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Applied Materials, Inc.Applied Materials Expands Patterning Solutions PortfolioTo help overcome patterning challenges for leading-edge chips, Applied Materials offers a portfolio of technologies designed to complement the latest advances in lithography. The company’s newest innovations include the Producer® XP Pioneer® CVD patterning film, the Sym3® Y Magnum™ etch system, the Centura® Sculpta® pattern-shaping system and Aselta contour technology for design-based metrology.Applied Materials' Process Innovations for the Patterning Engineer’s ToolkitOver the next few years, chipmakers will be looking to create “angstrom era” chips that will use EUV and High-NA EUV lithography to pattern their smallest features. An entire ecosystem of capabilities will be required to enable this advanced patterning – including software and design tools, innovations in deposition and etch, advanced metrology and inspection systems, and entirely new approaches such as pattern shaping.Applied is working with all leading-edge logic chipmakers on a growing number of applications for its Sculpta® pattern-shaping technologyIntroducing innovative new etch systems, CVD patterning films and metrology solutions to complement and improve chips made using EUV and High-NA EUV lithography SAN JOSE, Calif., Feb. 26, 2024 (GLOBE NEWSWIRE) -- Today at the SPIE Advanced Lithography + Patterning conference, Applied Materials, Inc. introduced a portfolio of products and solutions designed to address the patterning requirements of chips in the “angstrom era.” As chipmakers transition to process nodes at 2nm and below, they increasingly benefit from new materials engineering and metrology techniques that help overcome EUV and High-NA EUV patterning challenges, including line edge roughness, tip-to-tip spacing limitations, bridge defects and edge placement errors.Sculpta Momentum: Growing Adoption and New ApplicationsAt last year’s SPIE lithography conference, Applied introduced the Centura® Sculpta® patterning system, which allows chipmakers to reduce EUV double patterning steps by elongating patterned features, bringing the tips of the features closer together than achievable with a single EUV or High-NA EUV exposure. Applied is now working with all leading-edge logic chipmakers on a growing number of Sculpta applications. For example, in addition to reducing tip-to-tip spacing, chipmakers are using Sculpta to remove bridge defects, thereby enabling reduced patterning cost and improved chip yield.“Leading chipmakers are seeing excellent results as they deploy Sculpta systems in production and explore additional applications beyond EUV double patterning step reduction,” said Dr. Prabu Raja, President of the Semiconductor Products Group at Applied Materials. “Sculpta is an entirely new tool in the patterning engineer’s tool kit that will be used in many more applications as engineers use their imaginations to solve challenging problems in new ways.”Story continues“Pattern shaping is an innovative solution that is helping Intel accelerate its process technology roadmap,” said Ryan Russell, Corporate Vice President for Logic Technology Development at Intel. “We are deploying Sculpta systems for our angstrom process nodes, with initial results showing improved throughput, enhanced wafer yield, and reduced process complexity and cost. Pattern shaping facilitates new strategies for advanced patterning and paves the way for pushing lithographic print boundaries.”“Pattern shaping is a breakthrough technology that addresses key challenges in the EUV era,” said Jong-Chul Park, Master of Foundry Etch Technology Team at Samsung Electronics. “Samsung is an early development partner and is evaluating the Sculpta systems for our 4nm process. We are looking forward to positive results, including reduced cost and complexity and increased yield.”New Etch Technology Heals EUV Line Edge RoughnessEUV systems produce fewer of the photons needed to crisply define line and space patterns in photoresists. As a result, lines with rough edges are etched into the wafer, potentially creating open and short circuits in the chip. These yield-killing defects are becoming more prevalent as chipmakers implement angstrom era designs with narrower line and space patterns.Applied today introduced the Sym3® Y Magnum™ etch system, which combines deposition and etch technology in the same chamber. The unique system deposits material along rough edges, making EUV line patterns smoother before they are etched into the wafer, enabling an increase in yields and a decrease in line resistance to improve chip performance and power consumption. In foundry-logic, Sym3 Y Magnum has already been adopted for critical etch applications at leading chipmakers and is now being deployed for EUV patterning in angstrom era nodes. In memory, Sym3 Y Magnum is the most widely adopted etch technology for EUV patterning in DRAM.New CVD Patterning Film for Angstrom Era PatterningApplied today introduced the Producer® XP Pioneer® CVD (chemical vapor deposition)​ patterning film. The Pioneer film is deposited on the wafer prior to photoresist pattern processing and is uniquely designed to transfer desired patterns to the wafer with exceptional fidelity. Pioneer is based on a unique high-density carbon formula that is more resilient to etch chemistries used in the most advanced process nodes, permitting thinner film stacks with superior sidewall feature uniformity. Pioneer has already been adopted by leading memory manufacturers for DRAM patterning.Pioneer has been co-optimized with Applied’s Sculpta pattern-shaping technology, enabling patterning engineers to maximize pattern elongation while maintaining tight control of the original EUV pattern. Pioneer is also being co-optimized with the new Sym3 Y Magnum etch system to provide higher selectivity and better control over conventional carbon films for critical etch applications in logic and memory processing.Avoiding Placement Errors: Introducing AseltaApplied’s industry-leading eBeam metrology systems are used by the world’s leading logic and memory companies to develop and control their most critical EUV patterning applications. A major challenge is tightly defining and placing the billions of features on each layer so they properly align with their opposite features on the next layer of the chip. Small placement errors reduce chip performance and power consumption, and large errors create yield-killing defects.Applied has acquired Aselta Nanographics, a technology leader in design-based metrology using contours. Contours enable patterning engineers to gather orders of magnitudes more data about the shapes their recipes are creating in patterning films and on the wafer. This data is fed back into the lithography and process flow to create more exact on-chip features and placement.“Aselta contour technology is now being integrated with Applied’s VeritySEM® CD-SEM system and PROVision® eBeam metrology system to give chipmakers a unique end-to-end capability that addresses the full spectrum of angstrom era metrology challenges,” said Keith Wells, Group Vice President of Imaging and Process Control at Applied Materials.A Growing Patterning Portfolio and BusinessSince 2012, Applied Materials has made patterning a research and development priority, investing to deliver new products and solutions that help customers overcome their toughest patterning challenges, particularly in emerging EUV and High-NA EUV applications. The company’s patterning product portfolio today includes CVD and ALD deposition; four types of materials removal (etch, selective materials removal, pattern shaping and CMP); thermal processes; and eBeam metrology. The company has increased its served available market in patterning from around $1.5 billion in 2013 to more than $8 billion in 2023 – and grown its share of the opportunity from about 10 percent to more than 30 percent over the same timeframe.Forward-Looking StatementsThis press release contains forward-looking statements, including those regarding anticipated benefits of our new products and technologies; expected growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: failure to realize anticipated benefits of our new products and technologies; the demand for semiconductors; customers’ technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; market acceptance of existing and newly developed products; the ability to obtain and protect intellectual property rights in technologies; our ability to ensure compliance with applicable law, rules and regulations; and other risks and uncertainties described in our SEC filings, including our recent Forms 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them.About Applied MaterialsApplied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible a better future. Learn more at www.appliedmaterials.com.Contact:Ricky Gradwohl (editorial/media) 408.235.4676Michael Sullivan (financial community) 408.986.7977Photos accompanying this announcement are available at:https://www.globenewswire.com/NewsRoom/AttachmentNg/7f18da3e-ea63-4c18-b31c-49abb997cf99https://www.globenewswire.com/NewsRoom/AttachmentNg/c1db1fa0-62fd-41bb-8bb2-6b1cc415ba29

GlobeNewswire

Applied Materials Expands Patterning Solutions Portfolio for Angstrom Era Chipmaking

https://finance.yahoo.com/news/applied-materials-expands-patterning-solutions-123000754.html

28b99f09-0561-351d-a495-026012c5b7c9

AMAT

Applied Materials, Inc.SANTA CLARA, Calif., March 11, 2024 (GLOBE NEWSWIRE) -- Applied Materials, Inc. today announced that its Board of Directors has approved a 25-percent increase in the quarterly cash dividend from $0.32 to $0.40 per share. The dividend is payable on June 13, 2024 to shareholders of record as of May 23, 2024.“Our latest dividend increase reflects our confidence in Applied Materials’ ability to generate profitable growth and strong free cash flow,” said Brice Hill, Senior Vice President and CFO. “We believe Applied can continue to outperform the semiconductor equipment market in the years ahead, and we expect our services business to deliver double-digit growth and more than enough operating profit to support a growing dividend.”The quarterly cash dividend is a key component of Applied’s capital allocation strategy. Today’s announcement marks the seventh consecutive year that Applied has raised its dividend. In March 2023, Applied announced a 23.1-percent increase in the quarterly cash dividend from $0.26 to $0.32 per share and indicated its intention to increase the dividend at an accelerated rate over the next several years, which would double the previous dividend per share. With the increase announced today, Applied has grown its quarterly dividend paid per share at a 15-percent compound annual growth rate over the past 10 years.Forward-Looking StatementsThis press release contains forward-looking statements, including those regarding our ability to generate growth and free cash flow and to increase the dividend at an accelerated rate, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products, our ability to meet customer demand, and our suppliers’ ability to meet our demand requirements; global economic, political and industry conditions, including rising inflation and interest rates; the implementation and interpretation of new export regulations and license requirements, and their impact on our ability to export products and provide services to customers and on our results of operations; global trade issues and changes in trade and export license policies; our ability to obtain licenses or authorizations on a timely basis, if at all; consumer demand for electronic products; the demand for semiconductors; customers’ technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; the concentrated nature of our customer base; our ability to expand our current markets, increase market share and develop new markets; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; our ability to achieve the objectives of operational and strategic initiatives, align our resources and cost structure with business conditions, and attract, motivate and retain key employees; the effects of geopolitical turmoil or conflicts, and of regional or global health epidemics; acquisitions, investments and divestitures; changes in income tax laws; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; our ability to ensure compliance with applicable law, rules and regulations and other risks and uncertainties described in our SEC filings, including our recent Forms 10-Q and 8-K. While we expect to continue to pay dividends in the future, the declaration of any future dividends or dividends at any particular rate is subject to the discretion of the Board of Directors and will depend on our financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination by the Board of Directors that dividends are in the best interests of our stockholders. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them.Story continuesAbout Applied MaterialsApplied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible a better future. Learn more at www.appliedmaterials.com.Contact:Ricky Gradwohl (editorial/media) 408.235.4676Michael Sullivan (financial community) 408.986.7977

GlobeNewswire

Applied Materials Increases Cash Dividend by 25 Percent

https://finance.yahoo.com/news/applied-materials-increases-cash-dividend-113000225.html

5c164b15-e4bb-31c9-b91b-68fd99112849

AMAT

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about Applied Materials (AMAT) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Applied Materials currently has an average brokerage recommendation (ABR) of 1.83, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 29 brokerage firms. An ABR of 1.83 approximates between Strong Buy and Buy.Of the 29 recommendations that derive the current ABR, 17 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 58.6% and 6.9% of all recommendations.Check price target & stock forecast for Applied Materials here>>>The ABR suggests buying Applied Materials, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.Story continuesZacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.Is AMAT Worth Investing In?In terms of earnings estimate revisions for Applied Materials, the Zacks Consensus Estimate for the current year has increased 4.5% over the past month to $7.94.Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Applied Materials. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Therefore, the Buy-equivalent ABR for Applied Materials may serve as a useful guide for investors.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 reportApplied Materials, Inc. (AMAT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Wall Street Bulls Look Optimistic About Applied Materials (AMAT): Should You Buy?

https://finance.yahoo.com/news/wall-street-bulls-look-optimistic-133010474.html

acb76ff3-6f8b-3964-b900-0a5121cab515

AMCR

Preparing for retirement is challenging, and a reliable cash flow stream is one of the most important things investors look for. That’s why dividend stocks are always in demand, as their assured income stream makes them some of the best investment instruments in the market. Dividend aristocrats make things even better by providing investors with increasing annual dividends.The companies in this category have increased their annual dividend payments for at least 25 consecutive years. These are excellent options for investors looking for a steady cash flow, equity exposure and potential for capital growth. So, in this article, we will look at three dividend aristocrats offering high yields.Realty Income Corporation (O)realty income logo highlighted by a magnifying glass on a web browserSource: ShutterstockRealty Income Corporation (NYSE:O) is your stock if you like monthly dividends. O is a real estate investment trust that manages and acquires single-unit freestanding commercial properties. O leases its portfolio of properties to over 1,300 clients across 50 states in the United States, UK, Ireland, Spain, Italy and Puerto Rico. One of O’s unique selling points is its focus on a net lease portfolio of service-based tenants that covers up to 85 industries, making it a defensive position during economic downturns.InvestorPlace - Stock Market News, Stock Advice & Trading TipsRealty Income is a unique dividend company as it pays every month. It recently announced its 644th monthly dividend payment of $0.2565 per share, which translates to a $3.078 annualized dividend. This represents a 5.88% annual yield based on the current price.According to O’s latest financials, net income available to common stockholders reached $233.5 million, growing 6.33% YoY from $219.60 million. Normalized funds from operations, or FFO, grew by 22.98%, from $600.90 million to $739.0 million. Same-store rental revenue grew by 2.2% while maintaining a rent recapture rate of 106.9% on re-leased properties. The company also boasts a strong occupancy rate that never fell below 96%.Story continuesSo, if you want to bulk up your portfolio income with a dividend aristocrat, O should be on your list of high-quality choices.3M (MMM)3M logo on top of a corporate building. MMM stockSource: JPstock / Shutterstock.com3M Company (NYSE:MMM) is famous for many things. One of them is for being a reliable dividend aristocrat with a 66-year streak of increasing dividend payouts.MMM is the largest maker and the founder of post-its and adhesive tapes. Its operations span various industries like health care, automotive and electronics. Its wide range of products makes it a very diversified company, perfect for investors looking to add a piece of exposure to different industries. MMM boasts one of the highest yields among the dividend aristocrats, with a quarterly dividend of $1.51 for Q1’24, translating to $6.04 full-year, or an annual dividend yield of 6.62% based on the current price.As for 3M’s financials, the company experienced a significant price decline last quarter as investors noticed sales slightly falling by 0.8% YoY. Full-year results also saw a significant $12.63 loss per share, mainly related to the CAE and PWS settlements—which are almost in the rear-view mirror.Regarding 3M’s finances, 3M’s fourth-quarter earnings beat analyst estimates by 4.76%. In addition, the company is confident that it can deliver somewhere between $9.35 and $9.75 in EPS for 2024. This should please dividend growth investors as the outlook comfortably exceeds its projected dividend payout for FY’24.Bottom line: if you’re on the fence and want an above-average income-producing stock at a bargain price, now might be the time to buy 3M.Amcor PLC (AMCR)green beer bottles in a factory line, ready to be sealed. represents packaging companieSource: shutterstock.com/zedspiderHave you ever wondered how product packagings are made? If so, there’s no need to watch “How it’s made.” Let me introduce Amcor PLC (NYSE:AMCR). Amcor is a packaging manufacturer that operates through its Flexibles and Rigid packaging segments. The company recently announced a thermoforming production expansion to improve capacity and accommodate growth in North America.Now, let’s get some things out of the way. No company is immune to a slowdown. So, with that in mind, let’s look at the bad news first. According to the latest financials, in Q2’24, AMCR’s net sales dropped 10.74% from $3.64 billion to $3.25 billion. According to Ron Delia, this was caused by softening demands in the last quarter. However, the company managed to exceed EPS analyst estimates by 6.67%.Regarding FY’24 targets, the company is confident despite challenging market conditions. Amcor is already seeing improving volumes in January. Additionally, Amcor’s CEO pointed to lower interest expenses, potential improvements in their Russian business and proactive cost-reduction initiatives as catalysts for this fiscal year.Dividend growth investors will note that AMCR pays a $0.50 annual dividend for FY’24, representing a ~5.53% annual yield based on current prices.On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.More From InvestorPlaceChatGPT IPO Could Shock the World, Make This Move Before the AnnouncementMusk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.It doesn’t matter if you have $500 or $5 million. Do this now.The post The 3-Highest Yielding Dividend Aristocrats for February 2024 appeared first on InvestorPlace.

