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Agilent Technologies A is set to report its first-quarter fiscal 2023 results on Feb 27.For the fiscal first quarter, the company expects revenues of $1.555-$1.605 billion, suggesting a decline of 11.4-8.6% on a reported basis from the year-ago quarter’s actuals. The Zacks Consensus Estimate for the same is pegged at $1.57 billion, implying a decline of 10.5% from the year-ago quarter’s reported figure.Agilent’s non-GAAP earnings are expected to be $1.20-$1.23 per share. The Zacks Consensus Estimate for earnings is pegged at $1.21 per share, indicating a fall of 11.7% from the year-ago quarter’s reported figure.Agilent’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matched the same once, the average being 2.99%.Key Factors to NoteThe company is expected to have gained from the growing momentum across Agilent’s Cross Lab Group (“ACG”) segment in the fiscal first quarter.The ACG segment is likely to have benefited from the solid momentum across end markets and various geographic regions. Strength in services attached to new instrument installations and existing instrument base is likely to have contributed well.However, weak momentum in China is anticipated to have been concerning for the business.The Zacks Consensus Estimate for ACG is pegged at $385 million, implying growth of 1% from the year-ago quarter’s reported figure.Agilent’s strength in the NASD (Nucleic Acid Solutions Division) business is expected to have continued benefiting the Diagnostics and Genomics Group (“DGG”) segment’s performance in the fiscal first quarter.However, softness in the genomics business is likely to have been a negative in the quarter under review.The Zacks Consensus Estimate for DGG is pegged at $332 million, implying a fall of 2.9% from the year-ago quarter’s reported figure.Meanwhile, the weakening momentum in the Life Sciences & Applied Markets Group (“LSAG”) segment is expected to have been a major headwind for Agilent. Macroeconomic uncertainties, soft market conditions in China and sluggish capital spending by customers are expected to have negatively impacted the segment.The Zacks Consensus Estimate for LSAG is pegged at $849 million, implying a decline of 17.8% from the year-ago quarter’s reported figure.Story continuesWhat Our Model SaysOur proven model does not conclusively predict an earnings beat for Agilent this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.Agilent Technologies has a Zacks Rank #2 (Buy) and an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks to ConsiderHere are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.The Gap GPS has an Earnings ESP of +24.44% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.The Gap is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for GPS’ earnings is pinned at 19 cents per share, indicating growth from the year-ago quarter’s reported loss of 75 cents.Burlington Stores BURL has an Earnings ESP of +1.27% and a Zacks Rank of 3 at present. Burlington Stores is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for BURL’s earnings is pinned at $3.25 per share, indicating growth of 9.8% from the year-ago quarter’s reported figure.Compugen CGEN has an Earnings ESP of +451.63% and a Zacks Rank #2 at present.Compugen is scheduled to release fourth-quarter 2023 results on Mar 5. The Zacks Consensus Estimate for CGEN’s earnings is pegged at 10 cents per share, suggesting a jump from the prior-year quarter loss of 4 cents.Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAgilent Technologies, Inc. (A) : Free Stock Analysis ReportThe Gap, Inc. (GPS) : Free Stock Analysis ReportCompugen Ltd. (CGEN) : Free Stock Analysis ReportBurlington Stores, Inc. (BURL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Agilent Technologies (A) to Post Q1 Earnings: What's in Store?

https://finance.yahoo.com/news/agilent-technologies-post-q1-earnings-172300114.html

7f77108b-27e1-364c-88f6-8fbdff264933

A

Investors are eager for stocks that can keep etching out gains with the S&P 500 and Nasdaq already up over +6% this year following stellar performances for both indexes in 2023.Of course, investors should never get over-consumed with FOMO but several top-rated Zacks stocks look attractive ahead of their quarterly reports on Tuesday, February 27. With representation from a variety of sectors here are three of these top-rated stocks to consider as earnings approach.Agilent Technologies ATech stocks continue to be the apple of investors' eyes and Agilent Technologies is worthy of consideration ahead of its fiscal first quarter results tomorrow. Agilent’s reasonable valuation is appealing considering Its Zacks Electronics-Testing Equipment Industry is in the top 27% of over 250 Zacks industries.Manufacturing various test and measurement products for multiple end markets, Agilent trades slightly below the industry average of 25.9X forward earnings despite Q1 EPS expected to dip -11% to $1.21 a share. Still, annual earnings are now projected to be up roughly 1% this year and rise another 9% in fiscal 2025 to $6.00 per share. Notably, Agilent has topped earnings expectations in three of its last four quarterly reports posting an average earnings surprise of 2.99%.Zacks Investment ResearchImage Source: Zacks Investment ResearchLendingTree TREELendingTree’s reasonable valuation has made its stock attractive especially as the consumer loan company’s expansive bottom line growth trajectory remains intact. TREE has been one of the better performers out of the financial sector this year spiking +13% to top the broader indexes and still trading at an intriguing 14.6X forward earnings multiple.Furthermore, LendingTree is expected to round out its FY23 with annual earnings soaring 100% to $2.14 per share even as Q4 EPS is projected to dip to $0.14 a share compared to $0.38 per share a year ago. Fiscal 2024 EPS is forecasted to rise another 9% to $2.33 and LendingTree’s Financial-Mortgage & Related Services Industry is currently in the top 10% of all Zacks industries. To that point, LendingTree has now topped the Zacks EPS Consensus for 12 consecutive quarters posting an astonishing average earnings surprise of 255.51% in its last four quarterly reports.Story continuesZacks Investment ResearchImage Source: Zacks Investment ResearchUrban Outfitters URBNRounding out the list, Urban Outfitters’ stock will be one to watch out of the retail and wholesale sector as the specialty retailer continues to carve out a niche in its offering of fashion apparel, footwear, and home décor products. Urban Outfitters stock certainly checks the box in terms of valuation soaring +27% YTD but trading at 12.7X forward earnings. This comes as Q4 EPS is anticipated to climb 82% to $0.71 per share versus $0.39 a share in the comparative quarter.Zacks Investment ResearchImage Source: Zacks Investment ResearchUrban Outfitters' top line growth is compelling as well with Q4 sales forecasted to rise 7% to $1.49 billion. Overall, total sales are forecasted to be up 7% to $5.15 billion as Urban Outfitters wraps up its FY24 and FY25 sales are projected to rise another 4%. Better still, Urban Outfitters is expected to round out its current fiscal year with annual earnings soaring 86% to $3.25 per share. Fiscal 2025 EPS is currently slated to rise another 7% and Urban Outfitters has exceeded earnings expectations in three of its last four quarterly reports posting an average earnings surprise of 21.95%.Zacks Investment ResearchImage Source: Zacks Investment ResearchTakeawayIt wouldn’t be surprising if Agilent Technologies, LendingTree, and Urban Outfitters stock rallied if they can reach or exceed their bottom line expectations. Offering positive or better-than-expected guidance could also be crucial but when taking their P/E valuations into account more upside looks plausible.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 reportAgilent Technologies, Inc. (A) : Free Stock Analysis ReportUrban Outfitters, Inc. (URBN) : Free Stock Analysis ReportLendingTree, Inc. (TREE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

3 Top-Rated Stocks to Consider as Earnings Approach

https://finance.yahoo.com/news/3-top-rated-stocks-consider-200600126.html

9757fda9-d2eb-3448-bd4c-bd2c8e251b38

A

Looking for broad exposure to the Industrials - Water segment of the equity market? You should consider the First Trust Water ETF (FIW), a passively managed exchange traded fund launched on 05/08/2007.An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Water is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.Index DetailsThe fund is sponsored by First Trust Advisors. It has amassed assets over $1.56 billion, making it one of the larger ETFs attempting to match the performance of the Industrials - Water segment of the equity market. FIW seeks to match the performance of the ISE Clean Edge Water Index before fees and expenses.The ISE Clean Edge Water Index is a modified market capitalization-weighted index comprised of exchange-listed companies that derive a substantial portion of their revenues from the potable and wastewater industry.CostsWhen considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.Annual operating expenses for this ETF are 0.53%, making it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.66%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Industrials sector--about 53.80% of the portfolio. Utilities and Healthcare round out the top three.Story continuesLooking at individual holdings, Ferguson Plc (FERG) accounts for about 4.44% of total assets, followed by Roper Technologies, Inc. (ROP) and Agilent Technologies, Inc. (A).The top 10 holdings account for about 40.39% of total assets under management.Performance and RiskThe ETF has added about 3.15% and is up roughly 16.94% so far this year and in the past one year (as of 03/06/2024), respectively. FIW has traded between $77.30 and $99.25 during this last 52-week period.The ETF has a beta of 1.03 and standard deviation of 19.12% for the trailing three-year period, making it a medium risk choice in the space. With about 38 holdings, it has more concentrated exposure than peers.AlternativesFirst Trust Water ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FIW is an excellent option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.Invesco S&P Global Water Index ETF (CGW) tracks S&P GLOBAL WATER INDEX and the Invesco Water Resources ETF (PHO) tracks NASDAQ OMX US Water Index. Invesco S&P Global Water Index ETF has $959.06 million in assets, Invesco Water Resources ETF has $2.03 billion. CGW has an expense ratio of 0.57% and PHO charges 0.60%.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.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 reportFirst Trust Water ETF (FIW): ETF Research ReportsAgilent Technologies, Inc. (A) : Free Stock Analysis ReportRoper Technologies, Inc. (ROP) : Free Stock Analysis ReportInvesco S&P Global Water Index ETF (CGW): ETF Research ReportsInvesco Water Resources ETF (PHO): ETF Research ReportsFerguson plc (FERG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Should You Invest in the First Trust Water ETF (FIW)?

https://finance.yahoo.com/news/invest-first-trust-water-etf-112005253.html

84a82293-4bf4-3614-8665-a61fb80ffd06

A

Building an investment portfolio from scratch can be difficult, especially if you're new to investing. It's easy to feel overwhelmed with so many different investment options out there, but focusing on stocks that are set to outperform the market over the next 12 months is an excellent place to start.Now, let's break down why adding this one exceptional stock, highlighted below, to your portfolio could be a recipe for success.Why You Should Pay Attention to Agilent Technologies (A)Santa Clara, CA-based Agilent Technologies, Inc. was originally a spin-off from Hewlett-Packard. The company is an original equipment manufacturer (OEM) of a broad-based portfolio of test and measurement products serving multiple end markets.On July 11, 2017, A was added to the Zacks Focus List at $59.86 per share. Shares have increased 141.15% to $144.35 since then.Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.02 to $5.50. An also boasts an average earnings surprise of 3.5%.Moreover, analysts are expecting Agilent Technologies' earnings to grow 1.1% for the current fiscal year.Since stock prices respond to earnings estimate revisions, it can be very profitable to buy stocks with an increased earnings outlook. By buying a Focus List stock like A, then, you're likely getting into a company whose future earnings estimates will be raised, potentially leading to price momentum.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 reportAgilent Technologies, Inc. (A) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Agilent Technologies (A) is a Top Stock for the Long-Term

https://finance.yahoo.com/news/why-agilent-technologies-top-stock-143002708.html

f2599e55-9edf-3ee4-ba6e-f0d6e4c513f1

AAL

Wizz Air was named the UK worst airline once again by Which?. (Marek Slusarczyk)Sit back and get ready for takeoff on a Which? approved flight for your next holiday. The consumer platform ranked a number of airlines through surveys of travellers.The study analysed more than 10,000 flights, and data from customers including evaluations of value for money, seat comfort and food and drink. A customer score was calculated based on overall satisfaction and likelihood to recommend.Jet2 impressesWhich? found Jet2 (JET2.L) had wowed customers over the last year, with an overall score of 81%. It took the top spot in short-haul flights and notched five stars for customer service.Jet2 also has among the lowest rate of last-minute cancellations of any airlines in the survey, with just 0.5% cancelled at short notice, according to Civil Aviation Authority (CAA) data.Its performance means customers feel it offers great value for money — scoring it four stars in that category. It also received four stars for the boarding experience, cabin environment and cabin cleanliness.Close behind with tied customer scores of 74% are Icelandair and Norwegian.Low-flyersIn terms of short-haul airlines, Wizz Air (WIZZ.L) came out bottom for the second year in a row, with a customer score of 44%. Delays were cited as a particularly common issue, Which? said.According to CAA data, 63% of the airline's flights were on time in the last year (October 2022-September 2023). About 2% of its flights were delayed by over three hours — higher than most of its rivals.“We do not consider the findings of this report to be representative or an accurate reflection of our performance today, which is among the strongest in Europe," a Wizz Air spokesperson said."We have been honest about our performance in summer 2022, which was not up to our standards. We have invested more than £90m to rectify this and have made significant improvements which the results of this survey fail to recognise, but are evident from independent data, as well as our own."Story continuesAmong budget carriers, Ryanair (RYA.IR) also received a low ranking, with a customer score of 47%. The airline scored just two stars for the boarding experience, cabin cleanliness and cabin environment, and received three stars for value for money.Read more: The seven tax cuts that could offer a lifeline to cash-strapped UK families"Ryanair has industry leading punctuality with average on-time performance of 87% in 2023, despite UK punctuality being severely impacted by the inefficient NATS [National Air Traffic Services] and its incompetent CEO, whose ATC [air traffic control] system has collapsed twice this year delaying thousands of flights and millions of passengers travelling to/from the UK," the company's spokesperson said.Iberia, Vueling and British Airways completed the bottom five for short haul, with customer scores of 49%, 53% and 56% respectively.Fares are on the upWhich? research suggests that in many cases, the standard of service received fell well short of the mark. Many respondents reported difficulties getting hold of customer support when needed, and one in 10 (11%) of those who used email to contact an airline received no response within 90 days.This is despite a bumper year of profits for airlines, which have enjoyed a surge in pent up demand following COVID lockdowns. According to the Office for National Statistics, average UK airfares were as much as £713 last summer.Rory Bowland, editor of Which? Travel, said: “Air fares have soared in recent years, and the bare minimum passengers should expect in return for their hard-earned cash is a reliable service, with friendly, easy to access customer support when they are let down,"Top five short-haul airlinesJet2IcelandAir (ICEAIR.IC)Norwegian Air (NASO.OL)Turkish AirlinesLogan AirBottom five short-haul airlinesBritish AirwaysVuelingIberiaRyanairWizz AirIn it for the long-haulWhich?'s data also showed Singapore Airlines (C6L.SI) and Emirates ranked among the best performers in the long-haul category, with 83% and 81% ratings respectively. Singapore scored highest for boarding, being the only long-haul airline to be given five stars.Germany's Lufthansa (LHA.DE) and Air Canada (AC.TO) both performed poorly, with IAG's (IAG.L) British Airways also bringing up the rear. Air Canada and Lufthansa both scored poorly for seat comfort and food and drink.Top five long-haul airlinesSingapore AirlinesEmiratesVirgin AtlanticQatar AirwaysQantas (QAN.AX)Bottom five long-haul airlinesAir France (AF.PA)American Airlines (AAL)British AirwaysAir CanadaLufthansaWatch: European airlines: Why Ryanair is poised to take offDownload the Yahoo Finance app, available for Apple and Android.

Yahoo Finance UK

The 'worst' and 'best' airlines revealed

https://finance.yahoo.com/news/worst-best-airlines-revealed-082407178.html

cc7d1dfd-4c6b-459c-bb15-701888bef114

AAL

Image source: Upsplash/The Motley FoolLast week, American Airlines increased its checked bag fees. Now, flyers in most markets will have to pay more to check their bags. This news will likely upset those trying to stretch their vacation budgets further. Unfortunately, United Airlines is taking similar steps. As of Feb. 24, flyers will pay higher fees to check their bags. Here's what you need to know.Most flyers will pay an additional $5 to check a bagLast week, United Airlines announced it had increased checked bag fees. The airline noted on its website, "Starting February 24, 2024, fees for your first and second checked bag will go up by $5 in most markets." Before flying, travelers are encouraged to use United's baggage fee calculator to verify the checked bag fees for their route.For domestic routes, flyers without elite status will pay $40 each way to check their first bag. But they can get a $5 discount and pay only $35 by paying this fee in advance online. A second checked bag costs $50, or $45, when prepaid online.Previously, non-elite United fliers with economy tickets paid $35 for their first checked bag or $30 when paying in advance. While $10 round-trip is only a slight fee increase, every extra dollar adds up. Flyers who prefer to pack more when traveling will want to budget for this additional cost before they board their next United flight.Here's how to avoid checked bag fees when flyingIt's understandable if you find this news disappointing. But if you're strategic, you can avoid checked bag fees. Here are a few tips that could help you save money.Featured offer: save money while you pay off debt with one of these top-rated balance transfer credit cardsLearn to pack light: Bringing only a carry-on bag could be a win for your bank account. If you're flying with United, choose a ticket that includes a free carry-on bag to avoid additional checked bag fees. Domestic basic economy tickets don't include a free carry-on bag.Choose a different airline: If you're visiting a destination that Southwest Airlines flies to, you should price out airfare costs and consider this carrier. Regardless of ticket type, all Southwest flyers can check two bags at no additional cost.Consider getting a United credit card: If you're a United loyalist and have been considering getting a new credit card, check your options for United credit cards. You can benefit from free checked bag perks with the right credit card in your wallet.Achieve elite status: It may be worthwhile to pursue elite status with your favorite airline. Many airlines, including United, offer free checked bag benefits to elite flyers. This benefit could help you spend less money on travel costs.Buy a premium ticket: Most airlines offer free checked bag benefits to flyers with premium tickets. When flying on a business or first class ticket with United, you can avoid paying additional checked bag fees. It may be worthwhile to upgrade your ticket.Story continuesBefore booking airfare for your next vacation, consider additional costs like checked bag fees. This way, you can prepare financially to enjoy your trip without added stress. Being strategic and finding ways to avoid extra bag fees could be a win for your personal finances. Check out our list of the best airline credit cards to learn more about the benefits provided.Our picks for 2024's best credit cardsOur experts carefully review the most popular offers and select those that are worthy of a spot in your wallet. These standout cards come with fantastic benefits like sign-up bonuses worth $200 or more, 0% intro APR for up to 21 months, and cash back rates up to 5%.Click here to see our top credit cardsWe're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool recommends Southwest Airlines. The Motley Fool has a disclosure policy.United Joins American Airlines in Increasing Checked Bag Fees was originally published by The Motley Fool

Motley Fool

United Joins American Airlines in Increasing Checked Bag Fees

https://finance.yahoo.com/news/united-joins-american-airlines-increasing-193014734.html

46968c4c-675d-3a4e-94c9-d46677cf6bd0

AAL

American Airlines AAL benefits from an improved debt to equity ratio, strong air-travel demand and fleet-upgrade efforts. However, high costs, declining cargo revenues and low liquidity negatively impact the bottom line.Factors Favoring AALStrong air-travel rebound, especially domestically, benefits American Airlines. In 2023, revenue passenger miles grew 7.6%, prompting a 6.7% rise in average seat miles to meet heightened demand.Bolstered by increased air-travel demand, AAL is expanding routes and networks. In 2022, Seattle-Bengaluru route launched.  Efforts to modernize its fleet also bode well.The carrier impressively targets a $15 billion debt reduction by 2025 through amortization, using surplus and free cash flow. Notably, it reduced debt by $3.2 billion in 2023.Key RisksHigh fuel costs negatively impact the airline's bottom line. Despite a decline from the third quarter of 2023 highs, oil prices remain elevated. Management expects the metric in the $2.65-$2.85 per gallon range in first-quarter 2024. Our estimate is currently pegged at $2.75.Cargo revenues dipped 34.1% year over year in 2023 due to decreased cargo yield from heightened air-freight capacity. Cargo yield per ton mile also declined by 29.4%.Rising labor expenses impact AAL's bottom line. As a result of the deal with pilots, salaries, wages and benefits in fourth-quarter 2023 increased 15.6% from fourth-quarter 2022 actuals. Due to high labor costs, management expects cost per available seat miles (adjusted) in first-quarter 2024 to increase 2-4% from first-quarter 2023 actuals.Zacks RankAALcurrently carries Zacks Rank #3(Hold)Stocks to ConsiderSome better-ranked stocks for investors’ consideration in the Zacks Transportation sector include GATX Corporation GATX and Skywest Inc. SKYW. Each stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.GATX has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the past four quarters and missing the mark in the remaining one. The average beat is 16.47%.Story continuesThe Zacks Consensus Estimate for 2024 earnings has been revised 6.1% upward over the past 90 days. GATX has an expected earnings growth rate of 3.7% for 2024. Shares of GATX have risen 19.5% in the past year.SkyWest's fleet modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s 2024 earnings has improved 11.1% over the past 90 days. Shares of SkyWest have surged 222.1% in the past year.The company has an expected earnings growth rate of more than 100% for 2024. SKYW delivered a trailing four-quarter earnings surprise of 128.02%, on average.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 Airlines Group Inc. (AAL) : Free Stock Analysis ReportSkyWest, Inc. (SKYW) : Free Stock Analysis ReportGATX Corporation (GATX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Here's Why You Should Retain American Airlines (AAL) Stock Now

https://finance.yahoo.com/news/heres-why-retain-american-airlines-150500577.html

315ede7d-716e-3126-9426-6d961a01dab2

AAL

American Airlines (AAL) closed the most recent trading day at $14.65, moving -0.2% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.11%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq lost 0.41%.The world's largest airline's shares have seen a decrease of 1.34% over the last month, not keeping up with the Transportation sector's gain of 1.84% and the S&P 500's gain of 2.7%.Analysts and investors alike will be keeping a close eye on the performance of American Airlines in its upcoming earnings disclosure. The company is expected to report EPS of -$0.24, down 580% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.53 billion, up 2.81% from the prior-year quarter.For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.54 per share and a revenue of $55 billion, signifying shifts of -4.15% and +4.19%, respectively, from the last year.Any recent changes to analyst estimates for American Airlines should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.44% decrease. American Airlines is currently a Zacks Rank #3 (Hold).Story continuesWith respect to valuation, American Airlines is currently being traded at a Forward P/E ratio of 5.77. This represents a discount compared to its industry's average Forward P/E of 8.55.Investors should also note that AAL has a PEG ratio of 0.12 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.59.The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.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.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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 reportAmerican Airlines Group Inc. (AAL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

American Airlines (AAL) Sees a More Significant Dip Than Broader Market: Some Facts to Know

https://finance.yahoo.com/news/american-airlines-aal-sees-more-215018950.html

d09d553b-3e0c-314e-8d1e-6ecfb2b91e6e

AAPL

Major League Soccer executive vice president of media Seth Bacon told Yahoo Finance's Alexandra Canal that the league's streaming deal with Apple (AAPL) "set the bar at a different level for people to think about how you do a partnership with a media company."Yahoo Finance Reporters Pras Subramanian, Alexandra Canal, and Josh Schafer join the Live show to discuss what makes the MLS and Apple agreement different from other sports streaming deals.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 Stephanie Mikulich.Video TranscriptALEXANDRA CANAL: I've been looking at the future of Major League Soccer's deal with Apple TV. The league's latest season kicked off last week. And it got me thinking about the current fragmentation of sports rights.So, basically, guys, unlike other sports, like the NFL where you need to sign up for multiple streamers, have a cable package just to watch the full season. You don't have to do that with the MLS. They consolidated all of their media rights a few years before they renegotiated their contract.They wanted one true partner. And they found that in Apple. It was also attractive to Apple as well because they didn't have to have competitors in the mix. They could have full control over the distribution of these games.And there's a lot of people out there that are thinking that this could have a big boon when you think about the Vision Pro headset and the opportunities there. I did have a chance to speak with Seth Bacon. He is the executive vice president of media for the MLS.And he said that this is something that is working. They're seeing this partnership lead to an increase of viewership numbers and increase of signups to Apple TV. But I don't know if you could see this with other types of players like the NFL, for example. I feel like you're going to always have--JOSH SCHAFER: The NFL might be too big, right?Story continuesALEXANDRA CANAL: Right.JOSH SCHAFER: And you're never going to get one sole partner when you think about the fact that one big tech company pays $1 billion for 15 games a year. Think about how much you would have to pay to have every NFL game. I think at some point, maybe it's just inconceivable just from that standpoint of like how much NFL rights are worth.But you're. Right for MLS, it made a ton of sense. It's a league that wants to grow, a league that's looking for a consistent place for people to find them. I think sometimes when you're on some of these local sports networks, it's useful, but also, sometimes people don't really know where to find those.Not everyone still has traditional cable. Right now, you could make the argument that, oh, they're on Apple plus. That's hard. I have to pay for Apple plus, et cetera.But at least where to get it. MLS is on Apple TV plus. There's one place to go. And I think that's helpful for consumers from that standpoint.PRAS SUBRAMANIAN: But it's $12.99 a month. It's yet another thing to add to your collection of streaming services. And you really got to be a big MLS fan if you want to do this.And I was a casual fan. And I feel like it's a bit too much money for a casual fan to get involved. I want to follow NYCFC and not so much the Red Bulls, et cetera.But that's sort of the equation you got to do here with this service. But I think you're right. I think it's a great service with the collect all of it in one spot.And you mentioned the Vision Pro. Maybe there's a good use case there for someone who has this, someone who's a fan. I don't know. It's maybe a more interactive or more dynamic way to watch the content.ALEXANDRA CANAL: Yeah. And Apple's also producing a docuseries. Sort of similar like we've seen with Formula One, Drive to Survive. So potentially that could add more fans.And I also think Lionel Messi coming to the MLS was huge for not only the league, but also for Apple and driving a lot of viewership.JOSH SCHAFER: I'm excited to see what goes on the Vision Pro from a sports perspective. If they can put you in a moment--ALEXANDRA CANAL: I mean, it's a 10-year deal.JOSH SCHAFER: --that's the kind of thing that you don't really get right now. And you would think that's where these headsets are going. So it'll be interesting to see what happens with that.PRAS SUBRAMANIAN: Yeah.

Yahoo Finance Video

What sets the Major League Soccer, Apple streaming deal apart

https://finance.yahoo.com/video/sets-major-league-soccer-apple-230224199.html

d9b0a61c-bc89-3d27-8e71-a6d0755ed1a8

AAPL

Netflix wants its customers to stop paying for its streaming subscription through Apple’s App Store.Members billed through Apple may soon be prompted to change their payment plan, a new addition to Netflix’s help site reads.According to a spokesperson for Netflix, if a new payment isn’t added by the monthly subscription renewal date, the member will not be able to use their Netflix account until a new payment method is added.The policy change will affect members using Netflix’s basic plan in countries including the United States and Canada, according to the spokesperson.The update by Netflix comes as Apple has faced years of pushback from apps in its iOS App Store for taking a 30% cut of all in-app purchases. Apple has said it takes a lower 15% cut in some situations.Netflix stopped accepting Apple payments for new and rejoining customers in 2018, but Netflix’s policy change means existing customers who had been grandfathered into paying through Apple will now have to make the switch.Previously, Apple had prohibited many iOS apps from skirting the 30% charge by accepting payments outside of Apple’s proprietary payment system. But in 2021, Apple relaxed its restrictions for Netflix and other streaming companies like Spotify, allowing those apps to insert a link out to external websites to let people set up or manage their accounts outside of Apple’s App Store.Apple’s in-app purchase fees have been the subject of ire from app developers for years. Last month, in a blow to Apple, the US Supreme Court declined to review a lower court’s order requiring Apple to allow all developers to add buttons or links that direct customers to purchase in-app content through other payment channels.The decision was connected to a 2020 lawsuit against Apple by Epic Games, the maker of the popular video game Fortnite, which accused Apple of antitrust violations for its in-app fee collection practices.- CNN’s Brian Fung contributed to reporting.For more CNN news and newsletters create an account at CNN.com

CNN Business

You may lose access to your Netflix account if you’re paying through Apple

https://finance.yahoo.com/news/may-lose-access-netflix-account-010146472.html

60125fb1-2453-3184-a3b3-7e1114057fc5

AAPL

Apple (NASDAQ: AAPL) stock has underperformed the broader market this year, down 10% year to date. Citi analyst Atif Malik rates the stock a buy, but he trimmed his near-term price target over concerns about sluggish iPhone demand in China.Malik's new price target is $220 a share, which still represents an upside over the next 12 months or so of 27% over the current share price of roughly $173.Why Apple stock is downWhile Wall Street generally operates on a shorter time frame than the average investor, analysts' opinions can be valuable in understanding what is driving the stock's performance in the short term. In this case, the analyst cited weakening smartphone sales in China for the price target cut.Apple is coming off a strong quarter, where iPhone revenue grew 6% year over year in the December-ending quarter. However, a recent report from Counterpoint Research showed that weekly smartphone unit sales in China through the first six weeks of 2024 were down 7% year over year. Most notably, iPhone unit sales were down 24%.Weak demand in China doesn't mean Apple is losing its edge. While iPhone revenue in China fell last quarter, it also hit records in Europe and the rest of Asia Pacific.Is Apple stock a buy?China is a wildcard for Apple, but the company's growing installed base of devices, which continues to hit record highs, is a better indicator of its global brand strength and where the business is headed over the long term.The stock is still a good investment. Apple's high customer satisfaction sets up solid growth prospects as the company introduces new features powered by artificial intelligence for its flagship product.Should you invest $1,000 in Apple right now?Before you buy stock in Apple, 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 Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Story continuesStock 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, 2024Citigroup is an advertising partner of The Ascent, a Motley Fool company. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.Apple Stock Has 27% Upside, According to 1 Wall Street Analyst was originally published by The Motley Fool

Motley Fool

Apple Stock Has 27% Upside, According to 1 Wall Street Analyst

https://finance.yahoo.com/news/apple-stock-27-upside-according-201112216.html

cd812587-2ac0-368e-a02b-87257a8a6eb2

AAPL

As the Magnificent Seven mega-cap stocks experience heightened volatility, Schwab Asset Management CEO and Chief Investment Officer Omar Aguilar joins Yahoo Finance Live to provide insight into how investors should navigate their portfolios during this period.Aguilar highlights a notable shift in the mega-cap tech sector, transitioning from being "a momentum trade to a fundamental trade" due to fading AI hype. He emphasizes that for these companies to deliver on future expectations, they will require significant capital expenditure and research and development investments. As expectations for these stocks remain elevated, "investors are questioning" whether the current levels of gains can be sustained over the long term.With the highly anticipated Consumer Price Index (CPI) data set for release Tuesday, Aguilar advises investors to "expect more volatility." However, he suggests that investors should view this volatility as an opportunity to rebalance their portfolios and strategically position themselves for evolving market conditions.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: Meta isn't the only megacap seeing some losses. For more on the recent struggles from the Magnificent Seven, and where investors should look to turn to outside of big tech. We want to welcome in Omar Aguilar, Schwab Asset Management CEO, and CIO.Omar, thank you so much for being here. So as we see, what looks like a faltering perhaps of the Mag Seven, as well as a broadening of rallies elsewhere in the market, where do you think investors should be looking? Is it either, or is it both, how do you think about it?OMAR AGUILAR: Well, that's a great question and very timely I think as you were discussing this earlier. The momentum trade has started worldwide when everybody was talking about AI over a year ago. I think that momentum trade started to just be as just a function of excitement, just a function of-- investors getting really excited about the potential.Story continuesI think as we go in through this year, this has actually shifted from just being just a momentum trade to be a fundamental trade. And if you actually think so earnings, despite the valuation numbers for these Magnificent Seven, has been significantly better than the rest of the market. So they have outperformed over EPS year-over-year growth of 60%. Whereas the rest of the market has actually been on a decline of EPS growth.So when you actually put that together with the fact that they also have had very consistent free cash flow yields, you know, that actually provides a lot of the support. Now, that's the past. The future, basically, expectations required a lot of the discussion that you just had, which is a significant amount of ramp up of CapEx and R&D in order for them to support what the market expects they will deliver in the future.- Omar, is it that the next shoe to drop here? That once these companies report in coming weeks, there's no possible way they can meet up to the expectations that have been priced into their stocks. So that's what investors are doing today selling these positions.OMAR AGUILAR: Well, I think the investors are looking at the relative valuations. They're basically looking at it. It looks a little bit higher now compared to any other big runs in markets.They're still not at the level of what we saw in the late '90s or even in the energy boom that we had afterwards. So still in that context, you know, it's really more about the function of the expectations.Over the next five years is that they will deliver 30% top line growth and 17% on EPS growth, which is very hard to sustain. So investors are questioning whether or not that's actually sustainable. And there are a couple of those seven that are in the process of ramping up that R&D, and that CapEx. That obviously may have a better future going forward.JULIE HYMAN: Omar, I want to ask about CPI tomorrow, right? Because it has seemed in recent weeks that the focus has shifted a little bit away from the Fed, and to earnings, and to the AI theme. Does CPI tomorrow shift the focus back, or does it just depend on what the number shows?OMAR AGUILAR: I think, in general, we should expect more volatility. I think once we got past the earnings season, you know, I think the question becomes the CPI reading is really just going to ask, or give us a little more information of what the reaction function by the Fed might be. And it's really just about the timing where they may actually come up with the first rate cut.And I think investors will continue to look at opportunities to take that volatility, whether it's valuation-driven, or whether it's related to macro to be able to rebalance their portfolio and strategically positioned for the next six months on an environment that will have lower interest rates on the short part of the curve.- If one is worried about the AI trade fizzling out, Omar, what is the best sector they should be looking at right now and make your case?OMAR AGUILAR: Yeah, I think what we have encouraged our clients to do is to-- if you think about the economic cycle as we are today, even with the CPI numbers tomorrow, we have all signed that this is the last phase of the cycle. What that means is that soft landing scenario that the Fed has talked to us is basically now being a reality.And what that means is that the cyclical trade going into the next phase is probably areas that will basically provide good opportunities. And that includes materials, that includes energy, that includes areas that are a little bit more prone to lower interest rates, or at least a shape of the yield curve that is more normal like financials.So I think we're encouraged clients to start looking at that. And we have seen already small caps are incredibly attractive, and the rest of the market outside of just the large mega caps will probably do well.

Yahoo Finance Video

AI trade is now strictly 'fundamental': Strategist

https://finance.yahoo.com/video/ai-trade-now-strictly-fundamental-211449801.html

4d5c8ec3-78ef-3fd7-9b08-8d90ee864eb3

ABBV

Dive Brief:The Food and Drug Administration on Saturday approved Alvotech and Teva Pharmaceuticals’ Simlandi, a biosimilar of the most popular version of AbbVie’s rheumatoid arthritis drug Humira. The drug, which can be directly substituted by a pharmacist, was rejected by the FDA twice before due to manufacturing issues at a plant in Iceland.The partners didn’t announce a launch date or a price for Simlandi, which will be the 10th Humira biosimilar reach market since Amgen’s Amjevita arrived on Jan. 31, 2023. Some biosimilars have launched at a steep upfront discount while others have a list price only slightly below Humira’s to allow for negotiation over rebates.Alvotech also announced a stock sale Monday, raising around $166 million at $16.41 a share. The company had $68 million in cash and equivalents on Sept. 30, after recording losses of $275 million on $30 million in revenue through the first nine months of 2023.Dive Insight:One year into the launch of Humira biosimilars, U.S. market share for the copycat drugs is at less than 2%, with Amjevita and Organon’s Hadlima taking the biggest chunk, according to a recent report from biosimilar manufacturer Samsung Bioepis. In providing investor guidance for 2024, AbbVie commercial chief Jeffrey Stewart said the company “once again secured broad formulary access” for Humira.“While there will be some step down in coverage year over year, we will still have parity access to biosimilars for the vast majority of U.S. patient lives,” he said during a conference call with analysts outlining AbbVie’s fourth quarter 2023 earnings.While biosimilars haven’t gained much market share, they have affected AbbVie’s revenue. Full year 2023 Humira revenue in the U.S. was $12.2 billion, down by more than one-third over 2022, suggesting intense price competition to remain on insurance coverage lists.Simlandi won’t be the first interchangeable, or pharmacist substitutable, Humira. That honor went to Boehringer Ingelheim’s Cyltezo, which is a lower-concentration formula. It so far has gained 0.1% market share, according to the Samsung Bioepis report.Story continuesBoehringer and Alvotech have aimed for interchangeability status in the hope it will give them a competitive advantage. Forty-seven states allow automatic substitution, although in most the pharmacist must tell the prescribing physician about the substitution, allowing it to be overridden.Patients stable on branded Humira, along with their physicians, may be reluctant to move to a biosimilar. As a result, uptake of biosimilars for chronic diseases like rheumatoid arthritis has been slower than it has been for oncology, which tends to have shorter treatment courses.This story was originally published on BioPharma Dive. To receive daily news and insights, subscribe to our free daily BioPharma Dive newsletter.

BioPharma Dive

Humira biosimilar from Alvotech, Teva wins FDA approval on third attempt

https://finance.yahoo.com/news/humira-biosimilar-alvotech-teva-wins-122000201.html

ba502c3b-e2a9-3c89-8d9a-7456405563d1

ABBV

Strange but true: seniors fear death less than running out of money in retirement.Also, retirees who have constructed a nest egg have valid justifications to be concerned, since the traditional ways to plan for retirement may mean income can no longer cover expenses. Some retirees are now tapping their principal to make a decent living, pressed for time between decreasing investment balances and longer life expectancies.Your parents' retirement investing plan won't cut it today.Years ago, investors at or close to retirement could put money into fixed-income assets and depend on appealing yields to generate consistent, solid pay streams to fund a comfortable retirement. 10-year Treasury bond rates in the late 1990s floated around 6.50%, but unfortunately, those days of being able to exclusively rely on Treasury yields to fund retirement income are over.While this yield reduction may not seem drastic, it adds up: for a $1 million investment in 10-year Treasuries, the rate drop means a difference in yield of more than $1 million.And lower bond yields aren't the only potential problem seniors are facing. Today's retirees aren't feeling as secure as they once did about Social Security, either. Benefit checks will still be coming for the foreseeable future, but based on current estimates, Social Security funds will run out of money in 2035.Unfortunately, it looks like the two traditional sources of retirement income - bonds and Social Security - may not be able to adequately meet the needs of present and future retirees. But what if there was another option that could provide a steady, reliable source of income in retirement?Invest in Dividend StocksWe feel that these dividend-paying equities - as long as they are from high-quality, low-risk issuers - can give retirement investors a smart option to replace low-yielding Treasury bonds (or other bonds).Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.Story continuesOne approach to recognizing appropriate stocks is to look for companies with an average dividend yield of 3% and positive average annual dividend growth. Numerous stocks hike dividends over time, counterbalancing inflation risks.Here are three dividend-paying stocks retirees should consider for their nest egg portfolio.AbbVie (ABBV) is currently shelling out a dividend of $1.55 per share, with a dividend yield of 3.48%. This compares to the Large Cap Pharmaceuticals industry's yield of 2.63% and the S&P 500's yield of 1.59%. The company's annualized dividend growth in the past year was 4.96%. Check AbbVie (ABBV) dividend history here>>>Brixmor Property (BRX) is paying out a dividend of $0.27 per share at the moment, with a dividend yield of 4.79% compared to the REIT and Equity Trust - Retail industry's yield of 4.44% and the S&P 500's yield. The annualized dividend growth of the company was 8.33% over the past year. Check Brixmor Property (BRX) dividend history here>>>Currently paying a dividend of $0.14 per share, Eagle Bancorp Montana, Inc. (EBMT) has a dividend yield of 4.27%. This is compared to the Banks - Midwest industry's yield of 3.35% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 1.82%. Check Eagle Bancorp Montana, Inc. (EBMT) dividend history here>>>But aren't stocks generally more risky than bonds?It is true that stocks, as an asset class, carry more risk than bonds, but high-quality dividend stocks not only have the ability to produce income growth over time but more importantly, can also reduce your overall portfolio volatility relative to the broader stock market.An upside to adding dividend stocks to your retirement portfolio: they can help lessen the effects of inflation, since many dividend-paying companies (especially blue chip stocks) generally increase their dividends over time.Thinking about dividend-focused mutual funds or ETFs? Watch out for fees.If you prefer investing in funds or ETFs compared to individual stocks, you can still pursue a dividend income strategy. However, it's important to know the fees charged by each fund or ETF, which can ultimately reduce your dividend income, working against your strategy. Do your homework and make sure you know the fees charged by any fund before you invest.Bottom LineWhether you select high-quality, low-fee funds or stocks, seeking the steady income of dividend-paying equities can potentially offer you a path to a better and more stress-free retirement.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 reportAbbVie Inc. (ABBV) : Free Stock Analysis ReportEagle Bancorp Montana, Inc. (EBMT) : Free Stock Analysis ReportBrixmor Property Group Inc. (BRX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

How to Maximize Your Retirement Portfolio with These Top-Ranked Dividend Stocks

https://finance.yahoo.com/news/maximize-retirement-portfolio-top-ranked-141003651.html

37525d50-a0f6-36f4-ab7f-e652de38dfa9

ABBV

Pharmaceutical companies play a tremendous role in modern healthcare. While sometimes controversial, drugmakers design medicine to treat some of the worst ailments plaguing society and constantly innovate to improve human life.Their long-term relevance in healthcare makes the pharmaceutical business an excellent place for investors to find long-term investment ideas. These three stocks offer investors a mix of solid financials, long-term upside, and passive income.A high-yield dividend stockPfizer (NYSE: PFE) is a mainstay in the pharmaceutical space. The company has been around for decades and has shifted multiple times with blockbuster acquisitions. Most recently, Pfizer became a leading vaccine company during the COVID-19 pandemic, generating tremendous revenue from Comirnaty and Paxlovid. However, those sales fell off as the pandemic passed, which soured Wall Street on Pfizer's growth outlook. The stock has fallen a whopping 55% from its high.But it's not all bad. Pfizer has made moves to bolster its long-term pipeline, including acquiring Seagen for $43 billion late last year to bolster its oncology pipeline.The company is poised to lean on its oncology and mRNA vaccine technology for long-term growth. Management believes its oncology segment can double its footprint of treated patients by 2030.Today, the company pays a hefty dividend that yields 6.3% at the current share price and is funded by a solid 76% payout ratio using estimated 2024 earnings. Shares also trade at a forward P/E ratio of just 12, which is a bargain if the company can grow earnings by 10% annually moving forward, as analysts believe.The balance of growth and yieldAbbVie (NYSE: ABBV) has been a monster investment since being spun off from Abbott Laboratories over a decade ago. Since then, shares have turned a $10,000 investment into over $82,000. The company rode blockbuster sales from Humira for years, but that patent expired last year. Fortunately, AbbVie has aggressively filled that hole with acquisitions and organic growth from up-and-coming products.Story continuesThe company bought Botox owner Allergan for $63 billion in 2020 and expects rising star products Rinvoq and Skyrizi to combine for $27 billion in annual sales by 2027. Despite Humira sales, which represented 36% of all revenue in 2022, dropping 40% year over year in Q4 2023, analysts expect AbbVie to grow revenue over the long term. That's due mainly to these new growth catalysts.Investors can get a solid 3.4% starting yield; the payout ratio is only 48% of cash flow. The company's dividend has risen yearly since the spin-off and extends decades if you return to its days with Abbott. Shares trade at a forward P/E of 16, a fair price, considering analysts expect earnings will grow at a mid- to high-single-digit rate over the coming years.An industry disruptor with long-term upsideGinkgo Bioworks (NYSE: DNA) has a pioneering new technology that could change the industry entirely. The company uses genetic engineering to create microbes that perform specific functions. Potential uses span many sectors, including vaccine manufacturing, cannabinoids, and even probiotics in plant foods. This synthetic biology opens up a massive market opportunity for Ginkgo Bioworks.The company generates revenue upfront when it launches a program, but long-term profits will primarily stem from royalties and fees from successful product development. Ginkgo Bioworks is still a very young company with just $250 million in annual revenue and it trades at a $2.6 billion market capitalization. There's far more risk in Ginkgo than these first two stocks, but the potential reward is also far greater. It's a potential multibagger if the company establishes leadership in the synthetic biology industry.Ginkgo Bioworks isn't profitable yet, and analysts don't expect future profits soon. However, it's sitting on a massive $944 million cash pile and is burning just $60 million in cash each quarter or so, which gives investors the ability to be patient and let this nascent company work toward realizing its full potential. You probably shouldn't buy the stock if you don't believe in the technology and its long-term uses, but it's hard to deny the upside if things work out.Should you invest $1,000 in Pfizer right now?Before you buy stock in Pfizer, 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 Pfizer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of March 8, 2024Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories and Pfizer. The Motley Fool has a disclosure policy.3 Pharmaceutical Stocks to Buy Hand Over Fist in March was originally published by The Motley Fool

Motley Fool

3 Pharmaceutical Stocks to Buy Hand Over Fist in March

https://finance.yahoo.com/news/3-pharmaceutical-stocks-buy-hand-132800802.html

fb44732e-2eec-394a-808f-7d1c65b43b8f

ABBV

Biotech stock MoonLake popped Monday after the company said its experimental psoriatic arthritis treatment beat out AbbVie's Humira.Continue reading

Investor's Business Daily

MoonLake Jumps After Arthritis Drug Tops AbbVie Blockbuster Humira In A Key Test

https://finance.yahoo.com/m/9770af9d-30ea-313b-b522-b0226287bf6a/moonlake-jumps-after.html

9770af9d-30ea-313b-b522-b0226287bf6a

ABNB

Travel booking companies are foretelling a moderation in consumer demand to come in 2024. Pantheon Macroeconomics Founder and Chief Economist Ian Shepherdson joins Yahoo Finance as part of the Travel Guide 2024: Industry Insights special, commenting on wage growth and consumers' savings coming out of the COVID-19 pandemic."There's a lot less savings hanging around that was built up during the pandemic. And if you look at the distribution of where that money is still sat, it's almost entirely in the hands of the top 20%. Most households now don't have any of the pandemic savings still remain, so they can't spend it again — they spent it once, they can't do it again," Shepherdson says. "So, I think that suggests maybe a dichotomy where if you're at the top end of the business — the travel and leisure sectors, and maybe even in terms of goods as well — your customers still have money. But most households, by definition, are not in the top 20%, and they're going to find things much more difficult."Catch more of Yahoo Finance's Travel Guide 2024: Industry Insights special coverage this week, or watch this full episode of Yahoo Finance Live here.Editor's note: This article was written by Luke Carberry Mogan.Video TranscriptSEANA SMITH: Can that strong consumer that reignited the revenge travel surge in 2023 still keep the economy afloat? Now, recent quarterly results from Expedia, Airbnb, Booking.com just to name a few pointing to a moderation in consumer spending. Now, this comes as Americans pull back on their discretionary spending. So what does that tell us about the consumer, and more broadly speaking, about the economy?Joining us now as part of Yahoo Finance's travel guide 2024 industry insights is Ian Shepherdson. He's Pantheon macroeconomics founder and chief economist. It's good to have you here. So let's talk about just what you're seeing, the trends that you're noticing from the consumer because we spent months and months and months talking about the fact that nothing is prompting Americans, consumers to really pull back on spending, yet we're starting to see that shift just a bit.Story continuesIAN SHEPHERDSON: Yeah. I like the word moderation. I think that's a pretty fair description of what's likely to happen over the course of this year. You know, there's a couple of things to think about. First of all, there's just a bit less cash flow around for the consumer than there was last year. We've got slightly slower payroll growth, slower wage growth. We've got a much smaller annual uplift of Social Security payments this year, which gave 70 million people last year an 8.7% pay increase in January. This year, it's 3.2%.And then on the balance sheet side of the consumer story, there's a lot less savings hanging around that was built up during the pandemic. And if you look at the distribution of where that money is still sat, it's almost entirely in the hands of the top 20%. Most households now don't have any of the pandemic savings still remaining. So they can't spend it again. They spent it once. They can't do it again.So I think that suggests maybe a dichotomy where if you're at the top end of the business, the travel, the leisure sectors, and maybe even in terms of goods as well, your customers still have money. But most households by definition are not in the top 20%. And they're going to find things much more difficult. They're going to be relying on cash flow rather than savings. And they've got a lot less cash flow than they did. So I can see that bifurcation. And in the mass market, yeah, I think the moderation will become quite visible over the next few months.BRAD SMITH: And so how does that flow through to some of the companies that we were just laying out here? Where perhaps in that discretionary spend here on the experience economy and in that travel experience are you seeing consumers at least think about perhaps trading down?IAN SHEPHERDSON: Yes, trading down. But at the very high end, I think things are going to be fine. The stock market has boomed over the last few months, and a lot of the people in the top 20%, especially the 1%, are still holding onto huge gains both in cash and other less liquid assets that they've accumulated over the last few years. It's more the kind of middle and lower end of the market that's, I think, going to be struggling for occupancy or for people's willingness to spend on extras.All the trading up that we saw in that sort of post pandemic surge of the revenge spending in restaurants and leisure activities and concerts and movies and all that sort of stuff, at the margin, I would expect that the extra dollar that we were seeing over the last couple of years just not to be there to quite such a same extent. I don't overdo this. I'm not looking for the consumer to roll over at all.But real income growth after tax last year grew by more than 4%, which is almost double the long-run average. There was a lot of money around. This year, it'll be more like two, which is a little bit below the long-run average. So not terrible. But I think if anyone's in the consumer facing world just extrapolating what they saw in '23 and hoping to get a repeat performance in '24, that's going to be a struggle.SEANA SMITH: Seeing as we have consumers pushing back on higher spending, consumers trading down in some instances, what do you think that tells us then about that last mile fight here to ease inflation? Or, in fact, are we going to see maybe inflation continue to ease in that last mile won't be as tough as maybe some forecasters had initially anticipated?IAN SHEPHERDSON: Yeah. I mean, there's been a lot of hysteria over one, not great inflation print for January. But if you look at the performance over the second half of last year, the core PCE deflator, which is the number the Fed really cares about, that was 2% annualized in the third quarter and 2% annualized in the fourth quarter. I mean, that's the target rate.So we've made an enormous amount of progress. And I'm not really worried that it's going to be difficult to keep it down at that rate in the foreseeable future. Yeah, you get bad months. You might even get a bad quarter. But the big picture is, I think, one of much less pressure across supply chains.We're not seeing expanding margins like we saw in '22/'23. And in some sectors, margins have come down quite a lot. That's why used car prices are falling so fast because dealers' margins have dropped very sharply. And I think we'll see that spreading across more sectors as consumers, again, make that marginal decision with the extra dollar to keep it rather than to spend it.So that should keep a bit of a lid on some of the inflation pressure as well. And across a big array of services, it's really all about the labor market. And the fact is that wage growth, which was at the peak 6% is now heading rapidly down to less than 4%. So all of these things are moving in the right direction. Some of it's still in the pipeline rather than in the CPI and the PCE inflation data, but it'll get there. It's just a matter of time.BRAD SMITH: With regard to that, leisure and hospitality was, of course, the hardest hit over the course of the pandemic and then had some of the biggest comeback that it needed to make as well in the labor and employment situation. Where are we starting to see that normalize?IAN SHEPHERDSON: Oh, I mean I think you can see pretty clearly that total frenzy of rehiring that we saw beginning in the summer of '21 and stretching really right the way through '22, that's pretty much over now. And what's interesting is that you can see that in the way that employees are behaving because what we saw in '21 and '22 was a huge increase in the number of people voluntarily quitting their jobs just so they could walk across the street to a different hotel or a different restaurant and pick up a pay raise. Great. Why wouldn't you do that?And we saw that behavior on a scale that we've never seen before in '21 and '22. And now it's back to normal. So the quits rate, which is the official measure of this behavior is now exactly where it was in 2018/19. And we know that the number of job openings is declining pretty steadily. And we know that wage growth is slowing as well. So we've got a fairly uniform picture here of a labor market that's beginning to look recognizably normal looking back at the pre-pandemic period.And in that pre-pandemic period, we did not have an inflation problem. In fact, most of the 10 years running up to the pandemic, we were fretting, Fed was fretting that inflation was too low. I'm not suggesting we're immediately going to go back to inflation that's too low, but I do think we're heading back to the conditions where getting to the target and staying there is an entirely sensible forecast at this point.SEANA SMITH: Ian Shepherdson, really interesting insight. Thanks so much for taking the time to join us here this morning. Pantheon macroeconomics founder and chief economist, thanks so much, Ian.

Yahoo Finance Video

Travel economy: Post-pandemic demand expected to moderate

https://finance.yahoo.com/video/travel-economy-post-pandemic-demand-165950697.html

b83c8c57-1792-3466-b7ab-48251cecdad2

ABNB

SAN FRANCISCO, Feb. 26, 2024 /PRNewswire/ -- Airbnb, Inc. (NASDAQ: ABNB) announced today that incoming Chief Financial Officer (effective March 1, 2024), Ellie Mertz, will speak at the Morgan Stanley Technology, Media & Telecom Conference on Monday, March 4, 2024 beginning at 2:10pm PT / 5:10pm ET. A live webcast of the session will be available to the public at https://cc.webcasts.com/morg007/030424a_js/?entity=138_FJDWOQU. A replay will be made available on the Investor Relations website at https://investors.airbnb.com.About AirbnbAirbnb was born in 2007 when two Hosts welcomed three guests to their San Francisco home, and has since grown to over 5 million Hosts who have welcomed over 1.5 billion guest arrivals in almost every country across the globe. Every day, Hosts offer unique stays and experiences that make it possible for guests to connect with communities in a more authentic way. CisionView original content:https://www.prnewswire.com/news-releases/airbnb-to-participate-in-the-morgan-stanley-technology-media--telecom-conference-302070771.htmlSOURCE Airbnb, Inc.

PR Newswire

Airbnb to Participate in the Morgan Stanley Technology, Media & Telecom Conference

https://finance.yahoo.com/news/airbnb-participate-morgan-stanley-technology-210500553.html

96c83f1c-b197-357e-a9a5-a05fc538a901

ABNB

Airbnb is banning the use of indoor security cameras in all of its listings, the company announced on Monday. Previously, Airbnb has allowed hosts to have indoor security cameras in common areas, such as hallways and living rooms, as long as they disclosed them on their listing page and did not place them in bathrooms and areas where guests sleep.In a blog post, the company said it is now banning indoor security cameras "regardless of their location, purpose or prior disclosure." Airbnb says a majority of the listings on its platform don't report having an indoor security camera, and that the update will only impact "a smaller subset of listings." The change comes after numerous reports of guests finding hidden cameras in their rentals. The update won't get rid of the issue of hidden cameras, as it targets rule-abiding hosts.Airbnb is also introducing new rules for outdoor security cameras and noise-decibel monitors. Hosts will be required to disclose the presence and location of outdoor cameras before guests book. Hosts can't use outdoor cameras to monitor indoor spaces and aren't allowed to place them in private outdoor areas like an enclosed outdoor shower or sauna.Hosts also need to disclose the use of noise-decibel monitors, which are used to determine if a prohibited party is going on, in common spaces of their listings. Airbnb permanently banned parties at all of its listings back in 2020.“Our goal was to create new, clear rules that provide our community with greater clarity about what to expect on Airbnb,” Juniper Downs, Airbnb’s head of community policy and partnerships, said in the company's blog post. "These changes were made in consultation with our guests, Hosts and privacy experts, and we’ll continue to seek feedback to help ensure our policies work for our global community.”The new policy goes into effect on April 30. If a host breaks the new rules and a guest reports the presence of a camera, Airbnb will investigate and possibly remove the listing or account from the platform.Airbnb has a new label to denote its top (and worst) listingsThis article originally appeared on TechCrunch at https://techcrunch.com/2024/03/11/airbnb-is-banning-indoor-security-cameras-inside-its-listings/

TechCrunch

Airbnb is banning indoor security cameras inside its listings

https://finance.yahoo.com/news/airbnb-banning-indoor-security-cameras-155104520.html

d5f45799-cc99-31d5-aa5b-0be6b6ff0f33

ABNB

NEW YORK (AP) — Airbnb said Monday that it's banning the use of indoor security cameras in listings on its site around the world by the end of next month.The San Francisco-based online rental platform said it is seeking to “simplify” its security-camera policy while prioritizing privacy.“These changes were made in consultation with our guests, Hosts and privacy experts, and we’ll continue to seek feedback to help ensure our policies work for our global community," Juniper Downs, Airbnb’s head of community policy and partnerships, said in a prepared statement.Airbnb had allowed the use of indoor security cameras in common areas, as long as the locations of the cameras were disclosed on the listings page. Under the new policy, hosts will still be allowed to use doorbell cameras and noise-decibel monitors, which are only allowed in common spaces, as long as the location and presence of the devices are disclosed.Airbnb expects the policy update to impact a small number of hosts because the majority of its listings do not report having indoor security cameras.The policy change will take effect April 30.In its fourth-quarter earnings report last month, Airbnb said its bookings and revenue rose, and the company said demand remains strong.

Associated Press Finance

Airbnb is banning the use of indoor security cameras in the platform's listings worldwide

https://finance.yahoo.com/news/airbnb-banning-indoor-security-cameras-192904475.html

b28e2909-43c3-3201-b8b1-fa6662943a23

ABT

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 Abbott Laboratories (NYSE:ABT) in the fourth quarter 2023 investor letter. Headquartered in North Chicago, Illinois, Abbott Laboratories (NYSE:ABT) is a healthcare products manufacturer. On February 23, 2024, Abbott Laboratories (NYSE:ABT) stock closed at $119.46 per share. One-month return of Abbott Laboratories (NYSE:ABT) was 5.30%, and its shares gained 19.74% of their value over the last 52 weeks. Abbott Laboratories (NYSE:ABT) has a market capitalization of $ 207.285 billion.Polen Global Growth Strategy stated the following regarding Abbott Laboratories (NYSE:ABT) in its fourth quarter 2023 investor letter:"Abbott Laboratories (NYSE:ABT), a globally dominant healthcare business serving a broad range of end markets, was another position we added to in the period. The stock has come under pressure in recent quarters as the company has experienced a significant (and expected) decline in sales tied to pandemic-era COVID testing. However, we feel this amounts to little more than a distraction, as the core business continues to perform very well. Nothing has changed around our expectations for long-term growth, yet the stock’s valuation has compressed, making for an attractive opportunity to add to the position given the long-term durable growth profile of this business."Story continuesA patient viewing their medical diagnosis on a digital healthcare ecosystem.Abbott Laboratories (NYSE:ABT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Abbott Laboratories (NYSE:ABT) was held by 64 hedge fund portfolios, down from 69 in the previous quarter, according to our database.We discussed Abbott Laboratories (NYSE:ABT) in another article and shared the list of least shorted stocks. 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:13 Best Bank Stocks To Invest In For Long-Term14 Best Beaten Down Stocks To Buy Right NowKen Fisher Portfolio: 12 Biggest PositionsDisclosure: None. This article is originally published at Insider Monkey.

