|Bid||102.69 x 800|
|Ask||102.71 x 2200|
|Day's Range||102.08 - 102.89|
|52 Week Range||81.81 - 106.21|
|Beta (3Y Monthly)||0.66|
|PE Ratio (TTM)||35.92|
|Earnings Date||Aug 15, 2019|
|Forward Dividend & Yield||2.12 (2.06%)|
|1y Target Est||108.47|
The Fed has blamed low inflation on "transient" declines in clothing prices, but the underlying story is complicated by longer-term trends, seasonality, and the way apparel prices are collected.
Costco (NASDAQ:COST) stock continues its march higher. With stockholders having recovered all of their losses from last fall's sell-off, many might wonder where Costco stock goes from here. Amid the company's successes, valuations remain higher than that of most peers.Source: Shutterstock Moreover, with the stock price returning to the highs of last September, investors may want some assurance that COST stock will not see a double top. However, given the company's past growth and prospects for future expansion, I see COST stock as a buy on any pullback. Costco Stock Is Expensive, but Worth ItThose wanting Costco bargains should look inside their warehouse instead of at Costco stock. COST currently trades at a forward price-to-earnings (PE) ratio of around 29.4. Although one can argue that that comes in lower than Amazon (NASDAQ:AMZN), Amazon derives most of its profit outside of retail. Either way, Costco trades at a valuation premium above that of Walmart (NYSE:WMT), Target (NYSE:TGT), and its peer on the eastern seaboard, BJ's Wholesale (NYSE:BJ).InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 12 Reasons Facebook Stock Will Likely Sink 25%-35% Over the last five years, Costco's PE has averaged around 29.4. Hence, Costco stock has not moved far ahead of its average. Moreover, it benefits from a high degree of customer loyalty. This shows in a renewal rate of around 90% and its profit growth. Yes, customers pay a membership fee that amounts to pure profit for Costco. But in exchange, they pay little more than the cost of goods sold plus overhead for items. That may help explain why analysts have forecasted that earnings will increase 12.3% this year and 6.9% in fiscal 2020. Costco Can Keep Expanding for DecadesI also like the prospects for expansion. Yes, they currently operate in 44 states, and they cover most of America's large metros. However, tremendous potential exists in somewhat smaller markets. For example, in Texas, Costco operates only three warehouses located outside of the San Antonio, Austin, Houston, and Dallas-Fort Worth metro areas. Moreover, the company only operates two warehouses in Georgia outside of metro Atlanta. Hence, domestic saturation remains years away.Moreover, Costco has succeeded with international expansions. It has avoided the high-profile failures such as Target Canada or the pullouts like Walmart experienced in Germany and Brazil. In addition to Canada and Mexico, the company continues to add warehouses in Europe, East Asia and Australia. When to Buy Costco StockThe question for investors revolves around when to buy? Those holding out for a forward PE like the current 11.5 on Target will likely end up disappointed. However, Costco stock goes on sale periodically. During last fall's stock sell-off, COST fell as much as 22% before it began to recover. COST also saw corrections during the middle of the decade, as investors feared an "Amazon takeover" of retail. Anytime Costco has offered a 10-20% discount from its 29 forward PE, investors have profited by buying. I do not expect that to change soon. The Bottom Line on Costco StockInvestors should consider Costco stock a buy on any significant pullback. At just under 30 times forward earnings, some buyers may balk at paying such a multiple for a retailer. Moreover, with the stock trading at levels from which it previously fell, some might want to buy COST stock at this level.However, Costco stock has traded at PE in the high 20s or low 30s for several years. Moreover, for most of that time, profits have maintained a double-digit growth rate on average. Further, outside of North America, Costco has succeeded where Walmart and Target have failed. This ensures that the company can continue to add new warehouses for decades. * 6 Stocks to Buy for This Decade's Massive Megatrend The stock trades marginally above its average historical multiples. For this reason, I see it as a buy only for long-term investors. However, industry or macroeconomic conditions often lead to corrections in COST. If Costco stock falls to a PE ratio in the mid-20s or lower, investors should buy in bulk.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential Compare Brokers The post Buy Costco Stock on Any Pullback appeared first on InvestorPlace.
