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Here are eight Buffett-approved businesses built for the long haul.
Chevrolet is no doubt feeling the heat in the midsize truck segment, what with all the buzz about its new competitors the Ford Ranger and Jeep Gladiator, but don't look for any major updates yet to its Colorado pickup. GM Authority has the details on what the bowtie brand has in store for the 2020 version of the truck, and the changes are minor. Chevy adds an optional remote locking tailgate on the Work Truck trim that's standard on the LT, Z71 and ZR2 models.
When President Donald Trump visits Japan, he'll be able to point to Tokyo's streets to drive home a sore point in trade relations between the allies: the absence of made-in-USA vehicles. The $70 billion Japanese trade surplus with the U.S. is dwarfed by China's $379 billion surplus, and the trade tensions between Washington and Tokyo are far less contentious than the tariffs war with Beijing. Prime Minister Shinzo Abe has carefully courted Trump since before he took office and their cordial, golfing-buddy relationship has helped keep relations on an even keel.
Together with PayPal, Visa and Mastercard look virtually unassailable in the digital-payments market. The stocks, while pricey by traditional price/earnings metrics, show no signs of slowing down.
Uber (UBER) is releasing its first Q1 earnings after market close on Thursday, May 30th. Both Uber and Lyft went public at a massive bottom-line deficit, with no profits in sight.
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.
The U.S. has been slow to embrace tap-to-pay transactions, but history suggests that a turning point may be near.
NOTE: On May 24, 2019, the press release was corrected as follows: In the debt list, under Affirmations for American Express Company, added Senior Unsecured Regular Bond/Debenture, Affirmed A3 stable. Revised release follows. New York, May 21, 2019 -- Moody's Investors Service ("Moody's") has affirmed all of the ratings of American Express Company (Amex) and the rated subsidiaries, American Express Travel Related Services Co., Inc. (TRS) and American Express Credit Corporation (Credit Corp).
Investors need to pay close attention to General Motors (GM) stock based on the movements in the options market lately.
A former Procter & Gamble executive has been hired as CEO of a research and development firm focused on marijuana and hemp products related to health and wellness.
[Editor's Note: This article was updated to correct the price-to-sales ratio.]Usually I don't like to invest in small-cap companies but New Age Beverages Corporation (NASDAQ:NBEV) is interesting to trade as a speculative bet for the next few months or maybe years.NBEV is a beverage provider, so I consider it as part of the consumer staples group, which includes great companies like Proctor and Gamble (NYSE:PG), Coke (NYSE:KO) and Pepsi (NASDAQ:PEP).InvestorPlace - Stock Market News, Stock Advice & Trading TipsAlthough it's in the same group as Coke and Pepsi, I do consider NBEV an alternative beverage provider. It's perfectly set up to pursue the cannabis opportunities, specifically the potables.The popularity of cannabis based or infused products has skyrocketed of late and the possibilities are endless. Evidence of this is the popularity of pot stocks like Canopy Growth (NYSE:CGC), Cronos (NASDAQ:CRON) and Tilray (NASDAQ:TLRY). These are intrepid companies trying to establish a new world of opportunities. So this can be a blank canvas for companies like NBEV and and I bet that they will partake in it. Looking at Marijuana Stocks and NBEV StockThe cannabis craze isn't just marijuana stocks -- it now includes CBD products and services. From what I hear, people call it the cure for just about every ailment on the planet. Although there is sarcasm here, I am reporting what I hear even from my friends and family. Everyone who uses it swears it did the trick and that's all that matters.Last year NBEV announced that they will serve potables infused with CBD. So they too will be on the band wagon. This is a trend that is not short term fad. The passion for cannabis from its fans is rare even stronger than Bitcoin. So the movement has legs and evidence is that the major mega cap companies are all rumored to be looking into this too. * 5 Safe Stocks to Buy This Summer On its own, New Age Beverages stock is not cheap. This is a company that loses money and sells at 5x sales. So clearly Wall Street gives it a lot of leeway for now. They just reported earnings and even though they missed expectations they grew sales 400%. But this stock draws enough shorting interest that I bet it could sport a short squeeze sometime this year.NBEV stock is now far from its high but still is popular among investors. It is still up 212% in a year while the S&P 500 is barely green. A fairer comparison is to the Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP) which is only up 15% for the same period.There is a good chance that NBEV stock entices shorts to bet against extreme moves up or down. So it's a matter of time before it catches fire.Today's thesis is that the overall market weakness we are getting here is an opportunity to bet long on NBEV stock to capture such spike. Once this wave of negative sentiment reverses investors will buy almost every stock up with vigor. But for the controversial stocks like this one they tend to buy them faster.Regardless of the magnitude, the bulls could cause it to breakout above $5.65 per share and that would be a trigger to target $6.70 where it last failed in April. There will be resistance around $6.1 along the way. Above the April fail would bring the sky as the limit.What also makes this possible is that for the last few months, New Age Beverage stock has established a zone of support just below current price. So the bulls have a strong platform from which to mount their efforts.This is not the same as saying that I like the fundamentals; I am agnostic on that front. I consider this a highly speculative and almost binary bet for profit. Since there is less science than hopium, it is important to properly size the gamble. And this is a gamble -- don't bet the farm, choose an amount that won't break your heart or your piggy bank.In addition to the intrinsic risks from the stock itself, I have to contend with the general market malaise from the tariff wars. It seems that the headlines are going to linger for at least another month.Scared markets don't usually buy frothy stocks like New Age. But when investors come to terms with the China risks, then they will buy the riskiest stocks the fastest. In other words, momentum stocks move faster in both directions, so I expect fireworks in NBEV stock soon after the markets stabilize from this tizzy.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 New Age Beverages Stock Could Surge to $6.70 appeared first on InvestorPlace.
