in a decrease of 0.1 points on the combined ratio for the Group. Reinsurance benefited from favorable development of $397 million, largely from mortgage and short-tail lines. Insurance reserves were strengthened by $392 million to address the impact of social inflation for long-tail lines, focused on the 2016 to 2019 accident years.$143 million of pre-tax catastrophe losses net of recoveries and reinstatement premiums, primarily driven by Hurricane Otis, versus $15 million in the prior yearNet investment income improved to $411 million versus $210 million in the prior year fourth quarter, a company record, driven by strong fixed income and alternative investment returnsSuccessful execution of our strategy to sell $3.3 billion of lower yielding bonds in the quarter, reinvesting the proceeds into higher-yielding securities with enhanced overall credit quality, contributing to after-tax net realized losses of approximately $211 million and extending duration from 2.7 to 3.3 years sequentially. This is expected to add significant additional interest income in 2024 and beyond.Recognized a $578 million tax benefit from realized deferred taxes accrued driven by the change in Bermuda tax law. This is a preliminary estimate and subject to change.Strong operating cashflow for the quarter of $1.0 billion, in-line with the prior year quarterWith the successful completion of January 1 renewals, we were able to fully deploy the remaining capital raised in May, as well as optimize our hedging strategyStory continuesFootnote 1 denotes annualized figure; represents Total Shareholder Return or "TSR"Footnote 2 denotes constant currency figure and excludes reinstatement premiums"Everest's strong fourth quarter performance capped off an exceptional 2023, delivering record annual results in underwriting income, net investment income, operating income, net income, and cash flow from operations. We executed on our strategic objectives, while delivering an operating ROE of over 23% and a Total Shareholder Return of over 26% for the full year," said Juan C. Andrade, Everest President and CEO. "2023 was the most profitable year in our history. The Everest of today is a stronger and more sophisticated company. We are delivering leading financial returns and we are on track to achieve the targets we set out at our most recent Investor Day. The strength and flexibility of our business was apparent in the fourth quarter as we continued to generate leading returns and further solidified our balance sheet. Everest has entered 2024 stronger and better positioned to take advantage of market opportunities in both franchises. This is evidenced by another well-executed and outstanding January 1 reinsurance renewal and improved primary pricing, generating excellent outcomes for our global portfolio. Looking ahead, we remain focused on achieving our strategic plan goals, with significant momentum across both businesses, and an exceptional team driving even greater value for our shareholders."Summary of Fourth Quarter 2023 Net Income and Other ItemsNet Income of $804 million, equal to $18.53 per diluted share versus fourth quarter 2022 net income of $496 million, equal to $12.66 per diluted shareOperating income of $1.1 billion, equal to $25.18 per diluted share versus fourth quarter 2022 net operating income of $478 million, equal to $12.21 per diluted shareGAAP combined ratio of 93.2%, including 4.3 points of catastrophe losses versus the fourth quarter 2022 figure of 87.8%, including 0.5 points of catastrophe lossesThe following table summarizes the Company’s Net Income and related financial metrics.Net income and operating incomeQ4 Year to Date Q4 Year to DateAll values in USD millions except for per share amounts and percentages2023 2023 2022 2022Everest Group       Net income (loss)804 2,517 496 597Operating income (loss) (1)1,093 2,776 478 1,065        Net income (loss) per diluted common share18.53 60.19 12.66 15.19Net operating income (loss) per diluted common share25.18 66.39 12.21 27.08        Net income (loss) return on average equity (annualized)23.8% 20.9% 20.1% 6.0%After-tax operating income (loss) return on average equity (annualized)32.4% 23.1% 19.4% 10.6%Notes(1)Refer to the reconciliation of net income to net operating income found on page 8 of this press releaseShareholders' Equity and Book Value per ShareQ4 Year to Date Q4 Year to DateAll values in USD millions except for per share amounts and percentages2023 2023 2022 2022Beginning shareholders' equity11,226 8,441 7,649 10,139Net income (loss)804 2,517 496 597Change - unrealized gains (losses) - Fixed inc. investments1,146 986 250 (1,948)Dividends to shareholders(76) (288) (65) (255)Purchase of treasury shares— — (1) (61)Public equity offering of shares— 1,445 — —Other103 102 110 (31)Ending shareholders' equity13,202 13,202 8,441 8,441        Common shares outstanding  43.4   39.2Book value per common share outstanding  304.29   215.54Less: Unrealized appreciation/depreciation of fixed maturity investments ("URAD")  (16.65)   (43.64)Adjusted book value per common share outstanding excluding URAD  320.95   259.18        Change in BVPS adjusted for dividends  44.3 %   (14.0) %Total Shareholder Return ("TSR") - Annualized  26.5 %   5.4 %Common share dividends paid - last 12 months  6.80   6.50The following information summarizes the Company’s underwriting results, on a consolidated basis and by segment – Reinsurance and Insurance, with selected commentary on results by segment.Underwriting information - Everest GroupQ4 Year to Date Q4 Year to Date Year on Year ChangeAll values in USD millions except for percentages2023 2023 2022 2022 Q4 Year to DateGross written premium4,323 16,637 3,639 13,952 18.8 % 19.2 %Net written premium3,861 14,730 3,188 12,344 21.1 % 19.3 %            Loss Ratio:           Current year58.9 % 59.2 % 59.6 % 59.8 % (0.7) pts (0.6) ptsPrior year(0.1) % — % — % — % (0.1) pts — ptsCatastrophe4.3 % 3.5 % 0.5 % 9.0 % 3.8 pts (5.5) ptsTotal Loss ratio63.0 % 62.7 % 60.1 % 68.7 % 2.9 pts (6.0) ptsCommission and brokerage ratio23.8 % 22.0 % 21.6 % 21.4 % 2.2 pts 0.6 ptsOther underwriting expenses6.3 % 6.3 % 6.0 % 5.8 % 0.3 pts 0.5 ptsCombined ratio93.2 % 90.9 % 87.8 % 96.0 % 5.4 pts (5.1) ptsAttritional combined ratio (1), (3)89.3 % 87.6 % 87.3 % 87.4 % 2.0 pts 0.2 pts            Pre-tax net catastrophe losses (2)143 451 15 945    Pre-tax net unfavorable (favorable) prior year reserve development(5) (5) — (1)    Notes(1)Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses and losses from the Russia/Ukraine war.(2)Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums(3)The attritional combined ratio for quarter and year ended December 31, 2023 included approximately $94m of profit commission related to loss reserves releases. Excluding this profit commission, the Group’s attritional combined ratio would have been 86.7% and 86.9% for the quarter and year ended December 31, 2023, respectively.Reinsurance Segment – Quarterly HighlightsGross written premiums grew 21.9% on a constant dollar basis and excluding reinstatement premiums, to approximately $2.9 billion. Growth was broad-based across geographies and lines.Growth was driven by 39.2% growth in Property Pro-Rata, 23.3% growth in Property Catastrophe XOL, and 45.2% growth in Property Non-Catastrophe XOL, when adjusting for reinstatement premiums, as pricing increases and a flight to quality continue globally.Robust pricing momentum continued in the fourth quarter, with Cat pricing up over 45% with improved terms/conditions.Attritional loss ratio improved 40-basis points over last year to 57.8%, while the attritional combined ratio improved 90-basis points to 85.1%, when excluding the impact of 3.6 points from profit commissions associated with favorable loss reserve development.Net favorable prior year development of $397 million, primarily driven by a combination of well-seasoned mortgage and short-tail lines.Pre-tax catastrophe losses were $135 million net of estimated recoveries and reinstatement premiums, driven by Hurricane Otis as well as a number of mid-sized events globally.Underwriting information - Reinsurance segmentQ4 Year to Date Q4 Year to Date Year on Year ChangeAll values in USD millions except for percentages2023 2023 2022 2022 Q4 Year to DateGross written premium2,894 11,460 2,360 9,248 22.6 % 23.9 %Net written premium2,754 10,802 2,301 8,919 19.7 % 21.1 %            Loss Ratio:           Current year57.6 % 57.6 % 58.2 % 58.5 % (0.6) pts (0.9) ptsPrior year(15.2) % (4.1) % 0.3 % 0.1 % (15.5) pts (4.2) ptsCatastrophe5.5 % 4.6 % 0.5 % 10.8 % 5.0 pts (6.2) ptsTotal Loss ratio47.9 % 58.1 % 59.0 % 69.4 % (11.1) pts (11.3) ptsCommission and brokerage ratio28.4 % 25.7 % 24.9 % 24.6 % 3.5 pts 1.1 ptsOther underwriting expenses2.5 % 2.6 % 2.8 % 2.5 % (0.3) pts 0.1 ptsCombined ratio78.8 % 86.4 % 86.8 % 96.5 % (8.0) pts (10.1) ptsAttritional combined ratio (1), (3)88.7 % 86.1 % 86.0 % 86.2 % 2.7 pts (0.1) pts            Pre-tax net catastrophe losses (2)135 430 10 820    Pre-tax net unfavorable (favorable) prior year reserve development(397) (397) 7 5    Notes(1)Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses and losses from the Russia/Ukraine war.(2)Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiums(3)The attritional combined ratio for quarter and year ended December 31, 2023 included approximately $94m of profit commission related to loss reserves releases. Excluding this profit commission, the Reinsurance Segment’s attritional combined ratio would have been 85.1% for the quarter and year ended December 31, 2023, respectively.Insurance Segment – Quarterly HighlightsGross written premiums rose to $1.4 billion, a 11.6% increase year-over-year in constant dollars, driven by a diversified mix of property and specialty lines, partially offset by lower written premiums in monoline workers' compensation and financial lines.Pre-tax catastrophe losses were $8 million, net of estimated recoveries and reinstatement premiums, relatively in-line with the prior year.Net reserve strengthening of $392 million, reflecting our proactive approach to casualty line reserves, which are impacted by well-defined social inflation factors, focused on accident years 2016 to 2019.Attritional loss ratio improved 70-basis points over last year to 62.6%, driven by favorable current year loss experience and business mix.Expense ratio of 28.2% with continued investment in systems, talent, and our global platform.Pricing continues to exceed loss trend.Underwriting information - Insurance segmentQ4 Year to Date Q4 Year to Date Year on Year ChangeAll values in USD millions except for percentages2023 2023 2022 2022 Q4 Year to DateGross written premium1,428 5,177 1,278 4,704 11.7 % 10.0 %Net written premium1,107 3,929 887 3,426 24.8 % 14.7 %            Loss Ratio:           Current year62.5 % 63.6 % 63.3 % 63.2 % (0.8) pts 0.4 ptsPrior year40.8 % 10.8 % (0.9) % (0.2) % 41.7 pts 11.0 ptsCatastrophe0.9 % 0.6 % 0.6 % 3.9 % 0.3 pts (3.3) ptsTotal Loss ratio104.2 % 75.0 % 63.1 % 66.9 % 41.1 pts 8.1 ptsCommission and brokerage ratio11.6 % 11.8 % 12.7 % 12.9 % (1.1) pts (1.1) ptsOther underwriting expenses16.6 % 16.2 % 14.7 % 14.6 % 1.9 pts 1.6 ptsCombined ratio132.4 % 103.0 % 90.5 % 94.4 % 41.8 pts 8.6 ptsAttritional combined ratio (1)90.8 % 91.7 % 90.7 % 90.7 % 0.1 pts 1.0 pts            Pre-tax net catastrophe losses (2)8 20 5 125    Pre-tax net unfavorable (favorable) prior year reserve development392 392 (7) (7)    Notes(1)Attritional ratios exclude catastrophe losses, net CAT reinstatement premiums earned, prior year development, COVID-19 losses and losses from the Russia/Ukraine war.(2)Pre-tax net catastrophe losses are net of reinsurance and reinstatement premiumsInvestments and Shareholders’ Equity as of December 31, 2023Total invested assets and cash of $37.1 billion versus $29.9 billion on December 31, 2022Shareholders’ equity of $13.2 billion vs. $8.4 billion on December 31, 2022, including $723 million of unrealized net losses on AFS fixed maturity investmentsShareholders’ equity excluding unrealized gains (losses) on AFS fixed maturity investments of $13.9 billion versus $10.1 billion on December 31, 2022Book value per share of $304.29 versus $215.54 at December 31, 2022Book value per share excluding unrealized gains (losses) on AFS fixed maturity investments of $320.95 versus $259.18 at December 31, 2022Common share dividends declared and paid in the quarter of $1.75 per share equal to $76 millionThis news release contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. Federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on behalf of the Company. These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market and investment income fluctuations, trends in insured and paid losses, catastrophes, pandemic, regulatory and legal uncertainties and other factors described in our latest Annual Report on Form 10-K. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.About EverestEverest Group, Ltd. (Everest) is a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions that address customers’ most pressing challenges. Known for a 50-year track record of disciplined underwriting, capital and risk management, Everest, through its global operating affiliates, is committed to underwriting opportunity for colleagues, customers, shareholders, and communities worldwide.Everest common stock (NYSE: EG) is a component of the S&P 500 index.Additional information about Everest, our people, and our products can be found on our website at www.everestglobal.com.A conference call discussing the results will be held at 8:00 a.m. Eastern Time on February 8, 2024. The call will be available on the Internet through the Company’s website at https://www.everestglobal.com/investor-relations.Recipients are encouraged to visit the Company’s website to view supplemental financial information on the Company’s results. The supplemental information is located at www.everestglobal.com in the "Investors/Financials/Quarterly Results" section of the website. The supplemental financial information may also be obtained by contacting the Company directly._______________________________________________The Company generally uses after-tax operating income (loss), a non-GAAP financial measure, to evaluate its performance. After-tax operating income (loss) consists of net income (loss) excluding after-tax net gains (losses) on investments and after-tax net foreign exchange income (expense) as the following reconciliation displays:(Dollars in millions, except per share amounts)Three Months Ended December 31, Twelve Months Ended December 31, 2023   2022   2023   2022                  (unaudited) (unaudited)                 Amount Per Diluted Share Amount Per Diluted Share Amount Per Diluted Share Amount Per Diluted ShareAfter-tax operating income (loss)$1,093  $25.18  $478  $12.21  $2,776  $66.39  $1,065  $27.08 After-tax net gains (losses) on investments (220)  (5.06)  49   1.25   (236)  (5.65)  (366)  (9.30)After-tax net foreign exchange income (expense) (69)  (1.60)  (31)  (0.80)  (23)  (0.55)  (102)  (2.60)                Net income (loss)$804  $18.53  $496  $12.66  $2,517  $60.19  $597  $15.19                 (Some amounts may not reconcile due to rounding.)Although net gains (losses) on investments and net foreign exchange income (expense) are an integral part of the Company’s insurance operations, the determination of net gains (losses) on investments and foreign exchange income (expense) is independent of the insurance underwriting process. The Company believes that the level of net gains (losses) on investments and net foreign exchange income (expense) for any particular period are not indicative of the performance of the underlying business in that particular period. Providing only a GAAP presentation of net income (loss) makes it more difficult for users of the financial information to evaluate the Company’s success or failure in its basic business and may lead to incorrect or misleading assumptions and conclusions. The Company understands that the equity analysts who follow the Company focus on after-tax operating income (loss) in their analyses for the reasons discussed above. The Company provides after-tax operating income (loss) to investors so that they have what management believes to be a useful supplement to GAAP information concerning the Company’s performance.--Financial Details Follow--EVEREST GROUP, LTD.CONSOLIDATED STATEMENTS OF OPERATIONSAND COMPREHENSIVE INCOME (LOSS) Three Months Ended Twelve Months Ended December 31 December 31(Dollars in millions, except per share amounts) 2023   2022   2023   2022  (unaudited) (unaudited  REVENUES:       Premiums earned$3,578  $3,012  $13,443  $11,787 Net investment income 411   210   1,434   830 Total net gains (losses) on investments (255)  64   (276)  (455)Other income (expense) (75)  (30)  (14)  (102)Total revenues 3,659   3,256   14,587   12,060         CLAIMS AND EXPENSES:       Incurred losses and loss adjustment expenses 2,254   1,811   8,427   8,100 Commission, brokerage, taxes and fees 853   651   2,952   2,528 Other underwriting expenses 226   182   846   682 Corporate expenses 18   16   73   61 Interest, fees and bond issue cost amortization expense 36   27   134   101 Total claims and expenses 3,387   2,687   12,432   11,472         INCOME (LOSS) BEFORE TAXES 272   568   2,154   588 Income tax expense (benefit) (532)  72   (363)  (9)        NET INCOME (LOSS)$804  $496  $2,517  $597         Other comprehensive income (loss), net of tax:       Unrealized appreciation (depreciation) ("URA(D)") on securities arising during the period 923   223   743   (2,037)Reclassification adjustment for realized losses (gains) included in net income (loss) 223   28   244   89 Total URA(D) on securities arising during the period 1,146   251   986   (1,948)        Foreign currency translation and other adjustments 76   86   59   (77)        Benefit plan actuarial net gain (loss) for the period 15   15   15   15 Reclassification adjustment for amortization of net (gain) loss included in net income —   —   2   2 Total benefit plan net gain (loss) for the period 16   15   17   17 Total other comprehensive income (loss), net of tax 1,238   352   1,063   (2,008)        COMPREHENSIVE INCOME (LOSS)$2,041  $848  $3,580  $(1,411)        EARNINGS PER COMMON SHARE:       Basic$18.53  $12.66  $60.19  $15.19 Diluted 18.53   12.66   60.19   15.19 EVEREST GROUP, LTD.CONSOLIDATED BALANCE SHEETS December 31,(Dollars and share amounts in millions, except par value per share) 2023   2022  (unaudited)  ASSETS:   Fixed maturities - available for sale, at fair value$27,740  $22,236 (amortized cost: 2023, $28,568; 2022, $24,191, credit allowances: 2023, $(48); 2022, $(54))   Fixed maturities - held to maturity, at amortized cost   (fair value: 2023, $854; 2022, $821, net of credit allowances: 2023, $(8); 2022, $(9)) 855   839 Equity securities, at fair value 188   281 Other invested assets 4,794   4,085 Short-term investments 2,127   1,032 Cash 1,437   1,398 Total investments and cash 37,142   29,872 Accrued investment income 324   217 Premiums receivable (net of credit allowances: 2023, $(41); 2022, $(29)) 4,768   3,619 Reinsurance paid loss recoverables (net of credit allowances: 2023, $(26); 2022, $(23)) 164   136 Reinsurance unpaid loss recoverables 2,098   2,105 Funds held by reinsureds 1,135   1,056 Deferred acquisition costs 1,247   962 Prepaid reinsurance premiums 713   610 Income tax asset, net 868   459 Other assets (net of credit allowances: 2023, $(9); 2022, $(5)) 941   930 TOTAL ASSETS$49,399  $39,966     LIABILITIES:   Reserve for losses and loss adjustment expenses 24,604   22,065 Unearned premium reserve 6,622   5,147 Funds held under reinsurance treaties 24   13 Amounts due to reinsurers 650   567 Losses in course of payment 171   74 Senior notes 2,349   2,347 Long-term notes 218   218 Borrowings from FHLB 819   519 Accrued interest on debt and borrowings 22   19 Unsettled securities payable 137   1 Other liabilities 582   555 TOTAL LIABILITIES 36,197   31,525     SHAREHOLDERS' EQUITY:   Preferred shares, par value: $0.01; 50.0 shares authorized; no shares issued and outstanding —   — Common shares, par value: $0.01; 200.0 shares authorized; (2023) 74.2 and (2022) 69.9   outstanding before treasury shares 1   1 Additional paid-in capital 3,773   2,302 Accumulated other comprehensive income (loss), net of deferred income tax expense (benefit)   of $(99) at 2023 and $(250) at 2022 (934)  (1,996)Treasury shares, at cost: 30.8 shares (2023) and 30.8 shares (2022) (3,908)  (3,908)Retained earnings 14,270   12,042 Total shareholders' equity 13,202   8,441 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$49,399  $39,966 EVEREST GROUP, LTD.CONSOLIDATED STATEMENTS OF CASH FLOWS Twelve Months Ended December 31(Dollars in millions) 2023   2022  (unaudited)CASH FLOWS FROM OPERATING ACTIVITIES:   Net income (loss)$2,517  $597 Adjustments to reconcile net income to net cash provided by operating activities:   Decrease (increase) in premiums receivable (1,064)  (435)Decrease (increase) in funds held by reinsureds, net (66)  (197)Decrease (increase) in reinsurance recoverables 143   (413)Decrease (increase) in income taxes (559)  (181)Decrease (increase) in prepaid reinsurance premiums (46)  (166)Increase (decrease) in reserve for losses and loss adjustment expenses 2,256   3,477 Increase (decrease) in unearned premiums 1,387   655 Increase (decrease) in amounts due to reinsurers 18   201 Increase (decrease) in losses in course of payment 93   (186)Change in equity adjustments in limited partnerships (168)  (94)Distribution of limited partnership income 120   180 Change in other assets and liabilities, net (339)  (297)Non-cash compensation expense 49   45 Amortization of bond premium (accrual of bond discount) (64)  55 Net (gains) losses on investments 276   455 Net cash provided by (used in) operating activities 4,553   3,695     CASH FLOWS FROM INVESTING ACTIVITIES:   Proceeds from fixed maturities matured/called/repaid - available for sale 2,310   2,626 Proceeds from fixed maturities sold - available for sale 3,849   1,403 Proceeds from fixed maturities matured/called/repaid - held to maturity 105   39 Proceeds from equity securities sold 126   2,217 Distributions from other invested assets 245   266 Cost of fixed maturities acquired - available for sale (10,653)  (7,344)Cost of fixed maturities acquired - held to maturity (112)  (153)Cost of equity securities acquired (17)  (1,003)Cost of other invested assets acquired (902)  (1,547)Net change in short-term investments (1,034)  149 Net change in unsettled securities transactions 181   (71)Net cash provided by (used in) investing activities (5,902)  (3,418)    CASH FLOWS FROM FINANCING ACTIVITIES:   Common shares issued (redeemed) during the period for share-based compensation, net of expense (23)  (17)Proceeds from public offering of common shares 1,445   — Purchase of treasury shares —   (61)Dividends paid to shareholders (288)  (255)Cost of debt repurchase —   (6)Net FHLB borrowings (repayments) 300   — Cost of shares withheld on settlements of share-based compensation awards (24)  (20)Net cash provided by (used in) financing activities 1,409   (359)    EFFECT OF EXCHANGE RATE CHANGES ON CASH (23)  39     Net increase (decrease) in cash 38   (42)Cash, beginning of period 1,398   1,441 Cash, end of period$1,437  $1,398     SUPPLEMENTAL CASH FLOW INFORMATION:   Income taxes paid (recovered)$196  $171 Interest paid 130   98     NON-CASH TRANSACTIONS:   Reclassification of specific investments from fixed maturity securities, available for sale at fair value   to fixed maturity securities, held to maturity at amortized cost net of credit allowances —   722 On December 27, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023, which will apply a 15% corporate income tax to certain Bermuda businesses in fiscal years beginning on or after January 1, 2025. The act includes a provision referred to as the economic transition adjustment, which is intended to provide a fair and equitable transition into the tax regime, and results in a deferred tax benefit for the Company. Pursuant to this legislation, the Company has estimated a $578 million net deferred tax asset as of December 31, 2023. This amount could be subject to change. Any changes will be reflected in the 4th quarter of 2023 as presented in the Company's 2023 Form 10-K filing. Net income (loss), after-tax operating income (loss), net income (loss) per diluted common share, after-tax operating income (loss) per diluted common share, net income ROE, operating income ROE, total shareholder return, book value per common share, and adjusted book value per common share excluding URAD excluding the benefit associated with the net deferred tax asset is displayed in the following reconciliation: Three Months Ended December 31, Twelve Months Ended December 31, 2023 2023   Excl. Bermuda CIT   Excl. Bermuda CIT As Reported Bermuda Tax impact As Reported Bermuda Tax impactNet income (loss)$804  $226  $578 $2,517  $1,939  $578Operating income (loss)$1,093  $515  $578 $2,776  $2,198  $578            Per common share diluted net income (loss)$18.53  $5.21  $13.31 $60.19  $46.38  $13.81Per common share diluted operating income (loss)$25.18  $11.87  $13.31 $66.39  $52.58  $13.81            Return on equity (annualized)           After-tax operating income (loss) 32.4%  15.6% 16.8 pts  23.1%  18.7% 4.4 ptsAfter-tax net gains (losses) on investments -6.5%  -6.6% 0.1 pts  -2.0%  -2.0% — ptsAfter-tax foreign exchange income (expense) -2.1%  -2.1% — pts  -0.2%  -0.2% — ptsNet income (loss) 23.8%  6.9% 16.9 pts  20.9%  16.5% 4.4 pts            Total Shareholder Return (TSR)       26.5%  21.3% 5.2 ptsBook value per common share outstanding$304.29  $290.98  $13.31 $304.29  $290.98  $13.31Adjusted book value per common share outstanding excluding ("URAD")$320.95  $307.63  $13.32 $320.95  $307.63  $13.32(Some amounts may not reconcile due to rounding.) View source version on businesswire.com: https://www.businesswire.com/news/home/20240207462919/en/ContactsMedia: Dawn LauerChief Communications Officer908.300.7670Investors: Matt RohrmannHead of Investor Relations908.604.7343

Business Wire

Everest Reports Fourth Quarter and Full-Year 2023 Results

https://finance.yahoo.com/news/everest-reports-fourth-quarter-full-211500297.html

3ffec3de-f579-3ecf-a4cf-606ab2df3ffd

EG

Jill Beggs, Head of North America Treaty Reinsurance, Appointed to Reinsurance Division Chief Operating OfficerJiten Voralia, Head of Treaty Casualty & Surety, Named Reinsurance Head of North America TreatyHAMILTON, Bermuda, February 22, 2024--(BUSINESS WIRE)--Everest Group, Ltd. (NYSE: EG), a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions has announced the promotion of two key leaders in the Reinsurance Division, both effective immediately.Jill Beggs has been promoted to Reinsurance EVP and Chief Operating Officer of the Division. In this role, Ms. Beggs will manage the profitable growth of the division’s worldwide portfolio, including Global Treaty, Facultative, and Specialty reinsurance businesses as well as Mt. Logan. She will continue to report to Jim Williamson, Everest Group COO and Head of Reinsurance."Jill is a consummate leader whose deep experience and collaborative approach have consistently raised the bar for both the reinsurance market and Everest’s business," said Jim Williamson. "Along with our outstanding leadership team, I look forward to working with Jill in her expanded role as we further strengthen our preferred lead market position and continue to deliver on our strategic objectives."Everest also announced that Jiten Voralia has been promoted to Head of North America Treaty Reinsurance, where he will lead the division’s treaty reinsurance business across the United States, Bermuda and Canada, reporting to Ms. Beggs. Mr. Voralia will continue leading the division’s North America Treaty Casualty business until a successor is named."Jill and Jiten embody the collaborative, high-performing culture that distinguishes Everest in the market and makes us home to the industry’s best talent," said Juan C. Andrade, Everest President and CEO. "Their well-deserved promotions are a testament to the strength of Everest’s leadership team and success of our reinsurance business, which continues to deliver vital protection and exceptional value to our stakeholders."Story continuesSince rejoining Everest in 2021 where she spent the first decade of her underwriting career, Ms. Beggs most recently served as Head of North America Treaty and Global Specialty Reinsurance, where she drove the portfolio’s profitable expansion and key global growth initiatives. Ms. Beggs joined Everest from Munich Re where she spent more than two decades leading U.S. treaty and facultative programs across multiple lines of business, while spearheading various firm-wide innovation initiatives. Ms. Beggs is the recipient of numerous industry honors and awards, most recently named to the Business Insurance 2023 "Women to Watch" list.Mr. Voralia joined Everest in 2022 as Reinsurance Head of Treaty Casualty & Surety, bringing more than two decades of diverse reinsurance experience to his role. Prior to Everest, Mr. Voralia served in various domestic and global leadership roles at Swiss Re, most recently as Head of U.S. Globals Casualty Treaty Underwriting.About EverestEverest Group, Ltd. (Everest) is a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions that address customers’ most pressing challenges. Known for a 50-year track record of disciplined underwriting, capital and risk management, Everest, through its global operating affiliates, is committed to underwriting opportunity for colleagues, customers, shareholders, and communities worldwide.Everest common stock (NYSE: EG) is a component of the S&P 500 index.Additional information about Everest, our people, and our products can be found on our website at www.everestglobal.com.View source version on businesswire.com: https://www.businesswire.com/news/home/20240222030865/en/ContactsMedia: Dawn LauerChief Communications Officer908.300.7670Investors: Matt RohrmannHead of Investor Relations908.300.7670

Business Wire

Everest Announces Leadership Promotions in Reinsurance Division

https://finance.yahoo.com/news/everest-announces-leadership-promotions-reinsurance-131500970.html

abe8d329-dd74-362f-815f-fbb491cd995f

EG

HAMILTON, Bermuda, February 29, 2024--(BUSINESS WIRE)--Everest Group, Ltd. announced that its Board of Directors declared a dividend of $1.75 per common share payable on or before March 27, 2024 to all shareholders of record as of March 19, 2024.About EverestEverest Group, Ltd. (Everest) is a global underwriting leader providing best-in-class property, casualty, and specialty reinsurance and insurance solutions that address customers’ most pressing challenges. Known for a 50-year track record of disciplined underwriting, capital and risk management, Everest, through its global operating affiliates, is committed to underwriting opportunity for colleagues, customers, shareholders, and communities worldwide.Everest common stock (NYSE: EG) is a component of the S&P 500 index.Additional information about Everest, our people, and our products can be found on our website at www.everestglobal.com.View source version on businesswire.com: https://www.businesswire.com/news/home/20240229953920/en/ContactsMedia: Dawn LauerChief Communications Officer908.300.7670Investors: Matt RohrmannHead of Investor Relations908.604.7343

Business Wire

Everest Group Announces Dividend

https://finance.yahoo.com/news/everest-group-announces-dividend-213000808.html

dc63bd95-1020-3d19-8dd6-2079f5ff1ab3

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Edward Aguilar runs through the flames from the Thomas fire to save his cats at his mobile home in Casita Springs in Ventura County in 2017. (Wally Skalij / Los Angeles Times)Southern California Edison has agreed to pay $80 million to cover costs and damages from the 2017 Thomas fire, a massive blaze in Ventura and Santa Barbara counties that killed two people and later triggered a massive mudflow that resulted in 23 deaths.The Thomas fire, which scorched more than 280,000 acres and destroyed more than 1,000 structures, ignited on Dec. 4, 2017, after high winds caused two Southern California Edison power lines to slap together, fire officials found.Combined with another blaze sparked by the company's equipment, it became the eighth-largest wildfire in state history, according to the California Department of Forestry and Fire Protection.The utility agreed, in a settlement finalized Friday afternoon, to pay the federal government to resolve claims on behalf of the U.S. Forest Service, the Justice Department announced Monday. Edison did so without admitting wrongdoing or fault.In a news release, the Justice Department called it "the largest wildfire cost recovery settlement by the United States in the Central District of California."“This record settlement provides significant compensation to taxpayers for the extensive costs of fighting the Thomas fire and for the widespread damage to public lands," First Assistant U.S. Atty. Joseph T. McNally said.Gabriela Ornelas, a spokesperson with Edison, called the settlement "a reasonable resolution.""We continue to protect our communities from the risk of wildfire with grid hardening, situational awareness and enhanced operational practices," she said.The Thomas fire began in two locations on that December evening, according to fire officials. The first ignition point was in Anlauf Canyon and the second was at the top of Koenigstein Road in Ventura County. The two fires joined together and formed the Thomas fire.In 2020, the federal government filed a lawsuit on behalf of the Forest Service against Edison to recover costs from fighting the fire and for the extensive damage it caused to Los Padres National Forest, the U.S. attorney’s office said in its news release.Story continuesThe Justice Department alleged that Edison owned, maintained and operated the power lines that caused both ignitions. In Anlauf Canyon, the government alleged that Edison power lines made contact with one another and ignited dry vegetation below. On Koenigstein Road, the federal litigation alleged that an Edison power pole transformer failed and caused an energized power line to fall to the ground, also igniting dry vegetation.Edison previously acknowledged that its equipment probably started a fire off Koenigstein Road in Santa Paula, but its own investigators concluded that the company was probably not responsible for the second, larger blaze that began in Anlauf Canyon.Read more: Southern California Edison power lines sparked deadly Thomas fire, investigators findThe utility agreed to pay the $80-million settlement within 60 days of the effective date of the agreement, according to the U.S. attorney’s office.Utility-sparked wildfires in recent years have devastated vast swaths of the state, killing people and destroying small towns in their wake.The Camp fire of 2018, which investigators said was caused by a failed Pacific Gas & Electric transmission line in the Sierra Nevada foothills, became the deadliest wildfire in California history, destroying the town of Paradise and killing 85 people.Edison has paid out millions in recent years tied to wildfires. In 2021, the utility agreed to pay $550 million in fines to the California Public Utilities Commission safety and enforcement division for its role in five wildfires.The agreement included fines and penalties relating to the Thomas, Woolsey, Rye, Meyers and Liberty fires, which collectively burned more than 380,000 acres and destroyed thousands of homes.Investigators with the commission's Safety and Enforcement Division determined that Southern California Edison violated state safety regulations, which led to the ignition of the blazes, they said.Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week. This story originally appeared in Los Angeles Times.