The Dow Jones and other stock indexes held modest gains Friday afternoon after Thursday's sell-off. Boeing stock outperformed in the Dow.
Best Buy is expanding the services it offers, going beyond the consumer electronics at the core of its business.
Amazon (NASDAQ:AMZN) is a worldwide phenomenon. That much is something few can argue about. In the past three years, AMZN stock is up 164%, and that includes all the hiccups and rallies. That's nearly 54% annual gains. And if you go back even further, that growth trend continues.Source: Shutterstock It's this regularity of outsized performance that keeps AMZN stock in the portfolios of all the major hedge funds, mutual funds and institutional portfolios.But this universal love wasn't always there. Historically, Amazon stock always got a sideways glance from big investors. The company would (and still does) pump most of its profits back into growth projects -- entertainment, groceries, cloud storage, supply chain management, etc. -- rather than banking some for a rainy day or giving it back to investors as a dividend.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat is what traditional companies have done. And when AMZN started growing, it was assumed it would do the same. It didn't.Every quarter analysts waited for results and would trade the stock for every tick up and down in its earnings and revenue, never quite sure whether to buy in deeper or run far, far away. * 10 Tech Stocks Walloped by the Huawei Ban But after a number of years, and especially after its Amazon Web Services started printing money, analysts got on the bull train for the long run. AWS launched in 2006, and is now the world's largest cloud provider.Granted in recent years, Microsoft (NASDAQ:MSFT) has been growing market share, as has IBM (NYSE:IBM), but AWS is so massive, it's even working joint ventures with its competitors.Last year, AWS was responsible for 58% of AMZN's operating income. The division generates about $26 billion, a 45% increase from 2017. Given that margins are around 30%, that's a lot of cash that gets dumped back into new products and services.Its moves into artificial intelligence (AI) via its Alexa platform is a good illustration on the big-thinking that powers AMZN stock.These devices are compelling on their own and are beginning to power many partnerships with delivery services, subscription services and the like. But AMZN sees beyond that. The company has partnered with a builder in Southern California that is currently doing a pilot project with AMZN to build smart houses powered -- and protected -- by AMZN AI.Also, coincidentally, Amazon is starting to sell DIY houses on Amazon.com for $20,000. Free shipping of course. And you can bet that in coming iterations, there will be pre-wired Alexa-friendly houses in the mix.As for its retail operations, there may some issues as the trade war heats up, which means there will be selling now in anticipation of a quarter or two of earnings disappointments. But that has never stopped AMZN in the past.It is still the one to beat when it comes to e-commerce, with retail players like Walmart (NYSE:WMT) and Target (NYSE:TGT) still playing catch-up.Yes, there may be some turmoil for AMZN stock near term, but that just makes it a better buy long term.Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential Compare Brokers The post Not Even a Trade War Can Stop Amazon Stock appeared first on InvestorPlace.
Walmart is a retail titan, but earnings have struggled to grow amid fierce competition. Is Walmart stock a buy in 2019?
Something really interesting has happened to Plug Power (NASDAQ:PLUG). And it's not just the fact that the PLUG stock price has doubled so far in 2019. More interestingly, investors actually seem to have started to trust Plug Power stock.After all, Plug Power's earnings earlier this month missed analysts' average estimates badly. And while the miss was driven in part by accounting vagaries, even aside from those, the quarter looked relatively weak. * 5 Safe Stocks to Buy This Summer After 20 years on the public markets, and a wealth of disappointment, one might think the PLUG stock price would plunge on that type of news. That's doubly true, given how important 2019 is to Plug Power stock. Plug Power's management has promised positive adjusted EBITDA this year, a long-awaited (emphasis on both "long" and "awaited") target for Plug Power. It hardly looked like Plug