Insider Monkey

What Makes Abbott Laboratories (ABT) a Lucrative Investment?

https://finance.yahoo.com/news/makes-abbott-laboratories-abt-lucrative-094002479.html

c3544ee5-9725-30a1-9bf9-3294ab1c4fd9

ABT

Abbott Laboratories (NYSE: ABT) has proven itself as a long-term winner for investors. The healthcare giant has grown earnings over time, and the shares have climbed too. In just the past year, Abbott stock has advanced about 18%. On top of this, Abbott has paid investors dividends year after year, even increasing these payments on an annual basis. So, the company also offers shareholders the promise of passive income growth.Abbott's performance has been driven by its diversification across four major businesses -- medical devices, diagnostics, nutrition, and established pharmaceuticals -- and its ability to develop market-leading products. For example, in recent years, Abbott's coronavirus tests have generated billions of dollars, and, in the medical devices business, its FreeStyle Libre continuous glucose monitoring system continues to be a market leader.Now, considering this top track record, you may be wondering if Abbott can keep the good times rolling -- and even help you become a millionaire. Let's find out.Image source: Getty Images.Abbott's successful diversificationWhat I like most about Abbott is its successful diversification, with leading products across its business units -- from those I mentioned above in the diagnostics and devices units to top nutrition brand Ensure and commonly used drugs sold in international markets to round out the established pharmaceuticals offerings.This diversification means that when one of the businesses faces headwinds, the others may compensate. For example, earlier in the pandemic, coronavirus test sales soared while medical devices sales slipped -- that business suffered as hospitals postponed surgeries to accommodate COVID patients. And in more recent times, the medical devices business has recovered and grown -- and now it's compensating for declining coronavirus testing sales as demand weakens.The result is Abbott has generated triple-digit growth in net income over the past decade and double-digit growth in other important financial metrics over the same time period. This shows the company is growing its business, increasing profits, and benefiting from its investments.Story continuesABT Net Income (Annual) ChartABT Net Income (Annual) data by YChartsAs mentioned above, Abbott can rely on the strengths of its key products to drive some of these gains. In the most recent quarter, the FreeStyle Libre brought in sales of $1.4 billion, an increase of more than 23%. And these products helped Abbott to grow sales across its business units in the quarter, excluding the sales of coronavirus tests. For the full year, excluding COVID testing sales, Abbott reported double-digit sales growth to reach $40 billion.Abbott also offers a steady stream of new products, thanks to its growth in research and development spending over time. And the company's capital expenditures to boost future growth total $5 billion since 2021.More than 50 years of dividend growthOn top of this, Abbott has built quite a reputation as a dividend stock, becoming a Dividend King thanks to its more than 50 years of consecutive dividend increases. And over the past three years, the company has returned more than $17 billion to shareholders through dividends and share repurchases.This track record of dividend growth shows rewarding shareholders is important to the company, so it's likely to continue along this path. And as we can see in the chart below, Abbott's dividend payments could add significantly to your returns as a shareholder. Total returns include dividend payments.ABT ChartABT data by YChartsNow, let's get back to our question: Could Abbott help you become a millionaire? The key is the word "help." Alone, most stocks won't make you a millionaire unless you make an enormous investment in that particular stock -- and that's a risky bet, even if we're talking about a high-quality player. If you invest a smaller amount, say $5,000, in a stock, and it even doubles or triples, you're still far from millionaire status.But Abbott, as part of a diversified portfolio of quality stocks, could help you become a millionaire -- or at least add significantly to your wealth -- over the long term. By this, I mean constructing a portfolio of at least 20 stocks and holding on for a decade or longer. You don't have to build this portfolio overnight, but instead at the pace that suits your budget.And, through this strategy, Abbott -- as a company that's proven itself and also holds great prospects -- could help you reach your financial goals over the long haul.Should you invest $1,000 in Abbott Laboratories right now?Before you buy stock in Abbott Laboratories, 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 Abbott Laboratories 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, 2024Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool has a disclosure policy.Could Abbott Laboratories Stock Help You Become a Millionaire? was originally published by The Motley Fool

Motley Fool

Could Abbott Laboratories Stock Help You Become a Millionaire?

https://finance.yahoo.com/news/could-abbott-laboratories-stock-help-121000269.html

151125de-2123-3449-b0e3-23de6f66a38d

ABT

In the latest market close, Abbott (ABT) reached $120.19, with a -0.64% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.11% for the day. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.41%.Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had gained 8.18% over the past month. This has outpaced the Medical sector's gain of 3.03% and the S&P 500's gain of 2.7% in that time.The investment community will be closely monitoring the performance of Abbott in its forthcoming earnings report. In that report, analysts expect Abbott to post earnings of $0.96 per share. This would mark a year-over-year decline of 6.8%. Meanwhile, our latest consensus estimate is calling for revenue of $9.85 billion, up 1.02% from the prior-year quarter.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.62 per share and a revenue of $41.9 billion, indicating changes of +4.05% and +4.47%, respectively, from the former year.Any recent changes to analyst estimates for Abbott should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.12% increase. As of now, Abbott holds a Zacks Rank of #3 (Hold).Story continuesIn terms of valuation, Abbott is currently trading at a Forward P/E ratio of 26.2. This valuation marks a premium compared to its industry's average Forward P/E of 21.1.One should further note that ABT currently holds a PEG ratio of 2.91. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Medical - Products industry stood at 2.54 at the close of the market yesterday.The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 154, positioning it in the bottom 39% of all 250+ industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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 reportAbbott Laboratories (ABT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Abbott (ABT) Registers a Bigger Fall Than the Market: Important Facts to Note

https://finance.yahoo.com/news/abbott-abt-registers-bigger-fall-220021975.html

06fa9936-07fb-3b61-b7e2-20600e5f5225

ABT

(Adds settlement details, comments from New York attorney general, background)By Jonathan StempelNEW YORK, March 11 (Reuters) - Walgreens has settled charges by New York Attorney General Letitia James that it grossly inflated prices on at least 20 infant formula products after a recall by Abbott Labs led to a nationwide shortage in early 2022.The largest U.S. pharmacy chain did not admit or deny wrongdoing in entering an assurance of discontinuance with James' office, including a $50,000 payment covering civil penalties and costs, that was made public on Monday.James said Walgreens raised prices on the 20 products, including Abbott's Similac and Reckitt Benckiser's Enfamil, by 10% or more following the February 2022 recall, and in at least one case boosted formula prices by more than 70%.Walgreens allegedly sold more than 3,400 cans or bottles or formula at the "unconscionably" inflated prices.Without admitting or denying wrongdoing, Walgreens agreed not to charge excessive prices on consumer goods and services vital and necessary to people's health and safety.The Deerfield, Illinois-based company also agreed to donate 9,564 canisters of formula to benefit low-income New Yorkers with infant children.Walgreens declined to comment."During the formula shortage, families were panicked and struggling about how to feed their babies," James said in a statement. "For Walgreens to take advantage of this crisis and jack up formula prices is not only illegal, but downright shameful."My office will not tolerate any company that attempts to price gouge our state's consumers," she added.The settlement was effective as of March 7, and signed by a Walgreens representative on Monday.Abbott recalled its infant formula and closed its Sturgis, Michigan plant following reports that infants became sick after being fed formula that was produced there. The company reopened the plant that July. (Reporting by Jonathan Stempel in New York; Editing by Chris Reese and Stephen Coates)

Reuters

UPDATE 1-Walgreens settles New York charges it grossly inflated prices of infant formula

https://finance.yahoo.com/news/1-walgreens-settles-york-charges-230352389.html

d97c9e8c-df16-3a04-b060-ecdc37fd5cd1

ACGL

Have you been paying attention to shares of Skyward Specialty Insurance (SKWD)? Shares have been on the move with the stock up 13.2% over the past month. The stock hit a new 52-week high of $36.17 in the previous session. Skyward Specialty Insurance has gained 6.2% since the start of the year compared to the 3.1% move for the Zacks Finance sector and the 15.6% return for the Zacks Insurance - Property and Casualty industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 20, 2024, Skyward reported EPS of $0.61 versus consensus estimate of $0.56 while it beat the consensus revenue estimate by 0.66%.For the current fiscal year, Skyward is expected to post earnings of $2.58 per share on $1.06 billion in revenues. This represents a 22.27% change in EPS on a 19.23% change in revenues. For the next fiscal year, the company is expected to earn $2.81 per share on $1.17 billion in revenues. This represents a year-over-year change of 9.21% and 10.56%, respectively.Valuation MetricsSkyward may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Skyward has a Value Score of B. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.Story continuesIn terms of its value breakdown, the stock currently trades at 14X current fiscal year EPS estimates, which is a premium to the peer industry average of 13.4X. On a trailing cash flow basis, the stock currently trades at 21.6X versus its peer group's average of 15.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Skyward currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Skyward fits the bill. Thus, it seems as though Skyward shares could still be poised for more gains ahead.How Does SKWD Stack Up to the Competition?Shares of SKWD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Arch Capital Group Ltd. (ACGL). ACGL has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of A.Earnings were strong last quarter. Arch Capital Group Ltd. beat our consensus estimate by 28.35%, and for the current fiscal year, ACGL is expected to post earnings of $7.95 per share on revenue of $15.48 billion.Shares of Arch Capital Group Ltd. have gained 7.8% over the past month, and currently trade at a forward P/E of 10.8X and a P/CF of 9.6X.The Insurance - Property and Casualty industry is in the top 20% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SKWD and ACGL, even beyond their own solid fundamental situation.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 reportSkyward Specialty Insurance Group, Inc. (SKWD) : Free Stock Analysis ReportArch Capital Group Ltd. (ACGL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Skyward Specialty Insurance Group, Inc. (SKWD) Hit a 52 Week High, Can the Run Continue?

https://finance.yahoo.com/news/skyward-specialty-insurance-group-inc-141512519.html

4151c564-ee1e-3a0a-bc03-1b66136dcd71

ACGL

Arch Capital Group Ltd (NASDAQ:ACGL) showcases robust financial performance with $4.4 billion net income for 2023.ACGL's strategic business operations span across insurance, reinsurance, and mortgage sectors globally.Strong capital base with approximately $21.1 billion in capital as of December 31, 2023.Market volatility and competitive pressures present ongoing challenges for ACGL.Warning! GuruFocus has detected 7 Warning Sign with CTRA.On February 23, 2024, Arch Capital Group Ltd (NASDAQ:ACGL), a Bermuda-based company specializing in insurance and reinsurance, filed its 10-K with the SEC. The filing provides a comprehensive overview of the company's financial health and strategic positioning. As of December 31, 2023, ACGL reported a robust capital base of approximately $21.1 billion and a significant net income of $4.4 billion for the year. The company's book value per share increased to $46.94, up from $32.62 the previous year, indicating a strong financial performance and shareholder value creation. This financial overview sets the stage for a detailed SWOT analysis, providing investors with insights into ACGL's competitive advantages, potential risks, and strategic outlook.Decoding Arch Capital Group Ltd (ACGL): A Strategic SWOT InsightStrengthsFinancial Resilience and Profitability: ACGL's financial resilience is evident from its substantial net income of $4.4 billion in 2023 and a solid capital base of $21.1 billion. The company's profitability is underpinned by its diversified business model, which spans insurance, reinsurance, and mortgage sectors, allowing it to capitalize on various market opportunities and mitigate risks associated with any single line of business.Global Presence and Diversification: With operations in key markets such as Bermuda, the United States, Canada, Europe, Australia, and South Africa, ACGL benefits from geographic diversification. This global footprint not only spreads risk but also enables the company to tap into growth opportunities in different economies and regulatory environments.Story continuesWeaknessesMarket Sensitivity and Economic Conditions: ACGL's performance is subject to fluctuations in the financial markets and economic conditions, as indicated by the company's own assessment. Factors such as inflation, interest rates, and housing prices can impact the company's investment portfolio and underwriting profitability, potentially leading to volatility in financial results.Operational Risks and Cybersecurity: The company acknowledges the importance of maintaining robust operating procedures and cybersecurity measures. Any failure in these areas could result in operational disruptions, financial losses, and reputational damage, which could adversely affect ACGL's competitive position and financial performance.OpportunitiesStrategic Acquisitions and Market Expansion: ACGL has the opportunity to grow through strategic acquisitions and the integration of acquired businesses into its operations. This could enable the company to enter new markets, offer new products, and gain additional market share.Technological Advancements and Innovation: The company's investment in technology and innovation can lead to improved operational efficiencies, enhanced customer experiences, and the development of new insurance products. Embracing technological advancements can also strengthen ACGL's competitive edge in a rapidly evolving industry.ThreatsCompetitive Market Dynamics: The insurance and reinsurance industries are highly competitive, with pressure on pricing, capacity, and coverage terms. ACGL must continuously adapt to remain competitive against traditional insurers, new market entrants, and alternative capital providers.Regulatory and Climate Change Risks: Regulatory changes and the impact of climate change pose significant threats to ACGL's business. The company must navigate a complex regulatory landscape and manage the risks associated with climate-related events, which could lead to increased claims and financial exposure.In conclusion, Arch Capital Group Ltd (NASDAQ:ACGL) demonstrates a strong financial position with significant net income and a robust capital base. The company's diversified operations and global presence are key strengths that provide stability and growth potential. However, ACGL must navigate market sensitivities, operational risks, and intense competition. Strategic acquisitions and technological innovation present opportunities for expansion and differentiation. Nonetheless, regulatory challenges and climate change risks threaten to impact the company's performance. ACGL's ability to leverage its strengths and opportunities while effectively managing its weaknesses and threats will be crucial for its continued success in the competitive insurance and reinsurance markets.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 Arch Capital Group Ltd (ACGL): A Strategic SWOT Insight

https://finance.yahoo.com/news/decoding-arch-capital-group-ltd-050650859.html

c0f00fb4-fdfa-3d89-83e4-aeae6369c69e

ACGL

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.In contrast to all that, many investors prefer to focus on companies like Arch Capital Group (NASDAQ:ACGL), which has not only revenues, but also profits. Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. See our latest analysis for Arch Capital Group Arch Capital Group's Earnings Per Share Are GrowingGenerally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That means EPS growth is considered a real positive by most successful long-term investors. Arch Capital Group's shareholders have have plenty to be happy about as their annual EPS growth for the last 3 years was 52%. While that sort of growth rate isn't sustainable for long, it certainly catches the eye of prospective investors.It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. The good news is that Arch Capital Group is growing revenues, and EBIT margins improved by 10.5 percentage points to 26%, over the last year. Both of which are great metrics to check off for potential growth.You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.earnings-and-revenue-historyYou don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for Arch Capital Group's future profits.Story continuesAre Arch Capital Group Insiders Aligned With All Shareholders?We would not expect to see insiders owning a large percentage of a US$32b company like Arch Capital Group. But we do take comfort from the fact that they are investors in the company. Indeed, they have a considerable amount of wealth invested in it, currently valued at US$905m. Holders should find this level of insider commitment quite encouraging, since it would ensure that the leaders of the company would also experience their success, or failure, with the stock.Does Arch Capital Group Deserve A Spot On Your Watchlist?Arch Capital Group's earnings per share growth have been climbing higher at an appreciable rate. That sort of growth is nothing short of eye-catching, and the large investment held by insiders should certainly brighten the view of the company. At times fast EPS growth is a sign the business has reached an inflection point, so there's a potential opportunity to be had here. Based on the sum of its parts, we definitely think its worth watching Arch Capital Group very closely. It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Arch Capital Group , and understanding it should be part of your investment process.There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of companies which have demonstrated growth backed by recent insider purchases.Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.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.

Do Arch Capital Group's (NASDAQ:ACGL) Earnings Warrant Your Attention?

https://finance.yahoo.com/news/arch-capital-groups-nasdaq-acgl-110021932.html

fcf6746b-45ab-3156-8f1b-f94464e16cba

ACGL

Maamoun Rajeh, CHAIRMAN & CEO of Arch Re Group, a subsidiary of Arch Capital Group Ltd (NASDAQ:ACGL), has sold 50,000 shares of the company on March 5, 2024, according to a recent SEC filing. The transaction was executed at an average price of $87.48 per share, resulting in a total value of $4,374,000.Arch Capital Group Ltd, headquartered in Bermuda, is a global insurer and reinsurer providing a wide range of property, casualty, and mortgage insurance and reinsurance solutions. The company operates through various subsidiaries, with a focus on specialty lines of insurance and reinsurance.Warning! GuruFocus has detected 5 Warning Sign with ACGL.Over the past year, the insider has sold a total of 125,940 shares of Arch Capital Group Ltd and has not made any purchases of the stock. The recent sale by the insider is part of a series of transactions over the same period.The insider transaction history for Arch Capital Group Ltd shows a pattern of selling activity. There have been no insider buys and 11 insider sells over the past year.On the day of the insider's recent sale, shares of Arch Capital Group Ltd were trading at $87.48, giving the company a market capitalization of $32.81 billion. The stock's price-earnings ratio stands at 7.55, which is below the industry median of 12.71 and also below the company's historical median price-earnings ratio.According to the GuruFocus Value chart, with a current price of $87.48 and a GF Value of $77.39, Arch Capital Group Ltd has a price-to-GF-Value ratio of 1.13, indicating that the stock is modestly overvalued.The GF Value is determined by considering historical trading multiples, a GuruFocus adjustment factor based on the company's past returns and growth, and future business performance estimates provided by Morningstar analysts.Insider Sell: CHAIRMAN & CEO of Arch Re Group Sells 50,000 Shares of Arch Capital Group Ltd (ACGL)The insider's recent sale could be interpreted in various ways by investors, but it is important to consider the transaction within the broader context of the company's performance and valuation metrics.Story continuesInsider Sell: CHAIRMAN & CEO of Arch Re Group Sells 50,000 Shares of Arch Capital Group Ltd (ACGL)Investors and analysts often monitor insider transactions as they can provide insights into how the company's executives view the stock's valuation and future prospects. However, insider selling does not always indicate a lack of confidence in the company, as insiders may sell shares for personal financial planning or diversification reasons.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: CHAIRMAN & CEO of Arch Re Group Sells 50,000 Shares of Arch Capital Group Ltd ...

https://finance.yahoo.com/news/insider-sell-chairman-ceo-arch-062658296.html

796bb402-e982-34e6-8819-3a22c8e10bf9

ACN

IIM Ahmedabad’s campusIIM Ahmedabad registers 100% placement; 163 dream applications From Ahmedabad, India: During the placement process for the MBA Class of 2024 of the Post Graduate Program (PGP) in Management at the Indian Institute of Management (IIM) Ahmedabad that completed on February 12 Accenture and Boston Consulting Group made the most offers (including PPOs-pre placement offers) on the campus.Accenture made the most offers at the end of the final placement process with 26 offers, followed by Boston Consulting Group with 23 offers. Among the investment banks, Goldman Sachs was the largest recruiter, making 9 offers, closely followed by JP Morgan with 5 offers. In the general management domain, Adani made the highest number of offers – 10, closely followed by Essar Group, which rolled out 6 offers.This year the management consulting cohort witnessed a decrease in the number of offers by 15% vis-à-vis last year, while niche consulting witnessed a very significant increase. The roles offered by conglomerates also increased by 13%.Read moreAND DON’T MISS BIG SPLASH: IIM-AHMEDABAD LAUNCHES AN ONLINE MBAMain walkway at IIM BangaloreIIM-Bangalore summer placements: Nearly 600 students placed, including 12 students with disabilitiesFrom Bangalore, India: The Indian Institute of Management, Bangalore (IIM-B) has completed placements for summer internships of its largest ever Post Graduate Program in Management (PGP) and Post Graduate Program in Business Analytics (PGP-BA) batch of 602 eligible students.As per the official statement, the week dedicated to summer placements held during November 6 to 11 saw 484 students (437 PGP and 47 PGP-BA) being placed, while 115 students (89 PGP and 26 PGP-BA) were placed in a subsequent rolling placement process. The latter process included a targeted drive by Atypical Advantage to place 12 students with disabilities with leading corporates. Three PGP students sought and found summer internships on their own.Story continuesThis year, consulting firms made the largest number of offers (158), with Accenture Strategy making a record 45 offers, yet the ratio of students interning in consulting fell marginally this year as many sought after finance, banking and investment firms made more offers (130) this year. FMCG and retail firms that are aspirational for marketing roles made 69 offers. The 55 offers by manufacturing firms were in areas like supply chain and new product entry. The 45 offers by ecommerce and payments firms were in digital marketing and cards business. IT related firms made 43 offers in areas like IT consulting and product management. Business conglomerates made 41 offers primarily in their leadership tracks for general management roles.Read moreAND DON’T MISS RANKING: INDIA’S BEST B-SCHOOLSThe Indian Institute of Management CalcuttaIIM Calcutta’s flagship MBA program records 100% placement, consulting sector emerges as top recruiterFrom Calcutta, India: IIM Calcutta’s flagship MBA program concluded the final placements for the 59th batch recently and recorded another year with 100% placements. A statement issued by the institute on Monday said that about 464 students took part in the process, securing 529 offers from 194 companies despite the tough market conditions.“The consulting sector emerged as the top recruiter yet again with 167 students (31.6%) bagging offers. Accenture Strategy emerged as the top recruiter among the consulting sector which included firms like EY-Parthenon, Monitor Deloitte, KPMG, Pricewaterhouse Coopers, Vector Consulting and Arthur D. Little, McKinsey, BCG, Bain, Kearney, amongst others,” the institute said.IIM Calcutta continues to attract marquee finance firms and remains the finance campus of the country. About 114 students (21.5%) entered marquee finance firms from the private equity, venture capital, investment banking, markets, asset and wealth management domains, which saw participation from firms like Goldman Sachs, JP Morgan and Chase, Bank of America, Citibank, Barclays, HSBC and others.Read moreDON’T MISS MEET THE INDIAN INSTITUTE OF MANAGEMENT CALCUTTA’S MBAEx CLASS OF 2023The post In India, 100% Employment At 2 Of 3 IIM A-B-C’s appeared first on Poets&Quants.

Poets & Quants

In India, 100% Employment At 2 Of 3 IIM A-B-C’s

https://finance.yahoo.com/news/india-100-employment-2-3-182043893.html

a5767f1f-a971-3eab-9261-572bdcdf8a3e

ACN

Welcoming Accenture as the title sponsor, the premier conference will welcome over 1800 professional women of color for a weekend of inspiration, connection, and empowerment.NEW YORK, Feb. 26, 2024 /PRNewswire/ -- Today, BLACK ENTERPRISE, the premier Black-owned digital media brand dedicated to providing business, investment, and wealth-building resources for African Americans, announces the 18th annual Women of Power Summit, the leading professional development gathering that makes space for women executives of color to reflect, rise, and act. At the culmination of Women's History Month, the conference returns to the Bellagio Hotel & Casino in Las Vegas to celebrate the achievements of remarkable women and mark a significant milestone with Accenture (NYSE: ACN) as the event's new title sponsor.BLACK ENTERPRISE Logo. (PRNewsFoto/BLACK ENTERPRISE) (PRNewsfoto/BLACK ENTERPRISE)This year's Summit promises to be an unforgettable experience, featuring inspiring sessions, thought-provoking panel discussions, and unparalleled networking opportunities. The Summit is carefully curated to propel attendees toward intentional goal-setting and to ignite inspiration by showcasing remarkable leaders who have left an enduring mark on their respective fields.Esteemed business trailblazers such as Mellody Hobson, co-CEO of Ariel Investments; Judy Smith, Founder and President of Smith & Company; and Thasunda Duckett, CEO of TIAA, will be honored with the prestigious "Legacy Award," recognizing their embodiment of resilience, innovation, and leadership, truly capturing the essence and spirit of the Women of Power Summit. Symone Sanders Townsend, Author, Seasoned Democratic Strategist, and Co-Host of MSNBC's The Weekend; Dia Simms, Co-Founder, Pronghorn / Executive Chairwoman, Lobos 1707 Tequila & Mezcal; and Aisha Bowe, Founder & CEO of STEMBoard and LINGO, will also be honored during the third annual "Luminary Awards Luncheon" for their exceptional contributions and groundbreaking work in advancing diversity within their respective industries.Story continues"For almost two decades, the Women of Power Summit has represented a beacon of inspiration, resilience, and empowerment for women across the business industry," said Earl Butch Graves Jr., CEO of BLACK ENTERPRISE. "As we continue to evolve in our purpose and embark on this exciting journey with Accenture as our title sponsor, we envision a future where the Summit's legacy continues to shine brightly, breaking barriers and fostering a community where the remarkable achievements of women are celebrated, and the conference is elevated to new heights of significance."Accenture's commitment to a culture of equality and shared success aligns seamlessly with the values of the Women of Power Summit. As the new title sponsor, Accenture will host a series of sessions that will provide invaluable insights, strategies, and best practices, empowering summit attendees with the knowledge and tools to drive positive change in their respective fields and communities."At Accenture, we foster a culture and a workplace where all our people feel a sense of belonging, are respected, and are empowered to do their best work. We are committed to helping everyone thrive, which includes the advancement and representation of women. Collaboration with partners, like BLACK ENTERPRISE, facilitates meaningful and impactful connections for our executives," said Yolanda Friend, North America Inclusion & Diversity lead.The BLACK ENTERPRISE Women of Power Summit, hosted by Accenture, will be held at The Bellagio Hotel & Casino from Wednesday, March 27, through Saturday, March 30. Attendees can learn more about the Summit, receive programming updates, see a complete list of summit speakers, purchase tickets for the event, and livestream select programming at https://www.blackenterprise.com/event/women-of-power-2024/.About BLACK ENTERPRISEFounded in 1970, BLACK ENTERPRISE is a mission-centric media company focused on providing relevant information for success-minded people at every stage of their financial journey. Designed to highlight Black leadership and entrepreneurial journeys, BLACK ENTERPRISE reaches its audience through its events and linear and digital channels. BLACK ENTERPRISE aims to be a fountain of knowledge on the how to achieve financial success. To learn more about the company, please visit blackenterprise.com and follow them on social media across Instagram, X (Twitter), and Facebook.CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/black-enterprise-returns-to-las-vegas-to-honor-extraordinary-business-trailblazers-at-the-2024-women-of-power-summit-302071214.htmlSOURCE BLACK ENTERPRISE

PR Newswire

BLACK ENTERPRISE Returns to Las Vegas To Honor Extraordinary Business Trailblazers at the 2024 Women of Power Summit

https://finance.yahoo.com/news/black-enterprise-returns-las-vegas-151500473.html

83a787dd-9395-31e0-bf7d-55fe235c4404

ACN

Investors interested in Consulting Services stocks are likely familiar with Hackett Group (HCKT) and Accenture (ACN). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.Right now, Hackett Group is sporting a Zacks Rank of #2 (Buy), while Accenture has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HCKT likely has seen a stronger improvement to its earnings outlook than ACN has recently. However, value investors will care about much more than just this.Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.HCKT currently has a forward P/E ratio of 14.53, while ACN has a forward P/E of 30.96. We also note that HCKT has a PEG ratio of 1.08. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ACN currently has a PEG ratio of 3.48.Another notable valuation metric for HCKT is its P/B ratio of 7.47. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ACN has a P/B of 8.63.These are just a few of the metrics contributing to HCKT's Value grade of B and ACN's Value grade of C.Story continuesHCKT sticks out from ACN in both our Zacks Rank and Style Scores models, so value investors will likely feel that HCKT is the better option right now.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportThe Hackett Group, Inc. (HCKT) : Free Stock Analysis ReportAccenture PLC (ACN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

HCKT vs. ACN: Which Stock Is the Better Value Option?

https://finance.yahoo.com/news/hckt-vs-acn-stock-better-154010018.html

20554106-352e-3356-88b9-c40c3f02503a

ACN

In the latest market close, Accenture (ACN) reached $373.22, with a -1.31% movement compared to the previous day. This change lagged 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%.The consulting company's shares have seen an increase of 1.75% over the last month, not keeping up with the Business Services sector's gain of 5.27% and the S&P 500's gain of 2.7%.Analysts and investors alike will be keeping a close eye on the performance of Accenture in its upcoming earnings disclosure. The company's earnings report is set to go public on March 21, 2024. In that report, analysts expect Accenture to post earnings of $2.65 per share. This would mark a year-over-year decline of 1.49%. Simultaneously, our latest consensus estimate expects the revenue to be $15.84 billion, showing a 0.15% escalation compared to the year-ago quarter.Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.22 per share and revenue of $66.22 billion. These totals would mark changes of +4.71% and +3.29%, respectively, from last year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Accenture. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Accenture is holding a Zacks Rank of #3 (Hold) right now.Story continuesInvestors should also note Accenture's current valuation metrics, including its Forward P/E ratio of 30.96. This indicates a premium in contrast to its industry's Forward P/E of 24.27.It's also important to note that ACN currently trades at a PEG ratio of 3.48. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Consulting Services industry was having an average PEG ratio of 1.39.The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAccenture PLC (ACN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Accenture (ACN) Sees a More Significant Dip Than Broader Market: Some Facts to Know

https://finance.yahoo.com/news/accenture-acn-sees-more-significant-221521318.html

c547bfad-379c-31bb-829e-1791f8ab62f8

ADBE

Nvidia (NASDAQ: NVDA) blew nearly everyone away with its fourth-quarter results last week. The stock continued a surge that began in late 2022.Many analysts, though, are skeptical about just how much higher Nvidia can go. The average analysts' 12-month price target for the stock is 7% below the current share price. However, Wall Street thinks that three other artificial intelligence (AI) stocks still have plenty of room to run.1. AdobeAdobe (NASDAQ: ADBE) hasn't delivered nearly the level of gains that Nvidia has. However, shares of the software company are still up more than 50% over the last 12 months. The consensus on Wall Street is that Adobe could perform very well going forward.The average price target for Adobe reflects an upside potential of more than 21%. The most optimistic analyst thinks the stock could soar as much as 40% higher. Of the 31 analysts surveyed by LSEG in February, 25 rate Adobe as a buy or strong buy. By comparison, only 21 of the 38 analysts covering Nvidia rated it as a buy or strong buy.You might not think of Adobe as an AI stock. However, the company has integrated generative AI into many of its products. Nvidia CFO Colette Kress specifically mentioned Adobe during her company's recent quarterly conference call as one of the "leading AI and enterprise software platforms" that Nvidia is working with.Adobe is on a roll, generating record revenue in its fiscal 2023 fourth quarter. The company's Creative Cloud, Document Cloud, and Experience Cloud products continue to enjoy strong momentum.2. AmazonLike Nvidia, Amazon (NASDAQ: AMZN) is a member of the "Magnificent Seven" stocks that dominated the stock market last year. Over the last 12 months, shares of the e-commerce and cloud services giant have soared close to 85%.Amazon's amazing run isn't over quite yet, according to some analysts. The consensus 12-month price target for the stock is more than 17% above Amazon's current share price. And there are a lot of Amazon bulls on Wall Street. Forty-three of the 47 analysts surveyed by LSEG in February rate the stock as a buy or strong buy.Story continuesAI is extremely important to Amazon's growth prospects. It's providing a major tailwind to the company's AWS cloud platform. AWS, like the other major cloud providers, uses Nvidia's chips. However, Amazon has also developed its own AI chips.The transition of customers' IT spending from on-premises to the cloud, driven largely by AI, should enable Amazon to grow robustly over the next decade and beyond. The company's advertising business is another key growth driver that just might help Amazon achieve Wall Street's price target.3. OracleOracle (NYSE: ORCL) hasn't received as much attention from investors as some AI stocks have. While shares of the database and software giant have jumped nearly 30% over the last 12 months, that performance pales in comparison with the returns delivered by Nvidia and others.Wall Street thinks that Oracle can extend its gains, though. The average price target for the stock reflects an upside potential of around 14%. Of the 36 analysts surveyed by LSEG in February, 26 rate Oracle as a buy or strong buy.Oracle Cloud is another major customer of Nvidia's DGX Cloud. Chairman, co-founder, and Chief Technology Officer Larry Ellison noted in the company's December conference call that Oracle's cloud infrastructure services growth is being driven in part by generative AI customers. He added that countries building sovereign clouds (where all data is stored within a nation's borders) are also fueling growth.Unlike many other AI stocks, Oracle remains attractively valued. Its shares trade at only 17.3 times expected earnings. This relatively low price could help make Oracle more appealing to investors wanting to profit from AI without paying a steep premium.Where to invest $1,000 right nowWhen our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*They just revealed what they believe are the 10 best stocks for investors to buy right now…See the 10 stocks*Stock Advisor returns as of February 20, 2024John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Amazon. The Motley Fool has positions in and recommends Adobe, Amazon, Nvidia, and Oracle. The Motley Fool has a disclosure policy.Wall Street Thinks These 3 Top Artificial Intelligence (AI) Stocks Still Have Plenty of Room to Run -- but Nvidia Isn't One of Them was originally published by The Motley Fool

Motley Fool

Wall Street Thinks These 3 Top Artificial Intelligence (AI) Stocks Still Have Plenty of Room to Run -- but Nvidia Isn't One of Them

https://finance.yahoo.com/news/wall-street-thinks-3-top-104900615.html

28b3d110-c131-3ebb-bbba-cd569f0300c9

ADBE

In the latest trading session, Adobe Systems (ADBE) closed at $560.48, marking a +1.27% move from the previous day. This move outpaced the S&P 500's daily loss of 0.38%. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.13%.Shares of the software maker witnessed a loss of 9.85% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 3.93% and the S&P 500's gain of 4.74%.The investment community will be closely monitoring the performance of Adobe Systems in its forthcoming earnings report. The company is scheduled to release its earnings on March 14, 2024. The company's upcoming EPS is projected at $4.38, signifying a 15.26% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $5.13 billion, indicating a 10.19% growth compared to the corresponding quarter of the prior year.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $17.89 per share and a revenue of $21.41 billion, indicating changes of +11.33% and +10.33%, respectively, from the former year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Adobe Systems. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Adobe Systems is currently sporting a Zacks Rank of #4 (Sell).Story continuesInvestors should also note Adobe Systems's current valuation metrics, including its Forward P/E ratio of 30.94. For comparison, its industry has an average Forward P/E of 31.54, which means Adobe Systems is trading at a discount to the group.It's also important to note that ADBE currently trades at a PEG ratio of 2.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ADBE's industry had an average PEG ratio of 2.38 as of yesterday's close.The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% 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.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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 reportAdobe Inc. (ADBE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Adobe Systems (ADBE) Advances While Market Declines: Some Information for Investors

https://finance.yahoo.com/news/adobe-systems-adbe-advances-while-224513615.html

6909050b-c8ca-39a9-bad9-d2435ee9a046

ADBE

For Immediate ReleaseChicago, IL – March 11, 2024 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Costco COST, AutoZone AZO, Oracle ORCL and Adobe ADBE.Previewing 2024 Q1 Earnings SeasonThe recent Costco and AutoZone quarterly releases kick-started the 2024 Q1 earnings season. We have another four S&P 500 members on deck to report Q1 results this week, including Oracle on Monday, March 11th, and Adobe on Thursday, March 14th.The earnings reports from Costco and AutoZone and this week's reports from Oracle and Adobe are for their respective fiscal quarters ending in February, which we and other research organizations count as part of the overall March-quarter or Q1 tally. In fact, by the time the big banks come out with their quarterly results on April 12th, we will have Q1 results from almost two dozen S&P 500 members.Regular readers of our earnings commentary are familiar with our sanguine view of corporate profitability. We aren't saying that the earnings picture is great, but we don't agree with the doom-and-gloom projections either.Earnings growth remained under pressure in 2022 and through the first half of 2023 as a host of macro factors weighed on corporate profits. These factors included the post-COVID onset of inflationary pressures that compressed margins while the Fed's extraordinary tightening moderated top-line growth.A loud segment of the commentariat saw these unfavorable trends culminating in a recession for the economy and a material hit to the overall earnings picture. However, the U.S. economy has proved resilient even as the Fed's extraordinary tightening has put us on track for a happy resolution to the inflation issue.With the Fed now gearing up to start easing policy in the coming months, those extreme risks to the economy and corporate earnings have eased significantly. This is the macro backdrop in which we will receive the Q1 earnings results in the coming days.Story continuesThe expectation is that Q1 earnings will be up +2.4% from the same period last year on +3.5% higher revenues, following the +6.1% earnings growth on +2.6% revenue gains in the preceding period.Please note that while the revisions trend has been negative, the magnitude of cuts to Q1 estimates compares favorably to what we had seen in the comparable period for the preceding quarter (2023 Q4).Since the start of Q1, estimates have come down for 10 of the 16 Zacks sectors, with the biggest cuts to estimates for the Energy, Autos, Basic Materials, and Transportation sectors. Estimates have modestly increased over this period for 6 of the 16 Zacks sectors, with the Retail, Consumer Discretionary, and Tech sectors enjoying notable positive revisions.Q1 earnings estimates for Oracle and Adobe that are reporting this week have largely remained unchanged since the quarter got underway.Embedded in current Q1 earnings and revenue estimates is a modest year-over-year decline in net margins. The extreme margin pressure we witnessed in 2022 and the first half of 2023 is now behind us.For 2024 Q1, net margins are expected to be below the year-earlier level for 9 of the 16 Zacks sectors, with the biggest declines in the Energy, Basic Materials, Autos, and Medical sectors. Net margins are expected to be above the year-earlier level for 5 of the 16 Zacks sectors, with the biggest gains at the Tech and Utilities sectors.The Tech sector is now firmly back in the growth mode, and the trend is expected to continue going forward. For 2024 Q1, Tech sector earnings are expected to increase +18.9% from the same period last year on +7.9% higher revenues. This would follow the sector's +27.4% higher earnings in 2023 Q4 on +8.5% higher revenues.The sector experienced a period of post-COVID adjustment in 2022 and the first half of 2023, during which time it became a drag on the aggregate growth picture.Please keep in mind that Tech isn't just any other sector; it is the biggest earnings contributor to the S&P 500 index. The sector is currently expected to bring in 28.6% of the index's total earnings over the coming four-quarter period, with the second and third biggest contributors being Finance and Medical, at 17.8% and 12.5%, respectively.This means that the Tech sector's growth profile has a very big impact on the aggregate picture, both negatively and positively.The Tech sector dragged down the aggregate growth picture in 2022 and the first half of 2023 but now appears ready to resume its historically positive growth role.Please note that the Tech sector is instrumental in keeping the aggregate growth picture in positive territory in Q1. Excluding the sector's substantial contribution, Q1 earnings for the rest of the index would be down -3% from the same period last year (vs. +2.4% as a whole).Looking at the overall earnings picture on an annual basis, total 2024 S&P 500 earnings are expected to be up +9.5% on +4.7% revenue growth.For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>Looking Ahead to Q1 Earnings: What's Next? Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comZacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportOracle Corporation (ORCL) : Free Stock Analysis ReportCostco Wholesale Corporation (COST) : Free Stock Analysis ReportAdobe Inc. (ADBE) : Free Stock Analysis ReportAutoZone, Inc. (AZO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Costco, AutoZone, Oracle and Adobe are part of Zacks Earnings Preview

https://finance.yahoo.com/news/costco-autozone-oracle-adobe-part-131600415.html

a5e31f17-9eb2-3081-9b02-b42e5aee9247

ADBE

Adobe Inc. ADBE is set to report first-quarter fiscal 2024 results on Mar 14.For the fiscal first quarter, the company expects non-GAAP earnings of $5.10-$5.15 per share. The Zacks Consensus Estimate for earnings is pegged at $5.13 per share, indicating growth of 10.3% from the year-ago reported figure.Adobe projects total revenues between $4.35 billion and $4.40 billion. The consensus mark for the same is pegged at $4.38 billion, implying growth of 15.3% from the year-ago reported figure.The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average earnings surprise being 3.42%.Adobe Inc. Price and EPS Surprise Adobe Inc. Price and EPS SurpriseAdobe Inc. price-eps-surprise | Adobe Inc. QuoteFactors to ConsiderSolid momentum across the Digital Media and Digital Experience segments is likely to have driven top-line growth for the company in the to-be-reported quarter.Robust Creative Cloud and Document Cloud are expected to have contributed well to the performance of the Digital Media segment in the fiscal first quarter. Adobe expects Digital Media revenues between $3.77 and $3.80 billion. The Zacks Consensus Estimate for the same is pegged at $3.78 billion, indicating year-over-year growth of 11.5%.Growing momentum across the Adobe Express platform and benefits from the Frame.io acquisition are expected to have accelerated growth in Creative revenues in the quarter under review. Also, Adobe’s solid momentum in generative AI on the back of Firefly is likely to have been a major positive.Strength across the Document Cloud enterprise business and Acrobat ecosystem is anticipated to have contributed well to Document Cloud revenues. The growing demand for PDF collaboration services is expected to have been a tailwind.Growing Adobe Experience Cloud subscriptions on the heels of the rising adoption of Adobe Marketing Cloud, Adobe Analytics Cloud and Adobe Advertising Cloud is likely to have benefited Adobe’s Digital Experience segment in the quarter under review.Strong demand for AEP and native apps and solid momentum across Data & Insights, Content and Workfront solutions are anticipated to have benefited the segment’s quarterly performance.The company expects Digital Experience revenues between $1.27 and $1.29 billion. The Zacks Consensus Estimate for the same is pegged at $1.27 billion, indicating year-over-year growth of 8.2%.However, the impacts of ongoing tensions between Russia and Ukraine are likely to have continued acting as headwinds in the quarter to be reported.Story continuesWhat Our Model SaysOur proven model does not conclusively predict an earnings beat for Adobe this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.Adobe has an Earnings ESP of -0.19%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.ADBE currently has a Zacks Rank #2.Stocks to ConsiderHere are some stocks worth considering that, per our model, have the right combination of elements to beat on earnings this reporting cycle.Rekor Systems REKR has an Earnings ESP of +5.72% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Rekor System’s shares have declined 33% year to date. REKR is set to report its fourth-quarter 2023 results on Mar 25.ADC Therapeutics ADCT has an Earnings ESP of +57.5% and a Zacks Rank of 3 at present.ADC Therapeutics shares have gained 171.1% year to date. ADCT is set to report its fourth-quarter 2023 results on Mar 13.Alpine Immune Sciences ALPN has an Earnings ESP of +8.57% and a Zacks Rank #3.Alpine Immune Sciences shares have returned 88.5% year to date. ALPN is set to release its fourth-quarter fiscal 2023 results on Mar 18.Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAdobe Inc. (ADBE) : Free Stock Analysis ReportADC Therapeutics SA (ADCT) : Free Stock Analysis ReportAlpine Immune Sciences, Inc. (ALPN) : Free Stock Analysis ReportRekor Systems, Inc. (REKR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Adobe (ADBE) to Report Q1 Earnings: What's in the Offing?

https://finance.yahoo.com/news/adobe-adbe-report-q1-earnings-163400259.html

ffcc1a13-2f0c-3e0c-b68d-726f516e0c27

ADI

The U.S. stock market has been fluctuating since the beginning of the year after a sharp rally in 2023. The euphoria surrounding technology stocks evaporated as the yield on the benchmark 10-Year U.S. Treasury Note returned northward, trading well above 4%.This was primarily owing to the uncertainty regarding the timing of the Fed’s first cut in the benchmark interest rate. Recently, several key Fed FOMC members said that although they believe that the rate hike regime is over, they are yet to be convinced that the economic condition is conducive enough for an immediate rate cut.At present, the CME FedWatch tool shows a mere 8.5% probability that the central bank will initiate a 25-basis-point rate cut in its March FOMC meeting. The probability of the first rate cut was more than 90% at the beginning of 2024. Moreover, 63.3% of market respondents currently expect the central bank to maintain the status quo of the benchmark lending rate at 5.25-5.5% even in the May FOMC meeting.We should remain watchful since any external disturbances like geopolitical conflict or oil price fluctuation may create volatility in markets. We are not out of the woods yet as inflation is still highly elevated.Stocks to WatchAt this stage, dividend-paying stocks are in demand as investors try to safeguard their portfolios. We believe one should consider stocks that have recently raised their dividend payments. Five such companies are — Ardmore Shipping Corp. ASC, Murphy USA Inc. MUSA, Harley-Davidson Inc. HOG, HealthStream Inc. HSTM and Analog Devices Inc. ADI.Ardmore Shipping is engaged in the ownership and operation of product and chemical tankers. ASC provides shipping services to customers through voyage charters, commercial pools, and time charters.ASC provides seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies. ASC currently carries a Zacks Rank #3 (Hold).Story continuesOn Feb 15, 2024, Ardmore Shipping declared that its shareholders would receive a dividend of $0.21 per share on Mar 15, 2024. It has a dividend yield of 5.2%. Over the past five years, ASC has increased its dividend three times, and its payout ratio presently stays at 23% of earnings. Check ASC’s dividend history here.Ardmore Shipping Corporation Dividend Yield (TTM)Ardmore Shipping Corporation Dividend Yield (TTM)Ardmore Shipping Corporation dividend-yield-ttm | Ardmore Shipping Corporation QuoteMurphy USA is a low-cost, high-volume fuel seller, whose stations are located near Walmart supercenters. This enables MUSA to attract significantly more transactions than its peers. MUSA’s access to pipelines and product distribution terminals is another key competitive advantage in the fiercely competitive retail environment.The QuickChek acquisition has helped MUSA in improving its offerings. MUSA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.On Feb 15, 2024, Murphy USA declared that its shareholders would receive a dividend of $0.42 per share on Mar 7, 2024. It has a dividend yield of 0.4%. Over the past five years, MUSA has increased its dividend nine times, and its payout ratio presently stays at 6% of earnings. Check MUSA’s dividend history here.Murphy USA Inc. Dividend Yield (TTM)Murphy USA Inc. Dividend Yield (TTM)Murphy USA Inc. dividend-yield-ttm | Murphy USA Inc. QuoteHarley-Davidson is focusing on motorcycle models and technologies that better align with market trends. This strategy is in sync with long-term growth objectives to optimize HOG’s product portfolio and expand its customer base.HOG’s Hardwire plans are intended to improve effectiveness and contribute to revenue growth. HOG remains focused on bolstering its market position by putting more emphasis on sportier bikes and a modern marketing strategy. HOG currently carries a Zacks Rank #3.On Feb 16, 2024, Harley-Davidson declared that its shareholders would receive a dividend of $0.1725 per share on Mar 20, 2024. It has a dividend yield of 1.8%. Over the past five years, HOG has increased its dividend six times, and its payout ratio presently stays at 14% of earnings. Check HOG’s dividend history here.Harley-Davidson, Inc. Dividend Yield (TTM)Harley-Davidson, Inc. Dividend Yield (TTM)Harley-Davidson, Inc. dividend-yield-ttm | Harley-Davidson, Inc. QuoteHealthStream provides Software-as-a-Service (SaaS) based applications for healthcare organizations in the United States. HSTM’s solutions help healthcare organizations meet their ongoing clinical development, talent management, training, education, assessment, competency management, safety and compliance, and scheduling, as well as provider credentialing, privileging, and enrollment needs.HSTM offers hStream, a technology platform that powers a range of healthcare workforce solutions. HSTM provides its solutions to customers across a range of entities within the healthcare industry, including private, not-for-profit, and government entities, as well as pharmaceutical and medical device companies through its direct sales teams. HSTM currently carries a Zacks Rank #2 (Buy).On Feb 19, 2024, HealthStream declared that its shareholders would receive a dividend of $0.028 per share on Mar 22, 2024. It has a dividend yield of 0.4%. Over the past five years, HSTM has increased its dividend two times, and its payout ratio presently stays at 22% of earnings. Check HSTM’s dividend history here.HealthStream, Inc. Dividend Yield (TTM)HealthStream, Inc. Dividend Yield (TTM)HealthStream, Inc. dividend-yield-ttm | HealthStream, Inc. QuoteAnalog Devices has benefited from strength in the automotive market. Strong momentum across the electric vehicle space on the back of its robust Battery Management System solutions remains a tailwind for ADI.Massive investments in technology and business innovation are contributing well. Increasing power design wins is another positive for ADI. The solid momentum of ADI’s HEV platform across the cabin electronics ecosystem is a positive too. ADI currently carries a Zacks Rank #3.On Feb 20, 2024, Analog Devices declared that its shareholders would receive a dividend of $0.92 per share on Mar 15, 2024. It has a dividend yield of 1.9%. Over the past five years, ADI has increased its dividend six times, and its payout ratio presently stays at 34% of earnings. Check ADI’s dividend history here.Analog Devices, Inc. Dividend Yield (TTM)Analog Devices, Inc. Dividend Yield (TTM)Analog Devices, Inc. dividend-yield-ttm | Analog Devices, Inc. QuoteWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAnalog Devices, Inc. (ADI) : Free Stock Analysis ReportHarley-Davidson, Inc. (HOG) : Free Stock Analysis ReportMurphy USA Inc. (MUSA) : Free Stock Analysis ReportHealthStream, Inc. (HSTM) : Free Stock Analysis ReportArdmore Shipping Corporation (ASC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

5 Stocks With Recent Dividend Hike to Watch Amid Volatility

https://finance.yahoo.com/news/5-stocks-recent-dividend-hike-133500248.html

e672e22d-674b-3c8e-ac7f-a24ed71210db

ADI

Analog Devices, Inc.'s (NASDAQ:ADI) dividend will be increasing from last year's payment of the same period to $0.92 on 15th of March. This will take the annual payment to 1.9% of the stock price, which is above what most companies in the industry pay. View our latest analysis for Analog Devices Analog Devices' Payment Has Solid Earnings CoverageIf the payments aren't sustainable, a high yield for a few years won't matter that much. The last dividend was quite easily covered by Analog Devices' earnings. This means that a large portion of its earnings are being retained to grow the business.Looking forward, earnings per share is forecast to rise by 26.8% over the next year. If the dividend continues on this path, the payout ratio could be 53% by next year, which we think can be pretty sustainable going forward.historic-dividendAnalog Devices Has A Solid Track RecordEven over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2014, the dividend has gone from $1.36 total annually to $3.68. This works out to be a compound annual growth rate (CAGR) of approximately 10% a year over that time. Rapidly growing dividends for a long time is a very valuable feature for an income stock.We Could See Analog Devices' Dividend GrowingSome investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Analog Devices has seen EPS rising for the last five years, at 6.1% per annum. The company is paying a reasonable amount of earnings to shareholders, and is growing earnings at a decent rate so we think it could be a decent dividend stock.Analog Devices Looks Like A Great Dividend StockOverall, a dividend increase is always good, and we think that Analog Devices is a strong income stock thanks to its track record and growing earnings. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've picked out 1 warning sign for Analog Devices that investors should know about before committing capital to this stock. If you are a dividend investor, you might also want to look at our curated list of high yield 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.

Analog Devices' (NASDAQ:ADI) Upcoming Dividend Will Be Larger Than Last Year's

https://finance.yahoo.com/news/analog-devices-nasdaq-adi-upcoming-123446471.html

828677d9-6cdd-3b0e-a675-e5f5f5f79074

ADI

Analog Devices, Inc. (NASDAQ:ADI) saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$201 and falling to the lows of US$181. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Analog Devices' current trading price of US$196 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Analog Devices’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Analog Devices Is Analog Devices Still Cheap?The stock seems fairly valued at the moment according to our valuation model. It’s trading around 2.7% below our intrinsic value, which means if you buy Analog Devices today, you’d be paying a fair price for it. And if you believe that the stock is really worth $201.37, 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 Analog Devices’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 Analog Devices generate?earnings-and-revenue-growthInvestors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Analog Devices' earnings over the next few years are expected to increase by 23%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.Story continuesWhat This Means For YouAre you a shareholder? ADI’s optimistic future growth appears to have been factored into the current share price, 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 confidence to invest in the company should the price drop below its fair value?Are you a potential investor? If you’ve been keeping an eye on ADI, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook 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.Diving deeper into the forecasts for Analog Devices mentioned earlier will help you understand how analysts view the stock going forward. At Simply Wall St, we have the analysts estimates which you can view by clicking here.If you are no longer interested in Analog Devices, 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.