LA Times

Southern California Edison to pay $80 million over deadly 2017 Thomas fire

https://finance.yahoo.com/news/southern-california-edison-pay-80-224408942.html

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LOS ANGELES (AP) — Southern California Edison will pay $80 million to settle claims on behalf of the U.S. Forest Service connected to a massive wildfire that destroyed more than a thousand homes and other structures in 2017, federal prosecutors said Monday.The utility agreed to the settlement on Friday without admitting wrongdoing or fault in connection with the Thomas fire, the U.S. Attorney's Office said in a statement.Investigations found utility equipment sparked the fire in two canyon locations on Dec. 4, 2017. The Thomas fire, which burned across 439 square miles (1,137 square kilometers) in Ventura and Santa Barbara counties, is the seventh largest blaze in California history, according to state fire officials.The settlement is a “reasonable resolution,” said Gabriela Ornelas, a spokesperson for Southern California Edison.“We continue to protect our communities from the risk of wildfire with grid hardening, situational awareness and enhanced operational practices,” Ornelas said Monday.Federal prosecutors sued the utility in 2020 to recover costs incurred fighting the fire and for the extensive damage caused on public lands within the Los Padres National Forest. The lawsuit alleged Edison power lines and a transformer ignited dry brush during powerful winds.The agreement “provides significant compensation to taxpayers,” Assistant U.S. Attorney Joseph T. McNally said in a statement.It's the latest settlement by Edison over the Thomas fire. The utility has also settled claims related to the enormous Woolsey fire in 2018. Edison estimated in 2021 that total expected losses for both blazes would exceed $4.5 billion.California has seen increasingly destructive wildfires in recent years, made worse by climate change and drought. Utility equipment has been blamed for sparking some the state’s worst fires.In 2022, former executives and directors of Pacific Gas & Electric agreed to pay $117 million to settle a lawsuit over devastating Northern California wildfires sparked by that utility’s equipment in 2017 and 2018.

Associated Press Finance

California utility will pay $80M to settle claims its equipment sparked devastating 2017 wildfire

https://finance.yahoo.com/news/california-utility-pay-80m-settle-220426054.html

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ROSEMEAD, Calif., March 07, 2024--(BUSINESS WIRE)--Applications for scholarships up to $25,000 are now being accepted for the 2024 Edison International Lineworker Scholarship Program. Funded by Edison International shareholders and IBEW Local 47, this scholarship is focused on growing Black, Asian Pacific Islander, Native American and female representation in Southern California Edison’s skilled workforce."Lineworkers are among the front lines of our workforce that is safely delivering reliable power to the 15 million residents in Southern California Edison’s service area and making the clean energy transition possible," said Heather Rivard, SCE’s senior vice president of Transmission and Distribution. "The Lineworker Scholarship Program opens the door to a rewarding and enriching career."Launched in 2021, the program has awarded over 35 scholarships and has enhanced representation among the SCE skilled trade workforce. SCE serves one of the country’s most diverse populations and strives to have a workforce that reflects the communities it serves."To anyone interested in line work, just go for it," said 2021 scholarship recipient Donald Boyd. "You’re going to inspire many people to join this skilled trade with purpose and meaning. Being a lineworker means working safely to keep the community’s lights on. I look forward to advancing in my career and teaching the next generation of lineworkers how to do this job safely."Graduates are eligible for entry-level, skilled trade positions at SCE once they complete the Powerline Mechanic Certificate program at Los Angeles Trade-Technical College, obtain a Class A driver’s license and complete SCE pre-employment requirements. Jobs will be located within SCE’s 50,000-square-mile service area, which may require graduates to relocate for their positions. The Lineworker Scholarship covers the cost of tuition, tools and support services, such as housing, transportation and childcare, needed to complete the requirements, up to $25,000 per recipient.Story continuesEligibility requirements include:Self-identifying as Black, Asian Pacific Islander, Native American or femaleEnrolling at Los Angeles Trade-Technical College for fall 2024Enrolling in the Powerline Mechanic Certificate ProgramHaving a high school diploma or GED equivalentBeing eligible to work in the U.S.Possessing a valid driver’s license and being eligible to obtain a Class A license (must be 18 years of age)Military veterans are highly encouraged to apply.The deadline to apply for the program is May 10 at 11:59 p.m. PDT. To apply or get additional information, please visit edison.com/lineworkerscholarship.About Edison InternationalEdison International (NYSE: EIX) is one of the nation’s largest electric utility holding companies, providing clean and reliable energy and energy services through its independent companies. Headquartered in Rosemead, California, Edison International is the parent company of Southern California Edison Company, a utility that delivers electricity to 15 million people across Southern, Central and Coastal California. Edison International is also the parent company of Edison Energy LLC, a global energy advisory firm providing integrated sustainability and energy solutions to commercial, industrial and institutional customers.View source version on businesswire.com: https://www.businesswire.com/news/home/20240306815090/en/ContactsMedia Contact: Media Relations, (626) [email protected]

Business Wire

Want an Exciting Career? Edison International Accepting Applications for Lineworker Scholarship Program Designed to Strengthen a Diverse Workforce

https://finance.yahoo.com/news/want-exciting-career-edison-international-213000928.html

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California utility regulators are urging the Federal Energy Regulatory Commission to reject Southern California Edison’s request for “construction work in progress,” or CWIP, status for two transmission projects that total about $1.6 billion.“The CWIP incentive has shown to be harmful to California ratepayers, providing premature and excessive rate recovery,” the California Public Utilities Commission said in a Friday filing at FERC.FERC’s CWIP incentive allows transmission owners to recover the costs of their projects as they are being built. Normally, utilities must wait for their projects to be brought into service and then recover their expenses in a subsequent rate case, a process that can lead to a years-long gap between expenditures and cost recovery. In part, CWIP allows for smaller rate hikes over time as a project is built instead of a single rate shock for consumers.However, it can also drive up customer rates when projects take longer than expected to be built and costs increase beyond original forecasts, according to the PUC.In those cases, “the incentives end up being much costlier to customers, resulting in customers effectively serving as lenders to the utility, with the benefit being one-sided toward the company,” the PUC said, citing concerns raised by FERC Commissioner Mark Christie.SCE’s current CWIP rate base totals $343 million for 11 projects, according to the PUC. “Granting CWIP here would just add to customers’ burden without being necessary for the projects to be built,” the PUC said.SCE has a pattern of “long delays and cost overruns” related to CWIP projects, according to the PUC. “These delays and cost overruns magnify the harm to ratepayers,” the PUC said. “At the same time, CWIP in rate base removes SCE’s incentive to complete the projects on time.”If FERC decides to let SCE recover the projects’ costs through CWIP, the eligibility should be capped at their estimated cost and the incentive should end when their expected in-service dates pass, the PUC said.Story continuesThe issue centers on the $1.1 billion Del Amo-Mesa-Serrano project in the Los Angeles basin and the $482 million Lugo-Victor-Kramer project in San Bernardino County, according to SCE’s request for transmission incentives at FERC.The projects’ estimated costs could increase depending on land acquisition needs and licensing requirements, SCE said. They were approved in May by the California Independent System Operator in its most recent transmission plan and are needed to meet California’s renewable energy goals, according to SCE. CAISO expects the Lugo-Victor-Kramer project will be online by 2032 and the Del Amo-Mesa-Serrano project will be operating a year later.The projects pose “substantial permitting and construction challenges and risks” that would be addressed by the CWIP incentive, plus a requested incentive that would allow SCE to recover its spending if the projects are abandoned before they come into service, the Edison International utility said. The PUC doesn’t oppose the abandonment incentive.The projects meet FERC’s criteria for transmission incentives, including for CWIP, according to SCE.“Recovery in transmission rate base of CWIP expenditures during construction of the facilities will improve cash flow and the rate impact of the transmission projects will follow a smoother trajectory during a time when SCE is financing significant wildfire mitigation-related capital expenditures and substantial infrastructure replacement activities needed to support system reliability,” SCE said.Meanwhile, FERC is considering ending its CWIP incentive under a pending transmission planning and cost allocation proposal that could be issued as soon as this spring.This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter.

Utility Dive

California PUC urges FERC to reject SCE’s early cost recovery request for $1.6B in projects

https://finance.yahoo.com/news/california-puc-urges-ferc-reject-060532261.html

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EL

Recruiter Staffline, pub group Mitchells & Butlers and airline easyJet have been named as some of the major British companies that did not pay some staff the minimum wage.The Government released a list of 524 businesses that failed to pay employees the national minimum wage, or the national living wage, which is what the Government calls the minimum wage for people aged over 21.Around 172,000 workers were left out of pocket as a result, the Department for Business and Trade said.“Employees deserve to get paid properly for the hard work they put in,” said Kevin Hollinrake, minister for enterprise, markets and small business.“While the majority of businesses already do the right thing and pay their staff what they are owed, today’s announcement sends a message to the minority who aren’t – that there are repercussions to undercutting hard work from their staff.”Staffline failed to pay 36,767 workers correctly, owing them a total of around £5.13 million before making it right, the department said.The firm told shareholders in 2019 that it was facing a financial hit after realising it had underpaid staff, as it had not included the time workers on food production lines spent changing in and out of work clothes.“Staffline would like to clarify that these are historic breaches and related to the period 2013 to 2018,” the company said.“Remedial actions were taken in 2019 and formally concluded with HMRC to their complete satisfaction in 2020.”Fast food chain Greggs failed to pay 4,793 employees an average of £45.72 they were due, also because of uniforms.The company said: “During a review with HMRC (HM Revenue & Customs), it was brought to our attention that our uniform policy for retail colleagues was not aligned with HMRC’s interpretation of national minimum wage regulations, and as a result, we revised our uniform policy in January 2018.Story continues“Once the review was concluded, we reimbursed colleagues and former colleagues who had been impacted by this unintended error.”The department said all the companies on the list have paid what they owe to staff and been hit with financial penalties up to 200% of the amount they underpaid.The investigations that led to the list were performed by HMRC between 2015 and 2023.EasyJet said it was on the list – underpaying 3,898 staff at an average of £86.94 each – because some cabin crew were paid less than allowed for their first three weeks when they were training between 2014 and 2019.“This was a genuine error which we immediately rectified and issued back payments to all affected crew,” the airline said.Mitchells & Butlers underpaid 16,187 staff an average of £34.91 each, gambling company Rank underpaid 5,629 staff an average of £170.99, and beauty company Estee Lauder underpaid 5,933 staff an average of £150.85.Mitchells & Butlers said: “As the minister notes, not all underpayments are intentional and this was the case here.”It blamed a “technical misinterpretation of the regulations” which was identified in 2019. M&B added: “All arrears due were paid to our valued employees and ex-employees at the end of the review and we have updated our policies where necessary.”Estee Lauder said it had “never intentionally paid our valued colleagues less than the minimum wage”.The firm added: “In 2019, like many other companies, we were made aware that we had misinterpreted guidance from HM Revenue & Customs on the way in which payment was taken for voluntary staff purchases of our concession products and on staff clothing requirements.“We immediately made sure all affected employees were informed and reimbursed and updated our procedures.”

PA Media: Money

Staffline and easyJet among 500 companies criticised for minimum wage breaches

https://finance.yahoo.com/news/staffline-easyjet-among-500-companies-161714875.html

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Polen Capital, an investment management company, released its “Polen Global Growth Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund increased 11.66% gross and 11.36% net, respectively, compared to an 11.03% increase for the MSCI ACW Index. For the full year, the fund returned 32.38% and 30.92%, gross and net of fees, respectively compared to 22.20% for the index. The Portfolio has, net of fees, outperformed by 33bps during the quarter and by 872bps for the full year. In addition, please check the fund’s top five holdings to know its best picks in 2023.Polen Global Growth Strategy featured stocks like The Estée Lauder Companies Inc. (NYSE:EL) in its Q4 2023 investor letter. Headquartered in New York, New York, The Estée Lauder Companies Inc. (NYSE:EL) is a skincare, makeup, fragrance, and hair care products manufacturer. On February 23, 2024, The Estée Lauder Companies Inc. (NYSE:EL) stock closed at $149.99 per share. One-month return of The Estée Lauder Companies Inc. (NYSE:EL) was 10.69%, and its shares lost 38.06% of their value over the last 52 weeks. The Estée Lauder Companies Inc. (NYSE:EL) has a market capitalization of $53.767 billion.Polen Global Growth Strategy stated the following regarding The Estée Lauder Companies Inc. (NYSE:EL) in its fourth quarter 2023 investor letter:"We exited our position in The Estée Lauder Companies Inc. (NYSE:EL), the global leader in luxury cosmetics. The company has faced a series of challenges in the past year, which have significantly impacted the company's profitability. These range from a COVID lockdown in Shanghai, where their only Chinese distribution center was located; to travel retail partners placing large orders expecting a rebound in China that hasn't materialized; to headwinds in North American makeup from brick-and-mortar closures; to being caught off guard by derma cosmetics, an area where L’Oréal is thriving. While some of these headwinds will abate, we do not expect a swift rebound, and the most recent earnings call illustrates that things are not turning around as we expected. We held a very small position in Estée Lauder – under 1%. Without the conviction to add after the recent decline and given little to no evidence that the company will be improving soon, we have better places to put our capital to work."Story continuesA photograph of a customer testing out different products in the skincare aisle at a store.The Estée Lauder Companies Inc. (NYSE:EL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, The Estée Lauder Companies Inc. (NYSE:EL) was held by 43 hedge fund portfolios, down from 45 in the previous quarter, according to our database.We discussed The Estée Lauder Companies Inc. (NYSE:EL) in another article and shared the list of most valuable luxury companies in the world. 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 Most Trustworthy Cities in the US20 Daily Wealth-Building Habits Rich People Swear By30 Best Board Games for FamiliesDisclosure: None. This article is originally published at Insider Monkey.

Insider Monkey

Here’s Why Polen Global Growth Strategy Exited The Estée Lauder Companies (EL)

https://finance.yahoo.com/news/why-polen-global-growth-strategy-102036514.html

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(Bloomberg) -- Hand sanitizers were tainted by benzene. Sunscreens and dry shampoos too. Now acne treatments are joining the list of widely used consumer products found to contain high levels of the chemical linked to cancer.Most Read from BloombergChemical Linked to Cancer Found in Acne Creams Including Proactiv, ClearasilHow Trump’s Ex-Treasury Chief Landed 2024's Highest-Profile US Bank DealNikki Haley Ends 2024 Bid, Setting Up Trump-Biden RematchNew York to Deploy National Guard to NYC Subways to Fight CrimeNYCB Raises More Than $1 Billion in Equity Led by Steven Mnuchin’s FirmAcne products from brands including Proactiv, Target Corp.’s Up & Up and Clinique have elevated levels of the carcinogen, an independent testing laboratory said in a petition filed with the US Food and Drug Administration late Tuesday. The lab asked the FDA to recall the affected treatments — all of which contain the active ingredient benzoyl peroxide — while regulators investigate.Benzene is a natural component of gasoline and tobacco smoke and can cause leukemia in high amounts, according to the US Centers for Disease Control and Prevention. Over the past three years it’s been detected in several popular products, heightening consumers’ awareness of the potential threats in their bathroom cabinets and raising questions about the FDA’s oversight of the industry. Companies including Johnson & Johnson, Unilever Plc and Procter & Gamble Co. have recalled products.New Haven, Connecticut-based Valisure LLC, the testing laboratory that filed Tuesday’s petition and uncovered the previous risks, has positioned itself as a gatekeeper for consumers. Valisure gained prominence conducting product research and has deals with large health-care systems, including Kaiser Permanente and the US Department of Defense, to test drugs used by their members and weed out substandard treatments.The FDA said the agency would work to verify whether Valisure’s data is accurate before acting on the lab’s petition. “The agency will continue to provide updates to the public regarding benzene in drug products, as appropriate,” Jeremy Kahn, a spokesperson for the FDA said in a statement. Companies are required to ensure the safety of their products, he said.Story continuesRead More: A Tiny Lab Finds Danger on Drugstore Shelves While the FDA Lags BehindFor its acne research, Valisure tested 66 benzoyl peroxide products, including creams, lotions, gels and washes available either over the counter from major retailers or via prescription. While FDA guidelines allow up to 2 parts per million of benzene, Valisure found up to nine times that amount in some treatments. Those levels jumped significantly when the products were tested at higher temperatures designed to replicate how they might break down over time, for example if stored in a medicine cabinet in a steamy bathroom.Proactiv’s 2.5% benzoyl peroxide cream, manufactured by Taro Pharmaceutical Industries Ltd., contained as much as 1,761 parts per million of benzene during Valisure’s stability testing, while a similar cream from Target reached 1,598 parts per million and a treatment from Estee Lauder Cos.’s Clinique hit 401 parts per million. A 10% benzoyl peroxide cream from Reckitt Benckiser Group Plc’s Clearasil initially tested just at the FDA limit, but jumped to 308 parts per million of benzene after being exposed to high temperatures for more than two weeks. “Reckitt is confident that all Clearasil products, when used and stored as directed on their labels, are safe,” the company said in a statement. The safety and quality of products are its top priority, Reckitt said. It didn’t answer questions about whether it had tested its acne cream for benzene. Walgreens Boots Alliance Inc. said it’s reviewing Valisure’s petition. “We work with our suppliers to follow FDA regulations and guidelines for Walgreens branded products,” the company said in a statement.Representatives for Taro Pharmaceuticals and Estee Lauder didn’t respond to requests for comment. Target declined to comment. Reckitt fell 2% and Unilever dipped 0.4% in London, while Estee Lauder slid 1.3% and Taro tumbled 2.4% at the close in New York.Acne is the most common skin condition in the US, and affects as many as 50 million people each year, according to the American Academy of Dermatology. The numbers are even higher among teenagers and young adults: about 85% of those aged 12 to 24 have some form of the condition.Sales of over-the-counter US acne treatments totaled $1 billion last year, almost double the $593 million in sales in 2019, data from Chicago-based market research firm Circana showed. The AAD guidelines name benzoyl peroxide as one of its top recommendations for treating acne topically.Valisure President David Light said the contamination happens because benzoyl peroxide can break down and form benzene.“This has been well known for a long time,” he said in an interview. “All that was needed was for someone to check on it.”Light is listed as an inventor on a patent filed last year for a method to prevent benzoyl peroxide from breaking down into benzene in drug products. The lab tested other kinds of acne products with different ingredients, mainly salicylic acid, and did not find elevated benzene levels in those.Valisure’s most high-profile investigation was into heartburn drug Zantac, which the FDA pulled from the market along with generic versions in 2020, months after the lab discovered the drug’s active ingredient — ranitidine — could form a probable carcinogen called NDMA.The FDA has questioned Valisure’s testing methods in the past. Specifically, the agency has said the independent lab should follow the same process that drug manufacturers use, which tends to be costlier than the way that Valisure tests.Valisure stands behind its testing methods and points to its certification from the International Organization for Standardization, which sets testing guidelines for all kinds of products including drugs. In a statement Wednesday, Valisure said the results from its research on acne treatments were most similar to its investigation into those ranitidine products.“The benzene we found in sunscreens and other consumer products were impurities that came from contaminated ingredients; however, the benzene in benzoyl peroxide products is coming from the benzoyl peroxide itself,” Light said in the statement.In 2022, following Valisure’s previous benzene findings, the FDA warned companies that they should assess the risk of the chemical forming in their own products. The agency doesn’t regularly test products it oversees. "The discovery made by Valisure regarding benzoyl peroxide acne treatment products is deeply troubling and gives renewed importance to the need to empower the FDA to immediately act once we are made aware of the dangers of prescription or over-the-counter drugs," US Representative Rosa DeLauro, a Connecticut Democrat, said in a statement. "Benzoyl peroxide products saturate the current market and millions of consumers are unknowingly using a product that increases their exposure to life-threatening carcinogens."DeLauro has attempted to push legislation that would give the FDA the authority to recall drugs rather than negotiate with companies to do so on a voluntary basis.Valisure’s testing also examined benzene in the air surrounding acne treatments and found that even an unopened Proactiv product leaked high levels when kept at 104 degrees Fahrenheit, the temperature of a hot shower, for almost 17 hours. The Environmental Protection Agency has said inhaling benzene at levels of 0.4 parts per billion chronically over a lifetime could result in one additional cancer per 100,000 people, a measure of risk the FDA also uses.(Updates with FDA comment in fifth paragraph. An earlier version of this story corrected benzene levels in the fifth paragraph.)Most Read from Bloomberg BusinessweekHow Apple Sank About $1 Billion a Year Into a Car It Never BuiltThe Battle to Unseat the Aeron, the World’s Most Coveted Office ChairHumanoid Robots at Amazon Provide Glimpse of an Automated WorkplaceImmigration Rage Drowns Out the US Labor Market’s Need for WorkersElon Musk Is Right About OpenAI But for the Wrong Reasons©2024 Bloomberg L.P.

Bloomberg

Chemical Linked to Cancer Found in Acne Creams Including Proactiv, Clearasil

https://finance.yahoo.com/news/chemical-linked-cancer-found-acne-143825624.html

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It has been about a month since the last earnings report for Coty (COTY). Shares have added about 6.7% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Coty due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.COTY Q2 Earnings & Revenues Top Estimates on Solid Beauty MarketCoty posted strong second-quarter fiscal 2024 results, as the top and bottom lines increased year over year and cruised past the Zacks Consensus Estimate. Revenues grew across all categories and regions.Quarter in DetailCoty delivered adjusted EPS of 25 cents, beating the Zacks Consensus Estimate of 20 cents a share. The bottom line increased from 22 cents reported in the year-ago quarter.Coty’s net revenues came in at $1,727.6 million, up 13% year over year. The metric surpassed the Zacks Consensus Estimate of $1,671 million. Revenues included a 3% favorable impact of currency movements. Like-for-like (LFL) revenues jumped 11% on growth in the Prestige and Consumer Beauty business segments. We had expected LFL revenues to increase by 7.4%. IThe adjusted gross margin came in at 65.1%, contracting 40 basis points (bps) year over year. The gross margin decline resulted from increased excess & obsolescence, inflation and tough comparison with some benefits realized in the year-ago period. This was partly compensated by supply-chain productivity savings and pricing. Adjusted operating income came in at $309.3 million, up 18% from $261.4 million in the prior-year quarter. The adjusted operating margin stood at 17.9%, up 70 bps. The adjusted EBITDA in the quarter amounted to $366.4 million, up 15%, due to increased sales and gross profit. The adjusted EBITDA margin stood at 21.2%, up 40 bps.Segment ResultsPrestige: Net revenues in the segment rose 17% to $1,122.6 million. The segment’s revenues were up 15% on an LFL basis, driven by continued strength in prestige beauty demand, which fueled double-digit growth across all regions. The company witnessed robust growth in Travel Retail.Consumer Beauty: Net revenues rose 7% year over year to $605 million. The segment’s LFL sales jumped 5%, with robust growth in color cosmetics, mass fragrance and mass skincare. The company saw solid LFL growth across the EMEA, the Americas, Europe, Brazil, the Middle East and Latin America.Story continuesRegion-Wise ResultsNet revenues in the Americas increased 10% to $687.9 million. LFL revenues were up 11%, driven by growth in the Prestige and Consumer Beauty segments. Our model suggested revenue growth of 6% for the second quarter. Sales in the EMEA grew 16% year over year to $825.7 million, while the figure increased 10% on an LFL basis. The unit’s performance gained from impressive growth across the Prestige and Consumer Beauty segments. Sales in the Asia-Pacific region rose 15% (up 16% at LFL) year over year to $214 million. Growth was backed by strong Prestige revenues. We had expected revenues to increase 16% in the Asia Pacific region.Other UpdatesThe company ended the quarter with cash and cash equivalents of $450 million and net long-term debt of $3,682.9 million. For the six months ended Dec 31, 2023, cash provided by operating activities amounted to $608.1 million.On Nov 13, 2023, management raised its share buyback plan by another $600 million, taking its total authorization to nearly $1 billion. On Feb 6, 2024, Coty unveiled that it entered a long-term license with Marni, which is a popular Italian luxury fashion brand.  This marks another step in the company’s focus on its six-pillar strategy. Apart from this, COTY is targeting the divestiture of its stake in Wella by the end of CY25.OutlookManagement continues to expect LFL revenue growth of 9-11%. For the second half of fiscal 2024, Coty anticipates LFL revenue growth of 6-8%. Revenues in the second half of fiscal 2024 are likely to include a 1-2% adverse impact of currency rates, along with a roughly 2% scope downside from the sale of the Lacoste license. For fiscal 2024, Coty expects adjusted EBITDA margin expansion of 10-30 bps. The company projects fiscal 2024 adjusted EBITDA in the range of $1,080-$1,090 million. Management anticipates modest gross margin growth in fiscal 2024, including robust gross margin expansion in the second half. Management still envisions fiscal 2024 adjusted EPS, excluding equity swap, in the band of 44-47 cents, indicating growth of 16-25% year over year.How Have Estimates Been Moving Since Then?It turns out, fresh estimates flatlined during the past month.VGM ScoresCurrently, Coty has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookCoty has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerCoty is part of the Zacks Cosmetics industry. Over the past month, Estee Lauder (EL), a stock from the same industry, has gained 5.3%. The company reported its results for the quarter ended December 2023 more than a month ago.Estee Lauder reported revenues of $4.28 billion in the last reported quarter, representing a year-over-year change of -7.4%. EPS of $0.88 for the same period compares with $1.54 a year ago.For the current quarter, Estee Lauder is expected to post earnings of $0.51 per share, indicating a change of +8.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Estee Lauder. Also, the stock has a VGM Score of D.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 reportCoty (COTY) : Free Stock Analysis ReportThe Estee Lauder Companies Inc. (EL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Is Coty (COTY) Up 6.7% Since Last Earnings Report?

https://finance.yahoo.com/news/why-coty-coty-6-7-163052882.html

e52a9470-b036-34e8-b1d9-aacbb7c276a8

ELV

Strengths: Elevance Health Inc's robust market presence and diversified healthcare services portfolio.Weaknesses: Operational challenges in the face of evolving technology and regulatory landscapes.Opportunities: Expansion potential through strategic acquisitions and healthcare innovation.Threats: Intense competition and vulnerability to public health crises and cybersecurity risks.Warning! GuruFocus has detected 9 Warning Signs with DUK.On February 21, 2024, Elevance Health Inc (NYSE:ELV), a leading health insurer in the United States, filed its annual 10-K report, revealing a comprehensive overview of its financial health and strategic positioning. With a commanding market value of approximately $104.63 billion as of June 30, 2023, and serving around 47 million medical members, Elevance Health Inc stands as a formidable entity in the healthcare insurance industry. The company's financial statements reflect its substantial scale and operational efficiency, with a diverse range of services under its Anthem Blue Cross/Blue Cross and Blue Shield, Wellpoint, and Carelon brands. As we delve into the SWOT analysis, we will explore the strengths, weaknesses, opportunities, and threats that shape Elevance Health Inc's current and future landscape.Decoding Elevance Health Inc (ELV): A Strategic SWOT InsightStrengthsBrand Power and Market Presence: Elevance Health Inc's commanding presence as one of the largest health insurers in the U.S. is a testament to its strong brand equity and extensive market reach. With approximately 47 million medical members and a broad spectrum of network-based managed care plans, the company has cemented its position as a trusted health partner. Its affiliation with the Blue Cross and Blue Shield Association and its operation as the licensee in 14 states further amplify its brand power, providing a competitive edge in the marketplace. The company's strategic branding, including the Anthem Blue Cross/Blue Cross and Blue Shield, Wellpoint, and Carelon brands, reflects its evolution from a traditional health insurance company to a comprehensive health partner, enhancing its appeal to consumers and stakeholders alike.Story continuesDiversified Service Portfolio: Elevance Health Inc's diversified portfolio, which spans across health benefits, pharmacy services, and other healthcare-related services, is a critical strength. This diversification allows the company to offer a comprehensive suite of services, including specialty products like dental, vision, and supplemental health insurance. The integration of services under the Carelon brand, which brings together healthcare-related services and capabilities, showcases the company's commitment to providing an integrated whole-health approach. This strategic diversification not only mitigates risks associated with market fluctuations but also positions the company to capitalize on cross-selling opportunities and enhances its ability to meet the evolving needs of its members.WeaknessesTechnological and Operational Challenges: Despite its size and market dominance, Elevance Health Inc faces significant challenges in maintaining and upgrading its information systems. The company's reliance on complex technology and third-party services introduces risks related to system failures, cyber-attacks, and data integrity issues. The 10-K filing highlights concerns about the adequacy of the company's disaster recovery strategies and the potential for disruptions in service delivery. These technological vulnerabilities could lead to competitive disadvantages, regulatory penalties, and damage to the company's reputation if not addressed effectively.Dependence on Independent Agents and Brokers: Elevance Health Inc's reliance on independent agents and brokers for the marketing of its healthcare products, particularly in individual, senior, and certain group customer segments, presents a weakness. The intense competition for the services of these agents and brokers, who may also market the products of competitors, poses a risk to the company's market share and revenue growth. Changes in business practices, such as legislative adjustments that could impact commissions and consulting fees, may further strain these relationships and adversely affect the company's ability to compete effectively in the marketplace.OpportunitiesGrowth Through Acquisitions and Innovation: Elevance Health Inc's history of growth through strategic acquisitions, joint ventures, and investments presents significant opportunities for expansion. The company's ability to identify and integrate new businesses, as well as to develop innovative healthcare solutions, positions it to capture additional market share and diversify its revenue streams. The pursuit of opportunities that align with its strategic objectives, such as expanding its healthcare, pharmacy services, and other diversified products and services, could drive profitable growth and strengthen its market position.Adaptation to Industry Trends and Consumer Engagement: The healthcare industry is witnessing a shift towards greater consumer engagement and the adoption of advanced technologies. Elevance Health Inc has the opportunity to leverage these trends by enhancing its technological capabilities and mobile interfaces to meet the quickening pace of consumer needs. By staying at the forefront of industry developments and prioritizing consumer-centric initiatives, the company can improve member experiences, optimize health outcomes, and maintain its competitive edge.ThreatsCompetitive Landscape and Market Pressures: Elevance Health Inc operates in a highly competitive environment, facing pressure from both established players and new entrants. The company must continually innovate and adapt to maintain its market position. Competitive pressures may lead to pricing challenges, margin compression, and the need for ongoing investment in technology and services to meet consumer demands. Additionally, the company's ability to attract and retain skilled associates is critical, and intense competition for talent could impact its operational effectiveness and strategic initiatives.Public Health Crises and Cybersecurity Risks: The potential for pandemics and other public health crises, as evidenced by the COVID-19 pandemic, poses a significant threat to Elevance Health Inc's operations. Such events can lead to increased healthcare costs, disruptions in service delivery, and broader economic instability. Moreover, the company's reliance on information technology systems exposes it to cybersecurity risks, including data breaches and cyber-attacks, which could result in financial losses, regulatory penalties, and reputational harm.In conclusion, Elevance Health Inc (NYSE:ELV) exhibits a strong market presence and a diversified service portfolio that positions it well within the healthcare insurance 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 Elevance Health Inc (ELV): A Strategic SWOT Insight

https://finance.yahoo.com/news/decoding-elevance-health-inc-elv-050940252.html

88acb58e-d6aa-391d-9ce6-3bb963175838

ELV

Koninklijke Philips PHG recently announced the introduction of its new imaging technology, LumiGuide, powered by Fiber Optic RealShape (FORS) technology. LumiGuide uses light instead of X-ray to enable doctors to navigate through blood vessels.This latest innovation has the potential to provide numerous benefits for complex aortic procedures and is likely to be more effective and efficient compared to X-ray imaging as X-ray only produces 2D black and white images along with harmful radiations.Price PerformanceFor the past six months, PHG’s shares have lost 8.6% against the industry’s rise of 8.9%. The S&P 500 increased 14.6% in the same time frame.Zacks Investment ResearchImage Source: Zacks Investment ResearchMore on LumiGuide Imaging TechnologyLumiGuide creates real-time, 3D, high-resolution color images of devices, including commercial catheters, within a patient's body in various viewpoints and at any angle by using light reflected along an optical fiber inside a guidewire. It indicates that doctors are aware of which way their equipment is pointed and can observe their intended route. All of this navigation is possible without an X-ray.According to Philips, the company has already seen encouraging research outcomes from more than 900 patients who have had operations using LumiGuide. Compared to an X-ray, one location resulted in a 37% reduction in the duration of the challenging aortic surgery and a 56% decrease in radiation exposure.The company has now made LumiGuide available to major aortic clinics that undertake complex aortic procedures in the United States and Europe. LumiGuide was initially utilized to treat patients in the Netherlands in late 2023.Philips intends to gather additional clinical data at current locations before LumiGuide is made available globally. It intends to expand the technology's compatibility and potentially expand its application beyond aortic surgeries.Technology BenefitsFor complicated aortic surgeries, LumiGuide's radiation-free technology offers potentially revolutionary advantages. In vascular surgery, doctors frequently use tools like catheters and guidewires to do endovascular surgery via arteries like the femur.Story continuesFor many years, the only method available to clinicians for guiding their devices via blood vessels was x-rays. However, x-rays can be harmful. Apart from its potentially hazardous radiation, x-rays can only create two-dimensional, black-and-white images. As doctors perform more intricate endovascular operations, such as repairing an aortic aneurysm cases take longer, and patients and doctors receive larger radiation doses as a result.The next-generation FORS solution, LumiGuide, is only compatible with Philips interventional systems such as Azurion. LumiGuide has additional time-saving capabilities in addition to building upon the knowledge, information, and clinical input from the first limited edition engine and devices utilized at the nine locations.With LumiGuide, physicians may expedite procedure times and improve accuracy by using AI-based recognition to register the guidewire rapidly and efficiently with the image-guided therapy platform, eliminating the need for manual device registration.Industry ProspectsPer a report by Precedence Research, the global diagnostic imaging market was estimated at $28.1 billion in 2022 and is expected to reach more than $51.5 billion by 2032 at a growth rate of 6.3%.The rising demand for the early detection of diseases is significantly fueling growth of the global diagnostic imaging market. The rising prevalence of various chronic diseases and the growing geriatric population are the major drivers of the diagnostic imaging market.Moreover, the demand for diagnostic imaging is exponentially rising owing to the growing old age population, as old age people are more prone to various diseases and are required to be monitored frequently.With the given market potential for diagnostic imaging, Philips is likely to boost its business with its latest LumiGuide technology, which provides an edge over the traditionally used X-ray imaging.Notable DevelopmentsPhilips recently announced the FDA 510(k) clearance for its latest X11-4t Mini 3D TEE transducer, designed to serve more patients with improved overall comfort. This latest innovation has the potential to remove anesthetic during shorter heart procedures and is likely to serve a broader spectrum of patients ranging from pediatric to older adults.In December 2023, Philips announced three new ultra-lightweight magnetic resonance Smart Fit coils, namely Smart Fit TorsoCardiac 1.5T, Smart Fit 1.5T shoulder and Smart Fit Knee 3.0T at RSNA 2023.All three coils enhance flexibility, reduce patient setup time, and improve image quality resolution with SmartSpeed AI solution.Koninklijke Philips N.V. PriceKoninklijke Philips N.V. PriceKoninklijke Philips N.V. price | Koninklijke Philips N.V. QuoteZacks Rank & Stocks to ConsiderPHG carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the broader medical space that have announced quarterly results are Cencora, Inc. COR, Elevance Health, Inc. ELV and Cardinal Health, Inc. CAH.Cencora, carrying a Zacks Rank of 2 (Buy), reported first-quarter fiscal 2024 adjusted earnings per share (EPS) of $3.28, beating the Zacks Consensus Estimate by 14.7%. Revenues of $72.25 billion outpaced the consensus mark by 5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Cencora has a long-term estimated growth rate of 8.6%. COR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 6.7%.Elevance Health reported fourth-quarter 2023 adjusted EPS of $5.62, beating the Zacks Consensus Estimate by 1.3%. Revenues of $42.45 billion outpaced the consensus mark by 1.5%. It currently carries a Zacks Rank #2.Elevance Health has a long-term estimated growth rate of 12%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 3.1%.Cardinal Health reported second-quarter fiscal 2024 adjusted EPS of $1.82, beating the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion surpassed the Zacks Consensus Estimate by 1.1%. It currently carries a Zacks Rank #2.Cardinal Health has a long-term estimated growth rate of 15.9%. CAH’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 15.6%.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportKoninklijke Philips N.V. (PHG) : Free Stock Analysis ReportCardinal Health, Inc. (CAH) : Free Stock Analysis ReportCencora, Inc. (COR) : Free Stock Analysis ReportElevance Health, Inc. (ELV) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Philips' (PHG) New Innovation to Boost Radiation-Free Imaging

https://finance.yahoo.com/news/philips-phg-innovation-boost-radiation-142200143.html

ccb64c8c-91b3-3da0-97b4-a4ab6db6c333

ELV

Dive Brief:Elevance Health said on Monday it closed its deal to acquire infusion and drug therapy company Paragon Health.Under the deal, the insurer will expand Plano, Texas-based Paragon’s real estate footprint and scale up operations, according to the announcement. Paragon will operate under CarelonRx, Elevance’s pharmacy services segment.An Elevance spokesperson declined to share financial terms of the deal. However, Axios, citing sources familiar, reported the purchase would run Elevance over $1 billion.Dive Insight:The deal was first announced in January. Paragon Healthcare serves more than 35,000 patients at over 40 ambulatory infusion centers across eight states. Elevance said the acquisition aims to expand access to specialty medications for those with chronic illnesses, according to a statement from Pete Haytaian, executive vice president of Elevance Health and president of Carelon. Carelon is part of Elevance’s “flywheel for growth,” said Gail Boudreaux, president and CEO of Elevance, during the company’s fourth quarter earnings call in January. Boudreaux told investors that Carelon would continue to add capabilities that could “scale rapidly and sustainably over the long term,” and referenced the Paragon acquisition.“Infusion Services will complement our suite of pharmacy services, which today include a fast-growing specialty pharmacy business and our advanced home delivery service, which launched at the beginning of this year,” Boudreaux said.In February of last year, Elevance acquired specialty pharmacy BioPlus, which also focuses on providing specialty drug needs to those with chronic conditions, including cancer and multiple sclerosis. BioPlus also operates as a part Carelon.The most recent deal comes after Elevance Health reported $6 billion in profit for 2023 on revenue of more than $171 billion in January. The company was hampered by lower than expected Medicare Advantage star ratings in 2023, though four of Elevance’s plan ratings were upwardly revised last week to receive higher stars.Elevance has taken steps to cut costs including conducting layoffs last month.This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter.