Power was off to a good start.InvestorPlace - Stock Market News, Stock Advice & Trading TipsPLUG stock price did drop briefly, but it rebounded quickly. In fact, it now trades where it did before the report. Investors are giving PLUG the benefit of the doubt, which history suggests is dangerous. Will this time finally be different? The Case Against Plug Power StockThe case against PLUG at the moment is reasonably simple: this is the ultimate "show-me" stock, and it hasn't shown enough. Its Q4 results were positive in one way, but incredible in another: as Bloomberg noted, the company generated positive adjusted EBITDA for the first time in 20 years.In, those two decades Plug Power stock has repeatedly disappointed investors. On a split-adjusted basis, the PLUG stock price touched $1,000 during the dot-com bubble. It hit just above $7 in 2011, and $6 in 2014. A major deal with Amazon.com (NASDAQ:AMZN) caused PLUG stock price to double in 2017, but the gains were gone within 18 months.Given PLUG's history, there seems at least a significant risk that the 100%+ rise in PLUG stock price this year is another head fake. The company is targeting positive adjusted EBITDA this year, but even its operating cash flow will likely come in negative. And while PLUG stock price might seem cheap at about $2.50, Plug Power stock isn't cheap. The stock trades at 2.5 times its billings guidance for this year and about two times analysts' consensus revenue estimates for next year.It is, as I wrote even when I recommended PLUG stock, the ultimate "this time is different" story. Given that, as the old adage goes, those are the four most dangerous words in investing. investors should be cautious at the very least. The Case for PLUGBut maybe, just maybe, this time is different. Amazon isn't the only key customer: Walmart (NYSE:WMT) and Procter & Gamble (NYSE:PG) are on board as well. Plug Power CEO Andy Marsh has teased additional announcements this year, and backed his predictions by personally buying Plug Power stock.A pilot test with FedEx (NYSE:FDX) means Plug Power could expand beyond forklifts. Its debt has been refinanced, and Plug Power has roughly $100 million in cash on its balance sheet.Meanwhile, PLUG has started to deliver on its promises. Marsh predicted positive adjusted EBITDA for the second half of 2018, and Plug Power did reach that goal. Its 2019 guidance was well above expectations, helping to bring about the recent rally of Plug Power stock.And PLUG's underlying business model has some value. There's a reason investors have been upbeat about its outlook, in various forms, for twenty years. Hydrogen fuel cells offer real promise , and the backing from Amazon and Walmart (both of whom own warrants on Plug Power stock) doesn't hurt as well.History might not be favorable for Plug Power stock, but at this point it's just that: history. A stock is based on the net present value of its future cash flow. Plug's future looks much brighter than it has in quite a while. Be Careful Out ThereGoing forward, the run of PLUG looks like it may have gone too far, too fast. There is a lot riding on its Q2 results; investors are not going to tolerate another miss. And as seen in December, Plug Power stock can fall quickly if macro worries arise.Still, PLUG has an intriguing story, and if Plug Power can deliver, PLUG stock price can rise by a large amount. Investors are starting to believe this time is different; if they're right, the rally will continue.As of this writing, Vince Martin has no positions in any securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential Compare Brokers The post This Time Might Actually Be Different for Plug Power Stock appeared first on InvestorPlace.
Editor's note: InvestorPlace's Earnings Reports to Watch is updated weekly. Please check back next week for our latest earnings picks.Earnings season is winding down -- and that doesn't seem like a good thing. Since May 3, roughly when the earnings calendar peaked, the S&P 500 has dropped more than 4%. Without strong earnings reports as a catalyst, investor attention has turned to external factors.Those include fears of a trade war, which augment broader worries that the economy, and the market, may be nearing a peak. Earnings reports have been strong enough to support new all-time highs: three-quarters of the S&P 500 components that had reported through May 10 beat consensus earnings estimates.