InvestorPlace

The 3-Highest Yielding Dividend Aristocrats for February 2024

https://finance.yahoo.com/news/3-highest-yielding-dividend-aristocrats-193303877.html

d96d5a77-d926-3104-b886-4a36dd2f84ac

AMCR

Understanding Amcor PLC's Dividend Performance and ProspectsAmcor PLC (NYSE:AMCR) recently announced a dividend of $0.13 per share, payable on 2024-03-19, with the ex-dividend date set for 2024-02-27. 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 Amcor PLC's dividend performance and assess its sustainability.What Does Amcor PLC Do?Warning! GuruFocus has detected 8 Warning Signs with AMCR.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?Amcor is a global manufacturer of flexible and rigid plastic packaging and provides packaging solutions to the food, beverage, pharmaceuticals, medical, household, personal care, and industrials sectors. Operations span more than 40 countries and over 200 locations. Around half of group sales are derived from North America, one quarter from Europe, and the remainder from emerging markets. Amcor operates two distinct businesses: flexibles and rigids. Flexibles accounts for about 80% of earnings and produces plastic, aluminium, and fibre-based packaging. Rigids accounts for about 20% of earnings and consists primarily of hot-fill and cold-fill polyethylene terephthalate bottling solutions in the North American and Latin American markets.Amcor PLC's Dividend AnalysisA Glimpse at Amcor PLC's Dividend HistoryAmcor PLC has maintained a consistent dividend payment record since 2019. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.Amcor PLC's Dividend AnalysisBreaking Down Amcor PLC's Dividend Yield and GrowthAs of today, Amcor PLC currently has a 12-month trailing dividend yield of 5.31% and a 12-month forward dividend yield of 5.39%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Amcor PLC's annual dividend growth rate was 1.60%. Based on Amcor PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Amcor PLC stock as of today is approximately 5.31%.Story continuesThe Sustainability Question: Payout Ratio and ProfitabilityTo assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Amcor PLC's dividend payout ratio is 0.87, which may suggest that the company's dividend could be at risk.Amcor PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Amcor PLC's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.Growth Metrics: The Future OutlookTo ensure the sustainability of dividends, a company must have robust growth metrics. Amcor PLC's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Amcor PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Amcor PLC's revenue has increased by approximately 8.60% per year on average, a rate that outperforms approximately 58.36% of global competitors.The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Amcor PLC's earnings increased by approximately 18.30% per year on average, a rate that outperforms approximately 64.65% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 9.70%, which outperforms approximately 57.34% of global competitors.Concluding Thoughts on Amcor PLC's Dividend OutlookIn conclusion, Amcor PLC's consistent dividend payments, moderate dividend growth rate, and a reasonable payout ratio paired with strong profitability and growth metrics, paint a picture of a company that is attentive to shareholder returns while also investing in its future. However, investors should remain vigilant and monitor the payout ratio and profitability closely, as these are key indicators of a dividend's sustainability. With these factors in mind, value investors may find Amcor PLC an interesting prospect for their portfolios. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.This article first appeared on GuruFocus.

GuruFocus.com

Amcor PLC's Dividend Analysis

https://finance.yahoo.com/news/amcor-plcs-dividend-analysis-100327238.html

e547e8a0-a101-3533-a4f2-4446f514b2b1

AMCR

Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine Amcor plc (NYSE:AMCR), by way of a worked example.ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Put another way, it reveals the company's success at turning shareholder investments into profits. View our latest analysis for Amcor How Is ROE Calculated?Return on equity can be calculated by using the formula:Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' EquitySo, based on the above formula, the ROE for Amcor is:16% = US$653m ÷ US$4.0b (Based on the trailing twelve months to December 2023).The 'return' is the yearly profit. That means that for every $1 worth of shareholders' equity, the company generated $0.16 in profit.Does Amcor Have A Good Return On Equity?Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see Amcor has a similar ROE to the average in the Packaging industry classification (17%).roeThat isn't amazing, but it is respectable. Even if the ROE is respectable when compared to the industry, its worth checking if the firm's ROE is being aided by high debt levels. If so, this increases its exposure to financial risk. You can see the 3 risks we have identified for Amcor by visiting our risks dashboard for free on our platform here.How Does Debt Impact Return On Equity?Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.Story continuesCombining Amcor's Debt And Its 16% Return On EquityAmcor does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.78. There's no doubt its ROE is decent, but the very high debt the company carries is not too exciting to see. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.SummaryReturn on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In our books, the highest quality companies have high return on equity, despite low debt. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREE visualization of analyst forecasts for the company.Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Is Amcor plc's (NYSE:AMCR) 16% ROE Better Than Average?

https://finance.yahoo.com/news/amcor-plcs-nyse-amcr-16-160503888.html

7b830fe7-1bf4-3f71-b9d3-5744aef77658

AMCR

It has been about a month since the last earnings report for Amcor (AMCR). Shares have lost about 1.9% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Amcor 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 catalysts.Amcor Q2 Earnings Beat Estimates, Revenues Dip Y/YAmcor reported second-quarter fiscal 2023 adjusted earnings per share (EPS) of 16 cents, which surpassed the Zacks Consensus Estimate of 15 cents. The bottom line fell 15% from the year-ago quarter, mainly due to the downtrend in volumes reflecting customer destocking.Including special items, the company reported net EPS of 9 cents compared with 31 cents in the year-ago quarter.Total revenues fell 11% year over year to $3.25 billion in the reported quarter. The price/mix had benefits of around 1% on sales. The volume was down 9% from the year-ago quarter. A 2% favorable impact of movements in foreign exchange rates was offset by a 2% unfavorable impact of items affecting comparability and a 1% impact of pass-through of lower raw material costs. The top line missed the Zacks Consensus Estimate of $3.29 billion.Cost and MarginsThe cost of sales was down 12% year over year to $2.63 billion. Gross profit fell 6% year over year to $621 million. The gross margin was 19.1% compared with the year-ago quarter’s 18.2%.SG&A expenses were $299 million, reflecting an increase of 0.3% year over year. Adjusted operating income was $352 million in the quarter, down 12% from $399 million in the year-ago quarter. The adjusted operating margin was 10.8% compared with 11% in the year-ago quarter. Adjusted EBITDA in the quarter was $454 million compared with $500 million in the prior-year quarter.Segment PerformancesFlexibles: Net sales decreased 12% year over year to $2.48 billion. Volume was down 10% year over year due to lower consumer demand and customer destocking. Our model projected net sales of $2,535  million based on an expectation of a year-over-year volume decline of 8% and a favorable price/mix of 1%.Story continuesThe segment’s adjusted operating income fell 12% year over year to $312 million on lower volumes, partly offset by strong operating cost performance. We expected an adjusted operating income of $319 million.Rigid Packaging: The segment reported net sales of $770 million in the reported quarter, down 7% from the year-ago quarter. Volume was down 12% year over year, which was offset by a favorable price/mix impact of 2%. We had projected net sales at $784.6 million, a year-over-year volume decline of 7.7% and a price/mix benefit of 1%.Adjusted operating income was $51 million, down 10.5% year over year due to lower volumes, partly offset by the price/mix benefits and a favorable cost performance. Our prediction for the segment’s operating income was $59.5 million.Financial UpdatesAs of Dec 31, 2023, Amcor had $430 million of cash and cash equivalents compared with $689 million as of Jun 30, 2023. The company generated $228 million of cash in operating activities in the first half of fiscal 2024 compared with $145 million in the year-ago comparable period.As of Dec 31, 2023, Amcor’s net debt totaled $6.6 billion, up from $6.1 billion as of Jun 30, 2023.Amcor returned $390 million to shareholders in the first half of fiscal 2024 through dividends and share repurchases. It has targeted total share repurchases of $70 million for fiscal 2024. Amcor’s board of directors raised its quarterly cash dividend of 12.5 cents per share from the previous payout of 12 cents per share.FY24 GuidanceThe company reaffirms its adjusted EPS at 67-71 cents for fiscal 2024. AMCR projects an adjusted free cash flow of $850-$950 million for fiscal 2024.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 -9.91% due to these changes.VGM ScoresAt this time, Amcor has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, 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 B. 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, Amcor has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerAmcor belongs to the Zacks Containers - Paper and Packaging industry. Another stock from the same industry, Packaging Corp. (PKG), has gained 10.9% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.Packaging Corp. reported revenues of $1.94 billion in the last reported quarter, representing a year-over-year change of -2.1%. EPS of $2.13 for the same period compares with $2.35 a year ago.For the current quarter, Packaging Corp. is expected to post earnings of $1.63 per share, indicating a change of -25.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.7% over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Packaging Corp. Also, the stock has a VGM Score of A.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAmcor PLC (AMCR) : Free Stock Analysis ReportPackaging Corporation of America (PKG) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Amcor (AMCR) Down 1.9% Since Last Earnings Report: Can It Rebound?

https://finance.yahoo.com/news/amcor-amcr-down-1-9-163102598.html

a0a74541-b1fa-3bfc-9043-7aa8cdcedb06

AMD

For Immediate ReleaseChicago, IL – February 26, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Toyota Motor Corp. TM, Advanced Micro Devices, Inc. AMD, Qualcomm Inc. QCOM, Synopsys, Inc. SNPS and CME Group Inc. CME.Here are highlights from Friday’s Analyst Blog:Top Research Reports for Toyota, AMD and QualcommThe Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Toyota Motor Corp., Advanced Micro Devices, Inc. and Qualcomm Inc.. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.You can see all of today's research reports here >>>Toyota Motor's shares have outperformed the Zacks Automotive - Foreign industry over the past six months (+44.0% vs. +26.6%). The company's robust lineup of trucks and sport utility vehicles are set to fuel Toyota's sales volumes. Its electric vehicle (EV) push is a major tailwind.The Japanese auto giant aims to generate 40% of its global sales from EVs by 2025 and 70% by 2030. It aims to expand global sales of BEVs to 1.5 million units in 2026. Upbeat projections for profit and revenues for fiscal 2024 spark optimism.However, labor cost inflation is expected to continue to weigh on the company's margins. High capex and R&D expenses for the development of electric and high-tech vehicles are likely to dent its near-term margins and cash flows. TM expects sales in Japan to decrease amid the suspension of shipments of Daihatsu. The stock warrants a cautious stance for now.(You can read the full research report on Toyota Motor here >>>)Shares of AMD have outperformed the Zacks Electronics - Semiconductors industry over the past six months (+78.6% vs. +61.0%). The company is benefiting from portfolio strength and an expanding partner base. In cloud, server CPU revenues increased year over year and sequentially as North American hyperscalers expanded fourth Gen EPYC Processor deployments to power their internal workloads and public instances.Amazon, Alibaba, Google, Microsoft and Oracle brought more than 55 AMD-powered AI, HPC and general-purpose cloud instances into preview or general availability in the reported quarter. Exiting 2023, AMD had more than 800 EPYC CPU-based public cloud instances available.AMD is benefiting from the strong adoption of EPYC CPUs for inferencing workloads for smaller models like Llama 7B, as well as the power head nodes in large training and inference clusters. AMD expects gross margin to expand in 2024. However, weakness in the Gaming and the Embedded businesses is a headwind.(You can read the full research report on AMD here >>>)Qualcomm's shares have outperformed the Zacks Wireless Equipment industry over the past six months (+44.5% vs. +28.1%). The company reported relatively healthy first-quarter fiscal 2024 results, with the bottom and top lines beating the respective Zacks Consensus Estimate.Qualcomm is likely to benefit from the multi-year Apple deal for 5G modems for iPhones and the launch of Snapdragon 7 Gen 3 chipsets with advanced AI features for mid-range smartphones. A solid momentum in IoT, healthy 5G traction and a diversified revenue stream are tailwinds. It is focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor firm for the intelligent edge.However, soft market conditions in China have resulted in lower-than-expected demand and elevated inventory levels. Weakness in the smartphone industry and cautious client approach are weighing on margins. Rising geopolitical conflicts and high debt burden are other headwinds.(You can read the full research report on QUALCOMM here >>>)Other noteworthy reports we are featuring today include Synopsys, Inc. and CME Group Inc..Story continuesWhy Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                        https://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportQUALCOMM Incorporated (QCOM) : Free Stock Analysis ReportAdvanced Micro Devices, Inc. (AMD) : Free Stock Analysis ReportCME Group Inc. (CME) : Free Stock Analysis ReportToyota Motor Corporation (TM) : Free Stock Analysis ReportSynopsys, Inc. (SNPS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

The Zacks Analyst Blog Highlights Toyota Motor, AMD, Qualcomm, Synopsys and CME Group

https://finance.yahoo.com/news/zacks-analyst-blog-highlights-toyota-144300972.html