Healthcare Dive

Elevance completes Paragon Health acquisition

https://finance.yahoo.com/news/elevance-acquires-paragon-health-101541615.html

48bb02d3-a966-3fc2-836c-58def8559cc0

ELV

Acquisition to enhance capabilities in multi-site infusion services, specialty pharmacyINDIANAPOLIS, March 11, 2024--(BUSINESS WIRE)--Elevance Health (NYSE: ELV) today announced the closing of its acquisition of Paragon Healthcare, Inc., a company specializing in life-saving and life-giving infusible and injectable therapies.Paragon Healthcare provides infusion services to patients through its omnichannel model of ambulatory infusion centers, home infusion pharmacies, and other specialty pharmacy services. The company, headquartered in Plano, Texas, currently serves more than 35,000 patients at over 40 ambulatory infusion centers across eight states, as well as patients’ homes.The acquisition of Paragon Healthcare will deepen Elevance Health’s capabilities around providing affordable, convenient access to specialty medications for those living with chronic and complex illnesses. Paragon Healthcare will now operate as part of CarelonRx, the pharmacy services segment within Carelon, Elevance Health’s health services division."We are excited to welcome Paragon Healthcare – a leading provider of infusion services – to our Elevance Health family," said Pete Haytaian, Executive Vice President, Elevance Health and President, Carelon. "Together, we have the opportunity to provide members with greater choice on where they receive their infused medications, which will ultimately remove barriers to care, increase medication adherence, lower costs of care, and better support members’ whole health."Elevance Health plans to expand Paragon Healthcare’s geographical footprint and operations while bolstering its therapeutic coverage to ensure members receive convenient, timely access to medications.About Elevance Health, Inc.Elevance Health is a lifetime, trusted health partner fueled by its purpose to improve the health of humanity. The company supports consumers, families, and communities across the entire care journey – connecting them to the care, support, and resources they need to lead healthier lives. Elevance Health’s companies serve more than 115 million people through a diverse portfolio of industry-leading medical, digital, pharmacy, behavioral, clinical, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on X and Elevance Health on LinkedIn.Story continuesAbout Paragon Healthcare, Inc.Founded in 2002, Paragon Healthcare, Inc. is a leading provider of infusion services to patients through its network of ambulatory infusion centers, home infusion pharmacies, and other specialty pharmacy services. The company provides high quality, convenient, comfortable, and lower cost care to patients with chronic and acute conditions. Paragon is based in Texas, and operates locations in the following states: Alabama, Colorado, Florida, Georgia, Missouri, Oklahoma, Tennessee and Texas. For more information visit www.paragonhealthcare.com.Forward-Looking StatementsThis document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our views about future events and financial performance and are generally not historical facts. Words such as "expect," "feel," "believe," "will," "may," "should," "anticipate," "intend," "estimate," "project," "forecast," "plan" and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to: financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. You are also urged to carefully review and consider the various risks and other disclosures discussed in our reports filed with the U.S. Securities and Exchange Commission from time to time, which attempt to advise interested parties of the factors that affect our business. Except to the extent required by law, we do not undertake to update or revise any forward-looking statements to reflect events or circumstances occurring after the date hereof. These risks and uncertainties include, but are not limited to: trends in healthcare costs and utilization rates; reduced enrollment; our ability to secure and implement sufficient premium rates; the impact of large scale medical emergencies, such as public health epidemics and pandemics, including COVID-19, and other catastrophes; the impact of new or changes in existing federal, state and international laws or regulations, including healthcare laws and regulations, or their enforcement or application; the impact of cyber-attacks or other privacy or data security incidents or breaches or our failure to comply with any privacy or security laws or regulations, including any investigations, claims or litigation related thereto; information technology disruptions; changes in economic and market conditions, as well as regulations that may negatively affect our liquidity and investment portfolios; competitive pressures and our ability to adapt to changes in the industry and develop and implement strategic growth opportunities; risks and uncertainties regarding Medicare and Medicaid programs, including those related to non-compliance with the complex regulations imposed thereon; our ability to maintain and achieve improvement in Centers for Medicare and Medicaid Services Star ratings and other quality scores and funding risks with respect to revenue received from participation therein; a negative change in our healthcare product mix; costs and other liabilities associated with litigation, government investigations, audits or reviews; our ability to contract with providers on cost-effective and competitive terms; failure to effectively maintain and modernize our information systems; risks associated with providing pharmacy, healthcare and other diversified products and services, including medical malpractice or professional liability claims and non-compliance by any party with the pharmacy services agreement between us and CaremarkPCS Health, L.L.C.; risks associated with mergers, acquisitions, joint ventures and strategic alliances; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; possible restrictions in the payment of dividends from our subsidiaries and increases in required minimum levels of capital; our ability to repurchase shares of our common stock and pay dividends on our common stock due to the adequacy of our cash flow and earnings and other considerations; the potential negative effect from our substantial amount of outstanding indebtedness and the risk that increased interest rates or market volatility could impact our access to or further increase the cost of financing; a downgrade in our financial strength ratings; the effects of any negative publicity related to the health benefits industry in general or us in particular; events that may negatively affect our licenses with the Blue Cross and Blue Shield Association; intense competition to attract and retain employees; risks associated with our international operations; and various laws and provisions in our governing documents that may prevent or discourage takeovers and business combinations.View source version on businesswire.com: https://www.businesswire.com/news/home/20240310886703/en/ContactsMedia Contact: Leslie [email protected] Relations: Stephen [email protected]

Business Wire

Elevance Health Announces Closing of Paragon Healthcare Acquisition

https://finance.yahoo.com/news/elevance-health-announces-closing-paragon-111300979.html

00afec8d-d754-3caa-a1b1-77358db671bc

EMN

Eastman Chemical Company EMN has announced a long-term arrangement with Nord Pal Plast SA, part of Dentis Group. Dentis will offer Eastman 30,000 metric tons of rejected PET post-consumer waste annually via mechanical recycling operations in France and Italy. These materials, which now lack a circular solution, will be recycled at Eastman's molecular recycling plant in France.This alliance emphasizes the essential and complementary nature of both mechanical and molecular recycling processes in achieving a more sustainable future. By integrating their experience and resources, both companies look to achieve genuine circularity in the recycling process, maximizing the value of waste materials while lowering environmental impacts.This partnership helps to provide a long-term value platform for reducing PET waste, with mechanical and chemical recycling serving as effective complements to European plastic recycling rates. This collaboration reflects Eastman's common goal of decreasing plastic waste and strengthening the circular economy.This agreement secures more than 70% of the feedstock for the company's future recycling plant in Normandy, including items often rejected by mechanical recyclers, and confirms its commitment to sustainable solutions.EMN’s molecular recycling facility in Normandy is set to become the biggest material-to-material molecular recycling plant globally. This significant investment in France is an important milestone in Eastman's commitment to sustainable solutions, bolstering the company's efforts to create a more circular economy.Eastman's molecular recycling technologies enable the breakdown of hard-to-recycle waste into molecular building blocks. These building components are then reassembled to produce high-quality materials while maintaining performance. Eastman's approach allows for the potentially unlimited worth of materials, keeping them in production cycle after cycle.Shares of Eastman have lost 2.1% over the past year compared with a 17.2% decline of its industry.Story continuesZacks Investment ResearchImage Source: Zacks Investment ResearchThe company, on its fourth-quarter call, stated that it expects volume increase due to the absence of client inventory destocking in its end markets, with the notable exception of medical and agriculture, which will continue to destock in the first quarter of 2024.EMN anticipates minor primary demand to increase in several stable end industries, with discretionary end markets remaining steady. It expects to gain from the revenues and earnings generated by its Kingsport methanolysis facility. Taking all of this into account, the company expects 2024 EPS to range between $7.25 and $8.00, with cash from operations of around $1.4 billion.Eastman Chemical Company Price and ConsensusEastman Chemical Company price-consensus-chart | Eastman Chemical Company QuoteZacks Rank & Key PicksEastman currently carries a Zacks Rank #3 (Hold).Better-ranked stocks in the basic materials space include United States Steel Corporation X, Carpenter Technology Corporation CRS and Alpha Metallurgical Resources Inc. AMR.United States Steel carrying a Zacks Rank #1 (Strong Buy). X beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 54.8%. The company’s shares have soared 64.1% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 31% in the past year.The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. It currently carries a Zacks Rank #1.  AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 119.8% in a 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 reportAlpha Metallurgical Resources, Inc. (AMR) : Free Stock Analysis ReportUnited States Steel Corporation (X) : Free Stock Analysis ReportCarpenter Technology Corporation (CRS) : Free Stock Analysis ReportEastman Chemical Company (EMN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Eastman (EMN) Partners Nord Pal Plast for Feedstock in France

https://finance.yahoo.com/news/eastman-emn-partners-nord-pal-115000587.html

fb8cbd6f-3cbe-3132-ae1b-3284124ee615

EMN

Most readers would already know that Eastman Chemical's (NYSE:EMN) stock increased by 4.7% over the past three months. As most would know, long-term fundamentals have a strong correlation with market price movements, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. In this article, we decided to focus on Eastman Chemical's ROE.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 simpler terms, it measures the profitability of a company in relation to shareholder's equity. View our latest analysis for Eastman Chemical How Do You 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 Eastman Chemical is:16% = US$896m ÷ US$5.5b (Based on the trailing twelve months to December 2023).The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.16 in profit.What Has ROE Got To Do With Earnings Growth?So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. 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.Eastman Chemical's Earnings Growth And 16% ROETo start with, Eastman Chemical's ROE looks acceptable. Especially when compared to the industry average of 13% the company's ROE looks pretty impressive. Despite this, Eastman Chemical's five year net income growth was quite flat over the past five years. Based on this, we feel that there might be other reasons which haven't been discussed so far in this article that could be hampering the company's growth. These include low earnings retention or poor allocation of capital.Story continuesNext, on comparing with the industry net income growth, we found that the industry grew its earnings by 13% over the last few years.past-earnings-growthEarnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. 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 EMN? You can find out in our latest intrinsic value infographic research report. Is Eastman Chemical Making Efficient Use Of Its Profits?With a high three-year median payout ratio of 53% (implying that the company keeps only 47% of its income) of its business to reinvest into its business), most of Eastman Chemical's profits are being paid to shareholders, which explains the absence of growth in earnings.Moreover, Eastman Chemical has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 37% over the next three years. Regardless, the ROE is not expected to change much for the company despite the lower expected payout ratio.ConclusionOverall, we feel that Eastman Chemical certainly does have some positive factors to consider. However, while the company does have a high ROE, its earnings growth number is quite disappointing. This can be blamed on the fact that it reinvests only a small portion of its profits and pays out the rest as dividends. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.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.

Has Eastman Chemical Company (NYSE:EMN) Stock's Recent Performance Got Anything to Do With Its Financial Health?

https://finance.yahoo.com/news/eastman-chemical-company-nyse-emn-101829584.html

51df9288-4f92-364e-8fed-4763880fc04e

EMN

A month has gone by since the last earnings report for DuPont de Nemours (DD). Shares have added about 5.7% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is DuPont de Nemours due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.DuPont's Q4 Earnings Surpass Estimates, Revenues LagDuPont incurred a loss (on a reported basis) from continuing operations $300 million or 72 cents per share in fourth-quarter 2023. In the year-ago quarter, the company had reported a profit of $105 million or 20 cents per share. The bottom line in the reported quarter was hurt by a hefty non-cash goodwill impairment charge of around $800 million.Barring one-time items, earnings came in at 87 cents per share for the reported quarter, topping the Zacks Consensus Estimate of 85 cents. DuPont raked in net sales of $2,898 million, down 7% from the year-ago quarter. It missed the Zacks Consensus Estimate of $2,902 million. It saw a 10% decline in organic sales in the quarter, hurt by a 9% lower volume and a 1% decline in pricing.The company witnessed challenges from continued economic weakness in China and channel inventory de-stocking in the reported quarter.Segment HighlightsThe company’s Electronics & Industrial segment recorded net sales of roughly $1.36 billion in the reported quarter, up 1% on a year-over-year comparison basis. It was above our estimate of $1.34 billion. Organic sales fell 7% on reduced volumes and prices.Semiconductor Technologies organic sales fell on sustained customer inventory de-stocking and lower semiconductor fab utilization rates. Industrial Solutions registered lower sales mainly due to de-stocking within biopharma markets and for semiconductor-related capex equipment. Organic sales declined in Interconnect Solutions as higher volumes were more than offset by lower pass-through metals prices.Net sales in the Water & Protection unit were around $1.28 billion, down 15% year over year, hurt by lower volumes. The figure was below our estimate of $1.38 billion. DuPont saw lower sales in Safety Solutions, Water Solutions and Shelter Solutions on an organic basis in the quarter.Story continuesFY23 ResultsEarnings from continuing operations for 2023 were $1.09 per share, compared with $2.02 a year ago. Net sales were $12.1 billion for the full year, down around 7% year over year.FinancialsDuPont had cash and cash equivalents of roughly $2.39 billion at the end of 2023, down around 35% year over year. Long-term debt was around $7.8 billion, up about 0.3% year over year.The company generated operating cash flow from continuing operations of $646 million during the fourth quarter and $2.2 billion for full-year 2023.DuPont completed the $2 billion accelerated share repurchase transaction launched in September 2023.OutlookThe company sees net sales for 2024 to be $11.9-$12.3 billion. Adjusted earnings per share for 2024 is forecast to be $3.25-$3.65.For first-quarter 2024, the company expects net sales of roughly $2.8 billion. Adjusted earnings per share for the quarter is projected in the range of 63-65 cents.DuPont expects a sequential decline in sales and earnings in the first quarter driven by additional channel inventory de-stocking within its industrial-based businesses and continued weak demand in China.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.VGM ScoresCurrently, DuPont de Nemours has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise DuPont de Nemours has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.Performance of an Industry PlayerDuPont de Nemours belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, Eastman Chemical (EMN), has gained 5% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.Eastman Chemical reported revenues of $2.21 billion in the last reported quarter, representing a year-over-year change of -7%. EPS of $1.31 for the same period compares with $0.89 a year ago.Eastman Chemical is expected to post earnings of $1.49 per share for the current quarter, representing a year-over-year change of -8.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.7%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Eastman Chemical. Also, the stock has a VGM Score of A.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportDuPont de Nemours, Inc. (DD) : Free Stock Analysis ReportEastman Chemical Company (EMN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Is DuPont de Nemours (DD) Up 5.7% Since Last Earnings Report?

https://finance.yahoo.com/news/why-dupont-nemours-dd-5-163104508.html

e6736be9-96cf-39cc-a497-ce01f25a29b0

EMN

KINGSPORT, Tenn., March 07, 2024--(BUSINESS WIRE)--Eastman Chemical Company (NYSE:EMN): Industrials ConferenceWillie McLain, Executive Vice President and Chief Financial Officer, Eastman Chemical Company (NYSE:EMN), will address the J.P. Morgan Industrials Conference on March 14, 2024 at 8:30 a.m. ET.  Live WebcastMr. McLain’s presentation will be webcast live on investors.eastman.com. ReplayAn audio replay of the presentation will be available at investors.eastman.com, events & presentations. View source version on businesswire.com: https://www.businesswire.com/news/home/20240307595967/en/ContactsInvestor Relations Contact: Greg Riddle, Vice President, Investor Relations & Corporate Affairs212-835-1620 / [email protected] Media Contact: Tracy Kilgore Addington, Corporate Communications Manager423-224-0498 / [email protected]

Business Wire

Eastman CFO Willie McLain to address the J.P. Morgan Industrials Conference

https://finance.yahoo.com/news/eastman-cfo-willie-mclain-address-170000413.html

35305838-523e-3e2a-9876-2371aede9bfa

EMR

Key InsightsUsing the 2 Stage Free Cash Flow to Equity, Emerson Electric fair value estimate is US$122Emerson Electric's US$105 share price indicates it is trading at similar levels as its fair value estimate The US$117 analyst price target for EMR is 4.0% less than our estimate of fair valueToday we will run through one way of estimating the intrinsic value of Emerson Electric Co. (NYSE:EMR) by estimating the company's future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. See our latest analysis for Emerson Electric Step By Step Through The CalculationWe are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:Story continues10-year free cash flow (FCF) forecast2024202520262027202820292030203120322033 Levered FCF ($, Millions) US$2.67bUS$3.33bUS$3.78bUS$4.44bUS$4.48bUS$4.53bUS$4.60bUS$4.68bUS$4.76bUS$4.86bGrowth Rate Estimate SourceAnalyst x8Analyst x8Analyst x4Analyst x1Analyst x1Est @ 1.16%Est @ 1.50%Est @ 1.74%Est @ 1.90%Est @ 2.02% Present Value ($, Millions) Discounted @ 7.8% US$2.5kUS$2.9kUS$3.0kUS$3.3kUS$3.1kUS$2.9kUS$2.7kUS$2.6kUS$2.4kUS$2.3k("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$28bAfter 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 7.8%.Terminal Value (TV)= FCF2033 × (1 + g) ÷ (r – g) = US$4.9b× (1 + 2.3%) ÷ (7.8%– 2.3%) = US$90bPresent Value of Terminal Value (PVTV)= TV / (1 + r)10= US$90b÷ ( 1 + 7.8%)10= US$42bThe total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$70b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of US$105, the company appears about fair value at a 14% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.dcfImportant 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 Emerson Electric 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 7.8%, which is based on a levered beta of 1.205. 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 Emerson ElectricStrengthEarnings growth over the past year exceeded its 5-year average.Debt is well covered by earnings.WeaknessEarnings growth over the past year underperformed the Electrical industry.Dividend is low compared to the top 25% of dividend payers in the Electrical market.OpportunityAnnual earnings are forecast to grow for the next 3 years.Current share price is below our estimate of fair value.ThreatDebt is not well covered by operating cash flow.Dividends are not covered by cash flow.Annual earnings are forecast to grow slower than the American market.Moving On:Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Emerson Electric, we've put together three relevant aspects you should further research:Risks: Be aware that Emerson Electric is showing 2 warning signs in our investment analysis , you should know about...Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for EMR'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.

A Look At The Intrinsic Value Of Emerson Electric Co. (NYSE:EMR)

https://finance.yahoo.com/news/look-intrinsic-value-emerson-electric-130015471.html

8c0db93b-01ba-3bbb-8472-38f2b1b36bc6

EMR

Dividend Kings are an elite group of companies that have distributed and raised their payouts for at least 50 consecutive years. As valuable as this track record is, Dividend Kings tend to take a back seat to faster-growing names during a market that keeps going higher.After all, optimistic investors would much rather find a company with growth prospects and that can pour all its excess earnings and cash flow into that growth rather than pass it along to shareholders in the form of a dividend. But long-term investors know that the true value of Dividend Kings is when equity prices are falling all around you, and yet, the Dividend King is there no matter what to provide reliable passive income.Here's why one of the best-known Dividend Kings, Coca-Cola (NYSE: KO),  along with two other well-known names, Emerson Electric (NYSE: EMR) and Procter & Gamble (NYSE: PG), are all worth buying now.Image source: Getty Images.Coca-Cola just reminded investors of this timeless lessonDaniel Foelber (Coca-Cola): At first glance, Coca-Cola's recent quarter and dividend raise weren't too special. Case volume -- a key metric that shows demand for Coke's products -- grew just 2% in the year, but revenue and earnings growth were solid. 2024 guidance calls for non-GAAP (generally accepted accounting principles) organic revenue growth of 6% to 7% and comparable non-GAAP earnings-per-share growth of 4% to 5%.What's more, Coke raised its dividend by 5.4% to an annual $1.94 per share, marking the 62nd consecutive annual increase.All told, Coke delivered a great 2023, good but not great 2024 guidance, and the largest percentage increase to the dividend since 2017. So why is Coke up over 3% since reporting earnings a couple of weeks ago? The answer has more to do with what investors expect from Coke than from its recent results.Coke is an industry-leading business with an above-average dividend yield and a below-market valuation. Once factoring in the recent raise, its dividend yield is a hearty 3.2% -- more than double the 1.4% dividend yield of the S&P 500. Coke's price-to-earnings (P/E) ratio of 24.8 is also less than the S&P 500's P/E multiple of 27.Story continuesOpponents of Coke stock will say it deserves to trade at a discount to the market because of its low growth. But I'd argue that you can count on one hand how many dividend stocks are in the same league as Coke when it comes to paying and raising a reliable dividend.Coke isn't the kind of company that needs to deliver outstanding growth. All it has to do is grow earnings per share in the mid-single-digit range per year, and it can fund a sizable buyback program and grow its payout. Coke's 2023 performance and latest dividend raise validate why Coke remains a top-tier dividend stock to buy and hold for decades to come.Emerson Electric's pivot toward growth continuesLee Samaha (Emerson Electric): The industrial company has increased its dividend for the last 65 years. That's excellent news for income-seeking investors, as well as growth investors. It's not often discussed that being able to grow your dividend implies having the ability to grow the earnings and cash flow to fund the increase.The company's current dividend yield of 2% is well and fine, but it's not the key reason investors are holding the stock. Instead, management's plan to pivot the company toward automation and adjacent markets has caught the eye. Its stated aim is to "become a pure-play global automation company serving diversified end markets," and management took a big step in that direction by selling its majority share in its climate technologies business in 2023.That deal followed Emerson's deal in 2022 to combine its industrial software business with AspenTech to create a new Aspen Technology, of which Emerson owns 55%. The dealmaking continued in 2023 with the successful acquisition of software-connected automated test and measurement systems company NI in October. The timing of the acquisition may prove opportune as the semiconductor and consumer electronics industries are expected to pass a trough in 2024.Thinking longer-term, Emerson's focus on automation makes it ideally placed to benefit from powerful reshoring trends in the U.S. economy and the drive toward using automation to enhance productivity in general. There may be better value automation-focused stocks out there. Still, they tend to be foreign, and investors who don't want to worry about exchange rate movements will prefer Emerson Electric for its combination of dividends and growth.P&G produces prodigious cash from a diverse portfolio of brandsScott Levine (Procter & Gamble): For those keen on drinking up the dividends Coca-Cola offers, Procter & Gamble will also be appealing. Like Coca-Cola, P&G is a consumer staples company with an impressive history of rewarding shareholders, hiking its dividend higher for the past 67 consecutive years.How has it accomplished this striking feat? The company maintains a portfolio of leading consumer products, which helps it generate massive amounts of cash it then returns to investors. For those looking to further fortify their portfolios with a consumer staples stalwart, P&G -- and its 2.4% forward-yielding dividend -- is an ideal consideration.From baby care to home care to grooming, P&G owns some of the most popular consumer staples brands found in our homes today -- and many located around the globe. And the company does an excellent job of translating sales of these items into strong cash flow. In 2023, for example, P&G converted 16.8% of its revenue into free cash flow. While this allows the company to pursue growth through acquisitions, it also helps fund its dividend payments without jeopardizing its financial well-being.PG Free Cash Flow Per Share (Annual) ChartAnd that's not the only perspective from which the company's dividend looks secure. Over the past 10 years, P&G has averaged a payout ratio of 80.6%, which seems even more conservative if you discount the uncharacteristically high payout ratio of 186% it had in 2019.The remarkable strength of P&G's portfolio is unlikely to wane anytime soon. In fact, it may grow even stronger if the company pursues further acquisitions or grows organically through its own innovations -- two strategies the company has excelled at over its 187-year history.Moreover, it's quite probable the company will continue to increasingly reward shareholders, making the stock a great choice for those looking to supplement their passive income.Should you invest $1,000 in Coca-Cola right now?Before you buy stock in Coca-Cola, 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 Coca-Cola 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, 2024Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Emerson Electric. The Motley Fool has a disclosure policy.If You Own Coca-Cola, Then You Will Love These 2 Dividend Kings was originally published by The Motley Fool

Motley Fool

If You Own Coca-Cola, Then You Will Love These 2 Dividend Kings

https://finance.yahoo.com/news/own-coca-cola-then-love-112500445.html

a3a0c265-564a-31ab-a74c-ddc12b574419

EMR

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. Importantly, Emerson Electric Co. (NYSE:EMR) does carry debt. But should shareholders be worried about its use of debt?When Is Debt A Problem?Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. The first step when considering a company's debt levels is to consider its cash and debt together. See our latest analysis for Emerson Electric What Is Emerson Electric's Debt?As you can see below, at the end of December 2023, Emerson Electric had US$10.9b of debt, up from US$9.95b a year ago. Click the image for more detail. However, because it has a cash reserve of US$2.08b, its net debt is less, at about US$8.78b.debt-equity-history-analysisHow Healthy Is Emerson Electric's Balance Sheet?We can see from the most recent balance sheet that Emerson Electric had liabilities of US$7.77b falling due within a year, and liabilities of US$12.2b due beyond that. On the other hand, it had cash of US$2.08b and US$3.66b worth of receivables due within a year. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$14.2b.Story continuesWhile this might seem like a lot, it is not so bad since Emerson Electric has a huge market capitalization of US$63.0b, and so it could probably strengthen its balance sheet by raising capital if it needed to. However, it is still worthwhile taking a close look at its ability to pay off debt.We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.Emerson Electric's net debt to EBITDA ratio of about 2.0 suggests only moderate use of debt. And its strong interest cover of 1k times, makes us even more comfortable. Also relevant is that Emerson Electric has grown its EBIT by a very respectable 26% in the last year, thus enhancing its ability to pay down debt. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Emerson Electric's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.Finally, a company can only pay off debt with cold hard cash, not accounting profits. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. During the last three years, Emerson Electric produced sturdy free cash flow equating to 64% of its EBIT, about what we'd expect. This cold hard cash means it can reduce its debt when it wants to.Our ViewHappily, Emerson Electric's impressive interest cover implies it has the upper hand on its debt. And the good news does not stop there, as its EBIT growth rate also supports that impression! Looking at the bigger picture, we think Emerson Electric's use of debt seems quite reasonable and we're not concerned about it. While debt does bring risk, when used wisely it can also bring a higher return on equity. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. For example, we've discovered 2 warning signs for Emerson Electric that you should be aware of before investing here.If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.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.