Noodles & Company, Wells Fargo, Veeva Systems, Workday and Palo Alto Networks highlighted as Zacks Bull and Bear of the Day
Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date. What Happened? On this day 34 years ago, Quantum Computer Sciences was founded in Delaware. Where The ...
It seems like nothing can stop PayPal (NASDAQ:PYPL). After a brief slowdown during the bear market in late 2018, PayPal stock had returned to its late-summer highs by January.Source: Shutterstock The move higher continued, and now it trades at record highs. Given the growth in the payments industry, PYPL will continue its rise long term. However, the question is not whether to buy PYPL stock, but if investors should choose it over its closest peers.PayPal stock continues to register impressive growth, even as it seeks to address the competitive threat posed by Square (NYSE:SQ). Fueling this is a rising cashless society and a move toward more ecommerce. This bolsters not only PayPal stock and that of Square, but also payment processors such as Visa (NYSE:V) and MasterCard (NYSE:MA).InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Stocks to Buy for This Decade's Massive Megatrend This increase continues at a steady but significant pace. According to eMarketer, retail ecommerce sales will rise from $3.453 trillion this year to $4.878 trillion by 2021.PayPal may have also become a force in the banking business itself. Its digital wallet, Venmo, has risen to over 40 million accounts as of the first quarter. Venmo also registered a 73% increase on payments on its platform. This compares well to Bank of America (NYSE:BAC) with 37 million digital accounts and Wells Fargo (NYSE:WFC) who with 29.8 million digital users. PYPL lags only JPMorgan Chase (NYSE:JPM), which claims 51 million active accounts. A Closer Look at PayPal StockGiven this increase, I see ample room for growth for all major players involved. The predicted profit increases in PayPal stock represents the growth well. Analysts expect earnings increases to come in at 23.1% this year and 17.8% next year.This has also brought somewhat higher price-to-earnings (PE) ratios across the industry. PayPal's forward PE now stands at 32.1. While not cheap, that appears inexpensive compared to SQ stock and its 59.3 forward PE ratio. Moreover, the multiples of Visa and Mastercard are somewhat lower, but not by much.But here's the thing.In this sector, multiples tend to rise with rates of profit growth. Square supports a significantly higher PE ratio. However, Wall Street believe SQ's profits will rise by 59.6% this year and 49.3% the next.In 2020, Square's profits will grow at about 2.5 times PayPal's earnings this year. Next year, Square will roughly triple PayPal's growth rate. Given this differential, I see a case for buying SQ when its forward multiple comes in a less than double PayPal's PE ratio.Conversely, investors can pay about 26.4 times forward earnings for Visa. Following what looks like an industry trend, that will buy investors lower but still impressive growth rates. Analysts expect Visa will see a 16.5% earnings increase this year and a 15.6% rate in 2020.Moreover, PYPL has risen more than 46% from its December low. This comes in substantially higher than the 33%-plus growth in SQ over the same period. Given this rapid rise, I cannot rule out a short-term correction. What should investors do?PayPal stock will remain a growth equity for years to come, but it may not outperform a key peer. PYPL trades near record highs. Its massive profit increase justifies its PE ratio in the low 30s. However, one cannot ignore Square stock, which offers almost triple the growth at less than double the valuation.Again, I do not think this negates the bull thesis in PayPal stock. I also believe payment stocks will generally continue to rise long-term. In my view, it comes down to risk tolerance. Investors more comfortable with lower multiples should consider PayPal or maybe Visa. However, for those who will willingly pay a higher PE for more elevated growth levels, Square stock might make a better choice.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 PayPal Stock Will Move Higher, but There Are Way Better Choices appeared first on InvestorPlace.