What Is Analog Devices, Inc.'s (NASDAQ:ADI) Share Price Doing?

https://finance.yahoo.com/news/analog-devices-inc-nasdaq-adi-110022950.html

a5916351-eb94-366d-ad1f-dd473cafbcba

ADI

In this article, we discuss 15 best NASDAQ dividend stocks to buy. You can skip our detailed analysis of NASDAQ stocks and the performance of dividend stocks over the years, and go directly to read 5 Best NASDAQ Dividend Stocks To Buy. The NASDAQ, which primarily consists of technology-related stocks, has been experiencing upward momentum since the previous year. In 2023, it saw remarkable growth, achieving its strongest performance since 2020 with an increase of over 43%. As of March 7, it has gained 10.21%, surpassing the broader market's gain of 8.72% this year so far. Notably, according to Jonathan Krinsky, a leading market analyst at BTIG, the NASDAQ-100, which is heavily concentrated in tech, has endured 303 consecutive trading sessions without experiencing a decline of 2.5% or more as of March 5, marking it as the third-longest period without such a significant pullback since 1990. Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL) are some of the best dividend stocks listed on the index.The impressive performance of NASDAQ can be largely attributed to the excitement surrounding artificial intelligence, which has driven up the prices of major technology stocks and boosted the overall market throughout 2023 and into the current year. Additionally, the easing of inflation and the Federal Reserve's indication of potential rate cuts later in 2024 have further supported NASDAQ's rebound from the challenges it faced in 2022. Despite the prevalence of technology companies in the NASDAQ index, many companies offer dividends to shareholders. A notable recent addition to the list of dividend-paying companies in the index is Meta Platforms, Inc. (NASDAQ:META), which made headlines in February of this year by declaring its inaugural dividend. This move marks a significant milestone for the technology sector, which has long been dominated by a select few companies for more than a decade.Story continuesMeta's decision to offer a dividend serves as evidence that investors are increasingly interested in dividend-paying stocks for their capacity to provide consistent and reliable income. This trend was evident in 2023 when companies in the US distributed record dividends to their shareholders. According to a report by Janus Henderson, the S&P 500 paid out an all-time high of $70.30 per share last year, a notable increase from $66.92 in 2022. This resulted in a total payment to shareholders reaching a record $588.2 billion, surpassing the previous year's figure of $564.6 billion. The report also mentioned that there were 707 instances of dividend increases reported in the fourth quarter of 2023. These increases amounted to a total of $17.5 billion for the quarter, showing an uptick from the $16.3 billion recorded in the fourth quarter of 2022.Furthermore, dividend-paying stocks have historically delivered robust returns. Since 1960, dividends have contributed to approximately one-third of the market's total return. Dividend stocks offer a degree of stability during periods of increased market volatility. According to a report by Perkins Coie, a Washington-based law firm, dividend-paying stocks exhibit 30%-33% lower volatility compared to non-dividend-paying stocks. This stability has been particularly notable during turbulent decades like the 1930s and 2000s, where dividend-paying stocks served as a buffer against significant declines in market prices. In addition to this, dividend-paying companies that consistently increase their dividends can provide better protection against inflation than bonds in an inflationary environment.In view of this, we will take a look at some of the best dividend stocks listed on NASDAQ.15 Best NASDAQ Dividend Stocks To BuyPhoto by nick chong on UnsplashOur Methodology:For this list, we scanned Insider Monkey’s database of 933 hedge funds as of the fourth quarter of 2023 and selected companies that are trading on the NASDAQ exchange and also pay dividends to shareholders. From that list, we picked 15 stocks with the highest number of hedge fund investors and ranked in ascending order of hedge funds’ sentiment toward them. 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).15. Automatic Data Processing, Inc. (NASDAQ:ADP)Number of Hedge Fund Holders: 54Automatic Data Processing, Inc. (NASDAQ:ADP) is an American company that specializes in human capital management solutions, offering a wide range of services and software to help businesses manage their workforce efficiently. On January 10, the company declared a quarterly dividend of $1.40 per share, which was in line with its previous dividend. In 2023, the company achieved its 49th consecutive annual dividend growth, making ADP one of the best dividend stocks listed on NASDAQ. The stock offers a dividend yield of 2.31%, as of March 10.The number of hedge funds tracked by Insider Monkey owning stakes in Automatic Data Processing, Inc. (NASDAQ:ADP) grew to 54 in Q4 2023, from 50 in the previous quarter. The collective value of these stakes is over $3.13 billion.14. Gilead Sciences, Inc. (NASDAQ:GILD)Number of Hedge Fund Holders: 55Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company that focuses on the development, manufacturing, and commercialization of innovative medicines, especially in areas of unmet medical need. The company was included in 55 hedge fund portfolios at the end of Q4 2023, which remained unchanged from the previous quarter, according to Insider Monkey's database. The stakes held by these hedge funds have a consolidated value of nearly $2.3 billion.Gilead Sciences, Inc. (NASDAQ:GILD), one of the best dividend stocks on our list, announced a 2.7% hike in its quarterly dividend at $0.77 per share on February 6. This was the company's ninth consecutive year of dividend growth. As of March 10, the stock has a dividend yield of 4.10%.13. Costco Wholesale Corporation (NASDAQ:COST)Number of Hedge Fund Holders: 57Costco Wholesale Corporation (NASDAQ:COST) is next on our list of the best dividend stocks listed on NASDAQ. The multinational retail corporation holds a 19-year track record of consistent dividend growth and offers a quarterly dividend of $1.02 per share. The stock's dividend yield on March 10 came in at 0.56%.At the end of Q4 2023, 57 hedge funds in Insider Monkey's database reported owning stakes in Costco Wholesale Corporation (NASDAQ:COST), compared with 65 a quarter earlier. These stakes have a collective value of more than $4 billion. With roughly 3 million shares, Fisher Asset Management was the company's leading stakeholder in Q4.12. Starbucks Corporation (NASDAQ:SBUX)Number of Hedge Fund Holders: 59Starbucks Corporation (NASDAQ:SBUX) is a multinational chain of coffeehouses and roastery reserves. The company's current quarterly dividend comes in at $0.57 per share for a dividend yield of 2.50%, as recorded on March 10. With a dividend growth streak spanning over 13 years, SBUX is one of the best dividend stocks listed on NASDAQ.According to Insider Monkey's database of Q4 2023, 59 hedge funds invested in Starbucks Corporation (NASDAQ:SBUX), down slightly from 60 in the previous quarter. These stakes are worth over $3.6 billion in total.11. Cisco Systems, Inc. (NASDAQ:CSCO)Number of Hedge Fund Holders: 60Cisco Systems, Inc. (NASDAQ:CSCO) is a California-based tech company that primarily operates in the networking and communications technology sector. On February 1, the company declared a 2.6% increase in its quarterly dividend to $0.40 per share. Through this hike, the company stretched its dividend growth streak to 17 years, which makes CSCO one of the best dividend stocks on our list. The stock has a dividend yield of 3.23%, as of March 10.As of the end of Q4 2023, 60 hedge funds in our database held stakes in Cisco Systems, Inc. (NASDAQ:CSCO), compared with 64 in the previous quarter. The overall value of these stakes is over $2.7 billion. AQR Capital Management owned the largest stake in the company in Q4.10. CSX Corporation (NASDAQ:CSX)Number of Hedge Fund Holders: 61CSX Corporation (NASDAQ:CSX) is an American transportation company that primarily operates in the railroad industry, providing rail-based freight transportation services. In February 2024, the company increased its dividend for the 19th consecutive year to $0.12 per share. With a dividend yield of 1.26% as of March 10, CSX is one of the best dividend stocks listed on NASDAQ.At the end of the fourth quarter of 2023, 61 hedge funds owned stakes in CSX Corporation (NASDAQ:CSX), compared with 62 in the preceding quarter. The total value of these stakes is $3.7 billion.9. Analog Devices, Inc. (NASDAQ:ADI)Number of Hedge Fund Holders: 62An American semiconductor company, Analog Devices, Inc. (NASDAQ:ADI) specializes in the design, manufacturing, and marketing of analog, mixed-signal, digital signal-processing integrated circuits. The company grew its quarterly dividend by 7% to $0.92 per share on February 21. This marked the company's 21st consecutive year of dividend growth. The stock offers a dividend yield of 1.88%, as of March 10. It is among the best dividend stocks on our list.At the end of December 2023, 62 hedge funds owned stakes in Analog Devices, Inc. (NASDAQ:ADI), compared with 64 in the previous quarter, as per Insider Monkey. The collective value of these stakes is over $4.44 billion. With over 4.3 million shares, Generation Investment Management was the company's leading stakeholder in Q4.8. Comcast Corporation (NASDAQ:CMCSA)Number of Hedge Fund Holders: 63Comcast Corporation (NASDAQ:CMCSA) is a multinational telecommunications and media conglomerate with a diverse range of operations. The company's dividend growth streak currently spans over 16 years, which makes it one of the best dividend stocks on our list. It offers a quarterly dividend of $0.31 per share and has a dividend yield of 2.91%, as of March 10.Insider Monkey's database for Q4 2023 indicated that 63 hedge funds owned stakes in Comcast Corporation (NASDAQ:CMCSA), down from 68 in the previous quarter. These stakes hold a value of over $4.27 billion in total.7. PepsiCo, Inc. (NASDAQ:PEP)Number of Hedge Fund Holders: 64With a dividend growth track record spanning over 52 years, PepsiCo, Inc. (NASDAQ:PEP) is next on our list of the best dividend stocks. The American beverage and snack company offers a quarterly dividend of $1.265 per share and has a dividend yield of 3.10%, as of March 10. The company has also announced a yearly dividend of $5.42 per share, marking a 7.1% rise from the previous dividend of $5.06 per share. This increase will take effect for the dividend anticipated to be distributed in June 2024.As of the end of Q4 2023, 64 hedge funds in Insider Monkey's database reported having stakes in PepsiCo, Inc. (NASDAQ:PEP), compared with 65 in the previous quarter. The total value of these stakes is over $4.55 billion. Among these hedge funds, Fundsmith LLP was the company's leading stakeholder in Q4.6. Amgen Inc. (NASDAQ:AMGN)Number of Hedge Fund Holders: 69Amgen Inc. (NASDAQ:AMGN) ranks sixth on our list of the best dividend stocks from the NASDAQ Composite. The multinational biopharmaceutical company has been growing its dividends for the past 11 years and currently offers a quarterly dividend of $2.25 per share. The stock's dividend yield on March 10 came in at 3.29%.Amgen Inc. (NASDAQ:AMGN) remained popular among elite funds at the end of Q4 2023, with 69 hedge funds investing in the company, up from 60 in the previous quarter. The stakes held by these funds are worth nearly $1.8 billion in total. Click to continue reading and see 5 Best NASDAQ Dividend Stocks To Buy.  Suggested articles:Wall Street Picked These 13 AI Stocks for 202412 Most Undervalued Biotech Stocks To Buy According To Hedge Funds13 Best Stocks To Buy and Hold ForeverDisclosure. None. 15 Best NASDAQ Dividend Stocks To Buy is originally published on Insider Monkey.

Insider Monkey

15 Best NASDAQ Dividend Stocks To Buy

https://finance.yahoo.com/news/15-best-nasdaq-dividend-stocks-120247625.html

7e47865a-4523-31c5-999a-2987c940211e

ADM

For Immediate ReleaseChicago, IL – February 26, 2024 – Zacks Equity Research shares The Progressive Corp, PGR as the Bull of the Day and Archer Daniels Midland ADM as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Exxon Mobil Corp. XOM, Matador Resources Co. MTDR and Diamondback Energy, Inc. FANG.Here is a synopsis of all five stocks:Bull of the Day:The Progressive Corp, a current Zacks Rank #1 (Strong Buy), is a massive American insurance company. Analysts have taken their expectations higher across the board.In addition to favorable earnings estimate revisions, the company resides within the Zacks Insurance – Property & Casualty industry, currently ranked in the top 20% of all Zacks industries. Let's take a deeper look at the company.ProgressiveRight off the bat, it's worth noting that Progressive shares have been monster performers in general over the last decade, delivering a remarkable 25% annualized return vs. the S&P 500's 13.1%. Shares got a solid boost following its latest set of quarterly results.Concerning the above-mentioned quarter, PGR exceeded the Zacks Consensus EPS estimate by 24% and posted a 3% revenue beat, reflecting growth rates of 97% and 23%, respectively. Drilling a bit deeper, Progressive saw total Policies in Force grow 9% from the year-ago period, reflecting continued business momentum.The company's top line performance has been strong, with revenues enjoying a recent acceleration.In addition, shares aren't overly stretched regarding valuation given the company's growth, with the current 21.6X forward earnings multiple (F1) comparing favorably to the Zacks industry average of 29.0X. PGR is forecasted to enjoy 45% earnings growth on 15% higher sales in its current year (FY24), with FY25 expectations alluding to an additional 17% bump in earnings paired with a 12% revenue boost.The stock carries a Style Score of 'A' for Growth and a Style Score of 'D' for Value.Story continuesIncome-focused investors could also be attracted to PGR shares, currently yielding a respectable 0.4% annually paired with a sustainable payout ratio sitting at 6% of its earnings.Bottom LineInvestors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.The Progressive Corp. would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).Bear of the Day:Archer Daniels Midland is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products. Analysts have lowered their earnings expectations over the last several months, pushing the stock into a Zacks Rank #5 (Strong Sell).In addition, the company resides in the Zacks Agriculture – Operations industry, which is currently ranked in the bottom 4% of all Zacks industries (242/250). Let's take a closer look at how the agriculture giant currently stacks up.Archer Daniels MidlandADM shares have had a rough showing over the last year, losing more than 30% in value and widely underperforming relative to the general market. News of the company suspending its CFO over accounting practices near the end of January caused shares to nosedive, as we can see highlighted below.It was the biggest one-day drop for the stock (-24%) since all the way back in 1929.Shares have seen modest buying pressure since, up a slight 2.5%. Nonetheless, the unfavorable coverage has certainly weighed heavily on investors' sentiment and will remain a hurdle for the company to clear.Bottom LineNegative earnings estimate revisions from analysts and a recent suspension of its CFO paint a challenging picture for the company's shares in the near term.Archer Daniels Midland is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company's earnings outlook.For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.Additional content:Keep an Eye on 3 Permian Plays as Energy Stays StrongThe pricing environment of crude oil continues to be favorable, encouraging more exploration and production activities. Upstream players may keep increasing their operations in prolific shale resources, consequently raising the count of drilling rigs. With the uptick in drilling activities, production is expected to increase, benefiting businesses involved in exploration and production.Oil Price Still HighWest Texas Intermediate crude price is trading at more than $75 per barrel, which is favorable for exploration and production activities. In its short-term energy outlook, the U.S. Energy Information Administration ("EIA") projected the average spot price of West Texas Intermediate crude at $77.68 per barrel this year, still a handsome price for upstream operations.Permian Oil Production to RiseIn March, total oil production from shale resources in the United States will likely increase by 20,000 barrels per day to 9,716 thousand barrels per day (MBbl/D), per EIA. The shale resources comprise Anadarko, Appalachia, Bakken, Eagle Ford, Haynesville, Niobrara and Permian.Of all the resources, Permian will witness the highest increase in daily oil production next month, according to the EIA's drilling productivity report. In the Permian, the EIA projects oil production to rise by 14,000 barrels per day to 6,085 MBbls/D next month.Permian Explorers in the SpotlightIt is crystal clear that a favorable crude pricing scenario is backing higher production volumes. Improving Permian production amid healthy oil prices raised the incentive to keep an eye on companies like Exxon Mobil Corp., Matador Resources Co. and Diamondback Energy, Inc., operating in the most prolific basin. All the stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.3 Stocks to GainExxonMobil has solid upstream businesses. In the Permian Basin, ExxonMobil has a solid pipeline of profitable projects. To strengthen its presence in the Permian further, ExxonMobil entered into a staggering $59.5 billion all-stock deal to buy Pioneer Natural Resources (PXD). This is because Pioneer Natural is one of the foremost oil producers operating in the Permian Basin. With the deal closure expected in the first half of 2024, Permian production of the integrated energy major will increase significantly.Diamondback Energy, a leading pure-play Permian operator, has reported ongoing enhancements in the average productivity per well in the Midland Basin. The exploration and production company is likely to continue witnessing increased production volumes. FANG also has an investment-grade balance sheet.Matador Resources has a strong presence in the oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. In the sub-basin of the broader Permian, the company has a vast inventory of drilling areas that will back the exploration and production company's production volumes.Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339https://www.zacks.comZacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportExxon Mobil Corporation (XOM) : Free Stock Analysis ReportArcher Daniels Midland Company (ADM) : Free Stock Analysis ReportThe Progressive Corporation (PGR) : Free Stock Analysis ReportDiamondback Energy, Inc. (FANG) : Free Stock Analysis ReportMatador Resources Company (MTDR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

The Progressive and Archer Daniels Midland have been highlighted as Zacks Bull and Bear of the Day

https://finance.yahoo.com/news/progressive-archer-daniels-midland-highlighted-135100405.html

9c8b5d01-3eb7-39c4-a66c-28a3da3d6f7a

ADM

In this article, we discuss 13 best environmental dividend stocks to invest in according to analysts. You can skip our detailed analysis of ESG investing and its prospects, and go directly to read 5 Best Environmental Dividend Stocks To Invest In According To Analysts. Sustainable investing, increasingly gaining traction among investors, represents a pivotal shift in financial markets towards aligning profit motives with environmental, social, and governance (ESG) considerations. A growing number of individuals are becoming attracted to ESG investments for a variety of reasons, ranging from ethical concerns to sound financial decision-making. As per research conducted by deVere Group, over 800 clients revealed that more than half (56%) of investors expressed their intentions to boost their investments in ESG funds in 2024.Despite the increasing popularity of ESG investing, the year 2023 did not fare well for such investment strategies. Investors persisted in withdrawing their investments from sustainable funds during the fourth quarter of 2023. U.S. sustainable funds experienced their initial year of outflows since records began over a decade ago, marking 2023 as their most challenging year to date, according to a report by Morningstar. In the fourth quarter alone, investors withdrew $5 billion from U.S. sustainable funds, contributing to a total outflow of $13 billion throughout the year. This trend was attributed to underperformance, ongoing political scrutiny in the US, and a challenging year for an iShares fund. Moreover, by the end of 2023, the total assets invested in sustainable funds reached $323 billion. This figure indicates a drop of approximately 12% from the previous record high recorded at the end of 2021. However, it also signifies an 18% increase from the lowest point observed in the third quarter of 2022. In contrast, assets within the broader U.S. funds market reached their peak at the end of 2021 but experienced a decline of 5% by the end of 2023.Story continuesThat said, analysts are optimistic about the potential of ESG investing in the foreseeable future. Based on a study conducted by Bloomberg Intelligence, global ESG assets are projected to surpass $53 trillion by 2025, constituting more than a third of the estimated total assets under management of $140.5 trillion. The convergence of factors including the pandemic and the green recovery initiatives in major economies such as the U.S., EU, and China is expected to demonstrate the efficacy of ESG in evaluating a fresh array of financial risks and leveraging capital markets.As discussed previously, there is a growing trend among investors towards ESG investing, primarily due to the reputation of these assets for delivering consistent returns. Contrary to concerns regarding potential conflicts between financial gains and ESG principles, a survey conducted by PwC revealed that nine out of ten asset managers believe that incorporating ESG criteria into their investment approach will enhance overall returns. Moreover, a majority of institutional investors, accounting for 60%, reported experiencing higher performance yields from ESG investments compared to non-ESG alternatives. The survey also noted that investors are willing to pay for ESG performance, as they anticipate the potential for higher returns. Specifically, three-quarters of those surveyed, constituting 78%, expressed their readiness to pay elevated fees for ESG funds.American Tower Corporation (NYSE:AMT), AT&T Inc. (NYSE:T), and Albemarle Corporation (NYSE:ALB) are some of the best companies in the realm of ESG investing. Beyond their financial success, the companies demonstrate a commitment to environmental sustainability by optimizing their operations to minimize energy consumption and carbon footprint. In this article, we will discuss some of the best environmental dividend stocks according to analysts.13 Best Environmental Dividend Stocks To Invest In According To AnalystsChinnapong/Shutterstock.comOur Methodology:For this list, we scanned the holdings of Vanguard ESG U.S. Stock ETF, which is a market capitalization-weighted index composed of large-, mid-, and small-cap stocks of companies located in the United States that are screened for certain environmental, social, and corporate governance (ESG) criteria by the index provider, which is independent of Vanguard. From the index, we picked 13 stocks that pay dividends and have a projected upside potential of over 15% based on analyst price targets. The stocks are ranked according to their upside potential, as of February 23. We have also mentioned hedge fund sentiment for these stocks. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.13. S&P Global Inc. (NYSE:SPGI)Upside Potential as of February 23: 15.2%S&P Global Inc. (NYSE:SPGI) is a leading provider of financial market intelligence, including credit ratings, indices, data, and analytics. The company is actively involved in ESG investing both through its own corporate practices and by providing data, analytics, and research to support ESG investing initiatives in the broader financial community.S&P Global Inc. (NYSE:SPGI) currently offers a quarterly dividend of $0.91 per share, having raised it by 1.1% in January this year. Through this increase, the company stretched its annual dividend growth streak to 51 years, which makes SPGI one of the best dividend stocks on our list. The stock's dividend yield on February 23 came in at 0.83%.The number of hedge funds tracked by Insider Monkey owning stakes in S&P Global Inc. (NYSE:SPGI) grew to 82 in Q4 2023, from 78 in the previous quarter. The collective value of these stakes is over $8.88 billion. With over 9 million shares, TCI Fund Management was the company's leading stakeholder in Q4.12. Pfizer Inc. (NYSE:PFE)Upside Potential as of February 23: 15.4%An American biotech and pharmaceutical company, Pfizer Inc. (NYSE:PFE) has committed to reducing its environmental impact by setting targets to decrease greenhouse gas emissions, water usage, and waste generation. The company invests in energy-efficient technologies, sustainable packaging, and renewable energy sources to mitigate its environmental footprint.Pfizer Inc. (NYSE:PFE) is one of the best environmental dividend stocks on our list as the company has been rewarding shareholders with growing dividends for the past 14 consecutive years. The company offers a quarterly dividend of $0.42 per share and has a dividend yield of 6.05%, as recorded on February 23.At the end of Q4 2023, 79 hedge funds tracked by Insider Monkey reported having stakes in Pfizer Inc. (NYSE:PFE), growing from 73 in the preceding quarter. The consolidated value of these stakes is more than $2.21 billion.11. Mid-America Apartment Communities, Inc. (NYSE:MAA)Upside Potential as of February 23: 15.9%Mid-America Apartment Communities, Inc. (NYSE:MAA) is a real estate investment trust company that focuses on the acquisition, development, redevelopment, and management of multifamily apartment communities. It invests in in energy-efficient appliances, lighting, and HVAC systems, as well as implement recycling programs and landscaping practices that minimize water usage and promote biodiversity. The company offers a quarterly dividend of $1.47 per share, having raised it by 5% in December 2023. This was the company's 13th consecutive year of dividend growth, which makes MAA one of the best environmental dividend stocks to buy. As of February 23, the stock has a dividend yield of 4.65%.As of the close of Q4 2023, 23 hedge funds in Insider Monkey's database owned stakes in Mid-America Apartment Communities, Inc. (NYSE:MAA), up from 19 in the previous quarter. These stakes have a total value of more than $524.3 million. Among these hedge funds, Balyasny Asset Management was the company's leading stakeholder in Q4.10. Morgan Stanley (NYSE:MS)Upside Potential as of February 23: 16.4%Morgan Stanley (NYSE:MS) is a global financial services firm that provides a wide range of related services to its consumers. The company offers a range of ESG-focused investment products and solutions to meet the growing demand from clients who seek to align their investments with their values.Morgan Stanley (NYSE:MS), one of the best dividend stocks on our list, has been rewarding shareholders with regular dividends since 1997. It currently offers a quarterly dividend of $0.85 per share and has a dividend yield of 3.93%, as of Februart 23.Morgan Stanley (NYSE:MS) was a part of 56 hedge fund portfolios at the end of Q4 2023, compared with 59 in the previous quarter, as per Insider Monkey's database. The stakes owned by these hedge funds have a total value of over $2.72 billion.9. Becton, Dickinson and Company (NYSE:BDX)Upside Potential as of February 23: 16.5%Becton, Dickinson and Company (NYSE:BDX) is a global medical technology company that specializes in the development, manufacturing, and sale of medical devices, instrument systems, and reagents. The company adheres to stringent regulatory standards and quality management systems to ensure the safety and reliability of its medical devices, instruments, and reagents. This commitment to product safety aligns with ESG principles and contributes to positive health outcomes for patients.On January 23, Becton, Dickinson and Company (NYSE:BDX) declared a quarterly dividend of $0.95 per share, which was in line with its previous dividend. Overall, the company holds a 52-year streak of consistent dividend growth, which makes BDX one of the best environmental dividend stocks on our list. The stock's dividend yield on February 23 came in at 1.54%.At the end of December 2023, 60 hedge funds tracked by Insider Monkey reported having stakes in Becton, Dickinson and Company (NYSE:BDX), which showed growth from 57 in the previous quarter. The collective value of these stakes is over $2.57 billion.8. Realty Income Corporation (NYSE:O)Upside Potential as of February 23: 16.69%With an upside potential of nearly 17%, Realty Income Corporation (NYSE:O) is next on our list of the best dividend stocks. The American real estate investment trust company has been paying regular dividends to shareholders for the past 104 consecutive quarters. Moreover, it has raised its payouts for 29 years in a row. It currently pays a monthly dividend of $0.2565 per share and has a dividend yield of 5.81%, as of February 23.Realty Income Corporation (NYSE:O) is equally dedicated to conducting its business activities in a manner that respects and preserves the environment. As a publicly traded company, it recognizes its corporate responsibilities and strives to fulfill them for the betterment of our stakeholders, which include our shareholders, employees, and the communities we serve.Insider Monkey's database of Q4 2023 indicated that 28 hedge funds owned stakes in Realty Income Corporation (NYSE:O), up from 23 in the previous quarter. The total value of these stakes is over $332.5 million. Among these hedge funds, Millennium Management was the company's largest stakeholder in Q4.7. Microsoft Corporation (NASDAQ:MSFT)Upside Potential as of February 23: 16.8%An American multinational tech company, Microsoft Corporation (NASDAQ:MSFT) is dedicated to environmental sustainability and has set ambitious goals to reduce its carbon footprint and achieve carbon neutrality. Currently, the company pays a quarterly dividend of $0.75 per share and has a dividend yield of 0.73%, as of February 23. It is one of the best dividend stocks on our list as the company holds an 11-year streak of consistent dividend growth.According to Insider Monkey’s database of Q4 2023, 302 hedge funds in Insider Monkey’s database owned stakes in Microsoft Corporation (NASDAQ:MSFT), compared with 306 in the previous quarter. These stakes have a total value of over $87.3 billion.6. Archer-Daniels-Midland Company (NYSE:ADM)Upside Potential as of February 23: 17.04%Archer-Daniels-Midland Company (NYSE:ADM) ranks sixth on our list of the best environmental dividend stocks. The global food processing and commodities trading company recently achieved its 51st consecutive annual dividend growth. It currently pays a quarterly dividend of $0.50 per share and has a dividend yield of 3.74%, as of February 23.Archer-Daniels-Midland Company (NYSE:ADM) prioritizes sustainable sourcing of raw materials, including agricultural commodities such as soybeans, corn, and wheat. The company works with farmers and suppliers to promote sustainable agricultural practices, responsible land management, and biodiversity conservation.At the end of the fourth quarter of 2023, 34 hedge funds tracked by Insider Monkey reported having stakes in Archer-Daniels-Midland Company (NYSE:ADM), compared with 37 in the previous quarter. These stakes are collectively valued at nearly $820 million. Click to continue reading and see 5 Best Environmental Dividend Stocks To Invest In According To Analysts.  Suggested articles:12 Best Rising Penny Stocks To Buy12 Best Gold Stocks Under $2513 Best Buy-the-Dip Stocks To Buy Right NowDisclosure. None. 13 Best Environmental Dividend Stocks To Invest In According To Analysts is originally published on Insider Monkey.

Insider Monkey

13 Best Environmental Dividend Stocks To Invest In According To Analysts

https://finance.yahoo.com/news/13-best-environmental-dividend-stocks-141835353.html

3312bcf2-2bca-31b4-b94d-dae2c6990864

ADM

(Bloomberg) -- Japan is seeing a resurgence of atomic power as the country marks the 13th anniversary of the massive earthquake and tsunami that led to the Fukushima nuclear disaster. Gold is on fire, soaring to a fresh record. Meanwhile, Archer-Daniels-Midland Co. is slated to release its fourth-quarter results, which have been delayed amid an accounting probe.Most Read from BloombergOne of the Most Infamous Trades on Wall Street Is Roaring BackStock Rally Stalls in Countdown to Inflation Data: Markets WrapThese Are the Best Countries for Wealthy ExpatsBond Investors Are Lining Up to Fund the War Against PutinHere are five notable charts to consider in global commodity markets as the week gets underway.Nuclear PowerWhile Japan suspended operations at all of its nuclear power plants after the March 11, 2011, meltdown at Fukushima, facilities are coming back. Nuclear generation is set to surge 20% from last year as some of the final reactors pending restarts come online, according to BloombergNEF. At the same time, demand for liquefied natural gas imports is set to decline, with the restarts and higher coal-fired electricity generation squeezing appetite for the superchilled fuel in the power sector.MetalsSpot gold is fresh off its best week since October when Hamas attacked Israel, settling within striking distance of $2,200 an ounce after gaining 4.6% for the five-day period. The upward momentum is buoyed by strong buying from global central banks and bets that the Federal Reserve will cut interest rates this year. Lower rates would be supportive of further price gains for the non-interest bearing precious metal and may prompt analysts to revise their year-end forecasts. For now, the median projection is $2,100 an ounce, below current spot prices. The next Fed rate decision is March 20. Gold fluctuated in Monday trading.Energy TransitionThe energy transition will take center stage at next week’s CERAWeek by S&P Global conference, one of the industry’s biggest global events. The prospect of a rapid increase in demand for critical minerals amid the shift to electric vehicles poses huge questions about the availability and reliability of supply, and carries the potential for new challenges to energy security. A typical electric car requires six times the mineral inputs of a conventional car, according to the International Energy Agency. And it’s not just the transportation sector that will put a massive strain on resources: An onshore wind farm requires nine times more mineral resources than a gas-fired plant, the IEA said.Story continuesOilNearby time spreads for both West Texas Intermediate and Brent futures — which help gauge tightness in the market — are in retreat after climbing for much of the year amid disruptions to oil flows through the Red Sea. But crude prices themselves are still stuck in a tight trading range, an indication that a healthy balance exists in physical markets. Investors will be focused on monthly oil market reports from the Organization of Petroleum Exporting Countries (Tuesday) and the International Energy Agency (Thursday) for the latest read on supply and demand.AgricultureADM, one of the world’s top agricultural commodity traders, has seen its market capitalization plunge by about 20% since suspending Chief Financial Officer Vikram Luthar in late January amid an accounting probe and cutting its earnings outlook. The investigation is centered around its nutrition unit, which makes higher-value products including flavorings and pet-food ingredients. ADM said earlier this month that it anticipates a “material weakness” in its internal controls, which won’t have a broad impact on earnings. In addition to releasing quarterly results before the market open on Tuesday, the company is expected to file form 10-K — a comprehensive summary of its financial performance.--With assistance from Olympe Mattei and Nilushi Karunaratne.(Updates gold trading in fourth paragraph and refreshes oil time spreads chart.)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

Five Key Charts to Watch in Global Commodities This Week

https://finance.yahoo.com/news/five-key-charts-watch-global-210000861.html

fa3f8ef2-d280-3cee-ad11-a966426a5d64

ADM

Tesla isn't just 2024's worst performer in the Magnificent Seven, it's the biggest loser in the S&P 500 index vs. standout Nvidia.Continue reading

Investor's Business Daily

Nvidia Has Soared In 2024, But These 8 Stocks Are Far From Magnificent

https://finance.yahoo.com/m/414888cf-2c76-386e-aa0f-d83a78425889/nvidia-has-soared-in-2024-.html

414888cf-2c76-386e-aa0f-d83a78425889

ADP

HR leaders can rapidly source and implement benefits of AI across their HCM ecosystems ROSELAND, N.J., Feb. 22, 2024 /PRNewswire/ -- ADP Marketplace, the world's largest digital HR storefront with over 800 partner solutions worldwide, is enhancing the client experience by offering AI-enabled, integrated partner solutions. ADP Marketplace now provides clients with greater ease and confidence in identifying and selecting these solutions for their companies. ADP Marketplace has adopted responsible AI principles to which all its partners offering AI-enabled solutions must commit. ADP Marketplace also uses machine learning to easily surface best-fit applications to meet clients' critical HR needs. These capabilities are part of an enterprise-wide initiative at ADP to bring the power of AI to HR practitioners, managers and employees.ADP Marketplace is enhancing the client experience by offering AI-enabled, integrated partner solutions."We launched ADP Marketplace 10 years ago as the first one-stop shop for clients to find integrated HR solutions that seamlessly share and connect data with ADP," explains Anthony Maggio, vice president and general manager, ADP Marketplace. "For years, machine learning has powered the ADP Marketplace platform's customized HCM solution recommendations for our clients based on factors like their industry, company size and ADP platform. And now, a growing number of our more than 300 partners offer solutions with AI-embedded features that make HR easier, smarter and more human, to help our clients simplify their processes."Partners offering AI features as part of their solution must agree to comply with ADP Marketplace's AI principles regarding human oversight, monitoring, explainability and mitigating bias. These principles are based on the same AI principles ADP follows when developing its own products.ADP Marketplace allows clients to easily purchase solutions that help them manage the entire HR life cycle and more efficiently run their business. Current AI-enabled applications on ADP Marketplace include HR solutions for recruiting and onboarding, compliance, time and labor management, performance, productivity, collaboration, and more.Story continuesADP Marketplace has a governance policy that gives clients peace of mind knowing that their integration is secure and stable. Every ADP Marketplace partner integration has passed a thorough and comprehensive security assessment to help safeguard the confidentiality and integrity of their employee data. Clients can benefit from the simplicity of single sign-on with seamless data integration that doesn't require IT help to implement.Learn more at https://www.adp.com/AI-EnabledMarketplaceAbout ADP (NASDAQ: ADP)Designing better ways to work through cutting-edge products, premium services and exceptional experiences that enable people to reach their full potential. HR, Talent, Time Management, Benefits and Payroll. Informed by data and designed for people. Learn more at ADP.comADP Marketplace, ADP, the ADP logo, and Always Designing for People, are trademarks of ADP, Inc. All other marks are the property of their respective owners.Copyright © 2024 ADP, Inc.  All rights reserved.(PRNewsfoto/ADP, LLC)CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/adp-offers-ai-enabled-partner-solutions-on-powerful-simple-and-secure-adp-marketplace-302068819.htmlSOURCE ADP, Inc.

PR Newswire

ADP® Offers AI-Enabled Partner Solutions on Powerful, Simple and Secure ADP Marketplace

https://finance.yahoo.com/news/adp-offers-ai-enabled-partner-133600999.html

34e46f44-c637-33f6-a4ca-8e2151a76761

ADP

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 Automatic Data Processing, Inc. (NASDAQ:ADP) in its Q4 2023 investor letter. Headquartered in Roseland, New Jersey, Automatic Data Processing, Inc. (NASDAQ:ADP) provides cloud-based human capital management solutions. On February 23, 2024, Automatic Data Processing, Inc. (NASDAQ:ADP) stock closed at $255.87 per share. One-month return of Automatic Data Processing, Inc. (NASDAQ:ADP) was 7.64%, and its shares gained 15.46% of their value over the last 52 weeks. Automatic Data Processing, Inc. (NASDAQ:ADP) has a market capitalization of $ 105.109 billion.Polen Global Growth Strategy stated the following regarding Automatic Data Processing, Inc. (NASDAQ:ADP) in its fourth quarter 2023 investor letter:"Automatic Data Processing, Inc. (NASDAQ:ADP) modestly underperformed during the quarter. The company’s revenue and earnings growth has been in line with our expectations. Still, market participants appear to be concerned about the prospect of higher unemployment and lower interest rates in 2024, factors that could present modest headwinds to ADP’s growth. Our view of the business and its long-term growth trajectory haven’t changed, and we believe the company continues to execute at a high level."A close-up of two software engineers typing away at laptops in a modern, well-lit office.Story continuesAutomatic Data Processing, Inc. (NASDAQ:ADP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Automatic Data Processing, Inc. (NASDAQ:ADP) was held by 54 hedge fund portfolios, up from 50 in the previous quarter, according to our database.We discussed Automatic Data Processing, Inc. (NASDAQ:ADP) in another article and shared the list of best stocks for dividends. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.Suggested Articles:15 Best Coffee Beans for Beginners17 Safest Places to Retire Abroad for Less Than $3,000 a Month15 Most Luxurious Places To Retire Abroad if You Have a Budget Over $15,000 a MonthDisclosure: None. This article is originally published at Insider Monkey.

Insider Monkey

Will Automatic Data Processing (ADP) Continue to Execute at a High Level?

https://finance.yahoo.com/news/automatic-data-processing-adp-continue-083854337.html

be97ed08-3061-3a0c-8d3d-541897e3d5e3

ADP

ROSELAND, N.J., March 6, 2024 /PRNewswire/ -- Private sector employment increased by 140,000 jobs in February and annual pay was up 5.1 percent year-over-year, according to the February ADP® National Employment ReportTM produced by the ADP Research Institute® in collaboration with the Stanford Digital Economy Lab ("Stanford Lab"). The ADP National Employment Report is an independent measure and high-frequency view of the private-sector labor market based on actual, anonymized payroll data of more than 25 million U.S. employees.The jobs report and pay insights use ADP's fine-grained anonymized and aggregated payroll data to provide a representative picture of the private-sector labor market. The report details the current month's total private employment change, and weekly job data from the previous month. Because the underlying ADP payroll databases are continuously updated, the report provides a high-frequency, near real-time measure of U.S. employment. This measure reflects the number of employees on ADP client payrolls (Payroll Employment) to provide a richer understanding of the labor market. ADP's pay measure uniquely captures the earnings of a cohort of almost 10 million employees over a 12-month period."Job gains remain solid. Pay gains are trending lower but are still above inflation," said Nela Richardson, chief economist, ADP.  "In short, the labor market is dynamic, but doesn't tip the scales in terms of a Fed rate decision this year."February 2024 Report Highlights*View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.JOBS REPORTPrivate employers added 140,000 jobs in February While employment growth remained steady, pay gains for job-changers accelerated for the first time in more than a year, rising to 7.6 percent from 7.2 percent.Change in U.S. Private Employment:     140,000Change by Industry Sector- Goods-producing:     30,000Story continuesNatural resources/mining     -4,000Construction     28,000Manufacturing     6,000- Service-providing:     110,000Trade/transportation/utilities     24,000Information     -2,000Financial activities     17,000Professional/business services     5,000Education/health services     11,000Leisure/hospitality     41,000Other services     14,000Change by U.S. Regions - Northeast:     20,000New England     6,000Middle Atlantic     14,000- Midwest:     39,000East North Central     32,000West North Central     7,000- South:     37,000South Atlantic     35,000East South Central     -13,000West South Central     15,000- West:     42,000Mountain     7,000Pacific     35,000Change by Establishment Size - Small establishments:     13,0001-19 employees     11,00020-49 employees     2,000- Medium establishments:     69,00050-249 employees     53,000250-499 employees     16,000- Large establishments:     61,000500+ employees     61,000PAY INSIGHTS Pay gains for job-changers rose in February For job-changers, year-over-year pay gains were 7.6 percent, up from the prior month and the first increase since November 2022. Pay gains for job-stayers continued to decelerate, reaching 5.1 percent, the smallest gain since August 2021.Median Change in Annual Pay (ADP matched person sample)- Job-Stayers     5.1%- Job-Changers     7.6%Median Change in Annual Pay for Job-Stayers by Industry Sector - Goods-producing:Natural resources/mining     4.5%Construction     5.5%Manufacturing     4.8%- Service-providing:                                              Trade/transportation/utilities     4.6%Information     4.8%Financial activities     5.5%Professional/business services     5.1%Education/health services     5.7%Leisure/hospitality     5.9%Other services     5.5%Median Change in Annual Pay for Job-Stayers by Firm Size- Small firms:                                                                 1-19 employees     4.4%20-49 employees     5.2%- Medium firms:                                                              50-249 employees     5.4%250-499 employees     5.3%- Large firms:                                                                 500+ employees     5.1%To see Pay Insights by U.S. State, Gender, and Age for Job-Stayers, visit here: * Sum of components may not equal total, due to rounding.The January total of jobs added was revised from 107,000 to 111,000. The historical data file, and weekly data for the previous month, is available at https://adpemploymentreport.com/.To subscribe to monthly email alerts or obtain additional information about the ADP National Employment Report, including employment and pay data, interactive charts, methodology, and a calendar of release dates, please visit https://adpemploymentreport.com/.  The March 2024 ADP National Employment Report will be released at 8:15 a.m. ET on April 3, 2024.About the ADP® National Employment ReportTM The ADP National Employment Report is an independent measure of the change in U.S. private employment and pay derived from actual, anonymized payroll data of client companies served by ADP, a leading provider of human capital management solutions. The report is produced by ADP Research Institute in collaboration with the Stanford Digital Economy Lab.The ADP National Employment Report is broadly distributed to the public each month, free of charge, as part of the company's commitment to offering deeper insights of the U.S. labor market and providing businesses and governments with a source of credible and valuable information.About the ADP Research Institute® The ADP Research Institute delivers data-driven discoveries about the world of work and derives reliable economic indicators from these insights. We offer these findings as a unique contribution to making the world of work better and more productive by delivering actionable insights to the economy at large.About ADP (NASDAQ – ADP) Designing better ways to work through cutting-edge products, premium services and exceptional experiences that enable people to reach their full potential.  HR, Talent, Time Management, Benefits and Payroll. Informed by data and designed for people.   Learn more at ADP.comADP, the ADP logo, and Always Designing for People, ADP National Employment Report, and ADP Research Institute are registered trademarks of ADP, Inc. All other marks are the property of their respective owners. Copyright © 2024 ADP, Inc. All rights reserved.ADP-Media(PRNewsfoto/ADP, LLC) ADP Research Institute, logo (PRNewsfoto/ADP, Inc.)CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/adp-national-employment-report-private-sector-employment-increased-by-140-000-jobs-in-february-annual-pay-was-up-5-1-302081418.htmlSOURCE ADP, Inc.

PR Newswire

ADP National Employment Report: Private Sector Employment Increased by 140,000 Jobs in February; Annual Pay was Up 5.1%

https://finance.yahoo.com/news/adp-national-employment-report-private-131500726.html

f3a55ab1-6109-3d2d-8657-77a77ccc1cc9

ADP

In this article, we discuss 15 best NASDAQ dividend stocks to buy. You can skip our detailed analysis of NASDAQ stocks and the performance of dividend stocks over the years, and go directly to read 5 Best NASDAQ Dividend Stocks To Buy. The NASDAQ, which primarily consists of technology-related stocks, has been experiencing upward momentum since the previous year. In 2023, it saw remarkable growth, achieving its strongest performance since 2020 with an increase of over 43%. As of March 7, it has gained 10.21%, surpassing the broader market's gain of 8.72% this year so far. Notably, according to Jonathan Krinsky, a leading market analyst at BTIG, the NASDAQ-100, which is heavily concentrated in tech, has endured 303 consecutive trading sessions without experiencing a decline of 2.5% or more as of March 5, marking it as the third-longest period without such a significant pullback since 1990. Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL) are some of the best dividend stocks listed on the index.The impressive performance of NASDAQ can be largely attributed to the excitement surrounding artificial intelligence, which has driven up the prices of major technology stocks and boosted the overall market throughout 2023 and into the current year. Additionally, the easing of inflation and the Federal Reserve's indication of potential rate cuts later in 2024 have further supported NASDAQ's rebound from the challenges it faced in 2022. Despite the prevalence of technology companies in the NASDAQ index, many companies offer dividends to shareholders. A notable recent addition to the list of dividend-paying companies in the index is Meta Platforms, Inc. (NASDAQ:META), which made headlines in February of this year by declaring its inaugural dividend. This move marks a significant milestone for the technology sector, which has long been dominated by a select few companies for more than a decade.Story continuesMeta's decision to offer a dividend serves as evidence that investors are increasingly interested in dividend-paying stocks for their capacity to provide consistent and reliable income. This trend was evident in 2023 when companies in the US distributed record dividends to their shareholders. According to a report by Janus Henderson, the S&P 500 paid out an all-time high of $70.30 per share last year, a notable increase from $66.92 in 2022. This resulted in a total payment to shareholders reaching a record $588.2 billion, surpassing the previous year's figure of $564.6 billion. The report also mentioned that there were 707 instances of dividend increases reported in the fourth quarter of 2023. These increases amounted to a total of $17.5 billion for the quarter, showing an uptick from the $16.3 billion recorded in the fourth quarter of 2022.Furthermore, dividend-paying stocks have historically delivered robust returns. Since 1960, dividends have contributed to approximately one-third of the market's total return. Dividend stocks offer a degree of stability during periods of increased market volatility. According to a report by Perkins Coie, a Washington-based law firm, dividend-paying stocks exhibit 30%-33% lower volatility compared to non-dividend-paying stocks. This stability has been particularly notable during turbulent decades like the 1930s and 2000s, where dividend-paying stocks served as a buffer against significant declines in market prices. In addition to this, dividend-paying companies that consistently increase their dividends can provide better protection against inflation than bonds in an inflationary environment.In view of this, we will take a look at some of the best dividend stocks listed on NASDAQ.15 Best NASDAQ Dividend Stocks To BuyPhoto by nick chong on UnsplashOur Methodology:For this list, we scanned Insider Monkey’s database of 933 hedge funds as of the fourth quarter of 2023 and selected companies that are trading on the NASDAQ exchange and also pay dividends to shareholders. From that list, we picked 15 stocks with the highest number of hedge fund investors and ranked in ascending order of hedge funds’ sentiment toward them. 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).15. Automatic Data Processing, Inc. (NASDAQ:ADP)Number of Hedge Fund Holders: 54Automatic Data Processing, Inc. (NASDAQ:ADP) is an American company that specializes in human capital management solutions, offering a wide range of services and software to help businesses manage their workforce efficiently. On January 10, the company declared a quarterly dividend of $1.40 per share, which was in line with its previous dividend. In 2023, the company achieved its 49th consecutive annual dividend growth, making ADP one of the best dividend stocks listed on NASDAQ. The stock offers a dividend yield of 2.31%, as of March 10.The number of hedge funds tracked by Insider Monkey owning stakes in Automatic Data Processing, Inc. (NASDAQ:ADP) grew to 54 in Q4 2023, from 50 in the previous quarter. The collective value of these stakes is over $3.13 billion.14. Gilead Sciences, Inc. (NASDAQ:GILD)Number of Hedge Fund Holders: 55Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company that focuses on the development, manufacturing, and commercialization of innovative medicines, especially in areas of unmet medical need. The company was included in 55 hedge fund portfolios at the end of Q4 2023, which remained unchanged from the previous quarter, according to Insider Monkey's database. The stakes held by these hedge funds have a consolidated value of nearly $2.3 billion.Gilead Sciences, Inc. (NASDAQ:GILD), one of the best dividend stocks on our list, announced a 2.7% hike in its quarterly dividend at $0.77 per share on February 6. This was the company's ninth consecutive year of dividend growth. As of March 10, the stock has a dividend yield of 4.10%.13. Costco Wholesale Corporation (NASDAQ:COST)Number of Hedge Fund Holders: 57Costco Wholesale Corporation (NASDAQ:COST) is next on our list of the best dividend stocks listed on NASDAQ. The multinational retail corporation holds a 19-year track record of consistent dividend growth and offers a quarterly dividend of $1.02 per share. The stock's dividend yield on March 10 came in at 0.56%.At the end of Q4 2023, 57 hedge funds in Insider Monkey's database reported owning stakes in Costco Wholesale Corporation (NASDAQ:COST), compared with 65 a quarter earlier. These stakes have a collective value of more than $4 billion. With roughly 3 million shares, Fisher Asset Management was the company's leading stakeholder in Q4.12. Starbucks Corporation (NASDAQ:SBUX)Number of Hedge Fund Holders: 59Starbucks Corporation (NASDAQ:SBUX) is a multinational chain of coffeehouses and roastery reserves. The company's current quarterly dividend comes in at $0.57 per share for a dividend yield of 2.50%, as recorded on March 10. With a dividend growth streak spanning over 13 years, SBUX is one of the best dividend stocks listed on NASDAQ.According to Insider Monkey's database of Q4 2023, 59 hedge funds invested in Starbucks Corporation (NASDAQ:SBUX), down slightly from 60 in the previous quarter. These stakes are worth over $3.6 billion in total.11. Cisco Systems, Inc. (NASDAQ:CSCO)Number of Hedge Fund Holders: 60Cisco Systems, Inc. (NASDAQ:CSCO) is a California-based tech company that primarily operates in the networking and communications technology sector. On February 1, the company declared a 2.6% increase in its quarterly dividend to $0.40 per share. Through this hike, the company stretched its dividend growth streak to 17 years, which makes CSCO one of the best dividend stocks on our list. The stock has a dividend yield of 3.23%, as of March 10.As of the end of Q4 2023, 60 hedge funds in our database held stakes in Cisco Systems, Inc. (NASDAQ:CSCO), compared with 64 in the previous quarter. The overall value of these stakes is over $2.7 billion. AQR Capital Management owned the largest stake in the company in Q4.10. CSX Corporation (NASDAQ:CSX)Number of Hedge Fund Holders: 61CSX Corporation (NASDAQ:CSX) is an American transportation company that primarily operates in the railroad industry, providing rail-based freight transportation services. In February 2024, the company increased its dividend for the 19th consecutive year to $0.12 per share. With a dividend yield of 1.26% as of March 10, CSX is one of the best dividend stocks listed on NASDAQ.At the end of the fourth quarter of 2023, 61 hedge funds owned stakes in CSX Corporation (NASDAQ:CSX), compared with 62 in the preceding quarter. The total value of these stakes is $3.7 billion.9. Analog Devices, Inc. (NASDAQ:ADI)Number of Hedge Fund Holders: 62An American semiconductor company, Analog Devices, Inc. (NASDAQ:ADI) specializes in the design, manufacturing, and marketing of analog, mixed-signal, digital signal-processing integrated circuits. The company grew its quarterly dividend by 7% to $0.92 per share on February 21. This marked the company's 21st consecutive year of dividend growth. The stock offers a dividend yield of 1.88%, as of March 10. It is among the best dividend stocks on our list.At the end of December 2023, 62 hedge funds owned stakes in Analog Devices, Inc. (NASDAQ:ADI), compared with 64 in the previous quarter, as per Insider Monkey. The collective value of these stakes is over $4.44 billion. With over 4.3 million shares, Generation Investment Management was the company's leading stakeholder in Q4.8. Comcast Corporation (NASDAQ:CMCSA)Number of Hedge Fund Holders: 63Comcast Corporation (NASDAQ:CMCSA) is a multinational telecommunications and media conglomerate with a diverse range of operations. The company's dividend growth streak currently spans over 16 years, which makes it one of the best dividend stocks on our list. It offers a quarterly dividend of $0.31 per share and has a dividend yield of 2.91%, as of March 10.Insider Monkey's database for Q4 2023 indicated that 63 hedge funds owned stakes in Comcast Corporation (NASDAQ:CMCSA), down from 68 in the previous quarter. These stakes hold a value of over $4.27 billion in total.7. PepsiCo, Inc. (NASDAQ:PEP)Number of Hedge Fund Holders: 64With a dividend growth track record spanning over 52 years, PepsiCo, Inc. (NASDAQ:PEP) is next on our list of the best dividend stocks. The American beverage and snack company offers a quarterly dividend of $1.265 per share and has a dividend yield of 3.10%, as of March 10. The company has also announced a yearly dividend of $5.42 per share, marking a 7.1% rise from the previous dividend of $5.06 per share. This increase will take effect for the dividend anticipated to be distributed in June 2024.As of the end of Q4 2023, 64 hedge funds in Insider Monkey's database reported having stakes in PepsiCo, Inc. (NASDAQ:PEP), compared with 65 in the previous quarter. The total value of these stakes is over $4.55 billion. Among these hedge funds, Fundsmith LLP was the company's leading stakeholder in Q4.6. Amgen Inc. (NASDAQ:AMGN)Number of Hedge Fund Holders: 69Amgen Inc. (NASDAQ:AMGN) ranks sixth on our list of the best dividend stocks from the NASDAQ Composite. The multinational biopharmaceutical company has been growing its dividends for the past 11 years and currently offers a quarterly dividend of $2.25 per share. The stock's dividend yield on March 10 came in at 3.29%.Amgen Inc. (NASDAQ:AMGN) remained popular among elite funds at the end of Q4 2023, with 69 hedge funds investing in the company, up from 60 in the previous quarter. The stakes held by these funds are worth nearly $1.8 billion in total. Click to continue reading and see 5 Best NASDAQ Dividend Stocks To Buy.  Suggested articles:Wall Street Picked These 13 AI Stocks for 202412 Most Undervalued Biotech Stocks To Buy According To Hedge Funds13 Best Stocks To Buy and Hold ForeverDisclosure. None. 15 Best NASDAQ Dividend Stocks To Buy is originally published on Insider Monkey.

Insider Monkey

15 Best NASDAQ Dividend Stocks To Buy

https://finance.yahoo.com/news/15-best-nasdaq-dividend-stocks-120247625.html

7e47865a-4523-31c5-999a-2987c940211e

ADSK

Analysts on Wall Street project that Autodesk (ADSK) will announce quarterly earnings of $1.95 per share in its forthcoming report, representing an increase of 4.8% year over year. Revenues are projected to reach $1.43 billion, increasing 8.6% from the same quarter last year.The consensus EPS estimate for the quarter has undergone a downward revision of 0.8% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.Given this perspective, it's time to examine the average forecasts of specific Autodesk metrics that are routinely monitored and predicted by Wall Street analysts.The average prediction of analysts places 'Net Revenue- Subscription' at $1.33 billion. The estimate indicates a change of +9.3% from the prior-year quarter.The consensus estimate for 'Net Revenue- Maintenance' stands at $11.67 million. The estimate suggests a change of -16.7% year over year.Based on the collective assessment of analysts, 'Net Revenue- Other' should arrive at $90.78 million. The estimate points to a change of +0.9% from the year-ago quarter.Analysts' assessment points toward 'Net Revenue- Total subscription and maintenance revenue' reaching $1.34 billion. The estimate indicates a year-over-year change of +9%.The collective assessment of analysts points to an estimated 'Net revenue by product family- M&E (Media and Entertainment)' of $73.22 million. The estimate indicates a year-over-year change of -1.1%.Story continuesAnalysts forecast 'Net Revenue by Product Type- Other' to reach $91.98 million. The estimate points to a change of +299.9% from the year-ago quarter.Analysts predict that the 'Net revenue by product family- AEC (Architecture, Engineering and Construction)' will reach $665.70 million. The estimate suggests a change of +10.6% year over year.The consensus among analysts is that 'Net Revenue by Product Type- Make' will reach $135.19 million. The estimate suggests a change of +13.6% year over year.It is projected by analysts that the 'Net Revenue by Product Type- Design' will reach $1.21 billion. The estimate suggests a change of +8.6% year over year.The combined assessment of analysts suggests that 'Net revenue by product family- MFG (Manufacturing)' will likely reach $264.46 million. The estimate indicates a year-over-year change of +2.9%.According to the collective judgment of analysts, 'Net revenue by product family- AutoCAD and AutoCAD LT' should come in at $395.26 million. The estimate suggests a change of +9.2% year over year.Analysts expect 'Billings' to come in at $1.64 billion. Compared to the current estimate, the company reported $2.12 billion in the same quarter of the previous year.View all Key Company Metrics for Autodesk here>>>Shares of Autodesk have demonstrated returns of +1.6% over the past month compared to the Zacks S&P 500 composite's +4.7% change. With a Zacks Rank #4 (Sell), ADSK is expected to lag the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks 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 reportAutodesk, Inc. (ADSK) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Curious about Autodesk (ADSK) Q4 Performance? Explore Wall Street Estimates for Key Metrics

https://finance.yahoo.com/news/curious-autodesk-adsk-q4-performance-141557140.html

1e8140ad-fa29-390f-9dcc-71d21bdbea3d

ADSK

Earnings season is winding down but that means we still have many of the retailers, who usually report at the end of earnings season, and some large cap technology companies yet to report.It’s not a quiet week for earnings. There are dozens of companies that are expected to report including big box retailers like Macy’s, Target and Lowe’s.But what about the red-hot companies?These five companies have great earnings surprise track records, including one that is perfect over the last 5 years. It’s not easy to beat every quarter, or nearly every quarter, for years especially in the middle of a pandemic.They are already breaking out to new highs and are up big in the last year. Will another beat push them even higher?This Week’s 5 Red-Hot Earnings Charts1.    Urban Outfitters, Inc. (URBN)Urban Outfitters operates Urban Outfitters, Anthropologie and Free People retail brands. It has beat 4 quarters in a row.Shares of Urban Outfitters have surged 71% over the last year and have busted out to new all-time highs. Yet it trades with a forward P/E of just 12.8. That makes it a value stock.Is Urban Outfitters too hot to handle this earnings season?2.    The TJX Companies, Inc. (TJX)The TJX Companies operates three big brands in the United States, including TJMaxx, Marshall’s and Home Goods. It has a great earnings surprise track record with 7 earnings beats in a row.Shares of The TJX Companies are up 29% over the last year and have busted out to new all-time highs. It’s not cheap, with a forward P/E of 24.Will The TJX Companies beat again this week?3.    Salesforce, Inc. (CRM)Salesforce has not missed on earnings in 5 years. That’s impressive at any time but certainly during a pandemic it’s even more so.Shares of Salesforce are up 80% over the last year but it is not quite back to 2021 highs. Salesforce is now trading with a forward P/E of 30.Story continuesWill Salesforce beat again and keep its perfect earnings record intact?4.    Autodesk, Inc. (ADSK)Autodesk has a great earnings surprise record with just 1 miss in the last 5 years and it was before the pandemic hit, in 2019. That’s impressive.Shares of Autodesk are up 33.4% in the last year. It’s not cheap. Autodesk now trades with a forward P/E of 32.Will Autodesk extend its earnings beat streak this week?5.    Dell Technologies Inc. (DELL)Dell Technologies has beat 7 quarters in a row and has only missed once in the last 5 years. What a great earnings surprise track record.Shares of Dell Technologies have soared 123% over the last year. But it’s still cheap, with a forward P/E of 12.7.Is Dell Technologies too hot to handle?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 reportSalesforce Inc. (CRM) : Free Stock Analysis ReportThe TJX Companies, Inc. (TJX) : Free Stock Analysis ReportDell Technologies Inc. (DELL) : Free Stock Analysis ReportUrban Outfitters, Inc. (URBN) : Free Stock Analysis ReportAutodesk, Inc. (ADSK) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

This Week's 5 Red-Hot Earnings Charts

https://finance.yahoo.com/news/weeks-5-red-hot-earnings-003500851.html

6b28bd7e-deb9-320e-8054-01f1e94c76cd

ADSK

In this article, we will take a look at the top 10 alternatives to Adobe Creative Cloud in 2024. If you want to skip our detailed analysis, you can go directly to Top 5 Alternatives To Adobe Creative Cloud in 2024.Create Images with MidjourneyArtificial Intelligence has completely altered the design landscape. Midjourney was launched in 2022 and is a leading free image generator backed by artificial intelligence. Users simply need to provide text prompts and can receive high quality images for free. The platform is a self funded initiative, led by a team of 11 people. Despite its scale, Midjourney has gained immense recognition across the globe.On November 6, 2023, Midjourney released an interesting update called the "Style Tuner." The Style Tuner is valuable for businesses and brands aiming to maintain a consistent brand image in all their creations. Individuals can use the tool to develop a unique visual style and apply it to all the images they generate hereafter. Such results in images having the same undertones and themes. With the launch of the Style Tuner, users no longer have to repeat instructions in their prompts. This saves immense time for organizations and business owners. You can also take a look at the most promising artificial intelligence stocks.Is Adobe Another Word for Creative Design?Adobe Inc. (NASDAQ:ADBE) is a prominent name in the software industry. The company specializes in the provision of software for marketing, advertising, digital media, publishing, and the digital experience. The Adobe Creative Cloud is a prominent feature of Adobe Inc. (NASDAQ:ADBE). It was launched in 2013 and provides users with access to several software for graphic designing, video editing, web development, and photography. Some of the prominent applications within the Adobe Creative Cloud include Adobe Photoshop, Adobe Premiere Pro, Adobe Illustrator, Adobe Express, Adobe Firefly, Adobe Acrobat, and Adobe Lightroom. Individuals can access all the apps in the Creative Cloud for $59.99 per month. Organizations can acquire all the applications in the Creative Cloud along with business features for $89.99 per month. Large organizations, on the other hand, can acquire a customized package for their business needs.Story continuesAdobe Inc. (NASDAQ:ADBE) ensures that it appeals to the masses by keeping up with changing trends and marketing needs. On February 13, Adobe Inc. (ADBE) announced that the company forged an integration with TikTok's Creative Assistant to create top-notch digital content. The Creative Assistant is integrated into Adobe Express allowing brands to brainstorm, develop, execute, create, and publish content directly to TikTok. According to TikTok, 74% of viewers think that content is more appealing when it is optimized for the specific platform. The add-on helps creators save time, as they can directly publish content without having to leave Adobe Express.On March 7, Adobe Inc. (NASDAQ:ADBE) launched the new Adobe Express mobile application integrated with Adobe Firefly's generative artificial intelligence and mobile editing functionalities. The mobile application is available on Android and iOS. Content creators can easily create eye-catching social media posts, flyers, and posters on the mobile application. Additionally, creators can schedule posts for Instagram and TikTok directly through the application. Key features include text-to-image, generative fill, text effects, editing, scheduling, and collaboration capabilities. Users can also gain access to video templates, multipage templates, fonts, stock videos, and design assets.The Role of Software Giants in Creative DesignAlphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Autodesk, Inc. (NASDAQ:ADSK) are among the few tech giants that also offer design tools. Let's read some recent updates and offerings from these companies. You can also take a look at the most creative companies in the world.The Google Web Designer by Alphabet Inc. (NASDAQ:GOOG) is software for business use only. The tool allows businesses to create videos, develop images, and curate HTML5-based designs. These designs can run on all kinds of devices. The software offers animations and interactive elements to develop content in line with a company's brand voice and target market. Business owners can benefit by integrating classic Google products into their creative hub to enhance workflow. Users can develop 3D content, pick templates from the template library, tailor ads and content, and develop device-responsive ads. The platform makes animation easier as editors have the freedom to create content in layers. Designers can also curate content in a single layer using Quick Mode.Microsoft Corporation (NASDAQ:MSFT) is another great option for people looking to acquire top-notch design tools. Some of the most prominent design tools by Microsoft Corporation (NASDAQ:MSFT) include Clipchamp and Microsoft Designer. Clipchamp is a video editor for Windows. The platform is used by several segments including educators, businesses, and gamers. Users can choose from a wide variety of video templates, and also edit and crop existing videos. Users may use AI to enhance video voiceover, improve content copy, and apply filters and special effects. The Microsoft Designer is an innovative tool that helps individuals or businesses design appealing social media posts, invitations, digital postcards, and graphics. Users can generate images using artificial intelligence and choose from a range of templates available.Autodesk, Inc. (NASDAQ:ADSK) is a leading software company specializing in the production of design, engineering, and entertainment technology solutions. Autodesk, Inc. (NASDAQ:ADSK) offers a range of 3D design programs that help people visualize and design all kinds of products and prototypes. Some of the prominent programs by the company include AutoCAD LT, AutoCAD, Revit, and Civil 3D. These tools help users draw, draft, and document all kinds of items. The company also offers a generative design tool. Designers only need to provide the system with goals, parameters of design, methods, and projected costs. Once input is provided, the system then extracts a range of solutions and alternatives. After repeated interactions with designers, the system learns what the ideal design solution looks like.Now that we have deeply studied the major players in the creative design industry, without further ado, let's discuss the top 10 alternatives to Adobe Creative Cloud in 2024. You can also read our piece on the top digital marketing companies and agencies in the world.Top 10 Alternatives To Adobe Creative Cloud in 2024Adobe, softwareOur MethodologyTo come up with the top 10 alternatives to Adobe Creative Cloud in 2024, we employed a consensus approach. We consulted more than 10 rankings on the internet to aggregate the top alternatives to Adobe Creative Cloud. Of them, we picked items that appeared in 50% of our sources. We then ranked our items based on the average customer star rating and total number of reviews across four sources including G2, Capterra, GetApp, and TrustRadius. It is to be noted that we only included software with total reviews of more than 1,000 and a customer star rating of at least 4.0. Our list of the top 10 alternatives to Adobe Creative Cloud in 2024 is in ascending order of the average customer star rating as a primary metric, and the total number of reviews as a secondary metric.Top 10 Alternatives To Adobe Creative Cloud in 202410. GIMPAverage Customer Star Rating: 4.27Total Number of Reviews: 5,816GNU Image Manipulation Program, commonly referred to as GIMP, ranks 10th on our list of the top alternatives to Adobe Creative Cloud. GIMP is a free and open-source cross-platform. It has a customizable interface, advanced photo enhancement, digital retouching, and hardware support.9. InkscapeAverage Customer Star Rating: 4.40Total Number of Reviews: 1,859Inkscape is a free and open-source software, contributing to its position on our list of the top 10 alternatives to Adobe Creative Cloud in 2024. Users can create vector imagery for cartoons, clip art, logo designing, typography, diagramming, and flowcharting. Inkscape has an average customer star rating of 4.4.8. VismeAverage Customer Star Rating: 4.42Total Number of Reviews: 2,328Visme is an all-in-one marketing and design platform. The software integrates artificial intelligence to enhance the functionality of its business. The platform is used by more than 27.3 million marketers and communicators from across the globe. The software allows team members to collaborate by leaving comments in real-time, answering questions, providing feedback, and tagging.7. CorelDRAWAverage Customer Star Rating: 4.43 Total Number of Reviews: 6,749CorelDRAW is another great alternative to Adobe Creative Cloud. CorelDRAW allows users to play around with vector graphics. The CorelDRAW for enterprise allows users to design in collaboration. The platform offers real-time annotation tools and enables members to engage in live discussion and feedback. Businesses can either acquire the yearly plan of $439 per annum or make a one-time purchase of $859. The annual plan is also available as a monthly subscription for $36.58 per month.6. PixlrAverage Customer Star Rating: 4.47Total Number of Reviews: 1,205Pixlr ranks sixth on our list of the top alternatives to Adobe Creative Cloud in 2024. The cloud-based image editing tool allows team members to edit and share photos at the same time. For $12.99 a month, organizations can acquire the Pixlr Team. The package comes with unlimited saves, 5 premium seats, and 1,000 monthly AI credits.Click to continue reading and see Top 5 Alternatives To Adobe Creative Cloud in 2024.Suggested articles:25 Countries with Highest Crude Oil Production in 202420 Best Places to Live in Texas in 202420 Biggest Oil Producers in the WorldDisclosure: None. Top 10 Alternatives To Adobe Creative Cloud in 2024 is originally published on Insider Monkey.