23347718-9c15-36cb-bbdd-f1dfa511834d

AMD

Artificial-intelligence spending has caused Nvidia's share price to surge as investors model for ever-growing demand for its semiconductor chips.Nvidia's position as the leading provider of chips specially designed to train and run AI applications has resulted in eye-popping sales and profit growth. As a result, Nvidia's stock has risen by 243% in the past year and 60% year-to-date.The run higher in Nvidia's stock has surprised many, leaving them wondering what could happen next. However, it didn't shock everyone.In March 2023 Real Money Pro's Bruce Kamich forecast that Nvidia "investors should look for additional gains." And on Feb. 7 he also laid out a pathway for the shares to eclipse $750, before Nvidia shares rocketed 16% on Feb. 22 on the company's report of blockbuster earnings.Now that Nvidia is flirting with $800 a share, Kamich has updated his analysis, including a new price target.Thanks to growing AI demand, Nvidia CEO Jensen Huang has seen the company's shares surge in the past year.Wu Jun/VCG via Getty ImagesNvidia soars on surging AI demandArtificial intelligence isn't a new concept. The mathematician and computer scientist Alan Turing investigated designing AI computers in the 1950s, and the first AI program was created by Rand Corp. in 1956. Over the years, many science-fiction books and movies have examined the possibility that machines could someday think for themselves.Although the notion of AI isn't new, AI has only recently gone mainstream. The release of OpenAI's ChatGPT, a large-language AI model, in December 2022 unlocked the promise of AI, demonstrating how it could be used to search, parse and create content quickly and simply.Related: Nvidia crushes earnings, stock soars. Time to buy AMD?Following ChatGPT's success (it was the fastest application to reach 1 million users), we've witnessed a tidal wave of interest in AI research and development.Financial services companies like JP Morgan are using it to hedge risks, health-care companies are evaluating its use to design better medicines, and retailers are exploring whether it can reduce theft. The military is even evaluating its potential on the battlefield.Story continuesSeemingly, companies in every industry are knee-deep in training AI models, a complex, time-consuming process that requires significantly more computing power than existing infrastructure can handle efficiently.As a result cloud service providers like the hyperscalers Amazon, Microsoft and Google parent Alphabet are plowing big money into servers packed with more powerful parts, including Nvidia's graphics-processing units or GPUs.Nvidia's GPU systems aren't the small, lightweight chips most people imagine. Instead, they're highly sophisticated systems that weigh over 70 pounds, include thousands of technology parts, and cost tens of thousands of dollars apiece.The combination of demand and a high price tag has been a boon to Nvidia's top and bottom lines.In the fourth quarter, Nvidia's revenue increased by a staggering 265% to $22.1 billion, its third consecutive quarter of triple-digit growth. Leveraging that sales growth against fixed costs has meant profit grew an even more impressive 486% to $5.16 per share.Nvidia faces some challengesNvidia's CEO, Jensen Huang, expects the company to continue to benefit from AI demand growth.During the company's recent earnings conference call, Huang said he expected the shift to accelerated computing and development of generative AI models to cause a major new upgrade cycle for network infrastructure. That effort would replace central processing units, or CPUs, with GPUs better able to process AI workloads.More AI Stocks:Analyst reveals new Broadcom stock price target tied to AIAI stock soars on new guidance (it's not Nvidia!)Nvidia CEO Huang weighs in on huge AI opportunity"We believe these two trends [accelerated computing and generative AI] will drive a doubling of the world's data-center infrastructure installed base in the next five years," said Huang.Huang says this transformation will create a market valued in the "hundreds of billions of dollars" yearly.Those tailwinds suggest Nvidia's good times are likely to continue, but the company isn't without headwinds.Specifically, the growing risk that foreign governments will use Western technology to develop new AI applications that could one day be used against America has led to stringent restrictions on Nvidia selling its most advanced chips in China.The restrictions, which went in place last fall, have weighed down Nvidia's results because China has historically represented 20% of its data-center sales. The company is developing a less powerful chip that meets the government's performance limits, but that chip won't be readily available until the second quarter.Nvidia also faces a challenge in the form of new competition from rival Advanced Micro Devices. AMD CEO Lisa Su is selling its first GPU specially designed for AI, the MI300X, this year, and she says demand for it is solid."Customer response to MI300 has been overwhelmingly positive. And we are aggressively ramping production to support the dozens of cloud, enterprise, and supercomputing customers deploying Instinct accelerators," said Su.Previously, Su aimed for $2 billion in data center GPU revenue this year. Now, she says sales will exceed $3.5 billion this year.To fend off AMD  (AMD) , Huang's team at Nvidia is developing new AI chips. Its H200 is already shipping, with reported performance doubling from the H100. It's also working on a new Blackwell GPU architecture, including the B100 chip, which could be released later this year.Nvidia's stock chart results in a new price targetThe market may be big enough for Nvidia and AMD to succeed. Su predicts the AI-GPU market will expand by an average of 73% annually to $400 billion through 2027.However, investors are right to wonder whether Nvidia shares are priced to perfection following their recent rally.When Kamich calculated a price target of $757 in early February, he expressed concern about the shares' meteoric rise. Nvidia has overcome skepticism, surging above Kamich's target, causing him to update his analysis.A technical analyst, Kamich, has professionally evaluated price and volume trends for insight for 50 years. His new analysis of Nvidia suggests some ongoing concern that Nvidia stock is overextended. However, his updated stock-price target suggests the shares still might have room to climb."Prices are extended above both the rising 50-day moving average line and the rising 200-day line," said Kamich. "The slow stochastic indicator [an overbought/oversold indicator] is turning lower from a very overbought reading."The risk that Nvidia may give back some recent gains exists, but using a daily point-and-figure chart, Kamich calculated an upside price target in the "$1,134 area."That target is intriguing, but Kamich notes that the weekly P&F chart target of $724 has already been achieved. Also, investors should remember that P&F targets aren't guaranteed or suggest the time it may take to achieve a target.Overall, Nvidia is riding a big secular trend toward AI development, and Huang says first-quarter revenue will more than triple to $24 billion from $7.2 billion in Q1 2023.Nevertheless, investors may want to closely monitor how Nvidia trades. Given its rapid runup, it certainly wouldn't be surprising if the shares took a breather at some point.Related: Veteran fund manager picks favorite stocks for 2024

TheStreet

Analyst who forecast Nvidia stock could exceed $750 revamps target

https://finance.yahoo.com/news/analyst-forecast-nvidia-stock-could-010300963.html

a2447904-252c-3267-882f-4be7156f58f6

AMD

If you're wondering why the stock market is back at all-time highs, there's one simple explanation: The "Magnificent Seven."This is the group of the seven most valuable tech stocks that include Microsoft, Apple, Nvidia (NASDAQ: NVDA), Alphabet, Amazon, Meta Platforms, and Tesla.These stocks delivered monster returns last year, and many of them are off to strong starts in 2024, capitalizing on the AI boom and the recovery coming out of the 2022 bear market. Today, Microsoft is the most valuable Magnificent Seven stock and the most valuable company in the world. However, I think we could see a passing of the torch this year. The company that is set to take Microsoft's place? AI superstar Nvidia, which is already dominating the AI chip market and the stock market narrative.Here are a few of the reasons Nvidia is a good bet to be the most valuable company in the world by the end of the year.Image source: Getty Images.1. Nvidia's competition still isn't closeIt's no secret that Nvidia has ridden the generative AI boom to record returns. Since the start of 2023, the stock is up by more than 500%, topping a $1 trillion market cap before passing $2 trillion earlier this year.Its revenue has tripled and its profit is growing even faster, largely because Nvidia sells the vital components to build out the AI models and applications that almost every major corporation sees is betting on. That tech infrastructure relies on Nvidia's graphics processing units (GPUs), and there's been extraordinary demand for them as analysts estimate that the company owns a 98% share of the data center GPU market.It's true that competition is on the way. AMD launched its MI300 generative AI accelerator in December, but the company's first-quarter guidance indicates that its data center revenue will still be a fraction of Nvidia's.Competition entering the market doesn't mean it will make a significant dent in Nvidia's lead as Nvidia has technological and structural advantages over its aspiring rivals. Some industry insiders have predicted as much as well.Story continuesFor example, Matt Wood, a vice president of artificial intelligence products at AmazonWeb Services told The Information, "There's no meaningful competition" for Nvidia, and he was skeptical that AMD or anyone else could pose a significant challenge to the AI chip leader.If Nvidia can successfully defend its market share against AMD, Intel, and others, the stock should move even higher.2. Supply will remain constrainedSkeptics believe that Nvidia and other AI stocks are in a bubble, and its bumper profit is temporarily inflated by supply constraints for AI chips. Once that supply crunch is solved, they argue, prices will come down and Nvidia's profit will fall.However, there's no sign that supply imbalance will resolve itself anytime soon.Nvidia CFO Colette Kress said on the recent earnings call, "We expect our next-generation products to be supply constrained as demand far exceeds supply," and CEO Jensen Huang elaborated, noting that supply is improving, but added, "We expect the demand will continue to be stronger than our supply."Huang made another point that's key to understanding the supply demand dynamic in AI chips, saying, "With all of the new products, demand is greater than supply. And that's just kind of the nature of new products."While competition may fill in supply for less powerful components, demand for cutting-edge technology is likely to continue to be difficult to meet, and that's where Nvidia excels. It should remain the leader in the product category, GPUs, which it invented 25 years ago and has advanced ever since.3. Nvidia will penetrate new marketsWhile Nvidia's near-term success will be determined by its data center business, investors shouldn't forget that the company has the ability to move into new markets such as PC chips, which it announced in January, and it's well positioned to capitalize on evolving markets such as autonomous vehicles and the metaverse.Nvidia's technology has a long history of finding new applications, including digital gaming, cryptocurrency mining, and now AI, but it's a mistake to think that it won't penetrate and dominate new markets as it's done with AI.The PC chip market presents an attractive opportunity for Nvidia, with tens of billions of dollars of annual revenue available, and Nvidia could turn the tables on AMD and Intel there, taking market share from them in PCs rather than ceding it in AI.4. Wall Street continues to underestimate Nvidia stockNvidia has soared past Wall Street's expectations in each of its past four quarters, showing that analysts continue to underestimate the company's growth and demand for its AI components.Currently, the average analyst expects Nvidia to generate earnings per share of $24.50, but that number is likely to go up, assuming the company's current momentum continues.At that valuation, Nvidia is trading at a forward price-to-earnings (P/E) ratio of less than 40, making it not much more expensive than Apple or Microsoft, the two companies it's chasing to gain the title of the top Magnificent Seven stock. Microsoft trades at a P/E ratio of 35, based on estimates for its fiscal year that ends in June, and Apple trades at a forward P/E of 26.At a market cap of $2.32 trillion, Nvidia's stock price would have to increase 31% to eclipse Microsoft's current level of $3.04 trillion. That kind of gain looks to be within reach for Nvidia, given its dominance of AI chips and the ongoing supply crunch that should support its wide profit margin.It's no accident that Nvidia stock has skyrocketed in the AI boom. It holds the key to unlocking the power of generative AI, and that seems unlikely to change. As demand grows for AI and the components that make it work, Nvidia should go even higher.Should you invest $1,000 in Nvidia right now?Before you buy stock in Nvidia, 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 Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of March 11, 2024Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jeremy Bowman has positions in Amazon and Meta Platforms. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long January 2026 $395 calls on Microsoft, short January 2026 $405 calls on Microsoft, and short May 2024 $47 calls on Intel. The Motley Fool has a disclosure policy.Prediction: This Will Be the Most Valuable "Magnificent Seven" Stock by the End of 2024 was originally published by The Motley Fool

Motley Fool

Prediction: This Will Be the Most Valuable "Magnificent Seven" Stock by the End of 2024

https://finance.yahoo.com/news/prediction-most-valuable-magnificent-seven-171500467.html

b0df134f-f247-3e9f-8fc6-eab6878d5bd1

AMD

One of the byproducts of the accelerating adoption of artificial intelligence (AI) has been the investor practice -- for better or for worse -- of viewing AI stocks collectively. In many instances, developments concerning one company in the space can have a ripple effect, bringing a broad cross-section of stocks in the space up or down with them. That appears to be the case Monday morning, as two developments seem to be having on outsize impact on AI companies.With that as a backdrop, foundry Taiwan Semiconductor Manufacturing (NYSE: TSM) tumbled 4.1%, social media company Meta Platforms (NASDAQ: META) slumped 4%, chipmaker Advanced Micro Devices (NASDAQ: AMD) dropped 3.8%, computer memory specialist Micron Technology (NASDAQ: MU) declined 3.1%, and semiconductor specialist Broadcom (NASDAQ: AVGO) fell 1.9%, as of 1:32 p.m. ET on Monday.A check of all the usual suspects -- regulatory filings, financial reports, and changes to analysts' price targets -- turned up one piece of negative company-specific news -- while surprisingly, there were a number of positive catalysts (more on that in a bit). Furthermore, troubling news about a high-profile company in the space seemed to put AI investors in a dour mood.Image source: Getty Images.A one-two punchBroadcom released the results of its fiscal 2024 first quarter (ended Feb. 4) on Friday, and investors weren't particularly impressed. The semiconductor specialist generated revenue of $11.96 billion, an increase of 34% year over year, resulting in adjusted earnings per share (EPS) of $10.99, an increase of 6%.While both metrics exceeded Wall Street's expectations, management's forecast seemed to catch investors off guard. Broadcom reiterated its outlook for the 2024 fiscal year, guiding for revenue of $50 billion. Investors were hoping the company would boost its guidance after exceeding expectations for the quarter. The news weighed on many AI and chip stocks on Friday.Investors seemed to be waiting for the other shoe to drop, which happened over the weekend. Reports emerged that a proposed class action lawsuit was filed late on Friday, accusing Nvidia of copyright infringement. Three authors sued the chipmaker, alleging that Nvidia had used their books -- along with hundreds of thousands of others -- to train its NeMo AI platform, and had not requested permission. As one of the undisputed beneficiaries of the adoption of AI, this development will be carefully watched by investors.Story continuesThis is merely the latest in a growing number of lawsuits filed by writers claiming that copyrighted works have been used to train generative AI systems without their knowledge or consent. Late last year, a group of noteworthy authors -- including George R.R. Martin, Michael Connelly, and Jonathan Franzen -- filed a similar suit against Microsoft and OpenAI, charging that ChatGPT was trained on their copyrighted works. Meta Platforms is in the midst of a similar lawsuit regarding its LLaMA AI model.While these lawsuits are currently having a chilling effect on the development of generative AI, it's too early to tell how these cases will ultimately be decided.There's good newsWhile it's understandable that investors might be concerned about these developments, not all the news is bad. In fact, there were some positive bits of company-specific news, and investors appear to be missing the forest for the trees.Here are a few examples:On Friday, Wells Fargo analysts maintained an overweight (buy) rating on Micron stock while raising their price target to $125, suggesting potential upside of 28% compared to Friday's close. The analysts believe the company is at an inflection point, which will become evident in the next two quarters.AMD also got a price target increase on Friday, courtesy of Melius Research. The analysts maintained a buy rating on AMD stock while raising their price target to $265, suggesting potential upside of 28% compared to Friday's close. They cited AMD's recently released MI300X AI chip as having good prospects in data centers.Broadcom got a pair of price target increases Monday morning. Baird maintained an outperform (buy) rating and raised its price target to $1,500, or upside of 19% compared to Friday's close. Citi analysts also maintained a buy rating on the stock and hiked its price target to $1,560, or 19% upside potential. Both analysts cited the secular tailwinds of AI as a catalyst fueling future growth.These announcements suggest that investors should take care in painting all AI stocks with the same brush. While there will no doubt be both positive and negative developments that will impact the entire industry, each of these companies will need to execute on the opportunity and secular tailwinds represented by AI.Meta Platforms and Taiwan Semiconductor are the least expensive among the group, selling for 32 times and 27 times earnings, respectively. Furthermore, when measured in terms of the price/earnings-to-growth (PEG) ratio -- which factors in strong growth -- both stocks clock in at less than 1 -- the standard for an undervalued stock.Each of these stocks represents an intriguing opportunity, particularly in light of the opportunity represented by AI, but investors should size their positions based on their risk tolerance and the degree of volatility they're willing to endure.Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?Before you buy stock in Taiwan Semiconductor Manufacturing, 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 Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of March 11, 2024Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Danny Vena has positions in Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.Why Meta Platforms, Taiwan Semiconductor, Advanced Micro Devices, and Other Artificial Intelligence (AI) Stocks Tumbled on Monday was originally published by The Motley Fool