Emerson Electric (NYSE:EMR) Seems To Use Debt Quite Sensibly

https://finance.yahoo.com/news/emerson-electric-nyse-emr-seems-120016001.html

84897795-bc88-39de-82ae-39dde4058453

EMR

Emerson technology enables the safe and efficient management of hydrogen terminal operations and remote monitoring of H2 Hauler distribution networkTOOWOOMBA, Australia, March 11, 2024 /PRNewswire/ -- H2 Hauler, an Australian-based company that designs, manufactures and certifies storage and distribution equipment for compressed hydrogen, has selected global technology and software leader Emerson (NYSE: EMR) as its technology partner to provide a consolidated and integrated hydrogen mobility business management system.Emerson (PRNewsfoto/Emerson)Low-emissions hydrogen has the potential to accelerate the energy transition, with over 40 countries announcing national hydrogen strategies to date. Delivering on this vision at scale will require technologies and infrastructure to safely and reliably transport and store high-pressure hydrogen, from production locations to industrial facilities, power generators or fueling stations.Selected for its comprehensive automation portfolio, mobility solutions and hydrogen expertise, Emerson will fully automate H2 Hauler's loading and monitoring systems, manage custody transfer, and monitor trailer tube assets to enable safe and sustainable transport of hydrogen."As we expand our operations in hydrogen road transport and storage manufacturing, we are confident Emerson's proven automation technologies and software will support not only safe storage and distribution, but vital chain-of-custody management and auditing capabilities to demonstrate the impact of this emerging industry," said H2 Hauler CEO Tyson Cooney.To optimize H2 Hauler's hydrogen dispensing skids and trailer onboard units, Emerson's robust solutions include its DeltaV™ PK Controller, fire and gas systems, valves, actuators and regulators. In addition, Emerson will provide a secure, cloud-based data platform to remotely view and control equipment – enabling real-time data for optimal operational performance."As demand for hydrogen accelerates across heavy-duty transportation applications, we need systems in place to safely, reliably and efficiently transport hydrogen from where it is produced to where it is needed," said Mike Train, Emerson's chief sustainability officer. "We look forward to delivering our hydrogen mobility technologies to H2 Hauler, which is making strides in support of Australia's mobile hydrogen infrastructure."Story continuesEmerson offers expert technologies and experience for the entire hydrogen value chain. Emerson is working with an array of hydrogen customers including BayoTech that is building modular hydrogen units to deliver hydrogen to customers; Toyota Australia that developed a commercial-grade hydrogen production, storage and refueling plant; and KOHYGEN that is constructing a network of high-capacity gas or liquid hydrogen refueling stations across South Korea.Additional resources:Join the Emerson Exchange 365 CommunityConnect with Emerson via Twitter Facebook LinkedIn YouTubeAbout Emerson Emerson (NYSE: EMR) is a global technology and software company providing innovative solutions for the world's essential industries. Through its leading automation portfolio, including its majority stake in AspenTech, Emerson helps hybrid, process and discrete manufacturers optimize operations, protect personnel, reduce emissions and achieve their sustainability goals. For more information, visit Emerson.com.CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/emerson-to-provide-integrated-hydrogen-mobility-technologies-to-h2-hauler-302083251.htmlSOURCE Emerson

PR Newswire

Emerson to Provide Integrated Hydrogen Mobility Technologies to H2 Hauler

https://finance.yahoo.com/news/emerson-integrated-hydrogen-mobility-technologies-130000698.html

bf89963e-23c2-3f85-a24b-a96b434748ca

ENPH

Enphase Energy, Inc.FREMONT, Calif., Feb. 26, 2024 (GLOBE NEWSWIRE) -- Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world's leading supplier of microinverter-based solar and battery systems, announced today that it has started production shipments of its most powerful home battery to-date, the IQ® Battery 5P™, for customers in Italy. The IQ Battery 5P is a modular design with 5 kWh capacity and can be paired with the new IQ8™ Microinverters to provide homeowners reliable electricity to use whenever they need it.Enphase launched its new home energy system in Italy with IQ Battery 5P and IQ8 Microinverters during an event at the Ferrari Museum in Maranello in December 2023. The event featured hundreds of solar installers and distributors from across the country, as well as Enphase executives. Enphase began shipping IQ8 Microinverters at the end of 2023, and today announced the start of shipments for IQ Battery 5P to customers in the region.The new Enphase® Energy System™ with the IQ Battery 5P enables configurations ranging from 5 to 60 kWh and offers a significantly improved experience for homeowners and installers because of more power, resilient wired communication, and an improved commissioning experience. Homeowners can also use the Enphase® App to monitor performance and intelligently manage their battery systems, including the self-consumption feature to help minimize the use of electricity from the grid.“Italian homeowners and businesses are looking for high-performance energy systems that offer the highest level of safety and reliability,” said Daniele Bragazzi, sales manager at Greensun Srl. “We're excited to begin offering our customers the IQ Battery 5P, which is designed to seamlessly pair with their solar energy systems to enhance energy resilience and independence.”“The IQ Battery 5P features a modular architecture so that we can easily customize home energy systems to meet our customers’ needs,” said Matteo Artero, managing director at Soly. “Enphase’s microinverter-powered energy solutions are easy to install, monitor, and maintain, providing our customers with access to clean and reliable energy for years to come.”Story continuesThe third-generation Enphase Energy Systems in Italy also include IQ8 Microinverters, which are designed to help maximize energy production and can manage a continuous DC current of 14 amperes to support higher-powered solar modules through increased energy harvesting. The Enphase Energy System integrates with the IQ® Gateway, which can be connected to the internet to enable over-the-air updates and connect to the Enphase App monitoring platform. In addition, Enphase offers 24/7 customer support and an industry-leading warranty for both solar and battery products. This includes a 25-year limited warranty for all IQ8 Microinverters and a 15-year warranty for all IQ Batteries activated in Italy.“The Enphase Energy System, powered by the IQ Battery 5P, is Enphase’s most powerful home energy system,” said Antonio Tognazzi, owner of Lightland Soluzioni Energia Srl, a SunPower Premier Partner. “Paired with Enphase’s intelligent optimization and monitoring software, it’s also one of the industry’s leading end-to-end energy solutions, allowing Italian homeowners to take charge of their energy future.”Enphase expects to introduce more sophisticated energy management software for its solar plus battery systems in 2024 as Italy continues the rapid shift toward electrification with electric vehicles, heat pumps, and more. The Enphase Energy System software will manage this complexity by leveraging artificial intelligence and machine learning to forecast and optimize home energy needs.“We’re committed to providing our worldwide installer partners with the most innovative technology available to accelerate the adoption of clean, resilient, and intelligent energy systems,” said Aaron Gordon, senior vice president and general manager of the systems business unit at Enphase Energy. “Designed with installers and customers in mind, the IQ Battery 5P vastly improves the installation, commissioning, and operational experience from start to finish.”Installers and distributors in Italy can order the IQ Battery 5P today. Enphase will be showcasing its Enphase Energy System with IQ8 Microinverters and IQ Battery 5P at the KEY Energy Transition Expo in Rimini, Italy from Feb. 28 - March 1, 2024 at stand D3 195. The Company will also be showcasing Enphase products and services during the distributor roadshow happening throughout the country in April 2024.About Enphase Energy, Inc.Enphase Energy, a global energy technology company based in Fremont, CA, is the world's leading supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power—and control it all with a smart mobile app. The company revolutionized the solar industry with its microinverter-based technology and builds all-in-one solar, battery, and software solutions. Enphase has shipped more than 73 million microinverters, and approximately 4.0 million Enphase-based systems have been deployed in more than 150 countries. For more information, visit https://enphase.com/.©2024 Enphase Energy, Inc. All rights reserved. Enphase, the “e” logo, IQ, and certain other marks listed at https://enphase.com/trademark-usage-guidelines are trademarks of Enphase Energy, Inc. in the U.S. and other countries. Other names are for informational purposes and may be trademarks of their respective owners.Forward-Looking StatementsThis press release may contain forward-looking statements, including statements related to the expected capabilities and performance of Enphase Energy’s technology and products, including safety, quality and reliability; the availability and market adoption of Enphase products in Italy; the ability of Enphase products to provide reliable electricity whenever customers need it; and Enphase’s ability to support newer high-powered solar modules. These forward-looking statements are based on Enphase’s current expectations and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of certain risks and uncertainties, including those risks described in more detail in Enphase’s most recently filed Annual Report on Form 10-K for the year ended December 31, 2023 and other documents on file with the SEC from time to time, which are available on the SEC’s website at https://www.sec.gov/. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, or changes in its expectations, except as required by law.Contact:Enphase Energy [email protected]

GlobeNewswire

Enphase Energy Starts Shipping New Home Energy Systems in Italy with IQ Batteries

https://finance.yahoo.com/news/enphase-energy-starts-shipping-home-130000701.html

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

Insider Monkey

12 Best Green Stocks To Invest In 2024

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

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In this article, we will take a detailed look at Billionaire Ray Dalio and Insiders Love These 10 Stocks. For a quick overview of such stocks, read our article Billionaire Ray Dalio and Insiders Love These 5 Stocks.Investors are on tenterhooks before the latest inflation report scheduled to be out on Tuesday. While many believe a more-than-expected uptick in prices could further derail the Fed’s plan of action regarding rate hikes, the bulls believe the market is set for further gains in 2024 and beyond as stocks continue to rage higher and market gains that were once concentrated in a few names are now rewarding other companies as well. A latest Wall Street Journal report cited data from Bespoke Investment Group, which showed that the equal-weighted S&P 500 rose to a record high last week, as about one-fifth of the stocks in the index hit new 52-week highs.The WSJ report also quoted Joseph Amato, chief investment officer of Neuberger Berman, who said that risky assets could perform well as inflation is coming down and the Fed is “no longer fighting you.”Market Gains are Broadening OutScott Chronert, Citi U.S. equity strategist, who has been bullish on the S&P 500 fundamentals for several weeks now, recently said in a program on CNBC that there is a lot to support his bullish view on the market. The analyst said while the Magnificent Seven group of stocks certainly contributed to the market rally, the “broadening” of the rally to other stocks is also playing a key role in the bull run. Chronert said that after being on the sidelines for most part of 2023, investors are now trying to join the market rally since he believes inflows in ETFs are growing. The analyst also said the generative AI growth drivers are still pulling the Magnificent Seven tech stocks. Chronert expects the S&P 500 to touch 5,700 this year based on his bullish case assumptions.Billionaire Ray Dalio and Insiders Love These StocksMethodologyIn this backdrop, when market experts are expecting further growth in the stock market, it's important to see which stocks insiders and hedge funds are buying. For this article we used Insider Monkey's stock screener to first list down the stocks that have seen heavy insider buying activity over the past few months. From these stocks we selected 10 stocks in which billionaire Ray Dalio's Bridgewater Associates has stakes, based on the fund's Q4'2023 portfolio. Some top names in the list are Exxon Mobil Corp (NYSE:XOM), Enphase Energy Inc (NASDAQ:ENPH) and Block Inc (NYSE:SQ). The idea was to find stocks that both Ray Dalio and corporate insiders love. But why is it important to keep tabs on hedge fund activity? 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).Story continuesBillionaire Ray Dalio and Corporate Insiders are Loading Up on These Stocks10. CNX Resources Corp (NYSE:CNX)Bridgewater Associates’ Stake: $1,084,440 Bridgewater Associates reported owning a $1 million stake in CNX Resources Corp (NYSE:CNX) as of the end of the fourth quarter of 2023. This was a 68% decline in the fund’s stake in CNX Resources Corp (NYSE:CNX) when compared to the previous quarter. Bernard Lanigan, a board member at CNX Resources Corp (NYSE:CNX), amassed 172,830 shares of CNX Resources Corp (NYSE:CNX) on June 30, 2023, at  $21.25 per share. Since then, the stock has gained about 19% in value through March 8. In addition to CNX, hedge funds also like Exxon Mobil Corp (NYSE:XOM), Enphase Energy Inc (NASDAQ:ENPH) and Block Inc (NYSE:SQ).Longleaf Partners Small-Cap Fund made the following comment about CNX Resources Corporation (NYSE:CNX) in its Q3 2023 investor letter:“CNX Resources Corporation (NYSE:CNX) – Natural gas company CNX Resources was the top performer in the quarter. The company benefited from rising energy prices, as well as strong operational execution. CNX remains highly discounted, as the market does not give the company credit for its longer-term undrilled assets or its “new technology investments,” which include methods to reduce carbon on a net basis. Management expects this to be a material business for CNX over the longer term, but for now it is a high-quality hidden asset. CNX has taken advantage of the price disconnect through meaningful share repurchase.”9. Block Inc (NYSE:SQ)Bridgewater Associates’ Stake: $1,356,719 As of the end of the last quarter of 2023, Ray Dalio’s hedge fund reported owning 17,540 shares of Block Inc (NYSE:SQ). On November 8, Roelof Botha, a board director at the payments company, snapped up 540,646 shares of Block Inc (NYSE:SQ) at $50.89 per share. Since then, the stock has gained about 47% in value as of March 8.As of the end of the fourth quarter of 2023, 75 hedge funds tracked by Insider Monkey had stakes in Block Inc (NYSE:SQ). The biggest sake in Block Inc (NYSE:SQ) is owned by Catherine D. Wood’s ARK Investment Management which owns a $920 million stake in Block Inc (NYSE:SQ).Baron Fifth Avenue Growth Fund stated the following regarding Block, Inc. (NYSE:SQ) in its fourth quarter 2023 investor letter:“During the quarter, we also added to our existing investment in Block, Inc. (NYSE:SQ). The company provides a point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. After the company reported solid quarterly result, it has also guided to reach a rule of 40 on GAAP profitability for fiscal year 2026 (implying that the combination of gross profit growth and GAAP operating margins would be at least 40%). We believe Block’s businesses are resilient, and greater management focus on cost discipline should drive further margin expansion over the long term. We also believe that Block has a long runway for growth, durable competitive advantages, and a robust track record of innovation.”8. Transocean LTD (NYSE:RIG)Bridgewater Associates’ Stake: $1,741,132American drilling company Transocean LTD (NYSE:RIG) is a new addition in Ray Dalio’s portfolio since Bridgewater bought $1.7 million worth of Transocean LTD (NYSE:RIG) shares during the last quarter of 2023. On February 27, Frederik Wilhelm Mohn, a director at Transocean LTD's (NYSE:RIG) board, bought one million shares of Transocean LTD (NYSE:RIG) at $4.89 per share. Since then the stock has gained about 6.6% in value.7. Keurig Dr Pepper Inc. (NASDAQ:KDP)Bridgewater Associates’ Stake: $1,907,004 Beverage company Keurig Dr Pepper Inc. (NASDAQ:KDP) ranks seventh in our list of the stocks both Ray Dalio and Insiders love. Keurig Dr Pepper Inc.'s (NASDAQ:KDP) CEO  Robert Gamgort on March 5 bought 171,821 Keurig Dr Pepper Inc. (NASDAQ:KDP) shares at $29.10 per share. Two directors at Keurig Dr Pepper Inc.'s (NASDAQ:KDP) board also bought 171,821 shares each at the same price. Since March 5 through market close on March 7 the stock jumped 1.39%.6. Sarepta Therapeutics Inc (NASDAQ:SRPT)Bridgewater Associates’ Stake: $2,544,595 Ray Dalio’s Bridgewater decreased its stake Sarepta Therapeutics Inc (NASDAQ:SRPT) by 48% in the fourth quarter of 2023, concluding the year with a $2.5 million stake in the Massachusetts-based medical research and drug development company. Richard Barry, a director at Sarepta Therapeutics Inc's (NASDAQ:SRPT) board, bought 50,000 shares of Sarepta Therapeutics Inc (NASDAQ:SRPT) on November 3 at $78.81 per share. As of March 7 market close the stock was trading at around $120.78 per share. This shows a whopping 53% increase in stock price. In addition to SRPT, insiders are also piling into Exxon Mobil Corp (NYSE:XOM), Enphase Energy Inc (NASDAQ:ENPH) and Block Inc (NYSE:SQ).Bronte Capital Amalthea Fund made the following comment about Sarepta Therapeutics, Inc. (NASDAQ:SRPT) in its Q3 2023 investor letter:“The FDA is widely considered to be the world’s foremost regulator of drug products, with a stringent and rigorous process for evaluating new marketing applications. Disagreements between the FDA and regulators in other developed markets (such as the European Medicines Agency or the Australian Therapeutic Goods Administration (TGA)) are rare, and when they do occur, it is usually because the FDA has taken a more critical view of the applicant’s evidence.For a drug to be approved in the US, it must meet the statutory requirement of “substantial evidence of effectiveness” under the Federal Food, Drug, and Cosmetic Act. There are essentially three ways to meet this requirement. Normally, the FDA expects the sponsor to succeed in two “adequate and well-controlled studies”. Alternatively, the sponsor can rely on success from a single study if the results from that study are “very persuasive”, or if they are combined with some sort of independent confirmatory evidence. For the most part lobbying from the cohort of patients, the “patient voice”, has played a relatively minor role in the FDA’s decision-making process and the agency has been prepared to make tough but rational decisions when the “substantial evidence” standard is clearly not met.However, this was not the case in 2016 when the FDA famously overruled its own review team and external advisory committee to approve Sarepta Therapeutics, Inc.’s (NASDAQ:SRPT) controversial drug for Duchenne muscular dystrophy (Exondys 51). At the time, Sarepta had completed a single phase 2 trial in just 12 patients which, per the FDA Commissioner (Robert Califf) himself, had “major flaws” in both its design and conduct. Ellis Unger, director of the Office of Drug Evaluation at the FDA, declared that the drug was a “scientifically elegant placebo”, and that patients and their families were taking on unknown risks for likely non-existent benefits…” (Click here to read the full text) Click to continue reading and see Billionaire Ray Dalio and Insiders Love These 5 Stocks. Suggested Articles:10 Stocks Warren Buffett and Insiders Are Crazy About11 Stocks Insiders and Billionaires Are Crazy AboutWarren Buffett and Corporate Insiders Love These StocksDisclosure. None. Billionaire Ray Dalio and Insiders Love These 10 Stocks was initially published on Insider Monkey.

Insider Monkey

Billionaire Ray Dalio and Insiders Love These 10 Stocks

https://finance.yahoo.com/news/billionaire-ray-dalio-insiders-love-130324479.html

94f334ae-edab-39b6-9fce-9073fa817daf

ENPH

In the latest trading session, Enphase Energy (ENPH) closed at $128.69, marking a -1.22% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.11%. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq depreciated by 0.41%.Heading into today, shares of the solar technology company had gained 6.38% over the past month, outpacing the Oils-Energy sector's gain of 3.56% and the S&P 500's gain of 2.7% in that time.Market participants will be closely following the financial results of Enphase Energy in its upcoming release. It is anticipated that the company will report an EPS of $0.40, marking a 70.8% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $283.63 million, down 60.93% from the year-ago period.For the full year, the Zacks Consensus Estimates project earnings of $3.37 per share and a revenue of $1.67 billion, demonstrating changes of -23.58% and -27.14%, respectively, from the preceding year.Investors should also note any recent changes to analyst estimates for Enphase Energy. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 2.09% lower within the past month. At present, Enphase Energy boasts a Zacks Rank of #3 (Hold).Story continuesInvestors should also note Enphase Energy's current valuation metrics, including its Forward P/E ratio of 38.69. This indicates a premium in contrast to its industry's Forward P/E of 11.83.It is also worth noting that ENPH currently has a PEG ratio of 2.24. 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 Solar industry currently had an average PEG ratio of 0.72 as of yesterday's close.The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 152, positioning it in the bottom 40% of all 250+ industries.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.To follow ENPH 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 reportEnphase Energy, Inc. (ENPH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Enphase Energy (ENPH) Falls More Steeply Than Broader Market: What Investors Need to Know

https://finance.yahoo.com/news/enphase-energy-enph-falls-more-214517203.html

24adc6ff-857f-33fc-afb8-9ef86f829141

EOG

EOG Resources (NYSE:EOG) Full Year 2023 ResultsKey Financial ResultsRevenue: US$24.2b (down 18% from FY 2022).Net income: US$7.59b (down 2.1% from FY 2022).Profit margin: 31% (up from 26% in FY 2022). The increase in margin was driven by lower expenses.EPS: US$13.07 (down from US$13.31 in FY 2022).earnings-and-revenue-growthAll figures shown in the chart above are for the trailing 12 month (TTM) periodEOG Resources Revenues and Earnings Beat ExpectationsRevenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) also surpassed analyst estimates by 1.1%.Looking ahead, revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 1.5% growth forecast for the Oil and Gas industry in the US.Performance of the American Oil and Gas industry.The company's shares are down 1.5% from a week ago.ValuationIt's possible that EOG Resources could be undervalued with our 6-factor valuation analysis indicating a potential opportunity. Click here to find out what a fair price for the stock might be and where analysts see the share price heading over the next year.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.

EOG Resources Full Year 2023 Earnings: Beats Expectations

https://finance.yahoo.com/news/eog-resources-full-2023-earnings-130944983.html

09a0cddb-a6e9-33d5-ad71-5fdbf1b71448

EOG

EOG Resources, Inc. (NYSE:EOG) Q4 2023 Earnings Call Transcript February 23, 2024EOG Resources, 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: Good day, everyone, and welcome to EOG Resources Fourth Quarter and Full Year 2023 Earnings Results Conference Call. As a reminder, this call is being recorded. At this time for opening remarks and introductions, I would like to turn the call over to the Investor Relations Vice President of EOG Resources, Mr. Pearce Hammond. Please go ahead, sir.Pearce Hammond: Thank you, and good morning, and thanks for joining us for the EOG Resources fourth quarter 2023 earnings conference call. I'm Pearce Hammond, Vice President, Investor Relations. An updated investor presentation has been posted to the Investor Relations section of our website, and we will reference certain slides during today's discussion. A replay of today's call will be available on our website beginning later today. As a reminder, this conference call includes forward-looking statements. Factors that could cause our actual results to differ materially from those and our forward-looking statements have been outlined in the earnings release, and EOG's SEC filings. This conference call may also contains certain historical and forward-looking non-GAAP financial measures.Definitions and reconciliation schedules for these non-GAAP measures and related discussion can be found on EOG's website. In addition, some of the reserve estimates on this conference call may include estimated potential reserves, as well as estimated resource potential not necessarily calculated in accordance with the SEC's reserve reporting guidelines. Participating on the call this morning are Ezra Yacob, Chairman and CEO; Billy Helms, President; Jeff Leitzel, Chief Operating Officer, Ann Janssen, Chief Financial Officer, and Lance Terveen, Senior Vice President, Marketing. Here's Ezra.Story continuesEzra Yacob: Thanks, Pearce. Good morning, everyone, and thank you for joining us. Our outstanding performance last year demonstrates that EOG's value proposition delivers results. We beat our volume targets and reached a production milestone, exiting the year producing more than 1 million barrels of oil equivalent per day. We earned adjusted net income of $6.8 billion for a return on capital employed of 31%. We generated $5.1 billion of free cash flow and returned more than 85% of that free cash flow to shareholders last year, handily outpacing our cash return commitment. Our regular dividend remains the anchor of our cash return strategy. We increased it 10% last year to an annualized rate of $3.64 per share, which represents among the highest regular dividend yields of our peers and is competitive with the broader market.2023 was a year of record production and outstanding financial performance, and it's not a one-off year. The real power of EOG's value proposition is consistency. Over the last three years, since the start of 2021, EOG has generated about $20 billion of adjusted net income, over $18 billion of free cash flow, and returned over $12 billion to shareholders. EOG delivers reliable operating results that translate to consistent financial performance year after year through the cycle. And that's EOG's value proposition, sustainable value creation through industry cycles. Our strategy to deliver on that value proposition starts first with capital discipline, a returns-focused capital allocation strategy guided by our premium hurdle rate, which requires investments to earn at least 30% direct after tax return at $40 oil and $2.50 natural gas.Capital discipline allows EOG to consistently achieve its free cash flow priorities and deliver on shareholder return commitments, positioning EOG as a compelling investment competitive with the S&P 500. The second principle of our strategy to deliver on our value proposition is operational execution. Our multi-basin organic growth portfolio is a competitive advantage. We have superior in-house technical expertise that supports leading-edge well performance while minimizing well costs. Our proprietary information technology enables real-time data-driven decision-making. We actively avoid falling into manufacturing mode where one well design is stamped out across a basin. Rather, we adhere to the discipline of continuous improvement such that the latest learnings get embedded into the next well and transferred to the next basin.Integrated into our operations is our focus on sustainability, the third leg of our strategy to deliver EOG's value proposition. Last year was a banner year with respect to our environmental performance. In addition to maintaining GHG and methane emissions intensity rates below our 2025 targets, we also achieved zero routine flaring throughout our operations. We achieved a wellhead gas capture rate of 99.9% and in the Delaware basin, our most active operational area, we increased water reuse to 90%. The final leg and foundation of our value proposition is EOG's culture. Our employees embrace and embody EOG's unique culture and are the number one reason for EOG's success. Collaborative multidisciplinary teams drive innovation and sustain the cycle of continuous improvement and our technology leadership.Our company is decentralized and non-bureaucratic to allow decision-making in the field at the asset level, which truly differentiates EOG relative to our peers and is a lasting competitive advantage. This culture is what drove our successful results in 2023 and provides the foundation to continue to deliver in the future. Ann is up next to discuss our cash return strategy and preview the details of our 2024 capital plan. Here's Ann.Ann Janssen: Thanks, Ezra. This morning, I'd like to review EOG's cash return strategy. A growing sustainable regular dividend remains the foundation of our cash return commitment, which is now a minimum of 70% of our annual free cash flow. We believe the regular dividend is the best indicator of a company's confidence in its future performance. It's a commitment to our shareholders based on our ability to continue to lower our cost structure and sustainably expand future free cash flow generation. Since we began trading as an independent company in 1999, we have delivered a sustainable growing regular dividend. It has never been cut or suspended and its 25-year compound annual growth rate is 21%. Last year, we announced an increase in our regular dividend of 10%.In fact, we have increased our regular dividend by at least 10% each year for the last seven years. The indicated annual rate is now $3.64 per share, which currently represents about a 3.2% regular dividend yield, among the highest in our E&P peer group. In addition to our regular dividend, we paid $2.50 per share in special dividends in 2023 and took advantage of increased market volatility to opportunistically repurchase shares. We bought back approximately 1 billion of our shares at an average price of $112 per share, repurchasing nearly 9 million shares. Since putting the $5 billion repurchase authorization in place over two years ago, the fundamental strength of our business has improved and we continue to get better through consistent execution of and commitment to EOG's value proposition.Last year, we also further strengthened our balance sheet by retiring $1.25 billion of debt. At year-end 2023, we had $5.3 billion in cash on the balance sheet, $3.8 billion in long-term debt, and over $7 billion of liquidity. We view a strong balance sheet as a competitive advantage in a cyclical industry. Our balance sheet is among the strongest in the energy sector and ranks near the top 10% in the S&P 500. Between our $1.9 billion of regular dividends, $1.5 billion of special dividends, $1 billion of buybacks, and retiring $1.25 billion of debt, 100% of EOG's 2023 free cash flow of $5.1 billion is accounted for. With a financial profile more competitive than ever with the broader market, EOG has never been better positioned to generate significant long-term shareholder value.This quarter, we included a three-year scenario on slide five of our investor presentation to illustrate our ability to create future shareholder value. We assumed a macro environment, commodity prices, and production growth comparable to the last few years for production that's low single-digit oil growth and high single-digit BOE growth per year. In the current environment, this pace of activity has delivered exceptional results, and we expect to deliver more of the same. Using a $65 to $85 oil price range and a $3.25 natural gas price through 2026, we would expect to generate between $12 billion and $22 billion in cumulative free cash flow and an average return on capital employed of 20% to 30%. At the midpoint, the scenario estimates $17 billion in cumulative free cash flow, which represents about one-quarter of EOG's current enterprise value.We believe this three-year scenario highlights an extremely competitive shareholder return profile not only among energy companies, but also with the S&P 500. Turning more immediately to 2024, we forecast another year of strong operational and financial performance. We expect our $6.2 billion capital plan to grow oil volumes by 3% and total production on a BOE basis by 7%. At just $45 WTI, our plan breaks even. At $75 WTI and $250 Henry Hub, we expect to generate about $4.8 billion of free cash flow and produce an ROCE of greater than 20%. Based on our target of returning at least 70% of free cash flow, that implies a minimum return to shareholders of $3.4 billion this year. Now, here's Billy to review 2023 operating results and proved reserves.Lloyd Helms: Thanks, Ann. 2023 proved to be another exceptional year of performance, and I would like to thank each of our employees for their accomplishments and execution last year. For the full year, we delivered oil production above the original guidance midpoint set at the beginning of the year, while capital spending was at the midpoint. Overall, we were able to grow our oil volumes by 3% and our total production by 8% year-over-year. In the fourth quarter, we achieved a significant milestone, crossing the 1 million barrel of oil equivalent per day level of total production. EOG has been able to nearly double production over the last 10 years through our high return organic growth approach. Last year, our cross-functional teams worked to drive efficiency gains throughout our multi-basin portfolio.An oil rig in action in a vast desert, drilling for natural gas.For drilling operations, our EOG motor program continues to reduce downtime with our 2023 program yielding about a 15% improvement in footage drilled per rig. For completions, we continue to expand our super zipper operations across our multi-basin portfolio, reduce frac fleet move times, and decrease stage pump times due to increased horsepower for frac fleet. This improved our completed footage per frac fleet by about 7% in 2023. And we expect to continue seeing the benefit of those gains throughout 2024, which Jeff will run through shortly. Our production teams work to optimize production and expenses, reducing our cash operating costs to $10.33 per BOE. In addition, our facility and operating personnel continue to reduce our methane emissions while commissioning our first CCS injection well.Our approved reserve base increased by 260 million barrels of oil equivalent last year, and now totals nearly 4.5 billion barrels of oil equivalent. This represents a 6% increase in reserves year-over-year, and proved reserve replacement of 202%, excluding price-related revisions, with a finding and development cost of just $7.20 per barrel of oil equivalent. Now here's Jeff to discuss operations and the 2024 plan.Jeffrey Leitzell: Thanks, Billy. For our 2024 plan, we forecast a $6.2 billion CapEx program to deliver 3% oil volume growth and 7% total production growth. We expect to see some deflation throughout the year, and our forecasting well cost to be down a low single-digit percentage compared to last year. The primary drivers are a 10% to 15% reduction in tubulars and ancillary service costs. Our plan reflects increased investment in long-term strategic infrastructure in the Delaware Basin and Dorado, which are expected to reduce operating costs and expand margins for the life of these assets. These projects are highlighted on slide seven of our presentation, and Lance will discuss them in greater detail in a moment. I'd like to highlight that our year-over-year direct capital efficiency is improving, which is illustrated in our capital program breakdown on slide six of our earnings presentation.In addition to the operational improvements Billy mentioned, our company-wide average treated lateral length per well is increasing by 10% in 2024. These improved efficiencies and longer laterals have resulted in a decrease in the number of drilling rigs by four, frac fleets by two, and our net wells by 40 compared to last year. The ability to grow our volumes year-over-year for less direct CapEx is a testament to the improved well performance and operational efficiency gains we are realizing across our operating area. When looking at our activity in 2024, EOG remains focused on progressing each one of our plays at a measured pace that allows us to capture and implement valuable learnings while realizing consistent improvement. In our foundational plays, specifically the Delaware Basin and the Eagle Ford, our teams are executing at a high level, and we expect to maintain consistent activity compared to 2023.For Dorado, we remain excited about this 21 TCF resource potential asset and the role it will play in meeting growing global natural gas demand. Throughout last year, our team made good progress on improving operational efficiencies and recoveries. For 2024, we expect to moderate activity compared to 2023. A balanced approach to our investment in Dorado will allow us to maintain consistent operations to advance and improve the play while continuing to remain flexible as we monitor the natural gas market. In the Utica play, our technical and operations teams continue to make great progress. Our latest three-well Xavier package delivered initial 30-day average production of 3,250 barrel of oil equivalent per day with 55% oil and 75% liquids. The Xavier wells were drilled at 800-foot spacing, which is tighter than the Timberwolf package at 1,000-foot spacing.We are pleased that all of our package wells to date have come online at production levels exceeding results from our initial individual test wells. For 2024, we expect to increase our activity level to one full rig, continue to test well spacing, and delineate our acreage across the play. Our next four-well package, named White Rhino, is located in the southern part of the Utica, and we expect these wells to come online in the first half of the year. In the Powder River Basin, our team has continued to improve well productivity in the Mowry Formation. We have observed double-digit increases in oil and BOE productivity per well due to improved targeting and our consistent package development. Moving into 2024, we expect to moderate activity levels, and along with Mowry development, will begin testing packages in the shallower Niobrara Formation in our primary development area.I would like to thank our employees for their hard work and dedication that has positioned the company for another outstanding year. We are excited about executing our 2024 plan. EOG remains focused on running the business for the long-term, generating high returns through disciplined growth, operational execution, and investing in projects that will lower the future cost bases of the company. Now here's Lance to discuss infrastructure.Lance Terveen: Thanks, Jeff. Infrastructure investments have been an essential element of EOG's marketing strategy to maintain transportation flexibility out of a basin, diversification of in-sales markets, and control from wellhead to sales point for flow assurance and to maximize margins. More recently, we have invested in two new strategic infrastructure assets to lower the long-term cost bases of the company and enhance margins. In the Delaware Basin, we are constructing the Janus natural gas processing plant, a 300 million cubic feet per day facility, along with gathering pipelines up to 24 inches in diameter. This new plant and gathering system is expected to provide material savings over the life of our Delaware Basin asset and reliability and flow assurance in the most active oil play in the U.S. We expect Janus will go into service in the first half of next year and deliver cost savings and revenue uplift of about $0.50 per MCF.While we enjoy great relationships with our third-party midstream providers, this new EOG-owned plant adds optionality consistent with our marketing strategy. The Delaware Basin is our largest asset by throughput volumes, and early high utilizations at our Janus plant provides for an anticipated 20% plus rate of return. In our emerging South Texas Dorado play, we're constructing Phase 2 of the Verde 36-inch natural gas pipeline. We have taken a very disciplined approach to build out Verde commensurate with expansion of U.S. Gulf Coast demand. We placed Phase 1, which terminates in Freer, Texas, in service last year. And once Phase 2 is fully in service later this year, the Verde pipeline will extend to Agua Dulce, where we will have a premier position along the Gulf Coast with pipeline connections to reach multiple demand centers, including LNG facilities and additional local and Mexico markets.We continue to see consistent well results in Dorado, and this new strategic investment supports lower future breakevens in a volatile natural gas market. We're extremely pleased with the progress we're making with these strategic infrastructure investments, which we expect will lower the cost basis of the company, provide substantial savings versus other alternatives, and increase operational control. In addition to strategic infrastructure, we continue to be a first mover in marketing our domestic natural gas to diverse indexes. We recently finalized a sale and purchase agreement for 140,000 MMBtu per day of our natural gas index to Brent, and another 40,000 MMBtu per day index to Brent, or a U.S. Gulf Coast gas index, beginning in January of 2027.Adding a Brent-linked agreement with start date certainty further expands EOG's pricing exposure to international natural gas markets and growing LNG demand. EOG is executing on its marketing strategy to diversify our access to customers across multiple end markets for our growing production of reliable and affordable natural gas. Now here's Ezra to wrap up.Ezra Yacob: Thanks, Lance. EOG's business has never been better, and our financial position has never been stronger. Our 2023 operational and financial results were not a one-time event. Rather, the results reflect our value proposition at work. Capital discipline, operational execution, leadership, and sustainability, and a unique culture are at the core of our success and will continue to deliver consistent shareholder value, and it continues in 2024. We are investing across our multi-basin portfolio with a focus on optimizing both near and long-term free cash flow generation and delivering high returns, while staying flexible with respect to supply and demand fundamentals of both oil and natural gas. Our disciplined approach to premium oil investment, commitment to organic exploration, and strategic infrastructure investments drive our low breakevens and through-cycle value creation.And you can see this discipline delivering consistent results across our three-year scenario. Our confidence in EOG's ability to compete across sectors, create value for our shareholders and be a part of the long-term energy solution has never been higher. Thanks for listening. Now we'll go to Q&A.Operator: Thank you. [Operator Instructions] And our first question comes from Leo Mariani of ROTH MKM. Please go ahead.See also Top 20 Languages with the Hardest Grammar for English Speakers and 16 Best Fuel-Efficient Cars for Retirees To Buy in 2024.To continue reading the Q&A session, please click here.