Insider Monkey

Top 10 Alternatives To Adobe Creative Cloud in 2024

https://finance.yahoo.com/news/top-10-alternatives-adobe-creative-113106895.html

d799f7e9-e3d0-329f-9806-a6cfba5c9c63

ADSK

In this article, we will look at the top 12 companies for architects in United States. We have also discussed the global architecture market. If you want to skip our detailed analysis, head straight to the Top 5 Companies for Architects in United States. The global architectural services market witnessed remarkable growth, surging from USD 360.8 billion in 2022 to a projected USD 549.6 billion by 2032, reflecting a robust compound annual growth rate (CAGR) of 4.3% over the forecast period. In 2022, the Asia Pacific region accounted for approximately 37% of the revenue share, confirming its significant presence in the market. Notably, construction and project management services dominated, contributing over 34.5% to the revenue share in the same year, while urban planning services exhibited a commendable CAGR of 6.5% from 2023 to 2032.Architectural services encompass a spectrum of activities, including designing, planning, and project management, essential for various industries' infrastructure development. Rapid urbanization, particularly in developing nations like India and Brazil, has propelled the demand for architectural services, with projects ranging from residential buildings to industrial complexes. Moreover, the integration of advanced technologies like 3D painting and digital advancements has further fueled market growth, offering innovative solutions and enhanced visualization for infrastructure development.According to BLS, the median pay for architects in 2022 stood at $82,840 per year or $39.83 per hour. Entry-level education typically required a bachelor's degree with no prior work experience necessary. On-the-job training  is common for the professionals and typically includes internships or residencies. In 2022, there were 123,700 architect positions, with a projected job outlook of 5% growth from 2022 to 2032. This growth is expected to result in 6,000 additional jobs in the field over the same period.Story continuesIn the US, architects predominantly secure employment in Architectural, Engineering, and Related Services, with 93,450 jobs, constituting 5.89% of industry employment and an annual mean wage of $96,310. Residential Building Construction and Nonresidential Building Construction follow, offering 2,020 (0.22%) and 1,670 (0.20%) jobs respectively, with mean wages of $39.71 ($82,610 annually) and $46.71 ($97,150 annually) per hour. The Federal Executive Branch also employs 1,540 architects, offering a higher mean wage of $50.68 hourly or $105,410 annually.Geographically, California leads with 17,370 architect positions, followed by New York (10,370) and Texas (7,020), with hourly mean wages of $53.95 ($112,210 annually), $49.58 ($103,130 annually), and $43.72 ($90,940 annually) respectively. The District of Columbia boasts the highest concentration of architect jobs with 1,770 positions, offering an hourly mean wage of $56.25 ($116,990 annually). To read more about architects, see the highest paying countries for architects. Owing to the increasing technological developments in the industry, Autodesk Inc (NASDAQ:ADSK) provides a range of software solutions tailored to the needs of architects, enabling them to streamline their design processes and bring their visions to life. Through Autodesk Inc (NASDAQ:ADSK)’s suite of tools like AutoCAD, Revit, and BIM 360, architects can efficiently create detailed designs, collaborate with team members in real-time, and manage projects effectively. AutoCAD, for instance, offers precise drafting and documentation capabilities, allowing architects to produce accurate drawings and blueprints. On the other hand, Autodesk Inc (NASDAQ:ADSK)’s Build offers architects a comprehensive solution to address the challenges of fragmented project workflows. By centralizing all project data including models, drawings, issues, specifications, RFIs, and more in a cloud-based platform, Autodesk Inc (NASDAQ:ADSK)’s Build ensures easy access and intelligent insights throughout the project lifecycle. This eliminates the need for multiple point solutions and promotes collaboration among team members, owners, and other stakeholders. Moreover, Autodesk Build simplifies administrative tasks for architects by integrating construction administration responsibilities such as submittals, RFIs, and punch lists within the same platform. This eliminates manual data transfers and ensures consistency across project documentation. With automated workflows and real-time tracking capabilities, architects can efficiently manage RFIs, submittals, and punch lists, ultimately improving project outcomes and client satisfaction. Additionally, Autodesk Inc (NASDAQ:ADSK)’s Build empowers architects to leverage data analytics to identify and mitigate risks early in the project, optimize workflows, and enhance overall business performance.Top 12 Companies for Architects in United StatesAerial view of a suburban home under construction, displaying its modern architecture.Our MethodologyTo list the top companies for architects in the United States, we looked at the largest architecture firms in the US by revenue and relied on architecturalrecord for the top 25 architecture companies in the US. Then, we acquired the average architect salary for these companies on Glassdoor.com. The list is presented in an ascending order of average potential salaries of architects working for these firms in the US.  By the way, Insider Monkey is an investing website that uses a consensus approach to identify the best stock picks of more than 900 hedge funds investing in US stocks. The website tracks the movement of corporate insiders and hedge funds. Our top 10 consensus stock picks of hedge funds outperformed the S&P 500 stock index by more than 140 percentage points over the last 10 years (see the details here). So, if you are looking for the best stock picks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.12. Page Southerland Page, IncAverage Salary: $83,000Page, a multidisciplinary design firm, has recently expanded its New York presence by partnering with Davis Brody Bond, renowned for projects like the National September 11 Memorial Museum. The decision aims to capitalize on their collaborative success in notable ventures like the US Embassy in Kosovo. Steven M. Davis of Davis Brody Bond highlights the opportunity for innovation in architecture. It is one of the top 50 architecture firms in the world.11. Stantec Inc Average Salary: $91,000Stantec Inc (NYSE:STN) has secured a key project to design a £4 billion ($5.08 billion) gigafactory in Somerset, UK, for Agratas, Tata Group's global battery business. This project confirms Stantec Inc (NYSE:STN)’s reputation in providing integrated design services, including architectural and MEP design. The gigafactory is set to create up to 4,000 on-site jobs and additional opportunities in the supply chain, marking a substantial investment in the UK automotive and manufacturing sectors. With over 26,000 employees operating across more than 400 locations globally, Stantec Inc (NYSE:STN) boasts a vast network of expertise. Its ability to secure high-profile projects like the Agratas gigafactory showcases its capability to deliver innovative and sustainable design solutions on a large scale. Hence, it is also one of the best companies to work as an architect.10. Corgan Associates IncAverage Salary: $96,000Corgan Associates, Inc is a leading American architecture and design firm based in Dallas, Texas. As the fourth-largest architecture firm in the US, it has a key global presence and revenue. In 2022, Corgan reported a revenue of $331.18 million, employing over 900 professionals spread across 16 offices worldwide.9. HDR ArchitectureAverage Salary: $96,500HDR, an innovative architecture, engineering, and planning firm, boasts 11,000 employees across 250 sites. They have a global network that facilitates real-time collaboration, enabling them to tackle global challenges. Recognized internationally, HDR ranks second in the World Architecture Survey, with six sectors in the top ten. Hence, it is one of the top 10 architecture firms in the world.To read more about architects, see countries that produce the best architects in the world. 8. AECOM (NYSE:ACM)Average Salary: $99,000AECOM (NYSE:ACM)’s Architecture division has over 2,500 architects across 300+ global offices, driving innovation through holistic, inclusive design processes. Their expertise spans strategic planning to project realization, delivering lasting value and sustainable outcomes. Committed to environmental responsibility, AECOM (NYSE:ACM) focuses on reducing carbon impact and designing for climate adaptation. Moreover, capitalizing on cutting-edge technology, their digitally advanced approach optimizes building performance. With a portfolio spanning diverse sectors and recognized with over 10,000 awards, their transformative designs redefine skylines worldwide. It is one of the top residential architecture firms in the US. 7. HOK Group, Inc Average Salary: $99,500With a global footprint spanning 26 offices across three continents, HOK's 1,600-strong team collaborates seamlessly to tackle the most pressing architectural challenges of our time. From iconic skyscrapers to sustainable urban developments, HOK's forward-thinking architects blend creativity with technical expertise, creating spaces that inspire and endure. 6. Perkins EastmanAverage Salary: $103,863Perkins Eastman is a globally recognized firm specializing in architecture, interior design, urban design, planning, landscape architecture, graphic design, and project management. Established in New York City, it is spearheaded by its founding Principals Bradford Perkins and Mary-Jean Eastman. It is one of the biggest architecture companies in the US.It is worth noting that Perkins Eastman's 20-year master plan for Rochester, MN, executed halfway through with the Destination Medical Center (DMC), is reshaping the city around Mayo Clinic. The plan integrates public spaces, streetscapes, and squares to connect Mayo's facilities with the community, aiming to transform Rochester into a vibrant, walkable urban environment. Key districts like the Heart of the City and Discovery Square have already witnessed significant enhancements, fostering innovation and attracting businesses. Upcoming developments include revitalizing the downtown waterfront and creating a new transit hub with Central Park. The DMC's success is evident in exceeding private investment goals, job creation, and downtown residency doubling. This long-term vision is driving Rochester's evolution into a dynamic urban center, energized by collaboration between public and private stakeholders, and promising sustained growth for generations to come.Perkins Eastman is also one of the top commercial architecture firms in USA.Click here to see the Top 5 Companies for Architects in United States.Suggested Articles:16 Countries That Produce the Best Architects in the World15 Highest Paying Countries for Architects20 Countries With The Best ArchitectureDisclosure: None. Top 12 Companies for Architects in United States is originally published on Insider Monkey.

Insider Monkey

Top 12 Companies for Architects in United States

https://finance.yahoo.com/news/top-12-companies-architects-united-183334262.html

b4343a93-450c-39c9-ba17-b04b6f080653

AEE

Ameren (NYSE:AEE) Full Year 2023 ResultsKey Financial ResultsRevenue: US$7.50b (down 2.1% from FY 2022).Net income: US$1.15b (up 7.3% from FY 2022).Profit margin: 15% (up from 14% in FY 2022). The increase in margin was driven by lower expenses.EPS: US$4.38 (up from US$4.16 in FY 2022).earnings-and-revenue-growthAll figures shown in the chart above are for the trailing 12 month (TTM) periodAmeren Revenues DisappointRevenue missed analyst estimates by 7.2%. Earnings per share (EPS) was mostly in line with analyst estimates.Looking ahead, revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Integrated Utilities industry in the US.Performance of the American Integrated Utilities industry.The company's shares are up 3.0% from a week ago.Risk AnalysisYou should learn about the 2 warning signs we've spotted with Ameren (including 1 which is a bit concerning).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.

Ameren Full Year 2023 Earnings: Revenues Disappoint

https://finance.yahoo.com/news/ameren-full-2023-earnings-revenues-133234522.html

e50ed09a-94f6-3071-b98e-7ba0c34b52fd

AEE

Ameren Corporation (NYSE:AEE) Q4 2023 Earnings Call Transcript February 23, 2024Ameren 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: Greetings, and welcome to Ameren Corporation's Fourth Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Andrew Kirk, Director of Investor Relations and Corporate Modelling for Ameren Corporation. Thank you, Mr. Kirk. You may begin.Andrew Kirk: Thank you, and good morning. On the call with me today are Marty Lyons, our Chairman, President, Chief Executive Officer; and Michael Moehn, our Senior Executive Vice President and Chief Financial Officer; as well as other members of the Ameren management team. This call contains time-sensitive data that is accurate only as of the date of today's live broadcast and redistribution of this broadcast is prohibited. We have posted a presentation on the amereninvestors.com homepage that will be referenced by our speakers. As noted on Page 2 of the presentation, comments made during this conference call may contain statements about future expectations, plans, projections, financial performance and similar matters, which are commonly referred to as forward-looking statements.Please refer to the forward-looking statements section in the news release we issued yesterday as well as our SEC filings for more information about the various factors that could cause actual results to differ materially from those anticipated. Now here's Marty, who will start on Page 4.Marty Lyons: Thanks, Andrew. Good morning, everyone, and thank you for joining us today. Beginning on Page four, our strategic plan highlights our steadfast commitment to providing safe and reliable energy in a sustainable manner. We do this by investing in rate-regulated infrastructure, enhancing regulatory frameworks and advocating for responsible energy policies, while optimizing operating performance through ongoing continuous improvement in order to keep rates affordable. Our strong 2023 operating and financial results, which we will cover today, reflect execution on our key business objectives for the year, which will continue to create value for our customers, communities, shareholders and the environment in the years ahead.Story continuesI'd like to express appreciation for my Ameren coworkers' unwavering commitment to our strategy. Turning to Page five, this page summarizes our strong sustainability value proposition. Our operations and investments in 2023 made the energy grid safer, smarter, cleaner, more reliable and resilient, supporting thousands of jobs in our local communities in Missouri and Illinois, and driving a positive impact on the economies of each state. In the process, we helped hundreds of local, small and diverse businesses grow, and we gave back to numerous charitable organizations to help our neighbors in need. For example, last year, almost 60% of our total sourceable spend was with suppliers in our Missouri and Illinois communities, while 26% was with local small and diverse suppliers, creating jobs and economic growth and contributing to thriving communities in the areas where we operate.The positive impact of our investments was reinforced by our top quartile reliability performance in 2023, as measured by the frequency of outages. At the same time, our Ameren supplied residential customer rates, on average, were below the Midwest average. Today, we published our updated sustainability investor presentation called, Leading the Way to a Sustainable Energy Future, available at amereninvestors.com. I encourage you to take some time to read more about our strong sustainability value proposition. Turning to Page six. When I reflect on the business objectives we laid out at the start of 2023, I am pleased to say that we made some great strides in each of our three strategic pillars. That said, we did not achieve the results expected in our Illinois gas and electric regulatory proceedings.On Page seven, we lay out our key strategic accomplishments for 2023 in more detail. This past year, we invested $3.6 billion in infrastructure, spread strategically across our business segments, in order to improve service for our customers. These investments are needed to reduce the frequency and duration of outages in the face of volatile weather events, such as this past summer, when we experienced the most impactful storms in the last 10 years. Ameren, Illinois' work in restoring power to nearly 200,000 customers in the wake of the June 29, 2023 derecho was recognized with an Emergency Response Award by the Edison Electric Institute at its recent Winter Membership Meeting and there's plenty more work to be done to address aging infrastructure and make the grid stronger and smarter, while supporting the clean energy transition, making it truly an exciting time to be in the utility industry.Of course, every utility's ability to invest must be supported by constructive regulation, which brings me back to our regulatory developments in the fourth quarter. The State of Illinois has ambitious energy transition goals, goals which we continue to work collaboratively with stakeholders to support. Of course, achieving these goals will require significant sustained investment in the state's energy infrastructure in the coming decades. In 2023, Ameren, Illinois filed plans with the Illinois Commerce Commission, or ICC, to incorporate proposed investments in critical electric and natural gas infrastructure into prospective rates. Unfortunately, the ICC decisions in both the electric and natural gas rate reviews late last year were disappointing, reducing cash flows available for investment and delaying needed investments in energy infrastructure.We will continue working with stakeholders on a path forward to approval of an electric grid investment plan, revised revenue requirements incorporating ongoing and prospective investments, and an improved overall regulatory environment. We must work to build a stronger understanding that consistent, constructive regulatory environments are required to attract investment, support energy infrastructure development, economic expansion and jobs. Michael will cover the electric multiyear rate plan and the natural gas orders in more detail in a moment. Moving to Ameren, Missouri; in November, Ameren, Missouri filed a petition with the Missouri PSC, seeking approval to securitize the unrecovered investment in and costs associated with the planned fall 2024 retirement of our Rush Island Energy Center.The securitization is expected to result in significant savings for our customers when compared with cost recovery under traditional rate making. We, of course, recognize the importance of keeping our customers' bills as low as possible, while investing to improve service, which leads me to the third pillar of our strategy, optimizing operating performance. In 2023, our operations and maintenance expenses declined by 4% year-over-year. We automated and streamlined many of our finance, supply chain and customer service and workforce processes and we continue to drive new efficiencies in our field work through deployment of smart meters, work management systems and distribution automation. Notably, our Missouri customer rates have only increased 1.8% compounded annually since the smart energy plan legislation took effect in April 2017, with our Missouri residential customer rates consistently remaining 25% or more below the Midwest average.For our shareholders, yesterday we announced 2023 earnings of $4.38 per share compared to earnings of $4.14 per share in 2022. The result was above the midpoint of our original earnings per share guidance range of $4.35 per share. On a weather normalized basis, 2023 earnings results represent a 10% increase year-over-year. Turning to Page eight; here, you can see we have delivered consistent superior value to our shareholders for the past decade. Since 2013, our weather normalized core earnings per share have risen at an approximate 7.8% compound annual growth rate, while our annual dividends paid per share have increased approximately 58% over the same time period. This drove a strong total return of 173% for our shareholders from 2013 to 2023, which was significantly above our utility peer average.This track record of strong and consistent performance gives me conviction regarding our business strategy and rest assured, we are not looking back. We are focused on the objectives ahead. Moving to Page nine; we turn our focus to the current year. We expect 2024 to be another busy year and it hit the ground running. Notably, we will maintain our focus on strategic infrastructure investment for the benefit of our customers, while working hard to reduce operating costs and improve the regulatory environments in which we operate. We expect to invest approximately $4.4 billion in electric, natural gas and transmission infrastructure to bolster safety, security, reliability, resiliency and further the clean energy transition in a responsible fashion.This represents an increase of 22% from the prior year. Our plan includes approximately $1 billion of investment in new generation this year with new solar facilities expected to be in service by year end. The investment plans are aligned with our regulatory outcomes and expectations associated with each of our business segments. We also have several opportunities to enhance our regulatory and legislative environments in the year ahead. Next week, Ameren, Illinois will file a hearing testimony requesting to update 2024 through 2027 rates for 2023 yearend rate base and a base level of grid reliability investments. Then in March, Ameren, Illinois will file its revised multi-year grid plan with the ICC to address the commission's findings stated in their December order.An updated rate plan will also be filed to incorporate revised investment plans. Concurrently, we are evaluating all appropriate options to better align prospective regulatory outcomes with the goal of making progress on a reliable clean energy transition in an affordable fashion. We will work with all impacted stakeholders to advocate for constructive regulatory frameworks across our Illinois businesses, which will better support the state's energy transition goals. At Ameren, Missouri, we'd look to obtain approval to securitize the Russia Island energy center and advocate for Certificates of Convenience and Necessity or CCNs for future renewable and dispatchable generation, consistent with the integrated resource plan filed in September. The plan calls for investment in new dispatchable energy resources, including an on-demand 800 megawatt gas simple cycle energy center by 2027, which could be turned on as needed in a matter of minutes to ensure reliability of the energy grid during periods of peak energy demand.In January, we filed a request for the air permit for this simple cycle plant, Castle Bluff Energy Center to be located on the site of our retired Merrimack Energy Center. Utilizing this site, will keep construction costs down, bring back jobs and provide additional tax revenue for the surrounding region. We expect to file for CCN approval with the Missouri PSE later this year. We will also continue to support the analysis and approval of potential MISO tranche 2 transmission projects that will serve the needs of the Midwest region, improving the grid's ability to integrate renewable resources efficiently and effectively. Given the importance of dispatchable generation to reliability, we are advocating for improved Missouri regulatory treatment for generation investments, akin to the treatment afforded other investments in electric infrastructure in the state.Further on the legislative front in both Missouri and Illinois, we are advocating for Right of First Refusal -- Right of First Refusal Legislation to support the timely construction of transmission resources needed for system reliability and efficiency and to maximize customer benefits. Shifting our focus to operations, as we identify ways to continuously improve our business, we're focused on maintaining disciplined cost management to hold operations and maintenance expenses flat in 2024 to 2023 levels. Moving now to Page 10; yesterday afternoon, we announced that we expect our 2024 earnings to be in a range of $4.52 to $4.72 per share. Based on the midpoint of this range, this represents 6.2% earnings per share growth compared to the midpoint of our original 2023 guidance range of $4.35 per share.Michael will provide you with more details on our 2024 guidance a bit later. We expect to deliver 6% to 8% compound annual earnings per share growth from 2024 through 2028, using the midpoint of our 2024 guidance of $4.62 per share as the base. At this time, we expect earnings growth to trend below the midpoint of our range until the outlook in Illinois improves or the impacts of other growth opportunities are realized. That being said, we continue to have an outstanding portfolio of investment opportunities across our business segments, totalling more than $55 billion over the next 10 years and a strong balance sheet, which provide us potential earnings growth levers that warrant maintaining a guidance range with up to 8% growth. Our dividend is another important element of our strong total shareholder return proposition.Earlier this month, Ameren's board of directors approved a quarterly dividend increase of 6.3%, resulting in an annual dividend rate of $2.68 per share. This represents the 11th consecutive year that we have raised the dividend and reflects confidence by Ameren's board of directors in our business outlook and management's ability to execute our strategy. Looking ahead, we expect Ameren's future dividend growth to be in line with our long-term earnings per share growth expectations and within a payout ratio range of 55% to 65%. We expect our weather normalized dividend payout ratio in 2024 to be approximately 58%. Over the last decade, we have gradually lowered our payout ratio, which provides financial flexibility, while executing our robust energy infrastructure investment plans.Turning to Page 11; the strong long-term earnings growth I just discussed is primarily the result of rate-based growth driven by investment in energy infrastructure, made strategically under constructive regulatory frameworks. Today, we are rolling forward our five-year investment plan and as you can see, we expect to grow our rate base in an 8.2% compound annual rate for 2023 through 2028. This plan represents an increase of $2.2 billion compared to the $19.7 billion five-year plan for 2023 through 2027 that we laid out last February. The plan includes investment in renewables and simple cycle gas generation consistent with Ameren Missouri's integrated resource plan and because of the ICC's orders late last year, our capital plan for Ameren Illinois investments has been reduced by approximately $400 million from 2024 through 2027 compared to our prior five-year plan.We expect that this level of investment, which we expect will provide safe and adequate service as well as meet compliance requirements under the Climate and Equitable Jobs Act will ultimately be approved by the ICC. That said, we continue to believe that a higher level of investment supported by a more constructive return on capital investment would be in the best interest of our customers and communities and we will continue our advocacy. Finally, we remain focused on keeping customer bills as low as possible and improving earned returns in all of our businesses. Moving to Page 12; as we look to the future, our five-year plan is not only focused on delivering strong results through 2028, but it's also designed to position Ameren for success over the next decade and beyond.A view of the power lines passing through the landscape pointing towards a distant industrial facility.The right side of this page shows how our allocation of capital is expected to change over the next five years. Incorporating generation investment opportunities from our latest IRP, we expect our 2028 rate base to reflect our diversified approach for maintaining reliability with renewable generation and dispatchable generation representing 12% and 11% of rate base, respectively. Notably, our coal-fired generation is expected to be just 3% of rate base by the end of 2028. The bottom line is that we are taking steps today across the board to position Ameren to provide safe, reliable, affordable and cleaner energy for the long-term. Moving now to Page 13; our investment plan released today incorporated our intentions to invest over time in significant renewable and dispatchable resources as laid out in our Ameren, Missouri IRP.In 2023, we were pleased that Missouri PSC approved CCNs for the Huck Finn and Boomtown solar projects, and in doing so, indicated support for our responsible gradual transition and I'm happy to announce that we reached a stipulation and agreement regarding our next four solar projects, totalling 550 megawatts. These projects will support our lease cost plan for meeting customers' energy needs as we systematically invest to create a diverse mix of generation resources that preserves reliability as we retire our existing coal fleet over the next 20 years. While the Missouri PSC is under no deadline to issue an order on these four project CCNs, we expect a decision in March with these projects expected to go in service between 2024 and 2026. We expect to file additional CCNs consistent with the IRP later this year.Moving to Slide 14; as we've discussed in the past, MISO completed a study outlining a proposed roadmap of transmission projects through 2039. Detailed project planning, design work and procurement for the Tranche 1 projects assigned or awarded to Ameren is underway, and we expect construction to begin in 2026. During 2023, Ameren was awarded the first two competitive Tranche 1 projects, totalling approximately $100 million. Ameren submitted the third and final Tranche 1 competitive bid in October and expects the project to be awarded by June 2024. When awarding the competitive projects to Ameren, MISO noted our sound route design, engineering and cost containment plan, and innovative approach working with stakeholders as key factors in the winning bids.This is indicative of how we plan and develop all transmission projects. We believe our collaborative, customer-centric and community-respectful approach to building and maintaining low-cost projects is why we should be directly assigned these projects in the future in both Missouri and Illinois. MISO expects to approve a set of Tranche 2 long-range transmission projects in the first half of 2024, which will again address Midwest region needs. Turning now to Page 15; looking ahead over the next decade, we have a robust pipeline of investment opportunities of over $55 billion that will deliver significant value to all of our stakeholders by making our energy grid stronger, smarter and cleaner. Of course, our investment opportunities will also create thousands of jobs for our local economies.Maintaining constructive energy policies that support robust investment in energy infrastructure and a transition to a cleaner future in a responsible fashion will be critical to meeting our country's energy needs and delivering on our customers' expectations. Moving to Page 16; discipline cost management and a focus on customer affordability is nothing new to us here at Ameren and we expect 2024 to be another year of disciplined cost control and value realization from continuous improvement initiatives, which Michael will provide more details on in a few minutes. Through innovation and new efficiencies, we continue to target flat operations and maintenance expenses through 2028. Moving to Page 17; to sum up our value proposition, we remain firmly convinced that the execution of our strategy in 2024 and beyond will continue to deliver superior value to our customers, shareholders and the environment.We believe our expectation of 6% to 8% compound annual earnings growth from 2024 through 2028, is driven by strong rate-based growth and supported by a strong balance sheet, compares favourably with our regulated utility peers. I'm confident in our ability to execute our strategy and investment plans across all four of our business segments, as we have an experienced and dedicated team with a track record of execution. Further, our shares continue to offer investors an attractive dividend, and we are positioned well for future dividend growth. Simply put, we believe this results in an attractive, total return opportunity for shareholders. Again, thank you all for joining us today, and I will now turn the call over to Michael.Michael Moehn: Thanks, Marty, and good morning, everyone. Turning now to Page 19 of our presentation; yesterday, we reported 2023 earnings of $4.38 per share, compared to earnings of $4.14 per share in 2022, an increase of approximately 6%. This page summarizes key drivers impacting earnings in each segment, which are largely consistent with what we reported throughout 2023. As Marty noted, when normalized for temperature variations over the past two years, we estimate that our earnings grew 10%. Moving to Page 20, I'll cover our few key developments from the fourth quarter. In November, Ameren Missouri filed for securitization of costs associated with the Rush Island Energy Center as we approach the plan retirement date of October 15, 2024.If approved as requested, Ameren Missouri would be able to refinance and recover approximately $519 million, reflecting the remaining value of the plant and decommissioning costs. Missouri PSC orders are expected in June, 2024. To mitigate the impact of the lost rate base associated with the Rush Island retirement, we expect our Huck Finn and Boomtown solar facilities with an estimated total investment of approximately $650 million to be placed in service near the end of this year. Turning to Page 21, as Marty mentioned, late in 2023, the ICC issued orders under Ameren Illinois Natural Gas and Electric Rate Reviews. In November, the ICC approved $112 million annual base rate increase for natural gas delivery service, which included $77 million that would have otherwise been recovered under letters.The order reflects a 2024 future test year, a 9.44% allowed return on equity, a 50% common equity layer, and a rate base of $2.85 billion. New rates were effective in late November. We filed for a rehearing of this order with the ICC and were denied. So on January 03, Ameren Illinois appealed the ICC decision to the Illinois Fifth District Appellate Court, seeking that the ICC modify the return on equity and certain plant disallowances, among other things. The court is under no deadline to address this appeal. Turning to Page 22, in December, the ICC issued an order in our Ameren Illinois Electric Multi-Year Rate and Grid Plan filings. In its order, the ICC established an alternative revenue requirement based on our 2022 rate base, and is requiring us to refile and provide additional justification for our grid plan.We're in the process of revising our grid plan and we'll file it by the March 13 deadline. We will also revise our multi-year rate plan to incorporate these grid plan revisions. In the meantime, the December order reflects a cumulative increase from 2024 through 2027 of $142 million in revenues. The order approved an allowed return on equity of approximately 8.72% and a 50% equity layer. In January, Ameren Illinois filed for a rehearing of the December order with the ICC. On January 31, the ICC ordered a partial rehearing regarding certain operations and maintenance expenses, use of the 2022 rate base for establishing the revenue requirement for 2024 through 2027, and a base level of grid reliability investments. We expect a decision on these items subject to rehearing by the end of June with new interim rates expected to be effective at the discretion of the commission.Following the ICC's response to our rehearing request, Ameren Illinois also filed an appeal to the Illinois Fifth District Appellate Court on January 31, to address the remaining items which were denied for rehearing, including the return on equity. The court is under no deadline to address this appeal. We remain focused on providing safe and adequate service for our Illinois customers. Moving to Page 23; our overall outlook remains bright as we have a robust pipeline of investment opportunities. Our Ameren Transmission Missouri business lenders continue to benefit from meaningful ongoing investments to work by reliable, constructive regulation. Here we provide an overview of our $21.9 billion of planned capital expenditures for 2024 through 2028 by business segment that supports our consolidated 8.2% compound annual rate-based growth expectations.As you can see on the right side of this page, we're allocating capital consistent with the allowed return on equity under each regulatory framework. Our Ameren Missouri Smart Energy Plan filed today with the Missouri PSC provides more detail on how we strategically invest to replace aging infrastructure with more resilient, reliable equipment to serve our customers. After five years of Smart Energy Plan investments, we are a full year ahead of our initially planned smart meter installation in the state. That said, at our current investment levels, we still have decades of investment needed to address aging distribution substations and overhead and underground lines. You can find additional details on the Smart Energy Plan allocation of our 2024 planned capital investments on Page 32 and Page 33 in the appendix of this presentation.Turning to Page 24, we have outlined here the expected funding sources for the infrastructure investments noted on the prior page. We expect continued growth in cash from operations as investments are reflected in customer rates. We also expect to generate significant tax deferrals driven primarily by the timing difference between financial statement, depreciation reflected in customer rates and the accelerated depreciation for tax purposes. As we sit here today, we do not expect a transferability of solar and wind tax credits materially impact capital funding, nor do we expect the corporate minimum tax to apply during our five-year plan. From a financing perspective, we expect to continue to issue long-term debt to fund a portion of our cash requirements.For us to maintain a strong balance sheet while we fund a robust infrastructure investment plan, we have entered into forward sales agreements for $230 million of common stock issuances under our at-the-market equity distribution program to address most of our 2024 equity needs. We expect to sell these by the end of the year. The only additional equity we expect to issue in 2024 will be approximately $70 million for our dividend reinvestment and employee benefit plans. Incremental equity issues of approximately $600 million each year are planned for 2025 through 2028, a portion of which we expect to be issued through our DRIP and employee benefit plans. The $600 million per year is unchanged from our previous plan outline last February. All of these actions are expected to sustain our strong balance sheet and credit ratings.Moving to Page 25 of our presentation, I would now like to discuss key drivers impacting our 2024 earnings guidance. We expect 2024 diluted earnings per share in the range of $4.52 per share to $4.72 per share. This accommodates a range of outcomes on our ongoing Illinois regular proceedings, along with our typical business risk and opportunities. Detailed by segment as compared to the 2023 results can be found on this page and the next. Beginning with Ameren Missouri, earnings are expected to rise in 2024. Earnings are expected to be favourably impacted by the higher investments in infrastructure that are eligible for PISA and AFDC treatment, as well as new electric service rates effective July 2023. Earnings are also expected to benefit from higher weather normalized kilowatt hour sales to Missouri residential and commercial customers, which are expected to increase by 1% year-over-year in 2024, while sales to industrial customers are expected to increase by 4% year-over-year.These projected increases are driven primarily by customer count growth and General Motors resuming full production levels after a work stoppage in the third quarter of 2023. We also expect to benefit from lower operations and maintenance expenses. And we expect a return to normal weather in 2024 will increase Ameren Missouri earnings by approximately $0.03 compared to 2023 results. These favourable factors are expected to be partially offset by higher interest expense, primarily due to higher long-term debt balances. Moving on, earnings from our FERC regulated electric transmission activities are expected to benefit from additional investments in Ameren, Illinois and ATXI projects made under forward-looking formula rate making. Turning to Page 26; for Ameren Illinois electric distribution, the year-over-year earnings comparison will be impacted by the lower allowed ROE approved by the ICC in the multi-year rate plan versus the 2023 allowed ROE, which was driven by the 30-year treasury rates plus 580 basis points.The allowed ROE is applied to yearend rate base, which includes 2023 rate base and 2024 plan capital additions. For Ameren, Illinois natural gas, earnings will benefit from higher delivery service rates effective November, 2023, incorporating additional infrastructure investments, partially offset by a lower allowed ROE and common equity ratio. Earnings will also benefit from lower operations and maintenance expenses. Moving now to Ameren wide drivers and assumptions; we expect increased weighted average common shares outstanding to unfavorably impact earnings per share. We expect higher interest rate expense in Ameren parent due to increased debt balances. At the end of 2023, we turned out all then outstanding commercial paper balances at Ameren parent through two debt offerings.The first issued in November was $600 million and 5.7% senior unsecured notes due in 2026 and the second in December was $700 million of 5% senior unsecured notes due in 2029. Of course, in 2024, we'll seek to manage all of our businesses to earn as close to our allowed returns as possible. With that in mind, and support our expectation for lower operations and maintenance expenses in our Ameren Missouri and Illinois natural gas businesses, we've instituted several cost saving initiatives in 2024, including a hiring freeze, reducing our contractor and consultant workforce and deferring or eliminating discretionary spend. We'll be strategic about workforce management and continued investment in digital efficiency to allow us to sustain these cost reductions.Before moving on, I'd like to touch on the expected sales growth for our service territory. While we're conservative on our model and we are optimistic about the opportunity for strong economic development in the years ahead. in the last three years, our economic development teams have helped to bring 65 new projects to our communities in Missouri and over 125 projects in Illinois, bringing with an estimated total of over 14,000 jobs. These projects are generally expected to be completed in the next couple of years. With that in mind, we expect weather normalized kilowatt hour sales to be in the range of flat to up approximately 0.5%, compounded annually over a five-year plan, excluding the effects of our new energy efficiency plans, using 2023 as the base year.We exclude the effects because the plan provides rate recovery to ensure that earnings are not affected by reduced electric sales, resulting from our energy efficiency efforts. Turning to Illinois, we expect our weather normalized kilowatt hour sales to be relatively flat to down 0.5% over our five-year plan, driven primarily by increases in energy efficiency and solar adoption. Recall that changes in Illinois electric sales, no matter the cause, do not affect earnings since we have full revenue decoupling. Finally, moving to Page 27, I'll emphasize again that we have a strong team and a long track record of execution. We delivered strong earnings growth in 2023 and expect to continue to deliver 6% to 8% compound earnings per share growth over the next five years, driven by robust rate-based growth and disciplined cost management.We believe this growth will compare favorably with the growth of our peers. Further, Ameren shares continued to offer investors an attractive dividend. In total, we have an attractive total share of return story. That concludes our prepared remarks. We now invite your questions.See also 20 Best Cities to Retire for 2024 and 20 Richest People in Africa in 2024.To continue reading the Q&A session, please click here.

Insider Monkey

Ameren Corporation (NYSE:AEE) Q4 2023 Earnings Call Transcript

https://finance.yahoo.com/news/ameren-corporation-nyse-aee-q4-141430551.html

f6f26244-15a9-33a7-b94c-d76df4319590

AEE

Strengths highlight Ameren Corp's robust rate-regulated business model and commitment to infrastructure investment.Weaknesses underscore the challenges of regulatory dependency and aging infrastructure.Opportunities focus on the potential for growth in renewable energy and favorable regulatory developments.Threats consider the impact of environmental regulations and the evolving energy market dynamics.Warning! GuruFocus has detected 8 Warning Signs with AEE.On February 29, 2024, Ameren Corp (NYSE:AEE) filed its 10-K report, offering a comprehensive view of its financial health and strategic direction. As a rate-regulated utility serving over 2.4 million electricity customers and more than 900,000 natural gas customers across Missouri and Illinois, Ameren Corp's financial stability is underpinned by its essential service offerings and a consistent customer base. The 10-K filing reveals a company with a solid financial foundation, characterized by a steady revenue stream from its regulated operations. The financial tables within the filing indicate a company that has managed to maintain a balance between its revenue growth and expenditure, ensuring a stable financial position. This SWOT analysis delves into the strengths, weaknesses, opportunities, and threats as presented in the latest SEC filing, providing investors with a nuanced understanding of Ameren Corp's strategic position.Decoding Ameren Corp (AEE): A Strategic SWOT InsightStrengthsRegulated Revenue Streams: Ameren Corp's primary strength lies in its rate-regulated business model, which provides a predictable and stable revenue stream. The company's operations in both Missouri and Illinois are subject to state regulation, ensuring that rates charged to customers are consistent and reflect the cost of service. This regulatory framework mitigates the risk of revenue volatility, a significant advantage in the utility sector where capital investments are substantial and long-term.Infrastructure Investment: Ameren Corp has demonstrated a strong commitment to investing in its energy infrastructure, which is crucial for maintaining service reliability and meeting regulatory requirements. The company's capital expenditure programs are focused on upgrading and expanding its transmission and distribution networks, enhancing grid resilience, and reducing outage times. These investments not only improve customer satisfaction but also contribute to the company's long-term financial health by ensuring compliance with evolving regulatory standards.Story continuesWeaknessesRegulatory Dependency: While regulation provides revenue stability, it also introduces a significant weakness: dependency on regulatory decisions. Ameren Corp's financial performance is heavily influenced by the rulings of the MoPSC, ICC, and FERC. Changes in regulatory policies or delays in rate case approvals can adversely affect the company's earnings and cash flows, making it vulnerable to shifts in the regulatory landscape.Aging Infrastructure: Despite ongoing investments, Ameren Corp faces the challenge of aging infrastructure. The utility industry is capital-intensive, and maintaining, upgrading, and replacing outdated systems can be costly. Ameren Corp must navigate these expenses carefully to avoid undue financial strain while ensuring the reliability and safety of its services.OpportunitiesGrowth in Renewable Energy: Ameren Corp has the opportunity to expand its renewable energy portfolio, aligning with global trends and regulatory incentives. The transition to cleaner energy sources not only addresses environmental concerns but also opens up new revenue streams. By investing in renewable energy projects, Ameren Corp can capitalize on government incentives and meet the growing consumer demand for sustainable energy solutions.Regulatory Developments: Favorable regulatory developments, such as supportive policies for infrastructure investment and energy efficiency programs, present Ameren Corp with opportunities to enhance its operations. The company can leverage these developments to secure cost recovery mechanisms, reduce regulatory lag, and improve its competitive position in the market.ThreatsEnvironmental Regulations: Ameren Corp operates in an industry that is increasingly subject to stringent environmental regulations. Compliance with rules governing emissions, coal combustion residuals, and renewable energy standards can impose significant costs. Failure to comply with these regulations can result in fines, legal challenges, and reputational damage, posing a threat to the company's financial stability and growth prospects.Market Dynamics: The energy market is evolving rapidly, with technological advancements and changing consumer preferences driving competition. The rise of distributed energy resources, energy storage solutions, and energy efficiency technologies can erode traditional utility revenue models. Ameren Corp must adapt to these changes to maintain its market position and avoid losing market share to more agile competitors.In conclusion, Ameren Corp (NYSE:AEE) presents a mixed picture of stability and challenges. Its strengths in a rate-regulated business model and infrastructure investment are tempered by weaknesses such as regulatory dependency and aging infrastructure. Opportunities in renewable energy and favorable regulatory developments offer avenues for growth, while threats from environmental regulations and market dynamics require strategic vigilance. Investors should weigh these factors carefully when considering Ameren Corp's long-term potential.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 Ameren Corp (AEE): A Strategic SWOT Insight

https://finance.yahoo.com/news/decoding-ameren-corp-aee-strategic-050214611.html

ede76396-0a70-3785-a660-411d99ff7f17

AEE

Delving Into Ameren Corp's Dividend Payouts and Financial HealthAmeren Corp (NYSE:AEE) recently announced a dividend of $0.67 per share, payable on 2024-03-29, with the ex-dividend date set for 2024-03-12. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Ameren Corps dividend performance and assess its sustainability.What Does Ameren Corp Do?Warning! GuruFocus has detected 9 Warning Signs with AEE.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?Ameren Corp operates rate-regulated generation, transmission, and distribution networks that deliver electricity and natural gas in Missouri and Illinois. It serves more than 2.4 million electricity customers and more than 900,000 natural gas customers, making it a significant player in the utilities sector.Ameren Corp's Dividend AnalysisA Glimpse at Ameren Corp's Dividend HistoryAmeren Corp has maintained a consistent dividend payment record since 1984, distributing dividends quarterly. The company has also demonstrated a commitment to increasing its dividend each year since 2009, earning it the title of a dividend achiever.This distinction is reserved for companies that have consistently raised their dividends annually for at least the past 15 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.Breaking Down Ameren Corp's Dividend Yield and GrowthAmeren Corp currently boasts a 12-month trailing dividend yield of 3.45% and a forward dividend yield of 3.67%, indicating an anticipated increase in dividend payments over the next year. Over the past three years, Ameren Corp's annual dividend growth rate was 8.00%, which slows to 6.70% over a five-year period and stands at 4.70% over the past decade.Considering Ameren Corp's dividend yield and five-year growth rate, the 5-year yield on cost for Ameren Corp stock is approximately 4.77%.Story continuesAmeren Corp's Dividend AnalysisThe Sustainability Question: Payout Ratio and ProfitabilityThe dividend payout ratio is a key indicator of a dividend's sustainability. Ameren Corp's ratio stands at 0.60 as of 2023-12-31, suggesting a balance between distributing earnings as dividends and retaining funds for growth and stability. Ameren Corp's profitability rank is a robust 7 out of 10, reflecting good profitability prospects compared to peers. Consistent positive net income over the past decade further supports the company's financial health.Growth Metrics: The Future OutlookAmeren Corp's growth rank of 7 out of 10 indicates a strong growth trajectory. The company's revenue per share and 3-year revenue growth rate show a solid revenue model, with an average annual increase of 6.90%. However, this rate slightly underperforms approximately 55.62% of global competitors.Additionally, Ameren Corp's 3-year EPS growth rate of 6.30% per year and a 5-year EBITDA growth rate of 5.20% are moderate when compared with the global competition. These figures suggest there is room for improvement in the company's growth metrics.Next StepsWith a history of consistent dividend payments and a reasonable payout ratio, Ameren Corp stands as a potentially attractive option for income-focused investors. The company's solid profitability rank and decent growth metrics offer some assurance of continued dividend sustainability. However, as with any investment, it is crucial to consider both the opportunities and the risks involved. Investors may want to keep an eye on industry trends, regulatory changes, and Ameren Corp's strategic initiatives to navigate future prospects.For investors seeking to find similar investment opportunities, GuruFocus Premium offers tools such as the High Dividend Yield Screener to discover high-dividend yield stocks.This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.This article first appeared on GuruFocus.

GuruFocus.com

Ameren Corp's Dividend Analysis

https://finance.yahoo.com/news/ameren-corps-dividend-analysis-110334944.html

c7c76b26-71bf-3e5b-bfcc-77b832939469

AEP

AEP Board Member and Former Chairman and CEO of Xcel Energy, Benjamin G.S. Fowke III, Appointed Interim CEO & PresidentAEP Lead Director Sara Martinez Tucker Named Chair of the BoardCOLUMBUS, Ohio, Feb. 26, 2024 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) today announced that Benjamin G.S. Fowke III, a member of the company's Board of Directors and the former chairman and CEO of Xcel Energy, Inc., has been appointed interim chief executive officer and president, effective immediately.Ben Fowke IIIFowke succeeds Julie A. Sloat. The Board determined, based on discussions with Sloat, that it is time to identify a new CEO to lead the company's next chapter. This decision was not a result of any disagreement with Sloat regarding AEP's operations, policies or financial performance, and was not made for cause or related to any ethical or compliance concern.In a separate release today, AEP is disclosing its fourth-quarter and year-end 2023 financial results and reaffirming its 2024 operating earnings guidance range of $5.53 to $5.73.In addition, the Board has appointed its lead director, Sara Martinez Tucker, as chair. The Board also has engaged a leading executive search firm to conduct an external search for a permanent CEO."After thorough deliberation and discussions with Julie, the Board determined now is the right time to make this leadership transition to best position AEP for the future," Tucker said. "The company has made great progress managing our portfolio and supporting the needs of customers and communities. With this solid foundation, we continue to be well-positioned to execute our capital plan and enhance grid reliability and resiliency for customers while advancing our ongoing generation fleet transformation. We thank Julie for her many contributions to AEP over the course of her 23-year tenure at the company and wish her the best moving forward."Tucker continued, "The Board would like to thank Ben for stepping in as interim CEO. Having previously served as chairman and CEO of Xcel Energy for over a decade, Ben has deep knowledge of all aspects of our industry, including operations, finance, regulatory policy and sustainability. Additionally, Ben has been a director on our Board since 2022 and is chair of our Finance Committee. As a director with deep utility experience, Ben has been instrumental in helping shape AEP's strategy and is well-positioned to lead our talented team to create value for shareholders, customers and other stakeholders while the Board conducts a search for a permanent successor."Story continuesFowke said, "Through my career in the industry, I have gotten to know AEP well, and since joining the Board, I have gained an even deeper appreciation of AEP's operations and the depth of talent across the organization. The Board and I have carefully overseen the execution of recent portfolio actions to simplify and de-risk the business, and I look forward to working with the management team over the coming months to build on AEP's positive momentum. Together, we will continue enhancing our regulatory relationships and unlocking shareholder value by driving the company's strategic priorities forward and delivering safe, reliable and affordable energy to our customers."Year-end 2023 Earnings WebcastAs previously announced, AEP will hold its quarterly earnings call at 9 a.m. ET Tuesday, Feb. 27. The call will be broadcast live over the internet at http://www.aep.com/webcasts.About Benjamin G.S. Fowke IIIFowke has been a member of AEP's Board since February 2022, and was chairman and CEO of Xcel for more than a decade until his retirement as CEO in August 2021. He remained executive chairman of the Xcel Board until December 2021. Fowke held a variety of leadership roles at Xcel including chief operating officer and chief financial officer. Fowke has a bachelor's degree in finance and accounting from Towson University and obtained his CPA in 1982. He is on the Board of Securian Financial and Energy Insurance Mutual and former chair of the Board of Edison Electric Institute.About AEPAt American Electric Power, based in Columbus, Ohio, we understand that our customers and communities depend on safe, reliable and affordable power. Our nearly 17,000 employees operate and maintain more than 40,000 miles of transmission lines, the nation's largest electric transmission system, and more than 225,000 miles of distribution lines to deliver power to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with nearly 29,000 megawatts of diverse generating capacity, including approximately 6,100 megawatts of renewable energy. AEP is investing $43 billion over the next five years to make the electric grid cleaner and more reliable. We are on track to reach an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and have a goal to achieve net zero by 2045. AEP is recognized consistently for its focus on sustainability, community engagement and inclusion. AEP's family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. For more information, visit aep.com.This report made by American Electric Power and its Registrant Subsidiaries contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: changes in economic conditions, electric market demand and demographic patterns in AEP service territories; the economic impact of increased global trade tensions including the conflicts in Ukraine and the Middle East, and the adoption or expansion of economic sanctions or trade restrictions; inflationary or deflationary interest rate trends; volatility and disruptions in the financial markets precipitated by any cause, including failure to make progress on federal budget or debt ceiling matters, particularly developments affecting the availability or cost of capital to finance new capital projects and refinance existing debt; the availability and cost of funds to finance working capital and capital needs, particularly if expected sources of capital such as proceeds from the sale of assets, subsidiaries and tax credits, and anticipated securitizations, do not materialize or do not materialize at the level anticipated, and during periods when the time lag between incurring costs and recovery is long and the costs are material; decreased demand for electricity; weather conditions, including storms and drought conditions, and AEP's ability to recover significant storm restoration costs; limitations or restrictions on the amounts and types of insurance available to cover losses that might arise in connection with natural disasters or operations; the cost of fuel and its transportation, the creditworthiness and performance of fuel suppliers and transporters and the cost of storing and disposing of used fuel, including coal ash and spent nuclear fuel; the availability of fuel and necessary generation capacity and the performance of generation plants; AEP's ability to recover fuel and other energy costs through regulated or competitive electric rates; the ability to transition from fossil generation and the ability to build or acquire renewable generation, transmission lines and facilities (including the ability to obtain any necessary regulatory approvals and permits) when needed at acceptable prices and terms, including favorable tax treatment, and to recover those costs; the impact of pandemics and any associated disruption of AEP's business operations due to impacts on economic or market conditions, costs of compliance with potential government regulations, electricity usage, supply chain issues, customers, service providers, vendors and suppliers; new legislation, litigation and government regulation, including changes to tax laws and regulations, oversight of nuclear generation, energy commodity trading and new or heightened requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances that could impact the continued operation, cost recovery, and/or profitability of generation plants and related assets; the impact of federal tax legislation on results of operations, financial condition, cash flows or credit ratings; the risks associated with fuels used before, during and after the generation of electricity and the byproducts and wastes of such fuels, including coal ash and spent nuclear fuel; timing and resolution of pending and future rate cases, negotiations and other regulatory decisions, including rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance; resolution of litigation or regulatory proceedings or investigations; AEP's ability to efficiently manage operation and maintenance costs; prices and demand for power generated and sold at wholesale; changes in technology, particularly with respect to energy storage and new, developing, alternative or distributed sources of generation; AEP's ability to recover through rates any remaining unrecovered investment in generation units that may be retired before the end of their previously projected useful lives; volatility and changes in markets for coal and other energy-related commodities, particularly changes in the price of natural gas; the impact of changing expectations and demands of customers, regulators, investors and stakeholders, including focus on environmental, social and governance concerns; changes in utility regulation and the allocation of costs within regional transmission organizations, including ERCOT, PJM and SPP; changes in the creditworthiness of the counterparties with contractual arrangements, including participants in the energy trading market; actions of rating agencies, including changes in the ratings of debt; the impact of volatility in the capital markets on the value of the investments held by AEP's pension, other postretirement benefit plans, captive insurance entity and nuclear decommissioning trust and the impact of such volatility on future funding requirements; accounting standards periodically issued by accounting standard-setting bodies; other risks and unforeseen events, including wars and military conflicts, the effects of terrorism (including increased security costs), embargoes, wildfires, cyber security threats and other catastrophic events; and the ability to attract and retain the requisite work force and key personnel. (PRNewsfoto/American Electric Power)CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/aep-announces-ceo-transition-302071652.htmlSOURCE American Electric Power