Motley Fool

Why Meta Platforms, Taiwan Semiconductor, Advanced Micro Devices, and Other Artificial Intelligence (AI) Stocks Tumbled on Monday

https://finance.yahoo.com/news/why-meta-platforms-taiwan-semiconductor-185313267.html

e53b59a2-3d96-3117-b5ec-4a073f95f5fc

AME

Analog Devices Inc. ADI has reported first-quarter fiscal 2024 adjusted earnings of $1.73 per share, which surpassed the Zacks Consensus Estimate by 1.2%. The bottom line declined 37% from the year-ago quarter.Revenues of $2.51 billion beat the Zacks Consensus Estimate of $2.50 billion. The top line fell 23% from the year-ago quarter.Softness in the communications, consumer and industrial markets was a major negative.Nevertheless, the company witnessed strong momentum across the automotive markets in the reported quarter.Analog Devices, Inc. Price, Consensus and EPS Surprise Analog Devices, Inc. Price, Consensus and EPS SurpriseAnalog Devices, Inc. price-consensus-eps-surprise-chart | Analog Devices, Inc. QuoteRevenues by End MarketsIndustrial: The market generated revenues of $1.19 billion (accounting for 48% of the total revenues), which fell 31% year over year. The figure missed the Zacks Consensus Estimate of $1.21 million.Communications: Revenues from the market were $302.57 million (12% of revenues), decreasing 37% from the year-ago quarter. The figure lagged the Zacks Consensus Estimate of $319 million.Automotive: Revenues from the market summed up to $739.16 million (29% of revenues), up 9% from the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $697 million.Consumer: The market generated revenues of $274.14 million (11% of revenues), reflecting a 22% decline from the year-ago quarter. The figure beat the Zacks Consensus Estimate of $268 million.Operating DetailsThe adjusted gross margin contracted 460 basis points (bps) from the year-ago quarter to 69%.Adjusted operating expenses were $679.41 million, down 7.3% from the year-ago quarter. As a percentage of revenues, adjusted operating expenses were 27%, expanding 440 bps year over year.The adjusted operating margin contracted 910 bps on a year-over-year basis to 42% in the reported quarter.Balance Sheet & Cash FlowAs of Feb 3, 2024, cash and cash equivalents were $1.3 billion, up from $958.1 million as of Oct 28, 2023.The long-term debt was $5.95 billion at the end of first-quarter fiscal 2024 compared with $5.90 billion at the end of fourth-quarter fiscal 2023.Net cash provided by operations was $1.14 billion in the reported quarter, down from $1.19 billion in the prior fiscal quarter.ADI generated $916 million of free cash flow in the fiscal first quarter.Analog Devices returned $606 million to its shareholders in the fiscal first quarter, of which dividend payments accounted for $426 million and repurchased shares amounted to $180 million.Story continuesGuidanceFor second-quarter fiscal 2024, ADI expects revenues of $2.10 billion (+/- $100 million). The Zacks Consensus Estimate for the same is pegged at $2.40 billion.Non-GAAP earnings are expected to be $1.26 (+/- $0.10) per share. The consensus mark for the same is pinned at $1.63 per share.Analog Devices anticipates a non-GAAP operating margin of 37% (+/- 100 bps).Zacks Rank & Stocks to ConsiderCurrently, Analog Devices carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the broader technology sector are CrowdStrike CRWD, Badger Meter BMI and AMETEK AME. CrowdStrike currently sports a Zacks Rank #1 (Strong Buy), and Badger Meter and AMETEK carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Shares of CrowdStrike have gained 31% in the year-to-date period. The long-term earnings growth rate for CRWD is 36.07%Shares of Badger Meter have lost 0.6% in the year-to-date period. The long-term earnings growth rate for BMI is 12.27%.Shares of AMETEK have gained 5.2% in the year-to-date period. The long-term earnings growth rate for AME is 9.19%.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 reportAnalog Devices, Inc. (ADI) : Free Stock Analysis ReportBadger Meter, Inc. (BMI) : Free Stock Analysis ReportAMETEK, Inc. (AME) : Free Stock Analysis ReportCrowdStrike (CRWD) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Analog Devices (ADI) Q1 Earnings & Revenues Beat, Fall Y/Y

https://finance.yahoo.com/news/analog-devices-adi-q1-earnings-172900018.html

8793a8e3-0948-3b3c-971e-72c606c74bcc

AME

AMETEK Inc showcases robust financial performance with record sales and earnings per share in 2023.Operational Excellence and strategic acquisitions drive AMETEK's market-leading positions and innovation.Global expansion and new product development are key opportunities for AMETEK's sustained growth.Competitive pressures and cybersecurity risks pose significant threats to AMETEK's operations.Warning! GuruFocus has detected 5 Warning Sign with AME.On February 22, 2024, AMETEK Inc, a leading diversified industrial conglomerate, filed its 10-K report, revealing a year of record financial achievements. With sales surpassing $6 billion, the company's strategic focus on electronic instruments and electromechanical products has yielded a 7.3% increase in sales and a 13.2% rise in diluted earnings per share. AMETEK's asset-light strategy, emphasizing acquisitions, R&D, operational efficiencies, and market expansion, has positioned it as a formidable player in the aerospace, power, and industrial markets. This SWOT analysis delves into the strengths, weaknesses, opportunities, and threats as disclosed in the recent SEC filing, providing investors with a comprehensive understanding of AMETEK's market position and future prospects.Decoding AMETEK Inc (AME): A Strategic SWOT InsightStrengthsMarket Leadership and Technological Edge: AMETEK Inc has cemented its market leadership through significant market share in niche segments, particularly within the electronic instruments group (EIG) and electromechanical group (EMG). The company's ability to deliver high-quality, differentiated products at competitive prices has been a cornerstone of its success. AMETEK's technological prowess, underscored by its investment in research, development, and engineering, has led to innovative product offerings that align with attractive secular growth markets. The adoption of Design for Six Sigma and Value Analysis/Value Engineering methodologies has further enhanced the pace and quality of product innovation, resulting in a steady stream of new products across all business units.Story continuesOperational Excellence and Experienced Management: AMETEK's Operational Excellence initiatives have established a lean and flexible manufacturing platform, contributing to lower operating and administrative costs, shortened manufacturing cycle times, and increased customer satisfaction. This operational agility is complemented by an experienced management team with an average of 25 years of service at AMETEK. The team's focus on delivering strong, consistent, and profitable growth has been instrumental in driving shareholder value and creating a sustainable future for all stakeholders.WeaknessesDependence on Cyclical Industries: Despite its diversified portfolio, AMETEK operates in several cyclical industries, such as aerospace and defense, oil and gas, and power markets. These sectors are susceptible to economic downturns and changes in government spending, which could adversely affect AMETEK's business and financial performance. The company's growth is partly reliant on the expansion of these markets, and limited visibility into their future performance poses a challenge to forecasting and strategic planning.Competitive Pressures: AMETEK faces intense competition across its markets, with competition based on technology, performance, quality, service, and price. While the company holds leadership positions in certain segments, there is no guarantee that it will not be adversely affected by increased competition or that its products will continue to compete successfully with those of its competitors. The threat of new entrants or the development of superior products by existing competitors could impact AMETEK's market share and profitability.OpportunitiesStrategic Acquisitions and Global Expansion: AMETEK's growth model includes a strategic focus on acquisitions and global market expansion. The company has completed 15 acquisitions since 2019, with annualized sales totaling approximately $1.6 billion. These acquisitions have not only expanded AMETEK's product offerings but have also enhanced its international presence, particularly in emerging markets. Continued strategic acquisitions and expansion into new geographic regions present significant opportunities for growth and diversification.New Product Development: Innovation remains a key driver of AMETEK's growth strategy. The company's consistent investment in new product development has resulted in a range of new products that address complex customer challenges. By maintaining a focus on differentiated technology solutions, AMETEK is well-positioned to capitalize on emerging market trends and customer needs, thereby fueling long-term growth.ThreatsEconomic Uncertainty and Market Cyclicality: AMETEK's performance is influenced by the economic conditions of the markets it serves. Economic downturns, particularly in key sectors like aerospace, defense, and energy, could lead to reduced demand for AMETEK's products and services. The cyclical nature of these industries means that AMETEK must navigate periods of fluctuating demand, which can impact its financial stability and growth trajectory.Cybersecurity Risks: As a multinational corporation reliant on information technology systems, AMETEK is vulnerable to cybersecurity threats. Despite implementing controls to protect its systems and data, the company acknowledges the risk of system disruptions, data breaches, and cyber-attacks. Such incidents could interrupt operations, damage customer relationships, result in legal liabilities, and adversely affect AMETEK's reputation and financial performance.In conclusion, AMETEK Inc's SWOT analysis reveals a company with strong market leadership, bolstered by technological innovation and operational excellence. However, it also faces challenges from cyclical industry demands and competitive pressures. Opportunities for growth through strategic acquisitions and product development are counterbalanced by threats from economic uncertainty and cybersecurity risks. By leveraging its strengths and addressing its weaknesses, AMETEK is poised to capitalize on opportunities and mitigate threats, ensuring its continued success in the dynamic industrial landscape.This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.This article first appeared on GuruFocus.

GuruFocus.com

Decoding AMETEK Inc (AME): A Strategic SWOT Insight

https://finance.yahoo.com/news/decoding-ametek-inc-ame-strategic-050756744.html

c6b884e6-65d8-332a-b945-dacd9ed22a35

AME

PayPal PYPL now brings an end to the wait for merchants using Venmo and Zettle apps to avail of Tap to Pay on iPhone.With this feature, the company aims to empower businesses, especially the small ones, by allowing them to accept contactless payments directly on their iPhoneswithout additional hardware or upfront costs.Businesses will now be able to accept contactless cards and digital wallets in minutes, resulting in streamlined operations and improved cash flow.The sale proceeds collected by using this feature will get directly deposited to the Venmo or PayPal Zettle accounts of the businesses.Also, the feature enables merchants to add taxes, accept tips, send receipts and issue refunds without any additional hardware support.We believe that the latest move will likely drive PayPal’s momentum across small businesses.Notably, the underlined feature is currently available for all Venmo business profiles and PayPal Zettle users in the United States.PayPal Holdings, Inc. Price and Consensus PayPal Holdings, Inc. Price and ConsensusPayPal Holdings, Inc. price-consensus-chart | PayPal Holdings, Inc. QuoteStrength in Payment Solution OfferingsThe latest launch follows PayPal’s introduction of Tap to Pay on Android for Venmo and Zettle users last year, which was another initiative to empower small businesses with seamless payment options.In addition to the Tap to Pay feature, the company offers various features that allow small businesses to accept payments made through PayPal, credit and debit cards, digital wallets, Venmo, PayPal Pay Later, and Apple Pay.PayPal’s introduction of the ability for customers to add their PayPal and Venmo credit or debit cards to Apple Wallet remains noteworthy. It enables secure, quick and seamless payments on iPhone or Apple Watch, while earning cashback and rewards.PayPal's subsidiary, Xoom, offers Debit Card Deposit, which allows U.S. customers to conveniently and securely send money directly to friends and family’s eligible Visa debit cards. It is available in 25 countries.Apart from these, the company recently announced plans to introduce six AI-driven personalization innovations to revolutionize commerce for both merchants and consumers this year.We note that the growing portfolio offerings will continue to drive PayPal’s customer momentum in the near term.Story continuesWrapping UpPayPal’s increasing interest in the expansion of its payment solution offerings has been playing a vital role in strengthening its presence in the booming online payment industry.Per a report from Statista, the digital payment market is expected to hit a transaction value of $11.55 trillion in 2024 and reach $16.62 trillion by 2028, seeing a CAGR of 9.52% between 2024 and 2028.The growth prospects of the company in this promising market are likely to continue driving its financial performance in the near term. This is likely to help it win investor confidence in the days ahead.The Zacks Consensus Estimate for first-quarter 2024 revenues is pegged at $7.5 billion, indicating growth of 6.6% from the year-ago quarter’s reported figure.However, the company has been suffering from intensifying competition in the digital payment market, which poses a serious risk to its market position. It is witnessing a continuous loss of unengaged accounts, which remains another major concern.PYPL has lost 4.8% in the year-to-date period against the industry’s growth of 17.4%.Zacks Rank & Stocks to ConsiderCurrently, PayPal carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader technology sector are CrowdStrike CRWD, Badger Meter BMI and AMETEK AME, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Shares of CrowdStrike have gained 25.7% in the year-to-date period. The long-term earnings growth rate for CRWD is 36.07%Shares of Badger Meter have gained 2.2% in the year-to-date period. The long-term earnings growth rate for BMI is 12.27%.Shares of AMETEK have gained 8.4% in the year-to-date period. The long-term earnings growth rate for AME is 9.19%.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 reportBadger Meter, Inc. (BMI) : Free Stock Analysis ReportAMETEK, Inc. (AME) : Free Stock Analysis ReportPayPal Holdings, Inc. (PYPL) : Free Stock Analysis ReportCrowdStrike (CRWD) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

PayPal (PYPL) Starts iPhone Tap to Pay for Venmo and Zettle Users

https://finance.yahoo.com/news/paypal-pypl-starts-iphone-tap-140100676.html

11a943bc-59ac-38ef-9bdc-98c711b4f378

AME

Garmin GRMN is leaving no stone unturned to strengthen its aviation segment on the back of strong inflight offerings.This is evident from the latest advancements in the FltPlan safety management system (SMS), which now comes with updated features of the Flight Risk Assessment Tool (FRAT).The company has made flight risk assessment submissions simple to save pilots’ time in data input so that they can quickly complete a FRAT before a flight. The new FRAT is designed to input data regarding a flight, such as weather, terrain and runway conditions, automatically.This way pilots will now be able to get flight risk score and risk mitigation strategies seamlessly. Also, the redesigned FRAT can be customized for different pilots and aircraft.In addition, FltPlan SMS shows a safety performance dashboard, which allows operators to monitor safety performance indicators easily. It also helps in the identification of areas that require safety enhancements.Apart from this, employees of participating flight departments can file an Aviation Safety Action Program report directly through FltPlan SMS.All these enhancements and their benefits are expected to bolster the adoption of FltPlan SMS.Garmin Ltd. Price and Consensus Garmin Ltd. Price and ConsensusGarmin Ltd. price-consensus-chart | Garmin Ltd. QuoteAviation in FocusWe believe that Garmin’s strong endeavors toward bolstering its aviation segment, which offers integrated avionics or flight decks, panel-mounted navigation, traffic, audio, transponder, weather, and other products like portable and wearable solutions, will continue to drive its momentum among various flight owners and pilots.Garmin’s family of autonomous safety solutions — Garmin Autonomi, which comprises Emergency Descent Mode, and Electronic Stability and Protection and Autoland — has emerged as a key catalyst for its aviation business.A robust flight display portfolio has been playing a crucial role in shaping the growth trajectory of Garmin’s aviation business.The company enjoys solid momentum across OEM categories on the back of its popular aviation solutions.However, weakening demand in aftermarket categories remains a major headwind for the segment.In fourth-quarter 2023, the underlined segment generated sales of $217.13 million (14.7% of the total sales), increasing 3.6% on a year-over-year basis.For 2024, Garmin expects aviation revenues to be flat with the 2023 reported level.Story continuesStrengthening Portfolio OfferingsGarmin’s expanding aviation offerings are, in turn, strengthening its overall product portfolio. Its portfolio strength remains the key growth driver for the company. Its shares have gained 52% in the past year, outperforming the industry’s rally of 41.1%.Recently, Garmin launched the Forerunner 165 Series, an affordable GPS-running smartwatch featuring personalized training plans and health metrics on a bright AMOLED display.It introduced the Panoptix PS70, a live sonar system powered by Garmin RapidReturn technology, providing real-time underwater visibility at greater depths.Further, Garmin unveiled the GPSMAP 16x3 chart plotters, featuring a high-resolution 16-inch touchscreen display with built-in navigation and sonar support to offer superior clarity and sunlight readability, even with polarized sunglasses.Additionally, the company introduced affordable COMM and NAV/COMM radios with a slim 1.3-inch bezel height form factor, featuring a full-color LCD display, intuitive user interface and worldwide frequency database.Garmin’s growing endeavors to expand its portfolio are expected to continue aiding its overall financial performance in the near term.GRMN expects revenues of $5.75 billion for 2024, indicating year-over-year growth of 10%. The Zacks Consensus Estimate for 2024 revenues is pegged at $5.77 billion, indicating year-over-year growth of 10.4%.Zacks Rank & Stocks to ConsiderGarmin currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader technology sector are CrowdStrike CRWD, Badger Meter BMI and AMETEK AME, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Shares of CrowdStrike have gained 25.7% in the year-to-date period. The long-term earnings growth rate for CRWD is 36.07%Shares of Badger Meter have gained 2.2% in the year-to-date period. The long-term earnings growth rate for BMI is 12.27%.Shares of AMETEK have gained 8.4% in the year-to-date period. The long-term earnings growth rate for AME is 9.19%.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 reportGarmin Ltd. (GRMN) : Free Stock Analysis ReportBadger Meter, Inc. (BMI) : Free Stock Analysis ReportAMETEK, Inc. (AME) : Free Stock Analysis ReportCrowdStrike (CRWD) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Garmin (GRMN) Boosts Aviation Business With FltPlan SMS Updates