Insider Monkey

EOG Resources, Inc. (NYSE:EOG) Q4 2023 Earnings Call Transcript

https://finance.yahoo.com/news/eog-resources-inc-nyse-eog-142152571.html

9a2df989-f731-3307-a464-9d420e835db3

EOG

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about EOG Resources (EOG) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.EOG Resources currently has an average brokerage recommendation (ABR) of 1.88, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.88 approximates between Strong Buy and Buy.Of the 25 recommendations that derive the current ABR, 14 are Strong Buy, representing 56% of all recommendations.Brokerage Recommendation Trends for EOGBroker Rating Breakdown Chart for EOGCheck price target & stock forecast for EOG Resources here>>>The ABR suggests buying EOG Resources, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.Story continuesABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.Is EOG Worth Investing In?Looking at the earnings estimate revisions for EOG Resources, the Zacks Consensus Estimate for the current year has declined 4.1% over the past month to $11.55.Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #5 (Strong Sell) for EOG Resources. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Therefore, it could be wise to take the Buy-equivalent ABR for EOG Resources with a grain of salt.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 reportEOG Resources, Inc. (EOG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Should You Invest in EOG Resources (EOG) Based on Bullish Wall Street Views?

https://finance.yahoo.com/news/invest-eog-resources-eog-based-143010001.html

be408178-abfe-3d2b-bc22-0673f05b73bf

EOG

EOG Resources (EOG) closed at $118.72 in the latest trading session, marking a +0.74% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.65%. On the other hand, the Dow registered a loss of 0.18%, and the technology-centric Nasdaq decreased by 1.16%.The oil and gas company's shares have seen an increase of 4.24% over the last month, not keeping up with the Oils-Energy sector's gain of 4.75% and outstripping the S&P 500's gain of 3.4%.The upcoming earnings release of EOG Resources will be of great interest to investors. The company's upcoming EPS is projected at $2.72, signifying a 1.12% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.06 billion, showing a 0.31% escalation compared to the year-ago quarter.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.46 per share and a revenue of $24.73 billion, indicating changes of -1.97% and +2.23%, respectively, from the former year.It's also important for investors to be aware of any recent modifications to analyst estimates for EOG Resources. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.86% lower. EOG Resources presently features a Zacks Rank of #5 (Strong Sell).Story continuesWith respect to valuation, EOG Resources is currently being traded at a Forward P/E ratio of 10.29. Its industry sports an average Forward P/E of 9.69, so one might conclude that EOG Resources is trading at a premium comparatively.Meanwhile, EOG's PEG ratio is currently 0.36. 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. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 0.69 at yesterday's closing price.The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 210, placing it within the bottom 17% of over 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.Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportEOG Resources, Inc. (EOG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

EOG Resources (EOG) Increases Despite Market Slip: Here's What You Need to Know

https://finance.yahoo.com/news/eog-resources-eog-increases-despite-230010016.html

a3344e94-c07a-3b38-8035-815b0f33d921

EPAM

Organizations can easily quantify the value of open source and identify areas to fully tap into their open source potential with EPAM's OSPulse™ Enterprise-Level Analytics Open Source DashboardNEWTOWN, Pa., Feb. 22, 2024 /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, today announced the launch of OSPulse™, an enterprise-level analytics dashboard for monitoring open source engagement within an organization. The dashboard offers an intuitive interface with seamless implementation and customizable reporting to easily track a company's open source contributions and impact."EPAM's OSPulse actively evaluates open source engagement throughout the business," said Christopher Howard, Head of the Open Source Program Office at EPAM. "The dashboard provides a holistic view of individual and companywide open source contributions across platforms, solutions and projects to help organizations see the impact of their contributions and make data-driven decisions about strategy, resourcing and employee engagement."Learn more about OSPulseOSPulse provides valuable, easy-to-understand insights for a range of stakeholders, including senior executives, HR, engineers and project managers. The tool collects real-time data about contributors, contribution frequency, repositories, licenses, programming languages, retention and more.Through an enterprise-level overview of open source engagement, OSPulse can help organizations with the following:Identify trends and focus areas. Through an intuitive user experience, data can be filtered and sorted to reveal various activities, projects and skills.Create customizable reports. Exceptional data visualization makes it easy to understand an organization's evolving open source footprint and impact.Make informed decisions. OSPulse provides data-driven insights to evaluate strengths and weaknesses, identify repositories of interest, detect anomalies or shifts within a project and mitigate risks.Recognize, reward and support contributors. By quantifying and visualizing an employee's engagements, successes and interest areas, organizations can identify rising stars and areas for upskilling.Shortlist candidates and prepare for talent acquisition. OSPulse data can help pinpoint needed skills and narrow the search for candidates with relevant experience.Story continuesThe cloud-based dashboard can provide insights at any scale for organizations of all sizes from startups to global enterprises. Through EPAM's engineering expertise, it is possible to seamlessly integrate with HR and industry analytics platforms without the need for manual reporting."As a major contributor to open source, we know that open source results in better software and stronger communities," Howard said. "OSPulse is built with EPAM's engineering DNA and our proven ability to funnel hard-to-define activities into meaningful metrics. This tool provides actionable insights needed to quickly quantify open source contributions, make smart hiring decisions and identify employees' skills."With more than 140,000 commits in the public domain, EPAM is dedicated to furthering open source engagement that inspires technological innovation. In 2019, EPAM built the Open Source Contributor Index (OSCI) to measure and recognize commercial organizations worldwide that contribute to the open source community.For more information about EPAM's OSPulse and to request a demo, visit https://www.epam.com/ospulse.Learn more about how open source can provide a competitive advantage when properly managed: https://www.epam.com/services/engineering/open-source.About EPAM SystemsSince 1993, EPAM Systems, Inc. (NYSE: EPAM) has used its software engineering expertise to become a leading global provider of digital engineering, cloud and AI-enabled transformation services, as well as a leading business and experience consulting partner for global enterprises and ambitious startups. We address our clients' transformation challenges by fusing EPAM Continuum's integrated strategy, experience and technology consulting with our 30+ years of engineering execution to speed our clients' time to market and drive greater value from their innovations and digital investments.We deliver globally, but engage locally with our expert teams of consultants, architects, designers and engineers, making the future real for our clients, our partners and our people around the world.We believe the right solutions are the ones that improve people's lives and fuel competitive advantage for our clients across diverse industries. Our thinking comes to life in the experiences, products and platforms we design and bring to market.Added to the S&P 500 and the Forbes Global 2000 in 2021 and recognized by Glassdoor as a Best Workplace in 2023 and 2024, our multidisciplinary teams serve customers across six continents. We are proud to be among the top 15 companies in Information Technology Services in the Fortune 1000 and to be recognized as a leader in the IDC MarketScapes for Worldwide Experience Build Services, Worldwide Experience Design Services and Worldwide Software Engineering Services as well as a leader in the 2023 Gartner® Magic Quadrant™ for Custom Software Development Services, Worldwide.*Learn more at www.epam.com and follow us on LinkedIn.*Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.Forward-Looking StatementsThis press release includes estimates and statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our business and operations. These statements may include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. Those future events and trends may relate to, among other things, developments relating to the war in Ukraine and escalation of the war in the surrounding region, political and civil unrest or military action in the geographies where we conduct business and operate, difficult conditions in global capital markets, foreign exchange markets and the broader economy, and the effect that these events may have on customer demand and our revenues, operations, access to capital, and profitability. Other factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the risk factors discussed in the Company's most recent Annual Report on Form 10-K and the factors discussed in the Company's Quarterly Reports on Form 10-Q, particularly under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" and other filings with the Securities and Exchange Commission. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made based on information currently available to us. EPAM undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.Organizations can easily quantify the value of open source and identify areas to fully tap into their open source potential with EPAM’s OSPulse™ Enterprise-Level Analytics Open Source Dashboard.EPAM Systems (PRNewsfoto/EPAM Systems, Inc.)CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/epam-launches-ospulse-to-help-companies-measure-and-improve-open-source-engagement-302068026.htmlSOURCE EPAM Systems, Inc.

PR Newswire

EPAM Launches OSPulse™ to Help Companies Measure and Improve Open Source Engagement

https://finance.yahoo.com/news/epam-launches-ospulse-help-companies-150200655.html

850ff147-415c-3668-9744-35f32218e890

EPAM

EPAM Systems Inc showcases robust market presence with significant growth opportunities in AI, VR, and robotics.Despite economic headwinds, EPAM maintains a strong balance sheet and a loyal customer base in North America.Competitive landscape and rapid technological changes present both opportunities and threats for EPAM.EPAM Systems Inc (NYSE:EPAM), a leading global IT services firm, filed its 10-K report on February 22, 2024, providing a comprehensive overview of its financial performance and strategic positioning. Specializing in platform engineering, software development, and consulting services, EPAM has established a dominant presence in North America, which accounts for approximately 60% of its revenues. The company's foray into cutting-edge technologies like artificial intelligence (AI), virtual reality (VR), and robotics positions it at the forefront of innovation. A brief financial overview based on the 10-K filing reveals a company with a solid financial foundation, despite a slight decrease in North America segment revenues by 4.6% from the previous year. With an aggregate market value of approximately $12.6 billion as of June 30, 2023, and a strong emphasis on employee development and engagement, EPAM is poised to leverage its strengths in a competitive market.Warning! GuruFocus has detected 6 Warning Signs with EPAM.Decoding EPAM Systems Inc (EPAM): A Strategic SWOT InsightStrengthsMarket Position and Brand Reputation: EPAM Systems Inc (NYSE:EPAM) stands out with a formidable market position, underscored by its inclusion in the top 15 companies in Information Technology Services in the Fortune 1000. The company's brand reputation is bolstered by recognitions from Forrester and Gartner, as well as accolades such as Newsweek's Top 100 Most Loved Workplaces and Glassdoor's Best Workplace awards. EPAM's brand strength is a testament to its consistent delivery of high-quality services and its ability to attract and retain top talent, as evidenced by its low voluntary attrition rate of 8.6% in 2023. This brand equity translates into customer loyalty and a competitive edge in securing new contracts.Story continuesFinancial Stability and Growth Potential: Despite a slight revenue dip in its North America segment, EPAM maintains a strong balance sheet with a market capitalization of over $12 billion. The company's financial stability is further reinforced by its strategic investments in employee training and development, which totaled 2.6 million learning hours in 2023. These investments not only enhance the company's service offerings but also position EPAM to capitalize on growth opportunities in emerging technologies, ensuring long-term sustainability and profitability.WeaknessesGeographic Concentration Risks: With North America representing a significant portion of EPAM's revenues, the company faces geographic concentration risks. Any economic downturn or regulatory changes in this region could disproportionately impact EPAM's financial performance. The 4.6% revenue decrease in the North America segment during 2023 highlights the potential volatility and the need for EPAM to diversify its revenue streams across different regions to mitigate this risk.Utilization Rate Decline: EPAM's utilization rates of its delivery professionals have shown a downward trend, from 78.7% in 2021 to 74.3% in 2023. This decline suggests a potential inefficiency in resource allocation or a mismatch between the company's workforce capabilities and market demand. Addressing this weakness is crucial for maintaining operational efficiency and profitability.OpportunitiesTechnological Advancements: EPAM is well-positioned to leverage its expertise in AI, VR, and robotics to tap into new market segments and expand its service offerings. The company's focus on innovation and continuous learning, as demonstrated by its substantial investment in employee development, provides a platform for EPAM to stay ahead of technological trends and meet evolving customer needs.Global Expansion: EPAM has the opportunity to reduce its reliance on the North American market by expanding its footprint globally. With its strong brand and proven track record, EPAM can explore growth in emerging markets and other regions, thus diversifying its revenue sources and reducing geographic concentration risks.ThreatsIntense Competition: The IT services industry is highly competitive, with EPAM facing rivals such as Accenture, Cognizant, and Infosys. These competitors have significant resources and global reach, which could challenge EPAM's market share. Staying competitive requires continuous innovation, strategic partnerships, and a keen understanding of customer needs.Rapid Technological Change: The fast pace of technological advancement presents a threat to EPAM, as it necessitates constant adaptation and investment in new skills and services. Failure to keep up with these changes could result in obsolescence and loss of competitiveness.In conclusion, EPAM Systems Inc (NYSE:EPAM) exhibits a strong market position with a focus on innovation and employee development, which are key strengths in the competitive IT services landscape. However, the company must address its weaknesses, such as geographic concentration risks and declining utilization rates, to maintain its financial stability. Opportunities for growth through technological advancements and global expansion are within reach, but EPAM must navigate threats from intense competition and rapid technological change. By leveraging its strengths and addressing its weaknesses, EPAM can capitalize on opportunities and mitigate threats, positioning itself for continued success in the dynamic tech 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 EPAM Systems Inc (EPAM): A Strategic SWOT Insight

https://finance.yahoo.com/news/decoding-epam-systems-inc-epam-050749012.html

88aa4344-cdde-3d34-acfb-58afa8691d61

EPAM

Lawrence Solomon, the Senior Vice President & Chief People Officer of EPAM Systems Inc (NYSE:EPAM), has sold 5,350 shares of the company on February 27, 2024, according to a recent SEC filing. The transaction was executed at an average price of $306 per share, resulting in a total value of $1,637,100.EPAM Systems Inc is a leading global provider of digital platform engineering and software development services. The company assists its customers in transforming their businesses by providing expert software engineering and consultancy services. EPAM Systems Inc operates in various industry verticals, including financial services, travel and consumer, software and hi-tech, and life sciences and healthcare.Warning! GuruFocus has detected 6 Warning Signs with EPAM.Over the past year, Lawrence Solomon has engaged in the sale of 5,350 shares of EPAM Systems Inc and has not made any purchases of the stock. The insider's recent sale contributes to a pattern observed over the last year, where EPAM Systems Inc has seen 0 insider buys and 7 insider sells.Shares of EPAM Systems Inc were trading at $306 on the day of the insider's transaction, giving the company a market capitalization of $17.67 billion. The price-earnings ratio of the company stands at 43.21, which is above the industry median of 27.935 and also exceeds the historical median price-earnings ratio of the company.According to the GuruFocus Value chart, with a current price of $306 and a GF Value of $373.87, EPAM Systems Inc is considered Modestly Undervalued, with a price-to-GF-Value ratio of 0.82. The GF Value is a proprietary intrinsic value estimate from GuruFocus, which is calculated based on historical trading multiples, an adjustment factor for past returns and growth, and future business performance estimates provided by Morningstar analysts.EPAM Systems Inc's SVP & Chief People Officer Lawrence Solomon Sells Company SharesThe insider trend image above reflects the recent insider selling activity at EPAM Systems Inc.EPAM Systems Inc's SVP & Chief People Officer Lawrence Solomon Sells Company SharesThe GF Value image provides a visual representation of EPAM Systems Inc's current valuation in relation to its intrinsic value according to GuruFocus estimates.Story continuesFor more detailed information on insider transactions and the company's financial performance, interested parties can refer to the SEC filing.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

EPAM Systems Inc's SVP & Chief People Officer Lawrence Solomon Sells Company Shares

https://finance.yahoo.com/news/epam-systems-incs-svp-chief-042531329.html

355afd2d-1df1-318a-ba9d-c973018a6ee5

EPAM

Key InsightsUsing the 2 Stage Free Cash Flow to Equity, EPAM Systems fair value estimate is US$294EPAM Systems' US$307 share price indicates it is trading at similar levels as its fair value estimate The US$318 analyst price target for EPAM is 8.0% more than our estimate of fair valueToday we'll do a simple run through of a valuation method used to estimate the attractiveness of EPAM Systems, Inc. (NYSE:EPAM) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. See our latest analysis for EPAM Systems The ModelWe use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:Story continues10-year free cash flow (FCF) estimate2024202520262027202820292030203120322033 Levered FCF ($, Millions) US$611.6mUS$713.5mUS$795.3mUS$856.3mUS$908.1mUS$952.9mUS$992.3mUS$1.03bUS$1.06bUS$1.09bGrowth Rate Estimate SourceAnalyst x6Analyst x6Analyst x4Est @ 7.67%Est @ 6.06%Est @ 4.93%Est @ 4.14%Est @ 3.58%Est @ 3.19%Est @ 2.92% Present Value ($, Millions) Discounted @ 7.3% US$570US$620US$644US$646US$638US$624US$606US$585US$562US$539("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$6.0bWe now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. 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 7.3%.Terminal Value (TV)= FCF2033 × (1 + g) ÷ (r – g) = US$1.1b× (1 + 2.3%) ÷ (7.3%– 2.3%) = US$22bPresent Value of Terminal Value (PVTV)= TV / (1 + r)10= US$22b÷ ( 1 + 7.3%)10= US$11bThe total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$17b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of US$307, the company appears around fair value at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.dcfImportant 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 EPAM Systems 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 7.3%, which is based on a levered beta of 1.091. 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 EPAM SystemsStrengthDebt is not viewed as a risk.WeaknessEarnings declined over the past year.Expensive based on P/E ratio and estimated fair value.OpportunityAnnual earnings are forecast to grow faster than the American market.ThreatRevenue is forecast to grow slower than 20% per year.Looking Ahead:Whilst important, the DCF calculation ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. 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 EPAM Systems, we've put together three important factors you should further research:Risks: Be aware that EPAM Systems is showing 1 warning sign in our investment analysis , you should know about...Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for EPAM'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.

A Look At The Intrinsic Value Of EPAM Systems, Inc. (NYSE:EPAM)

https://finance.yahoo.com/news/look-intrinsic-value-epam-systems-174013113.html

a775df83-c442-39c0-a30e-1518d219412f

EQIX

REDWOOD CITY, Calif., Feb. 26, 2024 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company®, today announced that its executives will attend three upcoming investor conferences:Citi 2024 Global Property Conference on Monday, March 4. Charles Meyers, President and CEO, will present at 10:15 a.m. ET.Morgan Stanley Technology, Media & Telecom Conference on Monday, March 4. Keith Taylor, CFO, will present at 2:10 p.m. PT.KeyBanc Capital Markets Emerging Tech Summit on Tuesday, March 5. Steve Madden, Vice President of Digital Transformation & Segmentation, will present at 10:30 a.m. PT.The presentation will be made available via webcast on the Investor Relations section of the Equinix website at www.equinix.com/investors.About EquinixEquinix (Nasdaq: EQIX) is the world's digital infrastructure company®. Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.Equinix. (PRNewsFoto/Equinix) (PRNewsfoto/Equinix, Inc.) CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/media-alert-equinix-to-speak-at-upcoming-investor-conferences-302069413.htmlSOURCE Equinix, Inc.

PR Newswire

MEDIA ALERT: Equinix to Speak at Upcoming Investor Conferences

https://finance.yahoo.com/news/media-alert-equinix-speak-upcoming-130100384.html

15d42bf6-0053-3204-a286-fbb4547849cc

EQIX

Equinix, Inc. (NASDAQ:EQIX) stands out in the real estate sector with its compelling dividend yield of 2% and unique focus on data center properties, a critical asset in the current digital landscape. This specialization is particularly pertinent given the massive increase in digital data usage, reliance on cloud services, and the growing necessity for robust cybersecurity measures. The sector’s vitality is further highlighted by significant investments from notable figures, such as Nancy Pelosi’s move into Palo Alto Networks (NYSE:PANW), pointing to a sustained demand for secure data handling infrastructures. Positioned at the core of this digital shift, Equinix presents investors with a steady opportunity for growth, backed by the essential nature of its services in today’s tech-driven world.Don't Miss:Investing in real estate just got a whole lot simpler. This Dara Khosrowshahi-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000. Equinix’s role as a Real Estate Investment Trust (REIT) specializing in data centers places it at a crucial junction of real estate and technology, particularly cybersecurity. The increasing emphasis on data protection and cybersecurity, as highlighted by Pelosi’s investment in PANW, not only underscores the sector’s importance but also suggests a promising outlook for data centers. Equinix’s vast network of data centers provides essential infrastructure for companies, including those in the cybersecurity field, making it an indirect beneficiary of the sector’s growth.Investing in Equinix allows for a unique blend of growth and income, a rare combination in the investment world. High-growth sectors like cybersecurity often lack a regular income component, while high-dividend stocks may not always promise significant growth. However, Equinix breaks this mold by offering a stake in the digital infrastructure critical to the tech and cybersecurity industries, ensuring its position in a rapidly expanding market. Moreover, as a REIT, Equinix distributes a significant portion of its taxable income to shareholders as dividends, enhancing its appeal to income-focused investors.Story continuesEquinix’s global footprint, with data centers in key strategic locations worldwide, is vital for mitigating geographical risks and ensuring a diverse tenant base. These facilities are integral to the operations of a wide range of businesses, including burgeoning tech companies and established cybersecurity firms, ensuring a stable demand for Equinix’s properties.The announcement of Equinix’s dividend, coupled with its strategic position in the digital and cybersecurity realms, presents more than just an investment in real estate. It offers a pathway to participate indirectly in the growth of the cybersecurity sector, as highlighted by Pelosi’s investment in PANW. As the digital landscape continues to evolve, driven by advancements in technology and an increased focus on data security, Equinix’s role becomes ever more critical, potentially boosting its dividend prospects and making it an attractive option for investors seeking to diversify their portfolio with exposure to the burgeoning cybersecurity industry.Read Next:Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000. Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Dara Khosrowshahi gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.Image credit: Shutterstock"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!Get the latest stock analysis from Benzinga?PALO ALTO NETWORKS (PANW): Free Stock Analysis ReportEQUINIX (EQIX): Free Stock Analysis ReportThis article Nancy Pelosi's Palo Alto Networks Bet: A Bullish Signal for This Data REIT? originally appeared on Benzinga.com© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Benzinga

Nancy Pelosi's Palo Alto Networks Bet: A Bullish Signal for This Data REIT?

https://finance.yahoo.com/news/nancy-pelosis-palo-alto-networks-184427622.html

c561a701-374d-3784-8ee3-81c3f4cc6943

EQIX

Equinix Inc (NASDAQ:EQIX), a multinational company specializing in internet connection and data centers, recently reported an insider selling event. Chief Accounting Officer Simon Miller sold 382 shares of the company on March 4, 2024, according to a SEC Filing. The transaction was executed at a price of $898 per share, resulting in a total sale amount of $343,116.Over the past year, the insider has sold a total of 2,673 shares of Equinix Inc and has not made any purchases of the stock. This latest transaction continues a trend of insider sales at the company, with a total of 52 insider sells and no insider buys occurring over the same period.Equinix Inc (EQIX) Chief Accounting Officer Simon Miller Sells Company SharesThe market capitalization of Equinix Inc stands at $84.738 billion, reflecting the company's significant presence in the data center and internet connectivity sector. The price-earnings ratio of the company is 86.86, which is above the industry median of 16.91. This ratio is also below the historical median price-earnings ratio for Equinix Inc.In terms of valuation, Equinix Inc's shares were trading at $898 on the day of the insider's sale. The stock's price-to-GF-Value ratio is 1.08, indicating that it is Fairly Valued when compared to the GF Value of $833.38. The GF Value is a proprietary intrinsic value estimate from GuruFocus, which takes into account historical trading multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.Equinix Inc (EQIX) Chief Accounting Officer Simon Miller Sells Company SharesThe insider's recent sale may attract the attention of investors who track insider behaviors as an indicator of company performance and future stock movements. However, it is important to consider a wide range of factors when evaluating the potential impact of insider transactions on stock prices.Warning! GuruFocus has detected 9 Warning Signs with EQIX.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

Equinix Inc (EQIX) Chief Accounting Officer Simon Miller Sells Company Shares

https://finance.yahoo.com/news/equinix-inc-eqix-chief-accounting-220037922.html

9f0e35c0-9cf5-3248-9884-f3c7056842db

EQIX

Equinix Inc (NASDAQ:EQIX), a global provider of data center services, including colocation, interconnection solutions, and managed IT infrastructure, has reported an insider sell according to a recent SEC filing. Chief Sales Officer Michael Campbell sold 528 shares of the company on March 7, 2024.The transaction was executed at a price of $903 per share, resulting in a total sale amount of $476,664. Following this transaction, Michael Campbell's total sales over the past year amount to 6,578 shares, with no recorded purchases in the same period.Insider Sell: Chief Sales Officer Michael Campbell Sells Shares of Equinix Inc (EQIX)The insider transaction history for Equinix Inc indicates a pattern of insider selling, with 55 insider sells and no insider buys over the past year.Equinix Inc's stock market capitalization stands at $86.114 billion, reflecting the company's significant presence in the data center and IT infrastructure industry. The price-earnings ratio of the company is 88.27, which is above the industry median of 16.88. However, it is below the company's historical median price-earnings ratio.Insider Sell: Chief Sales Officer Michael Campbell Sells Shares of Equinix Inc (EQIX)The stock's current trading price of $903, in conjunction with a GuruFocus Value (GF Value) of $833.91, gives Equinix Inc a price-to-GF-Value ratio of 1.08. This suggests that the stock is Fairly Valued based on its GF Value. The GF Value is calculated considering historical trading multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.For investors monitoring insider activity, the recent sell by Chief Sales Officer Michael Campbell may be of interest, although it is essential to consider the broader context of the company's valuation and market performance when evaluating the significance of insider transactions.Warning! GuruFocus has detected 10 Warning Signs with EQIX.This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.This article first appeared on GuruFocus.

GuruFocus.com

Insider Sell: Chief Sales Officer Michael Campbell Sells Shares of Equinix Inc (EQIX)

https://finance.yahoo.com/news/insider-sell-chief-sales-officer-220031820.html

10c3ddc3-b239-37a3-af91-04a93d8ea163

EQR

Equity Residential's strategic focus on high-demand urban markets positions it for long-term growth despite economic uncertainties.Investment in sustainable practices and technology may enhance operational efficiency and attract environmentally conscious tenants.Geographic concentration and market competition present ongoing challenges for Equity Residential.Corporate responsibility and technology initiatives reflect a forward-thinking approach but carry execution risks.Warning! GuruFocus has detected 6 Warning Signs with EQR.On February 15, 2024, Equity Residential (NYSE:EQR) filed its 10-K report, revealing a comprehensive overview of the company's financial health and strategic direction. Equity Residential, a leading apartment real estate investment trust (REIT), owns a portfolio of 304 apartment communities with approximately 80,000 units and is actively developing additional properties. The company's focus on owning high-quality properties in strategic urban and suburban submarkets across key cities has positioned it for sustained growth. Despite broader economic concerns, Equity Residential's financial tables indicate a robust demand for its apartment communities, underpinned by high single-family home ownership costs and positive household formation trends. The company's commitment to sustainability, diversity, and inclusion further strengthens its market position, aligning with evolving stakeholder values.Decoding Equity Residential (EQR): A Strategic SWOT InsightStrengthsMarket Position and Quality Portfolio: Equity Residential boasts a strong market presence, owning large, high-quality properties in urban and suburban submarkets of major cities. This strategic positioning allows the company to capitalize on the high costs of single-family home ownership and the strong demand for multifamily housing. The company's focus on affluent renters in high-earning sectors reduces the risk during economic downturns and enables more robust rent growth in favorable conditions.Story continuesSustainability and Corporate Responsibility: Equity Residential's commitment to sustainability and corporate responsibility is a significant strength. The company's sustainability program aims to manage environmental impacts and climate-related risks through optimized capital investments and technologies. Initiatives like issuing green bonds and setting science-based targets to reduce greenhouse gas emissions underscore the company's dedication to environmental stewardship and may enhance its appeal to socially conscious investors and tenants.WeaknessesGeographic Concentration: While the company's focus on established coastal markets is a strength, it also presents a weakness due to the potential for localized economic or regulatory impacts. If adverse conditions arise in these concentrated markets, the effect on Equity Residential's operations could be more pronounced than if the portfolio were more geographically diverse.Competition and Technological Advancements: Equity Residential faces stiff competition from other housing options, which could affect its ability to attract and retain residents. Additionally, the need to keep up with technological advancements and resident demands for modern amenities requires ongoing investment, posing a challenge to maintaining competitive edge and operational efficiency.OpportunitiesExpansion into New Markets: Equity Residential has the opportunity to expand its portfolio into new markets, potentially reducing the risks associated with geographic concentration. By strategically targeting markets with favorable multifamily property conditions, the company can diversify its holdings and tap into new sources of demand.Demographic Trends and Housing Demand: Positive household formation trends, particularly among younger generations, present an opportunity for Equity Residential to cater to the needs of these demographic segments. The company's focus on locations with convenient access to transportation, employment, and amenities aligns well with the preferences of Millennials and Generation Z, who are more likely to rent.ThreatsEconomic Uncertainties and Market Volatility: Economic downturns and market volatility can adversely affect the real estate industry, impacting rental income and property values. Equity Residential's short-term lease structure exposes it to the effects of declining market rents more quickly, potentially making its results of operations and cash flows more volatile.Regulatory Risks: The company operates in markets that may be subject to rent control or other regulatory changes, which could limit its ability to increase rents and affect profitability. Additionally, increased focus on corporate responsibility and sustainability could impose additional costs and expose Equity Residential to new risks if it fails to meet evolving standards.In conclusion, Equity Residential (NYSE:EQR) demonstrates a robust strategic position with its high-quality portfolio and focus on dynamic urban markets. Its commitment to sustainability and corporate responsibility further enhances its appeal. However, the company must navigate the challenges of geographic concentration, competition, and regulatory risks. By leveraging its strengths and addressing its weaknesses, Equity Residential can capitalize on market opportunities and mitigate potential threats, positioning itself for continued success in the multifamily real estate sector.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 Equity Residential (EQR): A Strategic SWOT Insight

https://finance.yahoo.com/news/decoding-equity-residential-eqr-strategic-050258688.html

8b7a2a9b-fb1a-3d60-875a-1797e5573eab

EQR

In this article, we will be looking at the 15 poorest cities in the US that are actually growing fast. You can skip our detailed analysis and head directly to the 5 Poorest Cities in the US that are Actually Growing Fast.Poverty in the US: An AnalysisThe United States is on the verge of being replaced by China as the largest economy in the world. China is expected to be the largest economy in the world by 2040 with a forecasted real GDP of $34.10 trillion. The United States will drop to the second spot with a forecasted real GDP of $32 trillion. Though economic power is transferring from the US to China, the land of opportunities will remain an important player in the global economy. In September 2023, the US Census Bureau posted a poverty report in which it highlighted that the official poverty rate of the US in 2022 was 11.5%, representing approximately 37.9 million people in poverty. The poverty rate in the US was not much different from 2021, which was 11.6% that year. The supplemental poverty measure (SPM) soared to 12.4% in 2022, a rise of 4.6% from 2021. The increase in the SPM rate was the first since 2010. The official poverty rate remains higher than in the pre-pandemic era when it was 10.5% in 2019. Between 2021 and 2022, most of the demographic groups in the US did not experience significant changes in their poverty rates. Black individuals saw a decline in their official poverty rate between 2021 and 2022, dropping from 19.5% to 17.1%. While, the White and non-Hispanic White people both saw a 0.5% increase in their official poverty rate, jumping from 10% to 10.5% and 8.1% to 8.6% between 2021 and 2022, respectively. Overall, the US has a diverse economy with various demographics and income brackets. According to the World Inequality Database, almost 20% of the US national income goes to the richest 1% of the population and nearly 50% of national income goes to the top 10%. The US states where the poverty rates are the lowest are a mix of the country’s demographics including the Northeast region and some from the Midwest and West. New Hampshire is the state with the lowest poverty rate of 7.2%, as per the Census Bureau’s 2022 American Community Survey. New Hampshire’s poverty rate has gone down by 28% from 10% to 7.2% in the last decade. Utah makes it to the second spot with the lowest poverty rate, with only 8.2% of its people living below the poverty line. The US states with the highest poverty rates are mostly Southern states, and some exceptions such as New York and New Mexico. Mississippi has the worst poverty level, where 19.1% or almost one-fifth of the population were living below the poverty line in 2022. The good thing is that Mississippi has experienced an improvement, over its 21.5% poverty rate in 2017.Story continuesThe poorest cities in the US that are actually growing fast may allow you to get into the real estate market when the market is really cheap. For instance, Fort Worth, Texas, is a buyer’s market at the moment, according to the real estate listing platform, Realtor. The median listing home price in Fort Worth was $342,000 in January, falling by 2.5% year-over-year. This means that the supply of homes is greater than the demand for homes. Similarly, the real estate market in Phoenix, Arizona, is expected to grow by 3.2% by September 2024, as per Norada Real Estate Investments. The 2024 housing market seems more optimistic following the Fed’s recent meetings in December and January. Mortgage rates have gone down from 8% to 6.6%. According to CoreLogic, 2024 began with more new listings compared to 2023, showing potential demand for homebuyers as they step off the sidelines. The increase in buyer demand for homes will continue to outweigh the available supply, leading to an increase in home prices. CoreLogic’s Home Price Index (HPI) forecast expects home prices to increase by 3% on average in 2024.Real Estate Players in the USEquity Residential (NYSE:EQR), AvalonBay Communities, Inc. (NYSE:AVB), and Invitation Homes Inc. (NYSE:INVH) are some of the leading residential REITs in the US. Equity Residential (NYSE:EQR) is one of the leading real estate companies that invests in apartments and housing facilities. On January 30, Equity Residential (NYSE:EQR) announced the fourth quarter results for 2023. The company posted earnings per share of $0.82, beating consensus estimates by $0.39. Equity Residential (NYSE:EQR) reported a revenue of $727.50 million, surpassing estimates by $2.62 million. Here are some of the comments from the Q4 2023 earnings call:“On the revenue side, the momentum in December was a little better than we thought as sequentially we grew revenue in the fourth quarter by holding onto more occupancy, while maintaining positive blended rate growth.This set us up for a good start in 2024. Demand was solid across our markets and consistent with seasonal expectations. We finished the year with same store physical occupancy at 96% as we focused on building up occupancy in the slower part of our leasing cycle. Today, the portfolio is above 96%. As expected, we saw new lease rates go negative in the quarter as they typically do. Meanwhile, renewal rates for the quarter came in at 5.1%, which was slightly above our expectations. Together, this resulted in a fourth quarter blended rate growth of positive 80 basis points. These healthy fundamentals led to outstanding revenue growth in our East Coast markets and good growth in Southern California. As has been the case all year, the East Coast markets outperform the West Coast and by and large will likely continue to do so in 2024.”Invitation Homes Inc. (NYSE:INVH) is one of the largest owners of single-family rental homes in the US. On January 10, Invitation Homes Inc. (NYSE:INVH) announced that it would begin offering professional property and asset management services to portfolio owners of single-family homes for lease. Through an inaugural agreement with a third-party portfolio owner, Invitation Homes Inc. (NYSE:INVH) will bring more than 14,000 single-family homes onto the company’s industry-leading platform. AvalonBay Communities, Inc. (NYSE:AVB) is a top REIT that invests in the housing sector. On January 31, AvalonBay Communities, Inc. (NYSE:AVB) announced its fourth quarter results for 2023. The REIT posted earnings per share of $1.70, surpassing the estimates by $0.37. The company's revenue came in at $702.70 million, beating consensus by $2.54 million. AvalonBay Communities, Inc. (NYSE:AVB) was able to make profitable investments in 2023 and entered with the same momentum in 2024. Here are some of the comments from the Q4 2023 earnings call:“We also started $800 million of profitable new development during the year, including $300 million of starts in the fourth quarter at an initial projected yield of 6.7%. We also continue to build our structured investment business this year, in which we provide preferred equity or mezzanine loans to third parties for new multifamily construction. We're well positioned to underwrite this business given our development and construction expertise and our live proprietary data and we're fortunate to be building this book of business in today's environment, reflecting today's rates and asset values.”These were a few of the biggest residential real estate companies in the US. Now, let’s take a look at the poorest cities in the US that are actually growing fast.15 Poorest Cities in the US that Are Actually Growing Fast15 Poorest Cities in the US that Are Actually Growing FastOur MethodologyFirst, we shortlisted the cities with a minimum population of 500,000. Then we narrowed down our list of the cities with positive population growth between 2020 and 2022. We did not consider cities with a median household income greater than $90,000 and a poverty rate of less than 10%. The cities are ranked based on their percentage change in population between April 1, 2020, and July 1, 2022, in ascending order. All the data including population, median household income, and poverty rate was gathered from the US Census Bureau's database. 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.Note: There were cities with low median household incomes and greater poverty rates, but we did not consider them due to their population decline between April 1, 2020, and July 1, 2022.15 Poorest Cities in the US that Are Actually Growing Fast15. Houston, TexasChange in Population in 2022: 0.01%Population in 2020: 2,301,572Population in 2022: 2,302,878Poverty Rate in 2022: 19.60%Median Household Income in 2022: $60,440Houston, Texas, is one of the poorest cities in the US that are actually growing fast. Houston's population increased by 0.01% between 2020 and 2022. 14. Columbus, OhioChange in Population in 2022: 0.23%Population in 2020: 905,839Population in 2022: 907,971Poverty Rate in 2022: 18.10%Median Household Income in 2022: $62,994Columbus, Ohio, has a poverty rate of 18.10%, as of 2022. Columbus' population increased by 0.23% between 2020 and 2022. 13. Kansas, MissouriChange in Population in 2022: 0.30% Population in 2020: 507,971Population in 2022: 509,297Poverty Rate in 2022: 14.90%Median Household Income in 2022: $65,256Kansas, Missouri, witnessed a population growth rate of 0.30% between 2020 and 2022. Kansas has a poverty rate of 14.90% and a median household income of $65,256. 12. Sacramento, CaliforniaChange in Population in 2022: 0.60%Population in 2020: 524,924Population in 2022: 528,001Poverty Rate in 2022: 14.80%Median Household Income in 2022: $78,954Sacramento, California, has a poverty rate of 14.80%, as of 2022. Sacramento's population increased by 0.60% between 2020 and 2022. The city is placed 12th among the poorest cities in the US that are actually growing fast. 11. Fresno, CaliforniaChange in Population in 2022: 0.61%Population in 2020: 542,252Population in 2022: 545,567Poverty Rate in 2022: 22.10%Median Household Income in 2022: $63,001Fresno, California, had a population growth rate of 0.61% between 2020 and 2022. Fresno has a poverty rate of 22.10% and a median household income of $63,001. 10. Tucson, ArizonaChange in Population in 2022: 0.72%Population in 2020: 542,656Population in 2022: 546,574Poverty Rate in 2022: 19.60%Median Household Income in 2022: $52,049Tucson, Arizona, has a poverty rate of 19.60%, as of 2022. The population of Tucson experienced a growth of 0.72% between 2020 and 2022. The city is ranked 10th among the poorest cities in the US that are actually growing fast. 9. Austin, TexasChange in Population in 2022: 1.30%Population in 2020: 961,900Population in 2022: 974,447Poverty Rate in 2022: 12.40%Median Household Income in 2022: $86,556Austin, Texas, has a median income of $86,556 and a poverty rate of 12.40%, as of 2022. With a population growth of 1.30% between 2020 and 2022, Austin is one of the poorest cities in the US that are actually growing fast. 8. Mesa, ArizonaChange in Population in 2022: 1.63%Population in 2020: 504,300Population in 2022: 512,498Poverty Rate in 2022: 11.20%Median Household Income in 2022: $73,766Mesa, Arizona, had a population growth rate of 1.63% between 2020 and 2022. Mesa has a poverty rate of 11.20% and a median household income of $73,776.7. Las Vegas, NevadaChange in Population in 2022: 1.77%Population in 2020: 644,866Population in 2022: 656,274Poverty Rate in 2022: 14.70%Median Household Income in 2022: $66,356Las Vegas, Nevada, has a poverty rate of 14.70%, as of 2022. The population of Las Vegas grew by 1.77% between 2020 and 2022. The city is placed seventh among the poorest cities in the US that are actually growing fast. 6. Oklahoma City, OklahomaChange in Population in 2022: 2.01%Population in 2020: 681,084Population in 2022: 694,800Poverty Rate in 2022: 15.00%Median Household Income in 2022: $64,251Oklahoma City, Oklahoma has a poverty rate of 15% and a median household income of $64,251. Oklahoma City witnessed a population growth rate of 2.01% between 2020 and 2022. Click to continue reading and see the 5 Poorest Cities in the US that are Actually Growing Fast. Suggested Articles:35 Top Paying Jobs in America30 Fastest Growing Jobs In America66 Countries with a Double Tax Treaty with the USADisclosure: None. 15 Poorest Cities in the US that are Actually Growing Fast is originally published on Insider Monkey.