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe question is what comes next.The earnings calendar this week likely isn't enough to move the market. But several key earnings reports could highlight the nature of the challenges facing key sectors at the moment -- and how those industries plan to respond. A key retailer will try and follow the strong trend set by leaders like Walmart (NYSE:WMT) and Target (NYSE:TGT). The biggest name in one of tech's once-hot sectors aims to reverse recent weakness. And a Chinese growth stock is one of several companies that should not only give more detail on that country's economy, but show where investor sentiment sits at the moment. * 5 Safe Stocks to Buy This Summer In a clearly nervous market, there's plenty to keep an eye on next week. Nio (NIO)Source: Shutterstock Earnings Report Date: Tuesday, May 28, before market openIt has unsurprisingly been a tough stretch for Nio (NYSE:NIO). The electric vehicle company often is referred to as the Tesla (NASDAQ:TSLA) of China. Tesla shares are plunging -- and so are many Chinese issues. NIO has fallen 60% from early March highs and sits 37% below its IPO price.That obviously sets up a key earnings report for Nio on Tuesday morning. But it's not the only struggling Chinese stock looking for a catalyst. Momo (NASDAQ:MOMO) also reports on Tuesday -- and has lost one-third of its value since early April. The next day, 58.com (NYSE:WUBA) will try and get back some of the 20% it has lost in just the last three weeks.The three reports set up an interesting test case for Chinese stocks. Strong reports haven't helped the likes of Alibaba (NYSE:BABA) and JD.com (NASDAQ:JD) -- but the group as a whole has become even cheaper. If any of the three companies reporting next week can top expectations, will investors see that as a chance to buy the dip? Or is there basically nothing China's publicly traded companies can do to change sentiment at this point? Palo Alto Networks (PANW)Earnings Report Date: Wednesday, May 29, after market closeCybersecurity stocks like Palo Alto Networks (NYSE:PANW) were a hot sector not all that long ago. But they've pulled back of late: PANW stock itself has dropped about 9% in the past three weeks.If any company can reverse the sector's trend, it's Palo Alto. But even strong earnings may not be good enough. Palo Alto posted a blowout Q2 -- but as I wrote at the time, the headline beat obscured real concerns about valuation. * 6 Stocks to Buy for This Decade's Massive Megatrend That valuation has come in, but the broader cybersecurity opportunity remains. And so PANW stock, too, looks like a bit of a test case. Do investors rush in if Palo Alto can post a beat-and-raise third quarter? Or are the cheaper multiples now assigned PANW the new normal? Dollar General (DG)Source: Mike Mozart via FlickrEarnings Report Date: Thursday, May 30, before market openRetail earnings for the most part have been solid. Walmart stock moved higher after its earnings beat, though the gains didn't hold. Target got an enormous boost after an even more impressive quarter.That puts pressure on Dollar General (NYSE:DG) stock to step up as well. Both DG stock and rival Dollar Tree (NASDAQ:DLTR) report on Thursday morning, and there's really no excuse for anything short of another beat. The economy is strong enough and retail is strong enough. Both Dollar General and Dollar Tree took some share from Walmart earlier this decade, one reason why that giant's same-store sales growth slowed.Any weakness from the dollar stores might suggest that Walmart -- and maybe even Target -- are taking those customers back. Meanwhile, few retailers can give a more direct, and more broad, picture of tariff impacts, meaning that likely will be a focus of discussion on post-earnings conference calls.After reaching all-time highs earlier this month, DG stock, in particular, isn't necessarily priced for much in the way of disappointment. Dollar General is unquestionably a wonderful stock, one I've recommended for some time and as an investment that can be held for decades. But from a short-term standpoint, Dollar General stock has little room for error on Thursday.As of this writing, Vince Martin has a bearish options position in Tesla. He has no positions in any other securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential Compare Brokers The post 3 Earnings Reports to Watch Next Week appeared first on InvestorPlace.