PR Newswire

AEP Announces CEO Transition

https://finance.yahoo.com/news/aep-announces-ceo-transition-213000117.html

9c429c56-30a8-3d73-8463-34ff7f3cf20d

AEP

Year-end 2023 GAAP earnings of $4.26 per share; operating earnings of $5.25 per share2024 operating earnings (non-GAAP) guidance range reaffirmed at $5.53 to $5.73 per share with long-term growth rate of 6% to 7% and FFO/Debt target of 14% to 15%Company advances strategic initiatives including de-risking the business, controlling costs and investing in a modern and reliable grid to benefit customersCOLUMBUS, Ohio, Feb. 26, 2024 /PRNewswire/ --AMERICAN ELECTRIC POWERPreliminary, unaudited resultsFourth Quarter ended December 31Year-to-date ended December 3120232022Variance20232022VarianceRevenue ($ in billions):4.64.9(0.3)19.019.6(0.6)Earnings ($ in millions):GAAP336.2384.3(48.1)2,208.12,307.2(99.1)Operating (non-GAAP)646.9540.1106.82,724.52,605.2119.3EPS ($):GAAP0.640.75(0.11)4.264.51(0.25)Operating (non-GAAP)1.231.050.185.255.090.16EPS based on 526 million shares 4Q 2023, 514 million shares 4Q 2022, 519 million shares YTD 2023 and 512 million shares YTD 2022.American Electric Power (Nasdaq: AEP) today reported fourth-quarter 2023 earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of $336 million or $0.64 per share, compared with GAAP earnings of $384 million or $0.75 per share in fourth-quarter 2022. Operating earnings for fourth-quarter 2023 were $647 million or $1.23 per share, compared with operating earnings of $540 million or $1.05 per share in fourth-quarter 2022. Operating earnings is a non-GAAP measure representing GAAP earnings excluding special items.Year-end 2023 GAAP earnings were $2.2 billion or $4.26 per share, compared with GAAP earnings of $2.3 billion or $4.51 per share for year-end 2022. Year-end 2023 operating earnings were $2.7 billion or $5.25 per share, compared with operating earnings of $2.6 billion or $5.09 per share for year-end 2022.The difference between GAAP and operating earnings for the fourth quarter and year-end 2023 was largely due to the disallowance of recovery of certain deferred fuel costs in West Virginia, the probable disallowance of certain capitalized costs associated with the Turk Plant, and the mark-to-market impact of economic hedging activities. A full reconciliation of GAAP earnings to operating earnings for the quarter and year-to-date is included in the tables at the end of this news release.Story continuesIn a separate release today, AEP announced that Benjamin G.S. Fowke III, a member of the company's Board of Directors and the former chairman and CEO of Xcel Energy, Inc., has been appointed interim chief executive officer and president."Our team delivered 2023 operating earnings results within our narrowed guidance range as we navigated a dynamic environment of higher interest rates and one of the mildest years for weather in our service territory in the last three decades," Fowke said."We are advancing our strategic priorities through investments in the energy system to benefit customers while managing the portfolio, driving efficiencies and lowering O&M costs. We also continue our disciplined approach to economic development that resulted in a 7.8% increase in commercial load and a 1.6% increase in industrial load in 2023, bringing jobs and economic growth to our communities. This remains a key area of focus as we see continued growth opportunities and strong interest from customers in the commercial sector."We remain focused on executing our 5-year, $43 billion capital plan with $27.3 billion allocated to transmission and distribution investments to ensure reliable, affordable power and enhance service for our customers. As part of that plan, we're also transforming our generation fleet through the addition of diverse regulated resources to support the growing energy needs of our customers. We've received approval to add more fuel-free renewable resources to serve customers in seven states, representing $6.6 billion of our planned $9.4 billion regulated renewables capital plan," Fowke said."We continue to make progress on our strategy to de-risk the business. We are working through the final phases of the sales process for the AEP Energy retail and AEP OnSite Partners distributed resources businesses and expect that process to conclude by the end of the second quarter. We also expect to complete the sale of our 50% share in the New Mexico Renewable Development to Exus for $115 million by the end of February."Following a strategic review, we will retain the Transource business and build on our successful track record of pursuing FERC-regulated competitive transmission opportunities as part of our transmission growth strategy. We also have decided to retain our share of the Pioneer and Prairie Wind transmission joint ventures," Fowke said.SUMMARY OF RESULTS BY SEGMENT$ in millionsGAAP Earnings4Q 234Q 22VarianceYTD 23YTD 22VarianceVertically Integrated Utilities (a)38.8215.7(176.9)1,090.41,292.0(201.6)Transmission & Distribution Utilities (b)190.3112.677.7698.7595.7103.0AEP Transmission Holdco (c)122.1188.1(66.0)702.9673.529.4Generation & Marketing (d)33.0(0.7)33.7(26.3)283.6(309.9)All Other(48.0)(131.4)83.4(257.6)(537.6)280.0Total GAAP Earnings (Loss)336.2384.3(48.1)2,208.12,307.2(99.1)Operating Earnings (non-GAAP)4Q 234Q 22VarianceYTD 23YTD 22VarianceVertically Integrated Utilities (a)237.8208.729.11,283.41,307.9(24.5)Transmission & Distribution Utilities (b)188.6112.676.0676.8595.781.1AEP Transmission Holdco (c)159.3188.1(28.8)740.2673.566.7Generation & Marketing (d)103.581.122.4307.6256.750.9All Other(42.3)(50.4)8.1(283.5)(228.6)(54.9)Total Operating Earnings (non-GAAP)646.9540.1106.82,724.52,605.2119.3A full reconciliation of GAAP earnings with operating earnings is included in tables at the end of this news release.a.Includes AEP Generating Co., Appalachian Power, Indiana Michigan Power, Kentucky Power, Kingsport Power, Public Service Co. of Oklahoma, Southwestern Electric Power and Wheeling Powerb.Includes Ohio Power and AEP Texasc.Includes wholly-owned transmission-only subsidiaries and transmission-only joint venturesd.Includes AEP OnSite Partners, AEP Renewables, competitive generation in ERCOT and PJM as well as marketing, risk management and retail activities in ERCOT, PJM and MISOEARNINGS GUIDANCE AEP management reaffirms its 2024 operating earnings guidance range of $5.53 to $5.73 per share. Operating earnings could differ from GAAP earnings for matters such as divestitures, impairments or changes in accounting principles. AEP management is not able to forecast if any of these items will occur or any amounts that may be reported for future periods. Therefore, AEP is not able to provide a corresponding GAAP equivalent for earnings guidance.WEBCASTAEP's quarterly discussion with financial analysts and investors will be broadcast live over the internet at 9 a.m. Eastern tomorrow, Feb. 27 at http://www.aep.com/webcasts. The webcast will include audio of the discussion and visuals of charts and graphics referred to by AEP management. The charts and graphics will be available for download at http://www.aep.com/webcasts.AEP's earnings are prepared in accordance with accounting principles generally accepted in the United States and represent the company's earnings as reported to the Securities and Exchange Commission. The company's operating earnings, a non-GAAP measure representing GAAP earnings excluding special items as described in the news release and charts, provide another representation for investors to evaluate the performance of the company's ongoing business activities. AEP uses operating earnings as the primary performance measurement when communicating with analysts and investors regarding its earnings outlook and results. The company uses operating earnings data internally to measure performance against budget, to report to AEP's Board of Directors and also as an input in determining performance-based compensation under the company's employee incentive compensation plans.At American Electric Power, based in Columbus, Ohio, we understand that our customers and communities depend on safe, reliable and affordable power. Our nearly 17,000 employees operate and maintain more than 40,000 miles of transmission lines, the nation's largest electric transmission system, and more than 225,000 miles of distribution lines to deliver power to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with nearly 29,000 megawatts of diverse generating capacity, including approximately 6,100 megawatts of renewable energy. AEP is investing $43 billion over the next five years to make the electric grid cleaner and more reliable. We are on track to reach an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and have a goal to achieve net zero by 2045. AEP is recognized consistently for its focus on sustainability, community engagement and inclusion. AEP's family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. For more information, visit aep.com.WEBSITE DISCLOSUREAEP may use its website as a distribution channel for material company information. Financial and other important information regarding AEP is routinely posted on and accessible through AEP's website at https://www.aep.com/investors/. In addition, you may automatically receive email alerts and other information about AEP when you enroll your email address by visiting the "Email Alerts" section at https://www.aep.com/investors/.This report made by American Electric Power and its Registrant Subsidiaries contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: changes in economic conditions, electric market demand and demographic patterns in AEP service territories; the economic impact of increased global trade tensions including the conflicts in Ukraine and the Middle East, and the adoption or expansion of economic sanctions or trade restrictions; inflationary or deflationary interest rate trends; volatility and disruptions in the financial markets precipitated by any cause, including failure to make progress on federal budget or debt ceiling matters, particularly developments affecting the availability or cost of capital to finance new capital projects and refinance existing debt; the availability and cost of funds to finance working capital and capital needs, particularly if expected sources of capital such as proceeds from the sale of assets, subsidiaries and tax credits, and anticipated securitizations, do not materialize or do not materialize at the level anticipated, and during periods when the time lag between incurring costs and recovery is long and the costs are material; decreased demand for electricity; weather conditions, including storms and drought conditions, and AEP's ability to recover significant storm restoration costs; limitations or restrictions on the amounts and types of insurance available to cover losses that might arise in connection with natural disasters or operations; the cost of fuel and its transportation, the creditworthiness and performance of fuel suppliers and transporters and the cost of storing and disposing of used fuel, including coal ash and spent nuclear fuel; the availability of fuel and necessary generation capacity and the performance of generation plants; AEP's ability to recover fuel and other energy costs through regulated or competitive electric rates; the ability to transition from fossil generation and the ability to build or acquire renewable generation, transmission lines and facilities (including the ability to obtain any necessary regulatory approvals and permits) when needed at acceptable prices and terms, including favorable tax treatment, and to recover those costs; the impact of pandemics and any associated disruption of AEP's business operations due to impacts on economic or market conditions, costs of compliance with potential government regulations, electricity usage, supply chain issues, customers, service providers, vendors and suppliers; new legislation, litigation and government regulation, including changes to tax laws and regulations, oversight of nuclear generation, energy commodity trading and new or heightened requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances that could impact the continued operation, cost recovery, and/or profitability of generation plants and related assets; the impact of federal tax legislation on results of operations, financial condition, cash flows or credit ratings; the risks associated with fuels used before, during and after the generation of electricity and the byproducts and wastes of such fuels, including coal ash and spent nuclear fuel; timing and resolution of pending and future rate cases, negotiations and other regulatory decisions, including rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance; resolution of litigation or regulatory proceedings or investigations; AEP's ability to efficiently manage operation and maintenance costs; prices and demand for power generated and sold at wholesale; changes in technology, particularly with respect to energy storage and new, developing, alternative or distributed sources of generation; AEP's ability to recover through rates any remaining unrecovered investment in generation units that may be retired before the end of their previously projected useful lives; volatility and changes in markets for coal and other energy-related commodities, particularly changes in the price of natural gas; the impact of changing expectations and demands of customers, regulators, investors and stakeholders, including focus on environmental, social and governance concerns; changes in utility regulation and the allocation of costs within regional transmission organizations, including ERCOT, PJM and SPP; changes in the creditworthiness of the counterparties with contractual arrangements, including participants in the energy trading market; actions of rating agencies, including changes in the ratings of debt; the impact of volatility in the capital markets on the value of the investments held by AEP's pension, other postretirement benefit plans, captive insurance entity and nuclear decommissioning trust and the impact of such volatility on future funding requirements; accounting standards periodically issued by accounting standard-setting bodies; other risks and unforeseen events, including wars and military conflicts, the effects of terrorism (including increased security costs), embargoes, wildfires, cyber security threats and other catastrophic events; and the ability to attract and retain the requisite work force and key personnel. American Electric PowerFinancial Results for the Fourth Quarter of 2023Reconciliation of GAAP to Operating Earnings (non-GAAP)2023VerticallyIntegratedUtilitiesTransmission& DistributionUtilitiesAEPTransmissionHoldcoGeneration&MarketingCorporateand OtherTotalEPS (a)($ millions)GAAP Earnings (Loss)38.8190.3122.133.0(48.0)336.2$        0.64Special Items (b)Mark-to-Market Impact of Commodity Hedging Activities(c)(17.6)——72.7—55.10.10Sale of Unregulated Renewables(d)———(17.5)0.3(17.2)(0.03)Impairment of Investment in New Mexico Renewable Development(e)———15.0—15.00.03Remeasurement of Excess ADIT Regulatory Liability(f)(46.0)————(46.0)(0.09)FERC NOLC Disallowance(g)(3.0)(9.0)36.1—(0.4)23.70.04ENEC Fuel Disallowance(h)175.2———5.8181.00.35Turk Impairment(i)79.7————79.70.15Severance Charges(j)10.77.31.10.3—19.40.04Total Special Items199.0(1.7)37.270.55.7310.7$        0.59Operating Earnings (Loss) (non-GAAP)237.8188.6159.3103.5(42.3)646.9$        1.23(a)Per share amounts are divided by Weighted Average Common Shares Outstanding – Basic(b)Excluding tax related adjustments, all items presented in the table are tax adjusted at the statutory rate unless otherwise noted(c)Represents the impact of mark-to-market economic hedging activities(d)Represents the loss on the sale of the Competitive Contracted Renewable Portfolio and other related third-party transaction costs(e)Represents the impairment of AEP's investment in the New Mexico Renewable Development joint venture(f)Represents the impact of the remeasurement of accumulated deferred income taxes - net operating loss carryforward in Virginia and West Virginia(g)Represents the impact of the FERC decision denying stand-alone treatment of NOLCs for transmission formula rates(h)Represents the impact of the disallowance of the recovery certain deferred fuel costs in West Virginia(i)Represents the impact of the probable disallowance of certain capitalized costs associated with the Turk Plant(j)Represents the impact of AEP's recently announced workforce reduction Financial Results for the Fourth Quarter of 2022Reconciliation of GAAP to Operating Earnings (non-GAAP)2022VerticallyIntegratedUtilitiesTransmission& DistributionUtilitiesAEPTransmissionHoldcoGeneration&MarketingCorporateand OtherTotalEPS (a)($ millions)GAAP Earnings (Loss)215.7112.6188.1(0.7)(131.4)384.3$        0.75Special Items (b)Mark-to-Market Impact of Commodity Hedging Activities(c)(7.0)——96.8—89.80.18Pending Sale of Kentucky Operations(d)————80.480.40.15Mark-to-Market Impact of Certain Investments(e)————(3.2)(3.2)(0.01)Pending Sale of Unregulated Renewables(f)————0.90.9—Impairment and Disposition of Investment in Flat Ridge 2(g)———(15.0)2.9(12.1)(0.02)Total Special Items(7.0)——81.881.0155.8$        0.30Operating Earnings (Loss) (non-GAAP)208.7112.6188.181.1(50.4)540.1$        1.05(a)Per share amounts are divided by Weighted Average Common Shares Outstanding – Basic(b)Excluding tax related adjustments, all items presented in the table are tax adjusted at the statutory rate unless otherwise noted(c)Represents the impact of mark-to-market economic hedging activities(d)Represents an adjustment to the loss on the expected sale of the Kentucky Operations which was terminated in April 2023 and other related third-party transaction costs(e)Represents the impact of mark-to-market on certain investments(f)Represents third-party transaction costs due to the unregulated renewable sales process(g)Represents the impact of the impairment and disposition of AEP's investment in the Flat Ridge 2 wind farm joint venture American Electric PowerSummary of Selected Sales DataRegulated Connected LoadThree Months Ended December 31ENERGY & DELIVERY SUMMARY20232022ChangeVertically Integrated UtilitiesRetail Electric (in millions of KWh):   Residential6,8847,024(2.0) %   Commercial5,7005,4374.8 %   Industrial8,4628,3830.9 %   Miscellaneous5455420.6 %   Total Retail21,59121,3861.0 %   Wholesale Electric (in millions of KWh): (a)2,7814,183(33.5) %   Total KWhs24,37225,569(4.7) %Transmission & Distribution UtilitiesRetail Electric (in millions of KWh):   Residential5,4815,748(4.6) %   Commercial7,7086,32521.9 %   Industrial6,7716,2528.3 %   Miscellaneous1801790.6 %   Total Retail (b)20,14018,5048.8 %   Wholesale Electric (in millions of KWh): (a)55632670.6 %   Total KWhs20,69618,8309.9 %(a)Includes off-system sales, municipalities and cooperatives, unit power and other wholesale customers(b)Represents energy delivered to distribution customers American Electric PowerFinancial Results for Year-to-Date 2023Reconciliation of GAAP to Operating Earnings (non-GAAP)2023VerticallyIntegratedUtilitiesTransmission& DistributionUtilitiesAEPTransmissionHoldcoGeneration&MarketingCorporateand OtherTotalEPS (a)($ millions)GAAP Earnings (Loss)1,090.4698.7702.9(26.3)(257.6)2,208.1$        4.26Special Items (b)Mark-to-Market Impact of Commodity Hedging Activities(c)(19.3)——247.6—228.30.44Termination of the Sale of Kentucky Operations(d)————(33.7)(33.7)(0.06)Sale of Unregulated Renewables(e)———71.02.473.40.14Change in Texas Legislation(f)(4.3)(20.2)0.1——(24.4)(0.05)Impairment of Investment in New Mexico Renewable Development(g)———15.0—15.00.03Remeasurement of Excess ADIT Regulatory Liability(h)(46.0)————(46.0)(0.09)FERC NOLC Disallowance(i)(3.0)(9.0)36.1—(0.4)23.70.04ENEC Fuel Disallowance(j)175.2———5.8181.00.35Turk Impairment(k)79.7————79.70.15Severance Charges(l)10.77.31.10.3—19.40.04Total Special Items193.0(21.9)37.3333.9(25.9)516.4$        0.99Operating Earnings (Loss) (non-GAAP)1,283.4676.8740.2307.6(283.5)2,724.5$        5.25(a)Per share amounts are divided by Weighted Average Common Shares Outstanding – Basic(b)Excluding tax related adjustments, all items presented in the table are tax adjusted at the statutory rate unless otherwise noted(c)Represents the impact of mark-to-market economic hedging activities(d)Represents an adjustment to the loss on the expected sale of the Kentucky Operations which was terminated in April 2023 and other related third-party transaction costs(e)Represents the loss on the sale of the Competitive Contracted Renewable Portfolio and other related third-party transaction costs(f)Represents the impact of recent legislation in Texas regarding recovery of certain employee incentives(g)Represents the impairment of AEP's investment in the New Mexico Renewable Development joint venture(h)Represents the impact of the remeasurement of accumulated deferred income taxes - net operating loss carryforward in Virginia and West Virginia(i)Represents the impact of the FERC decision denying stand-alone treatment of NOLCs for transmission formula rates(j)Represents the impact of the disallowance of the recovery certain deferred fuel costs in West Virginia(k)Represents the impact of the probable disallowance of certain capitalized costs associated with the Turk Plant(l)Represents the impact of AEP's recently announced workforce reduction Financial Results for Year-to-Date 2022Reconciliation of GAAP to Operating Earnings (non-GAAP)2022VerticallyIntegratedUtilitiesTransmission& DistributionUtilitiesAEPTransmissionHoldcoGeneration&MarketingCorporateand OtherTotalEPS (a)($ millions)GAAP Earnings (Loss)1,292.0595.7673.5283.6(537.6)2,307.2$        4.51Special Items (b) Mark-to-Market Impact of Commodity Hedging Activities(c)(8.5)——(68.5)—(77.0)(0.15) Accumulated Deferred Income Tax Adjustments(d)————(2.0)(2.0)— Pending Sale of Kentucky Operations(e)————306.8306.80.59 Gain on Sale of Mineral Rights(f)———(91.9)—(91.9)(0.18) Mark-to-Market Impact of Certain Investments(g)————(3.2)(3.2)(0.01) Pending Sale of Unregulated Renewables(h)————4.54.50.01 Impairment and Disposition of Investment in Flat Ridge 2(i)———133.52.9136.40.27 Virginia Triennial Review(j)24.4————24.40.05Total Special Items15.9——(26.9)309.0298.0$        0.58Operating Earnings (Loss) (non-GAAP)1,307.9595.7673.5256.7(228.6)2,605.2$        5.09(a)Per share amounts are divided by Weighted Average Common Shares Outstanding – Basic(b)Excluding tax related adjustments, all items presented in the table are tax adjusted at the statutory rate unless otherwise noted(c)Represents the impact of mark-to-market economic hedging activities(d)Represents the impact of out-of-period adjustments related to accumulated deferred income taxes(e)Includes a $363.3 million loss on the expected sale of the Kentucky operations and other related third-party transaction costs(f)Represents the gain on the sale of certain mineral rights(g)Represents the impact of mark-to-market on certain investments(h)Represents third-party transaction costs due to the unregulated renewable sales process(i)Represents the impact of the impairment and disposition of AEP's investment in the Flat Ridge 2 wind farm joint venture(j)Represents the impact of the Virginia Supreme Court opinion on AEP's appeal of Appalachian Power's 2017-2019 Triennial Review American Electric PowerSummary of Selected Sales DataRegulated Connected LoadTwelve Months Ended December 31ENERGY & DELIVERY SUMMARY20232022ChangeVertically Integrated UtilitiesRetail Electric (in millions of KWh):   Residential30,29032,835(7.8) %   Commercial23,48123,770(1.2) %   Industrial34,14834,532(1.1) %   Miscellaneous2,2292,316(3.8) %   Total Retail90,14893,453(3.5) %   Wholesale Electric (in millions of KWh): (a)13,40116,099(16.8) %   Total KWhs103,549109,552(5.5) %Transmission & Distribution UtilitiesRetail Electric (in millions of KWh):Residential26,09927,479(5.0) %   Commercial30,41927,44810.8 %   Industrial26,57125,4354.5 %   Miscellaneous745753(1.1) %   Total Retail (b)83,83481,1153.4 %   Wholesale Electric (in millions of KWh): (a)1,9222,198(12.6) %   Total KWhs85,75683,3132.9 %(a)Includes off-system sales, municipalities and cooperatives, unit power and other wholesale customers(b)Represents energy delivered to distribution customers (PRNewsfoto/American Electric Power) CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/aep-reports-2023-earnings-results-302071632.htmlSOURCE American Electric Power

PR Newswire

AEP Reports 2023 Earnings Results

https://finance.yahoo.com/news/aep-reports-2023-earnings-results-213500362.html

8ec3610c-a05b-39ec-9c78-70e775a47ebc

AEP

COLUMBUS, Ohio, Feb. 27, 2024 /PRNewswire/ -- American Electric Power (Nasdaq: AEP) has completed the sale of its 50% interest in New Mexico Renewable Development, LLC (NMRD) to Exus North America Holdings, LLC (Exus). AEP nets approximately $104 million in cash after tax, transaction fees and other customary adjustments.AEP began the sale process in June 2023 and received necessary regulatory approval from the Federal Energy Regulatory Commission, New Mexico regulatory approvals associated with one of NMRD's projects and clearance under the Hart-Scott-Rodino Antitrust Improvement Act of 1976.The sale portfolio includes nine operating solar developments totaling 185 MW and six projects under development with an estimated output of 440 MW.At American Electric Power, based in Columbus, Ohio, we understand that our customers and communities depend on safe, reliable and affordable power. Our nearly 17,000 employees operate and maintain more than 40,000 miles of transmission lines, the nation's largest electric transmission system, and more than 225,000 miles of distribution lines to deliver power to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with nearly 29,000 megawatts of diverse generating capacity, including approximately 6,100 megawatts of renewable energy. AEP is investing $43 billion over the next five years to make the electric grid cleaner and more reliable. We are on track to reach an 80% reduction in carbon dioxide emissions from 2005 levels by 2030 and have a goal to achieve net zero by 2045. AEP is recognized consistently for its focus on sustainability, community engagement and inclusion. AEP's family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. For more information, visit aep.com.Story continues(PRNewsfoto/American Electric Power) CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/aep-completes-sale-of-new-mexico-solar-assets-302073269.htmlSOURCE American Electric Power

PR Newswire

AEP Completes Sale of New Mexico Solar Assets

https://finance.yahoo.com/news/aep-completes-sale-mexico-solar-210000043.html

938cee48-4207-3962-8fb5-8a9afc900868

AES

Strategic AccomplishmentsSigned new contracts for 5.6 GW of renewables in full year 2023, marking the third year in a row of adding 5 GW or more to the backlogCompleted construction of 3.5 GW of renewables in full year 2023, doubling new additions compared to 2022Secured $1.1 billion in asset sale proceeds, exceeding target of $400 to $600 million2023 Financial HighlightsDiluted EPS of $0.34, compared to ($0.82) in 2022Adjusted EPS1 of $1.76, compared to $1.67 in 2022 and 2023 guidance of $1.65 to $1.752023 Net Loss of $182 million, compared to Net Loss of $505 million in 20222023 Adjusted EBITDA2 of $2,812 million, compared to $2,931 million in 2022 and 2023 guidance of $2,600 to $2,900 million2023 Adjusted EBITDA with Tax Attributes2,3 of $3,423 million, compared to $3,198 million in 2022Financial Position and OutlookWith 5.6 GW of signed PPAs in 2023, on track to achieve target of signing 14 to 17 GW in 2023 to 2025Expecting to add 3.6 GW of new projects in 2024Initiating 2024 guidance for Adjusted EPS1 of $1.87 to $1.97Reaffirming annualized growth target of 7% to 9% through 2025, off a base of 2020Raising annualized growth target to 7% to 9% through 2027 from 6% to 8%, off a base of 2023 guidanceInitiating 2024 guidance for Adjusted EBITDA2 of $2,600 to $2,900 millionRaising annualized growth target2 to 5% to 7% through 2027 from 3% to 5%, off a base of 2023 guidanceExpecting 2024 Adjusted EBITDA with Tax Attributes2,3 of $3,550 to $3,950 millionARLINGTON, Va., Feb. 26, 2024 /PRNewswire/ -- The AES Corporation (NYSE: AES) today reported financial results for the year ended December 31, 2023.Accelerating the future of energy, together. (PRNewsfoto/The AES Corporation)"Overall, 2023 was AES' best year ever in terms of both execution and financial performance.  We exceeded almost all of our strategic objectives, including increasing renewables construction by 100% to 3.5 GW and signing 5.6 GW of new PPAs," said Andrés Gluski, AES President and Chief Executive Officer.  "Our backlog of signed PPAs now stands at 12.3 GW and we continue to see strong and growing demand from our corporate customers, including data center companies.  We are therefore very well-positioned to add 3.6 GW of new capacity to our operating portfolio in 2024 and sign 14 to 17 GW of new renewable contracts from 2023 through 2025."Story continues"I am extremely pleased with our financial results for 2023, which met or exceeded our expectations on all metrics.  We also significantly exceeded our asset sales goal for the year, positioning us very well to support our future growth," said Stephen Coughlin, AES Executive Vice President and Chief Financial Officer.  "Our 2024 targets and our higher long-term growth rates reflect our confidence in our strategy, our leading market position, and our ability to continue executing on our plan."2023 Financial ResultsFull year 2023 Net Income (Loss) was ($182) million, including $1.1 billion of impairments in 2023 primarily related to the Company's continued exit from coal-fired generation.  This represents an improvement of $323 million compared to full year 2022, primarily due to favorable contributions at the Utilities, New Energy Technologies, and Renewables Strategic Business Units (SBU), partially offset by lower contributions from LNG transactions as compared to 2022 at the Energy Infrastructure SBU.Full year 2023 Adjusted EBITDA4 (a non-GAAP financial measure) was $2,812 million, a decrease of $119 million compared to full year 2022, primarily driven by lower contributions from the Energy Infrastructure SBU, partially offset by contributions from new renewables projects and the 2023 recovery of AES Ohio purchased power costs recognized in 2022.During full year 2023, the Company realized Tax Attributes5 of $611 million, an increase of $344 million compared to full year 2022.Full year 2023 Diluted Earnings Per Share from Continuing Operations (Diluted EPS) was $0.34, an increase of $1.16 compared to full year 2022, primarily reflecting lower goodwill impairments in 2023, higher contributions from renewables projects placed into service, gain on sale of shares in Fluence in 2023, and higher contributions at the Utilities SBU due to the 2023 recovery of AES Ohio purchased power costs recognized in 2022.  These positive drivers were partially offset by lower contributions from LNG transactions versus 2022, and higher unrealized foreign currency losses at the Energy Infrastructure SBU.Full year 2023 Adjusted Earnings Per Share6 (Adjusted EPS, a non-GAAP financial measure) was $1.76, an increase of $0.09 compared to full year 2022, primarily driven by contributions from new renewables projects and the 2023 recovery of AES Ohio purchased power costs recognized in 2022, partially offset by lower contributions from the Energy Infrastructure SBU and higher Parent Company interest.Strategic AccomplishmentsAs of today, the Company's backlog, which consists of projects with signed contracts, but which are not yet operational, is 12.3 GW, including 5.1 GW under construction.In 2023, the Company completed the construction of 3.5 GW of solar, wind and energy storage.In 2023, the Company signed 5.6 GW of long-term contracts for new renewables.AES Indiana reached a unanimous settlement agreement for its first rate case since 2018, and expects to receive approval from the Indiana Utility Regulatory Commission (IURC) by the middle of 2024.AES Ohio received approval from the Public Utilities Commission of Ohio (PUCO) for its Electric Security Plan (ESP4), providing the regulatory foundation necessary to enable future investments.Exited, or announced the sale or closure of, 2.1 GW of coal generation in Vietnam, the United States and Chile.Signed agreements for three-year extensions of 1.4 GW of gas generation at the Southland legacy units in Southern California. These extensions will help meet the State of California's grid reliability needs while supporting its decarbonization goals.Awarded up to $2.4 billion of grant funding by the US Department of Energy for two green hydrogen hubs with AES participation.Secured $1.1 billion in asset sale proceeds, to accelerate portfolio transformation, outpacing target of $400 to $600 million.Guidance and Expectations7,8The Company is raising its expectation for annualized growth in Adjusted EBITDA7 to 5% to 7% from 3% to 5% through 2027, from a base of its 2023 guidance of $2,600 to $2,900 million.The Company is initiating 2024 guidance for Adjusted EBITDA7 of $2,600 to $2,900 million.  Results are expected to be driven by the impacts from significant asset sales closed in 2023 and expected to close in 2024, as well as prior year margins earned on LNG transactions, partially offset by contributions from new renewables projects, improved margins in Chile, and rate base growth at US utilities.The Company is reaffirming its annualized growth target for Adjusted EPS9 of 7% to 9% through 2025, from a base of 2020.  The Company is also raising its annualized growth target for Adjusted EPS7 to 7% to 9% from 6% to 8% through 2027, from a base of its 2023 guidance of $1.65 to $1.75.The Company is initiating 2024 guidance for Adjusted EPS9 of $1.87 to $1.97.  Growth in 2024 is expected to be primarily driven by new renewables commissionings, rate base growth at US utilities, and improved margins in Chile, but partially offset by asset sales and prior year margins on LNG transactions.The Company's 2024 guidance is based on foreign currency and commodity forward curves as of December 31, 2023.The Company expects to grow its dividend by 2% to 3% annually after 2024, reflecting a larger pool of attractive investment opportunities and to minimize equity issuance as a source of capital.Non-GAAP Financial MeasuresSee Non-GAAP Measures for definitions of Adjusted EBITDA, Adjusted EBITDA with Tax Attributes, Tax Attributes, Adjusted Earnings Per Share and Adjusted Pre-Tax Contribution, as well as reconciliations to the most comparable GAAP financial measures.AttachmentsCondensed Consolidated Statements of Operations, Segment Information, Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Cash Flows, Non-GAAP Financial Measures and Parent Financial Information.Conference Call InformationAES will host a conference call on Tuesday, February 27, 2024 at 10:00 a.m. Eastern Time (ET).  Interested parties may listen to the teleconference by dialing 1-833-470-1428 at least ten minutes before the start of the call. International callers should dial +1-404-975-4839.  The Participant Access Code for this call is 958499.  Internet access to the conference call and presentation materials will be available on the AES website at www.aes.com by selecting "Investors" and then "Presentations and Webcasts."A webcast replay will be accessible at www.aes.com beginning shortly after the completion of the call._________________________1Adjusted EPS is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter and twelve months ended December 31, 2023.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.2Adjusted EBITDA is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income (Loss) for the quarter and twelve months ended December 31, 2023.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.3Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties.4Adjusted EBITDA is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income (Loss) for the quarter and twelve months ended December 31, 2023.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.5Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties.6Adjusted EPS is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter and twelve months ended December 31, 2023.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.7Adjusted EBITDA is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income (Loss) for the quarter and twelve months ended December 31, 2023.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EBITDA guidance without unreasonable effort.8Adjusted EPS is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter and twelve months ended December 31, 2023.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort.9Adjusted EPS is a non-GAAP financial measure.  See attached "Non-GAAP Measures" for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter and twelve months ended December 31, 2023.  The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance without unreasonable effort. About AESThe AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy.  Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs.  Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today.  For more information, visit www.aes.com.Safe Harbor DisclosureThis news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES' current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels, and rates of return consistent with prior experience.Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES' filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, the risks discussed under Item 1A: "Risk Factors" and Item 7: "Management's Discussion & Analysis" in AES' 2023 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES' filings to learn more about the risk factors associated with AES' business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except where required by law.Any Stockholder who desires a copy of the Company's 2023 Annual Report on Form 10-K filed February 26, 2024 with the SEC may obtain a copy (excluding the exhibits thereto) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Annual Report on Form 10-K may be obtained by visiting the Company's website at www.aes.com.Website DisclosureAES uses its website, including its quarterly updates, as channels of distribution of Company information.  The information AES posts through these channels may be deemed material.  Accordingly, investors should monitor our website, in addition to following AES' press releases, quarterly SEC filings and public conference calls and webcasts.  In addition, you may automatically receive e-mail alerts and other information about AES when you enroll your e-mail address by visiting the "Subscribe to Alerts" page of AES' Investors website.  The contents of AES' website, including its quarterly updates, are not, however, incorporated by reference into this release. THE AES CORPORATIONConsolidated Statements of OperationsYear Ended December 31,202320222021(in millions, except per share amounts)Revenue:Non-Regulated$         9,245$         9,079$         8,273Regulated3,4233,5382,868Total revenue12,66812,61711,141Cost of Sales:Non-Regulated(7,173)(6,907)(5,982)Regulated(2,991)(3,162)(2,448)Total cost of sales(10,164)(10,069)(8,430)Operating margin2,5042,5482,711General and administrative expenses(255)(207)(166)Interest expense(1,319)(1,117)(911)Interest income551389298Loss on extinguishment of debt(63)(15)(78)Other expense(99)(68)(60)Other income89102410Gain (loss) on disposal and sale of business interests134(9)(1,683)Goodwill impairment expense(12)(777)—Asset impairment expense(1,067)(763)(1,575)Foreign currency transaction losses(359)(77)(10)Other non-operating expense—(175)—INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES104(169)(1,064)Income tax benefit (expense)(261)(265)133Net equity in losses of affiliates(32)(71)(24)LOSS FROM CONTINUING OPERATIONS(189)(505)(955)Gain from disposal of discontinued businesses, net of income tax benefit (expense) of $7, $0, and $-1, respectively7—4NET LOSS(182)(505)(951)Less: Net loss (income) attributable to noncontrolling interests and redeemable stock of subsidiaries431(41)542NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION$            249$          (546)$          (409)AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:Income (loss) from continuing operations, net of tax$            242$          (546)$          (413)Income from discontinued operations, net of tax7—4NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION$            249$          (546)$          (409)BASIC EARNINGS PER SHARE:Income (loss) from continuing operations attributable to The AES Corporation common stockholders, net of tax$           0.36$         (0.82)$         (0.62)Income from discontinued operations attributable to The AES Corporation common stockholders, net of tax0.01—0.01NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS$           0.37$         (0.82)$         (0.61)DILUTED EARNINGS PER SHARE:Income (loss) from continuing operations attributable to The AES Corporation common stockholders, net of tax$           0.34$         (0.82)$         (0.62)Income from discontinued operations attributable to The AES Corporation common stockholders, net of tax0.01—0.01NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS$           0.35$         (0.82)$         (0.61) THE AES CORPORATIONConsolidated Statements of Operations (Unaudited)Three Months Ended December 31,20232022(in millions, except per share amounts)Revenue:Non-Regulated$                     2,194$                     2,135Regulated774925Total revenue2,9683,060Cost of Sales:Non-Regulated(1,781)(1,670)Regulated(693)(827)Total cost of sales(2,474)(2,497)Operating margin494563General and administrative expenses(64)(58)Interest expense(353)(304)Interest income153119Loss on extinguishment of debt(62)(7)Other expense(61)(17)Other income5322Loss on disposal and sale of business interests138(9)Goodwill impairment expense(12)(777)Asset impairment expense(715)(230)Foreign currency transaction losses(150)(17)Other non-operating expense—(175)INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES(579)(890)Income tax benefit (expense)(82)(79)Net equity in losses of affiliates11(17)LOSS FROM CONTINUING OPERATIONS(650)(986)Gain (loss) from disposal and impairments of discontinued businesses7—NET LOSS(643)(986)Less: Net loss (income) attributable to noncontrolling interests and redeemable stock of subsidiaries54983NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION$                        (94)$                      (903)AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:BASIC EARNINGS PER SHARE:Income (loss) from continuing operations attributable to The AES Corporation common stockholders, net of tax$                     (0.15)$                     (1.35)Income from discontinued operations attributable to The AES Corporation common stockholders, net of tax0.01—NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS$                     (0.14)$                     (1.35)DILUTED EARNINGS PER SHARE:Income (loss) from continuing operations attributable to The AES Corporation common stockholders, net of tax$                     (0.15)$                     (1.35)Income from discontinued operations attributable to The AES Corporation common stockholders, net of tax0.01—NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS$                     (0.14)$                     (1.35)DILUTED SHARES OUTSTANDING670668 THE AES CORPORATIONStrategic Business Unit (SBU) Information(Unaudited)Three Months Ended December 31,Year Ended December 31,(in millions)2023202220232022REVENUERenewables SBU$              595$              486$           2,339$           1,893Utilities SBU7929433,4953,617Energy Infrastructure SBU1,5971,6516,8367,204New Energy Technologies SBU11763Corporate and Other4235138116Eliminations(59)(56)(216)(216)Total Revenue$           2,968$           3,060$         12,668$         12,617 THE AES CORPORATIONConsolidated Balance SheetsDecember 31, 2023December 31, 2022(in millions, except share and per share data)ASSETSCURRENT ASSETSCash and cash equivalents$               1,426$               1,374Restricted cash370536Short-term investments395730Accounts receivable, net of allowance of $15 and $5, respectively1,4201,799Inventory7121,055Prepaid expenses17798Other current assets, net of allowance of $0 and $2, respectively1,3871,533Current held-for-sale assets762518Total current assets6,6497,643NONCURRENT ASSETSProperty, Plant and Equipment:Land522470Electric generation, distribution assets and other30,19026,599Accumulated depreciation(8,602)(8,651)Construction in progress7,8484,621Property, plant and equipment, net29,95823,039Other Assets:Investments in and advances to affiliates941952Debt service reserves and other deposits194177Goodwill348362Other intangible assets, net of accumulated amortization of $498 and $434, respectively2,2431,841Deferred income taxes396319Other noncurrent assets, net of allowance of $9 and $77, respectively3,2594,030Noncurrent held-for-sale assets811—Total other assets8,1927,681TOTAL ASSETS$             44,799$             38,363LIABILITIES AND EQUITYCURRENT LIABILITIESAccounts payable$               2,199$               1,730Accrued interest315249Accrued non-income taxes278249Supplier financing arrangements974662Accrued and other liabilities1,3341,489Recourse debt200—Non-recourse debt, including $1080 and $416, respectively, related to variable interest entities3,9321,758Current held-for-sale liabilities499354Total current liabilities9,7316,491NONCURRENT LIABILITIESRecourse debt4,2643,894Non-recourse debt, including $1,715 and $2,295, respectively, related to variable interest entities18,48217,846Deferred income taxes1,2451,139Other noncurrent liabilities3,1143,168Noncurrent held-for-sale liabilities514—Total noncurrent liabilities27,61926,047Redeemable stock of subsidiaries1,4641,321EQUITYTHE AES CORPORATION STOCKHOLDERS' EQUITYPreferred stock (without par value, 50,000,000 shares authorized; 1,043,050 issued and outstanding at December 31, 2023 and December 31, 2022)838838Common stock ($0.01 par value, 1,200,000,000 shares authorized; 819,051,591 issued and 669,693,234 outstanding at December 31, 2023 and 818,790,001 issued and 668,743,464 outstanding at December 31, 2022)88Additional paid-in capital6,3556,688Accumulated deficit(1,386)(1,635)Accumulated other comprehensive loss(1,514)(1,640)Treasury stock, at cost (149,358,357 and 150,046,537 shares, respectively)(1,813)(1,822)Total AES Corporation stockholders' equity2,4882,437NONCONTROLLING INTERESTS3,4972,067Total equity5,9854,504TOTAL LIABILITIES AND EQUITY$             44,799$             38,363 THE AES CORPORATIONConsolidated Statements of Cash Flows(Unaudited)Three Months Ended December 31,Year Ended December 31,2023202220232022OPERATING ACTIVITIES:(in millions)(in millions)Net loss$       (643)$       (986)$       (182)$       (505)Adjustments to net loss:Depreciation and amortization2922531,1281,053Emissions allowance expense53106264425Loss (gain) on realized/unrealized derivatives6463143127Gain on remeasurement to acquisition date fair value—(5)—(5)Loss (gain) on disposal and sale of business interests(138)9(134)9Impairment expense7211,1821,0791,715Loss on realized/unrealized foreign currency1471333158Deferred income taxes484(54)4Other31110149123Changes in operating assets and liabilities:(Increase) decrease in accounts receivable145(123)161(532)(Increase) decrease in inventory53(56)306(417)(Increase) decrease in prepaid expenses and other current assets(38)7638(40)(Increase) decrease in other assets91825433Increase (decrease) in accounts payable and other current liabilities55362(132)470Increase (decrease) in income tax payables, net and other tax payables(42)80(109)(51)Increase (decrease) in deferred income(52)(15)(2)33Increase (decrease) in other liabilities20(189)43(185)Net cash provided by operating activities725...1,0663,0342,715INVESTING ACTIVITIES:Capital expenditures(2,429)(1,840)(7,724)(4,551)Acquisitions of business interests, net of cash and restricted cash acquired(231)(129)(542)(243)Proceeds from the sale of business interests, net of cash and restricted cash sold156—2541Sale of short-term investments3163951,3181,049Purchase of short-term investments(173)(401)(937)(1,492)Contributions and loans to equity affiliates(31)(30)(178)(232)Affiliate repayments and returns of capital5785149Purchase of emissions allowances(107)(73)(268)(488)Other investing(21)(11)(116)(29)Net cash used in investing activities(2,515)(2,011)(8,188)(5,836)FINANCING ACTIVITIES:Borrowings under the revolving credit facilities3,1641,2107,1035,424Repayments under the revolving credit facilities(3,555)(1,905)(6,285)(4,687)Commercial paper borrowings (repayments), net(604)———Issuance of recourse debt——1,400200Repayments of recourse debt(500)—(500)(29)Issuance of non-recourse debt2,7372,2344,5215,788Repayments of non-recourse debt(1,233)(1,372)(2,495)(3,144)Payments for financing fees(66)(37)(142)(120)Purchases under supplier financing arrangements5517431,8581,042Repayments of obligations under supplier financing arrangements(392)(198)(1,491)(432)Distributions to noncontrolling interests(150)(136)(323)(265)Acquisitions of noncontrolling interests(115)(61)(127)(602)Contributions from noncontrolling interests39111102233Sales to noncontrolling interests1,5674061,938742Issuance of preferred shares in subsidiaries418—42160Dividends paid on AES common stock(111)(106)(444)(422)Payments for financed capital expenditures(2)(10)(10)(33)Other financing(83)16(121)3Net cash provided by financing activities1,6658955,4053,758Effect of exchange rate changes on cash, cash equivalents and restricted cash(162)(12)(270)(56)(Increase) decrease in cash, cash equivalents and restricted cash of held-for-sale businesses(58)115(78)22Total increase (decrease) in cash, cash equivalents and restricted cash(345)53(97)603Cash, cash equivalents and restricted cash, beginning2,3352,0342,0871,484Cash, cash equivalents and restricted cash, ending$      1,990$      2,087$      1,990$      2,087SUPPLEMENTAL DISCLOSURES:Cash payments for interest, net of amounts capitalized$         582$         274$      1,317$         928Cash payments for income taxes, net of refunds3468301271SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:Initial recognition of contingent consideration for acquisitions (see Note 25)24923924Noncash recognition of new operating and financing leases (see Note 14)385225134Dividends declared but not yet paid116111116111Noncash contributions from noncontrolling interests——60—Noncash contributions to equity affiliates from transfers of tax credits52—52— THE AES CORPORATIONNON-GAAP FINANCIAL MEASURES(Unaudited)RECONCILIATION OF ADJUSTED PRE-TAX CONTRIBUTION (PTC) AND ADJUSTED EPSEBITDA is defined as earnings before interest income and expense, taxes, depreciation, and amortization. We define Adjusted EBITDA as EBITDA adjusted for the impact of NCI and interest, taxes, depreciation, and amortization of our equity affiliates, adding back interest income recognized under service concession arrangements, and excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; and (f) net gains at Angamos, one of our businesses in the Energy Infrastructure SBU, associated with the early contract terminations with Minera Escondida and Minera Spence. Adjusted EBITDA with Tax Attributes is defined as Adjusted EBITDA, adding back the pre-tax effect of Production Tax Credits ("PTCs"), Investment Tax Credits ("ITCs"), and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties.The GAAP measure most comparable to EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes is Net income. We believe that EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes better reflect the underlying business performance of the Company. Adjusted EBITDA is the most relevant measure considered in the Company's internal evaluation of the financial performance of its segments. Factors in this determination include the variability due to unrealized gains or losses related to derivative transactions or equity securities remeasurement, unrealized foreign currency gains or losses, losses due to impairments, strategic decisions to dispose of or acquire business interests or retire debt, the non-recurring nature of the impact of the early contract terminations at Angamos, and the variability of allocations of earnings to tax equity investors, which affect results in a given period or periods. In addition, each of these metrics represent the business performance of the Company before the application of statutory income tax rates and tax adjustments, including the effects of tax planning, corresponding to the various jurisdictions in which the Company operates. Given its large number of businesses and overall complexity, the Company concluded that Adjusted EBITDA is a more transparent measure than Net income that better assists investors in determining which businesses have the greatest impact on the Company's results.EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes should not be construed as alternatives to Net income, which is determined in accordance with GAAP.Three Months Ended December 31,Twelve Months Ended December 31,Reconciliation of Adjusted EBITDA (in millions)2023202220232022Net loss$               (643)$               (986)$               (182)$               (505)Income tax expense8279261265Interest expense3533041,3191,117Interest income(153)(119)(551)(389)Depreciation and amortization2922531,1281,053EBITDA$                 (69)$               (469)$              1,975$              1,541Less: Income from discontinued operations(7)—(7)—Less: Adjustment for noncontrolling interests and redeemable stock of subsidiaries (1)(44)(218)(552)(704)Less: Income tax expense (benefit), interest expense (income) and depreciation and amortization from equity affiliates3733130126Interest income recognized under service concession arrangements17197177Unrealized derivative and equity securities losses3113134131Unrealized foreign currency losses1401930142Disposition/acquisition losses (gains)(100)4(79)40Impairment losses5591,1618771,658Loss on extinguishment of debt61136220Adjusted EBITDA (1)$                 625$                 693$              2,812$              2,931Tax attributes542158611267Adjusted EBITDA with Tax Attributes (2)$              1,167$                 851$              3,423$              3,198_____________________________(1) The allocation of earnings to tax equity investors from both consolidated entities and equity affiliates is removed from Adjusted EBITDA.(2)  Adjusted EBITDA with Tax Attributes includes the impact of the share of the ITCs, PTCs, and depreciation deductions allocated to tax equity investors under the HLBV accounting method and recognized as Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries on the Condensed Consolidated Statements of Operations. It also includes the tax benefit recorded from tax credits retained or transferred directly to third parties. The tax attributes are related to the Renewables and Utilities SBUs.Adjusted PTC, a non-GAAP measure, is defined by the Company as pre-tax income from continuing operations attributable to The AES Corporation excluding gains or losses of the consolidated entity due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; and (f) net gains at Angamos, one of our businesses in the Energy Infrastructure SBU, associated with the early contract terminations with Minera Escondida and Minera Spence. Adjusted PTC also includes net equity in earnings of affiliates on an after-tax basis adjusted for the same gains or losses excluded from consolidated entities.Adjusted EPS, a non-GAAP measure, is defined by the Company as diluted earnings per share from continuing operations excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses related to derivative transactions and equity securities; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, the tax impact from the repatriation of sales proceeds, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; and (f) net gains at Angamos, one of our businesses in the Energy Infrastructure SBU, associated with the early contract terminations with Minera Escondida and Minera Spence.The GAAP measure most comparable to Adjusted PTC is income from continuing operations attributable to The AES Corporation. The GAAP measure most comparable to Adjusted EPS is diluted earnings per share from continuing operations. We believe that Adjusted PTC and Adjusted EPS better reflect the underlying business performance of the Company and are considered in the Company's internal evaluation of financial performance. Factors in this determination include the variability due to unrealized gains or losses related to derivative transactions or equity securities remeasurement, unrealized foreign currency gains or losses, losses due to impairments, strategic decisions to dispose of or acquire business interests or retire debt, and the non-recurring nature of the impact of the early contract terminations at Angamos, and for Adjusted EPS, the one-time impact of the 2017 U.S. tax law reform and subsequent period adjustments related to enactment effects, which affect results in a given period or periods. In addition, for Adjusted PTC, earnings before tax represents the business performance of the Company before the application of statutory income tax rates and tax adjustments, including the effects of tax planning, corresponding to the various jurisdictions in which the Company operates. Adjusted PTC and Adjusted EPS should not be construed as alternatives to income from continuing operations attributable to The AES Corporation and diluted earnings per share from continuing operations, which are determined in accordance with GAAP.Reconciliation of GAAP to Non-GAAP Diluted Loss per ShareThree Months Ended December 31,Twelve Months Ended December 31,20222022GAAP DILUTED LOSS PER SHARE$                                            (1.35)$                                            (0.82)EFFECT OF DILUTIVE SECURITIESRestricted stock units——Equity units0.080.05NON-GAAP DILUTED LOSS PER SHARE$                                            (1.27)$                                            (0.77) Three Months Ended December 31, 2023Three Months Ended December 31, 2022Twelve Months Ended December 31, 2023Twelve Months Ended December 31, 2022Net of N4CI (1)Per Share (Diluted) Net of NCI (1)Net of NCI (1)Per Share(Diluted) Net of NCI (1)Net of NCI (1)Per Share(Diluted) Net of NCI (1)Net of NCI (1)Per Share (Diluted) Net of NCI (1)(in millions, except per share amounts)Income (loss) from continuing operations, net of tax, attributable to AES and Diluted EPS$     (101)$    (0.14)$     (903)$    (1.27)$       242$      0.34$     (546)$    (0.77)Income tax expense from continuing operations attributable to AES7061206210Pre-tax contribution$       (31)$     (842)$       448$     (336)AdjustmentsUnrealized derivative and equity securities losses $         38$      0.05(2)$       130$      0.18(3)$         41$      0.06(4)$       128$      0.18(5)Unrealized foreign currency losses1410.20(6)190.03(7)3010.42(8)420.07(9)Disposition/acquisition losses (gains)(100)(0.14)(10)40.01(79)(0.11)(11)400.06(12)Impairment losses5590.78(13)1,1611.63(14)8771.23(15)1,6582.33(16)Loss on extinguishment of debt630.09(17)150.02(18)700.10(19)350.05(20)Less: Net income tax benefit(0.11)(21)(0.11)(22)(0.28)(23)(0.25)(24)Adjusted PTC and Adjusted EPS$       670$      0.73$       487$      0.49$    1,658$      1.76$    1,567$      1.67_____________________________(1)  NCI is defined as Noncontrolling Interests.(2)         Amount primarily relates to unrealized derivative losses at the Energy Infrastructure SBU of $24 million, or $0.03 per share and unrealized derivative losses at the Parent Company of $15 million, or $0.02 per share.(3)  Amount primarily relates to unrealized losses on power swaps at Southland Energy of $97 million, or $0.14 per share. (4)         Amount primarily relates to unrealized derivative losses due to the termination of a PPA of $72 million, or $0.10 per share and net unrealized derivative losses at AES Clean Energy of $20 million, or $0.03 per share, offset by net unrealized derivative gains at the Energy Infrastructure SBU of $46 million, or $0.06 per share.(5)  Amount primarily relates to unrealized losses on power swaps at Southland Energy of $109 million, or $0.15 per share. (6)         Amount primarily relates to unrealized foreign currency losses in Argentina of $158 million, or $0.22 per share, partially offset by unrealized foreign currency gains at AES Andes of $30 million, or $0.04 per share.(7)         Amount primarily relates to unrealized foreign currency losses in Argentina of $20 million, or $0.03 per share, mainly associated with the devaluation of long-term receivables denominated in Argentine pesos.(8)         Amount primarily relates to unrealized foreign currency losses in Argentina of $262 million, or $0.37 per share, mainly associated with the devaluation of long-term receivables denominated in Argentine pesos, and unrealized foreign currency losses at AES Andes of $25 million, or $0.03 per share.(9)         Amount primarily relates to unrealized foreign currency losses in Argentina of $39 million, or $0.05 per share, mainly associated with the devaluation of long-term receivables denominated in Argentine pesos. (10)       Amount primarily relates to the gain on sale of Fluence shares of $136 million, or $0.19 per share; partially offset by costs due to the early plant closures at Norgener and Ventanas 2 at AES Andes of $30 million, or $0.04 per share and at Warrior Run of $6 million, or $0.01 per share, and day-one losses on commencement of sales-type leases at AES Renewable Holdings of $19 million, or $0.03 per share.(11)       Amount primarily relates to the gain on sale of Fluence shares of $136 million, or $0.19 per share, partially offset by costs due to early plant closure at the Ventanas 2 and Norgener coal-fired plants in Chile of $37 million, or $0.05 per share and at Warrior Run of $6 million, or $0.01 per share, and day-one losses recognized at commencement of sales-type leases at AES Renewable Holdings of $20 million, or $0.03 per share.(12)   Amount primarily relates to costs on disposition of AES Gilbert, including the recognition of an allowance on the sales-type lease receivable, of $13 million, or $0.02 per share, and a day-one loss recognized at commencement of a sales-type lease at AES Waikoloa Solar of $5 million, or $0.01 per share.(13)Amount primarily relates to asset impairments at Warrior Run of $198 million, or $0.28 per share, at New York Wind of $139 million, or $0.20 per share, at AES Clean Energy development projects of $103 million, or $0.14 per share, at Mong Duong of $88 million, or $0.12 per share, and a goodwill impairment at TEG TEP reporting unit of $12 million, or $0.02 per share.(14)Amount primarily relates to goodwill impairments at AES Andes of $644 million, or $0.91 per share, and at AES El Salvador of $133 million, or $0.19 per share, other-than-temporary impairment at sPower of $175 million, or $0.25, as well as long-lived asset impairment at TEG TEP of $191 million, or $0.27 per share. (15) Amount primarily relates to asset impairments at Warrior Run of $198 million, or $0.28 per share, at New York Wind of $139 million, or $0.20 per share, the Norgener coal-fired plant in Chile of $136 million, or $0.19 per share, at TEG and TEP of $76 million and $58 million, respectively, or $0.19 per share, AES Clean Energy development projects of $114 million, or $0.16 per share, at Mong Duong of $88 million, or $0.12 per share, at Jordan of $21 million, or $0.03 per share, and at the GAF Projects at AES Renewable Holdings of $18 million, or $0.03 per share, and a goodwill impairment at the TEG TEP reporting unit of $12 million, or $0.02 per share.(16) Amount primarily relates to goodwill impairments at AES Andes of $644 million, or $0.91 per share, and at AES El Salvador of $133 million, or $0.19 per share, other-than-temporary impairment at sPower of $175 million, or $0.25, as well as long-lived asset impairments at Maritza of $468 million, or $0.66 per share, at TEG TEP of $191 million, or $0.27 per share, and in Jordan of $28 million, or $0.04 per share.(17)Amount primarily relates to losses incurred at AES Andes due to early retirement of debt of $46 million, or $0.07 per share, and a loss on early retirement of debt at AES Hispanola Holdings BV of $9 million, or $0.01 per share.(18) Amount primarily relates to losses on early retirement of debt due to refinancing at AES Renewable Holdings of $12 million, or $0.02 per share.(19)Amount primarily relates to losses incurred at AES Andes due to early retirement of debt of $46 million, or $0.07 per share, and loss on early retirement of debt at AES Hispanola Holdings BV of $10 million, or $0.01 per share.(20)  Amount primarily relates to losses on early retirement of debt due to refinancing at AES Renewable Holdings of $12 million, or $0.02 per share, at AES Clean Energy of $5 million, or $0.01 per share, at Mong Duong of $4 million, or $0.01 per share, and at TEG TEP of $4 million, or $0.01 per share.(21)Amount primarily relates to income tax benefits associated with the asset impairments at Warrior Run of $46 million, or $0.06 per share, at New York Wind of $32 million, or $0.05 per share, and at AES Clean Energy development projects of $23 million, or $0.03 per share; and income tax benefits associated with losses incurred at AES Andes due to early retirement of debt of $13 million, or $0.02 per share; partially offset by income tax expense associated with the gain on sale of Fluence shares of $31 million, or $0.04 per share.(22) Amount primarily relates to income tax benefits associated with the impairments at TEG TEP of $57 million, or $0.09 per share, and the income tax benefits associated with the other-than-temporary impairment at sPower of $39 million, or $0.06 per share.(23) Amount primarily relates to income tax benefits associated with the asset impairments at Warrior Run of $46 million, or $0.06 per share, at the Norgener coal-fired plant in Chile of $37 million, or $0.05 per share, at New York Wind of $32 million, or $0.05 per share, at TEG and TEP of $27 million, or $0.04 per share, and at AES Clean Energy development projects of $26 million, or $0.04 per share; income tax benefits associated with the recognition of unrealized losses due to the termination of a PPA of $17 million, or $0.02 per share; and income tax benefits associated with losses incurred at AES Andes due to early retirement of debt of $13 million, or $0.02 per share; partially offset by income tax expense associated with the gain on sale of Fluence shares of $31 million, or $0.04 per share.(24)Amount primarily relates to income tax benefits associated with the impairment at Maritza of $48 million, or $0.07 per share, income tax benefits associated with the other-than-temporary impairment at sPower of $39 million, or $0.06 per share, income tax benefits associated with the impairment at TEG TEP of $34 million, or $0.05 per share, and income tax benefits associated with unrealized losses on power swaps at Southland Energy of $24 million, or $0.03 per share. The AES CorporationParent Financial InformationParent only data: last four quarters(in millions)4 Quarters EndedTotal subsidiary distributions & returns of capital to ParentDecember 31, 2023September 30, 2023June 30, 2023March 31, 2023ActualActualActualActualSubsidiary distributions1 to Parent & QHCs$             1,408$             1,625$             1,383$            1,489Returns of capital distributions to Parent & QHCs1941165656Total subsidiary distributions & returns of capital to Parent$             1,602$             1,741$             1,439$            1,545Parent only data: quarterly(in millions)Quarter EndedTotal subsidiary distributions & returns of capital to ParentDecember 31, 2023September 30, 2023June 30, 2023March 31, 2023ActualActualActualActualSubsidiary distributions1 to Parent & QHCs$                536$                311$                205$               356Returns of capital distributions to Parent & QHCs7860—56Total subsidiary distributions & returns of capital to Parent$                614$                371$                205$               412(in millions)Balance atDecember 31, 2023September 30, 2023June 30, 2023March 31, 2023Parent Company Liquidity2ActualActualActualActualCash at Parent & Cash at QHCs3$                  33$                  51$                  35$               117Availability under credit facilities1,376857883970Ending liquidity$             1,409$                908$                918$            1,087____________________________(1)         Subsidiary distributions received by Qualified Holding Companies ("QHCs") excluded from Schedule 1. Subsidiary Distributions should not be construed as an alternative to Consolidated Net Cash Provided by Operating Activities, which is determined in accordance with US GAAP. Subsidiary Distributions are important to the Parent Company because the Parent Company is a holding company that does not derive any significant direct revenues from its own activities but instead relies on its subsidiaries' business activities and the resultant distributions to fund the debt service, investment and other cash needs of the holding company. The reconciliation of the difference between the Subsidiary Distributions and Consolidated Net Cash Provided by Operating Activities consists of cash generated from operating activities that is retained at the subsidiaries for a variety of reasons which are both discretionary and non-discretionary in nature. These factors include, but are not limited to, retention of cash to fund capital expenditures at the subsidiary, cash retention associated with non-recourse debt covenant restrictions and related debt service requirements at the subsidiaries, retention of cash related to sufficiency of local GAAP statutory retained earnings at the subsidiaries, retention of cash for working capital needs at the subsidiaries, and other similar timing differences between when the cash is generated at the subsidiaries and when it reaches the Parent Company and related holding companies.(2) Parent Company Liquidity is defined as cash available to the Parent Company, including cash at qualified holding companies (QHCs), plus available borrowings under our existing credit facility. AES believes that unconsolidated Parent Company liquidity is important to the liquidity position of AES as a Parent Company because of the non-recourse nature of most of AES' indebtedness.(3)         The cash held at QHCs represents cash sent to subsidiaries of the company domiciled outside of the US. Such subsidiaries have no contractual restrictions on their ability to send cash to AES, the Parent Company. Cash at those subsidiaries was used for investment and related activities outside of the US. These investments included equity investments and loans to other foreign subsidiaries as well as development and general costs and expenses incurred outside the US. Since the cash held by these QHCs is available to the Parent, AES uses the combined measure of subsidiary distributions to Parent and QHCs as a useful measure of cash available to the Parent to meet its international liquidity needs.Investor Contact: Susan Harcourt 703-682-1204, susan.harcourt@aes.comMedia Contact: Amy Ackerman 703-682-6399, amy.ackerman@aes.comCisionView original content to download multimedia:https://www.prnewswire.com/news-releases/aes-reports-record-performance-in-2023--raises-long-term-guidance-302071731.htmlSOURCE The AES Corporation

PR Newswire

AES Reports Record Performance in 2023 & Raises Long-Term Guidance

https://finance.yahoo.com/news/aes-reports-record-performance-2023-222700396.html

42aee228-b8a4-3ee4-82a6-eaa12bd4d764

AES

Adjusted EPS Growth: Adjusted EPS increased to $1.76 in 2023 from $1.67 in 2022.Net Loss Improvement: 2023 net loss reduced to $182 million from $505 million in 2022.Adjusted EBITDA: Reached $2,812 million in 2023, within the guided range.Renewable Energy Expansion: Signed contracts for 5.6 GW of renewables and completed 3.5 GW in 2023.Asset Sale Proceeds: Secured $1.1 billion, surpassing the target of $400 to $600 million.Long-Term Growth Outlook: Raised annualized growth target for Adjusted EPS to 7-9% through 2027.Warning! GuruFocus has detected 8 Warning Signs with AES.On February 26, 2024, The AES Corp (NYSE:AES) released its 8-K filing, detailing a year of strategic accomplishments and robust financial performance. As a global power company, AES has a diverse generation portfolio of over 32 gigawatts, including a significant portion of renewable energy, and operates six electric utilities serving 2.6 million customers.The company's 2023 performance was marked by a record-setting year in execution and financial results. AES President and CEO Andres Gluski highlighted the achievement of strategic objectives, particularly the doubling of renewables construction and the signing of new power purchase agreements (PPAs), which now total 12.3 GW in backlog. CFO Stephen Coughlin expressed satisfaction with the financial outcomes, which met or exceeded targets, and confidence in the company's growth strategy.The importance of AES's performance lies in its ability to exceed strategic goals in a challenging energy market, particularly in the transition to renewable energy. The company's success in expanding its renewable portfolio and securing significant asset sale proceeds positions it well for future growth and resilience against market volatility.Financial achievements such as the increase in Adjusted EPS to $1.76 and the improvement in net loss from $505 million in 2022 to $182 million in 2023 are critical for AES as they reflect the company's operational efficiency and profitability in the regulated utilities industry. The raised long-term guidance for Adjusted EPS growth to 7-9% through 2027 underscores the company's optimistic outlook and commitment to delivering value to shareholders.Story continuesKey financial details from the income statement include a total revenue of $12,668 million and an operating margin of $2,504 million. The balance sheet shows a strong liquidity position with $1,426 million in cash and cash equivalents. Cash flow statements indicate net cash provided by operating activities at $3,034 million.Important metrics such as Adjusted EBITDA, which reached $2,812 million, and Diluted EPS, which increased to $0.34, are essential for understanding the company's operational performance and profitability. These metrics are particularly relevant to investors as they provide a clearer picture of the company's financial health, excluding one-time items and non-operational influences.Looking ahead, AES is on track to achieve its target of signing 14 to 17 GW of new renewable contracts from 2023 through 2025, with expectations to add 3.6 GW of new projects in 2024. The company's strategic accomplishments and financial resilience in 2023 set the stage for continued growth and success in the evolving energy landscape.For a more detailed analysis and commentary on AES's financial performance and strategic direction, interested parties are encouraged to join the conference call scheduled for February 27, 2024, at 10:00 a.m. Eastern Time.For more information and to access the full earnings report, please visit www.aes.com.Explore the complete 8-K earnings release (here) from The AES Corp for further details.This article first appeared on GuruFocus.