https://finance.yahoo.com/news/garmin-grmn-boosts-aviation-business-162500067.html

ff694b5b-09c0-356e-ad6d-f9ef2122ac6d

AMGN

The biotech industry can be risky and volatile, but there are advantages to investing in companies in this field. Many of them develop lifesaving drugs, the kinds we'll need until we can completely eradicate diseases, which doesn't seem likely to happen in the next decade.Of course, investing in just any biotech stock won't do. It's important to decide whether a company has the innovative capabilities to stay relevant and continuously deliver strong returns. Let's consider three biotech stocks that have what it takes: CRISPR Therapeutics (NASDAQ: CRSP), Axsome Therapeutics (NASDAQ: AXSM), and Amgen (NASDAQ: AMGN).1. CRISPR TherapeuticsCRISPR Therapeutics is on a roll. The company recently earned approval for its first product, Casgevy, a gene-editing therapy for a couple of rare blood diseases. Developed in collaboration with biotech giant Vertex Pharmaceuticals, Casgevy should have massive commercial success. CRISPR and Vertex estimate a total patient population of at least 35,000, and the treatment costs $2.2 million per patient in the U.S. Even grabbing just 30% of that target market would mean billions of dollars in revenue. There aren't many competitors to contend with, either, so things are looking good for CRISPR and Vertex.CRISPR Therapeutics gained substantial prominence thanks to this regulatory nod, because the biotech focuses on developing CRISPR-based therapies. Despite landing its creators a Nobel prize in chemistry, this gene-editing technique had never before produced an approved medicine. Casgevy changed that, giving more credence to CRISPR Therapeutics' entire platform.In the next few years, investors should expect significant clinical progress from the biotech's several pipeline candidates, helping to expand its future lineup. CRISPR Therapeutics has delivered solid returns since its 2016 initial public offering, and the biotech isn't about to stop now.2. Axsome TherapeuticsAxsome Therapeutics has experienced significant clinical and regulatory progress over the past three years, culminating in the approval of Auvelity, a treatment for depression, in 2022. Axsome's lineup also features narcolepsy therapy Sunosi, acquired in 2022 from Jazz Pharmaceuticals.Story continuesThese two medicines are generating growing sales. Last year, Axsome Therapeutics' revenue came in at about $270 million, much better than the roughly $50 million reported in 2022.Meanwhile, Auvelity is being tested in Alzheimer's disease agitation (aggressive and restless symptoms) and should soon start a pivotal study in smoking cessation. Sunosi will soon kick off late-stage studies in depression, binge eating disorder, and shift work sleep disorder (disruptions in sleep rhythms caused by unconventional working hours); it has an ongoing late-stage study targeting ADHD.And there's more good news: Axsome has a rich late-stage pipeline that should yield more clinical and regulatory wins in the next few years. It's running a phase 3 study for AXS-12 targeting narcolepsy, while it plans to submit regulatory applications for AXS-07 for migraine and AXS-14 for fibromyalgia (a chronic disease that causes pain and trouble sleeping).The company's lineup should be transformed in the next three years, setting up a solid foundation for consistent revenue growth and stock-market performance through 2034.3. AmgenAmgen is a well-established biotech company with a long list of marketed products. However, the drugmaker has been dealing with slow or nonexistent revenue growth due to competition.The biotech has a plan to turn things around. It's developing new therapies, and this includes the highly promising weight-loss area. Sales of anti-obesity drugs are projected to skyrocket in the coming years, and Amgen hopes to capture a piece of this market. Amgen also acquired Horizon Therapeutics for $28 billion last year, a move that significantly expanded its lineup and pipeline.Furthermore, the drugmaker has been making a push in the biosimilars market, another promising industry considering that most people think prescription drugs are too expensive. Amgen is working on biosimilar versions of several blockbusters, from Regeneron Pharmaceuticals' Eylea, a treatment for wet age-related macular degeneration (an eye disease), to Bristol Myers Squibb's cancer drug Opdivo.Amgen has a deep pipeline and a long history of developing newer and better medicines, so it should do just fine. Then there's the fact that it boasts a solid dividend program. Whether it's to boost returns over the next decade or for passive income, Amgen is an excellent pick for income-seeking investors.Should you invest $1,000 in CRISPR Therapeutics right now?Before you buy stock in CRISPR Therapeutics, 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 CRISPR Therapeutics 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, 2024Prosper Junior Bakiny has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Axsome Therapeutics, Bristol Myers Squibb, CRISPR Therapeutics, and Vertex Pharmaceuticals. The Motley Fool recommends Amgen. The Motley Fool has a disclosure policy.3 Biotech Stocks to Buy and Hold for the Next 10 Years was originally published by The Motley Fool

Motley Fool

3 Biotech Stocks to Buy and Hold for the Next 10 Years

https://finance.yahoo.com/news/3-biotech-stocks-buy-hold-135000463.html

ff93f026-19f4-3810-9882-5fafeaaba863

AMGN

THOUSAND OAKS, Calif., Feb. 26, 2024 /PRNewswire/ -- Amgen (NASDAQ:AMGN) today announced the opening of its manufacturing site in Central Ohio, the newest in its global operations network and the most advanced facility to date."Our new facility, known as Amgen Ohio, was designed with the latest innovation and technology to deliver safe, reliable medicines for 'every patient, every time,'" said Robert A. Bradway, chairman and chief executive officer at Amgen. "As part of Amgen's global biomanufacturing network, Amgen Ohio will play an important role in helping us address serious disease around the world with our innovative biomedicines."The nearly 300,000-square-foot facility will employ 400 full-time staff. It also features open workspaces to foster collaboration and has been designed to meet the highest environmental sustainability standards, in support of Amgen's commitment to achieve carbon neutrality for all operations by 2027."This new Ohio facility is a success story in advanced healthcare manufacturing and the Made-in-America supply chain we need to live and thrive," said Lt. Governor Jon Husted. "Winning this project for Ohio creates 400 high-paying jobs and a $40 million annual payroll, supporting families and further growing the Ohio economy."Amgen is a strong supporter of the communities in which its staff members work and live. In partnership with Columbus State Community College, Amgen is hosting an inaugural 18-month manufacturing apprenticeship at the site. This program, designed for those new to the field or changing careers, offers a blend of classroom and practical training, aiming to expand opportunities for skilled individuals without the requirement for a formal bachelor's degree.About Amgen Amgen is committed to unlocking the potential of biology for patients suffering from serious illnesses by discovering, developing, manufacturing and delivering innovative human therapeutics. This approach begins by using tools like advanced human genetics to unravel the complexities of disease and understand the fundamentals of human biology.Story continuesAmgen focuses on areas of high unmet medical need and leverages its expertise to strive for solutions that improve health outcomes and dramatically improve people's lives. A biotechnology pioneer since 1980, Amgen has grown to be one of the world's leading independent biotechnology companies, has reached millions of patients around the world and is developing a pipeline of medicines with breakaway potential.Amgen is one of the 30 companies that comprise the Dow Jones Industrial Average and is also part of the Nasdaq-100 index. In 2023, Amgen was named one of "America's Greatest Workplaces" by Newsweek, one of "America's Climate Leaders" by USA Today and one of the "World's Best Companies" by TIME.For more information, visit Amgen.com and follow us on X (formerly known as Twitter), LinkedIn, Instagram, TikTok, YouTube and Threads.Amgen Forward-Looking StatementsThis news release contains forward-looking statements that are based on the current expectations and beliefs of Amgen. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including any statements on the outcome, benefits and synergies of collaborations, or potential collaborations, with any other company (including BeiGene, Ltd. or Kyowa Kirin Co., Ltd.), the performance of Otezla® (apremilast) (including anticipated Otezla sales growth and the timing of non-GAAP EPS accretion), our acquisitions of Teneobio, Inc., ChemoCentryx, Inc., or Horizon Therapeutics plc (including the prospective performance and outlook of Horizon's business, performance and opportunities, any potential strategic benefits, synergies or opportunities expected as a result of such acquisition, and any projected impacts from the Horizon acquisition on our acquisition-related expenses going forward), as well as estimates of revenues, operating margins, capital expenditures, cash, other financial metrics, expected legal, arbitration, political, regulatory or clinical results or practices, customer and prescriber patterns or practices, reimbursement activities and outcomes, effects of pandemics or other widespread health problems on our business, outcomes, progress, and other such estimates and results. Forward-looking statements involve significant risks and uncertainties, including those discussed below and more fully described in the Securities and Exchange Commission reports filed by Amgen, including our most recent annual report on Form 10-K and any subsequent periodic reports on Form 10-Q and current reports on Form 8-K. Unless otherwise noted, Amgen is providing this information as of the date of this news release and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.No forward-looking statement can be guaranteed and actual results may differ materially from those we project. Our results may be affected by our ability to successfully market both new and existing products domestically and internationally, clinical and regulatory developments involving current and future products, sales growth of recently launched products, competition from other products including biosimilars, difficulties or delays in manufacturing our products and global economic conditions. In addition, sales of our products are affected by pricing pressure, political and public scrutiny and reimbursement policies imposed by third-party payers, including governments, private insurance plans and managed care providers and may be affected by regulatory, clinical and guideline developments and domestic and international trends toward managed care and healthcare cost containment. Furthermore, our research, testing, pricing, marketing and other operations are subject to extensive regulation by domestic and foreign government regulatory authorities. We or others could identify safety, side effects or manufacturing problems with our products, including our devices, after they are on the market. Our business may be impacted by government investigations, litigation and product liability claims. In addition, our business may be impacted by the adoption of new tax legislation or exposure to additional tax liabilities. If we fail to meet the compliance obligations in the corporate integrity agreement between us and the U.S. government, we could become subject to significant sanctions. Further, while we routinely obtain patents for our products and technology, the protection offered by our patents and patent applications may be challenged, invalidated or circumvented by our competitors, or we may fail to prevail in present and future intellectual property litigation. We perform a substantial amount of our commercial manufacturing activities at a few key facilities, including in Puerto Rico, and also depend on third parties for a portion of our manufacturing activities, and limits on supply may constrain sales of certain of our current products and product candidate development. An outbreak of disease or similar public health threat, such as COVID-19, and the public and governmental effort to mitigate against the spread of such disease, could have a significant adverse effect on the supply of materials for our manufacturing activities, the distribution of our products, the commercialization of our product candidates, and our clinical trial operations, and any such events may have a material adverse effect on our product development, product sales, business and results of operations. We rely on collaborations with third parties for the development of some of our product candidates and for the commercialization and sales of some of our commercial products. In addition, we compete with other companies with respect to many of our marketed products as well as for the discovery and development of new products. Discovery or identification of new product candidates or development of new indications for existing products cannot be guaranteed and movement from concept to product is uncertain; consequently, there can be no guarantee that any particular product candidate or development of a new indication for an existing product will be successful and become a commercial product. Further, some raw materials, medical devices and component parts for our products are supplied by sole third-party suppliers. Certain of our distributors, customers and payers have substantial purchasing leverage in their dealings with us. The discovery of significant problems with a product similar to one of our products that implicate an entire class of products could have a material adverse effect on sales of the affected products and on our business and results of operations. Our efforts to collaborate with or acquire other companies, products or technology, and to integrate the operations of companies or to support the products or technology we have acquired, may not be successful. There can be no guarantee that we will be able to realize any of the strategic benefits, synergies or opportunities arising from the Horizon acquisition, and such benefits, synergies or opportunities may take longer to realize than expected. We may not be able to successfully integrate Horizon, and such integration may take longer, be more difficult or cost more than expected. A breakdown, cyberattack or information security breach of our information technology systems could compromise the confidentiality, integrity and availability of our systems and our data. Our stock price is volatile and may be affected by a number of events. Our business and operations may be negatively affected by the failure, or perceived failure, of achieving our environmental, social and governance objectives. The effects of global climate change and related natural disasters could negatively affect our business and operations. Global economic conditions may magnify certain risks that affect our business. Our business performance could affect or limit the ability of our Board of Directors to declare a dividend or our ability to pay a dividend or repurchase our common stock. We may not be able to access the capital and credit markets on terms that are favorable to us, or at all.CONTACT: Amgen, Thousand Oaks Elissa Snook, 609-251-1407 (media)Jessica Akopyan, 805-440-5721 (media) Justin Claeys, 805-313-9775 (investors)Amgen Logo. (PRNewsFoto/Amgen) (PRNewsFoto/) CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/amgen-opens-state-of-the-art-biomanufacturing-site-in-central-ohio-302070160.htmlSOURCE Amgen

PR Newswire

AMGEN OPENS STATE-OF-THE-ART BIOMANUFACTURING SITE IN CENTRAL OHIO

https://finance.yahoo.com/news/amgen-opens-state-art-biomanufacturing-140000083.html