Best Buy (NYSE:BBY) reported earnings yesterday and after a brief pop, BBY stock fell and closed down 4.8% on the day. With that in mind, I want to discuss the support zone below and identify the potential trades from here.Source: Austin Kirk via FlickrFirst, let's set the investing environment: So far, 2019 has been good to the indices which was a positive change from how 2018 ended with a crash into Christmas. However, this week it's starting to feel like December again. But this time it's different.So let's start with the macroeconomic picture. Companies are still delivering strong report cards but they are guiding cautiously because of geopolitics. So investors are hesitant to celebrate the actual results for fears of coming weakness.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis is the fault of the economic war that the U.S. and China are having and what makes it worse is that they are negotiating it in the public medium instead of how grown adults should do in a formal sit-down of leaders. Until the two presidents meet face to face, the stock markets will be a slave to the unpredictable headlines like we are having this week. * 10 Names That Are Screaming Stocks to Buy But as I stated above, this is not the same situation from December because this time the U.S. Federal Reserve is on the stock market side. Last year, they were part of the problem but since then they've flipped 180 degrees to the point that they are more likely to cut rates than raise them. So if the economy falters the Fed net is ready for us. How to Approach BBY StockBest Buy stock came into the earnings up almost 30% year-to-date, so it can afford to lose a bit without changing the overall trend. Investors punished it hard but therein lies the pleasant surprise. After seeing management's grim tariff warnings, I'd expect it to be down much more.So this less dramatic reaction is the good news. But you shouldn't necessarily catch this falling knife without some safety, or it could end up costing some digits.Fundamentally, Best Buy stock is cheap from an absolute basis as it sells at a price-to-earnings ratio of 12X.As for the business model, I am not a fan. I am a former engineer so I am a like tech. And I can't even remember when was the last time I went to a BBY store. However, consensus on Wall Street is that consumers need to touch the tech before they buy it.I see this as a minor selling point to it. So, for now, I bet they are still doing as well as they are because they are the only gig in town. I can find all I need at Amazon (NASDAQ:AMZN), Ebay (NASDAQ:EBAY) and Costco (NASDAQ:COST) or Walmart (NYSE:WMT).Nevertheless, BBY management reported a decent quarter as they met or beat most metrics, including comparable sales, especially in the U.S. The problem came from the tone that management had for ongoing risks. The outgoing CEO Hubert Joly painted as dire a picture as can be with regards to the risks of the tariff war. He spoke of increased costs and their impact on shoppers.This alone should have had a worse effect on BBY stock than it did … especially given that this happened on a very bad market day and while overall sentiment was negative. So the dip on Thursday came with as much force as it could have. This usually constitutes a legitimate test of support.This is similar to what happened last Christmas when stocks collapsed on similar circumstances. So once this tizzy passes, BBY stock should have a great opportunity for a bounce. It is also important to note that finding perfect bottoms is rare, so I don't suggest taking a full position all at once.It's best to start with one tranche and leave room to add at lower prices if the selling persists. Even then, you should also place stop loss levels that fit my personal preferences and tastes.If you already own the shares, then this is not the time to panic out of them for as long as the reason you took the position is still viable. This depends entirely on personal preferences and time frames. * 7 Marijuana Stocks to Play the CBD Trend Technically, there are a few key lines to know. First, there still is an open gap to $61.50, so the selling could continue, especially if the overall market sentiment doesn't improve. We are going into a long weekend and traders might want to flatten out for headline fears.But this whole zone has been pivotal for months so it's likely to be sticky. So I'd watch for a break below Thursday's low at $64.4 and anticipate another wave lower if that happens.Conversely, I shouldn't expect an immediate reversal and rally. First, I need to see a bottom. Then a trend of higher lows to challenge the descending trend of lower highs. The buyers will probably not come in until they see a breach of these descending trend lines. So patience is important to avoid being too early. There will be resistance at $70 and around $75.5 once they get there.Simply stated, the earnings selloff is testing Best Buy stock's support. If it holds, then there is the opportunity to trade it from the long side like December.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential Compare Brokers The post The Dip in Best Buy Stock Is Not An Endless Abyss appeared first on InvestorPlace.
Walmart Inc. will participate in Bernstein’s 35th Annual Strategic Decisions Conference on Thursday, May 30. A discussion with Brett Biggs, Walmart executive vice president and chief financial officer, will be webcast live through the “Events” link at www.stock.walmart.com.
Key Takeaways from Target’s Q1 Results(Continued from Prior Part)Earnings surpass estimateTarget (TGT) posted stronger-than-expected bottom-line results for the first quarter of fiscal 2019. Target’s adjusted EPS of $1.53 came in well ahead of
The United States increased tariffs on $200 billion in Chinese imports to 25% from 10% last week. U.S. President Donald Trump has also threatened an additional round of tariffs on $300 billion that would cover nearly everything imported from China to the United States. BEST BUY CO INC: "The impact of tariffs at 25% (proposed to be enacted) will result in price increases and will be felt by U.S. consumers," CEO Hubert Joly said.