GuruFocus.com

AES Reports Record 2023 Performance and Raises Long-Term Guidance

https://finance.yahoo.com/news/aes-reports-record-2023-performance-225206648.html

cb16445a-0b14-3d31-be03-3d312b9d2aff

AES

The AES Corporation (NYSE:AES) Q4 2023 Earnings Call Transcript February 27, 2024The AES 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 welcome to the AES Corporation Fourth Quarter and Full Year 2023 Financial Review call. My name is Elliot and I'll be coordinating your call today. [Operator Instructions]. I'd now like to hand over to Susan Harcourt, Vice President of Investor Relations. The floor is yours. Please go ahead.Susan Harcourt: Thank you, operator. Good morning and welcome to our fourth quarter and full year 2023 financial review call. Our press release, presentation and related financial information are available on our website at aes.com. Today we will be making forward looking statements. There are many factors that may cause future results to differ materially from these statements, which are disclosed in our most recent 10-K and 10-Q filed with the SEC. Reconciliations between GAAP and non-GAAP financial measures can be found on our website along with the presentation. Joining me this morning are Andres Gluski, our President and Chief Executive Officer, Steve Coughlin, our Chief Financial Officer and other senior members of our management team. With that, I will turn the call over to Andres.Andres Gluski: Good morning, everyone, and thank you for joining our fourth quarter and full year 2023 financial review call. Today I will discuss our 2023 strategic and financial performance. Steve Coughlin, our CFO, will discuss our financial results and outlook in more detail shortly. Beginning on slide three, 2023 was our best year ever as we met or exceeded all of our strategic and financial objectives, including signing a record of 5.6 gigawatts of new PPAs, putting us well on track to achieve 14 to 17 gigawatts of new signings through 2025, completing 3.5 gigawatts of construction, exceeding the target we laid out and doubling our additions compared to 2022, delivering adjusted EBITDA of $2.8 billion in the top end of our guidance range and adjusted EBITDA with tax attributes of $3.4 billion, achieving adjusted EPS of $1.76 and parent-free cash flow of just over $1 billion, both beyond the top end of our guidance ranges, and realizing asset sales proceeds of $1.1 billion, significantly above our target of $400 million to $600 million.Story continuesTurning to slide four, despite the backdrop of rising interest rates and supply chain challenges across the sector, we demonstrated that our business model is strong, resilient, and well-positioned. Demand across the sector has never been stronger, and in this context, I'm pleased to announce that we are raising our expected annual growth rate for adjusted EBITDA and adjusted EPS. We now expect our adjusted EBITDA to grow at an annual rate of 5% to 7% and adjusted EPS to grow at 7% to 9%, both through 2027. We are also reaffirming all of our other existing guidance. I can definitely say that I have never felt better about the outlook for this business. Turning to power purchase agreement signings on slide five, we signed 5.6 gigawatts of new PPAs in 2023, more than any other year in our company's 43-year history, putting us well on track to sign 14 to 17 gigawatts of new renewable contracts from 2023 through 2025.Today, our backlog of projects with signed PPAs is 12.3 gigawatts, the vast majority of which will be commissioned over the next three years. It is worthwhile to note that all of the projects in our contracted backlog remain on track for timely completion, consistent with our historical performance. Moving to slide six, I'd like to highlight that the largest segment of our new business is with corporate customers. In fact, in 2023, nearly 60% of the 3.5 gigawatts of projects we brought online were to serve corporate customers and large technology companies in particular. Bloomberg New Energy Finance has consistently named AES as one of the top two providers of renewable energy to corporations worldwide, and our business continues to expand, particularly given our focus on serving the power needs from data centers which are powering the rapid growth of AI.We are well positioned to serve this customer segment for a number of reasons. First, we have been on the forefront of working directly with these technology companies to provide innovative solutions to achieve specific renewable energy profiles. Back in 2021, we were the first company to introduce hourly match renewable energy, and today we are working with all of the hyperscale data center companies to provide solutions that are tailored for their renewable energy and sustainability goals. Second, we have a strong track record of delivering our projects on time, on budget, while meeting the unique needs of our customers, which I will cover in more detail momentarily. Our record of reliability is something that is increasingly recognized and valued by our customers.And third, we have the scale and the pipeline to address growing demand from data centers, which is estimated to more than double by 2030. With over 50 gigawatts of projects in our development pipeline and advanced interconnection queue positions in the most relevant markets in the U.S., we are particularly well positioned to meet the energy demand of technology customers. Turning to slide seven, our success with corporate customers combined with our improved efficiency in development and construction have increased the returns that we have seen across our renewable portfolio. As a result, we are upping our U.S. return ranges by 200 basis points to 12% to 15% on a levered after-tax cash basis. We are seeing even higher returns internationally.With strong market demand in AES's leading position, we are able to be increasingly selective about the projects we build with a focus on those with the best overall financial benefits. Next, turning to construction on slide eight, our ability to complete projects on time and on budget has become a major differentiator for AES. Not only is this something that our customers highly value, but it is also a pillar of our business model and ensures that our realized financial returns are on average equal to or better than our projections. At the time of PPA signings, we lock in contractual arrangements for all major equipment, EPC, and long-term financing, which we hedge to ensure no interest rate exposure. At the same time, we systematically embed flexibility in our supply chain to safeguard against a variety of scenarios.We also have a multi-year strategic arrangement with top suppliers, including Fluence, who we see as having the most competitive product in the industry. More than half of our solar projects in recent years have co-located storage components, and our relationship with Fluence helped us to have the best on-time project completion rate in the industry. In 2024, we feel very confident in our ability to add 3.6 gigawatts of new projects, including 2.2 gigawatts in the U.S. We currently have 100% of the major equipment for these projects contractually secured and nearly 80% already on site. Now turning to our utilities, beginning on slide nine. In 2023, we achieved important milestones at our U.S. utilities that will drive future growth, continue decarbonization, and improvement in customer service.At AES Ohio, we put in place a new regulatory framework, and at AES Indiana, we reached a unanimous settlement for our first-rate case since 2018. As a result, investments are on track for the rate-based growth in the high teens at both utilities, and we now have close to 70% of our planned investments through 2027 already approved in regulatory orders. Turning to slide 10. At AES Ohio, we are embarking on the largest investment program that this utility has ever seen, which includes the expansion and enhancement in our transmission assets. With over 25% rate-based growth per year, this is one of the fastest transmission growth rates in the country. We also recently filed for regulatory approval of the second phase of our smart grid plan, which upgrades our grid to improve service quality and customer experience.Turning to slide 11. At AES Indiana, we continue to invest to improve service quality and greener generation mix. I am happy to say that we now have regulatory approval for the build-out of all named renewable projects at AES Indiana, encompassing 106 megawatts of wind, 445 megawatts of solar, and 245 megawatts of energy storage. As we continue to invest in our customer experience, service quality, and sustainability at both of our U.S. utilities, two core principles have guided our growth plan. First is customer affordability as we address much-needed investments. We currently have the lowest residential rate in both states, which we expect to maintain throughout this period of growth. And second is to prioritize the timely recovery of our investments through existing mechanisms and programs.Across both utilities, we now anticipate approximately 75% of the growth capital to be deployed under such mechanisms, which substantially reduces regulatory lag. Finally, turning to slide 12. Last year, we set an asset sale proceeds target of 400 million to 600 million. We greatly exceeded this range with 1.1 billion of gross proceeds. These transactions not only put a high valuation marker on our businesses, but also put us well on our way towards achieving our asset sales goal of $2 billion through 2025 and $3.5 billion through 2027. Our success this past year provides us with a cushion, and we expect 2024 to be another strong year. With that, I would like to turn the call over to our CFO, Steve Coughlin.An executive in a power plant control booth overseeing the efficient energy production.Steve Coughlin: Thank you, Andres, and good morning, everyone. Today, I will discuss our 2023 results and capital allocation, our 2024 guidance, and our updated expectations through 2027. As Andres mentioned, 2023 was AES's best year on record as we met or exceeded all of our strategic and financial targets. We beat our adjusted EPS guidance range of $1.65 to $1.75 and our parent-free cash flow guidance range of $950 million to $1 billion. We also recorded strong adjusted EBITDA well above the midpoint of our inaugural guidance range of $2.6 billion to $2.9 billion. Turning to slide 14, full year 2023 adjusted EBITDA with tax attributes was $3.4 billion versus $3.2 billion in 2022, driven primarily by contributions from new renewables projects, as well as the recovery of prior year's purchase power costs at AES Ohio included as part of the ESP4 settlement.These drivers were partially offset by lower contributions from the energy infrastructure SBU. Turning to slide 15, adjusted EPS was $1.76 in 2023 versus $1.67 in 2022. Drivers were similar to those for adjusted EBITDA with tax attributes. In addition, there was a $0.06 headwind from parent interest on higher debt balances primarily used to fund new renewables projects. I'll cover our results in more detail over the next four slides, beginning with the Renewable Strategic Business Unit or SBU on slide 16. Higher adjusted EBITDA with tax attributes at our renewables SBU was primarily driven by contributions from the 3.5 gigawatts of new projects that came online in 2023, as well as higher margins in Columbia, but partially offset by the sell down of select U.S. renewable operating assets.At our utilities SBU, higher adjusted PTC was primarily driven by the recovery of prior year's purchase power costs at AES Ohio included as part of the ESP4 settlement, as well as rate-based growth in the U.S. Lower adjusted EBITDA at our energy infrastructure SBU reflects significant LNG transaction margins in 2022, lower margins in Chile, and the sale of a minority interest in our Southland combined cycle assets. These drivers were partially offset by the higher revenues recognized from the accelerated monetization of the PPA at our Warrior Run coal plant. Finally, at our new energy technologies SBU, higher adjusted EBITDA reflects improved results at Fluence, which achieves positive adjusted EBITDA in their fiscal fourth quarter of 2023.Fluence also guided to positive adjusted EBITDA for their full fiscal year 2024. Now let's turn to how we allocated our capital last year on slide 20. Beginning on the left-hand side, Sources reflect $3 billion of total discretionary cash. This includes parent-free cash flow of just over $1 billion, which increased nearly 11% from the prior year to just above the top end of our guidance. We also significantly surpassed our asset sale target with $750 million in net asset sales proceeds to the AES parent after subsidiary level debt repayment, reinvestment, and taxes. And we issued $900 million of parent debt in May of last year. Moving to Uses on the right-hand side, we invested more than $2.1 billion in growth at our subsidiary, of which approximately two-thirds was in the U.S. We also allocated more than $500 million of discretionary cash to our dividends.Overall, I'm extremely pleased with our financial performance throughout 2023. Now let's turn to our guidance and expectations, beginning on slide 21. Today, we're initiating 2024 adjusted EBITDA with tax attributes guidance of $3.6 billion to $4 billion, driven by over $500 million in contributions from new renewables projects and from rate-based growth at our U.S. utilities. We have also incorporated a $200 million partially offsetting impact from asset sales we either closed in 2023 or plan to close this year. Excluding the $1 billion in tax attributes we expect to recognize in 2024, adjusted EBITDA is expected to be $2.6 billion to $2.9 billion. The increase in tax attributes versus the prior year is partially due to our continued use of tax credit transfers, which results in earlier recognition of tax credit than typical tax equity structures.In addition, last year's increase in new project completions will drive higher tax attribute recognition in 2024. As a reminder, we will recognize approximately one-third of tax attributes generated on 2023 projects in the 2024 fiscal year. Looking beyond this year, our head start on asset sales gives us greater visibility toward our longer-term growth and puts downward pressure on our capital budget. We expect EBITDA to increase each year through the remainder of our long-term guidance period. Turning to slide 22, we expect 2024 adjusted EPS of $1.87 to $1.97, which represents a 9% increase year-over-year and puts us on track to achieve our 7% to 9% long-term growth target through 2025. Growth will be primarily driven by our renewables and utilities businesses and will be partially offset by higher parent interest.We also expect an 8% headwind from asset sales. Our construction program this year is more evenly spread than in recent years. As a result, we expect approximately 40% of our earnings to be recognized in the first half of the year and 60% in the second half. And we will have greater visibility throughout the year into our expected construction completion. Turning to slide 23, as Andres mentioned, our very strong market position in providing tailored solutions to corporate clients, including large data centers, has allowed us to realize higher returns on our renewable’s projects. In addition, as our renewables business continues to scale, we anticipate further realization of productivity and scale benefits. Based on these factors and our 2023 results, we now expect AES's U.S. renewables returns to be in the 12% to 15% range.These higher returns in the U.S., along with productivity benefits, are directly accreted to our earnings and cash flow, and as a result, we are increasing our expected long-term adjusted EBITDA growth rate to 5% to 7% and our long-term adjusted EPS growth rate to 7% to 9% through 2027 off of base of our 2023 guidance midpoint. Now, turning to our 2024 parent capital allocation plan on slide 24, beginning with approximately $3.1 billion of Sources on the left-hand side. Parent free cash flow for 2024 is expected to be around $1.05 billion to $1.15 billion. We expect to generate $900 million to $1.1 billion of net asset sale proceeds this year. By the end of this year, we expect to be more than halfway toward the $3.5 billion gross asset sales target we announced on our third quarter earnings call.Although we expect an increase of approximately $1 billion of parent debt this year, our business is well insulated from changes in interest rates. Our new projects are funded primarily with fixed rate or long-term hedged self-amortizing debt with tenors similar to the length of our PPAs, and more than 80% of our outstanding debt is non-recourse to AES Corp. Our exposure from floating rates and future issuances is managed with nearly $8 billion in outstanding hedging. Looking at the impact of a 100 basis point shift in rates on our future issuances, refinancing’s and outstanding U.S. floating rate debt, we have only one penny of EPS exposure from interest rates in 2024. Now to the Uses on the right-hand side. We plan to invest approximately $2.6 billion in new growth, of which about 85% will be allocated to growing our renewables portfolio and utility rate base.More than 90% of this will be directed into the U.S., with the remainder going to growth projects in Chile and Panama. We expect to allocate approximately $500 million to our shareholder dividend, which reflects the previously announced 4% increase. Turning to slide 25, our long-term sources of parent capital through 2027 reflect the accelerated asset sales target we introduced on our third quarter call. We also expect higher organic cash generation as a result of our increased long-term growth rates. As a reminder, we will not issue any new equity until 2026 at the earliest, and we'll only do so in a way that creates value on a per share basis. Now to slide 26. Uses through 2027 reflect more than $7 billion of investment in our subsidiaries, primarily to grow our renewables and utilities businesses.We also expect to allocate more than $2 billion to our dividend. Given our surplus of attractive investment opportunities and our desire to minimize equity issuance as a source of capital, we now expect to grow our dividend at 2% to 3% annually beyond 2024. We believe this provides an optimal balance between an already attractive dividend yield and strong earnings and cash flow growth throughout our planned period. In summary, 2023 was an extraordinary year for AES. We demonstrated our ability to adapt to the current market and execute on our growth commitments while we further advanced our competitive position. As we continue to perfect and scale our renewables machine, we expect to have another record year in 2024 and to deliver on our now higher long-term growth target.We have positioned AES to achieve our strategic priorities and grow our business in a way that's highly value accretive to our shareholders. With that, I'll turn the call back over to Andres.Andres Gluski: Thank you, Steve. In summary, 2023 was our best year ever as we met or exceeded all of our strategic and financial objectives across our guidance metrics, PPA signings, construction completions, and asset sales. We are seeing strong demand for renewables across the sector, particularly due to the unprecedented demand from data centers. As a result, we are not only upping our U.S. project return ranges, but increasing our expected average annual growth rates for adjusted EBITDA and adjusted earnings per share through 2027. Finally, our significant success with asset sales to date, as well as the outlook for the near future, gives us great comfort in our long-term funding plans. With that, I would like to open the call for questions.See also 12 Things Retirees Need to Know About Social Security and Taxes and 11 Best Brewery and Distillery Stocks to Buy Now.To continue reading the Q&A session, please click here.

Insider Monkey

The AES Corporation (NYSE:AES) Q4 2023 Earnings Call Transcript

https://finance.yahoo.com/news/aes-corporation-nyse-aes-q4-132835615.html

25a8cedb-54fb-31de-b5ea-7ab20795a4c3

AES

In this article, we will take a look at the 15 worst performing stocks in S&P 500. To skip our analysis of the recent trends and market activity, you can go directly to see the 5 Worst Performing Stocks in S&P 500.The S&P 500 Index was up nearly 6.9% year-to-date, as of February 26, and continues its rally that started in late October. The rally was supported by investor optimism about potential interest rate cuts in 2024 as the Federal Reserve’s battle to control inflation seems to be bearing fruit. Recently, Goldman Sachs lifted its S&P 500 index year-end target to 5200 which represents further 4% growth for the Index based on current levels. Goldman Sachs has raised its forecast from 4700 which was announced in its 2024 Outlook report in December.Goldman Sachs is forecasting an 8% profit increase for the companies in the S&P 500 index, led by strong mega-cap profit margins and improved macroeconomic outlook in the country. David Kostin, lead strategist at Goldman Sachs, expects the earnings strength of mega-cap stocks, especially those in the Magnificent 7, boosting aggregate S&P 500 profits in 2024. Kostin believes that strong global GDP and a “slightly weaker” dollar will lead to positive EPS.Wall Street added several consecutive weeks of market recovery since the last few days of October. The “Magnificent Seven”, which includes Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla, have played a significant role in this bull run. These stocks benefitted heavily from the significant breakthroughs in generative artificial intelligence. For instance, GPU-maker NVIDIA Corporation (NASDAQ:NVDA) is up more than 430% since the beginning of 2023 and nearly 63% year-to-date, fueled by exponential growth in its revenue.Our list of 15 worst performing stocks in S&P 500 includes companies from sectors that have been severely impacted by the recent adversity in the stock markets. The list includes companies from nine different sectors with a notable absence – the technology sector. In addition to suffering from macroeconomic and industry-wide market adversity, the stocks on our list of 15 worst performing stocks in S&P 500 have suffered from individual negative catalysts as well. For instance, Archer Daniels Midland Company (NYSE:ADM), the second worst performing stock in S&P 500 year-to-date, is reeling from an accounting scandal as it put its CFO on an administrative leave in late January which saw its stock plummet 24% in a single day.Story continuesTo recap, the Federal Reserve rapidly increased the interest rates beginning from near zero before March 2022 to the current 5.25%-5.50% range, the highest benchmark rate in the country in 22 years. This led to the failure of several banks in the United States, including the collapse of Silicon Valley Bank with $209 billion assets, and Signature Bank with $110 billion assets, in March, and First Republic Bank with $229 billion assets in May 2023.https://www.insidermonkey.com/blog/5-best-performing-stocks-in-the-last-12-months-1184205/Image by Gerd Altmann from PixabayMethodologyTo create our list of 15 worst performing stocks in S&P 500, we first ranked the S&P 500 stocks based on their year-to-date performance. The stocks in this article have been ranked based on their year-to-date performance, with the worst performing stock ranked the highest. We have also provided hedge fund sentiment data for these stocks for reference.Data from around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2023 was used to identify the number of hedge funds that hold stakes 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). That’s why we pay very close attention to this often-ignored indicator.15. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)YTD Performance as of February 23: -16.78%Number of Hedge Fund Holders: 31Deerfield, Illinois-based Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is an integrated healthcare, pharmacy, and retail leader with more than 12,500 locations across the U.S., Europe, and Latin America. Its portfolio of consumer brands includes Walgreens, Boots, Duane Reade, the No7 Beauty Company, and Benavides in Mexico.On February 7, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) announced that it has sold shares of Cencora, Inc. (NYSE:COR) for proceeds of $942 million. The transaction reduces the company’s ownership of Cencora, Inc. (NYSE:COR) common stock from 15% to nearly 13%. The company intends to use the proceeds for debt paydown and general corporate purposes.Earlier on January 4, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) announced a 48% reduction in its quarterly dividend payment to $0.25 per share. The company, and its predecessor company, Walgreen Co., have paid a dividend in 365 straight quarters (91 years).14. The AES Corporation (NYSE:AES)YTD Performance as of February 23: -16.88%Number of Hedge Fund Holders: 35Arlington, Virginia-based The AES Corporation (NYSE:AES) is a leading global energy company providing green and smart energy solutions. It owned and/or operated a generation portfolio of nearly 33.2 GW as of November 2023.On January 18, The AES Corporation (NYSE:AES) announced the completion of 3.5 GW of renewables projects in 2023, nearly doubling the capacity constructed compared to 2022. The projects completed in 2023 included 1.6 GW solar, 1.3 GW wind and 0.6 GW energy storage projects.On February 26, the Board of Directors of The AES Corporation (NYSE:AES) declared a quarterly common stock dividend of $0.1725 per share which translates to an annualized dividend yield of 4.31%, based on the latest share price.13. FMC Corporation (NYSE:FMC)YTD Performance as of February 23: -16.92%Number of Hedge Fund Holders: 31Philadelphia, Pennsylvania-based FMC Corporation (NYSE:FMC) is a global agricultural sciences company providing products and solutions across biologicals, crop nutrition, digital and precision agriculture. It employs nearly 6,600 personnel at more than 100 sites worldwide.On February 5, FMC Corporation (NYSE:FMC) released its financial results for Q4 2023. It generated a revenue of $1.15 billion and a net income of $1.1 billion which translates to a normalized EPS of $1.07.FMC Corporation (NYSE:FMC) currently pays a regular quarterly dividend of $0.58 per share which represents a dividend yield of 4.50% based on the latest share price, the third highest on our list of 15 worst performing stocks in S&P 500.12. First Solar, Inc. (NASDAQ:FSLR)YTD Performance as of February 23: -17.06%Number of Hedge Fund Holders: 47Tempe, Arizona-based First Solar, Inc. (NASDAQ:FSLR) is a leading American solar technology company and global provider of eco-efficient solar modules. Its thin film photovoltaic (PV) modules provide a competitive, high-performance, lower-carbon alternative to conventional crystalline silicon PV panels.On January 11, First Solar, Inc. (NASDAQ:FSLR) inaugurated its new facility in Tamil Nadu, India, the country’s first fully vertically integrated solar manufacturing plant. The facility has an annual nameplate capacity of 3.3 GW and marks the company’s sixth operational factory.On February 14, RBC Capital analyst Chris Dendrinos initiated coverage of First Solar, Inc. (NASDAQ:FSLR) shares with a price target of $195 and an ‘Outperform’ rating for its shares.11. Carnival Corporation (NYSE:CCL)YTD Performance as of February 23: -17.85%Number of Hedge Fund Holders: 41Miami, Florida-based Carnival Corporation (NYSE:CCL) is a global cruise company and one of the largest vacation companies in the world. Its portfolio comprises of nine leading cruise brands including Carnival Cruise Lines, Holland America Line, Princess Cruises, Cunard, AIDA Cruises, and Costa Cruises, among others.On December 21, Carnival Corporation (NYSE:CCL) released the financial results for the quarter ended November 30, 2023. Its revenues increased by 41% y-o-y to $5.4 billion, while it generated a net loss of $48 million compared to a net loss of $1.6 billion. The normalized EPS for the quarter was recorded at -$0.07, beating the consensus by $0.06.As of Q4 2023, Carnival Corporation (NYSE:CCL) shares were held by 41 of the 933 hedge funds tracked by Insider Monkey, with the total hedge fund holdings valued at $1.5 billion. Two Sigma Advisors was the largest hedge fund shareholder with ownership of 16.1 million shares valued at $299 million.Carnival Corporation (NYSE:CCL) and Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) are the only two travel services stocks on our list of 15 worst performing stocks in the S&P 500.10. Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH)YTD Performance as of February 23: -19.31%Number of Hedge Fund Holders: 31Miami, Florida-based Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) is a leading global cruise company that operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. Its fleet comprises of 32 ships with more than 65,500 berths providing access to nearly 700 destinations globally.On January 31, Susquehanna analyst Christopher Stathoulopoulos raised the price target for Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) shares from $14 to $20 and maintained a ‘Neutral’ rating for the shares. The target price represents a potential upside of 23.69% based on the latest share price.As of Q4 2023, 31 of the 933 hedge funds tracked by Insider Monkey were long Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH), holding shares worth $397 million. Its largest hedge fund shareholder was John W. Rogers’ Ariel Investments with ownership of 6.3 million shares valued at $126 million.9. Humana Inc. (NYSE:HUM)YTD Performance as of February 23: -20.73%Number of Hedge Fund Holders: 86Based in Louisville, Kentucky, Humana Inc. (NYSE:HUM) is a leading U.S. health insurer and healthcare services company. Operating through two segments, Insurance and CenterWell, the company had nearly 17 million members in its medical benefit plans, as well as nearly 5 million members in its specialty products.On January 25, Humana Inc. (NYSE:HUM) released its financial results for Q4 2023. Its revenue went up by 32% y-o-y to $336 million while it posted a net loss of $540 million. Its normalized EPS of -$0.11 missed consensus estimates by $1.03.As of Q4 2023, 86 hedge funds held Humana Inc. (NYSE:HUM) shares, the highest on our list of 15 worst performing stocks in S&P 500. Ken Griffin’s Citadel Investment Group was the lead hedge fund shareholder with ownership of 1.5 million shares valued at $688 million.8. Tesla, Inc. (NASDAQ:TSLA)YTD Performance as of February 23: -22.74%Number of Hedge Fund Holders: 82Based in Austin, Texas, Tesla, Inc. (NASDAQ:TSLA), designs, develops, manufactures, sell and leases fully electric vehicles and energy generation and storage solutions. Its current portfolio of products includes Model 3 and Model S sedans, Model Y, Model X SUVs, and Cybertruck, while upcoming products include Tesla Roadster and Tesla Semi – a light commercial vehicle.On January 24, Tesla, Inc. (NASDAQ:TSLA) released its financial results for Q4 2023. Its revenue increased by 3% y-o-y to $24.3 billion, while net income surged by 115% y-o-y to $3.7 billion. Its normalized EPS of $0.71 missed consensus estimates by $0.03.Tesla, Inc. (NASDAQ:TSLA) ranks highest on our list of 15 worst performing stocks in S&P 500 based on the value of shares held by hedge funds. As of Q4 2023, 82 hedge funds owned its shares worth $6.3 billion. In its Q4 2023 investor letter, Tsai Capital Corporation, an investment management firm, made the following comments about Tesla, Inc. (NASDAQ:TSLA):“Tesla has significant and underappreciated competitive advantages across multiple verticals including electric vehicles, software and energy storage. Misunderstood by much of Wall Street – and consequently a favorite of short sellers – Tesla continues to grow rapidly and increase its lead over the competition while delighting consumers in the process. [. . .] While we expect competition for EVs to intensify and for Tesla to lose market share over time, we also believe the company will increase production and deliveries from approximately 1.8 million vehicles today to approximately 15 million vehicles in 2030 and further its lead in autonomous driving capability. In fact, we expect Tesla will eventually license its autonomous driving software, creating high-margin (70-80%), recurring licensing revenue. Tesla is also one of only two companies that dominate the energy storage market, which has the potential to grow to several hundred billion in revenue as power plants around the world increase their focus on renewable energy.”7. The Boeing Company (NYSE:BA)YTD Performance as of February 23: -22.95%Number of Hedge Fund Holders: 69Founded in 1916, The Boeing Company (NYSE:BA) is one of the world's largest aerospace companies and a leading provider of commercial airplanes, defense, space and security systems, and global services.On January 31, The Boeing Company (NYSE:BA) released its financial results for Q4 2023. Its revenue increased by 10% y-o-y to $22 billion while net loss shrunk by 95% y-o-y to $30 million. Its normalized EPS of -$0.47 surpassed consensus estimates by $0.32.Following the earnings release, RBC Capital lowered the price target for The Boeing Company (NYSE:BA) shares to $260 from $285 and maintained an ‘Outperform’ rating for its shares.6. Charter Communications, Inc. (NASDAQ:CHTR)YTD Performance as of February 23: -22.96%Number of Hedge Fund Holders: 69Stamford, Connecticut-based Charter Communications, Inc. (NASDAQ:CHTR) is a leading broadband connectivity company and cable operator serving more than 32 million customers in 41 states through its Spectrum brand. It offers a full range of residential and business services including Spectrum Internet®, TV, Mobile and Voice.On February 2, Charter Communications, Inc. (NASDAQ:CHTR) released its financial results for Q4 2023. Its revenue increased by 0.3% y-o-y to $13.7 billion while it generated a net income of $1.1 billion. Its normalized EPS of $7.07 missed consensus estimates by $1.77.As of Q4 2023, Charter Communications, Inc. (NASDAQ:CHTR) shares were owned by 69 of the 933 hedge funds tracked by Insider Monkey, for a total value of $5.3 billion. Harris Associates was the largest shareholder with ownership of 5.2 million shares valued at $2.0 billion. Click to continue reading and see 5 Worst Performing Stocks in S&P 500. Suggested Articles:20 Most Influential Email Newsletters in 202414 Best S&P 500 Dividend Stocks To Invest In 202412 $10 Stocks That Will TripleDisclosure: None. 15 Worst Performing Stocks in S&P 500 is originally published on Insider Monkey.

Insider Monkey

15 Worst Performing Stocks in S&P 500

https://finance.yahoo.com/news/15-worst-performing-stocks-p-081312824.html

da0dc870-7910-3828-b6a1-3e3f1194622e

AFL

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.Aflac in FocusBased in Columbus, Aflac (AFL) is in the Finance sector, and so far this year, shares have seen a price change of -2.53%. Currently paying a dividend of $0.5 per share, the company has a dividend yield of 2.49%. In comparison, the Insurance - Accident and Health industry's yield is 2.49%, while the S&P 500's yield is 1.59%.In terms of dividend growth, the company's current annualized dividend of $2 is up 19% from last year. Aflac has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 12.68%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Aflac's current payout ratio is 27%. This means it paid out 27% of its trailing 12-month EPS as dividend.Earnings growth looks solid for AFL for this fiscal year. The Zacks Consensus Estimate for 2024 is $6.43 per share, with earnings expected to increase 3.21% from the year ago period.Bottom LineFrom greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.Story continuesFor instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that AFL is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).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 reportAflac Incorporated (AFL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Aflac (AFL) is a Great Dividend Stock Right Now

https://finance.yahoo.com/news/why-aflac-afl-great-dividend-164505924.html

5f8b40ba-c258-385e-9021-6a10f9081280

AFL

eHealth, Inc. EHTH is set to report its fourth-quarter 2023 results on Feb 27, before the opening bell. It is expected to have witnessed increased Medicare Advantage members and commission revenues in the December quarter.Earnings Surprise HistoryeHealth’s earnings beat the consensus estimate in one of the prior four quarters and missed on the other three occasions, with the average surprise being negative 1.1%. This is depicted in the graph below:eHealth, Inc. Price and EPS SurpriseeHealth, Inc. Price and EPS SurpriseeHealth, Inc. price-eps-surprise | eHealth, Inc. QuoteIn the last reported quarter, the leading online health insurance marketplace reported an adjusted operating loss per share of $1.54, wider than the Zacks Consensus Estimate of a loss of 70 cents due to higher operating costs and lower enrollment volume in the Individual, Family, and Small Business segment. The negatives were partially offset by favorable member retention and better-than-expected cash collections.Now, let’s see how things have shaped up prior to the fourth-quarter earnings announcement.Q4 Factors to NoteeHealth’s fourth quarter results are expected to benefit from higher Medicare Part D and Small Business commission revenues. As such, the Zacks Consensus Estimate for fourth-quarter total commission revenues is pegged at almost $210 million, signaling 23.1% year-over-year growth.The Zacks Consensus Estimate for fourth-quarter other revenues indicates a 36% increase from the year-ago period. The consensus mark for fourth-quarter overall Individual, Family and Small Business segment revenues hints at a 30% jump from the year-ago quarter.These are likely to have positioned the company for top-line growth in the fourth quarter. The Zacks Consensus Estimate for total revenues is pegged at $244.4 million, indicating a 24.5% increase from the year-ago level.The Individual, Family and Small Business segment is expected to have continued witnessing growth in profits in the fourth quarter. Also, in its preliminary results, EHTH said that its Medicare witnessed enrollment growth in the to-be-reported quarter. The segment’s gross margin is expected to have increased, boosting profit levels.Story continuesThe company estimates Medicare Advantage members to have jumped 22% year over year in the fourth quarter. It also anticipates Total Medicare approved members to have risen 16% year over year. eHealth’s fourth quarter adjusted EBITDA is expected to be within $65-$70 million, up from the year-ago level of $49.5 million, on the back of its transformation initiatives.The factors stated above are likely to have led to year-over-year growth in profits. The Zacks Consensus Estimate for fourth-quarter earnings per share of $1.94 suggests a 70.2% increase from the prior-year level of $1.14. The estimate remained stable over the past week.However, the company is expected to have encountered higher operating costs and expenses due to continued growth in customer care and enrollment costs, as well as general and administrative expenses. This is likely to have affected EHTH’s profit growth levels, making an earnings beat uncertain. For full year 2023, the company expects operating cash outflow to be $7 million.Earnings WhispersOur proven model does not conclusively predict an earnings beat for eHealth this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.Earnings ESP: The company currently has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate currently stands at an earnings of $1.94 per share, in line with the Zacks Consensus Estimate.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: eHealth currently carries a Zacks Rank #3.You can see the complete list of today’s Zacks #1 Rank stocks here.How Other Stocks PerformedHere are some companies from the broader Finance space that have already reported earnings for the December quarter: Aflac Incorporated AFL, Unum Group UNM and Lincoln National Corporation LNC.Aflac reported fourth-quarter 2023 adjusted earnings of $1.25 per share, missing the Zacks Consensus Estimate by 15%. Higher benefits and claims, lower adjusted net investment income and declining profit levels from the U.S. businesses affected AFL’s earnings. However, improving profit levels in the Japan segment partially offset the negatives.Unum Group’s fourth-quarter 2023 operating net income of $1.79 per share missed the Zacks Consensus Estimate by 3.8% due to higher policy benefits, commissions, interest and debt expenses and weaker performance in Unum International and Colonial Life. The negatives were partly offset by strong operations in the Unum U.S. unit.Lincoln National reported fourth-quarter 2023 adjusted earnings of $1.45 per share, which outpaced the Zacks Consensus Estimate by 9.9% on the back of solid contributions from the Group Protection business, a strong fixed annuity business and positive flows in the Retirement Plan Services unit. However, the upside was partly offset by changes in market risk benefits.Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportLincoln National Corporation (LNC) : Free Stock Analysis ReportAflac Incorporated (AFL) : Free Stock Analysis ReportUnum Group (UNM) : Free Stock Analysis ReporteHealth, Inc. (EHTH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Exploring the Driving Forces Behind eHealth's (EHTH) Q4 Earnings

https://finance.yahoo.com/news/exploring-driving-forces-behind-ehealths-170200639.html

3cd86feb-8884-34d1-8c09-f9eea8aaa40c

AFL

Originally published on Aflac NewsroomNORTHAMPTON, MA / ACCESSWIRE / March 6, 2024 / When O'Shea Guillory stepped off the elevator at the Egleston campus of Children's Healthcare of Atlanta, it was the first time she connected Aflac with her son's battle against sickle cell disease."The butterfly-adorned elevator doors opened to the Aflac Cancer and Blood Disorders Center, and there was a portrait of long-time Aflac Chairman, CEO and President Dan Amos smiling back at me," O'Shea recalled.The miraculous story of O'Shea's twin sons - Sawyer, who was diagnosed with the most common and severe form of sickle cell, hemoglobin SS, and Saxton who was a perfect match for his brother's lifesaving bone marrow transplant - has touched many.The journey with an underrepresented diseaseWhen Sawyer was diagnosed, O'Shea asked the doctor, "Where would you take your child if you were in our position?" The response was Children's Healthcare of Atlanta (CHOA). The Guillory family cancelled their plans to move from Brunswick, Georgia, to Texas and instead relocated to the Atlanta area.Through grueling treatments that often required complete isolation, the Guillory family relied on the support and medical expertise found at CHOA and the Aflac Cancer and Blood Disorders Center. Additionally, Sawyer and Saxton found comfort in My Special Aflac Ducks®. In fact, the family served as advisors as the company adapted its robotic, comforting companion - originally designed for children with cancer - so it could also be used for children with sickle cell.According to the CDC, sickle cell is a common disease affecting approximately 100,000 Americans and occurring in about 1 in every 365 Black or African American births.1"I am proud to say Aflac is helping close the gap for sickle cell," said Buffy Swinehart, senior manager, Corporate Social Responsibility. "In addition to the financial support we've given to this underfunded disease through the Aflac Cancer and Blood Disorders Center, which treats more children with sickle cell than anywhere else in the country,2 we are helping to educate and drive awareness of the disease. As part of Aflac's continued investment in the My Special Aflac Duck program, we are doubling down on our commitment to families like the Guillorys."Story continues"The amount of care, love and compassion our family received at the Aflac Cancer and Blood Disorders Center was life-changing," said O'Shea. "My son was cured, and I knew I wanted to do whatever I could to give back."And she did just that, starting with a fundraiser for Sawyer's birthday, where O'Shea raised $5,000. She still wanted to do more, so she connected with Aflac, and her life began to pivot.Joining the Aflac flock"I worked in technology for years and was very happy with my job and career, but I wanted to put my skills to use in the area that tugged at my heart," said O'Shea. "I knew there were other families going through the same thing we experienced, and I prayed for them to be okay mentally and physically. I didn't want them to have to worry about financial burdens."O'Shea wrote down her vision and plan to offer her skillset to CHOA and Aflac and, in 2021, was invited to attend Aflac's annual meeting of leading sales agents and brokers. Her goal was to get in front of Aflac Chairman and CEO Dan Amos, tell him how Aflac had touched her heart and explain some product ideas she thought the company should create that would help families facing diseases like sickle cell.As she waited to be taken backstage, she heard a big voice coming from the podium. She peeked inside the conference room doors, and it was then Aflac U.S. President Teresa White going over successful sales numbers and other accomplishments from the year. Serendipitously, O'Shea was ushered backstage as Teresa was coming off the stage."Meeting her was such a magical moment. I told her what an honor it was, and she spoke life into me," said O'Shea. "She gave me the courage to speak up, state my case and apply for a position at the company. And that's what I did."O'Shea joined Aflac in 2023 and today, she is an Associate Product Manager for Aflac, where she uses her talents and experience to develop group products that will directly help the families who need it most."I am so happy to officially be an Aflac employee. It's been almost a full year now, but I knew on day one that this is where I am supposed to be," said O'Shea. "I am so excited for the future. Sawyer has been cured, both my sons are healthy, and I work for a company that does all it can to help others without even being asked."Now, when O'Shea steps off an elevator and sees Dan Amos's smiling face, it's because she is at Aflac headquarters, following her heart and working hard to help families like her own.1Centers for Disease Control and Prevention, "Data & Statistics on Sickle Cell Disease." Accessed on Feb. 1, 2024. https://www.cdc.gov/ncbddd/sicklecell/data.html.2Aflac Cancer and Blood Disorders Center of Children's Healthcare of Atlanta, "About Our Sickle Cell Disease Program." Accessed on Feb. 23, 2024. https://www.choa.org/medical-services/cancer-and-blood-disorders/blood-disorders/sickle-cell-disease.Coverage is underwritten by Aflac. In New York, coverage is underwritten by Aflac New York.WWHQ | 1932 Wynnton Road | Columbus, GA 31999Z2400130View additional multimedia and more ESG storytelling from Aflac Incorporated on 3blmedia.com.Contact Info:Spokesperson: Aflac IncorporatedWebsite: https://www.3blmedia.com/profiles/aflac-incorporatedEmail: info@3blmedia.comSOURCE: Aflac IncorporatedView the original press release on accesswire.com

ACCESSWIRE

Love, Care, Compassion - And a Career Shift

https://finance.yahoo.com/news/love-care-compassion-career-shift-200000139.html

bc9f4890-5392-319e-8a31-fd1a5f39e5bb

AFL

Remains the only insurance company in the world to be on list since its inception in 2007Originally published on Aflac NewsroomCOLUMBUS, GA / ACCESSWIRE / March 8, 2024 / Aflac Incorporated, a leading provider of supplemental health insurance in the U.S., retains its distinction by Ethisphere as one of the World's Most Ethical Companies®. Ethisphere, a global leader in defining and advancing the standards of ethical business practices, honored Aflac for the 18th consecutive year, making it the only insurance company in the world to appear every year since the inception of the award in 2007, and one of the longest-standing companies to receive this honor. In 2024, 136 honorees were recognized, spanning 20 countries and 44 industries."We are honored to appear yet again on Ethisphere's prestigious list, a recognition that confirms that in any type of commerce, no matter your size, it's not enough to simply do good business. You need to stand for your core values, support the communities you serve, and be a good steward of your resources," Aflac Chairman and CEO Dan Amos said. "Our commitment to do the right thing fuels the deep care and empathy our employees extend to policyholders and shareholders, which has earned us their trust for decades."Aflac places deep emphasis on corporate social responsibility. Some of its core initiatives include a commitment to the Aflac Cancer and Blood Disorders Center of Children's Healthcare of Atlanta with more than $173 million donated since 1995, as well as its award-winning My Special Aflac Duck® program, giving more than 28,000 robotic duck companions to children with cancer and sickle cell disease. Aflac also places a high priority on issues related to regulatory compliance and maintaining a well-trained workforce, with a strong commitment to its code of conduct to ensure employees work within the highest ethical standards."It's always inspiring to recognize the World's Most Ethical Companies®. Through the rigorous review process, we see the dedication of these organizations to continually improving their ethics, compliance and governance practices to the benefit of all stakeholders," said Erica Salmon Byrne, Ethisphere's Chief Strategy Officer and Executive Chair. "Companies that elevate best-in-class cultures of ethics and integrity set a standard for corporate citizenship for their peers and competitors to follow. Congratulations to Aflac for achieving this honor and demonstrating that strong ethics is good business."Story continuesEthics and performanceAccording to Ethisphere, the listed 2024 World's Most Ethical Companies® Honorees outperformed a comparable index of global companies by 12.3 percentage points from January 2019 to January 2024.Methodology and scoringThe World's Most Ethical Companies assessment is grounded in Ethisphere's proprietary Ethics Quotient®, an extensive questionnaire that requires companies to provide over 240 different proof points on their culture of ethics; environmental, social and governance practices; ethics and compliance program; diversity, equity, and inclusion; and initiatives that support a strong value chain. That data undergoes further qualitative analysis by our panel of experts who spend thousands of hours vetting and evaluating each year's group of applicants. This process serves as an operating framework to capture and codify truly best-in-class ethics and compliance practices from organizations across industries and from around the world.HonoreesTo view the full list of this year's honorees, please visit the World's Most Ethical Companies website at https://worldsmostethicalcompanies.com/honorees.ABOUT AFLAC INCORPORATEDAflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for more than 68 years to millions of policyholders and customers through its subsidiaries in the U.S. and Japan. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products.1 In Japan, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in terms of policies in force. The company takes pride in being there for its policyholders when they need us most, as well as being included in 2024 in the World's Most Ethical Companies by Ethisphere for 18 consecutive years, Fortune's World's Most Admired Companies for 23 years and Bloomberg's Gender-Equality Index for the fourth consecutive year. In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021 and has been included in the Dow Jones Sustainability North America Index (2023) for 10 years. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/espanol. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under "Sustainability."About EthisphereEthisphere is the global leader in defining and advancing the standards of ethical business practices that strengthen corporate brands, build trust in the marketplace, deliver business success. Ethisphere has deep expertise in measuring and defining core ethics standards using data-driven insights that help companies build strong cultures of ethics and integrity. Ethisphere honors superior achievement through its World's Most Ethical Companies® recognition program, provides a community of industry experts with the Business Ethics Leadership Alliance (BELA), and showcases trends and best practices in ethics with Ethisphere Magazine. Ethisphere also advances business performance through data-driven assessments, guidance, and benchmarking against its unparalleled data: the Culture Quotient dataset reflecting the ethical business practices of 3+ million employees around the world; and the Ethics Quotient dataset, featuring 240+ data points on the ethics, compliance, social, and governance practices of the World's Most Ethical Companies. For more information, visit https://ethisphere.com.Media contact: Jon Sullivan, 706-763-4813 or jsullivan@aflac.comAnalyst and investor contact: David A. Young, 706-596-3264, 800-235-2667 or dyoung@aflac.com1 LIMRA 2022 US Supplemental Health Insurance Total Market ReportSOURCE Aflac IncorporatedView additional multimedia and more ESG storytelling from Aflac Incorporated on 3blmedia.com.Contact Info:Spokesperson: Aflac IncorporatedWebsite: https://www.3blmedia.com/profiles/aflac-incorporatedEmail: info@3blmedia.comSOURCE: Aflac IncorporatedView the original press release on accesswire.com

ACCESSWIRE

Aflac a World’s Most Ethical Company for 18th Consecutive Year

https://finance.yahoo.com/news/aflac-world-most-ethical-company-141500859.html

b69dbeaa-d97a-3f85-9f8d-aa67798fb9bd

AIG

Key InsightsSignificantly high institutional ownership implies American International Group's stock price is sensitive to their trading actionsThe top 13 shareholders own 51% of the companyUsing data from analyst forecasts alongside ownership research, one can better assess the future performance of a companyA look at the shareholders of American International Group, Inc. (NYSE:AIG) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 90% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.Let's take a closer look to see what the different types of shareholders can tell us about American International Group. View our latest analysis for American International Group ownership-breakdownWhat Does The Institutional Ownership Tell Us About American International Group?Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.As you can see, institutional investors have a fair amount of stake in American International Group. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at American International Group's earnings history below. Of course, the future is what really matters.earnings-and-revenue-growthInvestors should note that institutions actually own more than half the company, so they can collectively wield significant power. American International Group is not owned by hedge funds. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 10% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.9% and 5.9%, of the shares outstanding, respectively.Story continuesAfter doing some more digging, we found that the top 13 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.Insider Ownership Of American International GroupThe definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.Our information suggests that American International Group, Inc. insiders own under 1% of the company. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own US$89m of stock. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying. General Public OwnershipThe general public-- including retail investors -- own 10% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.Next Steps:I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for American International Group you should be aware of.If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.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.

