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Goldman Sachs has a new strategy for investors to consider. The firm has now revealed that the most dominant companies in an industry tend to outperform companies with a smaller percentage of market sales. There’s even a name for these kind of companies ‘superstar firms.’ “The market positioning of superstar firms often allows for greater bargaining power over consumers and workers and higher profitability,” Goldman's senior US equity strategist David Kostin told investors. “Superstar firms have been one driver of the explosion in US corporate margins post-crisis.”According to Kostin, companies with the highest share of industry sales have returned 49% since 2015. In contrast, companies with the lowest share of industry sales returned just 16% over the same time-frame. Here we take a closer look at five of the most prominent stocks in Goldman Sachs' 'superstar' portfolio. Should you buy into these names now? Let’s see what the Street has to say now… 1\. Altria (MO) * 88% share of industry US salesDuring the last five years, tobacco giant MO has gained 23%. That’s despite a disastrous 2018 which saw prices pullback 30%. So far in 2019, shares are holding steady- and Wells Fargo’s Bonnie Herzog spies upside ahead. She has just reiterated her Buy rating with a price target of $65 (28% upside potential). She believes that Altria will be able to weather the shift from traditional cigarettes to vapor products. “Major tobacco manufacturers are well-positioned in the current regulatory/political environment driven by strong management teams and a deep reservoir of bench talent and funds to drive innovation” says the analyst. Interestingly, Herzog adds that industry consolidation “will increasingly favor scale in the global ‘arms’ race in reduced-risk products (RRPs) while addressing the youth crisis.” Altria, for example, recently invested $12.8 billion in leading e-cigarette maker Juul Labs as well as a further $1.8 billion in cannabis stock Cronos Group (CRON). Luckily for Altria, Juul recently revealed Q1 sales of $528 million, up 23% from the previous quarter’s revenue. Now there is talk that Juul could be on the way to opening its own chain of vaping shops, starting in Houston and Dallas, Texas. Meanwhile Altria will also exclusively distribute Philip Morris International's (PM) "heat-not-burn" tobacco device. Called IQOS the device heats tobacco to around 350°C vs temperatures in excess of 600°C for a cigarette. “Because the tobacco is heated and not burned, the levels of harmful chemicals are significantly reduced compared to cigarette smoke” claims the company.Overall, we can see that the stock has a cautiously optimistic Moderate Buy analyst consensus. This is based on all the ratings received by the company over the last three months. Meanwhile the average analyst price target of $60 indicates upside potential of 18% from current levels. View MO Price Target & Analyst Ratings Detail 2\. Alphabet (GOOGL) * 63% share of industry US salesLooking back, GOOGL has almost doubled in value over the last five years. But that doesn’t mean there isn’t further upside potential ahead. GOOGL still retains a bullish ‘Strong Buy’ Street consensus. What’s more, the $1,334 average analyst price target indicates upside potential of over 22%. That’s despite more anti-trust talk from regulators, with Makan Delrahim (Assistant AG, DOJ) suggesting that stricter regulation may be coming.“Investors may be getting relatively comfortable with the underlying regulatory risk given that so far, the financial performance at FB, GOOGL and AMZN continues to be in line or even better than what the Street has been expecting” notes top-rated SunTrust Robinson analyst Youssef Squali. Given the complexity and global considerations of regulating and/or breaking up big tech, Squali is confident that it is likely to take years for regulatory measures to be implemented, and even longer for them to start impacting the financials of these companies. What’s more there is a growing realization that even in case of a break-up of a behemoth like GOOGL, the value of the parts may be higher than the whole over time. For example, Needham analyst Laura Martin has just reiterated her GOOGL buy rating with a $1,350 price target. She has calculated that the company could be worth nearly 50% more