Plug Power (NASDAQ:PLUG) has moved higher in recent months despite an earnings miss and continued losses. The Latham, New York-based maker of hydrogen fuel cells has struggled for years as its technology fights to gain mainstream acceptance. Although recent progress could justify a speculative position in Plug Power stock, the company may find itself eclipsed by a principal peer.Typically, an equity such as PLUG would not gain investor attention. However, its prospects improved in April 2017 when Amazon (NASDAQ:AMZN) agreed to buy $600 million worth of Plug Power's hydrogen fuel cells to power its forklifts.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUnfortunately, since the announcement of that deal more than two years ago, Plug Power has seen little net growth. This is despite attracting business from Walmart (NYSE:WMT), GE (NYSE:GE), and other prominent customers. Moreover, the earnings miss for the first quarter intensified the selloff. * 6 Stocks to Buy for This Decade's Massive Megatrend Plug Power Stock and TechnologyPLUG stock has increased in value for most of the year as analysts forecasted a possible profit next year for its peer, Bloom Energy (NYSE:BE). Also, even though PLUG fell after earnings, it recovered the post-earnings loss quickly. Now, investors wonder if that move higher can continue.Still, Plug Power remains mired in losses. Also, most of its direct peers find themselves in the same market position. Both FuelCell Energy (NASDAQ:FCEL) and Ballard Power Systems (NASDAQ:BLDP) also remain money-losing penny stocks.Traders would likely forgive the losses if the market would more widely embrace fuel cells. However, consumers have instead bought the electric cars made by Tesla (NASDAQ:TSLA) and others.Tesla enjoys a marketing, production, and name recognition advantage. It also benefits from a considerable lead in both refueling stations and cars on the road.However, refueling has become the area where Plug Power and other fuel cell companies could compete with Tesla. Refueling with fuel cells occurs in fewer than 10 minutes. Tesla cars require more than an hour under the best of conditions. That would presumably play into the hands of Plug Power stock.Moreover, Tesla does not offer much of an advantage regarding production costs. In Japan, the Mirai made by Toyota (NYSE:TM) costs $50,000 after the Japanese government's $20,000 subsidy. This comes in lower than a Tesla Model S. Still, Toyota currently builds only about 10 Mirai cars per day, calling into question how serious Toyota is about fuel cell technology. Choose BE over PLUG StockStill, this might give Plug Power stock the fuel it needs to finally make gains. It may also justify a speculative bet for those who can wait for months or even years. However, there, Plug Power faces competition from Bloom Energy.BE stock shows a lower price-to-sales (PS), around 1.7 versus about 3.7 for PLUG. Also, Bloom Energy's has a better, albeit still negative profit margin. Margins for Bloom come in at -39.9% compared with -55.3% for PLUG power.Moreover, despite a much shorter history, Bloom Energy has attained a market cap nearly twice as large as Plug Power. Finally, at just under $12 per share, BE trades well above penny stock status. For these reasons, Bloom Energy might better serve speculative investors. Final Thoughts on PLUG stockAlthough one might make a speculative case for owning Plug Power, it appears one key peer might eclipse the company. Plug Power has struggled for decades as hydrogen fuel cells have failed to gain broad market acceptance. Though deals with Amazon, Walmart, and GE brought some hope, PLUG remains a penny stock.The fact that fuel cell-powered cars offer a crucial advantage over Tesla might justify speculation in fuel cell stocks. However, when comparing the financial state of the more prominent fuel cell companies, investors should probably choose Bloom Energy over Plug Power.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post There Is No Point Speculating in Plug Power Stock appeared first on InvestorPlace.
Conventional wisdom holds that the best place to start a business is a big global city. Locations such as London, New York and Berlin top the lists of start-up hubs, boasting a combination of talent, access to funding and infrastructure to act as hothouses for companies. The Issa brothers, owners of EG Group, have never considered leaving their home town of Blackburn in Northern England (population 150,000).
Washington last week effectively banned U.S. firms from doing business with Huawei, the world's largest telecoms network gear maker, citing national security concerns. "You look at what they've done from a security standpoint, from a military standpoint, it's very dangerous," Trump said in remarks at the White House. Trump predicted a swift end to the trade war with China, although no high-level talks have been scheduled between the two countries since the last round of negotiations ended in Washington two weeks ago.