With 90% ownership of the shares, American International Group, Inc. (NYSE:AIG) is heavily dominated by institutional owners

https://finance.yahoo.com/news/90-ownership-shares-american-international-144728801.html

0f9334f6-069f-3f84-8f9e-1a8d2e20e42e

AIG

AMERISAFE, Inc. AMSF reported fourth-quarter 2023 adjusted earnings per share (EPS) of 74 cents, which outpaced the Zacks Consensus Estimate by 12.1%. However, the bottom line fell 11.9% year over year.Operating revenues of $74 million remained flat year over year. The top line fell short of the consensus mark by 1.7%.The quarterly results benefited on the back of higher gross premiums written, an increase in voluntary premiums due to expanding policy count coupled with favorable payroll audits and related premium adjustments. Sound investment results also contributed to the upside, which was, however, partly offset by softer underwriting results and an elevated expense level.AMERISAFE, Inc. Price, Consensus and EPS Surprise AMERISAFE, Inc. Price, Consensus and EPS SurpriseAMERISAFE, Inc. price-consensus-eps-surprise-chart | AMERISAFE, Inc. Quote Q4 PerformanceAMSF’s net premiums earned dipped 0.5% year over year to $65.7 million in the quarter under review and missed the consensus mark of $67 million.Net investment income amounted to $8.08 million, which improved 5.7% year over year on the back of an increase in fixed-income reinvestment rates. The figure missed the Zacks Consensus Estimate of $8.12 million.  Fee and other income dropped 19% year over year.AMERISAFE’s pre-tax underwriting profit fell 20.2% year over year to $9.5 million.Total expenses of $56.2 million increased 3.8% year over year in the fourth quarter due to higher underwriting and other operating costs and policyholder dividends.Operating net income was $14.3 million, which tumbled 11.4% year over year.The net combined ratio deteriorated 350 basis points (bps) year over year to 85.5% but came lower than the consensus mark of 89%. The metric was hurt by a deteriorating net underwriting expense ratio and net loss ratio.Financial Update (as of Dec 31, 2023)AMERISAFE exited the fourth quarter with cash and cash equivalents of $38.7 million, which plunged 37.1% from the 2022-end level.Total assets of $1.2 billion fell 3.2% from the figure at 2022 end.Story continuesShareholders' equity declined 7.9% from the 2022-end level to $292.5 million.Book value per share was $15.28 as of Dec 31, 2023, which slipped 7.8% year over year.Return on average equity of 24.4% improved 30 bps year over year in the quarter under review.Capital Deployment UpdateAMERISAFE bought back shares worth $2.2 million in the fourth quarter. A leftover capacity of $10.4 million remained under its share repurchase authorization as of Dec 31, 2023.Management sanctioned an 8.8% hike in the regular quarterly dividend. The increased dividend was 37 cents per share, which will be paid out on Mar 22, 2024, to its shareholders of record as of Mar 8, 2024.Full-Year UpdateAMERISAFE’s adjusted EPS fell 5.2% year over year to $2.91 in 2023. Total revenues of $306.9 million improved 4.1% year over year.Net premiums earned of $267.1 million decreased 1.7% year over year. Net investment income advanced 15.1% year over year to $31.3 million.AMSF reported a pre-tax underwriting profit of $37.6 million in 2023, which declined 15.8% year over year. The net combined ratio deteriorated 230 bps year over year to 85.9%.Zacks RankAMERISAFE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other InsurersOf the insurance industry players that have reported fourth-quarter 2023 results so far, the bottom-line results of Arch Capital Group Ltd. ACGL, Employers Holdings, Inc. EIG and American International Group, Inc. AIG beat the respective Zacks Consensus Estimate.Arch Capital reported fourth-quarter 2023 operating income of $2.49 per share, which beat the Zacks Consensus Estimate by 28.4%. The bottom line increased 16.4% year over year. Gross premiums written improved 12% year over year to $4.3 billion. Net premiums written climbed 7.4% year over year to $3.3 billion. Net investment income increased 73% year over year to $313 million.Operating revenues of $3.7 billion rose 24.5% year over year. It beat the consensus estimate by 0.2%. ACGL’s underwriting income dropped 2.6% year over year to $715 million. The combined ratio improved 310 bps to 78.9. Gross premiums written in the Insurance segment increased 17.6% year over year to $1.9 billion. Net premiums written in the Reinsurance unit rose 0.9% year over year to $1.6 billion.Employers Holdings’ fourth-quarter adjusted EPS of $1.40 surpassed the Zacks Consensus Estimate by 40%. The bottom line improved 12% year over year. Total revenues grew 1.8% year over year to $225.7 million. The top line beat the consensus mark by 5.8%. Gross premiums written of $178.2 million advanced 3% year over year. Net premiums written of $176.4 million increased 3% year over year.Net premiums earned amounted to $187.5 million, which improved 4% year over year. Net investment income slipped 3% year over year to $26.2 million. EIG reported an adjusted net income of $36.1 million in the quarter under review, which grew 5% year over year. Policies in force were at a record level of 126,409 as of Dec 31, 2023, which increased 4.2% year over year. The combined ratio improved 250 bps year over year to 88.1%AIG reported fourth-quarter 2023 adjusted EPS of $1.79, which outpaced the Zacks Consensus Estimate by 12.6%. The bottom line jumped 31.6% year over year. Operating revenues inched up 4.6% year over year to $12.7 billion in the quarter under review. The top line beat the consensus mark by 9.7%. Premiums fell 9.9% year over year to $8.5 billion in the fourth quarter.Total net investment income of $3.9 billion climbed 20.7% year over year. Adjusted return on common equity of 9.4% improved 190 bps year over year in the quarter under review. Net premiums written in AIG's General Insurance segment amounted to $5.8 billion in the fourth quarter, which grew 2.6% year over year. Underwriting income increased 1.1% year over year to $642 million. The unit’s combined ratio of 89.1% improved 80 bps year over 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 reportAmerican International Group, Inc. (AIG) : Free Stock Analysis ReportAMERISAFE, Inc. (AMSF) : Free Stock Analysis ReportEmployers Holdings Inc (EIG) : Free Stock Analysis ReportArch Capital Group Ltd. (ACGL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

AMERISAFE (AMSF) Beats Q4 Earnings, Hikes Dividend by 8.8%

https://finance.yahoo.com/news/amerisafe-amsf-beats-q4-earnings-181300950.html

4f2407a6-b7a8-3607-ab2d-c020e9ca9e24

AIG

In this article, we discuss 13 best dividend stocks for rising interest rates. You can skip our detailed analysis of dividend stocks and their previous performance in the rising interest rate environments, and go directly to read 5 Best Dividend Stocks for Rising Interest Rates.The increase in interest rates, which started in 2022, came about due to the resurgence of inflation. The Consumer Price Index (CPI), a measure of the cost of living, rose significantly to 9.1% for the year ending June 2022. In response to this persistent inflation, the Federal Reserve raised the federal funds rate a total of 11 times between March 2022 and July 2023. During this time frame, interest rates in the wider bond market also experienced an increase, resulting in higher borrowing costs for both consumers and businesses. This measure was aimed at restraining economic expansion and job creation as a means to alleviate the inflationary pressure. As of January 2024, inflation over the preceding 12 months had moderated to 3.1%, although it remained above the Federal Reserve's target of 2%. Following their December 2023 meeting, the Fed projected three quarter-point reductions by the close of 2024, aiming to bring the benchmark rate down to 4.6%.Increased interest rates frequently cause shifts in market dynamics, creating distinct opportunities for growth and profitability in certain industries. For instance, sectors such as banking may thrive, while real estate and utilities could face challenges due to their dependence on borrowing. Although increasing interest rates present difficulties, particularly in sectors sensitive to interest, investing in stocks for the long term presents advantages such as compounded growth, decreased volatility, and potential tax advantages. Long-term investing helps in managing volatility since short-term fluctuations in stock prices tend to average out over extended periods, resulting in more stable returns. Additionally, stocks typically increase in value over time, benefiting long-term investors. Moreover, many stocks offer dividends, furnishing a consistent income stream that can be reinvested to foster additional growth. The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and The Procter & Gamble Company (NYSE:PG) are some of the best dividend stocks because of their decades-long dividend growth histories.Story continuesA study conducted by Global X revealed that since 1960, there have been 10 significant periods of interest rate increases. These periods are characterized by a rise in the yield of 10-year US Treasuries by more than 100 basis points over a span of 10 months or longer. The report focused on the performance of high-dividend stocks during these phases. It was found that high-dividend stocks consistently outperformed the market by an average annualized rate of 0.80% during rising interest rate periods. Specifically, high dividend stocks surpassed the market's performance in 7 out of the 10 observed periods of rising interest rates. The report also noted that high-dividend stocks are commonly included in investment portfolios to provide income for investors. Historically, these stocks have shown a tendency to outperform the S&P 500 index.In this article, we will take a look at some of the best dividend stocks for rising interest rates.13 Best Dividend Stocks For Rising Interest RatesA close-up of a chart of company stock prices rising, reflecting its market capitalization.Our Methodology:For this list, we selected dividend stocks from sectors that either remain resilient or benefit in a rising interest rate environment. These companies are from industries like financials, energy, and consumer defensive sectors. We selected companies that have strong dividend histories and analyzed Insider Monkey’s database of Q4 2023 to measure hedge fund sentiment around each stock. The stocks are ranked in ascending order of the number of hedge funds having stakes in the companies.13. Aflac Incorporated (NYSE:AFL)Number of Hedge Fund Holders: 28Aflac Incorporated (NYSE:AFL) is an American insurance company that is known for its specialty insurance products, particularly its flagship product, supplemental health insurance, which is often sold alongside major medical coverage. On January 31, the company declared a 15% hike in its quarterly dividend to $0.50 per share. Through this increase, the company stretched its dividend growth streak to 42 years, which makes AFL one of the best dividend stocks for rising interest rates. The stock offers a dividend yield of 2.49%, as of March 5.The number of hedge funds tracked by Insider Monkey owning stakes in Aflac Incorporated (NYSE:AFL) grew to 28 in Q4 2023, from 25 in the previous quarter. The consolidated value of these stakes is over $236 million. Among these hedge funds, Ariel Investments was the company's leading stakeholder in Q4.12. The Travelers Companies, Inc. (NYSE:TRV)Number of Hedge Fund Holders: 34The Travelers Companies, Inc. (NYSE:TRV) is a leading provider of property and casualty insurance for both personal and commercial purposes. The company offers a quarterly dividend of $1.00 per share and has a dividend yield of 1.82%, as of March 5. It is one of the best dividend stocks on our list as the company has raised its dividends every year for the past 10 years at an annual average rate of 7%.At the end of Q4 2023, 34 hedge funds in Insider Monkey's database reported having stakes in The Travelers Companies, Inc. (NYSE:TRV), compared with 43 in the previous quarter. The collective value of these stakes is over $941 million.11. The Williams Companies, Inc. (NYSE:WMB)Number of Hedge Fund Holders: 36The Williams Companies, Inc. (NYSE:WMB) is a leading energy infrastructure company that operates a vast network of natural gas pipelines and gathering systems across the US. On January 30, the company announced a 6.1% increase in its quarterly dividend to $0.475 per share. This was the company's eighth consecutive year of dividend growth, which places WMB on our list of the best dividend stocks for rising interest rates. The stock's dividend yield on March 5 came in at 5.18%.The Williams Companies, Inc. (NYSE:WMB) remained popular among elite funds at the end of Q4 2023 as the company ended the quarter with 36 hedge fund positions, up from 27 in the previous quarter, according to Insider Monkey's database. The total value of these stakes is roughly $278 million.10. Chubb Limited (NYSE:CB)Number of Hedge Fund Holders: 37Chubb Limited (NYSE:CB) is next on our list of the best dividend stocks for rising interest rates. The global insurance company currently offers a quarterly dividend of $0.86 per share for a dividend yield of 1.38%, as of March 5. The company maintains a 30-year streak of consistent dividend growth.Chubb Limited (NYSE:CB) was a part of 37 hedge fund portfolios at the end of Q4 2023, as per Insider Monkey's database. The stakes owned by these hedge funds have a collective value of over $942.3 million. With nearly 1 million shares, Polar Capital was the company's leading stakeholder in Q4.9. American International Group, Inc. (NYSE:AIG)Number of Hedge Fund Holders: 51American International Group, Inc. (NYSE:AIG) is a multinational insurance company offering a wide range of insurance products and services. This includes insurance for homes, automobiles, boats, valuable possessions, and other personal property, as well as commercial insurance for businesses, including property insurance, liability insurance, and specialized coverages for various industries.American International Group, Inc. (NYSE:AIG), one of the best dividend stocks, currently offers a quarterly dividend of $0.36 per share. As of March 5, the stock has a dividend yield of 1.95%.The number of hedge funds in Insider Monkey's database owning stakes in American International Group, Inc. (NYSE:AIG) jumped to 51 in Q4 2023, from 42 in the previous quarter. The total value of these stakes is over $2 billion.8. Colgate-Palmolive Company (NYSE:CL)Number of Hedge Fund Holders: 54Colgate-Palmolive Company (NYSE:CL) is a multinational consumer goods company primarily focused on the production, distribution, and marketing of household, healthcare, and personal care products. The company's dividend growth streak currently spans over 61 years, which makes CL one of the best dividend stocks for rising interest rates. Currently, it offers a quarterly dividend of $0.48 per share and has a dividend yield of 2.21%, as recorded on March 5.As of the close of Q4 2023, 54 hedge funds tracked by Insider Monkey reported having stakes in Colgate-Palmolive Company (NYSE:CL), up from 52 in the previous quarter. These stakes are worth nearly $3 billion in total. First Eagle Investment Management owned roughly 11 million CL shares, becoming the company's leading stakeholder in Q4.7. Costco Wholesale Corporation (NASDAQ:COST)Number of Hedge Fund Holders: 57Costco Wholesale Corporation (NASDAQ:COST) is a multinational retail corporation that operates a chain of membership-based warehouse clubs. The company was included in 57 hedge fund portfolios at the end of Q4 2023, compared with 65 in the previous quarter, as per Insider Monkey's database. The stakes owned by these hedge funds have a total value of over $4 billion.One of the best dividend stocks for rising interest rates, Costco Wholesale Corporation (NASDAQ:COST) has raised its dividends for 19 years in a row. The company's current quarterly dividend comes in at $1.02 per share for a dividend yield of 0.53%, as of March 5.6. The Home Depot, Inc. (NYSE:HD)Number of Hedge Fund Holders: 70An American multinational home improvement retailer, The Home Depot, Inc. (NYSE:HD) ranks sixth on our list of the best dividend stocks for rising interest rates. The company offers a quarterly dividend of $2.25 per share, having raised it by 7.7% in February this year. This was the company's 14th consecutive year of dividend growth. As of March 5, the stock has a dividend yield of 2.37%.As of the end of Q4 2023, 70 hedge funds tracked by Insider Monkey held stakes in The Home Depot, Inc. (NYSE:HD), down from 76 in the preceding quarter. These stakes are collectively valued at roughly $6 billion. Click to continue reading and see 5 Best Dividend Stocks for Rising Interest Rates. Suggested articles:14 Best Real Estate and Realty Stocks To Buy According to Analysts12 Best Single Digit Stocks To Invest In12 Best Battery Stocks To Invest In Before They Take OffDisclosure. None. 13 Best Dividend Stocks For Rising Interest Rates is originally published on Insider Monkey.

Insider Monkey

13 Best Dividend Stocks For Rising Interest Rates

https://finance.yahoo.com/news/13-best-dividend-stocks-rising-211740337.html

76508358-83be-32cd-b0d2-1ca0c3f79eed

AIG

The Invesco KBW Property & Casualty Insurance ETF (KBWP) was launched on 12/02/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Financials - Insurance segment of the equity market.Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Financials - Insurance is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $232.90 million, making it one of the average sized ETFs attempting to match the performance of the Financials - Insurance segment of the equity market. KBWP seeks to match the performance of the KBW Nasdaq Property & Casualty Index before fees and expenses.The KBW Nasdaq Property & Casualty Index is a modified market capitalization weighted index that reflects the performance of approximately 24 property and casualty insurance companies.CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space.It has a 12-month trailing dividend yield of 1.48%.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation in the Financials sector--about 100% of the portfolio.Story continuesLooking at individual holdings, Travelers Cos Inc/the (TRV) accounts for about 8.27% of total assets, followed by American International Group Inc (AIG) and Allstate Corp/the (ALL).The top 10 holdings account for about 60.43% of total assets under management.Performance and RiskThe ETF has added roughly 13.35% and is up about 18.68% so far this year and in the past one year (as of 03/11/2024), respectively. KBWP has traded between $78.84 and $103.02 during this last 52-week period.The ETF has a beta of 0.61 and standard deviation of 18.67% for the trailing three-year period, making it a medium risk choice in the space. With about 26 holdings, it has more concentrated exposure than peers.AlternativesInvesco KBW Property & Casualty Insurance ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, KBWP is a good option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.IShares U.S. Insurance ETF (IAK) tracks Dow Jones U.S. Select Insurance Index and the SPDR S&P Insurance ETF (KIE) tracks S&P Insurance Select Industry Index. IShares U.S. Insurance ETF has $606.91 million in assets, SPDR S&P Insurance ETF has $739.70 million. IAK has an expense ratio of 0.40% and KIE charges 0.35%.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.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 reportInvesco KBW Property & Casualty Insurance ETF (KBWP): ETF Research ReportsAmerican International Group, Inc. (AIG) : Free Stock Analysis ReportThe Travelers Companies, Inc. (TRV) : Free Stock Analysis ReportThe Allstate Corporation (ALL) : Free Stock Analysis ReportiShares U.S. Insurance ETF (IAK): ETF Research ReportsSPDR S&P Insurance ETF (KIE): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Should You Invest in the Invesco KBW Property & Casualty Insurance ETF (KBWP)?

https://finance.yahoo.com/news/invest-invesco-kbw-property-casualty-102007316.html

51db3447-5072-36d0-8192-ed53c50cf21b

AIZ

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Assurant (AIZ) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Assurant is one of 857 individual stocks in the Finance sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Assurant is currently sporting a Zacks Rank of #2 (Buy).Within the past quarter, the Zacks Consensus Estimate for AIZ's full-year earnings has moved 6.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.Based on the latest available data, AIZ has gained about 5.9% so far this year. In comparison, Finance companies have returned an average of 3.3%. This means that Assurant is performing better than its sector in terms of year-to-date returns.Amerisafe (AMSF) is another Finance stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 8.5%.For Amerisafe, the consensus EPS estimate for the current year has increased 3.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).Looking more specifically, Assurant belongs to the Insurance - Multi line industry, a group that includes 36 individual stocks and currently sits at #67 in the Zacks Industry Rank. On average, this group has gained an average of 5.8% so far this year, meaning that AIZ is performing better in terms of year-to-date returns.Story continuesAmerisafe, however, belongs to the Insurance - Accident and Health industry. Currently, this 5-stock industry is ranked #1. The industry has moved -0.1% so far this year.Investors interested in the Finance sector may want to keep a close eye on Assurant and Amerisafe as they attempt to continue their solid performance.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 reportAssurant, Inc. (AIZ) : Free Stock Analysis ReportAMERISAFE, Inc. (AMSF) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Are Finance Stocks Lagging Assurant (AIZ) This Year?

https://finance.yahoo.com/news/finance-stocks-lagging-assurant-aiz-144009275.html

35d28cb7-4922-3328-85d8-62cb405a744c

AIZ

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.One stock to keep an eye on is Assurant (AIZ). AIZ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.Another notable valuation metric for AIZ is its P/B ratio of 1.94. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.73. AIZ's P/B has been as high as 2.01 and as low as 1.31, with a median of 1.66, over the past year.Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AIZ has a P/S ratio of 0.83. This compares to its industry's average P/S of 1.01.CNO Financial Group (CNO) may be another strong Insurance - Multi line stock to add to your shortlist. CNO is a # 2 (Buy) stock with a Value grade of A.Furthermore, CNO Financial Group holds a P/B ratio of 1.36 and its industry's price-to-book ratio is 2.73. CNO's P/B has been as high as 2.12, as low as 1.15, with a median of 1.37 over the past 12 months.Story continuesThese are just a handful of the figures considered in Assurant and CNO Financial Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AIZ and CNO is an impressive value stock right now.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAssurant, Inc. (AIZ) : Free Stock Analysis ReportCNO Financial Group, Inc. (CNO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Are Investors Undervaluing Assurant (AIZ) Right Now?

https://finance.yahoo.com/news/investors-undervaluing-assurant-aiz-now-144014785.html

0b356c65-8088-3654-9e1f-dda5bcd0d8a8

AIZ

Annual recognition highlights organizations that have demonstrated a commitment to business integrity through robust ethics, compliance, and governance programsATLANTA, March 04, 2024--(BUSINESS WIRE)--Assurant (NYSE:AIZ), a leading global business services company that supports, protects, and connects major consumer purchases, proudly announced that it has received the 2024 World’s Most Ethical Companies recognition by Ethisphere, a global leader in defining and advancing the standards of ethical business practices. In 2024, 136 honorees were recognized spanning 20 countries and 44 industries."Throughout our business, our clients are some of the most valuable brands in the world," said Assurant President and CEO Keith Demmings. "Operating ethically is foundational to protecting their brands as well as ours. Being named one of the World’s Most Ethical Companies® by Ethisphere is a testament to the thousands of Assurant employees who work according to our values every day.""Operating ethically at scale requires clear policies, compelling training, and robust procedures," said Chief Legal Officer Jay Rosenblum. "I’m proud of the work our Legal and Compliance teams have done to put these measures in place, as well as the decisions our employees across the company make every day to do the right thing on behalf of Assurant and our clients.""It’s always inspiring to recognize the World’s Most Ethical Companies®. Through the rigorous review process, we see the dedication of these organizations to continually improving their ethics, compliance, and governance practices to the benefit of all stakeholders," said Erica Salmon Byrne, Ethisphere’s Chief Strategy Officer and Executive Chair. "Companies that elevate best-in-class cultures of ethics and integrity set a standard for corporate citizenship for their peers and competitors to follow. Congratulations to Assurant for achieving this honor and demonstrating that strong ethics is good business."Story continuesEthics & Performance: The Ethics PremiumThe listed 2024 World’s Most Ethical Companies® Honorees outperformed a comparable index of global companies, the Solactiv GBS Global Markets All Cap USD Index TR, by 12.3 percentage points from January 2019 to January 2024.Methodology & ScoringAccording to Ethisphere, the World's Most Ethical Companies® assessment is grounded in its proprietary Ethics Quotient®, an extensive questionnaire that requires companies to provide over 240 different proof points on their culture of ethics; environmental, social, and governance (ESG) practices; ethics and compliance program; diversity, equity, & inclusion; and initiatives that support a strong value chain. That data undergoes further qualitative analysis by Ethisphere’s panel of experts who spend thousands of hours vetting and evaluating each year's group of applicants. This process serves as an operating framework to capture and codify truly best-in-class ethics and compliance practices from organizations across industries and from around the world.HonoreesTo view the full list of this year’s honorees, please visit the World’s Most Ethical Companies® website, at https://worldsmostethicalcompanies.com/honorees.About AssurantAssurant, Inc. (NYSE: AIZ) is a leading global business services company that supports, protects, and connects major consumer purchases. A Fortune 500 company with a presence in 21 countries, Assurant supports the advancement of the connected world by partnering with the world’s leading brands to develop innovative solutions and to deliver an enhanced customer experience through mobile device solutions, extended service contracts, vehicle protection services, renters’ insurance, lender-placed insurance products and other specialty products.Learn more at assurant.com.View source version on businesswire.com: https://www.businesswire.com/news/home/20240304327438/en/ContactsAssurant Media Contact: Stacie ShererVice President, Corporate Communications917.420.0980Stacie.Sherer@assurant.com

Business Wire

Ethisphere Names Assurant One of the 2024 World’s Most Ethical Companies®

https://finance.yahoo.com/news/ethisphere-names-assurant-one-2024-130000057.html

9aac05c0-b27f-3942-9551-6b17d21aa1ee

AIZ

A month has gone by since the last earnings report for Assurant (AIZ). Shares have added about 2.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Assurant 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.Assurant Q4 Earnings Top on Solid Global Housing ResultsAssurant, Inc. reported fourth-quarter 2023 net operating income of $4.58 per share, which beat the Zacks Consensus Estimate by 23.4%. The bottom line surged 41.8% year over year. The results reflected solid performance at Global Housing.Total revenues increased 12.4% year over year to $3 billion due to higher net earned premiums, fees and other income and net investment income. The top line beat the Zacks Consensus Estimate by 7.9%. Adjusted EBITDA, excluding reportable catastrophes, increased 29% to $382.4 million.Total benefits, loss and expenses increased 7.8% to $2.8 billion, mainly on account of an increase in underwriting, selling, general and administrative expenses and interest expense. The figure was higher than our estimate of $2.4 billion.Segmental PerformanceNet earned premiums, fees and other income at Global Housing increased 7% to $545.8 million.  Homeowners top-line growth was driven by higher average premiums and growth in policies in-force within lender-placed. The figure missed the Zacks Consensus Estimate of $553 million and was lower than our estimate of $552.6 million.Adjusted EBITDA was $186.1 million, up 56% year over year. Excluding reportable catastrophes, adjusted EBITDA increased 48% year over year to $208 million, primarily attributable to lower non-catastrophe loss experience. Results also benefited from continued top-line growth within Homeowners and higher net investment income.  The figure was higher than our estimate of $183 million.Net earned premiums, fees and other income at Global Lifestyle increased 13% to $2.3 billion, driven by growth across Global Automotive and Connected Living. The figure beat the Zacks Consensus Estimate of $2.1 billion and was higher than our estimate of $2 billion.Adjusted EBITDA of $204.6 million increased 12% year over year, driven by growth in Connected Living as a result of stronger mobile device protection results across carrier and cable operator clients in North America, as well as higher investment income. Global Automotive was flat, as elevated claims costs were largely offset by higher investment income.Adjusted EBITDA loss at Corporate & Other was $29.9 million, wider than the year-ago quarter’s adjusted EBITDA loss of $27.2 million. The wider loss was due to higher employee-related expenses, which were partially offset by higher net investment income.Story continuesFull-Year HighlightsAdjusted earnings increased 39% to $15.49 per share in 2023.Net earned premiums, fees and other income from the Global Lifestyle and Global Housing segments totaled $10,7 billion, up 8%, driven by an increase in Global Lifestyle, mainly from prior period sales in Global Automotive and growth in Global Housing from Homeowners. Adjusted EBITDA, excluding reportable catastrophes, increased 21% to $1.4 billion.Financial PositionLiquidity was $606 million as of Dec 31, 2023, which was $381 million higher than the company’s current targeted minimum level of $225 million. Total assets increased 1.6% to $33.6 billion as of Dec 31, 2023 from 2022 end.Debt of $2.1 billion decreased 2%. Total shareholders’ equity came in at $4.8 billion, up 14% year over year.Share Repurchase and Dividend UpdateIn 2023, Assurant repurchased approximately 1.3 million shares for $200 million. From Jan 1 through Feb 2, the company repurchased approximately 0.06 million shares for $20 million. It now has $664 million remaining under the current repurchase authorization. Assurant’s total dividends amounted to $152 million in 2023.2024 GuidanceAssurant expects adjusted EBITDA, excluding reportable catastrophes, to increase by mid-single digits, driven by both Global Lifestyle and Global Housing, at similar growth rates. Adjusted EPS, excluding catastrophes, is expected to grow modestly below adjusted EBITDA, excluding catastrophes growth, primarily reflecting an increase in depreciation expense from strategic technology investments.Corporate and Other adjusted EBITDA loss is expected to be approximately $105 million as the company continues to drive expense leverage. The effective tax rate is expected to be in the range of 20% to 22%.How Have Estimates Been Moving Since Then?It turns out, fresh estimates flatlined during the past month.VGM ScoresCurrently, Assurant has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookAssurant has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.Performance of an Industry PlayerAssurant belongs to the Zacks Insurance - Multi line industry. Another stock from the same industry, The Hartford (HIG), has gained 8.5% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.The Hartford reported revenues of $4.31 billion in the last reported quarter, representing a year-over-year change of +7.6%. EPS of $3.06 for the same period compares with $2.31 a year ago.The Hartford is expected to post earnings of $2.38 per share for the current quarter, representing a year-over-year change of +41.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.9%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for The Hartford. Also, the stock has a VGM Score of B.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 reportAssurant, Inc. (AIZ) : Free Stock Analysis ReportThe Hartford Financial Services Group, Inc. (HIG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Assurant (AIZ) Up 2.6% Since Last Earnings Report: Can It Continue?

https://finance.yahoo.com/news/assurant-aiz-2-6-since-163059318.html

b42f600c-d01c-38e2-bf25-d2e7993fad03

AJG

Arthur J. Gallagher & Co. (NYSE:AJG) is an expensive stock from a valuation standpoint in relation to the insurance sector, but its ability to lead and grow over a long period justifies the high price. Investors are paying more for better and the risk-reward ratio makes the stock a good bet for decades ahead. The alpha in this stock is the company's merger and acquisition strategy and a pullback would be an optimal entry point.Business overview and recent earningsWarning! GuruFocus has detected 10 Warning Signs with AJG.Founded in 1927, the international insurance brokerage and risk management company is based in the U.S. The company provides insurance brokerage, third-party claims settlement, consulting and administration services.The stock is also one of the oldest S&P 500 stocks with an initial public offering dating back to 1984. The shares were priced at $1.72 (post stock splits) and never revisited this price level. The stock currently trades on the New York Stock Exchange above $230 a share, down 10% from the all-time high reached two months ago. If an investor bought $10,000 worth of stock in 1984, the value would now have reached over $1.30 millon. The stock remains an attractive opportunity despite its strong valuation.Arthur J. Gallagher: An Expensive Stock Worth Its PriceThe business remains concentrated on the insurance brokerage segment, which represents over 87% of the company's revenue. Arthur J. Gallagher's core business is to act as a middleman between the insured and the insurers. It advises people on their insurance needs and negotiates insurance contracts on their behalf, receiving a commission for every successful match. The company benefits, therefore, from sector tailwinds, while at the same time avoiding being exposed to the risks the insurance carriers are exposed to, such as natural disasters. The company's revenue is concentrated in the U.S. with approximately two-thirds of the revenue being domestic, and one third from abroad (primarily the U.K.). In my view, this is an attractive revenue split for a U.S. company as it mitigates potential headwinds on the U.S. insurance sector (e.g., decline in consumer income if unemployment starts to rise) while not being excessively exposed to currency risk.Story continuesThe earnings release on Jan. 25 confirmed Arthur J. Gallagher remains on a path of growth. The fourth-quarter non-GAAP earnings per share hit $1.85, in line with expectations. The revenue grew a whopping 19.7% to reach $2.43 billion, beating expectations by $20 million. The revenue growth is supported both by inorganic growth (11.60% of the growth) and organic growth (8.1.%). J. Patrick Gallagher Jr., chairman and CEO of the company, announced the business completed 14 new mergers in the quarter with estimated annualized revenue of $410 million.As an investor, this is music to my ears. Indeed, I know the money I would invest in the business would provide some return, even if the business itself would be facing some headwinds. The fact revenue growth is both inorganic and organic gives me the confidence that if things slow down internally, there is always the highly-performing mergers and acquisitions that will support the business growth.The stock is expensive, but is justified with solid financialsArthur J. Gallagher has demonstrated an unmatched financial resilience throughout the years, even during the Covid-19 pandemic, with revenue, Ebitda and net income registering growth practically every year as the business kept expanding.Revenue growth averaged 12.35% with a median of 10.55% in the last 10 years. In the meantime, the net income margin averaged 9.48% with a median of 9.55%. What I find even more interesting is the net income margin in the last five years averaged 11.36% with a median of 11.40%. This clearly indicates the company has been on a path of increased efficiency despite high M&A activity. Usually when a company grows too quickly inorganically (remember that 60% of the growth is currently inorganic), it is usually reflected in the financials with decreased margins while revenue grows. This makes the stock even more attractive and further proves its strong ability to manage inorganic growth.Arthur J. Gallagher: An Expensive Stock Worth Its PriceEbitda has increased every year since 2011 between 3.62% and 34.71%. The markets have priced in similar growth levels for the next decade. And that is the reason why the stock is expensive by every metric. At first glance, it even appears unattractive from a valuation standpoint despite solid financial growth. Indeed, the stock is expensive relative to the sector medians.Taking one of the most important metrics, the price-book ratio stands at 4.84 for the last 12 months and 4.70 for the next 12. The price-book ratio is one of the most useful tools when conducting a stock valuation analysis as it uses the balance sheet as a metric. Indeed, the ratio is calculated in the following three steps:Subtract liabilities from the assets to obtain the book value.Then divide the book value by the total number of outstanding shares to obtain the book value per share.Divide the current market share price by the book value per share to obtain the price-book ratio.The lower the ratio, the better the valuation. If the ratio is below 1, it would mean the book value per share is worth more than the price per share and hence the stock would be undervalued. It does not necessarily mean it's automatically a good purchase for the long term. Similarly, an expensive stock does not always mean it is intrinsically overvalued. Indeed, given the growth and the return ratios over time, Arthur J. Gallagher fully justifies its high valuation. The dividend yield is also fairly unattractive with a yield below 1% despite consistent dividend payment over the years. The last year the dividend yield was below 1% was back in 2011. The stock should not be bought primarily for its dividend. Also, it shows that despite the dividend payment growing from 51 cents per share in 2022 to 55 cents in 2023 (8% year-over-year growth), the yield remained under downward pressure due to a higher growth in stock price. In my view, this shows the buying pressure is high and the stock is sought after by investors. Therefore, it could be a wise strategy to wait for the pressure to come down and enter a position once a pullback materializes.The company is properly managedOver the years, we can see strength in the financials with a consistent growth in revenue, Ebitda and net income. Revenue today is more than three times higher than 10 years ago. Some of the most favored decision tools for investors are the return ratios, in particular the return on equity.Arthur J. Gallagher: An Expensive Stock Worth Its PriceFinancial ratios, source tikr.comThe consistent double-digit ROE of Arthur J. Gallagher indicates the business is well run and managed efficiently. Indeed, consistent positive ROE essentially shows that the business has onsistent profits and net income over time and an acceptable debt level.The business' fundamentals are not the only attractive points about the stock. The overall business is headed to prospects that keep the markets optimistic for a bright future. Indeed, the insurer's ambitious expansion plan opens for great prospects for the continued sector leadership. Positive ROE shows that Arthur J. Gallagher is able to acquire a large number of new entities (37 confirmed acquisitions in the first three quarters of 2023) and consolidate them into the larger business group while ensuring synergies and preserving profitability. The efficiency of its M&A strategy leads me to believe that, even if the organic growth were to become challenged in the future, the inorganic growth would be able to take the lead and ensure the business continues on its path of consistent growth over the coming decades.Arthur J. Gallagher: An Expensive Stock Worth Its PriceThanks to both its inorganic growth (strong M&A activity) and organic growth (quality management), the company has outperformed its main rivals of comparable size. I selected them based on geography (U.S. and U.K.), revenue size and market cap. Given the trendline, the company is likely to continue performing well, especially given the probable interest rate cuts later this year, providing additional liquidity to continue acquiring aggressively other companies and reducing the M&A leveraged buyout costs. From my view, the outperformance relative to rivals is yet another argument that justifies the stark valuation: the business simply performs better than its competitors because its M&A is truly Arthur J. Gallagher's moat and lower interest rates will further boost the company's edge relative to its competitors in the next several years.RisksThe key risk to observe for Arthur J. Gallagher, which could invalidate the bullish case for the stock, is actually its main attribute: growth. Acquiring 40 to 50 entities in different jurisdictions every year over the next few years could cause serious challenges from different aspects. There is only so much a management team can oversee. The sector is heavily regulated relative to other sectors in most countries, so ensuring every entity (new or old) is compliant from a regulatory perspective poses a real challenge.Further, the group needs to make sure the entities are not overlapping in their product and geographic offerings, otherwise this could lead to corporate cannibalization. Keeping control of an aggregation of hundreds of entities (including keeping local management teams motivated) involves having clear communication from the top, new incentives to grow and making the corporate culture understood throughout all the layers of the corporate structure.In the last decade, the business' revenue has tripled from $3.10 billion in 2013 to $9.50 billion in 2023 and the net income practically quadrupled from $268 million to $970 million in the same period, indicating its efficiency has improved. However, the earnings per share only doubled during this period (from $2.08 to $4.51), which indicates share dilution. We do not know the prices paid for these acquisitions in most cases, but it is prudent to assume a large portion is funded with stock offering rather than cash. The active M&A of the company, therefore, regularly dilutes existing investors and poses a key risk in the event it abruptly ceases to grow as quickly.Bottom lineArthur J. Gallagher is an expensive stock of a well run 40-year international insurance business. Valuation points to the upper end of the sector's valuations, but the singular consistency of the financial growth, of the business expansion, of the dividend payments and of the stock price increases make the markets price the stock higher than its peers.Existing investors who have enjoyed years of double-digit returns on shareholders' equity refuse to sell their shares. New investors may find the price high, but once the stock is analyzed, they come to understand the valuation may understandably not be in line with its peers. The main challenge of the business is and has been to ensure it keeps control of its growth amid macroeconomic uncertainty.This article first appeared on GuruFocus.

GuruFocus.com

Arthur J. Gallagher: An Expensive Stock Worth Its Price

https://finance.yahoo.com/news/arthur-j-gallagher-expensive-stock-130002011.html

543f1616-be8a-3e7c-9f51-d1e0318640e7

AJG

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Arthur J. Gallagher & Co. (NYSE:AJG) is about to trade ex-dividend in the next 4 days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. 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. This means that investors who purchase Arthur J. Gallagher's shares on or after the 29th of February will not receive the dividend, which will be paid on the 15th of March.The company's next dividend payment will be US$0.60 per share. Last year, in total, the company distributed US$2.20 to shareholders. Last year's total dividend payments show that Arthur J. Gallagher has a trailing yield of 0.9% on the current share price of US$245.00. If you buy this business for its dividend, you should have an idea of whether Arthur J. Gallagher's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. Check out our latest analysis for Arthur J. Gallagher Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. That's why it's good to see Arthur J. Gallagher paying out a modest 49% of its earnings.Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.Click here to see the company's payout ratio, plus analyst estimates of its future dividends.historic-dividendHave Earnings And Dividends Been Growing?Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. This is why it's a relief to see Arthur J. Gallagher earnings per share are up 5.2% per annum over the last five years.Story continuesMany investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Arthur J. Gallagher has delivered 4.6% dividend growth per year on average over the past 10 years. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.The Bottom LineIs Arthur J. Gallagher worth buying for its dividend? It has been growing its earnings per share somewhat in recent years, although it reinvests more than half its earnings in the business, which could suggest there are some growth projects that have not yet reached fruition. Overall, Arthur J. Gallagher looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.While it's tempting to invest in Arthur J. Gallagher for the dividends alone, you should always be mindful of the risks involved. To help with this, we've discovered 4 warning signs for Arthur J. Gallagher that you should be aware of before investing in their shares.A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield 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.

Why You Might Be Interested In Arthur J. Gallagher & Co. (NYSE:AJG) For Its Upcoming Dividend

https://finance.yahoo.com/news/why-might-interested-arthur-j-122706655.html

14c98060-7fe1-3f02-8349-288dea759a1c

AJG

A month has gone by since the last earnings report for Willis Towers Watson (WTW). Shares have added about 1.1% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Willis Towers Watson 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.Willis Towers Q4 Earnings Top Estimates, Revenues Up Y/YWillis Towers Watson Public Limited Company delivered fourth-quarter 2023 adjusted earnings of $7.44 per share, which beat the Zacks Consensus Estimate by 5.7%. The bottom line increased 17.5% year over year. WTW witnessed an increase in revenues and expanded operating margins at the Health, Wealth & Career and Risk & Broking segments, as well as improved adjusted operating income, offset by higher expenses.Operational UpdateWillis Towers posted adjusted consolidated revenues of $2.9 billion, up 7% year over year on a reported basis. Revenues increased 6% on an organic basis and a constant currency basis. The top line beat the Zacks Consensus Estimate by 0.3%. The total costs of providing services increased 6% year over year to $2.1 billion due to higher salaries and benefits, restructuring costs, transaction and transformation costs as well as other operating expenses. Our estimate was $2 billion.Adjusted operating income was $998 million, which increased 13.1% year over year. Margin expanded 180 basis points (bps) to 34.2%. Adjusted EBITDA was $1.1 billion, up 7% year over year. Adjusted EBITDA margin was 37.1%, which remained flat year over year.Quarterly Segment UpdateHealth, Wealth & Career: Total revenues of $1.79 billion rose 4% year over year (3% increase on a constant currency and 4% on an organic basis). The Zacks Consensus Estimate and our estimate were both pegged at $1.8 billion. Organic growth in Benefits Delivery & Outsourcing was driven by higher volumes and placements of Medicare Advantage and life policies in Individual Marketplace and increased compliance and other project activity in Outsourcing. Wealth businesses generated organic revenue growth from higher levels of Retirement work in North America and Europe, along with new client acquisitions, pension brokerage and higher fees in Investments.Organic revenue growth in Health was driven by the continued expansion of the Global Benefits Management client portfolio, higher brokerage income as well as a modest tailwind from book-of-business settlement revenues.Career had organic revenue growth from compensation survey sales and executive compensation, reward-based advisory and employee experience services. The operating margins expanded 150 basis points from the prior-year quarter to 40.5%, primarily from Transformation savings.Story continuesRisk & Broking: Total revenues of $1.08 billion rose 13% year over year (12% increase in constant currency and on an organic basis) and beat the Zacks Consensus Estimate of $1.03 billion. Our estimate was $1 billion.Corporate Risk & Broking generated exceptional organic revenue growth, driven by strong new business, improved client retention and rate increases.Insurance Consulting and Technology had organic revenue growth from software sales and increased project revenues. The operating margins expanded 460 basis points from the prior-year quarter to 32.9%, due to higher operating leverage, driven by strong organic revenue growth and increased productivity from recent hires and Transformation savings.Financial UpdateAs of Dec 31, 2023, cash and cash equivalents were $1.4 billion, up 12.8% from 2022 end. Long-term debt increased 2.1% to $4.5 billion at quarter-end from 2022 end. Shareholders’ equity decreased 4.9% from the level on Dec 31, 2022, to $9.5 billion as of Dec 31, 2023.Cash flow from operations was $1.3 billion in 2023, up 65.6% from the prior-year period. Free cash flow for 2023 increased 76.8% year over year to $1.2 billion.2024 GuidanceWillis Towers expects to deliver revenues of $9.9 billion and mid-single digit organic revenue growth. The insurer projects to deliver an adjusted operating margin in the range of 22.5-23.5% for 2024. WTW expects to deliver adjusted diluted earnings per share in the range of $15.40-$17. The company projects around $88 million in non-cash pension income for 2024.Willis Towers expects a foreign currency headwind on adjusted earnings per share of approximately $0.02 for 2024 at today’s rates. WTW expects to deliver around $425 million of cumulative run-rate savings from the Transformation program by the end of 2024, up from $380 million previously. The company anticipates total program costs of $1.125 billion, up from $900 million previously.Full-Year HighlightsAdjusted earnings of $14.49 per share beat the Zacks Consensus Estimate by 2.6%. The bottom line increased 8% year over year. Total revenues increased 7% from the year-ago quarter to about $9.5 billion. The top line beat the Zacks Consensus Estimate by 0.1%.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.VGM ScoresAt this time, Willis Towers Watson has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, 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 trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, Willis Towers Watson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerWillis Towers Watson is part of the Zacks Insurance - Brokerage industry. Over the past month, Arthur J. Gallagher (AJG), 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.Arthur J. Gallagher reported revenues of $2.39 billion in the last reported quarter, representing a year-over-year change of +19.9%. EPS of $1.85 for the same period compares with $1.54 a year ago.For the current quarter, Arthur J. Gallagher is expected to post earnings of $3.40 per share, indicating a change of +12.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.4% over the last 30 days.Arthur J. Gallagher has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.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 reportWillis Towers Watson Public Limited Company (WTW) : Free Stock Analysis ReportArthur J. Gallagher & Co. (AJG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Is Willis Towers Watson (WTW) Up 1.1% Since Last Earnings Report?

https://finance.yahoo.com/news/why-willis-towers-watson-wtw-163109532.html

bcc1813e-afe7-3902-926d-ad8ae7ff54f0

AJG

ROLLING MEADOWS, Ill., March 7, 2024 /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) will be hosting its regularly scheduled quarterly management meeting on Thursday, March 21, from 8:00 a.m. until approximately 10:30 a.m. CT. This quarter's meeting will take place virtually via conference call.  During the call, the company's operating and financial leaders will present background information and commentary on the company's business operations and financial outlook, and will take questions from the investment community.The conference call will be broadcast live through Gallagher's website at www.ajg.com/irmeeting, and a conference call replay will be available at the same link through March 28, 2024.  Any information distributed in conjunction with this meeting will be available on March 21 at 7:45 a.m. CT at https://www.ajg.com/March21materials.Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.Media: Paul Day, Communications Manager630-285-5946/ paul_day1@ajg.comCisionView original content:https://www.prnewswire.com/news-releases/arthur-j-gallagher--co-to-host-regularly-scheduled-quarterly-investor-meeting-with-management-302083344.htmlSOURCE Arthur J. Gallagher & Co.

PR Newswire

Arthur J. Gallagher & Co. To Host Regularly Scheduled Quarterly Investor Meeting With Management

https://finance.yahoo.com/news/arthur-j-gallagher-co-host-211500503.html

578237bb-160d-3a9f-b6aa-974d9689dff1

AKAM

Why Akamai (AKAM) Stock Is Trading Lower TodayWhat Happened:Shares of web content delivery and security company Akamai (NASDAQ:AKAM) fell 10.4% in the morning session after the company reported fourth-quarter results with revenue falling below Wall Street's expectations. Revenue guidance for the next quarter also missed consensus estimates, likely raising questions about the company's growth outlook. Baked into the forward guidance are expectations for a revenue decline in the first half of the year as 7 out of 10 CDN (content delivery network) customers renew their contract. These renewals tend to drive an initial revenue decline before growth picks up as traffic accelerates over time. Overall, this was a weaker quarter for the company.The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Akamai? Access our full analysis report here, it's free.What is the market telling us:Akamai's shares are not very volatile than the market average and over the last year have had only 3 moves greater than 5%. But moves this big are very rare even for Akamai and that is indicating to us that this news had a significant impact on the market's perception of the business.The biggest move we wrote about over the last year was 6 months ago, when the stock gained 10.1% on the news that the company reported a "beat and raise" quarter. Second quarter results beat analysts' expectations for revenue and earnings per share. The topline growth benefitted from strong demand for security and segmentation solutions, with the security segment growing by 14% year on year. Notably, demand for Guardicore (segmentation solution) grew 60% year on year and is expected to reach $100M run rate by Q3'23.Looking ahead, the company raised its revenue and EPS guidance for the full year. The improved guidance partly benefitted from the announced partnership with channel partner, WWT to sell Akamai's security solutions. Overall, it was a stronger quarter for the company despite the challenges faced by tech companies this quarter due to a tougher macro environment.Akamai is down 1.3% since the beginning of the year, and at $115.23 per share it is trading 10.2% below its 52-week high of $128.32 from February 2024. Investors who bought $1,000 worth of Akamai's shares 5 years ago would now be looking at an investment worth $1,630.Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.

StockStory

Why Akamai (AKAM) Stock Is Trading Lower Today

https://finance.yahoo.com/news/why-akamai-akam-stock-trading-171015391.html

f26b6cd9-b968-3d6c-ae16-6578a166271c

AKAM

Akamai Technologies (NASDAQ:AKAM) Full Year 2023 ResultsKey Financial ResultsRevenue: US$3.81b (up 5.4% from FY 2022).Net income: US$547.6m (up 4.6% from FY 2022).Profit margin: 14% (in line with FY 2022).EPS: US$3.59 (up from US$3.29 in FY 2022).earnings-and-revenue-growthAll figures shown in the chart above are for the trailing 12 month (TTM) periodAkamai Technologies Meets ExpectationsRevenue was in line with analyst estimates. Earnings per share (EPS) was also in line with analyst expectations.Looking ahead, revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 10% growth forecast for the IT industry in the US.Performance of the American IT industry.The company's shares are down 8.6% from a week ago.Risk AnalysisDon't forget that there may still be risks. For instance, we've identified 1 warning sign for Akamai Technologies that you should be aware of.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Akamai Technologies Full Year 2023 Earnings: In Line With Expectations

https://finance.yahoo.com/news/akamai-technologies-full-2023-earnings-115340815.html

f7b4ffe2-4bd1-3e7a-897a-54d7249e9cf6

AKAM

CAMBRIDGE, Mass., March 7, 2024 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the cloud company that powers and protects life online, today announced a partnership with Scaleflex, the first visual experience platform to join the Akamai Qualified Computing Partner Program.Akamai Technologies, Inc. logo (PRNewsfoto/Akamai Technologies, Inc.)Scaleflex and Akamai work together to help provide online brands with an end-to-end digital asset management solution that runs on Akamai Connected Cloud, a massively distributed edge and cloud platform that puts apps and experiences closer to users and keeps threats farther away. The partnership is intended to help customers turn billions of visual assets into countless user experiences.Leveraging the capabilities of Akamai Connected Cloud, including Akamai's cloud computing and content delivery services, Scaleflex focuses on providing a visual experience platform that combines the power of AI-driven digital asset management and dynamic media optimization to deliver high-performing images and video for customers worldwide."We are thrilled to partner with Akamai and offer our customers a best-in-class solution for optimizing the management and delivery of their digital content," said Scaleflex's CEO and co-founder, Emil Novakov. "By leveraging Akamai's global network, we can help businesses manage and organize their digital assets, plus help them reach their customers with lightning-fast speeds to ensure that they have a seamless and enjoyable experience."Scaleflex's AI-powered digital asset management system — listed in the Forrester Digital Asset Management Landscape, Q4 2023 — assists in the resolution of issues related to the upload, organization, and optimization of products and brand assets at scale. Marketing and technical teams can easily manipulate digital assets, including back-office environments (such as CMS, PIM, and commerce), thus boosting team productivity and accelerating the content-to-market strategy of new campaigns or products catalogs. Flexible and cost-effective, the MACH-certified technologies (Micro-services, API first, Cloud-based, Headless) gained the trust of leading brands in online retail, travel, real estate, and online news.Story continues"Akamai is pleased to make Scaleflex available to joint customers through our Qualified Computing Partner Program," said Matt Berk, Senior Vice President of Sales at Akamai. "Customers can benefit from Scaleflex's user-friendly ecosystem of solutions that run on Akamai Cloud Computing and are tightly integrated with our delivery services."The Akamai Qualified Computing Partner Program is designed to make solution-based services that are interoperable with Akamai cloud computing services easily accessible to Akamai customers. These services are provided by Akamai's technology partners that complete a rigorous qualification process to ensure they are readily available to deploy and scale across the globally distributed Akamai Connected Cloud.To learn more about the Akamai Qualified Computing Partner Program or to join the leading technology companies that partner with Akamai, visit the Akamai Technology Partner Program page.Additional information about Akamai Cloud Computing is available at akamai.com.About ScaleflexScaleflex is a business-to-business, software-as-a-service company whose mission is to simplify the upload, organization, and optimization of all brand assets. Its MACH-certified technologies (Micro-service, API, Cloud-based, Headless) allows marketing and technical teams to easily manipulate media from any back office (CMS, PIM), accelerating content-to-market strategy. Find out more at scaleflex.com and LinkedIn.About AkamaiAkamai powers and protects life online. Leading companies worldwide choose Akamai to build, deliver, and secure their digital experiences — helping billions of people live, work, and play every day. Akamai Connected Cloud, a massively distributed edge and cloud platform, puts apps and experiences closer to users and keeps threats farther away. Learn more about Akamai's cloud computing, security, and content delivery solutions at akamai.com and akamai.com/blog, or follow Akamai Technologies on X, formerly known as Twitter, and LinkedIn.Contacts:Laura BergerGTM & Alliances Directorpartners@scaleflex.comJean-François LecasChief Experience Officerjflecas@scaleflex.comChris NicholsonAkamai Media Relations+1.508.517.3703cnichols@akamai.comTom BarthAkamai Investor Relations+1.617.274.7130tbarth@akamai.comCisionView original content to download multimedia:https://www.prnewswire.com/news-releases/scaleflex-joins-akamai-qualified-computing-partner-program-302082376.htmlSOURCE Akamai Technologies, Inc.

PR Newswire

Scaleflex Joins Akamai Qualified Computing Partner Program

https://finance.yahoo.com/news/scaleflex-joins-akamai-qualified-computing-113000593.html

7bc72c76-9cca-3827-baf9-917a5ae19473

AKAM

Akamai Technologies, Inc. AKAM recently announced that Scaleflex has inked a deal to become an integral part of Akamai Qualified Computing Partner Program for improving digital asset management capabilities for online brands. The endeavor is likely to generate greater customer engagement activities and increase the scope of monetization on the platform.Scaleflex is a visual experience platform that specializes in providing solutions for managing and optimizing digital media assets. The company is known for the faster delivery of best-in-class images and videos with an innovative combination of Digital Asset Management, Dynamic Media Optimization and Visual AI. Akamai has expanded its technology portfolio by collaborating with Scaleflex to upload, process, optimize and accelerate media assets worldwide. The partnership is likely to make a mark in the content delivery network (CDN) and cloud infrastructure sector.The collaboration is likely to aid businesses seeking to increase their online presence among targeted customers. The need for relevant content management systems is rising as companies resort to digitizing their operations and marketing tactics. The use of AI-powered tools for managing and optimizing digital assets is likely to provide a competitive advantage, accelerating content-to-market strategies and enhancing user engagement.Scaleflex's AI-powered system’s listing in the Forrester Digital Asset Management Landscape underlines its importance and trustworthiness in the industry, which is likely to influence customer adoption rates and ultimately drive top-line growth. Moreover, the synergy of the tech experts may lead to operational efficiency, leveraging Akamai's global network to deliver content with high speed and reliability.The Akamai Qualified Computing Partner Program is customized to make end-to-end solutions that are interoperable with Akamai cloud computing services easily reachable to its customers. These services are provided by its expert technology partners to ensure they are readily available to deploy and scale across the globally distributed Akamai Connected Cloud.With the innovative addition, Akamai is likely to address the growing need for improved cloud-based solutions for enterprises in today's digital world. The cutting-edge technology introduced by the company is poised to establish its position as a market leader in the long term. The product diversification strategy is likely to bolster its revenue growth, which in turn will have a positive impact on its performance.The stock has gained 53.1% in the past year compared with the industry’s growth of 43.9%.Story continuesZacks Investment ResearchImage Source: Zacks Investment ResearchZacks Rank & Stocks to ConsiderAkamai currently carries a Zacks Rank #3 (Hold).NVIDIA Corporation NVDA, currently sporting a Zacks Rank #1 (Strong Buy), delivered a trailing four-quarter average earnings surprise of 20.18%. In the last reported quarter, it delivered an earnings surprise of 13.41%. You can see the complete list of today’s Zacks #1 Rank stocks here.NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.InterDigital, Inc. IDCC, carrying a Zacks Rank #2 (Buy) at present, delivered a trailing four-quarter average earnings surprise of 170.50%. In the last reported quarter, it delivered an earnings surprise of 16.53%.IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.Workday Inc. WDAY, carrying a Zacks Rank #2 at present, delivered an earnings surprise of 9.03% in the last reported quarter.Workday is a provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system that makes it easier for organizations to provide analytical insights and decision support.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 reportNVIDIA Corporation (NVDA) : Free Stock Analysis ReportAkamai Technologies, Inc. (AKAM) : Free Stock Analysis ReportInterDigital, Inc. (IDCC) : Free Stock Analysis ReportWorkday, Inc. (WDAY) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Akamai (AKAM) Partners Scaleflex on Advanced Computing Program

https://finance.yahoo.com/news/akamai-akam-partners-scaleflex-advanced-122500337.html

0ce1ea8a-95a4-318f-8ae1-193ea82624f8

ALB

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

8a525d63-9e51-34a1-81a5-cdc42c4607f1

ALB

In this article, we discuss 13 best consumer cyclical dividend stocks to invest in. You can skip our detailed analysis of the consumer cyclical sector and its performance over the years, and go directly to read 5 Best Consumer Cyclical Dividend Stocks To Invest In. Consumer cyclical companies produce goods and services that are considered non-essential or discretionary, meaning consumers are more likely to purchase them when they have extra income or feel confident about their financial situation. Consumer cyclical stocks include companies in sectors such as retail, automotive, travel and leisure, entertainment, and luxury goods.Over the past year, we've seen clear evidence that consumers have remained strong despite challenges like high inflation, increasing interest rates, and greater recession concerns. This resilience notably buoyed the performance of stocks within the consumer discretionary sector, which includes businesses offering non-essential products and services such as apparel, automobiles, and accommodations. The S&P 500 Consumer Discretionary Index ended 2023 with a total return of 42.41%, reporting one of its best years on record. In addition to the support from a strong consumer base, the stocks in this sector also gained from broader market trends that propelled the overall stock market higher in 2023. These trends included relief as the Federal Reserve signaled the potential end of its rate-hiking cycle as the year progressed. Furthermore, sector-level performance was boosted by specific issues affecting some of the largest companies within it. Amazon.com, Inc. (NASDAQ:AMZN) and Tesla, Inc. (NASDAQ:TSLA), the two largest companies in the sector by a significant margin, have both seen remarkable gains in the past year, driven by the surge in mega-cap, tech-related stocks. Additionally, both companies are considered potential investment opportunities in the field of artificial intelligence.After experiencing robust performance in 2023, analysts are also showing a preference for the sector in the current year. Rob Haworth, senior investment strategy director at U.S. Bank Wealth Management, stated that consumers' willingness to sustain moderate spending growth has been crucial for the economy. He suggested that this could be attributed, at least in part, to the robust labor market and notable wage increases. Based on a Fidelity report, the performance of sectors is expected to be influenced by broader economic factors in 2024. If inflation remains low and the Federal Reserve stops raising interest rates, it could be advantageous for the sector, as consumers may be more inclined to buy expensive items like cars or homes. An even more positive scenario would be if the economy avoids a recession and job markets stay robust, which would particularly benefit this sector.Story continuesThe report highlighted that following the sector's strong performance in 2023, stock valuations are not as low as they were previously. However, there are still segments of the market where the firm has identified robust long-term growth prospects, and where stocks are trading at attractive prices. One ongoing area of opportunity includes certain retailers. These companies possess defensive characteristics within their business models, offering some protection in case of a deteriorating economic outlook.Another factor contributing to the positive outlook for the sector is that certain companies within it opt to distribute dividends when they maintain a steady cash flow and have a track record of sharing profits with shareholders. Apple Inc. (NASDAQ:AAPL), The Home Depot, Inc. (NYSE:HD), and NIKE, Inc. (NYSE:NKE) are some of the best consumer cyclical dividend stocks among others that are discussed below.Best Consumer Cyclical Dividend StocksImage by Steve Buissinne from PixabayOur Methodology:For this list, we scanned Insider Monkey’s database of Q4 2023 and selected consumer cyclical dividend stocks from the entertainment, technology, retail, housing, materials, and automotive industries. These companies are strong dividend payers and have decent yields. The stocks are ranked in ascending order of hedge funds having stakes in them. 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).13. Foot Locker, Inc. (NYSE:FL)Number of Hedge Fund Holders: 24Foot Locker, Inc. (NYSE:FL) is a retail company primarily focused on athletic footwear and apparel. It operates thousands of retail stores globally, selling a wide range of athletic shoes, clothing, and accessories from various brands. The company currently pays a quarterly dividend of $0.40 per share and has a dividend yield of 4.92%, as of February 21. It is among the best dividend stocks from the consumer cyclical sector.At the end of Q4 2023, 24 hedge funds tracked by Insider Monkey reported having stakes in Foot Locker, Inc. (NYSE:FL), up from 23 in the previous quarter. The consolidated value of these stakes is roughly $764 million. Among these hedge funds, Vesa Equity Investment was the company's leading stakeholder in Q4.12. Leggett & Platt, Incorporated (NYSE:LEG)Number of Hedge Fund Holders: 24Leggett & Platt, Incorporated (NYSE:LEG) is a diversified manufacturer that produces a wide range of engineered components and products for various industries. The company currently pays a quarterly dividend of $0.46 per share and has a dividend yield of 8.99%, as of February 21. In 2023, it stretched its dividend growth streak to 52 years, which makes LEG one of the best dividend stocks on our list.The number of hedge funds tracked by Insider Monkey owning stakes in Leggett & Platt, Incorporated (NYSE:LEG) grew to 24 in Q4 2023, from 19 in the preceding quarter. These stakes have a collective value of over $123.6 million.11. Albemarle Corporation (NYSE:ALB)Number of Hedge Fund Holders: 27Albemarle Corporation (NYSE:ALB) is a global specialty chemicals company that develops, manufactures, and markets a wide range of products used in various industries. It is one of the best dividend stocks from the consumer cyclical sector as the company has been growing its dividends for the past 29 years. Currently, the company pays a quarterly dividend of $0.40 per share. The stock has a dividend yield of 1.39%, as of February 21.As of the close of Q4 2023, 27 hedge funds tracked by Insider Monkey reported having stakes in Albemarle Corporation (NYSE:ALB), down from 37 in the previous quarter. The total value of these stakes is more than $311 million.10. Tractor Supply Company (NASDAQ:TSCO)Number of Hedge Fund Holders: 30Tractor Supply Company (NASDAQ:TSCO) is an American retail chain that specializes in products for agriculture, livestock, pet care, and home improvement. On February 6, the company declared a 6.8% hike in its quarterly dividend to $1.10 per share. This marked the company's 15th consecutive year of dividend growth, which makes TSCO one of the best dividend stocks from the consumer cyclical sector. The stock's dividend yield on February 21 came in at 1.84%.As per Insider Monkey's database of Q4 2023, 30 hedge funds in Insider Monkey's database reported having stakes in Tractor Supply Company (NASDAQ:TSCO), up from 28 in the preceding quarter. The consolidated value of these stakes is over $545.2 million.9. Genuine Parts Company (NYSE:GPC)Number of Hedge Fund Holders: 36Genuine Parts Company (NYSE:GPC) is next on our list of the best dividend stocks from the consumer cyclical sector. The company is a leading distributor of automotive and industrial replacement parts, office products, and electrical materials. On February 15, the company declared a 5% hike in its quarterly dividend to $1.00 per share. This marked the company's 67th consecutive year of dividend growth. The stock's dividend yield on February 21 came in at 2.77%.At the end of December 2023, 36 hedge funds in Insider Monkey's database reported having stakes in Genuine Parts Company (NYSE:GPC), up from 34 in the previous quarter. The collective value of these stakes is over $535 million. With over 1 million shares, D E Shaw was the company's leading stakeholder in Q4.The London Company mentioned Albemarle Corporation (NYSE:ALB) in its Q4 2023 investor letter. Here is what the firm has to say:“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.”8. Ford Motor Company (NYSE:F)Number of Hedge Fund Holders: 40Ford Motor Company (NYSE:F) is one of the world's largest automotive manufacturers, renowned for producing automobiles, trucks, SUVs, and electric vehicles. The company currently offers a quarterly dividend of $0.15 per share. In addition to this, it also announced a supplemental dividend of $0.18 per share on February 6, which makes F one of the best dividend stocks on our list. As of February 21, the stock has a dividend yield of 4.90%.As of the end of the December quarter of 2023, 40 hedge funds tracked by Insider Monkey reported owning stakes in Ford Motor Company (NYSE:F), compared with 43 in the previous quarter. The consolidated value of these stakes is nearly $2 billion.7. Nucor Corporation (NYSE:NUE)Number of Hedge Fund Holders: 40Nucor Corporation (NYSE:NUE) is an American company that operates steel mills and manufacturing facilities across the country. The company also offers value-added services such as steel fabrication and downstream processing. On February 20, the company declared a quarterly dividend of $0.54 per share, which was in line with its previous dividend. Overall, the company has raised its dividends for 51 years in a row, which makes NUE one of the best dividend stocks from the consumer cyclical sector. The stock offers a dividend yield of 1.17%, as of February 21.Nucor Corporation (NYSE:NUE) ended the fourth quarter of 2023 with 40 hedge fund positions, up from 33 in the previous quarter, according to Insider Monkey's database. The stakes owned by these hedge funds have a consolidated value of more than $522.2 million.6. Target Corporation (NYSE:TGT)Number of Hedge Fund Holders: 58Target Corporation (NYSE:TGT) operates a chain of discount retail stores offering a wide range of products including apparel, accessories, beauty products, electronics, home goods, toys, groceries, and more. Currently, the company pays a quarterly dividend of $1.10 per share and has a dividend yield of 2.94%, as of February 21. With a dividend growth streak of 52 years under its belt, TGT is one of the best dividend stocks on our list.Target Corporation (NYSE:TGT) was a part of 58 hedge fund portfolios at the end of Q4 2023, which remained unchanged from the previous quarter, according to Insider Monkey's database. The consolidated value of stakes owned by these funds is over $1.5 billion. Click to continue reading and see 5 Best Consumer Cyclical Dividend Stocks To Invest In.  Suggested articles:13 High Growth Penny Stocks That Are Profitable19 Best Gambling Stocks to Buy Now11 Best Big Name Stocks to Buy Right NowDisclosure. None. 13 Best Consumer Cyclical Dividend Stocks To Invest In is originally published on Insider Monkey.