45126916-73e6-3913-b073-46c8a6eddbd8

AMGN

In this article, we will look at the 20 highest-paying countries for biotechnology. We have also discussed the global biotechnology market along with key trends and players. If you want to skip our detailed analysis, head straight to the 5 Highest Paying Countries for Biotechnology. The Global Biotechnology MarketThe global biotechnology market exhibited major growth, with a valuation of $1.38 trillion in 2023, projected to increase to approximately $4.25 trillion by 2033. This expansion is anticipated to maintain a compound annual growth rate (CAGR) of 11.8% from 2024 to 2033. Notably, North America dominated the market in 2023, holding a major revenue share of 37.79%, while Asia Pacific followed closely behind with a share of 23.99%.In terms of application, bio-pharmacy had the largest revenue share in 2023, capturing 41.73%, while bio-industries accounted for 24.33%. The US biotechnology market, valued at $246.18 billion in 2023, is expected to reach $763.82 billion by 2033, growing at a CAGR of 11.90%. The Asia-Pacific region is set to witness sizable growth, with a forecasted growth rate exceeding 12.7% during the forecast period, attributed to improvements in healthcare infrastructure and supportive government regulations.Technological development, particularly in tissue engineering and regeneration, is driving market growth, with the segment commanding a major share in 2023. Additionally, chromatography is anticipated to witness rapid growth, offering precise analytical capabilities essential for various biotechnological applications. Latest Key Trends in the Biotechnology Industry In 2023, the biotechnological industry underwent major transformations, including layoffs and leadership changes. Investors reoriented towards fewer but more impactful deals, driven partly by the challenges faced by Silicon Valley Bank. This shift saw a decline in the number of deals, with only about 840 totaling approximately $24 billion compared to over 1,500 deals totaling nearly $60 billion in 2021.Story continuesMoreover, technological breakthroughs have been notable, such as the FDA's approval of the first Crispr gene therapy, offering hope for treating genetic disorders. Additionally, whole genome sequencing, previously confined to research, entered clinical practice, enhancing genetic disease diagnosis and embryo screening in IVF clinics.Pharmaceutical giants Novo Nordisk A/S (NYSE:NVO) and Eli Lilly and Co (NYSE:LLY) saw major growth with GLP-1 drugs, witnessing increased sales and stock prices. Forecasts suggest these drugs could generate up to $400 billion annually in the United States alone.The Key Players of Biotechnology Market in 2024Two of the important players we’d like to discuss in the context of biotechnology are Amgen Inc (NASDAQ:AMGN) and Biogen Inc (NASDAQ:BIIB). Let’s look at their recent developments. Amgen Inc (NASDAQ:AMGN)’s experimental weight-loss drug, in clinical trials, has shown promising results with notable statistics. In one study, patients experienced an average weight loss of 8.2% over 92 days with the highest dosage, compared to a 1.7% gain in the placebo group. Another study demonstrated a 14.5% weight loss over 85 days, with the weight loss maintained for up to 150 days. However, adverse effects were observed, with half of the high-dose group discontinuing after the first dose due to nausea and vomiting.Despite the positive outcomes, concerns persist regarding the drug's side effects. Analysts anticipate further evaluation during the Phase 2 trials later in the year. Concurrently, Amgen Inc (NASDAQ:AMGN)’s stock saw a slight decline, contrasting with Eli Lilly and Co (NYSE:LLY)’s significant increase of 5.8%, reaching a record high. Novo Nordisk A/S (NYSE:NVO) also experienced a notable 4% increase in shares, attributed in part to Novo Nordisk A/S (NYSE:NVO)’s $11.5 billion acquisition of Catalent, aimed at enhancing production capabilities.While Amgen Inc (NASDAQ:AMGN)’s foray into the weight-loss drug market holds promise, analysts suggest it may take years before a market-ready product emerges. On the other hand, Biogen Inc (NASDAQ:BIIB) is facing challenges following the underwhelming demand for its once-promising Alzheimer's drug, Aduhelm. With a staggering 198,000 liters of mammalian capacity at its Swiss and North Carolina sites, primarily allocated for Aduhelm production, Biogen Inc (NASDAQ:BIIB) is reassessing its manufacturing strategy with uncertain commercial prospects. The FDA's approval of Aduhelm in 2021 was overshadowed by CMS restrictions, leaving Biogen Inc (NASDAQ:BIIB) struggling with major inventory write-offs and idle capacity, resulting in a reported loss of $45 million in the first quarter of 2022.In response to these setbacks, Biogen Inc (NASDAQ:BIIB) is adopting cost-reduction measures, aiming to save $500 million by eliminating Aduhelm infrastructure and reducing operational expenses. CEO Michael Vounatos hinted at a shift in focus towards other pipeline candidates, such as Lecanemab, indicating a potential redirection of manufacturing resources. Despite the challenges, Biogen Inc (NASDAQ:BIIB) remains committed to aligning its capabilities with evolving market demands.20 Highest Paying Countries for BiotechnologyA scientist in a lab conducting research on cell-based therapeutics and biotechnology.Our MethodologyTo list the highest paying countries for biotechnology we identified the countries with the highest demand for biotechnologists and then made a list for 30 countries with the average salaries for biotechnologists. Of those 30, the 20 with the highest average salaries were selected and have been ranked. We acquired the data for average salaries of biotechnologists for each country from the Economic Research Institute (ERI). The list is presented in ascending order.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.20. SpainAverage Salary: $60,353Spain's biotech sector has experienced exponential growth and hence, attracted international investors. In 2019, it invested €940 million ($1.06 billion) in R&D, doubling over a decade. By 2020, funding exceeded €150 million ($168.5 million). BioSpain, a major industry event, drew over 2,000 attendees from 30+ countries, showcasing Spain's thriving biotech landscape. 19. SingaporeAverage Salary: $64,787Singapore's high-paying biotech sector is a result of strategic investments by the government dating back to 2000, aiming to diversify the economy. Billions have been poured into dedicated research hubs like Biopolis, attracting global talent. Singapore's long-term vision allows for sustained development, contrasting with short-term US cycles. Additionally, a focus on education, with funding for PhDs and university positions, ensures a skilled workforce. The sector has tripled in size in a decade, with predictions of further growth.18. ItalyAverage Salary: $66,694Italy is among the highest paying countries for biotech owing to its burgeoning biotech industry and investment in research and development. Companies like Menarini Group and MolMed are key players in the Italian biotech sector. 17. United Arab EmiratesAverage Salary: $66,933Dubai's DuBiotech offers a compelling platform for biotech careers with its strategic advantages. Spanning 30 million square feet, it fosters innovation in a tax-friendly environment. Boasting a 50-year tax exemption and full foreign ownership, it attracts top talent and investment. The park's state-of-the-art infrastructure, including the Nucleotide Lab Complex, supports cutting-edge research and development. With over 400 companies and 4,000 professionals, it's a vibrant hub for collaboration and growth. 16. New ZealandAverage Salary:  $69,354New Zealand offers high salaries in biotech due to its advanced research infrastructure, government incentives, and focus on innovation. With a flourishing biotech sector supported by world-class universities and research organizations, the country attracts top talent globally. 15. United KingdomAverage Salary: $72,787The UK's biotech sector has seen remarkable success, evidenced by major contributions to the economy. With over £16.4 billion ($20.8 million) generated annually through drug manufacturing alone, it highlights the sector's strong financial impact. 14. FranceAverage Salary: $76,650France is one of the best countries for biotech jobs, exemplified by startups like Toopi Organics. With an impressive €8.4 million ($9.15 million) funding from the EIC Accelerator, Toopi Organics has launched urine upcycling for agriculture, addressing major environmental challenges. In 2023 alone, Toopi Organics collected urine from nearly 2 million EU citizens and launched its first product, Lactopi Start, approved for organic farming in 5 EU member states. With expanding initiatives and supportive funding, France's biotech sector promises substantial growth, offering unparalleled opportunities for innovation and impact. 13. FinlandAverage Salary: $80,668Finland is a top-paying country for biotech owing to its strong innovation ecosystem, supportive government policies, high-quality research institutions, and skilled workforce. With a focus on cutting-edge technology and strong investment in R&D, Finnish biotech companies attract talent globally, driving competitive salaries. 12. IrelandAverage Salary: $81,277Biotechnology in Ireland continues to grow with Pfizer Inc (NYSE:PFE)’s major investments. Pfizer Inc (NYSE:PFE)’s Grange Castle facility expansion, with a €1.2bn ($1.26bn) investment, has bolstered the country’s biotech sector. Set for completion by 2027, the project will double biological drug manufacturing capacity, creating 400-500 jobs. The campus, part of Pfizer Inc (NYSE:PFE)’s global biotech network, produces vital drugs and vaccines, including Paxlovid Covid-19 mRNA vaccine. 11. NetherlandsAverage Salary: $81,653The Netherlands among the top countries for biotech salaries. The country has over 3000 firms investing €2.2 billion ($2.40 billion) in R&D as of January 2023. With a flourishing ecosystem supported by leading academic institutions, strategic collaborations, and government incentives such as tax relief, it's a hotspot for innovation. Notably, it ranks second globally for biotechnology patent applications, indicating its strong research environment.  10. AustraliaAverage Salary: $82,804Australia is a true leader in biotech industry with over 1,400 companies, 80% of which are agile small to medium enterprises, contributing largely to R&D spending, totaling $4.2 billion due to the R&D Tax Incentives (RDTI). Implemented in 2011, RDTI's tax offset, scaled by turnover, serves as a lifeline for smaller biotechs, crucial for innovation and market entry. It is also one of the highest-paying countries for microbiologists. 9. CanadaAverage Salary: $82,980In Canada, the biotech industry is growing, with companies like Takeda,  Novo Nordisk A/S (NYSE:NVO), Zymeworks, MedAvail, and Deep Genomics leading the charge in innovation. Takeda focuses on various medical fields including oncology and rare diseases, while Novo Nordisk A/S (NYSE:NVO)  specializes in defeating chronic illnesses like diabetes and Alzheimer's. With an average salary of $82,980, it is one of the top 10 highest paying countries for biotechnology.8. AustriaAverage Salary: $87,730Austria is among the top-paying countries for biotech jobs in Europe due to its strong emphasis on research and innovation, supported by government investment and a robust academic-industry collaboration. The country boasts a highly skilled workforce and a favorable business environment. 7. GermanyAverage Salary: $89,073Germany's biotech industry continues to grow with lucrative acquisitions like Novartis AG (NYSE:NVS) purchasing MorphoSys for $2.9 billion, bolstering cancer drug development. Novartis AG (NYSE:NVS)’s acquisition provides access to MorphoSys' innovative treatments, enhancing their portfolio and fostering job growth in the high-paying biotech sector. The deal signals confidence in Germany's biotech prowess, offering substantial resources to expedite drug development. 6. BelgiumAverage Salary: $94,354Belgium is a powerhouse in European biotech, trailing only Denmark with a €40.1 billion ($43.69 billion) market capitalization by March 2023. Despite global economic downturns, Belgium's biotech sector has shown resilience, spearheaded by argenx's impressive 25% market value increase. However, smaller firms, valued under €1 billion ($1.09 billion), face volatility, sliding to seventh place in the European hierarchy with a combined value of €1.6 billion ($1.74 billion). It is one of the countries with the best pharmaceutical industry.Click here to see the 5 Highest Paying Countries for Biotechnology.Suggested Articles:20 Fastest Growing Biotech Companies in the US11 Most Promising Biotech Stocks to Buy According to Analysts12 Best Small-Cap Biotech Stocks with Massive Potential According to Hedge FundsDisclosure: None. 20 Highest Paying Countries for Biotechnology is originally published on Insider Monkey.

Insider Monkey

20 Highest Paying Countries for Biotechnology

https://finance.yahoo.com/news/20-highest-paying-countries-biotechnology-164442858.html

be4fb8ef-6716-3137-b78d-dc0ad5e13de3

AMGN

The latest trading session saw Amgen (AMGN) ending at $275.36, denoting a +0.59% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 0.11%. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq decreased by 0.41%.The world's largest biotech drugmaker's stock has dropped by 5.97% in the past month, falling short of the Medical sector's gain of 3.03% and the S&P 500's gain of 2.7%.The investment community will be paying close attention to the earnings performance of Amgen in its upcoming release. It is anticipated that the company will report an EPS of $3.83, marking a 3.77% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $7.45 billion, showing a 21.98% escalation compared to the year-ago quarter.AMGN's full-year Zacks Consensus Estimates are calling for earnings of $19.48 per share and revenue of $32.91 billion. These results would represent year-over-year changes of +4.45% and +16.75%, respectively.Investors should also pay attention to any latest changes in analyst estimates for Amgen. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 moved 0.08% lower. Amgen is currently sporting a Zacks Rank of #3 (Hold).Story continuesIn terms of valuation, Amgen is presently being traded at a Forward P/E ratio of 14.05. Its industry sports an average Forward P/E of 23.73, so one might conclude that Amgen is trading at a discount comparatively.Also, we should mention that AMGN has a PEG ratio of 2.57. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Medical - Biomedical and Genetics stocks are, on average, holding a PEG ratio of 1.61 based on yesterday's closing prices.The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 79, finds itself in the top 32% echelons of all 250+ industries.The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAmgen Inc. (AMGN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why the Market Dipped But Amgen (AMGN) Gained Today

https://finance.yahoo.com/news/why-market-dipped-amgen-amgn-215017940.html

8a592862-1fca-3096-8cfc-7c76065e3be9

AMP

New strategic investment agreement aims to grow Columbia Threadneedle CLO platformBOSTON, February 26, 2024--(BUSINESS WIRE)--Columbia Threadneedle Investments ("Columbia Threadneedle") today announced that it has entered into a strategic investment agreement to grow its CLO platform with a consortium of investors arranged by Jefferies ("the Consortium") that includes Columbia Threadneedle’s parent company, Ameriprise Financial.The Consortium will commit equity capital that will support the issuance of multiple CLOs over the next several years. The agreement builds on an established relationship between Jefferies and Columbia Threadneedle’s CLO platform and will support a model for CLO formation designed to establish Columbia Threadneedle as a serial CLO issuer and further grow its fixed income franchise.Columbia Threadneedle’s bank loan team manages $4 billion and includes dedicated portfolio managers, research analysts and traders who manage CLOs and other loan funds. The team’s investment approach is grounded in proprietary, fundamental credit research conducted by bank loan analysts and supported by the firm’s more than 80 strong fixed income research team. Columbia Threadneedle manages over $238 billion in fixed income assets across a range of single and multi-sector strategies.Stanton Ray, Head of U.S. Loan Platform at Columbia Threadneedle, said, "We greatly value our relationship with Jefferies and look forward to leveraging this agreement to grow the CLO business and reach more investors in this important asset class."About Columbia Threadneedle InvestmentsColumbia Threadneedle Investments is a leading global asset manager that provides a broad range of investment strategies and solutions for individual, institutional and corporate clients around the world. With more than 2,500 people, including over 650 investment professionals based in North America, Europe and Asia, we manage $637 billion of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives.1Story continuesColumbia Threadneedle Investments is the global asset management group of Ameriprise Financial, Inc. (NYSE: AMP). For more information, please visit columbiathreadneedleus.com.Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies.1 As of Dec. 31, 2023.AdTrax: CTNA6411786.1© 2024 Columbia Management Investment Advisers, LLC. All rights reserved.View source version on businesswire.com: https://www.businesswire.com/news/home/20240226779737/en/ContactsMeghan Shields617.835.7509meghan.shields@columbiathreadneedle.com

Business Wire

Columbia Threadneedle Enters CLO Equity Investment Agreement with Jefferies-led Consortium

https://finance.yahoo.com/news/columbia-threadneedle-enters-clo-equity-140000996.html

c93b70ae-b135-3a7b-b21d-f3e3d0d66fc0

AMP

MINNEAPOLIS, February 26, 2024--(BUSINESS WIRE)--Ameriprise Financial (NYSE: AMP) has been named by Forbes as one of "America’s Best Large Employers" for the fourth consecutive year. The 2024 list ranks the top 600 U.S. companies that are most highly recommended by their employees as a great place to work."It’s a privilege to have Ameriprise employees rank us as one of the best employers," said Kelli Hunter Petruzillo, Executive Vice President of Human Resources at Ameriprise. "At Ameriprise, we take great care in building a values-based, inclusive culture that allows all employees and advisors to feel like they belong and can grow and develop in their careers. Earning this recognition for the fourth year in a row symbolizes the pride our employees take in the work they do to help millions of clients achieve their biggest financial goals with confidence."Forbes partnered with market research and industry ranking provider Statista to survey more than 170,000 employees at American companies with a workforce greater than 1,000 people over the last three years. Respondents were anonymously asked whether they would recommend their current, former and other familiar employers to friends and family on an 11-point scale. The final ranking in the Large Employers category includes companies with at least 5,000 employees from 27 industry categories.The full list of Forbes America’s Best Large Employers 2024 can be found at forbes.com.About Ameriprise FinancialAt Ameriprise Financial, we have been helping people feel more confident about their financial future for 130 years1. With extensive investment advice, asset management and insurance capabilities and a nationwide network of approximately 10,000 financial advisors, we have the strength and expertise to serve the full range of individual and institutional investors' financial needs.1Company founded June 29, 1894Forbes and Statista recognized America’s Best Large Employers 2024 across 27 industries. Approximately 170,000 U.S. residents working for companies employing at least 1,000 people in their U.S. operations were surveyed over the last three years. Respondents were consulted anonymously through online panels and rated their willingness to recommend their current and former employers on an 11-point scale. Respondents could also rate their willingness to recommend other employers in their industries or employers of friends, acquaintances and family. The final list of Best Large Employers recognized the top 600 companies with the highest score of recommendations and at least 5,000 employees. Ameriprise did not pay a fee to be evaluated for this list. For more information, visit https://www.forbes.com/lists/best-large-employers/.Story continuesAmeriprise Financial Services, LLC is an Equal Opportunity Employer.Ameriprise Financial cannot guarantee future financial results.Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser.Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC.© 2024 Ameriprise Financial, Inc. All rights reserved.View source version on businesswire.com: https://www.businesswire.com/news/home/20240226166563/en/ContactsStephanie Siegle, Media Relations612.671.2593Stephanie.Siegle@ampf.com