Key Takeaways from Target’s Q1 Results(Continued from Prior Part)Traffic continues to boost salesTarget (TGT) posted better-than-expected sales for the first quarter of fiscal 2019. Improved sales across core merchandise categories and higher
It's a question that has nagged at investors for as long as both asset categories have existed … are stocks the way to go, or bonds? If both, how much of either belong in a portfolio?The answer to the "stocks vs bonds" debate is, of course, one that depends on a myriad of factors unique to each and every investors. On a pound-for-pound, dollar-for-dollar basis though, stocks are the superior option for most investors, most of the time. They're not as safe or stable as bonds when you're talking about one specific equity. For a smart, long-term investor who knows how to build a diversified portfolio though, stocks just make more sense. Bulletproof? No, they're not. They can certainly take their lumps and keep on tickin' though.With that as the backdrop, here are five specific reasons stocks win the battle of stocks vs bonds. In no particular order…InvestorPlace - Stock Market News, Stock Advice & Trading Tips Income GrowthYes, bonds offer hyper-reliable income flow. While bond issuers can and sometimes do default on their payouts, that's a rarity. Meanwhile, it's not terribly uncommon for a company to reduce or altogether cancel their dividend, even if on a temporary basis. * 10 Names That Are Screaming Stocks to Buy There's a flipside to that risk/reward coin though. With a bond, the semi-annual payment is fixed for the duration of that debt. With a dividend-paying stock, the payout usually grows in time. Walmart (NYSE:WMT), for instance, has upped its dividend for 45 straight years now, while NextEra Energy (NYSE:NEE) has done the same for 24 consecutive years. Different CycleFor veteran investors who've owned both stocks and bonds through at least a couple of different economic cycles, they'll know that bonds often do well in some environments that bode poorly for stocks, while bonds tend to do poorly while stocks are thriving. Namely, rising rates -- as we've seen of late -- have pressured the bond market lower, but the corresponding inflation has coincided with solid growth from equities, since economic growth itself is generally what fuels inflation.It might take a bit of timing intuition to make good on the nuance, but savvy investors know that sooner or later, every asset will face a headwind and enjoy a tailwind, but will do so at different times. Stocks Usually Beat InflationIt has been a mostly ignored secret of late, but not only have bonds lost value of late as interest rates have risen, most interest payments from bonds haven't kept up with inflation.This year's average annualized inflation rate stands at 2.8%, though effectively speaking, the cost of goods seems to have grown a bit more than that. Meanwhile, the average yield on 30-year Treasuries is barely a bit higher, at 2.97%… and that's a long commitment. Less-committal 5-year paper is only paying 2.75%, which means in the end, holders of that debt are only breaking even relative to inflation.Yes, inflation-protected instruments like the iShares Barclays TIPS Bond Fund (NYSEARCA:TIP) can help fight the adverse impact of inflation on debt-based interest payments. Its upward adjustment is always backwards-looking though, and never quite seems to keep up with the full pace of price increases. More Price TransparencyTo be fair, technology has come a long way, bringing bond trading via the web on par with the amount of information that stock traders have enjoyed for years now. Yet, in that the bond market just isn't as brisk or as big as the equity market is, bond prices (or bond liquidity, for that matter) aren't always perfectly clear.It's still a far cry from days gone by, when it took a phone call and several minutes, as a brokerage firm had to literally contact someone at a trading desk to make a purchase or sale. Nevertheless, the bond market remains a bit slow, and frustrating, to navigate. Better Long-Term Bottom LineLast but not least -- and perhaps a culmination of all four of the other advantages of stocks compared to bonds -- they just to better in the long run.Ask ten different experts what the average annual performance for stocks is, and you'll likely get ten different answers. Almost all of the answers, though, will be somewhere between 8% and 11%. Not so with bonds. Their average annual return is more like 5% to 6%.Granted, it takes time and patience to secure those kinds of results … time not all investors are readily willing and able to give. For the truly long-term-minded investor, though, that can ride out the rough patches, stocks simply do better. The Last Word on Stocks vs. BondsNone of this is to suggest all investors should always and only own stocks. It's also not to say bonds are to be avoided at all costs. A balanced approach has been and continues to be the smart-money move in all cases.Do keep in mind, however, for some investors there's a tendency to seek out a little too much certainty and current reliability. Considering how long people are living now after they retire from their job -- 30 years in some cases -- the bigger risk these days is outliving your money due to not thinking enough about long-term growth that only stocks can offer.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post 5 Reasons to Invest In Stocks Versus Debt appeared first on InvestorPlace.