than its current valuation in the case of a break-up. Martin values Google search at $600 per Alphabet share, YouTube at $200, and the Android App Store at $100. Plus there are extra contributions from Gmail, Maps, Waymo, DeepMind etc. “Elevated regulatory scrutiny adds costs and margin pressures for 2-4 years, but probably has little impact on revenue growth or consumer usage until outcomes are determined and then fought out in the courts,” she concluded.View GOOGL Price Target & Analyst Ratings Detail 3\. General Electric (GE) * 51% share of industry US sales With new CEO Larry Culp at the helm, General Electric has put on a remarkable year-to-date rally of over 40%. The company was primed for a rebound after plunging over 50% in 2018. And analysts are currently divided about the stock’s outlook going forward.The key question is whether Culp’s multiyear turnaround plan will succeed to boost the company while reducing its massive $110 billion debt pile (as of March 31, according to FactSet). Cowen & Co’s Gautam Khanna sums up the problem here: “The major debates on GE's stock, which won't be resolved for years, are whether cost cutting & portfolio actions will return Industrial to sustained high FCF [free cash flow] conversion, & if Capital will require more cash support.” As a result, the analyst reiterates his Hold rating on GE with an $8 price target. That suggests shares could fall 20% from current levels. However, there are some more positive voices in the crowd. Most noticeably, William Blair’s Nicholas Heymann has just reiterated his GE Buy rating. He believes GE can ‘materially outperform’ the market over the next 12 months.“We continue to believe GE’s underlying intrinsic value (with no value assigned to Power) is somewhere in the range of $14-$16 per share,” the analyst revealed, describing this as a “highly feasible base-case valuation for GE’s share price over the next 6-12 months.”“The unbridled fear that overshadowed a rational assessment of the company’s underlying fair value exiting 2018 is beginning to recede and be replaced with far less ambiguous and more tangible plans and actions that will support a likely materially higher value for GE’s stock over the next 12 months and beyond,” said Heymann. View GE Price Target & Analyst Ratings Detail 4\. Walt Disney (DIS) * 49% share of industry US salesThis is a critical year for Walt Disney. As well as two new Star Wars attractions, DIS is also launching its own direct-to-consumer (DTC) streaming service known as Disney+. Clearly investors are feeling optimistic- boosted by the success of Avengers: Endgame (the second highest-grossing film of all time), shares are up 29% year-to-date. This brings Walt Disney’s total five-year gain of over 70%. It’s not just investors that are bullish on DIS right now. In the last three months, 16 analysts have published DIS Buy ratings vs just 3 Hold ratings. That gives DIS its ‘Strong Buy’ Street consensus. Meanwhile the average analyst price target of $153 indicates upside potential of 8%. “I believe that Disney+ will be a significant revenue driving opportunity along with the ongoing success of Disney Studios and Theme Parks” commented five-star Tigress Financial analyst Ivan Feinseth. “I further believe both Star Wars and Marvel franchises including a number of series from both these franchises will be significant drivers for Disney+ subscriptions,” Feinseth wrote. ‘Star Wars Episode IX: The Rise of Skywalker’ is set for release this December, and could also generate a whopping $2 billion in box office revenue.At the same time Morgan Stanley’s Benjamin Swinburne has just raised Disney’s long-term DTC subscribers and earnings estimates. This leads him to a new $160 price target and $210 bull case. He is now forecasting over 130mm global OTT subscribers by 2024, and is confident that DIS shares can sustain a premium multiple as the service ramps up. The analyst’s willingness to underwrite these higher estimates stems from: 1) A faster-than-expected global launch for Disney+; 2) More IP aggregating more quickly than anticipated; and 3) A plan to leverage third-party distribution. View DIS Price Target & Analyst Ratings Detail 5\. General Motors (GM) * 48% share of industry US salesOnly three analysts have published recent ratings on GM. Two analysts are staying neutral on the stock, while one