Business Wire

Ameriprise Financial Recognized by Forbes as One of "America’s Best Large Employers" for the Fourth Year in a Row

https://finance.yahoo.com/news/ameriprise-financial-recognized-forbes-one-202100374.html

34cc56aa-d86b-36b1-ad41-6e7953e23e04

AMP

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.Is This 1 Momentum Stock a Screaming Buy Right Now?Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.Ameriprise Financial Services (AMP)Headquartered in Minneapolis, MN, Ameriprise Financial, Inc. was founded in 1894 under the name Investors Syndicate. Notably, since 2005-end, Ameriprise has been operating independently of American Express Company. As of Dec 31, 2023, the company owned, managed and administered assets worth $1.36 trillion.AMP boasts a Momentum Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Ameriprise Financial Services has seen some interesting price action recently; the stock is up 0.9% over the past one week and up 5.1% over the past four weeks. And in the last one-year period, AMP has gained 19%. As for the stock's trading volume, 376,396.31 shares on average were traded over the last 20 days.Momentum investors don't just pay attention to price changes; positive earnings play a crucial role, too. Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.77 to $34.12 per share. AMP boasts an average earnings surprise of 1.5%.Story continuesInvestors should take the time to consider AMP for their portfolios due to its solid Zacks Ranks, notable earnings metrics, and impressive Momentum and VGM Style Scores.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 reportAmeriprise Financial, Inc. (AMP) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Ameriprise Financial Services (AMP) is a Top Momentum Stock for the Long-Term

https://finance.yahoo.com/news/why-ameriprise-financial-services-amp-145012757.html

f32f5242-3260-39c2-a20a-152008cd58a4

AMP

Virtus Investment Partners VRTS shares rallied 8.1% in the last trading session to close at $245.63. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.2% loss over the past four weeks.Virtus Investment Partners touched a new 52-week high in last day’s trading session. Given that investors are looking for better investment options in order to get higher yields, asset managers are expected to witness inflows, which will likely positively impact their top lines. This, along with the Federal Reserve’s affirmation of rate cuts this year has probably made investors bullish on the VRTS stock.This asset management company is expected to post quarterly earnings of $5.38 per share in its upcoming report, which represents a year-over-year change of +28.1%. Revenues are expected to be $202.92 million, up 14.7% from the year-ago quarter.Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.For Virtus, the consensus EPS estimate for the quarter has been revised 3.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on VRTS going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Virtus belongs to the Zacks Financial - Investment Management industry. Another stock from the same industry, Ameriprise Financial Services AMP, closed the last trading session 0.7% higher at $415.47. Over the past month, AMP has returned 6.3%.Ameriprise's consensus EPS estimate for the upcoming report has changed +0.5% over the past month to $8.10. Compared to the company's year-ago EPS, this represents a change of +11.7%. Ameriprise currently boasts a Zacks Rank of #3 (Hold).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 reportVirtus Investment Partners, Inc. (VRTS) : Free Stock Analysis ReportAmeriprise Financial, Inc. (AMP) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Virtus (VRTS) Soars 8.1%: Is Further Upside Left in the Stock?

https://finance.yahoo.com/news/virtus-vrts-soars-8-1-130100678.html

e0bf1192-52cd-39fa-970d-aa47b9123706

AMT

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

AMT

American Tower Corporation AMT is scheduled to release fourth-quarter and full-year 2023 results on Feb 27 before the opening bell. While the quarterly results are expected to reflect year-over-year growth in revenues, funds from operations (FFO) per share might exhibit a decline.In the last quarter, American Tower reported an adjusted FFO per share of $2.58, beating the consensus mark by 9.79%. The quarterly results reflected better-than-anticipated revenues, aided by improving revenues across its Property segment. American Tower recorded healthy year-over-year organic tenant billings growth of 6.3% and total tenant billings growth of 7.3%.Over the preceding four quarters, the company topped adjusted FFO per share estimates on all occasions, the average beat being 6.42%. The graph below depicts this surprise history:American Tower Corporation Price and EPS SurpriseAmerican Tower Corporation Price and EPS SurpriseAmerican Tower Corporation price-eps-surprise | American Tower Corporation QuoteFactors to NoteAmerican Tower is poised to benefit from its extensive and geographically diversified communication real estate portfolio. The high capital spending by wireless carriers amid growing wireless penetration, accelerated 5G network deployment efforts and spectrum auctions is likely to have kept demand up in the fourth quarter. Long-term leases with its tenants assure stable cash flows.The company’s continued efforts toward macro-tower investments to expand its global footprint and address the demand in these markets bode well for long-term growth.Also, with hybrid IT and multi-cloud access becoming more relevant for continued digital transformation across all workloads, customers are outsourcing to CoreSite’s (an American Tower subsidiary) diverse ecosystem of highly interconnected data center facilities and critical cloud on-ramps.American Tower is anticipated to have carried on with its macro-tower investments during the quarter, backed by a robust balance sheet position.Nonetheless, higher interest expenses are likely to have impaired AMT’s performance to some extent during the quarter. Also, elevated churn in certain markets where the company operates may have been a spoilsport.Story continuesProjectionsThe Zacks Consensus Estimate for quarterly revenues is pegged at $2.73 billion, indicating a rise of 1.03% from the year-ago period’s reported figure.The consensus estimate for operating revenues from the Property segment is pegged at $2.69 billion, indicating growth from $2.64 billion reported in the year-ago period. The consensus mark for operating revenues from the Data Centers is currently pegged at $213.5 million, up from $198.0 million in the year-ago period.However, operating revenues from the Service segment are expected to be on the lower side in the to-be-reported quarter. The Zacks Consensus Estimate stands at $25.32 million, suggesting a fall from $60 million reported in the prior-year quarter.American Tower’s activities during the soon-to-be-reported quarter were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly AFFO per share has been unrevised at $2.18 over the past month. The figure also suggests a decline of 6.84% from the year-ago quarter’s reported figure.For 2023, American Tower anticipated total property revenues in the range of $10,895 -$10,985 million, suggesting a year-over-year improvement of 4.5% at the midpoint, and adjusted EBITDA of $7,010-$7,090 million, calling for a midpoint increase of 6.1%. AMT projected AFFO attributable to AMT common stockholders in the band of $4,540-$4,600 million, implying 1.2% year-over-year growth at the midpoint, and AFFO per share in the range of $9.72-$ 9.85, indicating a marginal rise at the midpoint of 0.3%.For the full year, the Zacks Consensus Estimate for AFFO per share is pegged at $9.79. The figure indicates a 0.31% increase year over year on 3.53% year-over-year growth in revenues to $11.09 billion.Here Is What Our Quantitative Model Predicts:Our proven model does not conclusively predict a surprise in terms of FFO per share for American Tower this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an FFO beat. However, that’s not the case here.American Tower currently carries a Zacks Rank of 2 and has an Earnings ESP of -8.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks That Warrant a LookHere are two stocks from the broader REIT sector — Extra Space Storage Inc. EXR and Park Hotels & Resorts Inc. PK — that you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.Extra Space Storage, scheduled to report quarterly numbers on Feb 27, has an Earnings ESP of +0.70% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.Park Hotels & Resorts, slated to release quarterly numbers on Feb 27, has an Earnings ESP of +1.31% and carries a Zacks Rank of 3 at present.Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAmerican Tower Corporation (AMT) : Free Stock Analysis ReportExtra Space Storage Inc (EXR) : Free Stock Analysis ReportPark Hotels & Resorts Inc. (PK) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

What's in Store for American Tower (AMT) This Earnings Season?

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e3a6bb2d-455a-3dc3-9c53-423ba4d8cdfd