Ten years into the race to build self-driving cars, many developers, analysts and even venture capital firms say robot cars won't go mainstream for at least another decade, maybe longer.
The soda and beverages industry is set to gain from the removal of aluminum tariffs since it predominantly uses imported aluminum for packaging its products.
Uber's (NYSE:UBER) IPO was not greeted with the type of optimism that investors were hoping for. Even after seeing the decimation that Lyft (NASDAQ:LYFT) has gone through since its IPO, many were assuming the underwriters would have learned their lesson. It didn't help that Uber stock came to market amid a tough week (and tough trading session) as trade-war worries intensified.Source: Shutterstock That said, Uber only briefly traded at its $45 IPO price on its first day of trading. It tagged this level and reversed lower. On the second day of trading, shares closed just over $37, down over 17% from its IPO price in two days. What's going on?There were reports about a $120 billion valuation for Uber before its IPO. Even though that seemed rich, many assumed $100 billion was attainable for Uber stock. After Lyft's flop (shares are still down ~36% from its opening price) the Uber IPO was being priced "conservatively," between $44 and $50 per share. Shares ultimately priced at the lower end of the range and have traded lower since. Right now, Pinterest (NYSE:PINS) might be a better pick than either of them.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Stocks to Buy for This Decade's Massive Megatrend Absent of day one, Uber stock price has not hit its IPO price. Near $41.50 now, shares command a market cap of about $70 billion. You know what this reminds me of? Facebook (NASDAQ:FB).Facebook went public at $38 per share. That's where the stock closed on its first day of trading and it proceeded to trade lower over its first year as a public company. I don't know if Uber will do the same thing, but I could certainly see a scenario in which that's the case.There's two sides to that coin though. On the bearish side, Facebook stock was cut in half in its first three months of trading and continued to probe those 50% losses for another three months after that. On the flip side though, FB is now up 10-fold from its post-IPO lows.For Uber], that would mean falling from its $45 IPO price to about $20 to $22. That would create quite a few headlines, but it would also create quite the potential opportunity. Is Uber Stock the Next Facebook Stock?However, there's a big difference between Uber stock and Facebook: The latter was actually profitable.In 2011 the year leading up to Facebook's May 2012 IPO the company churned out net income of $668 million. In the two years after its IPO, it generated $1.49 billion and $2.9 billion in net income, respectively. Essentially Facebook was (and still is) a profit machine. It generates immense cash flow on mind-boggling margins. That's led to a fat bottom line and one of the healthiest balance sheets in public markets.Uber stock had an operating loss of $3.85 billion in fiscal 2017. That figure shrank to "just" $2.83 billion in 2018, but still presents an issue. How do we assign a $70 billion valuation to Uber when its losing several billion dollars per year?When Facebook hit the $70 billion mark on its upswing in 2013, the company was on its way to a ten-figure bottom line. Worth noting is that analysts expect Uber's losses to persist both this year and in 2020. That said, revenue growth is impressive. Revenue of $11.27 billion in 2018 grew 42.1% from the $7.93 billion in sales in 2017. Estimates call for $13.95 billion in sales this year (+23.7%) and for $17.73 billion in 2020 (+27%). Click to Enlarge The Bottom Line on UberI'm struggling to get behind Uber stock right now. The explanations are pretty simple. First, I don't have a reasonable comparison to Uber. Well, besides Lyft. You see, Facebook isn't a very good comparison because the businesses are completely different. I compared the two because they are both well-known, high-profile tech companies and the disappointing reaction to the IPOs are quite similar.That said, if the only comparison to Uber is Lyft, which went public about a month earlier, we don't have a very good profile of public companies to compare Uber to. This ties into my other reason I struggle with Uber: Valuing it. Essentially, Uber is burning a hole in its bank account with its current business model.It's in a price war with Lyft and other ride-hailing businesses and until we get some clarity around how it will become profitable, I just don't know how to value it.At the end of the day, Uber has changed the transportation game. It's created a mobility-as-a-service platform that's disrupting everything from Hertz (NYSE:HTZ) to General Motors (NYSE:GM) to traditional taxi services. For some, maybe they can buy Uber with a 10+ year outlook and say they don't care about today's prices. That's fine. But for me, the story isn't clear enough and I'd rather wait.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long PINS. 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 It's a Dicey Proposition, but Uber Stock Could Be the Next Facebook appeared first on InvestorPlace.
Activist investor Nelson Peltz is well known for taking stakes in companies and pushing executives to make changes to increase the value of shares.