Insider Monkey

15 Poorest Cities in the US that are Actually Growing Fast

https://finance.yahoo.com/news/15-poorest-cities-us-actually-182345559.html

3b3aa994-c029-3fe7-87af-59775fc56da8

EQR

When investors try to project their investment horizons, a long-term deal may only be up to five years; anything longer than that becomes wishful thinking to expect to know what could happen in such a broad period. Today, you will learn why there are hacks to figure out the best investments to hold in the next decade that are poised to keep rising and give you dependable dividend income growth. Today, you will focus on the three areas indispensable to the everyday consumer, sectors, and businesses that are likely never going away, creating the perfect environment for financials to keep expanding and dividend payments to keep growing dependably for the foreseeable future. It is this stability and dependable growth that comes to filter out the selection for the following stocks in this list. Here are three dividend stocks you won’t want to miss.Dividend Stocks: Equity Residential (EQR)An image of a stock chart in the background of a phone cropped to show the Equity Residential (EQR) logoSource: IgorGolovniov / Shutterstock.comPeople will always need a place to live, right? As long as the need for residential housing in the United States exists, it is stocks like Equity Residential (NYSE:EQR) that will come out as sure winners and dependable compounders in the next decade; here’s why.Part of the world of REITs (real estate investment trusts), these stocks see their valuations go higher as the underlying value of the properties they own also goes up, which means that Equity Residential is exposed to the unstoppable trend of population growth which will need to see a similar rise in residential properties to house them.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNot only can you expect the value of this REIT to keep going higher, but you can also count on the dividend payouts that are – by law – financed 90% by the collected rental income.This is why the stock pays a dividend yield of 4.4% today to beat inflation, a payout that has been steady since 2009, surviving the harshest economic environments seen in the COVID-19 pandemic.Story continuesColgate-Palmolive (CL)Colgate toothpaste and mouthwash in a cup with a toothbrushSource: monticello / Shutterstock.comThis unbeatable stock will bring you dependable upside and dividend income forever, or at least for the foreseeable decade. Colgate-Palmolive (NYSE:CL) is a consumer staple stock that never goes out of fashion. Whether unemployment is 3.0% or 7.0%, people still need to brush their teeth and manage personal hygiene.Backing this market penetration and brand loyalty comes the company’s gross margin rates, which have been steadily above 55.0% for the past few years. This high margin allows the company to reinvest aggressively into further growth and product refinement, expenditures that are sure to keep paying off.Its ROIC (return on invested capital) of over 25.0% implies the company is almost indestructible and well-managed in a way to keep delivering price appreciation on top of a dependable – and affordable – dividend. Speaking of which, today, you could lock in a rate of 2.3% on top of some additional upside.Analysts are projecting earnings per share growth of nearly 9.0% for the next twelve months, which may only sound like a little once you realize the size of this behemoth. Almost double-digit growth for a $71 billion company is definitely something to write home about.Nestle (NSRGY)A close-up of the Nestle (NSRGY) logo near a corporate office entrance.Source: Jer123 / Shutterstock.comMoving back into the population growth example, as long as babies are born, baby food will be a key necessity for parents to pick off the shelf at the supermarket. This is why Nestle (OTCMKTS:NSRGY) is the perfect stock to keep expecting steady demand with dependable financial growth, which results in a solid dividend.With a price target of $124.0 a share, analysts believe there is a net 15.0% upside to be had in this stock from where it trades today. You can rest assured that in the business’ gross margin rate of over 45.0%, the compounding effects are sure to stick around.This is part of the brand’s makeup, allowing it to pay you – the potential shareholder – a dividend yield of 2.6%, which has been steady since 2009. Chances are it isn’t going anywhere. A multi-decade track record of brand penetration and steadily rising demand gives you a clear projection of dependable growth in the next decade, making this one of those dividend stocks to buy.As of this writing, Gabriel Osorio-Mazzilli did not hold (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.Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.More From InvestorPlaceChatGPT IPO Could Shock the World, Make This Move Before the Announcement“America’s Top Trader” Issues A.I. Code Red: Act Now or Miss OutIt doesn’t matter if you have $500 or $5 million. Do this now.The post The Steady Eddies: 3 Dividend Stocks for a Decade of Dependable Growth appeared first on InvestorPlace.

InvestorPlace

The Steady Eddies: 3 Dividend Stocks for a Decade of Dependable Growth

https://finance.yahoo.com/news/steady-eddies-3-dividend-stocks-121800072.html

37a0cf16-eb29-35c1-b7c9-7fe3181cfed4

EQR

CHICAGO, February 29, 2024--(BUSINESS WIRE)--Equity Residential (NYSE: EQR) today announced that members of the Company’s senior management team, including the Company’s President and CEO, Mark J. Parrell, will participate in a roundtable presentation at the 2024 Citi Global Property CEO Conference on Monday, March 4 at 2:10 p.m. ET. The event will be web cast live. A link to the web cast will be available in the Presentations section of the Investor section of the Company’s website at www.equityapartments.com. The Company has posted an updated Investor Presentation in connection with these meetings, which is also available in the Investor section of the Company’s website.About Equity ResidentialEquity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 302 properties consisting of 80,191 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin. For more information on Equity Residential, please visit our website at www.equityapartments.comView source version on businesswire.com: https://www.businesswire.com/news/home/20240229266803/en/ContactsMarty McKenna(312) 928-1901

Business Wire

Equity Residential to Participate in 2024 Citi Global Property CEO Conference

https://finance.yahoo.com/news/equity-residential-participate-2024-citi-211500865.html

f57c96f7-761a-3256-a81d-8c980f61c9fb

EQT

EQT Corporation (NYSE:EQT) Q4 2023 Earnings Call Transcript February 14, 2024EQT 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: Hello and thank you for standing by. My name is Regina and I will be your conference operator today. At this time, I would like to welcome everyone to the EQT Fourth Quarter 2023 Quarterly Results Conference Call. [Operator Instructions] I would now like to turn the conference over to Cameron Horwitz, Managing Director of Investor Relations and Strategy. Please go ahead.Cameron Horwitz: Good morning and thank you for joining our fourth quarter and year end 2023 earnings results conference call. With me today are Toby Rice, President and Chief Executive Officer and Jeremy Knop, Chief Financial Officer. In a moment, Toby and Jeremy will present their prepared remarks with a question-and-answer session to follow. An updated investor presentation has been posted to the Investor Relations portion of our website and we will reference certain slides during today’s discussion. A replay of today’s call will be available on our website beginning this evening. I’d like to remind you that today’s call may contain forward-looking statements. Actual results and future events could materially differ from these forward-looking statements because of the factors described in yesterday’s earnings release, in our investor presentation, the Risk Factors section of our Form 10-K and in subsequent filings we make with the SEC.We do not undertake any duty to update any forward-looking statements. Today’s call also contains certain non-GAAP financial measures. Please refer to our most recent earnings release and investor presentation for important disclosures regarding such measures, including reconciliations to the most comparable GAAP financial measures. With that, I will turn the call over to Toby.Toby Rice: Thanks, Cam and good morning everyone. Coming into 2023, I sat down with our leadership team and we set our overarching corporate mission and goal for the year with two simple words: peak performance. I wanted our fourth year since the takeover of EQT to be our best one yet and the crew certainly came through in delivering on that mission. I want to take a few moments to briefly reflect on the incredible accomplishments from this organization that we achieved over the course of 2023. On the operations front, we set multiple drilling world records and achieved our highest completion efficiency pace ever, with 2023 monthly pumping hours per crew up more than 15% year-over-year. Importantly, this incredible operational pace came amid a 22% improvement in our 2023 EHS intensity, which was even better than our 15% target and underscores our unwavering commitment to safety at EQT.Story continuesOn the financial front, despite a challenging natural gas price environment, EQT generated nearly $880 million of free cash flow in 2023, retired north of $1.1 billion of debt and raised our base dividend by 5%. This financial performance is a clear demonstration of our advantaged position at the low end of the North American natural gas cost curve and highlights that EQT is poised to thrive regardless of where we are in the commodity cycle. On the M&A front, we closed on the strategic acquisition of Tug Hill and XcL Midstream and integrated the assets at a record pace. Our team has wasted no time driving material operational performance improvement on the assets, with the latest EQT operated Marcellus drilling costs coming in more than $200 per foot or nearly 55% lower than Tug Hill operated wells.This recent performance suggests the potential for even more upside than the $150 per foot of well cost savings we discussed last quarter, which as a reminder, is additive to $80 million of largely infrastructure-related synergies we originally announced with the deal. On the marketing front, EQT’s low-cost peer leading inventory depth and environmental attributes enabled us to sign the largest long-term physical supply deals ever executed in the North American natural gas market with some of the country’s leading utilities. With much stronger than expected power generation growth in many regions of the United States and natural gas providing the ideal low-carbon dispatchable complement to renewable generation, we expect gas-fired power demand will surprise the upside over the coming decade and EQT’s unique ability to meet this demand should result in additional margin capture opportunities moving forward.We also made material progress executing on our differentiated LNG strategy, leveraging our significant Gulf Coast firm transportation capacity to sign HOAs covering 2.5 million tons per annum of LNG tolling capacity or roughly 5% of our total natural gas production. Our more integrated approach to LNG exposure compared with peers gives us direct connectivity to end users of our gas globally and we have seen strong interest from prospective international buyers. While there has been some noise around LNG permitting of late, the outcome of COP28 demonstrates the world has spoken deeming natural gas as critical in facilitating the energy transition while ensuring energy security. It is abundantly clear that nations around the world currently powered by coal desperately want and need greater access to natural gas and ultimately political posturing will reconcile with this reality if we, as a society, are truly intent on achieving global climate goals.On the ESG front, we announced a first of its kind public-private forestry partnership with the state of West Virginia, which will create one of the highest quality most verifiable nature-based carbon sequestration projects anywhere around the globe. We have already seen solid momentum on this project to-date and we are incrementally confident in EQT’s ability to become the first energy company of meaningful scale in the world to achieve net zero Scope 1 and 2 emissions. This impressive list of achievements is a showcase of what is possible when you combine a world class asset base with an industry leading digitally enabled team underpinned by a culture of excellence and teamwork. Turning to our reserve report. EQT’s 2023 proved reserves totaled 27.6 Tcfe, which was up 2.6 Tcfe relative to 2022, largely driven by additions from the Tug Hill acquisition.Importantly, even with the SEC price deck dropping from over $6 per million Btu at year end 2022 to $2.64 at year end 2023, EQT’s proved reserves prior to the impact of Tug Hill were slightly higher year-over-year, underscoring the economic resiliency of our world class low-cost Appalachian reserve base. Within our proved undeveloped reserve category of roughly 8 Tcfe, we have just 417 gross locations booked or roughly 3 years of development, representing only 10% of our derisked inventory of nearly 4,000 gross locations. It’s also worth highlighting that we estimate an additional 2 Tcfe of reserves not captured in our bookings associated with our non-operated position in Northeast Pennsylvania as we book limited PUDs on this asset, given we only have timing visibility out 3 to 6 months.Additionally, we’ve taken a conservative stance with limited reserve bookings for Tug Hill’s go-forward Utica inventory in West Virginia, which should be a source of reserve upside over time. Using the year end 2023 SEC price deck of just $2.64 per million BTU, the PV-10 of our proved reserves is approximately $12 billion. Assuming recent strip pricing, this value jumps to almost $23 billion. And again, this ascribes credit to just 3 years or 10% of our remaining inventory. I’d also note our reserve valuation is calculated prior to the impact of our firm transportation portfolio to the value accruing to EQT for marketing arrangements like the MVP firm sales contracts we announced last quarter are incremental to these PV-10 values. We see the consistency and economic resiliency reflected in our reserve report as an important channel check for investors that highlights EQT has among the highest quality, lowest cost natural gas asset base anywhere in the world.Looking to 2024, we are initiating 2024 production guidance of 2,200 to 2,300 Bcfe, which includes some flexibility to curtail volumes should natural gas prices remain weak. Our program contemplates running 2 to 3 rigs, 3 to 4 frac crews and turning in line 110 to 140 net wells. As shown on Slide 6 of our investor deck, this activity level juxtaposed against our large production base underscores the incredible capital efficiency and quality of our assets, as EQT is generating the most gross-operated production per rig of any natural gas operator in the United States by a wide margin. Looking at our spending profile, we are setting a 2024 maintenance capital budget of $1.95 billion to $2.05 billion, including maintenance, land and infrastructure spending.We have also tactically allocated $200 million to $300 million for strategic growth projects across water infrastructure, gas gathering and land that are opportunistic in nature and highly symbiotic with our upstream operations. Jeremy will give more details later on, but these projects generate the best risk-adjusted returns in our portfolio, derisk our upstream execution, allow us to replenish inventory at extremely attractive costs and facilitate the compounding of capital for shareholder value creation. At the midpoint of our maintenance capital and production guidance ranges, our implied 2024 maintenance capital efficiency equates to $0.89 per Mcfe and our unhedged maintenance NYMEX free cash flow breakeven is $2.50 to $2.60 per million Btu.With contractual gathering rate reductions, the shallowing of our base decline, improving basis from the firm sales arrangements we announced last quarter and reductions in interest expense, our all-in NYMEX free cash flow breakeven price should be on a glide path down towards $2.30 per million Btu over the next several years. We believe this economic profile is in a class of its own relative to the rest of the industry, where we expect to see upward pressure on cost structure over this period associated with operators shifting to lower quality inventory in both the Haynesville and parts of Appalachia. This differentiation is highlighted by the fact that we project EQT will generate cumulative free cash flow of almost $9 billion over the next 5 years at a natural gas strip that averages approximately $3.40 per million BTU over this period.This gas price is roughly equivalent to the fully loaded corporate marginal cost of supply in the U.S. required to simply breakeven from a free cash flow perspective, let alone to generate returns for shareholders. Said another way, higher cost natural gas producers will at best generate no shareholder value at the current strip over the next 5 years, while EQT is set to generate more than 40% of our enterprise value and free cash flow over the same timeframe. This stark contrast underscores why cost structure is our North Star at EQT and why we strive not to be the biggest, but to be the highest quality, most resilient company that can generate durable free cash flow both in up cycles and in down cycles. This is the essence of sustainability and value creation in a commodity business.And we believe our shareholders are uniquely positioned to reap the rewards of EQT’s unrivaled combination of scale, peer-leading low-cost inventory depths and best-in-class emissions profile. I will now turn the call over to Jeremy.Jeremy Knop: Thanks, Toby and good morning, everyone. I’ll start by summarizing our fourth quarter results, which highlight our operational momentum as we closed out the year. Sales volumes of 564 Bcfe was toward the high end of our guidance range, reflecting continued best-in-class execution from our drilling and completion teams, along with strong well performance. Our per unit adjusted operating revenues were $2.75 per Mcfe, and our total per unit operating costs were $1.27 per Mcfe, which were at the low end of our guidance range driven by lower-than-expected LOE and G&A expenses. It’s worth noting that we outperformed LOE expectations every quarter in 2023 with total absolute LOE coming in $40 million below our internal forecast, driven largely by more efficient water handling facilitated by the investments we’ve made in water infrastructure.Capital expenditures were $539 million, which were in the lower half of our guidance range, reflecting the operational efficiency gains Toby mentioned previously. Turning to the balance sheet. Last month, we completed several transactions that eliminated debt, reduced interest expense, simplified our balance sheet and established an important 10-year pricing reference point, which is the longest dated bond outstanding of our natural gas peers and underscores the market’s confidence in our inventory duration. First, we retired all outstanding convertible senior notes due in 2026, which eliminated more than $400 million of absolute debt. Recall, our fully diluted share count already included the shares associated with our convertible notes.A storage facility for natural gas, showing the vast reserves of this abundant energy source.We simultaneously liquidated the capped call that we had purchased in conjunction with the issuance of the convertible notes for cash proceeds of $93 million. Pro forma the convertible note retirement, our total debt outstanding is currently $5.5 billion, which equates to a 1.6x leverage when annualizing fourth quarter adjusted EBITDA. Following the convertible note settlement, we executed a highly successful $750 million 10-year bond offering last month, the proceeds of which we used to pay off 60% of the term loan that we borrowed in conjunction with the closing of the Tug Hill and XcL Midstream acquisitions. We saw extremely strong demand from the credit market with a peak order book of almost $6 billion and the bonds pricing at a tight 1.65% spread to comparable U.S. treasury rates, which is similar to credit spreads of many of the highest quality large-cap companies in the broader energy sector.In conjunction with the bond offering, we also extended the maturity of our remaining term loan from mid-2025 to mid-2026, providing ample flexibility for maturity management moving forward. In terms of capital allocation, we will continue to prioritize debt pay-down until we achieve our $3.5 billion gross debt target. Our capital allocation philosophy is underpinned by an unwavering focus on establishing a fortress balance sheet, countercyclical and opportunistic share repurchases and a steadily growing base dividend. This long-term focused value investing framework has received resounding support from our increasingly high-quality shareholder base, and we will continue to allocate capital in accordance with this first principles framework.Looking ahead to 2024, we are setting an annual production guidance range of 2,200 to 2,300 Bcfe, which is underpinned by a fully loaded maintenance capital program of $1.95 million to $2.05 billion. Additionally, we are investing $200 million to $300 million into several strategic growth projects in the form of midstream and water infrastructure and infill land capture this year. These opportunistic investments are significantly value enhancing, and I want to take a moment to highlight the merits of each of these. The acquisition of XcL Midstream last year created a full-service midstream platform within EQT. And through this platform, we are already sourcing proprietary opportunities that generate strong risk-adjusted returns and robust free cash flow yields, even superior to those of our core Marcellus wells, while at the same time derisking our upstream operations.As shown on Slide 10, we are investing in three Midstream growth projects this year, comprised of the Clarington Connector, the OakGate Pipeline and the Pacific Coast Compression project. The combined capital associated with these projects is approximately $115 million. And once fully operational, these projects should generate aggregate annual free cash flow of nearly $50 million in the form of superior price realizations. This implies these investments will generate an aggregate free cash flow yield of nearly 40%, which is extremely attractive given the absence of price risk and the annuity-like cash flow profile over a 20-year asset life. We forecast a total return on investment of roughly 8x and the aggregate net present value of these projects is estimated at $250 million, implying value creation for shareholders equivalent to roughly $0.60 per share.Despite only having this Midstream business for just 6 months, these initial projects provide a glimpse into the long-term opportunity we see for this new business line. Reinvestment opportunities of this quality only come about because of the symbiotic relationship between our midstream and upstream teams working in alignment together. We believe this approach to growing shareholder value is differentiated among peers, especially in a $2 gas world, and intend to cultivate this platform so that it becomes an even more impactful driver of shareholder value creation over time. Within our reserve development CapEx, we’ve also allocated $80 million to expand our existing water infrastructure assets in West Virginia. As shown on Slide 12 of our investor deck, we expect 2024 investments into our water infrastructure to drive annual savings of $20 million, implying a 25% free cash flow yield on our invested capital.Our EQT-owned water system has materially increased the amount of water produced that we can recycle, which is having a tangible impact on our cost structure as demonstrated by our LOE coming in below forecast every quarter last year, translating to $40 million more free cash flow than originally forecasted. Turning to land. We have roughly $100 million allocated to opportunistic infill leasehold growth in mineral acquisitions this year. As shown on Slide 13 of our investor presentation, opportunistic leasehold additions organically replenished 65% of the acreage that we developed over just the past year, which is a pace of replenishment that can materially expand our years of inventory when aggregated over time. We believe this ability to organically backfill developed inventory is a unique feature among U.S. shale plays that largely exists only within Southwest Appalachia due to the land configuration and historic development activity.We are seeing notable opportunities to add to our acreage position at extremely attractive prices this year given the low commodity price environment, which we were able to capture due to our strong financial position. To put into context, the value creation potential of deploying leasehold capital, we highlight a very tangible example on Slide 13 of our investor presentation. In 2022, we infilled leased acreage and increased our working interest by 18% in our Polecat North development located in Greene County, which we brought online last year. The incremental interest we added in this project through organic leasing is projected to generate a 90%-plus free cash flow yield in year 1 alone and nearly 55% of annual free cash flow yield over the first 5 years and a return on invested capital of roughly 7x the strip pricing.This example highlights why we see these tactical land expenditures as an extremely attractive reinvestment of capital while simultaneously extending inventory duration, which can, in turn, help facilitate additional strategic initiatives such as signing long-term supply agreements. A key point I want to leave you with on these growth projects is whether it’s land capital, infrastructure investments, our acquisition strategy, long-term agreements with utilities or our base upstream business, we are incredibly intentional about aligning these decisions to ensure they symbiotically work together to enhance each other and collectively result in optimal risk-adjusted compounding of shareholder capital in the decades ahead. In essence, this is the definition of terminal value.And through building a successful track record of these decisions, we expect this to be reflected in our stock price. Lastly, I want to quickly touch on our cost structure guidance given the moving pieces with the imminent startup of MVP. We are guiding full year transmission expense to $0.42 to $0.44 per Mcfe, which is up approximately $0.10 year-over-year driven by the costs associated with MVP. This is partly offset by an accompanying contractual step-down in our gathering rates, which we forecast to be in the $0.52 to $0.54 range for 2024, down from roughly $0.65 in 2023. Within our 2024 corporate differential guidance of $0.50 to $0.70, we conservatively assume EQT flows only a portion of our MVP capacity due to downstream limitations at Station 165.In the winter months, we should be able to flow at higher rates on MVP and realize a greater premium on downstream pricing. Thus, the cash flow uplift associated with MVP will be seasonal in nature until downstream expansion projects come online. It’s also worth highlighting that we have roughly 500 MMcf per day of our Station 165 pricing exposure hedged through financial instruments and firm physical sales through 2025, which provides downside protection should there be any further price pressure downstream of MVP over the next few years. With nearly 2.5 Bcf per day of upcoming project expansions at Station 165 and significant demand pull from the Southeast region, our ability to flow volumes on MVP and associated realized pricing should progressively improve over the coming years culminating in the commencement of our firm sales contracts in 2027 that are projected to improve our corporate-wide differential by $0.15 to $0.20, driving a $300 million-plus uplift in annual free cash flow generation.Turning to Slide 11 of our investor presentation. We announced the proposed acquisition of an additional 34% ownership in the EQT operated Seely and Warrensville gathering system in Northeast Pennsylvania for $205 million in cash, and we currently expect the transaction to close in late Q1 or early Q2. EQT currently owns 50% of this gathering system. So our pro forma ownership will increase to 84% based on terms agreed to in the purchase agreement, subject to the potential exercise of certain preferential purchase rights. Recall, this gathering system was part of the Alta acquisition we completed in 2021, which has been a significant source of value creation for EQT. The purchase price implies we are acquiring these assets for a double-digit free cash flow yield, underscoring how this deal allows us to reinvest capital into durable, long-lived infrastructure at an attractive rate of return with near zero execution risk, given we operate both the system and the upstream development underpinning the assets.Consistent with our broader strategy to reinvest capital into assets that improve our corporate cost structure, our greater ownership in the system will immediately lower our overall free cash flow breakeven price by more than $0.01 per Mcfe upon close. We are currently looking at ways we can shift even more development activity onto this system over the coming years, which could drive additional upside to the transaction. Moving to hedging. We tactically added to the front end of our 2024 hedge position earlier this year, leaning into the price spike that occurred ahead of the winter storm in January. We have now greater than 50% of our first quarter 2024 production volumes hedged with a weighted average floor price of $3.87 per MMBtu, which has derisked a significant portion of our free cash flow outlook for the year.We have nearly 50% of our second quarter production hedged with a weighted average floor of $3.39 per MMBtu. And roughly 40% of our Q3 production covered at a weighted average floor price of $3.42 per MMBtu. Additionally, we’ve recently added some 2024 winter hedges, taking our fourth quarter hedge coverage up to more than 20% with a weighted average floor price of $3.47 per MMBtu. Turning to Appalachian. Basis differentials were relatively wide during the fourth quarter, driven by an elevated Eastern storage level and rising production associated with multiple operators completing wells that were deferred from earlier in the year. Our strong basis hedge position again paid dividends this quarter, boosting our corporate-wide realized natural gas price by $0.08 per MMBtu.As it relates to the increase in Appalachian supply, after peaking at just under 37 Bcf per day in December, production in the basin has fallen by roughly 1.5 Bcf per day, and we anticipate further declines in the Appalachian supply through the second quarter. On the local demand side, it’s noteworthy that PJM recently doubled its 15-year annualized load growth forecast from 0.8% to 1.6%. This equates to nearly 7 gigawatts of additional power demand by 2027, in more than 10 gigawatts by 2030, which, if satisfied by natural gas, would translate to nearly 2 Bcf per day of additional local demand by the end of the decade. This trend of increasing local demand juxtaposed against a relatively flat basin supply and the commencement of MVP should provide a structural tailwind for local pricing over the coming years, which we do not believe is currently priced into the basis futures market.As it relates to Lower 48 supply, it’s worth highlighting that a prominent data vendor revised its year-to-date supply estimates downward by 1 to 2 Bcf per day this week. We had suspected certain data sources were overstating production, and this downward revision validated the market is not as oversupplied as many previously thought. Assuming production simply stays flat at the current revised level and weather is normal through the injection season, end of summer gas storage will be roughly in-line with the 5-year average level. I’ll close by sharing a few philosophical thoughts on what we believe it takes to not only survive but to thrive as a natural gas producer and a macro backdrop that we expect will be characterized by unpredictable volatility for the foreseeable future.The real long-term winners in this business will not be the biggest companies that gain scale simply for the sake of scale, but will instead be the companies that have a corporate cost structure that is currently and in the future at the low end of the cost curve. A low cost structure is the only competitive advantage one can have in a commodity-driven business, which is why it is our North Star and drives nearly all of our strategic decision-making. While we are believers that future natural gas prices will be higher on average, we do not believe that prices will be stable at the $4 to $5 level, like the prevailing consensus view. And building a business around this assumption of average prices is likely to end poorly. Until we return to a world where we can build necessary domestic infrastructure, we believe we are more likely to see prices either around the $2 level they are today to force high-cost producers to curtail production and activity were materially higher to curtail demand, as pricing becomes the only variable left to balance natural gas inventories.Said another way, we believe an increasingly fat-tailed distribution of outcomes. That is a critical distinction, and we’re already seeing the manifestation of this dynamic with prompt month pricing at this moment. However, EQT is at the low end of the cost curve and will be moving even further down the cost curve over the next 5 years due to our contractual gathering rate reductions in long-term MVP firm sales agreements. This outcome is by design as our philosophy toward creating value in a cyclical, volatile commodity business has underpinned every one of our strategic decisions over the past several years. The culmination of these decisions has created a unique opportunity for investors, deploy capital into the preeminent natural gas platform that is positioned to generate peer-leading shareholder value through all parts of the commodity cycle over the long-term.And with that, we will open the call to questions.See also 30 Unhappiest Countries In The World and 35 Biggest Football Clubs in the World.To continue reading the Q&A session, please click here.