analyst- Morgan Stanley’s Adam Jonas\- has a bullish rating on GM. Encouragingly, out of the three analysts, Jonas is the analyst with the strongest stock picking track record. Following relatively ‘in-line’ Q1 earnings results, Jonas reiterated his buy rating and Street-high price target of $44. From current levels that translates into 23% upside potential. According to the analyst, Q1 earnings didn’t fundamentally change his take on the GM story- especially if you strip away the mark-to-market ‘noise’ from the Lyft (LYFT) and PSA revaluations. Nonetheless, Jonas revealed that he was "sympathetic to some investor profit taking" after prices climbed 5% in April.And the analyst also moved to temper expectations surrounding GM’s self-driving Cruise unit. "While we think GM Cruise has important technological value, we urge investors to lower expectations on revenue generation and profitability of the unit," Jonas advised. "Taking nothing away from GM cruise, it is our understanding that the technology required to remove human drivers at an acceptable level of consumer safety is likely many years away." He continued: "And the legal and regulatory construct to support, even proven technology, may present even greater hurdles largely outside of GM Cruise's control."At the time of writing, General Motors has enjoyed a modest year-to-date rise of 7%. Despite rallying in both 2016, and 2017, 2018 was a more difficult year for GM investors with the stock losing 19%. View GM Price Target & Analyst Ratings DetailDiscover stock ideas from the Street’s best performing analysts here
Disney and Comcast are near buy points after holding up well in the stock market correction. Cadence Design Systems, Estee Lauder and TransDigm also are near breakouts from shallow bases.
Documents filed with the city of Scottsdale show that development work on the Caesars Republic Scottsdale is proceeding on schedule.
Penn National Gaming Inc NASDAQ/NGS:PENNView full report here! Summary * Bearish sentiment is moderate * Economic output in this company's sector is contracting Bearish sentimentShort interest | NeutralShort interest is moderate for PENN with between 5 and 10% of shares outstanding currently on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold PENN had net inflows of $1.20 billion over the last one-month. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managersâ€™ Index (PMI) data, output in the Consumer Servicesis falling. The rate of decline is significant relative to the trend shown over the past year, and is accelerating. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
First Data Corp NYSE:FDCView full report here! Summary * Perception of the company's creditworthiness is positive * ETFs holding this stock are seeing positive inflows but are weakening * Bearish sentiment is low * Economic output in this company's sector is contracting Bearish sentimentShort interest | PositiveShort interest is low for FDC with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NegativeETF activity is negative and may be weakening. The net inflows of $1.96 billion over the last one-month into ETFs that hold FDC are among the lowest of the last year and appear to be slowing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managersâ€™ Index (PMI) data, output in the Industrialsis falling. The rate of decline is very significant relative to the trend shown over the past year, and is accelerating. The rate of contraction may ease in the coming months, however. Credit worthinessCredit default swap | PositiveThe current level displays a positive indicator. FDC credit default swap spreads are decreasing and near the lowest level of the last three years, which indicates improvement in the market's perception of the company's credit worthiness.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
AMD CEO Lisa Su led a stunning turnaround at the semiconductor company, which is now giving Intel a run for its money in all areas of the chip business.
Activision Blizzard (ATVI) closed at $45.63 in the latest trading session, marking a -0.91% move from the prior day.
Facebook (FB) Watch has now more than 720-million monthly and 140-million daily users, who spend at least one minute on Watch.
Electronic Entertainment Expo (E3) 2019 witnessed major announcements from Microsoft (MSFT), Nintendo, EA and other gaming companies.