Insider Monkey

13 Best Consumer Cyclical Dividend Stocks To Invest In

https://finance.yahoo.com/news/13-best-consumer-cyclical-dividend-141700253.html

68660f31-ede4-3657-b1d5-9309d7f0efc7

ALB

There has been a total wash-out in the lithium market over the last year. The elemental material is a key ingredient in the lithium-ion batteries that power smartphones and, importantly to the growth story for the lithium market, electric vehicles (EVs). EV batteries are significantly larger than those in phones or even laptops, so the advent of battery-powered vehicles in the last few years was a boon to the lithium mining industry.Despite reports to the contrary, global EV demand continued to rise throughout 2023. So why did lithium stocks get clobbered? Even businesses that have remained highly profitable took it on the chin -- including Arcadium Lithium (NYSE: ALTM), an integrated miner and refiner that was formed via the merger of Livent and Allkem in January 2024. The stock has been on the move so far in March after getting blasted by worried investors. Is it time to buy?A complex supply and demand environment, exacerbated by geopoliticsLet me give you a bit of backstory on why I'm talking about Arcadium, because mining and refining isn't my usual domain. However, in 2021, I was looking for a new position in my portfolio to act as a type of "inflation hedge." But I also wanted ownership in a business with some real long-term growth prospects. As part of my hedge, I eventually settled on Albemarle (NYSE: ALB), a leader in lithium mining and refining.The stock did quite well during the bear market in 2022, but lithium prices appeared to be peaking by the end of the year. I put Albemarle on the back burner, though I held on to the shares I had purchased up to that point.2023 saw the total meltdown of lithium prices. By the end of the year, all of the massive run-up in the battery material from the years of shortage during the pandemic had been unwound. Now, in early 2024, lithium pricing sits at the lowest level it's been since 2021.Blame the Economics 101 forces of supply and demand. However, what's especially odd is that while demand for lithium has continued to chug higher from all those new EVs (global EV sales increased over 30% last year, and are expected to continue rising at a double-digit percentage rate in 2024), industry executives continue to maintain that there's only a low to moderate excess supply of lithium. So why did this market crash, dragging down shares of Albemarle and Arcadium (and its predecessors Livent and Allkem) with it?Story continuesThe real blame seems to be on geopolitics and economic jockeying between the U.S. and China. According to Arcadium CEO Paul Graves at a recent investor conference, high-production-cost lithium products were being tapped by battery manufacturers in China. According to Graves, use of that high-cost material made sense as long as lithium pricing was high, given various U.S. talks and barriers aimed at circumventing tech manufacturing in China. But now that lithium prices have moderated, evidence is mounting that those high-cost supplies are being taken out.With a bit of excess supply coming down and demand from EVs still rising, the table is being set for a resumption of sustainable growth for the lithium market.Arcadium stock is no slam-dunk buyTo be perfectly clear, I expect the road to recovery to be very bumpy for the lithium market. Case in point: As I was writing this article, Albemarle announced it was issuing new preferred stock to raise some $1.9 billion in cash needed to complete some of its projects this year and pay down debt. The stock fell on the news, and Arcadium fell in sympathy.I'm still holding on to my Albemarle position, which I added a bit more to late last year. Late in 2023, though, with the lithium market wiped out by cratering prices, I wanted to up my bet on what I believe will be a growth market once again. I chose Livent (formerly the lithium refining business of FMC Corp (NYSE: FMC)), now Arcadium after its merger with miner Allkem. The idea for this merger is that the Allkem mines will provide much of the raw material for the Livent refineries, as refining can be one of the most profitable bits of the industry.Arcadium expects its core business to remain highly profitable in 2024. Adjusted EBITDA (or earnings before interest, taxes, depreciation, and amortization) profit margins are expected to be in the mid-30% range or higher, depending on lithium refining margins. Arcadium will be spending $550 million to $750 million to complete some new projects it has in the works, but management believes it already has all the capital it needs to fund those expenditures.The lithium market appears to be stabilizing at the very least, and ongoing growth in EV demand bodes well for top players like Arcadium that are in solid financial position to survive the fallout -- and profit later on down the line. This stock will be incredibly volatile, and success is far from certain, so it's a small position in my portfolio for now.Should you invest $1,000 in Arcadium Lithium Plc right now?Before you buy stock in Arcadium Lithium Plc, 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 Arcadium Lithium Plc wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of March 8, 2024Nicholas Rossolillo and his clients have positions in Albemarle and Arcadium Lithium Plc. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.1 Small Electric Vehicle (EV) Stock to Watch in March -- Is It a Buy For 2024 and Beyond? was originally published by The Motley Fool

Motley Fool

1 Small Electric Vehicle (EV) Stock to Watch in March -- Is It a Buy For 2024 and Beyond?

https://finance.yahoo.com/news/1-small-electric-vehicle-ev-111500100.html

f2e6a39a-bce6-32fb-aa12-8d6b33219fa1

ALB

There's been plenty of attention paid to the direction of the electric vehicle (EV) industry recently. After rapid growth from early adopters and fans of the products, growth seems to have notably slowed in 2024. One EV-related company feeling the effects of this slowdown is lithium supplier Albemarle (NYSE: ALB).Wall Street analyst Vincent Andrews at Morgan Stanley recently sent out a note documenting just how much the slowdown in EV sales is impacting Albemarle. Andrews reduced his firm's price target on the stock from $90 to $81 per share. If he is right, that implies a 35% downside for Albemarle stock as it is currently priced at around $125 a share. The analyst rates the shares the equivalent of a sell because of concerns that lithium demand is plunging along with EV demand.Lithium prices plunge, hurting AlbemarleCharlotte, North Carolina-based Albemarle has already slowed spending on a new $1.3 billion lithium processing project planned in neighboring South Carolina. That's because lithium prices have dropped as much as 90% since the start of 2023. Deferring spending on that project is just one sign that Albemarle is tightening its belt.The company also just announced it was planning to raise $2 billion from the sale of new convertible preferred stock. The company said it will look to use the money to fund investments in lithium operations in Australia and China that are well underway or near completion. It will also use the money to repay outstanding debt.Existing shareholders will likely be diluted by the capital raise. That's one aspect of what makes shares less appealing right now, but the need to raise money with lithium demand and pricing down is also troubling. That helps explain why the Morgan Stanley analyst just dropped his firm's price target on Albemarle by 10%.Should you invest $1,000 in Albemarle right now?Before you buy stock in Albemarle, 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 Albemarle wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Story continuesStock 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, 2024Howard Smith 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.Albemarle Stock Has Over 50% Downside, According to 1 Wall Street Analyst was originally published by The Motley Fool

Motley Fool

Albemarle Stock Has Over 50% Downside, According to 1 Wall Street Analyst

https://finance.yahoo.com/news/albemarle-stock-over-50-downside-185955941.html

c3a4753a-08d9-32a5-b187-b41f511028e8

ALGN

TEMPE, Ariz., February 22, 2024--(BUSINESS WIRE)--Align Technology, Inc. (Nasdaq: ALGN), a leading global medical device company that designs, manufactures, and sells the Invisalign® system of clear aligners, iTero™ intraoral scanners, and exocad™ CAD/CAM software for digital orthodontics and restorative dentistry, today announced that on Wednesday, February 21, 2024, the U.S. District Court for the Northern District of California granted summary judgment in favor of Align Technology, Inc. in two U.S. antitrust class action lawsuits (Simon & Simon, PC et al. v. Align Technology, Inc. and Snow et al. v. Align Technology, Inc.), filed initially in 2020 and 2021, respectively. These lawsuits challenged Align’s decision to end scan acceptance in the U.S. from a third-party scanner that was infringing Align’s intellectual property."We are pleased that the Court has ruled in favor of Align in these two antitrust class actions," said Joe Hogan, president and CEO of Align Technology. "Our teams are constantly innovating to create products and services that delight users with the best clear aligner and scanner technology in the world. We invest more than $300 million annually in research and development to deliver world-class products that doctors and their patients trust to create better smiles, and we are proud of our efforts to move an analog industry to a state of the art digital one.""At Align, our teams are constantly striving to create products and services that exceed our customers' expectations and push the boundaries of what the industry expects," said Julie Coletti, Align executive vice president, chief legal and regulatory officer. "These lawsuits challenged Align's ability to enforce its intellectual property rights in technology that benefits our customers and that our customers rely on. The outcome validates our commitment to innovate in digital dentistry and our desire for a robust and competitive clear aligner and scanner market. We appreciate the Court’s careful consideration of these cases and will continue to develop solutions for our customers and their patients. While this decision resolves most of the claims in the two cases, Align continues to vigorously defend itself against other unrelated claims in another antitrust case that has not yet reached the summary judgment phase."Story continuesAbout Align Technology, Inc.Align Technology designs and manufactures the Invisalign® system, the most advanced clear aligner system in the world, iTero™ intraoral scanners and services, and exocad™ CAD/CAM software. These technology building blocks enable enhanced digital orthodontic and restorative workflows to improve patient outcomes and practice efficiencies for over 256 thousand doctor customers and are key to accessing Align’s 600 million consumer market opportunity worldwide. Over the past 26 years, Align has helped doctors treat approximately 17 million patients with the Invisalign system and is driving the evolution in digital dentistry through the Align Digital Platform™, our integrated suite of unique, proprietary technologies and services delivered as a seamless, end-to-end solution for patients and consumers, orthodontists and GP dentists, and lab/partners. Visit www.aligntech.com for more information.For additional information about the Invisalign system or to find an Invisalign doctor in your area, please visit www.invisalign.com. For additional information about the iTero digital scanning system, please visit www.itero.com. For additional information about exocad dental CAD/CAM offerings and a list of exocad reseller partners, please visit www.exocad.com.Invisalign, iTero, exocad, Align, and Align Digital Platform are trademarks of Align Technology, Inc.Forward-Looking StatementsThis news release contains forward-looking statements, including statements regarding Align's belief that the claims in the cases have been finally resolved, its intentions regarding the pending claims of the outstanding lawsuits and Align’s expectations about future innovation. The foregoing and other risks are detailed from time to time in our periodic reports filed with the Securities and Exchange Commission, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the Securities and Exchange Commission ("SEC") on February 27, 2023 and our latest Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, which was filed with the SEC on November 3, 2023. Align undertakes no obligation to revise or update publicly any forward-looking statements for any reason.View source version on businesswire.com: https://www.businesswire.com/news/home/20240222626066/en/ContactsAlign Technology Madelyn Valente(909) 833-5839mvalente@aligntech.comZeno Group Sarah Johnson(828) 551-4201sarah.johnson@zenogroup.com

Business Wire

U.S. District Court for Northern District of California Grants Summary Judgment in Favor of Align Technology in Two Antitrust Class Action Lawsuits

https://finance.yahoo.com/news/u-district-court-northern-district-151700936.html

cfc194ab-e7d9-3ce9-b5af-9dd840d878ec

ALGN

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 Align Technology, Inc. (NASDAQ:ALGN) in the fourth quarter 2023 investor letter. Headquartered in Tempe, Arizona, Align Technology, Inc. (NASDAQ:ALGN) designs and manufactures orthodontics, restorative, and aesthetic dentistry products.  On February 23, 2024, Align Technology, Inc. (NASDAQ:ALGN) stock closed at $316.88 per share. One-month return of Align Technology, Inc. (NASDAQ:ALGN) was 17.19%, and its shares gained 4.02% of their value over the last 52 weeks. Align Technology, Inc. (NASDAQ:ALGN) has a market capitalization of $ 24.27 billion.Polen Global Growth Strategy stated the following regarding Align Technology, Inc. (NASDAQ:ALGN) in its fourth quarter 2023 investor letter:"Align Technology, Inc. (NASDAQ:ALGN) was the largest relative detractor during the past quarter, primarily because of disappointing third-quarter earnings results where the company’s revenue growth fell short of expectations despite easy comparisons from a year ago. Ultimately, we decided to exit our position in Align during the quarter, as detailed in the Portfolio Activity section.Align Technology represented another sale in the quarter. Align is the global leader in clear aligner teeth straighteners, having pioneered the category a couple of decades ago. Our decision to move on from the position is not a reflection of the quality of the business or the runway for growth ahead. Rather, given a still uncertain macro environment and the nature of their product as a big-ticket consumer discretionary purchase, we felt it more prudent to use the position as a source of funds to allocate to the aforementioned existing positions, which should prove more resilient with a narrower range of outcomes."Story continuesMilanMarkovic78/Shutterstock.comAlign Technology, Inc. (NASDAQ:ALGN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Align Technology, Inc. (NASDAQ:ALGN) was held by 50 hedge fund portfolios, up from 43 in the previous quarter, according to our database.We discussed Align Technology, Inc. (NASDAQ:ALGN) in another article and shared Conestoga Capital Advisors' views on the company. 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:Jim Cramer Says Do Not Buy These 11 Stocks16 Best Russell 2000 Stocks To Buy According To Hedge Funds15 States With the Worst Unemployment Benefits in 2024Disclosure: None. This article is originally published at Insider Monkey.

Insider Monkey

Align Technology (ALGN) Fell on Disappointing Q3 Results

https://finance.yahoo.com/news/align-technology-algn-fell-disappointing-081405884.html

37aca160-8a27-344e-8ec3-69bac2d1647f

ALGN

It has been about a month since the last earnings report for Align Technology (ALGN). Shares have added about 10.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Align Technology 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.Align Technology Tops Q4 Earnings, Margins UpAlign delivered fourth-quarter fiscal 2023 adjusted earnings per share of $2.42, up 39.9% from the year-ago earnings. The reported figure topped the Zacks Consensus Estimate by 11%.GAAP earnings per share for the quarter was $1.64 compared with 54 cents in the same period last year.Full-year adjusted earnings per share was $8.61, an increase of 11% from the year-ago period. The same surpassed the Zacks Consensus Estimate by 3%.RevenuesRevenues increased 6.1% year over year to $956.7 million in the quarter and exceeded the Zacks Consensus Estimate by 3%. Moreover, revenues were favorably impacted by the foreign exchange of approximately $13.8 million year over year.At the constant exchange rate or CER, total revenues in the fourth quarter were up 1.3% year over year.For 2023, revenues were $3.86 billion, up 3.4% from 2022. The figure exceeded the Zacks Consensus Estimate by 0.8%.Segments in DetailThe company has two reportable segments —Clear Aligner and Imaging Systems and CAD/CAM Services (Systems and Services)Revenues in the Clear Aligner segment were up 6.9% year over year to $781.9 million. The growth is attributed to higher average selling prices and non-case revenues, partially offset by lower volumes.Revenues were favorably impacted by a foreign exchange of approximately $12 million (or 1.6%) year over year. Total Clear Aligner shipments during the quarter amounted to 592,635, down 0.6% year over year.Story continuesRevenues from Imaging Systems & CAD/CAM Services were up 2.9% to $174.8 million in the quarter. Revenues witnessed a favorable currency impact of 1.1% year over year.MarginsThe gross profit in the fourth quarter was $669.5 million, reflecting an increase of 8.4% year over year. The gross margin in the quarter under review expanded 146 basis points (bps) year over year to 70.0% despite an increase of 1.2% in the cost of net revenues.During the quarter, SG&A expenses decreased 1.8% to $402.5 million, while R&D expenses fell 1.6% to $82.2 million.The operating income in the quarter under review was $184.9 million, highlighting an increase of 48.9%. The operating margin expanded 556 bps to 19.3%.Financial DetailsAlign Technology exited the fourth quarter of 2023 with cash and cash equivalents of $937.4 million compared with $1.23 billion recorded at the end of the third quarter.The cumulative net cash provided by operating activities at the end of the fourth quarter was $785.8 million, sequentially up from $738.9 million at the end of the third quarter of 2023. Currently, $650 million is available for repurchases under ALGN’s $1 billion Stock Repurchase Program, which was authorized in the first quarter of 2023 to succeed the 2021 $1 billion program. Full-Year GuidanceAlign Technology initiated a financial outlook for 2024.For the full year, ALGN anticipates revenues to be up in the mid-single digits than 2023. The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $4.06 billion.Both GAAP and adjusted operating margins for the full year are anticipated to be slightly above the 2023 GAAP and adjusted operating margins, respectively. The company expects to invest approximately $100 million in capital expenditures, primarily related to building construction and improvements and manufacturing capacity to support continued expansion.For the first quarter of 2024, ALGN anticipates worldwide revenues in the range of $960 million-$980 million. The Zacks Consensus Estimate is pegged at $973.2 million.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.The consensus estimate has shifted -9.05% due to these changes.VGM ScoresCurrently, Align Technology has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, 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, Align Technology has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAlign Technology, Inc. (ALGN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Align Technology (ALGN) Up 10.6% Since Last Earnings Report: Can It Continue?

https://finance.yahoo.com/news/align-technology-algn-10-6-163042329.html

335dc619-bb89-356c-94a4-cebe81816259

ALGN

In this article, we will be taking a look at the 6 cheaper alternatives to braces for kids and adults. If you do not want to learn about the global orthodontics market, head straight to the 3 Cheaper Alternatives to Braces for Kids and Adults.In orthodontic care, pursuing a straighter smile doesn't always have to come with a hefty price tag. For kids and adults seeking to correct dental alignment, there exists a range of cost-effective alternatives to traditional braces. From removable aligners to innovative at-home kits, these options offer affordability without compromising effectiveness. Exploring these cheaper alternatives allows individuals to achieve the confident, radiant smiles they desire without breaking the bank. Orthodontics Market Overview The global orthodontics market expansion is attributed to several factors, including technological advancements, increasing aesthetic preferences, and a growing understanding of oral health's importance. Notably, the market is segmented into instruments and supplies, with clear aligners driving demand in the supplies segment. Some notable advancements include products like Ultima Hook by Ormco Corporation and the Eon Aligner ecosystem by Eon Dental. The orthodontics market is leading globally in North America due to advanced healthcare facilities and culture emphasizing dental hygiene. In Europe, the market is expected to reach $8.76 billion by 2030, and $8.21 billion in the Asia Pacific region by 2030. The largest market share in 2023 is anticipated to come from the removable braces segment due to factors like malocclusion prevalence and lower costs compared to fixed braces. In the US, the orthodontics market generated a revenue of USD 3.09 billion in 2022, focusing on clear braces and rising awareness of dental care. Europe accounted for a significant market share in 2022, driven by improved healthcare facilities and technologically advanced products. Story continuesInvisalign, a popular transparent aligner system, has contributed significantly to the rising demand for orthodontic supplies globally. Leading companies in the dental products and implants sector include Henry Schein, Inc. (NASDAQ: HSIC), Align Technology, Inc. (NASDAQ: ALGN), and Straumann (SWX: STMN). Henry Schein dominates 28.6% of the dental equipment market share, while Align Technology holds 80-85% of the clear aligner market share due to increased demand for aesthetic orthodontic solutions. Straumann commands about 24% of the global dentistry market share. Align Technology, Inc. (NASDAQ: ALGN) is renowned for its innovative contributions to orthodontics, particularly with the Invisalign system, which is revolutionizing treatment efficiency and patient outcomes. Align Technology, Inc. (NASDAQ: ALGN)'s future strategies focus on digital innovation, with a pledge of $1 million to support orthodontic research in the United States. Henry Schein, Inc. (NASDAQ: HSIC), a global healthcare leader since 1932, continues prioritizing orthodontics with a strong focus on innovation, education, and social responsibility through its Henry Schein Cares initiative. Embracing the latest trends, the company has introduced Minimum Touch OrthodonticsSM, facilitating virtual visits and supporting practice growth. Looking ahead, upcoming trends emphasize innovation in appliances, treatments, and digital workflows. Regarding financial performance, Q4 2023 witnessed $3.1 billion in net sales, marking a 2.3% increase from the previous year, with predicted sales growth for 2023 ranging from 1% to 3%. Henry Schein, Inc. (NASDAQ: HSIC) has been recognized as one of the World's Most Ethical Companies for the 13th consecutive year, underscoring its commitment to ethical business practices. The dental sector, including orthodontics, has shown recovery post-pandemic, with spending on dental services reaching about $113.4 billion in August 2022, representing a 6.4% increase from the previous year. Within the broader dental care industry, the dental implant market is expected to reach $9.62 billion by 2030, with clear aligners also gaining popularity due to growing aesthetic awareness. As smiles are increasingly considered a vital social asset, dental care companies like Align Technology, Inc. are poised for growth. Bridging Global Disparities in Oral Health Through Dental Innovations Oral health issues affect a staggering 3.5 billion individuals worldwide, with 2 billion grappling with cavities in permanent teeth and 514 million children enduring cavities in their primary teeth. This challenge is exacerbated by limited access to oral healthcare services, particularly in low- and middle-income countries. In 2019, Pakistan confronted a severe shortage of dentists, with one available for every 5,000 people in urban areas and none in rural regions like Tharparkar, home to 200,000 individuals. In contrast, Denmark enjoys exemplary dental health despite a relatively low dentist-to-population ratio. Conversely, Ethiopia needs help with a meagre 0.02 dentists per 10,000 people.  The Philippines faces high rates of dental decay, especially among children. Even in nations renowned for advanced healthcare like the United States, there exists a shortage of dentists, with states like California and Missouri notably underserved. Addressing these disparities is paramount in alleviating the global burden of oral diseases. Dental implants emerge as a resilient solution for individuals encountering challenges related to dentures or bridges. Crafted from metal posts, they provide a steadfast foundation for artificial teeth, reinstating aesthetics and functionality. Research indicates commendable success rates for dental implants, hovering around 95% in the lower jaw and approximately 90% in the upper jaw, with a slightly lower success rate due to diminished bone density. In 2023, the cost of dental implants varies based on complexity. For instance, single-tooth implants typically cost $3,000 to $4,500, encompassing examinations, imaging, extractions, if necessary, and crown fabrication. Full-mouth replacements, influenced by CT scans and bone grafts, may cost between $60,000 and $90,000. Alternative solutions like implant-supported bridges offer cost-effective options for replacing multiple teeth. Full-mouth replacement alternatives encompass individual tooth implants, albeit pricier, and implant-supported dentures such as the All-on-4 method, with costs ranging from $24,000 to $50,000. Location, procedures, and materials utilized significantly influence these costs. Importance and Impact of Dental Insurance Coverage on Oral Health and Financial Security Dental insurance coverage plays a pivotal role in ensuring access to oral healthcare, thus impacting both overall wellness and financial security. Dental insurance is widely acknowledged for its role in promoting oral health and overall well-being.  Dental insurance coverage varies across age groups and income levels in the United States. For children aged 0-18, approximately 53% have private dental benefits, 38% have dental benefits through Medicaid or CHIP, and 9% do not have dental benefits. Similarly, for adults aged 19-64, 61.4% have private dental benefits, 15.7% have dental benefits through Medicaid, and 22.8% do not.  As of 2019, 70.3% of persons under 65 had dental insurance in the US. However, challenges persist, with an estimated 68.5 million adults needing dental insurance and additional household members facing potential loss of coverage. Financial aspects related to dental insurance coverage include significant out-of-pocket costs, with 40% of total US spending on dental care being out of pocket in 2014.  Lower-income individuals are particularly affected by cost barriers to accessing dental care. Moreover, many adults covered by Medicaid and Medicare lack comprehensive dental coverage, leading to disparities in access to oral healthcare services. The importance of dental insurance is underscored by its impact on overall health, emotional well-being, and financial benefits such as cost savings.  Efforts to increase broad dental coverage in Medicaid and Medicare are essential to address disparities and ensure optimal oral health outcomes for all individuals. Furthermore, understanding the financial statistics related to dental care is crucial. In 2021, the national average dental plan premium for all commercial products was $29.63 per monthly member, significantly lower than medical premiums. Dental premiums typically cover preventive services at 100%, basic procedures at 80%, and significant procedures at 50%, with an annual limit averaging $1,500 - $2,500. 6 Cheaper Alternatives to Braces for Kids and AdultsOur Methodology For our methodology, we have ranked cheaper alternative options to braces for kids and adults based on their average prices, listing them in ascending order from the most affordable to the most expensive. Here is our list of the 6 cheaper alternatives to braces for kids and adults. 6. Lingual Braces Average cost: $7500 Lingual braces offer a discreet and effective orthodontic treatment option by being placed behind the teeth, making them nearly invisible. Their popularity is increasing in the US, particularly among those seeking less noticeable treatment, making them stand among best braces for crowded teeth. They successfully correct various orthodontic issues and have a comparable success rate to traditional braces. However, due to their customized nature and specialized placement, they can be slightly more expensive, ranging from $8,000 to $10,000 for a full treatment course.  5. Invisalign Average cost: $6000 Invisalign has become a popular alternative to traditional braces due to its inconspicuous nature and comparable cost, ranging from $2,000 to $10,000 in the US. Many dental insurance plans cover Invisalign to the same extent as braces, and payment plans are often available. While both are effective, Invisalign is best for minor orthodontic issues like gaps or crowded teeth. It may be less effective for severe cases but is particularly useful for mild to moderate overbites. Invisalign treatment typically lasts 12 months, shorter than braces, and offers better oral hygiene as aligners are removable, although consistent wear is essential for effectiveness. 4. Ceramic braces Average cost: $5500 Ceramic braces are a popular and slightly more expensive alternative to traditional metal braces, with costs ranging between 10 and 25 percent higher. Due to their tooth-colored appearance, they provide a discreet option, making them practical for treating various orthodontic issues. Approximately 4 million people in the US wear braces, many opting for cost-effective alternatives like ceramic braces. Regular cleaning and dietary precautions are necessary to maintain their appearance and effectiveness. Ceramic braces cost between $4,000 and $7,000, making them a popular choice for those seeking orthodontic treatment and one of the cheaper alternatives to braces for kids and adults.Click to see and continue reading the 3 Cheaper Alternatives to Braces for Kids and Adults.Suggested Articles:Top 15 Countries for Dental Tourism.15 Best Dental Insurance Companies Heading into 2024.15 Best Countries for Dental Implants.Disclosure. None: The 6 Cheaper Alternatives to Braces for Kids and Adults is originally published on Insider Monkey.

Insider Monkey

6 Cheaper Alternatives to Braces for Kids and Adults

https://finance.yahoo.com/news/6-cheaper-alternatives-braces-kids-140847881.html

5f4f9f56-aa80-345a-baa2-28eec61fdcfd

ALL

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.Why Investors Should Pay Attention to This Value StockFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.Allstate (ALL)Founded in 1931 and headquartered in Northbrook, IL, The Allstate Corporation is the third-largest property-casualty (P&C) insurer and the largest publicly-held personal lines carrier in the U.S. The company also provides a range of life insurance and investment products to its diverse customer base. It provides insurance products to approximately 16 million households through more than 12,000 exclusive agencies and financial specialists in the U.S. and Canada.ALL boasts a Value Style Score of B and VGM Score of A, and holds a Zacks Rank #2 (Buy) rating. Shares of Allstate are trading at a forward earnings multiple of 12.3X, as well as a PEG Ratio of 0.4, a Price/Cash Flow ratio of 38.5X, and a Price/Sales ratio of 0.7X.A company's earnings performance is important for value investors as well. For fiscal 2024, seven analysts revised their earnings estimate higher in the last 60 days for ALL, while the Zacks Consensus Estimate has increased $0.57 to $12.95 per share. ALL also holds an average earnings surprise of 43.9%.With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding ALL to their portfolios.Story continuesWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportThe Allstate Corporation (ALL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Allstate (ALL) is a Top Value Stock for the Long-Term

https://finance.yahoo.com/news/why-allstate-top-value-stock-144012592.html

1e92b386-a0fb-3deb-b12e-6c82bb9bc006

ALL

The Allstate Corporation ALL announced that its board of directors increased its cash dividend to 92 cents per share from 89 cents, reflecting a 3.4% jump from the prior payout. The dividend will be paid out on Apr 1, to shareholders on record as of Mar 4.For more than a decade, it has consistently increased dividends on an annual basis. The latest dividend amount translates to $3.68 per share on an annualized basis. Considering the Feb 23 closing price of $159.13 per share, Allstate’s dividend yield currently stands at 2.3% compared with the industry average of 0.3%.The company also announced quarterly preferred dividends of an aggregate value of $29.3 million on three series of preferred stocks. The preferred dividends will be paid out on Apr 15, to shareholders on record as of Mar 28.Allstate intends to boost shareholder value with dividend hikes. It paid out dividends of $925 million in 2023. Although it made share buybacks of $330 million in 2023, it suspended buybacks in July 2023. It had $472 million left in the current authorization, which is expected to expire on Mar 31, 2024.Its strong performance is expected to help its shareholder value boosting efforts. The company reported strong fourth-quarter earnings on the back of prudent rate increases, a rise in investment income, strong underwriting results, favorable weather conditions and a decline in expenses. It generated an operating cash flow of $4.2 billion in 2023.Price PerformanceThe stock has jumped 51% in the past six months compared with the 18.2% rise of the industry.Zacks Investment ResearchImage Source: Zacks Investment ResearchZacks Rank Other Stocks to ConsiderAllstate currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader Finance space are Ryan Specialty Holdings, Inc. RYAN, Chubb Limited CB and Brown & Brown, Inc. BRO, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Story continuesThe Zacks Consensus Estimate for Ryan Specialty’s 2024 full-year earnings indicates a 23.4% year-over-year increase. It beat earnings estimates in two of the past four quarters and met twice, with an average surprise of 5.1%. Also, the consensus mark for RYAN’s 2024 full-year revenues suggests 19.1% year-over-year growth.The consensus mark for Chubb’s 2024 full-year earnings is pegged at $21.23 per share, which witnessed seven upward estimates in the past month against no movement in the opposite direction. It beat earnings estimates in each of the past four quarters, with an average surprise of 23.4%. Furthermore, the consensus estimate for CB’s 2024 full-year revenues suggests 7.4% year-over-year growth.The Zacks Consensus Estimate for Brown & Brown’s 2024 full-year earnings is pegged at $3.20 per share, which indicates 13.9% year-over-year growth. The estimate remained stable over the past week. BRO beat earnings estimates in each of the past four quarters, with an average surprise of 11.2%.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 reportChubb Limited (CB) : Free Stock Analysis ReportThe Allstate Corporation (ALL) : Free Stock Analysis ReportBrown & Brown, Inc. (BRO) : Free Stock Analysis ReportRyan Specialty Holdings Inc. (RYAN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Allstate (ALL) Rewards Shareholders With a 3.4% Dividend Hike

https://finance.yahoo.com/news/allstate-rewards-shareholders-3-4-165500020.html

88c202f6-bff7-3094-88ae-5c3dc8ecf601

ALL

It has been about a month since the last earnings report for Allstate (ALL). Shares have lost about 3.2% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Allstate due for a breakout? 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.Allstate Q4 Earnings Beat on Solid Underwriting ResultsThe Allstate Corporation reported a fourth-quarter 2023 adjusted net income of $5.82 per share, which surpassed the Zacks Consensus Estimate by 50.4%. The company reported a loss of $1.33 per share in the year-ago quarter.Operating revenues of $14.9 billion rose 10% year over year in the quarter under review. The year-over-year growth was due to a 10.7% increase in Property-Liability insurance premiums earned. Yet, the top line fell short of the consensus mark by a whisker.The quarterly results benefited on the back of prudent rate increases, a rise in investment income, strong underwriting results, favorable weather conditions and a decline in expenses. However, the upside was partly offset by lower performance-based investment income.Q4 OperationsNet investment income improved 8.4% year over year to $604 million in the fourth quarter but missed the Zacks Consensus Estimate of $643 million.  The metric benefited on the back of improved yields from the fixed-income portfolio, resulting in 30.2% year-over-year growth in market-based investment income. However, performance-based investment income plunged 59.2% year over year due to a decline in valuation increases and reduced income from the underlying investments’ sale.Total costs and expenses of $13 billion decreased 7.5% year over year and also came in lower than our estimate of $13.7 billion. The year-over-year decline was due to lower property and casualty insurance claims and claims expenses.Story continuesAllstate generated a pretax income of $1.8 billion in the quarter under review against the year-ago quarter’s pretax loss of $410 million.Total policies in force were 192.8 million as of Dec 31, 2023, up 2% year over year.Catastrophe losses dropped 91.3% year over year to $68 million in the fourth quarter.Segmental PerformancesThe Property-Liability segment recorded premiums earned of $12.6 billion, which advanced 10.7% year over year on the back of increased average premiums resulting from rate hikes. The metric almost touched the Zacks Consensus Estimate but missed our estimate of $12.7 billion. The Allstate brand gained from improved auto and homeowners average premiums, while average premium growth and an increase in the number of policies contributed to the results of National General.Underwriting income in the unit amounted to $1.3 billion in the fourth quarter against the prior-year quarter’s underwriting loss of $1 billion. The metric was aided by a rise in earned premiums, reduced catastrophe losses and favorable underlying loss experience. The combined ratio of 89.5% improved 1,960 basis points (bps) year over year in the quarter under review and came lower than our estimate of 96.6%.The Protection Services segment’s revenues grew 11.8% year over year to $719 million in the fourth quarter, thanks to strength in Allstate Protection Plans. However, the figure fell short of the consensus mark of $731 million. Adjusted net income of $4 million declined nearly 10-fold year over year due to a rise in state income taxes and deferred tax liabilities.The Allstate Health and Benefits segment reported premium and contract charges of $467 million, which improved 7.1% year over year in the quarter under review, and beat the Zacks Consensus Estimate of $447 million and our estimate of $435.1 million. The unit’s performance was driven by sound individual health and group health results. Adjusted net income advanced 3.4% year over year to $60 million, which matched the consensus mark but outpaced our estimate of $56.5 million.Financial Update (as of Dec 31, 2023)Allstate exited the fourth quarter with a cash balance of $722 million, which declined 1.9% from the figure at 2022 end. Total assets of $103.4 billion increased 5.5% from the 2022-end level.Debt amounted to $7.9 billion, which dipped 0.3% from the figure as of Dec 31, 2022.Total shareholders’ equity of $17.8 billion increased 1.6% from the 2022-end figure.Book value per common share was $59.39 as of Dec 31, 2023, which grew 2.2% from the 2022 figure.The adjusted net income return on Allstate’s common shareholders’ equity in the trailing 12-month period was 1.5%. The metric was recorded at a negative figure of 1.2% in the prior-year comparable period.Full-Year UpdateAllstate reported an adjusted net income of 95 cents per share in 2023. A loss of 88 cents per share was reported in 2022.Consolidated revenues rose 11.1% year over year to $57.1 billion. Property-Liability insurance premiums earned of $48.4 billion rose 10.3% year over year. Net investment income increased 3.1% year over year to $2.5 billion.It incurred an underwriting loss of $2.2 billion, narrower than the prior year’s loss of $2.9 billion. The combined ratio improved 210 bps year over year to 104.5%.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.The consensus estimate has shifted 9.32% due to these changes.VGM ScoresAt this time, Allstate has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile 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.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Allstate has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerAllstate belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Cincinnati Financial (CINF), has gained 9% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.Cincinnati Financial reported revenues of $2.31 billion in the last reported quarter, representing a year-over-year change of +10.8%. EPS of $2.28 for the same period compares with $1.27 a year ago.Cincinnati Financial is expected to post earnings of $1.48 per share for the current quarter, representing a year-over-year change of +66.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -7%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Cincinnati Financial. Also, the stock has a VGM Score of B.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportThe Allstate Corporation (ALL) : Free Stock Analysis ReportCincinnati Financial Corporation (CINF) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Allstate (ALL) Down 3.2% Since Last Earnings Report: Can It Rebound?

https://finance.yahoo.com/news/allstate-down-3-2-since-163047857.html

e2adab96-e1ca-3382-80c6-c19deff74522

ALL

Cisco Systems recently had a problem: A manager and a new employee at the technology giant struggled to work together. As 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.Continue reading

The Wall Street Journal

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

https://finance.yahoo.com/m/e60e2c9a-fee3-34de-9545-67b7649b6ac3/ai-is-taking-on-new-work-but.html

e60e2c9a-fee3-34de-9545-67b7649b6ac3

ALLE

Leading Lock Brand Ranked Highest in Reviews and Trust Rating Amongst CompetitorsCARMEL, Ind., Feb. 26, 2024 /PRNewswire/ -- Schlage®, a leading provider of home security and access solutions for over a century, has been named the top door lock and hardware brand in Lifestory Research's America's Most Trusted® study for the fifth consecutive year.SchlageFor its 2024 America's Most Trusted study, Lifestory Research surveyed over 3,700 consumers considering purchasing door locks and hardware sets between January and December 2023. In the study, consumers were asked to rate door lock brands on a variety of aspects, including reputation, likelihood of recommending it to others, overall feelings toward the brand and their trust in it. Schlage was rated the most trustworthy brand, achieving the highest Net Trust Quotient score (119.7) among the most popular door lock and hardware brands."We are honored to have been awarded the title of the Most Trusted Lock Brand for the fifth consecutive year, and we sincerely thank our loyal customers for their continued trust in our products," said David Perozzi, general manager of Allegion Home. "Whether it's about protecting your loved ones or securing your business assets, the quality of the security solution you choose matters. At Schlage, it's the trust of our customers that motivates us to keep pushing the boundaries of innovation and deliver best-in-class security solutions."Founded over a decade ago, Lifestory Research America's Most Trusted® was established to gather consumer input and assess brand trust. To be included in the final ranking, brands must obtain enough survey responses to achieve a 95% confidence level with no more than a 3% margin of error. Once confidence levels are determined, survey results are compared with peer organizations of like size and complexity."Trust is the foundation of any successful brand, and those who hold the trust of their consumers are truly worth celebrating," said Eric Snider, president of Lifestory Research. "Brand trust is a critical factor for consumers when it comes to home security, arguably one of the most important aspects of the home."Story continuesFor more information, please visit www.Schlage.com or visit the Schlage booth (#C2115) at the International Builders' Show.Schlage is an Allegion brand.About AllegionAllegion (NYSE: ALLE) is a global pioneer in seamless access. We keep people and their assets safe, wherever they are, bringing together simple solutions, convenient access and advanced technology.For more, visit www.allegion.com.About the America's Most Trusted® StudyThe Lifestory Research America's Most Trusted® study is the most extensive and longest-running independent research program seeking to understand the opinions of consumers shopping for home products. Lifestory Research conducts an ongoing annual survey in which people anonymously assess brands encountered during their search for specific products. This research uses the highest quality social and opinion science research practices to provide consumer-driven data insights.About Lifestory Research®Leaders, companies, and brands know that great ideas are only useful if they move people toward action. Lifestory Research is an independent, science-driven consumer insights and strategy consulting firm that ignites relationships between companies and their audiences. We are passionate about customers, employees, brands, and the science of influence. We use quantitative and qualitative research to create customer insights, drive innovation, deliver brand strategy, and move people forward.For more information, please visit www.lifestoryresearch.com.CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/schlage-named-americas-most-trusted-lock-brand-for-fifth-consecutive-year-302069474.htmlSOURCE Schlage

PR Newswire

Schlage Named America's Most Trusted® Lock Brand for Fifth Consecutive Year

https://finance.yahoo.com/news/schlage-named-americas-most-trusted-140300428.html

b98d7f7e-8fa8-3e25-8891-001739d3c3bf

ALLE

Investors with an interest in Security and Safety Services stocks have likely encountered both Brady (BRC) and Allegion (ALLE). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.Brady and Allegion are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BRC is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.BRC currently has a forward P/E ratio of 14.45, while ALLE has a forward P/E of 18.72. We also note that BRC has a PEG ratio of 2.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ALLE currently has a PEG ratio of 4.73.Another notable valuation metric for BRC is its P/B ratio of 2.69. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ALLE has a P/B of 8.60.These metrics, and several others, help BRC earn a Value grade of B, while ALLE has been given a Value grade of C.Story continuesBRC stands above ALLE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BRC is the superior value option right now.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportBrady Corporation (BRC) : Free Stock Analysis ReportAllegion PLC (ALLE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

BRC or ALLE: Which Is the Better Value Stock Right Now?

https://finance.yahoo.com/news/brc-alle-better-value-stock-164014900.html

ea0521cd-6f85-3d7d-b753-0756b5f4a2ea

ALLE

In this article, we will take a detailed look at the 10 Mid-Cap Stocks with Insider Purchases. For a quick overview of such stocks, read our article 5 Mid-Cap Stocks with Insider Purchases.Investors are yet again in a wait-and-see mode ahead of key jobs and inflation numbers, but the overall sentiment in the market is positive, helped by the Fed Chair Jerome Powell’s latest statement where he said the central bank expects to begin cutting rates later this year. Meanwhile notable investment firms are continuing to expect the stock market to remain elevated this year and beyond. In its latest report Goldman Sachs said swift revenue growth at tech companies would be enough to fund AI-related investments in the coming years. Goldman Sachs said it expects stock buybacks to exceed $1 trillion for the first time in 2025, driven by expected rate cuts and strong revenue growth of technology companies. Goldman Sachs’ analysts led by Cormac Conners and David Kostin said in a note on March 6 that they expect a whopping 16% growth in share repurchases from S&P 500 companies to $1.08 trillion in 2025.The Pendulum is Swinging in Favor of Small- and Mid-Cap Stocks?Wall Street analysts also expect the broader market to start enjoying the market gains hitherto seen only by mega-cap technology stocks. UBS in a latest report said it expects small-cap stocks to outperform large-cap stocks in the coming weeks and months. UBS thinks small-cap companies are undervalued when compared to their large-cap counterparts. UBS also brushed aside the notion that many small-cap companies are unprofitable, as it believes these companies have enough cash runway to operate for years to come. UBS analysts also said upcoming growth catalysts make small-cap stocks attractive.In this environment, it’d be interesting to focus our attention more on smaller companies instead of giving all the love to large-cap or mega-cap tech stocks. That’s why in this article we decided to take a look at the mid-cap stocks that are currently being snapped up by insiders.Story continuesMid-Cap Stocks with Insider PurchasesLuis Louro / shutterstock.comMethodologyFor this article we used Insider Monkey's stock screener for insider trading and picked 10 mid-cap stocks with the highest insider purchases in terms of dollar value over the past few weeks. We only picked stocks that saw insider purchases initiated by executives, officers and directors. Some top names in the list include Transocean LTD (NYSE:RIG), Jazz Pharmaceuticals PLC (NASDAQ:JAZZ) and Instacart (NASDAQ:CART). With each stock we have also mentioned the number of hedge fund investors. Why do we pay attention to hedge fund sentiment? Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).10. National Health Investors Inc (NYSE:NHI)Number of Hedge Fund Investors: 9Charlotte A. Swafford, a director at National Health Investors Inc (NYSE:NHI), acquired 10,000 shares of National Health Investors Inc (NYSE:NHI) on February 27 at $58.69 per share. Since then through March 6 the stock has slipped about 1% in value.9. Allegion PLC (NYSE:ALLE)Number of Hedge Fund Investors: 22Allegion PLC (NYSE:ALLE) sells locks, biometric scanning systems and other security solutions. It is one of the mid-cap stocks that recently saw insider purchases as Allegion PLC's (NYSE:ALLE) CEO John Stone bought 10,000 shares of Allegion PLC (NYSE:ALLE) at $132.42 on February 22. Since then the stock has slipped 0.96%.As of the end of the fourth quarter of 2023, 22 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Allegion PLC (NYSE:ALLE). The most significant stake in Allegion PLC (NYSE:ALLE) is owned by David Brown’s Hawk Ridge Management which owns a $90 million stake in Allegion PLC (NYSE:ALLE).8. Agree Realty Corporation (NYSE:ADC)Number of Hedge Fund Investors: 26Agree Realty Corporation (NYSE:ADC) ranks eighth in our list of the mid-cap stocks with recent insider purchases.  Richard Agree, Executive Chairman of the Board of Directors at Agree Realty Corporation (NYSE:ADC), on February 29 bought 16,000 shares of Agree Realty Corporation (NYSE:ADC) at $55.50 per share. On that day the stock was trading at around $54.95. Since then the stock has gained about 4.20%. On February 21 Richard Agree had snapped up 3,500 shares of Agree Realty Corporation (NYSE:ADC) at $56.92As of the end of the fourth quarter of 2023, 26 hedge funds out of the 933 fund tracked by Insider Monkey had stakes in Agree Realty Corporation (NYSE:ADC).Hedge funds and insiders are also buying Transocean LTD (NYSE:RIG), Jazz Pharmaceuticals PLC (NASDAQ:JAZZ) and Instacart (NASDAQ:CART). The company provided key business updates during its latest earnings call:"With more than $235 million of forward equity raised late in the fourth quarter, we anticipate putting in place a new ATM program in the coming weeks in normal course. We also demonstrated our ability to access attractive bank debt with a market-leading $350 million 5.5-year term loan at a fixed rate of 4.52% inclusive of prior hedging activity. The term loan received strong support from our key banking relationships and the 5.5-year term allowed us to extend the maturity into 2029. As Joey mentioned, our debt maturity schedule remains in an excellent position with no material maturities until 2028. Our capital markets activity further fortified our balance sheet and positioned us for continued growth in 2024. We ended the year with over $1 billion of total liquidity, including more than $235 million of outstanding forward equity, $773 million of availability on the revolver and approximately $15 million of cash on hand.In addition, our revolving credit facility and term loan have accordion options, allowing us to request additional lender commitments of $750 million and $150 million, respectively. In addition to our strong liquidity position, free cash flow after the dividend is now approaching $100 million on an annualized basis. As of December 31, pro forma for the settlement of our outstanding forward equity, net debt to recurring EBITDA was approximately 4.3x. Excluding the impact of unsettled forward equity, our net debt to recurring EBITDA was 4.7x."Read the full earnings call transcript here.7. AMN Healthcare Services, Inc. (NYSE:AMN)Number of Hedge Fund Investors: 27AMN Healthcare Services, Inc. (NYSE:AMN) ranks seventh in our list of the top mid-cap stocks with latest insider purchases. On February 27 AMN Healthcare Services, Inc. (NYSE:AMN) CEO Cary Grace snapped up 17,500 shares of AMN Healthcare Services, Inc. (NYSE:AMN) at $56.68 per share. Since the date of this insider purchase the stock has gained about 6.19%.As of the end of the fourth quarter of 2023, 27 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in AMN Healthcare Services, Inc. (NYSE:AMN).Like AMN, insiders are also buying Transocean LTD (NYSE:RIG), Jazz Pharmaceuticals PLC (NASDAQ:JAZZ) and Instacart (NASDAQ:CART).Madison Small Cap Fund stated the following regarding AMN Healthcare Services, Inc. (NYSE:AMN) in its fourth quarter 2023 investor letter:“We sold temporary staffing and consulting company Robert Half to fund the purchase of healthcare staffing company AMN Healthcare Services, Inc. (NYSE:AMN). Although both businesses are valued attractively, AMN’s business is much less cyclical and its valuation slightly more attractive. We believe healthcare staffing is in a cyclical lull post the pandemic but has the long term secular tailwinds to outperform in the medium term.”6. Exelixis Inc (NASDAQ:EXEL)Number of Hedge Fund Investors: 33Biotechnology company Exelixis Inc (NASDAQ:EXEL) ranks sixth in our list of the mid-cap stocks which recently saw insider purchases.  David E. Johnson, a director at Exelixis Inc's (NASDAQ:EXEL) board, amassed 190,000 shares of Exelixis Inc (NASDAQ:EXEL) at $20.70. The transaction took place on February 21. Since then the stock has gained about 8.2%.The company talked about guidance and business updates in a recent earning call:"Cabometyx maintained its status as the leading TKI for RCC in both the first-line IO TKI market and second-line monotherapy segment. Fourth quarter cabo franchise net product revenues grew 14% year-over-year, compared to fourth quarter 2022. Cabo franchise net product revenues grew 16% for full year 2023 compared to full year 2022. Highlighting its role as a worldwide leading TKI global cabozantinib franchise Net product revenues generated by Exelixis and its partners were approximately $600 million and $2.3 billion in the fourth quarter and full year 2023 respectively. Chris will review our 2024 financial guidance in his prepared remarks. Second, final reply brief should be submitted in the next few weeks for the second MSN and the trial that took place in October and we expect a ruling in the first-half of 2024.Obviously, this is a critical milestone for the company and the cabozantinib franchise. While we will not speak to any specifics today, I’m proud of the work that our team did preparing and presenting this case. Exelixis has and will continue to vigorously protect our intellectual property rights with respect to cabo and our other differentiated molecules that we pursue on behalf of patients with cancer. Third, we made significant progress in advancing the pipeline in 2023 that was highlighted at our R&D Day presentation in December. Our top priority for 2024 is to advance potential new cabo indications for net and metastatic CRPC."Read the full earnings call transcript here. Click to continue reading and see 5 Mid-Cap Stocks with Insider Purchases. 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. 10 Mid-Cap Stocks with Insider Purchases was initially published on Insider Monkey.

Insider Monkey

10 Mid-Cap Stocks with Insider Purchases

https://finance.yahoo.com/news/10-mid-cap-stocks-insider-150853923.html

d3d9c94c-85c1-3760-a0cf-d7184d0a4018

ALLE

Allegion plc (NYSE:ALLE) stock is about to trade ex-dividend in 4 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled 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. Meaning, you will need to purchase Allegion's shares before the 14th of March to receive the dividend, which will be paid on the 29th of March.The company's next dividend payment will be US$0.48 per share, and in the last 12 months, the company paid a total of US$1.80 per share. Last year's total dividend payments show that Allegion has a trailing yield of 1.5% on the current share price of US$130.85. 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 Allegion has been able to grow its dividends, or if the dividend might be cut. See our latest analysis for Allegion If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Fortunately Allegion's payout ratio is modest, at just 29% of profit. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Fortunately, it paid out only 31% of its free cash flow in the past year.It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.Click here to see the company's payout ratio, plus analyst estimates of its future dividends.historic-dividendHave Earnings And Dividends Been Growing?Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. With that in mind, we're encouraged by the steady growth at Allegion, with earnings per share up 6.2% on average over the last five years. Management have been reinvested more than half of the company's earnings within the business, and the company has been able to grow earnings with this retained capital. We think this is generally an attractive combination, as dividends can grow through a combination of earnings growth and or a higher payout ratio over time.Story continuesMany investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the last 10 years, Allegion has lifted its dividend by approximately 20% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.The Bottom LineHas Allegion got what it takes to maintain its dividend payments? Earnings per share have been growing moderately, and Allegion is paying out less than half its earnings and cash flow as dividends, which is an attractive combination as it suggests the company is investing in growth. We would prefer to see earnings growing faster, but the best dividend stocks over the long term typically combine significant earnings per share growth with a low payout ratio, and Allegion is halfway there. There's a lot to like about Allegion, and we would prioritise taking a closer look at it.In light of that, while Allegion has an appealing dividend, it's worth knowing the risks involved with this stock. Every company has risks, and we've spotted 1 warning sign for Allegion you should know about.A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield 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.

Allegion (NYSE:ALLE) Could Be A Buy For Its Upcoming Dividend

https://finance.yahoo.com/news/allegion-nyse-alle-could-buy-131231259.html

62369f04-1ba7-327b-8cf4-0873cddc65d2

AMAT

Share prices of semiconductor manufacturing equipment maker Applied Materials (NASDAQ: AMAT) soared after its latest quarterly update. On the surface, the financials were nothing to be excited about. Some hype surrounding generative artificial intelligence (AI) coming to smartphones, PCs, and an app near you (a growth cycle Applied Materials most certainly participates in) might offer some explanation for the stock price running higher.But what's the real reason this stock is up over 60% in the past year?It likely boils down to the business managing to sidestep not one, but two different cyclical downturns for the semiconductor industry. It also helps that it fully expects more profitable growth in 2024. Here's why Applied Materials looks to be an exceptional AI stock this year and beyond.Flat revenue about to finally turn higher?After a sizable jump in sales during the pandemic (when manufacturers were trying to increase their semiconductor output to meet demand for all things electronic), Applied Materials' revenue has been lackluster over the past 18 months or so. At the midpoint of expectations for fiscal year 2024's Q2 (which will end March 2024), the company expects revenue to be flat to slightly down year over year -- or up a low-single-digit percentage at the high end of guidance. Not very exciting.However, when you compare that to its longtime industry peer Lam Research (NASDAQ: LRCX), which was hit by a decline in consumer electronics and enterprise compute spending in the wake of the pandemic, Applied Materials' sales have actually held up well.AMAT Revenue (TTM) ChartYou see, historically Applied Materials' revenue focused on logic chip manufacturing. But in recent years, it pivoted its portfolio to address "mature" semiconductor manufacturing processes related to power, sensors, and other less advanced technologies (but still integral to the whole AI narrative). These chip types remained in high demand last year thanks to electric vehicles and other industrial market strength, helping the company bridge what would have otherwise been a severe downturn similar to what Lam experienced.Story continuesBut making that pivot to industrial chip manufacturing equipment cuts both ways because now demand for electric vehicles and power chips is expected to be in decline through at least the first half of 2024. Applied Materials' should be expecting a downturn, but management remains upbeat and optimistic. How?Thanks to its well-diversified portfolio of tech and manufacturing machines, the company is now pivoting back to advanced logic chips (and related memory) to catch the coming wave of AI infrastructure and on-device AI applications. Top chip fabs like Taiwan Semiconductor Manufacturing are ramping up production this year to meet demand from AI system designers like Nvidia and Advanced Micro Devices, and Applied Materials is ready to fuel the growth cycle.Yes, the soft demand from its power and other analog chip fab partners is going to bite, but the point is this: Applied Materials has now bridged two industry downturns, and is eyeing a new growth supercycle -- when power and analog chips, and advanced logic and memory begin to grow in tandem with each other in the second half of 2024 and into 2025.The Applied advantageThis teased return to growth is all fine and well, but the real reason it is exciting for Applied Materials shareholders is what it could mean for the bottom line. Equipment sales have remained a high-margin business, with an operating profit margin of 35.5% last quarter, offset by lower margins in the services and digital display segment, and the company invested in new machinery tech. If the next upcycle for equipment sales is right around the corner, this bodes well for Applied Materials' profitability overall.AMAT Operating Margin (TTM) ChartAnd over the last year, Applied Materials has been replenishing its balance sheet in preparation for the next semiconductor bull market. Cash and short-term investments stood at $7.5 billion at the end of January 2024 (compared to $6.9 billion three months prior), long-term investments were $2.9 billion ($2.3 billion three months prior), and total debt remained about the same at $5.6 billion. The company is geared up and ready to go for the AI chip era.At 22 times trailing-12-month earnings per share as of this writing, Applied Materials stock trades for a higher premium than it has over the last couple of years. But deservedly so, as the business and the chip manufacturing industry overall could be entering a new growth cycle later in 2024. I'm more than happy to continue holding my investment for the long term.Should you invest $1,000 in Applied Materials right now?Before you buy stock in Applied Materials, 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 Applied Materials 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, 2024Nick Rossolillo and his clients have positions in Advanced Micro Devices, Applied Materials, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Applied Materials, Lam Research, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.1 Exceptional AI Chip Stock Investors Need to Know About in 2024 was originally published by The Motley Fool

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1 Exceptional AI Chip Stock Investors Need to Know About in 2024

https://finance.yahoo.com/news/1-exceptional-ai-chip-stock-122600066.html

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