Insider Monkey

EQT Corporation (NYSE:EQT) Q4 2023 Earnings Call Transcript

https://finance.yahoo.com/news/eqt-corporation-nyse-eqt-q4-135952022.html

4d41cee8-f7e8-37b6-852c-82a3030f06b1

EQT

EQT Corp's operational efficiency and technology integration stand as key strengths.Capital intensity and reliance on a single service provider pose potential weaknesses.Opportunities for EQT Corp lie in expanding its digital capabilities and market reach.Market volatility and regulatory changes present significant threats to the company.On February 14, 2024, EQT Corp (NYSE:EQT), a leading independent natural gas production company, filed its annual 10-K report with the SEC. With a focus on the Marcellus and Utica shales in the Appalachian Basin, EQT Corp has established itself as a significant player in the U.S. energy sector. The company reported a robust operational year, with 27.6 Tcfe of proved natural gas, NGLs, and oil reserves and an expected sales volume of 2,200 to 2,300 Bcfe for 2024. Despite a decrease in net cash provided by operating activities from $3,466 million in 2022 to $3,179 million in 2023, EQT Corp continues to leverage its operational efficiency and technological advancements to maintain its market position. This SWOT analysis delves into the strengths, weaknesses, opportunities, and threats as disclosed in the recent 10-K filing, providing investors with a comprehensive understanding of EQT Corp's strategic outlook.Warning! GuruFocus has detected 7 Warning Signs with EQT.Decoding EQT Corp (EQT): A Strategic SWOT InsightStrengthsOperational Efficiency and Combo-Development Projects: EQT Corp's operational strategy is centered around the execution of combo-development projects, which involve the development of several multi-well pads simultaneously. This approach has proven to be highly efficient, maximizing operational and capital efficiencies. The company's scale and contiguous acreage position in the Appalachian Basin set it apart from its peers, allowing for a more streamlined and cost-effective production process.Technological Integration and Digital Work Environment: EQT Corp's integration of technology into its operations is a significant strength. The company's digital work environment facilitates efficient communication, real-time feedback, and transparent operational data access. This digital focus not only enhances productivity but also contributes to employee engagement and satisfaction, which are critical for long-term success.Story continuesWeaknessesCapital Intensity and Funding Risks: The natural gas production industry is capital-intensive, and EQT Corp is no exception. The company acknowledges that market pressures or changes in its financial position could make it challenging to secure necessary funding for operations. This reliance on external financing exposes EQT Corp to market volatility and credit risks, which could impact its growth and development plans.Reliance on a Single Service Provider: EQT Corp's operations are heavily reliant on services provided by Equitrans Midstream Corporation. This dependence on a single provider for a substantial portion of its midstream and water services introduces a vulnerability to service disruptions or changes in the provider's business practices, which could adversely affect EQT Corp's operational efficiency and cost structure.OpportunitiesExpansion of Digital Capabilities: EQT Corp's strong digital infrastructure presents an opportunity to further enhance its operational capabilities. By continuing to invest in and develop its digital work environment, the company can maintain its competitive edge in efficiency and innovation, potentially leading to increased market share and profitability.Market Expansion and Diversification: With its leading position in natural gas production, EQT Corp has the opportunity to expand into new markets and diversify its customer base. By leveraging its existing strengths and exploring strategic partnerships or acquisitions, the company can tap into new revenue streams and reduce its reliance on specific geographic areas or customer segments.ThreatsMarket Volatility and Commodity Price Fluctuations: The natural gas industry is subject to significant price volatility, which can directly impact EQT Corp's revenue and profitability. The company's financial performance is closely tied to commodity market movements, and prolonged periods of low prices could adversely affect its growth and financial position.Regulatory Changes and Environmental Concerns: EQT Corp operates in a highly regulated industry, and changes in environmental, energy, or financial regulations could impose additional costs or operational limitations. Moreover, increasing public scrutiny and demand for alternative energy sources could negatively impact the company's earnings and strategic direction.In conclusion, EQT Corp (NYSE:EQT) demonstrates a strong operational framework and technological prowess, which are essential for maintaining its leadership in the natural gas production industry. However, the company must navigate the challenges of capital intensity, reliance on a single service provider, market volatility, and regulatory changes. By capitalizing on opportunities to expand its digital capabilities and market presence, EQT Corp can continue to thrive in a competitive and dynamic energy landscape.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 EQT Corp (EQT): A Strategic SWOT Insight

https://finance.yahoo.com/news/decoding-eqt-corp-eqt-strategic-050840984.html

5429513c-0ec4-37b6-927d-53d8cce2bacb

EQT

(Bloomberg) -- US natural gas producer EQT Corp. agreed to buy back former unit Equitrans Midstream Corp. for about $5.5 billion in stock, the latest in a flurry of deals in the oil and gas pipeline industry.Most Read from BloombergOne of the Most Infamous Trades on Wall Street Is Roaring BackStock Rally Stalls in Countdown to Inflation Data: Markets WrapTech CEOs Are Addicted to Taking Needless RisksChina Has Never Canceled This Many Shipments of US WheatThe transaction will give EQT control of the controversial Mountain Valley Pipeline project. Championed by West Virginia Senator Joe Manchin but years behind schedule following legal battles and local opposition, the $7.6 billion conduit is due to be completed in the second quarter. It will take gas from the land-locked Marcellus shale basin in Appalachia — the biggest US source of the fuel — to markets in the Southeast and, potentially, to liquefied natural gas export terminals on the Gulf Coast.EQT said Monday that the takeover will also help cut the break-even point at which it generates free cash flow, reduce the need for hedging and enhance its agility to cash in on increases in gas prices. After a spike in prices following Russia’s invasion of Ukraine in 2022, US gas prices have tumbled, due in part to booming domestic production, and are currently trading close to a three-year low. EQT said earlier this month it will cut output in response to the price slump.The deal will create “America’s first large-scale, fully integrated natural gas company,” EQT Chief Executive Officer Toby Rice said on a conference call with analysts.The merged company, he added, “is going to give us the scale to be able to continue to deliver cleaner energy into markets, whether that’s domestically, replacing coal, meeting growing energy demand domestically, or internationally and servicing the burgeoning LNG market that we have.”Read More: EQT Boss Says Mountain Valley Pipeline Will Enable AI Power BoomStory continuesRice said in October that EQT is evaluating LNG export projects along the East Coast. Gas companies in the US see great potential in LNG as exported gas typically fetches a higher price.Equitrans was spun out of EQT in 2018 following a campaign by activist investment firm Jana Partners. The reversal of that move via Monday’s deal is the latest sign that the US fossil fuel sector may be moving back toward favoring the vertical integration of so-called upstream (production), midstream (pipeline and storage) and downstream (refining) assets. In January, gas-station owner Sunoco LP agreed to buy midstream operator NuStar Energy LP for about $6.5 billion.Read More: Sunoco Deal Offers Playbook for US Pipeline SectorMonday’s deal also adds to a string of recent transactions between midstream companies announced in North America, including ONEOK Inc.’s purchase of Magellan Midstream Partners LP in September and Energy Transfer LP’s takeover of Crestwood Equity Partners LP in November.The acquisition of Equitrans is expected to close in the fourth quarter and will create annual cost savings of $250 million, EQT said. Equitrans shares rose 1.5% to close at $11.32 in New York. EQT fell 7.8% to $34.61.Each outstanding share of Equitrans will be exchanged for 0.3504 of a share of EQT, representing an implied value of $12.50 per Equitrans share. Equitrans has 436 million shares outstanding, according to data compiled by Bloomberg.As a result of the deal, EQT shareholders are expected to own about 74% of the combined company, EQT said. Guggenheim Securities LLC is lead financial adviser to EQT on the transaction and RBC Capital Markets is financial adviser to the company. Barclays Plc and Citigroup Inc. are financial advisers to Equitrans.Most Read from Bloomberg BusinessweekAcademics Question ESG Studies That Helped Fuel Investing BoomLuxury Postnatal Retreats Draw Affluent Parents Around the USHow Apple Sank About $1 Billion a Year Into a Car It Never BuiltThe Battle to Unseat the Aeron, the World’s Most Coveted Office ChairHow Microsoft’s Bing Helps Maintain Beijing’s Great Firewall©2024 Bloomberg L.P.

Bloomberg

EQT to Acquire Mountain Valley Pipeline Owner for $5.5 Billion

https://finance.yahoo.com/news/eqt-buy-mountain-valley-gas-104027284.html

c937df0e-6c38-3bed-8815-fbb545d75014

EQT

EQT Corporation (EQT) shares are trading lower Monday after the company announced an all-stock deal to acquire Equitrans Midstream (ETRN). Through this vertical integration move, EQT aims to expand its presence in the natural gas sector, strengthening its ability to supply to various regions across the country.Yahoo Finance's Madison Mills breaks down the details.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 Angel SmithVideo TranscriptJULIE HYMAN: And now turning to shares of EQT. That stock is dropping after the company struck a deal to acquire Equitrans Midstream. It's an all-stock transaction that aims to expand EQT's presence in the natural gas sector. And what's interesting here is Equitrans used to be part of EQT here. But we've seen sort of a reverticalization within the energy industry. We've seen a lot of deals in this space recently.BRIAN SOZZI: I have no ponies in this race. So I will add, to me, it makes sense that you would own the production and delivery.JULIE HYMAN: You don't think they should raise the pipeline and build an arena there?BRIAN SOZZI: Wow.JULIE HYMAN: Why do I bring--BRIAN SOZZI: Not getting a rise out of me. Not taking your bait today, Julie. Not taking it.JULIE HYMAN: There's nothing but rises out of you.BRIAN SOZZI: We got Madison just here.JULIE HYMAN: All right. Let's get to Maddie Mills here.MADISON MILLS: I think you've got it. If you guys want to get into the fracking debate here, please feel free. I love it. This is great. No. But as you mentioned, Julie, and you bring up a great point about this, which is that the location of this pipeline, which EQT will now have access to after reacquiring Equitrans here-- merging, rather-- is in a location that is going to be very critical. So first of all, this pipeline, which has been very controversial is going to be able to deliver that natural gas from a landlocked area of Appalachia to other parts of the country.Story continuesThink the southeast, potentially even out West moving forward. But right now, we're focusing on the southeastern region. And this is going to open up a lot of supply for, what the CEO calls, the largest natural gas company in the country. And of course, it's that vertical integration play that investors love to hear about. As you mentioned, Sozzi, they're going to own the format and the product. So that's--BRIAN SOZZI: Makes sense to me.MADISON MILLS: --potentially a boon for them, but not so much for the stock price, maybe looking at the deal as a little bit too expensive.JULIE HYMAN: Well, it's interesting because the reason they spun this out in the first place was because of an activist campaign from Jana Partners back in 2018. So it's interesting that they're now taking them on again. We've seen a bunch of other deals like this in natural gas, in oil, and it's become a refrain.MADISON MILLS: And it makes sense given the AI boom that we're seeing, at least that's what the CEO said today. So maybe trying to get a little bit of excitement.BRIAN SOZZI: You're digging for that NVIDIA question.MADISON MILLS: Mention it. Exactly.BRIAN SOZZI: You're digging for it.MADISON MILLS: Well, just if you mention AI, you're going to have a better day on the Street.

Yahoo Finance Video

EQT to acquire Equitrans Midstream in all-stock deal

https://finance.yahoo.com/video/eqt-acquire-equitrans-midstream-stock-204642808.html

4e7f9121-30de-33cb-8d87-7cb7eb373475

ES

In this article, we discuss 11 best electric utility stocks to buy now. If you want to skip our discussion on the electric utility industry, head directly to 5 Best Electric Utility Stocks To Buy Right Now. In the face of a continuously changing energy landscape, US utilities maintain three primary objectives according to Ernst & Young (EY) – ensuring reliable, affordable, and sustainable energy. The utilities sector in 2024 requires a careful balance between conventional and innovative funding approaches to advance these priorities. Presently, utility executives are better equipped than ever to decisively navigate the transformative decisions required for the future. Initial focus should be on three primary opportunities – (1) Strengthening the balance sheet to support investment strategies that generate enduring value for stakeholders, (2) Optimizing newly accessible capital, such as grants and tax credits, to expedite the energy transition for power and utility companies, and (3) Upgrading technology to advance business operations.In 2023, the US power and utilities industry experienced advancements in decarbonization, increased deployment of solar power and energy storage, and improved grid reliability. As per a recent Deloitte report, the sector faced mixed fundamentals, with a slight decrease in electricity sales due to mild weather. Wholesale electricity prices dropped in response to lower natural gas costs, but high capital expenditures for grid modernization and decarbonization, coupled with rising interest rates, contributed to potential customer bill increases. The industry also grappled with costs related to disaster recovery, cybersecurity, and climate-related challenges. Despite lower fuel costs, retail electricity prices were projected to increase by 1.9% year-over-year, with residential prices potentially rising by 4.7%. In 2024, electricity prices are expected to stabilize, with a forecasted 2% increase in sales. The industry may focus on electrification, resource adequacy, and addressing rising costs, exploring the potential use of AI, including generative AI, to tackle challenges. Story continuesIn 2023, utilities faced a decline as investor preference shifted from defensive stocks to mega-cap growth companies, particularly in the technology and communication services sectors. This led to utilities being one of the weakest-performing sectors in the S&P 500. However, by late 2023, utilities stocks experienced significantly lower valuations, trading at one of the largest discounts to the S&P in the past two decades, according to a Fidelity report. The utility sector's near-term performance may continue to be influenced by investor sentiment and economic conditions in 2024. If the economy maintains a soft landing with strong growth and low inflation, utilities may remain out of favor. Conversely, in the face of economic weakness, investors could turn back to defensive stocks like utilities, known for stability, durable cash flows, and dividends, especially during market volatility. A decline in interest rates could further benefit utility stocks by making their dividends more attractive compared to bonds. Looking at the longer term, utilities are positioned at the center of the shift from carbon-based fuels to renewable energy sources. The Inflation Reduction Act of 2022 is expected to accelerate this transition by providing incentives for the adoption of clean-energy options and reducing greenhouse gasses. Consumers, businesses, and governments are actively working to decrease their carbon footprints, and forecasts suggest a potential doubling of the portion of US power generation from renewable sources by 2030.Some of the best electric utility stocks to invest in include NextEra Energy, Inc. (NYSE:NEE), PG&E Corporation (NYSE:PCG), and The Southern Company (NYSE:SO). Our Methodology We chose the top electric utility stocks based on overall hedge fund sentiment toward each stock. We have assessed the hedge fund sentiment from Insider Monkey’s database of 910 elite hedge funds tracked as of the end of the third quarter of 2023. The list is arranged in ascending order of the number of hedge fund holders in each firm. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). 11 Best Electric Utility Stocks To Buy Right NowA vibrant skyline illuminated by the lights of the electric utility company.Best Electric Utility Stocks To Buy Right Now11. Edison International (NYSE:EIX)Number of Hedge Fund Holders: 28Edison International (NYSE:EIX) is involved in the generation and distribution of electric power. The company serves residential, commercial, industrial, public, and agricultural customers in California. Additionally, Edison International offers decarbonization and energy solutions to commercial, institutional, and industrial customers in North America and Europe. On December 31, Edison International (NYSE:EIX) declared a $0.78 per share quarterly dividend, a 5.8% increase from its prior dividend of $0.74. The dividend was distributed to shareholders on January 31. According to Insider Monkey’s fourth quarter database, 28 hedge funds were bullish on Edison International (NYSE:EIX), same as the prior quarter. Richard S. Pzena’s Pzena Investment Management is the leading stakeholder of the company, with 13.3 million shares worth $950.7 million. Like NextEra Energy, Inc. (NYSE:NEE), PG&E Corporation (NYSE:PCG), and The Southern Company (NYSE:SO), Edison International (NYSE:EIX) is one of the best utility stocks to invest in. ClearBridge Large Cap Value Strategy made the following comment about Edison International (NYSE:EIX) in its Q3 2023 investor letter:“Our two utilities Sempra and Edison International (NYSE:EIX) were also negatively impacted by rising rates, although both outperformed the utility benchmark. We maintain a large active overweight to Sempra and added opportunistically to Edison to reflect its strong fundamentals.”10. Consolidated Edison, Inc. (NYSE:ED)Number of Hedge Fund Holders: 28Consolidated Edison, Inc. (NYSE:ED) specializes in regulated electric, gas, and steam delivery services in the United States. The company operates infrastructure, including transmission lines, substations, transformers, overhead and underground distribution lines, as well as natural gas distribution mains and service lines. It is one of the best utility stocks to buy. On February 15, Consolidated Edison, Inc. (NYSE:ED) reported a Q4 non-GAAP EPS of $1.00, beating market estimates by $0.03. The company also declared a $0.83 per share quarterly dividend on January 18, which will be paid on March 15 to shareholders on record as of February 14. According to Insider Monkey’s fourth quarter database, 28 hedge funds were bullish on Consolidated Edison, Inc. (NYSE:ED), compared to 27 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the leading stakeholder of the company, with 879,923 shares worth $80 million. 9. Eversource Energy (NYSE:ES)Number of Hedge Fund Holders: 29Eversource Energy (NYSE:ES) is a public utility holding company engaged in the energy delivery business. The company operates through segments such as Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution. Eversource Energy (NYSE:ES) is one of the best utility stocks to invest in. On February 13, Eversource Energy (NYSE:ES) announced its agreement to divest its 50% ownership in the South Fork Wind and Revolution Wind projects, located off the northeastern US coast, to Global Infrastructure Partners for approximately $1.1 billion in cash. This move brings Eversource Energy a step closer to achieving its objective of withdrawing from the challenged wind power sector. According to Insider Monkey’s fourth quarter database, 29 hedge funds were long Eversource Energy (NYSE:ES), compared to 30 funds in the preceding quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is the largest stakeholder of the company, with 939,334 shares worth $58 million. 8. Duke Energy Corporation (NYSE:DUK)Number of Hedge Fund Holders: 30Duke Energy Corporation (NYSE:DUK) operates as an energy company in the United States. The company has two segments – Electric Utilities and Infrastructure (EU&I) and Gas Utilities and Infrastructure (GU&I). On January 11, Duke Energy Corporation (NYSE:DUK) declared a quarterly dividend of $1.025 per share, in line with previous. The dividend is payable on March 18, to shareholders of record on February 16. It is one of the best utility stocks to watch.According to Insider Monkey’s fourth quarter database, 30 hedge funds were bullish on Duke Energy Corporation (NYSE:DUK), compared to 39 funds in the last quarter. John Overdeck and David Siegel’s Two Sigma Advisors is a significant position holder in the company, with 733,100 shares worth over $71 million.7. WEC Energy Group, Inc. (NYSE:WEC)Number of Hedge Fund Holders: 31WEC Energy Group, Inc. (NYSE:WEC) operates in the regulated natural gas and electricity sectors, providing renewable and non-regulated renewable energy services in the United States. The company operates through six segments – Wisconsin, Illinois, Other States, Electric Transmission, Non-Utility Energy Infrastructure, and Corporate and Other. WEC Energy Group, Inc. (NYSE:WEC) is one of the top utility stocks to invest in. On February 1, WEC Energy Group, Inc. (NYSE:WEC) reported a Q4 non-GAAP EPS of $1.10, beating Wall Street estimates by $0.02. However, the revenue of $2.22 billion fell short of market consensus by $510 million. According to Insider Monkey’s fourth quarter database, 31 hedge funds were long WEC Energy Group, Inc. (NYSE:WEC), compared to 25 funds in the last quarter. Israel Englander’s Millennium Management is the biggest stakeholder of the company, with 1.8 million shares worth $152.7 million. Carillon Tower Advisers made the following comment about WEC Energy Group, Inc. (NYSE:WEC) in its Q3 2022 investor letter:“WEC Energy Group, Inc. (NYSE:WEC), the Wisconsin electric and gas utility, fell in a weak utility group as interest rates rose and fears of bad debt expenses gathered. We view the company’s bad debt risk as relatively modest compared to the industry.”6. American Electric Power Company, Inc. (NASDAQ:AEP)Number of Hedge Fund Holders: 32American Electric Power Company, Inc. (NASDAQ:AEP) is an electric public utility holding company in the United States, engaged in the generation, transmission, and distribution of electricity for both retail and wholesale customers. On January 19, American Electric Power Company, Inc. (NASDAQ:AEP) declared a quarterly dividend of $0.88 per share, in line with previous. The dividend is payable on March 8, to shareholders on record as of February 9. According to Insider Monkey’s fourth quarter database, 32 hedge funds held stakes in American Electric Power Company, Inc. (NASDAQ:AEP), compared to 39 funds in the last quarter. Eric W. Mandelblatt’s Soroban Capital Partners is a prominent stakeholder of the company, with approximately 2 million shares worth $159.5 million. In addition to NextEra Energy, Inc. (NYSE:NEE), PG&E Corporation (NYSE:PCG), and The Southern Company (NYSE:SO), American Electric Power Company, Inc. (NASDAQ:AEP) is one of the best utility stocks to monitor. It ranks 6th on our list. Here is what ClearBridge Investments Value Equity has to say about American Electric Power Company, Inc. (NASDAQ:AEP) in its Q1 2022 investor letter:“About 5% of the portfolio is in transitioning power companies, typically migrating from coal to renewables. We have been active in encouraging these transitions and added a new position in American Electric Power (NASDAQ:AEP). AEP has the fastest planned renewable energy ramp in the U.S., with plans to both shrink coal and grow renewables by 50% each by 2030. This would drive an 80% emissions reduction, while supporting high single-digit earnings growth at a double-digit return.” Click to continue reading and see 5 Best Electric Utility Stocks To Buy Right Now.  Suggested articles:12 Best Gold Mining Companies to Invest In According to Analysts13 High Growth Penny Stocks That Are Profitable20 Most Carbon Productive Companies in the World Disclosure: None. 11 Best Electric Utility Stocks To Buy Right Now is originally published on Insider Monkey.

Insider Monkey

11 Best Electric Utility Stocks To Buy Right Now

https://finance.yahoo.com/news/11-best-electric-utility-stocks-134033847.html

667fe21f-8bb2-3768-bcb2-20ec5da857a2

ES

New England utilities — including Eversource, National Grid and Avangrid subsidiaries — and state ratepayer advocates are at odds over a challenge to the way the region reviews and builds transmission projects to replace or upgrade existing infrastructure, called “asset condition” projects, according to Wednesday filings at the Federal Energy Regulatory Commission.The filings are in response to a challenge by the Maine Office of Public Advocate, or OPA, which contends the projects receive little scrutiny before they are added into customer rates and that the utilities aren’t following their formula rate protocols.FERC should reject the Maine OPA’s petition for several reasons, including its failure to follow the rules for challenging formula rates, according to the utilities, which also include Rhode Island Energy, a PPL subsidiary, and Vermont Transco.Also, the Maine OPA failed to show how the utilities violated their formula rate or its related information sharing protocols, they said.“The identified [transmission owners] did provide responses and supporting documentation in response to Maine OPA’s information and document requests, in addition to objecting to certain questions,” the utilities said.In addition to a presentation on asset condition projects for stakeholder review in the ISO-NE Planning Advisory Committee process, Eversource, for example, gave the Maine OPA “substantial” internal documentation for every asset condition project placed into service in 2022 and included in the 2023 annual update, the utilities said.In cases where the utilities didn’t respond to the Maine OPA’s data requests, those requests were “vague, undefined, unclear, [and] unduly burdensome,” the utilities said.Further, the Maine OPA’s claim the projects received scant scrutiny before being included in rates is false, the utilities said. “Such projects went through a robust regional stakeholder process, where state regulators and consumer advocates had ample opportunity to participate, ask questions, and object to the projects in an open forum focused on regional system planning,” they said.Story continuesThe Maine OPA’s questions are best addressed in the ISO New England Planning Advisory Committee’s open stakeholder forum seeking to enhance the planning process for asset condition projects, according to the utilities.The transmission owners on Thursday said they plan to present a proposed “guidance document” on asset condition reviews at a May committee meeting, two months later than initially planned.“We acknowledge the importance of this document to our broader commitment to improve the breadth and quality of information provided to regional stakeholders related to asset condition project planning, and we appreciate the continued engagement with ISO-NE, [the New England States Committee on Electricity,] and the rest of the PAC stakeholder community on this effort,” the transmission owners said.However, New England state ratepayer advocates support the Maine OPA’s challenge. Ratepayer advocates need to understand why utilities decide to build asset condition projects, not just their costs, according to their comments at FERC.“Limiting the scope of information exchanged under the protocols to mere ‘calculations’ of ‘actual costs’ would obfuscate any attempt by consumer advocates to understand and to verify the prudence of [asset condition project] costs that have been or will be assigned to ratepayers,” they said.New England transmission owners spent $3.4 billion on asset condition projects between 2016 and June 2023, and the spending is expected to grow “significantly,” the ratepayer advocates said.This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter.

Utility Dive

Avangrid, other utilities urge FERC to reject ‘false’ claims of insufficient transmission cost reviews

https://finance.yahoo.com/news/avangrid-other-utilities-urge-ferc-080204983.html

ffca7bf4-de69-35b3-9fc4-6316ff882586

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Dive Brief:New York has offered new contracts to offshore wind farms in development by Equinor and Ørsted following an expedited bidding process that launched in November, according to an announcement from Governor Kathy Hochul.The new contracts will cost the average consumer about 2% more, according to a statement by the governor, and will require developers Equinor and Ørsted to commit to providing additional economic development benefits above and beyond their original contracts.By allowing developers to re-bid their offshore wind contracts, New York likely prevented the projects from being canceled, according to Sam Salustro, vice president of strategic communications for the Oceantic Network, an offshore wind industry group.Dive Insight:New York state has secured $2 billion in economic development, 800 jobs and more than 1.7 GW of clean energy by awarding two new contracts to Equinor and Ørsted for wind farms that are already nearing completion, according to Hochul.The New York governor announced on Thursday that Equinor's Empire Wind 1, an 810-MW wind farm located 15-30 miles southeast of Long Island, and Ørsted's 924-MW Sunrise Wind, located 30 miles east of Montauk Point, will be offered new contracts following the state's 2023 Offshore Wind Solicitation. Both projects had pre-existing contracts with the state, but were able to bid into the solicitation under New York state rules intended to allow bids from wind farms that needed new contractual terms to remain financially viable.Under the terms of the request for proposals, the two projects' pre-existing contracts will be terminated and replaced by the new contracts following final award negotiations.New York is not the first or only state to allow distressed wind farms to re-bid their contracts in the wake of several project cancelations over the past few years, Salustro said — other states, including New Jersey, Massachusetts, Rhode Island and Connecticut, have pursued similar actions. And it is likely, he said, that these solicitations have allowed projects — including wind farms such as Sunrise Wind and Empire Wind 1, which Hochul described as being ready to begin construction — to continue.Story continuesIndeed, Ørsted indicated in a January 24 announcement that it planed to acquire Eversource's interests in the Sunrise Wind farm and that if the effort to re-bid the project's contract were unsuccessful, the project's existing contract would be canceled. The agreement to buy out Eversource's share of the project was also conditioned on the success of the re-bid.Thursday's announcement probably won't be the last of its kind. Salustro said that a handful of offshore wind developments remain locked into contracts they will either need to cancel or re-bid in order to remain financially viable. But he said he believes the industry has turned a corner.“In many ways we feel like the pivot has been made, and we're going to start seeing a lot more new projects, alongside projects that are being restructured,” he said.This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter.

Utility Dive

New York awards new contracts for Equinor, Ørsted offshore wind projects

https://finance.yahoo.com/news/york-awards-contracts-equinor-orsted-095300149.html

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ES

Assessing the Upcoming Dividend and Historical Performance of Eversource Energy (NYSE:ES)Eversource Energy (NYSE:ES) recently announced a dividend of $0.72 per share, payable on 2024-03-29, with the ex-dividend date set for 2024-03-04. 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 Eversource Energy's dividend performance and assess its sustainability.What Does Eversource Energy Do?Warning! GuruFocus has detected 9 Warning Signs with ES.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?Eversource Energy is a diversified holding company with subsidiaries that provide rate-regulated electric, gas, and water distribution service to more than 4 million customers in the Northeast U.S. The company expanded its service territories with acquisitions of NStar (2012), Aquarion (2017), and Columbia Gas (2020). Eversource is exiting its 50% partnership with European utility Orsted to develop 2 gigawatts of offshore wind projects in the Northeast U.S. The company exited most of its unregulated businesses in 2006.Eversource Energy's Dividend AnalysisA Glimpse at Eversource Energy's Dividend HistoryEversource Energy has maintained a consistent dividend payment record since 1999. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.Breaking Down Eversource Energy's Dividend Yield and GrowthAs of today, Eversource Energy currently has a 12-month trailing dividend yield of 4.62% and a 12-month forward dividend yield of 4.90%. This suggests an expectation of increased dividend payments over the next 12 months.Over the past three years, Eversource Energy's annual dividend growth rate was 16.60%. Extended to a five-year horizon, this rate decreased to 6.90% per year. And over the past decade, Eversource Energy's annual dividends per share growth rate stands at 5.70%.Story continuesBased on Eversource Energy's dividend yield and five-year growth rate, the 5-year yield on cost of Eversource Energy stock as of today is approximately 6.45%.Eversource Energy's Dividend AnalysisThe Sustainability Question: Payout Ratio and ProfitabilityTo assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Eversource Energy's dividend payout ratio is 0.62.Eversource Energy's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Eversource Energy's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.Growth Metrics: The Future OutlookTo ensure the sustainability of dividends, a company must have robust growth metrics. Eversource Energy's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.Revenue is the lifeblood of any company, and Eversource Energy's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Eversource Energy's revenue has increased by approximately 9.10% per year on average, a rate that outperforms approximately 54.19% of global competitors.The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Eversource Energy's earnings increased by approximately 8.00% per year on average, a rate that outperforms approximately 57.14% of global competitors.Lastly, the company's 5-year EBITDA growth rate of 6.20%, which outperforms approximately 55.06% of global competitors, further bolsters confidence in its financial stability.Concluding Insights on Eversource Energy's Dividend OutlookIn conclusion, Eversource Energy's upcoming dividend payment, consistent dividend history, and growth rates present a compelling case for investors, especially those with a focus on steady income streams. The company's reasonable payout ratio, combined with strong profitability and growth metrics, suggest that its dividends are sustainable in the foreseeable future. Investors should consider these factors, alongside their own investment strategies and market conditions, when evaluating Eversource Energy as a potential addition to their portfolios. Will Eversource Energy continue to be a reliable source of dividends for value investors? Only time will tell, but the current indicators are promising. For those interested in exploring further, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.This article first appeared on GuruFocus.