How do you pick the next stock to invest in? One way would be to spend hours of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of […]
"The end to the U.S. Government shutdown, reports of progress on China-U.S. trade talks, and the Federal Reserve’s confirmation that it did not plan further interest rate hikes in 2019 allayed investor fears and drove U.S. markets substantially higher in the first quarter of the year. Global markets followed suit pretty much across the board […]
U.S. stocks retreated on Friday, but certainly haven't cratered over the last few sessions. It looks like the stock market is simply digesting its big gains from last week. Will this weekend or next week carry increased risk? We'll see. Until then, let's look at a few top stock trades. Top Stock Trades for Tomorrow 1: Micron Click to EnlargeMicron (NASDAQ:MU) is under pressure like most memory and chipmakers on Friday. However, that follows very discouraging action from this week, after MU stock topped out near $36. Already it's down almost 10% from those levels.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf it loses Friday's lows, it could be a slippery slope for Micron. In that case, a drop down to $30 could be in the cards. * Chewy IPO: 14 Things for Investors to Know If semis and tech catch a bid next week, see that Micron can hurdle $34 and its 20-day moving average. Otherwise, this one looks risky on the long side, particularly with a percolating trade war. Top Stock Trades for Tomorrow 2: Barrick Gold Click to EnlargeGold has been doing well as investors worry about the global economy. As such, miners like Barrick Gold (NYSE:GOLD) have been doing well too.The recent rally has taken GOLD right into range resistance. Of course, it's possible that the stock is able to breakout. But I'd rather play the move after the fact than bet on it happening beforehand.If range resistance is in fact resistance, look for GOLD to pullback into its 20-day to 50-day moving average range, between $12.82 and $13.07. A breakout over $14 could trigger a larger move higher. Top Stock Trades for Tomorrow 3: Chewy Click to EnlargeChewy (NYSE:CHWY) made its public debut on Friday, erupting from its $22 IPO price and opening at $36. Here are 14 things to know about the company.Shares are not exactly reminiscent of Lyft (NASDAQ:LYFT), as they back off the opening level highs, but they do share some resemblance. Investors are now trying to figure out if this IPO is going to be an Uber (NYSE:UBER)/Lyft debacle, or a Zoom Video (NASDAQ:ZM)/Beyond Meat (NASDAQ:BYND) situation. Truth is, no one knows.Risk-taking speculators can take a flyer on CHWY, banking that higher prices are here to come. At the end of the day though, trading day-one IPOs is really just speculation. No one really knows which way it will go.Just know its range. Over the IPO open price of $36 and CHWY can run to its day-one highs near $41 and possibly higher. Below its day-one low and shares can move lower, although I'd be surprised to see it down to $22 anytime soon. Trading this close to the IPO date isn't for me. Top Stock Trades for Tomorrow 4: Semiconductor ETF Click to EnlargeThe VanEck Semiconductor ETF (NYSEARCA:SMH) is under pressure Friday, falling about 2.5% thanks to the earnings results from Broadcom (NASDAQ:AVGO). The latter beat earnings estimates, but provided a tepid outlook as the trade war continues to weigh on its business.While AVGO was the catalyst Friday, a whole host of stocks will drive the SMH going forward. Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Micron and others will all have an effect.As for the ETF, the 50-day promptly rejected the SMH, while the 20-day could do little to buoy the name. That leaves the 200-day -- which didn't help much last month -- and last month's lows near $97.50 as the must-hold spot.Below those lows opens the SMH to a drop to the sub-$93 area. On a rebound, we need to see the SMH's series of lower highs (purple arrows) cease and for the SMH to clear its 50-day moving average.Bottom line: Watch the 200-day and last month's lows if the decline continues. Watch the 50-day and $109 if the SMH rebounds. Top Stock Trades for Tomorrow 5: Preferred Shares ETF Click to EnlargeThe iShares Preferred Stock ETF (NYSEARCA:PFF) has been on fire. But could the run be coming to an end?Once the PFF reclaimed its 10-week moving average, it has been on absolute fire. That was in the last week of December, by the way. In any regard, multi-year channel resistance is up near $37, while the MACD and RSI (blue circles) are suggesting momentum could be topping out as the ETF flirts with an overbought condition. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 That's not to say the PFF can't go to $37, $38 or even higher. Just that over the past few years, this resistance mark has generally kept a lid on the stock. Investors will likely keep buying on pullbacks into the 10-week moving average until it fails. If and when it does, a drop down toward channel support and the 50-week moving average could be in the cards.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AVGO and NVDA. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post 5 Top Stock Trades for Monday: MU, CHWY, GOLD appeared first on InvestorPlace.
Broadcom (AVGO) presented their second quarter earnings on Thursday after market close, and the call, as described by CNBC's Jim Cramer, was "truly depressing."
Slack is hoping to replace email and, so far, it’s succeeding. But private-market investors have already bid up the stock, which limits upside for new investors.
Morgan Stanley came away from the Electronics Entertainment Expo video game trade show in Los Angeles with a better understanding of the details of some of the key releases coming up this year and what ...
After a long, quiet period, this year's IPO market is abuzz. Two in particular -- Lyft (NASDAQ:LYFT) and Uber (NYSE:UBER) -- captured most of the headlines on Wall Street. That is, until Beyond Meat (NASDAQ:BYND) recently stole the show.Source: Shutterstock While the BYND and Zoom Video (NASDAQ:ZM) IPO processes produced successes, we learned that not all IPOs are created equal. Lyft stumbled right out of the gate. There was enough criticism to go around as to who did what and when to ruin the LYFT launch. What made matters worse for it, is that Uber came to market soon thereafter. It undoubtedly stole bids away from Lyft stock so it stood no chance of finding footing for weeks.Early in May I wrote an article about not giving up on Lyft and to stay long it. The idea paid, as the stock is up 16% since then. Today's note is to point out that even from here, there still is a bullish technical set up which could be the next opportunity for the Lyft bulls.InvestorPlace - Stock Market News, Stock Advice & Trading Tips LYFT Stock By the NumbersI am a fundamental investor, so I have to look at the boring stuff like valuation and the bullish versus the bearish thesis. So first let's look at the fundamentals, which aren't that great on paper. Lyft still loses a ton of money and they claim that they're going to grow to the moon. The path to profitability is very murky. Many experts even contend that they will never be profitable.I agree that the stock is definitely not cheap, since it sells at 7 times sales. But it's hard to gauge a growth stock like this so early in the process -- especially one that's in a brand-new disrupting industry. So there are no experts in the field. Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX) encountered the same bearish arguments as they blazed their new industry trails. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 So for those who like LYFT stock, buy it for the long term and ignore this short-term action and the bearish talking heads.But I almost never make a trade without looking at the technicals too. So I ignore the fundamentals for this purpose of today's write-up because the opportunity is technical and it is in the charts. So I consider this a stand-alone tactical trade not an investment.The recent price action shows higher lows knocking against a roof. This tells me that the buyers have momentum for almost a month. If they are able to break through the roof, they can overshoot up and test $70 per share. There will be resistance along the way at $65 and $67 per share, so it won't be easy.For those who like to study charts, the pattern looks like an inverse-head-and-shoulder where the neckline is around $63.30 per share. Ideally I wait for the breach of the neckline before I chase the stock up. So it's a case of buy high and sell higher. How to Trade ItSome traders like to anticipate the move and start early, so they buy right away and hope for the rally to unfold. For that, I would definitely use tight stops, and where to place them depends on personal risk tolerance. I see significant levels at $58.70, $56.25 and $54 per share.The good news is that when a stock price range narrows from a wide band into a virtual point, it gathers energy. This almost always resolves itself in a big move where the direction is undetermined. In this case and since the bulls are making higher lows for weeks, unless there's specific bad news the expectation is that they will be able to breach it to rally even further. Click to Enlarge It is important to note that there is risk from outside factors to consider. We are still in the throes of an economic war between the United States and China, so we are apt to getting surprise geopolitical tape bombs. We cannot plan for these so it is best to set in adhere to the stop-loss levels below.Even as I share this upside opportunity here for Lyft, I have to note that I prefer holding Uber stock for the very long term. It's just too big a company to ignore and it reminds me of Facebook (NASDAQ:FB) and its infancy.Regardless, today's write-up is to share the potential of buying Lyft stock for a tactical trade that could deliver a $10 rally.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. Join his live chat room free here. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post Take a Ride on This Lyft Stock Rally appeared first on InvestorPlace.
California's Wildfire Commission recently submitted a report to the state's governor and senate that poses a "high level of uncertainty" for utility company PG&E Corporation (NYSE: PCG ), according ...