GuruFocus.com

Eversource Energy's Dividend Analysis

https://finance.yahoo.com/news/eversource-energys-dividend-analysis-100344322.html

f01aedff-529b-3d0d-999b-61b732ce7741

ESS

Establishes Record Date for the Annual Shareholders’ MeetingSAN MATEO, Calif., February 22, 2024--(BUSINESS WIRE)--Essex Property Trust, Inc. (NYSE:ESS) announced today that its Board of Directors has approved a 6.1% increase to its annual cash dividend. This represents the Company’s 30th consecutive annual dividend increase. The Board of Directors has declared a first quarter dividend of $2.45 per share, payable on April 12, 2024 to shareholders of record as of March 29, 2024. On an annualized basis, the dividend represents a distribution of $9.80 per common share.The Annual Meeting of Shareholders will be held virtually on Tuesday, May 14, 2024 at 1:00 p.m. Pacific Time or 4:00 p.m. Eastern. Shareholders of record as of March 1, 2024 will be entitled to vote at the meeting. Further information regarding how to access and vote at the virtual Annual Meeting will be contained in the proxy materials to be filed with the U.S. Securities and Exchange Commission.About Essex Property Trust, Inc.Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 252 apartment communities comprising approximately 62,000 apartment homes with an additional property in active development. Additional information about the Company can be found on the Company’s website at www.essex.com.View source version on businesswire.com: https://www.businesswire.com/news/home/20240222421510/en/ContactsLoren RaineyDirector, Investor Relations(650) [email protected]

Business Wire

Essex Announces its 30th Consecutive Annual Dividend Increase

https://finance.yahoo.com/news/essex-announces-30th-consecutive-annual-211500115.html

4fcc6443-0a77-39b5-a1de-fe5e5227f12a

ESS

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

Motley Fool

Forget Annaly Capital; These Unstoppable Stocks Are Better Buys

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

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

ESS

Investors who purchase real estate investment trusts (REITs) often do so for the income that most REITs produce in the form of monthly or quarterly dividends. When REITs announce dividend increases, investors either celebrate a raise in annual income or a chance to reinvest in an increased number of shares of the stock.In addition to these increases, dividend raises signify a REIT's belief in its ability to continue generating strong revenue and earnings that allow it to continue providing shareholders with steady income. Often the dividend increase announcements are made simultaneously with the earnings report, or shortly before the report is released. Dividend increase announcements made right before earnings announcements often portend a strong report. Dividend increases frequently lead to share price appreciation as well. This gives REIT investors two sources of gains.Over the past few weeks, several REITs have hiked the monthly or quarterly dividends paid. Take a look at four of them that have announced dividend increases, along with other positive news. Whitestone REIT (NYSE:WSR) is a Houston, Texas-based retail REIT that owns, operates and develops open-air retail centers in fast-growing Sun Belt markets. Whitestone owns 50 properties in Texas and Arizona. Whitestone's tenants are mostly service-oriented businesses, such as restaurants, health and fitness centers, financial services and grocery stores. At the end of the third quarter of 2023, Whitestone had a 92.7% occupancy rate.On Feb. 21, Whitestone REIT announced it had acquired the 107,000-square-foot grocery-anchored Garden Oaks Shopping Center, in Houston. The center is 96% occupied.On March 5, Whitestone announced a 3% increase in its monthly dividend from $0.04 per share to $0.04125 per share. The new annual dividend of $0.495 per share yields 4.02%. The dividend will be paid on April 11 to shareholders as of April 2. Whitestone will announce its fourth-quarter 2023 operating results after the market closes on March 6.Story continuesEPR Properties (NYSE:EPR) is a Kansas City, Missouri-based diversified experiential REIT that owns and operates 359 locations, including movie theater chains, amusement parks, ski resorts, fitness centers and other recreational venues with 200 tenants across 44 states. It also owns 71 early childhood education centers and nine private schools.On Feb. 28, EPR Properties reported its fourth-quarter operating results. Funds from operations (FFO) of $1.18 per share beat the consensus estimate of $1.16 per share and revenue of $171.98 million also beat the consensus estimate of $150.41 million.Simultaneously, EPR Properties announced an increase in its monthly dividend from $0.275 to $0.285 per share, payable on March 15 to shareholders of record on Feb. 29. The annual dividend of $3.30 per share yields 7.85%.Essex Property Trust Inc. (NYSE:ESS) is a San Mateo, California-based residential REIT that acquires, develops and manages multifamily apartment communities on the West Coast of the U.S. As of March 1, its portfolio includes 252 apartment communities, with approximately 62,000 apartments in eight California and Washington state markets.Essex was founded in 1971 and had its initial public offering IPO in 1994 at $19.50 per share. It's been a member of the S&P 500 since 2014 and is an S&P Dividend Aristocrat with 30 years of increasing cash dividends.On Feb. 6, Essex Property Trust released its fourth-quarter operating results. FFO of $3.83 per share beat the estimate of $3.81 as well as fourth-quarter 2022 FFO of $3.77 per share. Revenue of $418.95 million was just below the estimate of  $419.69 million but surpassed the fourth-quarter 2022 revenue of $412.36 million.On Feb. 22, Essex Property Trust announced its board approved a 6.1% increase in its annual cash dividend, the 30th consecutive annual dividend increase. The first quarter dividend of $2.45 per share is payable on April 12 to shareholders of record as of March 29. The annualized dividend of $9.80 per share presently yields 4%.On Feb. 28, Mizuho analyst Vikram Malhorta upgraded Essex Property Trust from Neutral to Buy, while lowering the price target from $255 to $250. Two days earlier, Morgan Stanley analyst Adam Kramer maintained Essex Property Trust with an Equal-Weight rating and raised the price target from $227 to $230.Essex has bounced from $225.40 on Feb. 26 to a recent price of $245.08.Centerspace (NYSE:CSR) is a Minot, North Dakota-based residential REIT with a focus on the ownership, management, acquisition and redevelopment of apartment buildings. Its portfolio covers 72 apartment complexes with 13,088 apartments across the Midwestern and Mountain states of Colorado, Minnesota, Montana, Nebraska, North Dakota and South Dakota. As of Sept. 2023, Centerspace had an occupancy rate of 94.4%.On Feb. 20, Centerspace, also known as Investors Real Estate Trust REIT, announced its fourth-quarter operating results. FFO of $1.22 beat the consensus estimate of $1.11 and revenue of $64.07 million also beat the consensus estimate of $63.99 million.At the same time, Centerspace announced its board approved a quarterly dividend of $0.75 per share, payable on April 8 to common shareholders at the close of business on March 28. The dividend is an increase from $0.73 per share. The annualized dividend of $3 yields 5.25%.Centerspace has gained 9.1% since touching a low of $2.26 on Feb. 13.Weekly REIT Report: REITs are one of the most misunderstood investment options, making it difficult for investors to spot incredible opportunities until it's too late. Benzinga's in-house real estate research team has been working hard to identify the greatest opportunities in today's market, which you can gain access to for free by signing up for the Weekly REIT Report.Read Next:Whole Foods' landlord has delivered a 15% net IRR for its investors since 2015. Check out the latest investment opportunities added to its platform.Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000. "ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!Get the latest stock analysis from Benzinga?APPLE (AAPL): Free Stock Analysis ReportTESLA (TSLA): Free Stock Analysis ReportThis article Four REITs That Just Raised Dividends originally appeared on Benzinga.com© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Benzinga

Four REITs That Just Raised Dividends

https://finance.yahoo.com/news/four-reits-just-raised-dividends-185129475.html

2832aae9-0fe0-37a4-a9a5-8bdabf21b4a3

ESS

Essex Property Trust ESS owns a robust property base in the West Coast market of the United States. It has a healthy balance sheet and is leveraging technology, scale and organizational capabilities to drive growth. However, an elevated supply in some markets and high interest rates are concerning.What’s Aiding It?The West Coast markets are characterized by higher median household incomes, an increased percentage of renters and favorable demographic trends. In addition, with high interest rates still in place, elevated home ownership costs have made renting apartment units a viable option.These factors are likely to aid demand, enabling the company to generate steady rental revenues in the upcoming period. We expect a year-over-year increase of 1.3% in the company’s rental and other property revenues in 2024.Essex Property is also banking on its technology, scale and organizational capabilities to drive margin expansion in its portfolio. It is making good progress on the technology front and leasing agents are becoming more productive by leveraging these tools. Such efforts are expected to have an incremental effect on the top-line and bottom-line growth, positioning the company to ride the growth curve.Essex Property maintains a healthy balance sheet with ample liquidity. It had $1.6 billion of liquidity as of Feb 2, 2024. Its unencumbered net operating income (NOI) to an adjusted total NOI stood at 92% in the fourth quarter of 2023. With a high percentage of such assets, the company can access secured and unsecured debt markets and maintain availability on the line.With solid liquidity position, manageable debt maturities and investment-grade credit ratings, Essex Property remains well-poised to bank on its growth opportunities. Moreover, the company’s trailing 12-month return on equity is 7.10% compared with the industry’s average of 4.54%. This reflects that the company is more efficient in using shareholders’ funds than its peers.Story continuesSolid dividend payouts are arguably the biggest attraction for REIT investors and Essex Property has been steadily increasing its payouts. ESS has increased its dividend six times in the last five years, and its five-year annualized dividend growth rate is 3.89%. Considering its low dividend payout ratio and decent balance sheet strength, the company is likely to maintain its dividend payout over the long run.Shares of this Zacks Rank #3 (Hold) company have gained 8.1% in the past three months compared with the industry’s rise of 5%.Zacks Investment ResearchImage Source: Zacks Investment ResearchWhat’s Hurting It?The continuation of the flexible working environment is leading to a shift in renter demand from higher cost and urban/infill markets. As such, the demand for some of the company’s properties in these markets is likely to be hurt and result in pressure on occupancy levels. The macroeconomic environment is expected to remain choppy in 2024, which will lead to below-average rent growth. The company has projected same-property revenue growth of 0.70-2.70% and net operating income to be within negative 1.10-2.30% growth in 2024.The struggle to lure renters will persist as supply volumes are likely to remain elevated in some of its markets in the upcoming period. Furthermore, the company faces competition from other housing alternatives, such as rental apartments, condominiums and single-family homes. Such a competitive landscape limits ESS’ ability to increase rents, thereby restricting its growth momentum to some extent.Another concern for Essex Property is the high interest rate. Elevated rates imply high borrowing costs for the company, which would affect its ability to purchase or develop real estate. For the first and second quarters of 2024, we expect interest expenses to rise 2.9% and 1.1%, respectively, on a year-over-year basis. Further, the dividend payout might seem less attractive than the yields on fixed-income and money-market accounts due to high interest rates in the near term.Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are UMH Properties UMH and Iron Mountain IRM, 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 UMH’s 2024 FFO per share has moved 2.2% upward in the past week to 95 cents.The consensus mark for IRM’s current-year FFO per share has been raised 3.5% northward in the past month to $4.38.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 reportIron Mountain Incorporated (IRM) : Free Stock Analysis ReportEssex Property Trust, Inc. (ESS) : Free Stock Analysis ReportUMH Properties, Inc. (UMH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Is it Wise to Retain Essex Property (ESS) in Your Portfolio?

https://finance.yahoo.com/news/wise-retain-essex-property-ess-155400487.html

8c47732c-caa1-3982-ae4f-3259e857f6a0

ETN

There are still overlooked stocks to buy among companies making equipment needed for datacenters’ AI build-out, according to Ken Laudan of Buffalo Funds. - MarketWatch photo illustration/iStockphotoAll eyes are on Nvidia Corp. this week — the company will announce its latest quarterly results after the close on Wednesday. It has been dominating the market for graphics processing units (GPUs) being deployed by datacenters for the rollout of artificial intelligence technology.Most Read from MarketWatchNvidia earnings send stock rocketing as company cheers AI ‘tipping point’I have $1.5 million in stocks and bonds. I asked my broker to convert my bonds to cash. He didn’t and my portfolio fell by $100,000. Can I sue?Palo Alto Networks’ stock suffers its worst day ever upon ‘abrupt pivot’Nvidia’s sheer dominance can be summed up by this one underrated number‘I’m dipping into my Roth IRA’: I’ve been unemployed for 5 months. I used to earn $10,000 a month. Do I sell my house?But during what he expects to be another year dominated by “AI enablers,” Ken Laudan, the portfolio manager of the Buffalo Large Cap Fund BUFEX BUIEX suggests considering three stocks of companies involved in network communications, data storage and power management as additional ways to ride the wave.The Buffalo Large Cap Fund is rated four stars (out of five) within Morningstar’s “Large Growth” fund category, with a three-year performance ranking in the top 15% among 1,119 funds. Nvidia NVDA was the fund’s fifth-largest holding as of Dec. 31, making up 4.6% of the portfolio.Before looking at Laudan’s three other stock picks, let’s take a look at estimates for Nvidia, updated Monday morning. Sales for the company’s GPUs took off during the middle of last year, so year-over-year comparisons of quarterly numbers are expected to be eyepopping. But analysts working for brokerage firms polled by FactSet expect Nvidia’s sequential growth to slow. Here are estimates for the Wednesday report, with revenue figures in billions.Estimate for quarter ended 1/29/2024Quarter ended 10/29/2023Quarter ended 07/30/2023Quarter ended 04/30/2023Quarter ended 01/29/2023Sales $20,395 $18,120 $13,507 $7,192 $6,051 Change from year-earlier quarter237%206%101%-13%-21%Change from previous quarter13%34%88%19%2%Earnings per share $4.59 $3.71 $2.48 $0.82 $0.57Change from year-earlier quarter705%1262%850%29%-52%Change from previous quarter24%50%202%44%110%Source: FactSetNvidia’s quarterly sales are expected to triple from those a year earlier, but to increase “only” 13% from the previous quarter. That would be a slowdown from three previous three quarters’ sequential growth rates.Story continuesDuring an interview with MarketWatch, Laudan said he expected another blowout quarter from Nvidia, with numbers well above the consensus estimates, because “even hyperscalers [among datacenter operators] are buying whatever GPUs they can get.”Nvidia’s stock was up 240% for one year through Friday, so it was no surprise to see warnings for investors, which may have helped lead to the largest decline for the stock in a year , on Monday.Here are some of the warnings:Three more AI stock picks as “enablers” dominateWhen Laudan discussed “AI enablers,” he listed well-known names as examples, including Nvidia and Taiwan Semiconductor Manufacturing Co. TSM, as well as the big three cloud services providers — Microsoft Corp. MSFT, Amazon.com Inc. AMZN and Alphabet Inc. GOOGL.He said that eventually (maybe in 2025) investors will direct more attention to “AI adapters,” which he described as “software-centric companies that sell a AI large-language model on top of their enterprise or vertical software stock to their clients.” As examples, Laudan cited what he called “the usual suspects,” including Adobe Inc. ADBE, ServiceNow Inc. NOW, Salesforce Inc. CRM, MongoDB Inc. MDB and Snowflake Inc. SNOW, adding that “you might even put S&P Global SPGI in there.”But for now, he suggested investors become familiar with three more AI enablers held by the Buffalo Large Cap Fund:CoherentCoherent Corp. COHR uses optical fibers, made of silicon carbide material, to manufacture various components of devices that need to withstand extreme temperatures. These can include parts used in vehicles and aircraft. But Laudan said he was holding shares of Coherent as a play on the AI build-out.Coherent has a 60% global market share for optical transceivers, according to Laudan.“You plug in one of these transceivers in a datacenter into a router or networking switch and it converts the network into optical signals,” he said. He described the transceivers as “a key enabler to improve data transmission among the AI servers” over the next few years.Laudan estimated that the total addressable market (TAM) for optical transceivers was about $1 billion in 2023, and said Coherent expected the TAM to expand to $6.5 or $7 billion by 2027.Pure StorageWhile most computer users would probably agree that it would be better to rely on flash storage than on hard drives with moving parts, Laudan said ”about 90% of data in the cloud is stored on spinning hard disk drives.”Pure Storage Inc. PSTG brought out its FlashBlade//E product last year — it is a flash storage array designed for commercial use, ”that on a gigabyte basis is the same price has spinning hard drives,” Laudan said. This means the total cost of ownership will be lower than that of spinning hard drives because of flash memory’s greater durability, he said.“The E product is a 75 terabyte product. They will come out with a 150 this year and a 350 in 2025. So that will drive the price even further down,” he said.Laudan said datacenters were already deploying the FlashBlade//E, which he described as a “door-opener” to “storage-as-a-service” offered by Pure Storage. This is a consumption-based subscription service which would improve the company’s revenue stream while potentially lowering datacenters’ storage costs even more, he said.Eaton ElectricEaton Corp. PLC ETN provides power management components for datacenters, aircraft, cars, trucks and machines. These include generators, transformers, switches, cooling systems and battery storage.With AI requiring so much raw processing power, datacenters will feed a “logarithmic” expansion of demand for electricity, which means a greater need for power management, Laudan said.He said Eaton was one of the five largest players in the space, and that it was also a major supplier of equipment for electric vehicle charging and for the aerospace industry. He described the company as a “U.S. version” of Schneider Electric SE FR:SU, which is based in France.Don’t miss: Nvidia is expected to be the best performer in the S&P 500 through 2025, by this measureMost Read from MarketWatchA majority of people would buy if mortgage rates fall to this level, survey showsWall Street keeps likening Nvidia to dot-com-era Cisco. Is the comparison justified?10-, 30-year Treasury yields end at highest levels since November following ugly 20-year bond auction, Fed minutesNatural-gas prices jump more than 12% after Chesapeake cuts production outlook‘I felt humiliated’: She slipped the waiter her credit card on her way to the restroom. Is it emasculating for a woman to pay for dinner on a first date?

MarketWatch

Three stocks of AI ‘enablers’ to consider as Nvidia sets up another possible surprise

https://finance.yahoo.com/news/three-stocks-ai-enablers-consider-150800220.html

0d636afe-2d8e-3cf1-9aed-038a4cda39d5

ETN

DUBLIN / ACCESSWIRE / February 22, 2024 / Intelligent power management company Eaton today announced it has earned a Leadership Level designation from CDP, the world's leading environmental disclosure platform, for the fifth consecutive year. Despite strengthened criteria each year due to the need for urgent climate action, Eaton continues to maintain its A- rating in the climate category, making the company a top performer among industry peers."We're honored to receive this recognition, which demonstrates our ongoing commitment to environmental transparency," said Harold Jones, chief sustainability officer and executive vice president, Eaton Business System, Eaton. "By participating in disclosure practices like reporting through CDP, we're able to collectively assess our gaps as a society and work together to address the critical climate issues we face today.""Disclosure works, and today we should take a short pause to celebrate the dedication to transparency and accountability shown by Eaton reporting through CDP this year," said Sherry Madera, chief executive officer, CDP. "A 1.5-degree future is still possible if the global community works in lockstep to get there."Eaton is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make products for the data center, utility, industrial, commercial, machine building, residential, aerospace and mobility markets. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we're accelerating the planet's transition to renewable energy sources, helping to solve the world's most urgent power management challenges, and building a more sustainable society for people today and generations to come.Story continuesEaton was founded in 1911 and has been listed on the New York Stock Exchange for more than a century. We reported revenues of $23.2 billion in 2023 and serve customers in more than 160 countries. For more information, visit www.eaton.com. Follow us on LinkedIn.Contact:Margaret Hagan+1 (440) [email protected] additional multimedia and more ESG storytelling from Eaton on 3blmedia.com.Contact Info:Spokesperson: EatonWebsite: https://www.3blmedia.com/profiles/eatonEmail: [email protected]: EatonView the original press release on accesswire.com

ACCESSWIRE

Eaton Earns Leadership Level Ranking From CDP for Climate Disclosure Making Company a Top Performer Among Industry Peers

https://finance.yahoo.com/news/eaton-earns-leadership-level-ranking-141500748.html

044f070f-dc58-34eb-b0a3-87f504044a50

ETN

Friday, March 8, 2024The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Chevron Corp. (CVX), Verizon Communications Inc. (VZ) and Eaton Corp. plc (ETN). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.You can see all of today’s research reports here >>>Shares of Chevron have underperformed the Zacks Oil and Gas - Integrated - International industry over the past year (-4.6% vs. +0.9%). The Zacks analyst believes based on a number of near-term challenges, Chevron appears to be a risky bet. Over the past year, the energy major has seen its stock price decline more than 10% compared with the S&P 500’s increase of 21%.The supermajor – with 60% liquids-weighted production – is highly exposed to the perils of oil price fluctuations. The drop in downstream segment earnings as a fallout of lower margins is a concern too while reserve replacement ratio remains weak, indicating challenges in replenishing produced energy.Moreover, it has been experiencing an increase in costs as a percentage of revenue. Finally, Chevron has been a laggard compared to its European peers to jump into the clean energy bandwagon. Considering these factors, the company is unlikely to return to favor anytime soon. This calls for a bearish stance on Chevron.(You can read the full research report on Chevron here >>>)Verizon’s shares have outperformed the Zacks Wireless National industry over the past year (+13.3% vs. +7.5%). The company reported healthy fourth-quarter 2023 results, with the top and bottom line beating the respective Zacks Consensus Estimate, driven by significant 5G adoption and wireless traction.It is offering various mix-and-match pricing in both wireless and home broadband plans, which has led to solid client additions. Focus on emerging growth services like cloud, security and professional services will likely reap long-term benefits. Its mmWave footprint delivers game-changing experiences for the densest parts of the network.However, lower wireline and wireless equipment revenues are major concerns. Huge promotional expenses and lucrative discounts to expand its customer base are weighing on margins. High capital expenditures for network upgrade and deployment of fiber assets across the country are headwinds. Muted guidance for 2024 is somewhat worrisome.(You can read the full research report on Verizon here >>>)Shares of Eaton have outperformed the Zacks Manufacturing - Electronics industry over the past year (+72.1% vs. +41.9%). The company’s ongoing research and development are allowing the company to develop new products to provide efficient power management solutions.It will benefit from improving end-market conditions, increasing demand from the new AI data center and contributions from its organic assets. Eaton is expanding via acquisitions and its rising backlog shows demand for its products. Its strategy to manufacture in the region of its end market has helped it cut costs.Yet, Eaton’s global operations expose it to unpredictable currency translation, cyber security threats, changes in tax rates and security breaches, which might impact operations. The shortage of raw materials and supplier insolvencies might impact production and operations.(You can read the full research report on Eaton here >>>)Other noteworthy reports we are featuring today include NVIDIA Corp. (NVDA), Canadian Pacific Kansas City Ltd. (CP) and Ford Motor Co. (F).Mark VickerySenior EditorNote: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>Story continuesToday's Must ReadChevron (CVX) to Gain Guyana Foothold with Hess BuyVerizon (VZ) Rides on Solid Subscriber Addition, 5G TractionNew Product Development, Wide Market Reach Aid Eaton (ETN)Featured ReportsCanadian Pacific KC (CP) Rides on Dividends Amid High CostsThe Zacks analyst is impressed with the company's efforts to reward its shareholders. However, elevated operating costs represent a headwind.Ford's (F) Pro Business Unit to be a Key Growth DriverPer the Zacks analyst, Ford's commercial arm, Ford Pro, will drive profits in 2024 on strong mix/volume. The unit's pretax profit is forecast to rise 18.5% year over year at the midpoint of the view.Higher Rates, Business Transformation to Aid BNY Mellon (BK)Per the Zacks analyst, global footprint and higher interest rates will keep aiding BNY Mellon. Also, its business transformation program will bolster market share and lead to higher profit margin.Accelerating Non-Trading Revenue Base Aids Nasdaq (NDAQ)Per the Zacks analyst, Nasdaq is set to grow on its focus toward Market Technology and Information Services businesses. However, increasing expenses weighing on margin expansion is likely a concern.Verisk (VRSK) Gains From Opta Buyout, Operational Risks StayPer the Zacks analyst, the Opta acquisition is expected to expand Verisk's footprint in the Canadian market. Chances of security breach remains as a concern.New Customers, Robust Omnipod 5 Sales Aid Insulet (PODD)The Zacks analyst is bullish about solid new customer gains and increasing volume growth through the U.S. pharmacy channel of Insulet. Also, the robust global uptake of Omnipod 5 seems encouraging.Strategic Buyouts to Aid Lithia (LAD), Rising Debt AilsThe Zacks analyst is optimistic about Lithia's strategic buyouts that are helping the auto retailer increase its market share and boost its portfolio. However, rising debt level remains a concern.New UpgradesNVIDIA (NVDA) Rides on Strong Adoption of GPUs, PartnershipsPer the Zacks analyst, rapid adoption of NVIDIA's GPUs in the gaming and datacenter markets is a key growth driver. Moreover, partnership with companies like Arrow, Baidu and Daimler is a tailwind.NetApp (NTAP) Benefits From Growing Demand For Hybrid CloudPer the Zacks analyst, NetApp's performance is gaining from continued strength in hybrid cloud business segment. Also, frequent product launch is a tailwind.Kidney Cancer Drug Cabometyx Drives Sales for Exelixis (EXEL)Per the Zacks Analyst, sales of the lead drug, Cabometyx, for kidney cancer have been driving revenues for the company while maintaining market share despite severe competition in the market.New DowngradesCactus (WHD) Grapples With Conservative Client SpendingPer the Zacks analyst, Cactus faces challenges as clients' conservative spending impacts demand for its services. Investors' demand for higher returns adds to cash flow concerns.Aaron's (AAN) Witnesses Sluggishness in Namesake SegmentPer the Zacks analyst, Aaron's namesake segment has been witnessing a lesser lease portfolio size and lease renewal rate. In fourth quarter, the Aaron's Business unit sales fell 8.7% year over year.Strong Free Cash Flow Generation Aids WESCO (WCC) ProspectsPer the Zacks analyst, WESCO benefits from its ability to generate solid free cash flow that helps it to invest in above-market growth.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 reportFord Motor Company (F) : Free Stock Analysis ReportChevron Corporation (CVX) : Free Stock Analysis ReportVerizon Communications Inc. (VZ) : Free Stock Analysis ReportEaton Corporation, PLC (ETN) : Free Stock Analysis ReportNVIDIA Corporation (NVDA) : Free Stock Analysis ReportCanadian Pacific Kansas City Limited (CP) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Top Stock Reports for Chevron, Verizon & Eaton

https://finance.yahoo.com/news/top-stock-reports-chevron-verizon-213000911.html

af8375ec-13f8-3aa7-a3a9-e68742cb65f7

ETN

For Immediate ReleaseChicago, IL – March 11, 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: Chevron Corp. CVX, Verizon Communications Inc. VZ Eaton Corp. plc ETN, NVIDIA Corp. NVDA and Ford Motor Co. F.Here are highlights from Friday’s Analyst Blog:Top Stock Reports for Chevron, Verizon and EatonThe Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Chevron Corp., Verizon Communications Inc. and Eaton Corp. plc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.You can see all of today's research reports here >>>Shares of Chevron have underperformed the Zacks Oil and Gas - Integrated - International industry over the past year (-4.6% vs. +0.9%). The Zacks analyst believes based on a number of near-term challenges, Chevron appears to be a risky bet. Over the past year, the energy major has seen its stock price decline more than 10% compared with the S&P 500's increase of 21%.The supermajor – with 60% liquids-weighted production – is highly exposed to the perils of oil price fluctuations. The drop in downstream segment earnings as a fallout of lower margins is a concern too while reserve replacement ratio remains weak, indicating challenges in replenishing produced energy.Moreover, it has been experiencing an increase in costs as a percentage of revenue. Finally, Chevron has been a laggard compared to its European peers to jump into the clean energy bandwagon. Considering these factors, the company is unlikely to return to favor anytime soon. This calls for a bearish stance on Chevron.(You can read the full research report on Chevron here >>>)Verizon's shares have outperformed the Zacks Wireless National industry over the past year (+13.3% vs. +7.5%). The company reported healthy fourth-quarter 2023 results, with the top and bottom line beating the respective Zacks Consensus Estimate, driven by significant 5G adoption and wireless traction.It is offering various mix-and-match pricing in both wireless and home broadband plans, which has led to solid client additions. Focus on emerging growth services like cloud, security and professional services will likely reap long-term benefits. Its mmWave footprint delivers game-changing experiences for the densest parts of the network.However, lower wireline and wireless equipment revenues are major concerns. Huge promotional expenses and lucrative discounts to expand its customer base are weighing on margins. High capital expenditures for network upgrade and deployment of fiber assets across the country are headwinds. Muted guidance for 2024 is somewhat worrisome.(You can read the full research report on Verizon here >>>)Shares of Eaton have outperformed the Zacks Manufacturing - Electronics industry over the past year (+72.1% vs. +41.9%). The company's ongoing research and development are allowing the company to develop new products to provide efficient power management solutions.It will benefit from improving end-market conditions, increasing demand from the new AI data center and contributions from its organic assets. Eaton is expanding via acquisitions and its rising backlog shows demand for its products. Its strategy to manufacture in the region of its end market has helped it cut costs.Yet, Eaton's global operations expose it to unpredictable currency translation, cyber security threats, changes in tax rates and security breaches, which might impact operations. The shortage of raw materials and supplier insolvencies might impact production and operations.(You can read the full research report on Eaton here >>>)Other noteworthy reports we are featuring today include NVIDIA Corp. and Ford Motor Co..Story continuesWhy 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]                        https://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 reportFord Motor Company (F) : Free Stock Analysis ReportChevron Corporation (CVX) : Free Stock Analysis ReportVerizon Communications Inc. (VZ) : Free Stock Analysis ReportEaton Corporation, PLC (ETN) : Free Stock Analysis ReportNVIDIA Corporation (NVDA) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

The Zacks Analyst Blog Highlights Chevron, Verizon Communications, Eaton, NVIDIA and Ford Motor

https://finance.yahoo.com/news/zacks-analyst-blog-highlights-chevron-143500838.html

1991eefb-5e54-31f9-a8de-45c8a6a8b611

ETR

Entergy (NYSE:ETR) Full Year 2023 ResultsKey Financial ResultsRevenue: US$12.1b (down 12% from FY 2022).Net income: US$2.36b (up 114% from FY 2022).Profit margin: 19% (up from 8.0% in FY 2022). The increase in margin was driven by lower expenses.EPS: US$11.14 (up from US$5.40 in FY 2022).earnings-and-revenue-growthAll figures shown in the chart above are for the trailing 12 month (TTM) periodEntergy EPS Beats Expectations, Revenues Fall ShortRevenue missed analyst estimates by 8.3%. Earnings per share (EPS) exceeded analyst estimates by 62%.Looking ahead, revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Electric Utilities industry in the US.Performance of the American Electric Utilities industry.The company's shares are up 2.3% from a week ago.Risk AnalysisIt's necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Entergy (at least 2 which make us uncomfortable), and understanding them should be part of your investment process.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.

Entergy Full Year 2023 Earnings: EPS Beats Expectations, Revenues Lag

https://finance.yahoo.com/news/entergy-full-2023-earnings-eps-120904017.html

173ce05f-495b-3df2-97c0-98d876dee796

ETR

NORTHAMPTON, MA / ACCESSWIRE / February 26, 2024 / Entergy CorporationBY: CRISTINA DEL CANTO | SENIOR COMMUNICATIONS SPECIALISTThe United Way of Northern New Jersey invited Entergy's CEO Drew Marsh to be a keynote panelist at the National ALICE Summit that was held last month in New Orleans. The summit focused on supporting Asset Limited, Income Constrained, Employed individuals. ALICE represents the growing number of families who earn a little more than the federal poverty level but still struggle to afford basic needs like food, housing, childcare transportation, health care and technology.During the panel, Marsh emphasized Entergy's commitment to assisting ALICE customers and communities across our service area of Arkansas, Louisiana, Mississippi and Texas. Marsh shared the panel with Gianetta Jones, senior vice president and chief people officer for Coca-Cola Bottling Company. The panel discussion was moderated by LaMont Bryant, who heads Ethicon and Johnson & Johnson MedTech Research and Development.Throughout the conversation, Marsh highlighted Entergy's programs that help ALICE households and communities, including customer bill payment assistance and free tax preparation services, as well as volunteer support from the company's 12,000 employees. Entergy uses data from ALICE reports in each state to partner with regulators and United Way affiliates in designing shareholder-funded bill assistance programs tailored for ALICE residents living in our service area. In total, these initiatives have provided $15 million in bill payment support to numerous ALICE households in the past two years.Marsh also cited the Earned Income Tax Credit, or EITC, as a crucial poverty reduction program, emphasizing that Entergy has made it a significant volunteer initiative since 2009."Each year, our employee volunteers collaborate with the IRS, United Way affiliates and nonprofits to provide free tax preparation services for our low-income customers living in our service area," said Marsh. "Since this service began, we have helped 200,000 families access $300 million in EITC refunds. This impactful initiative highlights the importance of supporting and uplifting ALICE households in our communities."Story continuesDuring the discussion, Marsh stressed the importance of advocating for the ALICE population, who are, at times, overlooked because they are living just above the federal poverty level but, when faced with a life-threatening accident or medical illness, they too must decide between paying for groceries, medicine or electricity.Marsh emphasized the vital role businesses and corporations play in supporting ALICE households through education and advocacy on public policies at the local, state and federal levels. Supporting ALICE households aligns with our commitment to enhance the lives of our customers, employees and communities. By providing essential resources and assistance to ALICE families, Entergy aims to create a brighter future for everyone. Learn more about how we serve our communities.View additional multimedia and more ESG storytelling from Entergy Corporation on 3blmedia.com.Contact Info:Spokesperson: Entergy CorporationWebsite: https://www.3blmedia.com/profiles/entergy-corporationEmail: [email protected]: Entergy CorporationView the original press release on accesswire.com

ACCESSWIRE

Entergy CEO Advocates for ALICE Households at United Way Summit

https://finance.yahoo.com/news/entergy-ceo-advocates-alice-households-174500999.html

21994b9e-5257-3c5d-b0eb-0ba56caf7df3

ETR

NORTHAMPTON, MA / ACCESSWIRE / March 11, 2024 / Entergy CorporationBY: KAELEN DELAUNE | COMMUNICATIONS SPECIALIST IIThe Edison Electric Institute has named Entergy an Outstanding National Key Accounts Customer Engagement 2023 Award winner.Hundreds of the nation's leading chain and multi-site businesses, including 7-Eleven, Amazon, Intel, Starbucks, The Home Depot and Walmart, cast votes to recognize electric utilities that are delivering exceptional service to their corporate customers."Our corporate customers are increasingly seeking renewables to power their businesses," said Treena Mason, business center manager at Entergy. "Working directly with these customers, we developed a portfolio of green energy offerings to meeting customers' sustainability needs."Our growing portfolio of sustainable energy solutions includes our Entergy Renew digital platform and electric vehicle fleet solutions.Through Entergy Renew, our corporate customers can subscribe to and benefit from clean, renewable energy resources to reduce their emissions to their desired commitment level.Through our eMobility platform, we offer corporate customers resources like free consultations to help them calculate the potential cost savings of going electric."We are grateful for this recognition from our commercial and industrial customers," said Mason. "We feel privileged to power life and business for our customers, and we're committed to ongoing enhancements to the customer experience."The Entergy service area is home to the largest industrial region in the United States. Our ongoing focus on fostering positive relationships with our customers helps position us as their partner of choice.To learn about decarbonization solutions available in your region, visit renew.entergy.com. To learn about our electric mobility offerings, visit emobility.entergy.com.View additional multimedia and more ESG storytelling from Entergy Corporation on 3blmedia.com.Story continuesContact Info:Spokesperson: Entergy CorporationWebsite: https://www.3blmedia.com/profiles/entergy-corporationEmail: [email protected]: Entergy CorporationView the original press release on accesswire.com

ACCESSWIRE

Corporate Customers Recognize Entergy for Outstanding Customer Experience

https://finance.yahoo.com/news/corporate-customers-recognize-entergy-outstanding-164500152.html

dc1aa65c-59f4-3634-a14b-13e7e05030cd

ETR

Entergy Louisiana has asked state officials for approval to build a floating natural gas-fired power plant that would serve areas along the Gulf Coast. The utility’s recent March filing with the Louisiana Public Service Commission calls for construction of a $411 million, 112-MW floating facility called the Bayou Power Station. The plant would be located near Leeville, southwest of New Orleans. Phillip May, president and CEO of Entergy Louisiana, in a statement said the Bayou station would be “a unique solution” to supply electricity to areas important to Louisiana industry, including the energy, tourism, and seafood sectors. The utility, a unit of New Orleans-based Entergy, in its filing said the floating facility would be located atop a barge near a power substation in Leeville. It would be designed to provide backup power, particularly during outages, and would be part of a microgrid system that would serve commercial and industrial interests, including industries in the Port Fourchon area, as well as residential customers in the areas of Golden Meadow, Leeville, and Grand Isle.Investment in Region’s Power InfrastructureThe utility in a news release said, “This transformative project represents a significant investment in the region's energy infrastructure, aimed at bolstering resilience and reliability for communities and industries along the coast that are vital to local and national economies.” The utility said the plant would be “equipped with black-start capability and the ability to rapidly start-up and ramp down.” State officials have said Port Fourchon services about 95% of the Gulf of Mexico’s deepwater energy production, including as much as 15% of the nation’s domestic and foreign oil business. The area from Grand Isle to Golden Meadow is a hub for the seafood industry. Entergy Louisiana in announcing the project said the Bayou Power Station would to support the reliability and resilience of the power system in the region along the coast. “Whether you’re located in a big city, small town or along the coast, Entergy Louisiana is committed to providing our customers with affordable and reliable power,” said May. “Our customers in areas like Grand Isle, Golden Meadow and Port Fourchon play an important role in our state’s tourism and seafood industries and energy sector, and the Bayou Power Station is a unique solution to meeting their power needs into the future.” The utility in a news release said, “The addition of Bayou Power Station would complement projects that have been completed over the past couple years to build resilience into the electric system near the coast. Some examples of these projects include the Caminada substation, which was elevated 20 feet off the ground on a concrete platform; upgrading around seven miles of transmission lines with about 80 steel structures between Cut Off and Golden Meadow; and undergrounding around eight miles of distribution lines along Louisiana Highway 1 from Leeville to Grand Isle and taking strategic steps to fortify the overhead electric system in the area.” —Darrell Proctor is a senior associate editor for POWER (@POWERmagazine).

POWER Magazine

Floating Gas-Fired Power Station Planned Off Louisiana Coast

https://finance.yahoo.com/news/floating-gas-fired-power-station-181941364.html

023d04ff-1199-361c-b2a5-9104f145543c

ETSY

The Chinese online marketplace is taking the U.S. by storm as Etsy and Wayfair are already struggling to expand their audience.Continue reading

The Wall Street Journal

Temu’s U.S. Entry Is an Orange Flag for Etsy

https://finance.yahoo.com/m/2d736b28-3fa6-3a55-b515-9c46b7c90387/temu%E2%80%99s-u-s-entry-is-an.html

2d736b28-3fa6-3a55-b515-9c46b7c90387