AMT

In this article, we discuss the 10 best edge computing stocks to buy. If you want to skip our discussion on the edge computing market, head over to 5 Best Edge Computing Stocks To Buy. What is Edge Computing? Edge computing focuses on bringing computing power closer to where data is generated, rather than relying on a centralized cloud-based system. In simple terms, edge computing involves relocating a part of storage and computing capabilities from the central data center to close proximity of data sources. Rather than sending raw data to a central facility for analysis, computation is performed at the location where the data is generated and only the computed results, like real-time business insights or equipment maintenance predictions, are transmitted back to the central data center. Devices such as smart speakers, watches, and phones, which engage in edge computing by locally collecting and processing data, are already a part of our daily lives.Contrary to what some may think, edge computing doesn't need a separate "edge network." It can work on single devices or routers. If a separate network is used, 5G is important, offering fast wireless connections. This enables cool applications like autonomous drones, remote surgeries, and smart cities. The edge network is useful when on-site computing is too expensive or complex, but fast responses are needed, and the cloud is too distant. Edge networks enable local computation, allowing devices at the edge (like sensors, cameras, or IoT devices) to process data and make decisions without the need to send all information to a centralized cloud for analysis.The Intelligent Edge aims to provide faster, more reliable, and efficient processing for quicker decision-making and reduced dependence on centralized cloud systems, which may face issues like latency and bandwidth. However, deploying and managing edge computing infrastructures pose challenges due to technological complexity, overwhelming data volume, and interoperability issues. Gartner predicts that by 2026, at least 50% of edge computing deployments will involve machine learning. AI algorithms are well-suited for the data-rich environments of edge computing, enabling quick and accurate analysis of vast data sets. Integrating AI allows edge devices to independently process and act on collected data without constant communication with a central server. This integration enhances decision-making speed, crucial for applications like real-time inventory management or industrial equipment calibration. Story continuesEdge Computing Market Size and Key TrendsAccording to Expert Market Research, the global edge computing market is anticipated to grow significantly from $15.54 billion in 2023 to $147.38 billion by 2032, reflecting a compound annual growth rate (CAGR) of 28.4% during the forecast period of 2024-2032. This growth is attributed to the rise of autonomous vehicles, connected car networks, and the demand for lightweight frameworks and applications to enhance edge computing efficiency, creating numerous market opportunities. PwC expects the global market for edge data centers to nearly triple, reaching $13.5 billion in 2024 from $4 billion in 2017. This growth is driven by the potential of locally located data centers to reduce latency, address intermittent connections, and enable data storage and computation in close proximity to end-users. Edge data centers are growing in popularity due to several key trends. The introduction of 5G is a big factor, as these smaller decentralized centers support high-density 5G applications with low costs and latency, especially in smart-city scenarios. Similarly, the increasing use of IoT devices requires quick data processing at the edge to handle the growing amount of information from sensors in homes and industries. Moreover, the adoption of software-defined networking and virtualization technologies allows software to replace expensive hardware in data centers. Lastly, the demand for video streaming and AR/VR is met by these cost-effective edge data centers, reducing latency and providing good performance for users.Read also: Top 15 Edge Computing Companies in the WorldWhat’s New in the Edge Computing Market? On January 5, 2024, International Business Machines Corporation (NYSE:IBM) disclosed that it is partnering with American Tower Corporation (NYSE:AMT), a global digital infrastructure provider, to accelerate the deployment of a hybrid, multi-cloud computing platform at the edge. This collaboration aims to expand American Tower's Access Edge Data Center ecosystem by integrating IBM Hybrid Cloud capabilities and Red Hat OpenShift. The goal is to help clients address evolving customer requirements and expectations in digital transformation, incorporating technologies like IoT, 5G, AI, and network automation. IBM plans to provide American Tower with a hybrid cloud platform, facilitating the creation of an edge cloud at American Tower's distributed real estate locations. Similarly, on February 5, Ernst & Young announced that it has launched the EY Edge Technologies Lab, aiming to forefront edge ecosystem technologies in digital transformation. This initiative focuses on creating real-time, industry-specific use cases and prototypes for edge-centric solutions, integrating technology seamlessly into business operations. Leveraging EY.ai, a platform combining business experience with AI technology, the Lab demonstrates the advantages of embedding AI at the edge to optimize speed, performance, security, reliability, and resiliency for businesses. The Lab uses Dell NativeEdge and collaborates with Microsoft, PTC, GE Digital, Snowflake, and others to enhance business operations and leverage edge technology efficiently.Some of the best edge computing market leaders to invest in include Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and NVIDIA Corporation (NASDAQ:NVDA). Our Methodology For a list of the best edge computing market leaders, we scanned Insider Monkey’s fourth quarter database of 933 hedge funds and picked 10 companies operating in the edge computing software and hardware services industry with the highest number of hedge funds. These are the best edge computing market leaders to invest in according to hedge funds. 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).Edge Computing Market Size and Best Stocks To BuyA futuristic datacenter with servers and high-tech equipment, signifying the company's cutting-edge digital technology.Edge Computing Market Size and Best Stocks To Buy10. Cloudflare, Inc. (NYSE:NET)Number of Hedge Fund Holders: 44Ranking 10th on our list of edge computing market leaders is Cloudflare, Inc. (NYSE:NET). It is a global cloud services provider offering cloud-based security solutions for different platforms, web and application security products, and performance optimization solutions such as content delivery and load balancing. The company also provides a Secure Access Service Edge (SASE) platform called Cloudflare One, along with network services for connectivity, security, and performance. In Q4 2023, Cloudflare, Inc. (NYSE:NET) reported adjusted earnings per share of 15 cents, surpassing analysts' expectations of 12 cents. The company's revenue for the quarter was $362.5 million, reflecting a 32% year-over-year increase and beating the anticipated $353 million. Cloudflare achieved record operating cash flow at $85.4 million, equivalent to 24% of total revenue, and set a quarterly free cash flow record at $50.7 million, representing 14% of total revenue.According to Insider Monkey’s fourth quarter database, 44 hedge funds were long Cloudflare, Inc. (NYSE:NET), compared to 37 funds in the prior quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the largest stakeholder of the company, with 2 million shares worth $165.4 million. Like Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and NVIDIA Corporation (NASDAQ:NVDA), Cloudflare, Inc. (NYSE:NET) is one of the edge computing market leaders to watch. Baron Fifth Avenue Growth Fund stated the following regarding Cloudflare, Inc. (NYSE:NET) in its fourth quarter 2023 investor letter:“Most of our portfolio companies have seen stabilization and modest improvements in short-term business fundamentals as the year progressed. More importantly in our view, many have been able to drive significant improvement in long-term Key Performance Indicators (KPIs) such as share gains, meaningful expansion of their total addressable market, and improvement in unit economics. These KPIs are significantly more important in driving the intrinsic values of our businesses, which we believe have increased noticeably during 2023. In the meantime, disruptive changes that we expect will benefit many of our businesses have also continued to pick up steam. Some examples include: • Another example is the leading cloud networking and cybersecurity solution provider, Cloudflare, Inc. (NYSE:NET), who described market share gains and customers consolidating from multiple point solutions to Cloudflare’s platform: “And so we’re the one vendor that is able to give people that vendor consolidation, that single pane of glass… that comes through in a lot of customer examples…. People want to buy the entire Cloudflare platform. They want to protect their entire business with that, and that’s driving more interest in both our network security, as well as our Zero Trust products.”9. International Business Machines Corporation (NYSE:IBM)Number of Hedge Fund Holders: 50International Business Machines Corporation (NYSE:IBM) ranks 9th on our list of edge computing market leaders. It provides integrated solutions and services globally through its Software, Consulting, Infrastructure, and Financing segments. IBM focuses on hybrid cloud and AI platforms, consulting for different industries, and offers on-premises and cloud-based infrastructure solutions. International Business Machines Corporation (NYSE:IBM) is one of the top edge computing market leaders. On January 30, International Business Machines Corporation (NYSE:IBM) declared a quarterly dividend of $1.66 per share, in line with previous. The dividend is payable on March 9, to shareholders on record as of February 9. According to Insider Monkey’s fourth quarter database, 50 hedge funds were bullish on International Business Machines Corporation (NYSE:IBM), compared to 53 funds in the earlier quarter. Ken Griffin’s Citadel Investment Group is the leading stakeholder of the company, with 1.45 million shares worth $238.5 million. Diamond Hill Long-Short Fund made the following comment about International Business Machines Corporation (NYSE:IBM) in its Q4 2022 investor letter:“New positions initiated in Q4 included shorts International Business Machines Corporation (NYSE:IBM), Acushnet Holdings (GOLF) and elf Beauty (ELF). Since diversified information technology company IBM’s 2019 acquisition of Red Hat, the company has aggressively pursued a hybrid cloud strategy. Though IBM and its new management team have made solid progress on this pivot, we believe the company still meaningfully lags the cloud hyperscalers and other cloud-native companies. Management has also laid out aggressive long-term targets for revenue growth and free cash flow, both of which we believe the company will struggle to achieve as it faces intense competition in its hybrid cloud business and structural headwinds in the company’s legacy businesses.”8. Hewlett Packard Enterprise Company (NYSE:HPE)Number of Hedge Fund Holders: 50Hewlett Packard Enterprise Company (NYSE:HPE) provides data solutions globally through Compute, HPC & AI, Storage, Intelligent Edge, Financial Services, and Corporate Investments segments. Their offerings include servers, storage products, edge systems, networking solutions, and related services. Hewlett Packard Enterprise Company (NYSE:HPE) ranks 8th on our list of the edge computing market leaders. On February 27, Hewlett Packard Enterprise Company (NYSE:HPE) CEO Antonio Neri mentioned that the company is manufacturing some of its servers in the Middle East to enhance supply chain resilience and meet growing demand. The decision is not solely driven by geopolitical factors but also aims to address potential disruptions caused by natural disasters. According to Insider Monkey’s fourth quarter database, 50 hedge funds were bullish on Hewlett Packard Enterprise Company (NYSE:HPE), compared to 47 funds in the prior quarter. Cliff Asness’ AQR Capital Management is the largest stakeholder of the company, with 14.6 million shares worth $248 million. 7. Accenture plc (NYSE:ACN)Number of Hedge Fund Holders: 58Accenture plc (NYSE:ACN) is next on our list of the edge computing market leaders. It is a global professional services company that offers application services, intelligent automation, software engineering, data and analytics, metaverse, sustainability, change management, HR transformation, digital commerce, infrastructure services, technology consulting, engineering and R&D digitization, business process outsourcing, and other technology-related services. Accenture plc (NYSE:ACN) is one of the top edge computing market leaders. On December 19, Accenture plc (NYSE:ACN) reported financial results for the first quarter of fiscal 2024 ending November 30, 2023. The company posted a Non-GAAP EPS of $3.27, beating market estimates by $0.14. The revenue of $16.2 billion was in-line with Street consensus. According to Insider Monkey’s fourth quarter database, 58 hedge funds were long Accenture plc (NYSE:ACN), compared to 55 funds in the prior quarter. GuardCap Asset Management is the largest stakeholder of the company, with 1.74 million shares worth $610.6 million. ClearBridge International Growth EAFE Strategy stated the following regarding Accenture plc (NYSE:ACN) in its fourth quarter 2023 investor letter:“Another welcome change has been the recognition of generative artificial intelligence (AI) opportunities for companies outside the U.S. While our IT holdings trailed their mega cap U.S. counterparts for most of the year, semiconductor equipment makers ASML and Tokyo Electron, which we consider enablers of AI, as well as enterprise software maker SAP and IT consultant Accenture plc (NYSE:ACN), which we see as facilitators of AI adoption in new product lines and/or enhanced business models, rose strongly in the quarter. These companies are rolling out new, AI-enhanced products at higher prices which should positively impact earnings in the near term.”6. Arista Networks, Inc. (NYSE:ANET)Number of Hedge Fund Holders: 64Arista Networks, Inc. (NYSE:ANET) specializes in developing, marketing, and selling data-driven networking solutions for data center and cloud networking, including AI-driven ethernet switching platforms, campus wired and wireless products, and routing systems. The company serves diverse industries such as internet companies, service providers, financial services, government agencies, media, and telecommunications. Arista Networks, Inc. (NYSE:ANET) ranks 6th on our list of edge computing market leadersOn February 12, Arista Networks, Inc. (NYSE:ANET) reported Q4 non-GAAP earnings per share of $2.08, exceeding Wall Street estimates by $0.37. The revenue increased 20.3% year-over-year to $1.54 billion, in-line with market consensus. According to Insider Monkey’s fourth quarter database, 64 hedge funds were bullish on Arista Networks, Inc. (NYSE:ANET), compared to 59 funds in the prior quarter. Steve Cohen’s Point72 Asset Management is the biggest stakeholder of the company, with 833,408 shares worth $196.2 million. In addition to Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and NVIDIA Corporation (NASDAQ:NVDA), Arista Networks, Inc. (NYSE:ANET) is one of the notable edge computing market leaders. Giverny Capital Asset Management stated the following regarding Arista Networks, Inc. (NYSE:ANET) in its fourth quarter 2023 investor letter:“We did a bit of portfolio sculpting during the year, with mixed results. We trimmed Arista Networks, Inc. (NYSE:ANET) several times during the year as it soared. Those trims, a very small one in March at roughly $163 and a larger one in August at $183, don’t look smart with Arista finishing the year at $235 (and up more in January). Arista rose 94% this year. The good news is, Arista finished the year as our second largest holding, at 7.9% of the portfolio.If you are wondering how I could sell some Arista at $163 but then hold most of it at $235, the answer is that Arista’s outstanding competitive position in Artificial Intelligence became clearer to me as the year progressed. I felt in March that Arista would earn $8 per share in a few years. I see today that it might earn $8 in 2025.It’s possible there is AI-related froth in the Arista stock price, but also probable that Arista will continue to grow rapidly as the computing centers that process AI queries require enormous amounts of data bandwidth. I believe Arista’s routers and switches are the best tools for routing so-called hyperscale traffic. Also, its operating software allows computer giants to manage the kudzu-like growth of their data centers, lowering their total cost of operation.The sales of both Arista and Heico reflected my desire to manage PE multiple risk. I keep learning the hard way, however, that trimming your winners generally doesn’t add value. If the valuation is beyond justification, sell the position. If the valuation is high but the business continues to dominate its niche, grow steadily and add value for customers, maybe just take a walk around the block until the urge to sell goes away.”   Click to continue reading and see 5 Best Edge Computing Stocks To Buy.    Suggested articles:16 Best Future Stocks For The Long Term15 Best Stocks to Buy According to Billionaire D.E. Shaw25 Countries with Developing Economies but Slow Growth Rates Disclosure: None. Edge Computing Market Size and Best Stocks To Buy is originally published on Insider Monkey.

Insider Monkey

Edge Computing Market Size and Best Stocks To Buy

https://finance.yahoo.com/news/edge-computing-market-size-best-175948424.html

6daa732c-3c4f-3559-8280-730da2e5408a

AMT

In the latest market close, American Tower (AMT) reached $206.75, with a -0.27% movement compared to the previous day. 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 wireless communications infrastructure company's stock has climbed by 6.62% in the past month, exceeding the Finance sector's gain of 4.89% and the S&P 500's gain of 2.7%.The upcoming earnings release of American Tower will be of great interest to investors. In that report, analysts expect American Tower to post earnings of $2.51 per share. This would mark a year-over-year decline of 1.18%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.8 billion, indicating a 1.2% increase compared to the same quarter of the previous year.For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.27 per share and a revenue of $11.21 billion, signifying shifts of +4.05% and +0.56%, respectively, from the last year.It's also important for investors to be aware of any recent modifications to analyst estimates for American Tower. These recent revisions tend to reflect the evolving nature of short-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 shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.71% higher. At present, American Tower boasts a Zacks Rank of #3 (Hold).Story continuesFrom a valuation perspective, American Tower is currently exchanging hands at a Forward P/E ratio of 20.18. This denotes a premium relative to the industry's average Forward P/E of 11.31.One should further note that AMT currently holds a PEG ratio of 1.41. 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. The REIT and Equity Trust - Other was holding an average PEG ratio of 2.4 at yesterday's closing price.The REIT and Equity Trust - Other industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 147, positioning it in the bottom 42% of all 250+ industries.The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.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 Tower Corporation (AMT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

American Tower (AMT) Declines More Than Market: Some Information for Investors

https://finance.yahoo.com/news/american-tower-amt-declines-more-221519195.html

d092c09e-680e-3972-933f-d6dd57ad4e5c

AMZN

If you’ve ever wanted an example of how creaky and cumbersome the ancient Dow Jones Industrial Average (^DJI) has become compared with modern market metrics, take a look at this week’s Dow triple play involving Walmart (WMT), Walgreens (WBA), and Amazon (AMZN).On Monday, the Dow replaced Walgreens with Amazon in reaction to Walmart splitting its stock 3-for-1.That split, for reasons we’ll get to in a bit, reduced Walmart’s weight in the average — yes, the Dow is an average, not an index — by two-thirds.Adding Amazon to the Dow, the folks at S&P Dow Jones Indices say, was done to keep retail companies’ weight in the average from falling sharply because of Walmart’s stock split.Because the Dow has only 30 stocks, adding Amazon meant one of the other components had to go. So Walgreens Boots Alliance, which had the lowest weight in the Dow, got the boot and lost its alliance.Walgreens being booted from the Dow isn’t exactly a surprise because its share price has fallen around 60% since being added to the average in June 2018, while the Dow has risen about 60%.Had Walgreens kept pace with the other 29 components, the Dow would be about 400 points higher than it is. With the Dow near 40,000, it’s easy to see what little impact even an at-pace Walgreens would have made.Amazon, by contrast, has been a hot stock, one of the so-called "Magnificent Seven" that accounted for the bulk of the stock market’s gains last year.Walgreens’ Dow tenure lasted less than six years — an extraordinarily short time for a market metric that doesn’t change its component stocks very often.But its exit, S&P Dow Jones Indices senior analyst Howard Silverblatt insisted to me, isn’t because Walgreens has slumped and Amazon has soared.“We think it’s a better fit,” Silverblatt said. “We’re not saying it’s a better investment.”Or, as Silverblatt put it on Yahoo Finance Live, Amazon will help the Dow stay “relevant.”Now, a key question: will being added to the Dow be good for Amazon’s stock price?Story continuesMy answer, which may surprise you, is no. Based on conversations I’ve had with market mavens over the years, I don’t think that being added to the Dow will make the slightest difference for Amazon shareholders. Just as Walgreens being kicked out won’t make any difference to Walgreens shareholders.How can I say that when the Dow is such a popular market metric?It’s because although the Dow has great mindshare, it has almost no financial market share compared with the hugely influential S&P 500 Index (^GSPC).Let me explain.The Dow is calculated based on the share prices of its 30 components. That’s why today’s three-for-one split, which reduced Walmart’s share price by two-thirds, reduced its weight in the Dow by two-thirds.New York Stock Exchange Chairman Richard Grasso (L) and New York City Mayor Rudy Giuliani (R) wear "Dow 10,000" hats on March 29, 1999. (HENNY RAY ABRAMS/AFP via Getty Images) (HENNY RAY ABRAMS via Getty Images)The S&P, on the other hand, measures companies by their total stock market value, not their nominal share price. That’s a much better way to reflect value than using share prices, which — as Walmart’s split shows — can fall substantially overnight even though nothing about the company has changed.So the Dow needs to go through contortions to offset the impact of Walmart’s stock split while the S&P 500 does nothing. Walmart’s market capitalization is still around $472 billion, and that’s what counts.The reason the Dow and the S&P are calculated so differently is age. The Dow was founded in 1896, when computers didn’t exist, and communication was glacial. Share prices were a quick and simple way to measure. The S&P 500, founded 61 years later, is a product of and for modern markets.Read more: How to start investing in 2024: A step-by-step guideThis difference in calculation methodology is why a whopping $5.75 trillion of investor money is indexed to the S&P, according to Howard Silverblatt, but only $87 billion — a minuscule 1.5% as much — is indexed to the Dow.Being added to the S&P has a big impact on a company’s share price because so much index money flows into it. And being dropped from the S&P hurts because all that index money flows out.However, so little money (relatively speaking) is indexed to the Dow that being added to it or dropped out of it has no impact, hence why being added to the Dow won’t make any difference to Amazon’s share price.One more impact of the Walgreens-Walmart-Amazon triple play: Through Friday, each dollar change in any Dow component moved the average by about 6.59 points. Monday’s number is different.That’s because at Monday’s opening, the total share price of the 30 Dow components is different from the number at Friday’s close.So the Dowfolk had to tweak something called the Dow Divisor, which as of Friday was a wonderfully precise 0.15172752595384 and is equally precise today. Divide one by the divisor, and you see how much each dollar change in any Dow component moves the Dow.The history of how the Dow Divisor came to be and how to tweak it to create your very own Dow is a lot of fun for those of us who like numbers.But that’s a subject for another day.Allan Sloan is an award-winning financial journalist and contributor to Yahoo Finance.Click here for in-depth analysis of the latest stock market news and events moving stock prices.Read the latest financial and business news from Yahoo Finance

Yahoo Finance

The Dow's Amazon-Walmart-Walgreens shakeup is a reminder why it's no longer the benchmark

https://finance.yahoo.com/news/the-dows-amazon-walmart-walgreens-shakeup-is-a-reminder-why-its-no-longer-the-benchmark-133053480.html

fdfebd5b-aef8-4e4e-84f6-4a2f8432634a

AMZN

The Federal Trade Commission sued to block Kroger’s bid for rival Albertsons, throwing into uncertainty the fate of one of the largest supermarket deals in history.Continue reading

The Wall Street Journal

FTC Sues to Block $25 Billion Kroger-Albertsons Merger

https://finance.yahoo.com/m/6b2c1980-f305-3ddd-91fb-3feb7f7fea54/ftc-sues-to-block-25-billion.html

6b2c1980-f305-3ddd-91fb-3feb7f7fea54

AMZN

Cue bubble warnings on Wall and Broad.The market’s relentless rally has pushed the S&P 500 up nearly 25% from its October lows, fueled by gains in only a handful of stocks.Leading the charge is AI favorite Nvidia (NVDA). The chipmaker has gained more than 80% since the start of the year, helping drive the S&P 500 (^GSPC) and Nasdaq (^IXIC) to record levels.The concentrated outperformance has prompted some on Wall Street to warn the rally has gone too far and declare stocks are in bubble territory.Market concentration has surged to a multi-decade high. The 10 largest US stocks now account for 33% of the S&P 500 market cap and 25% of S&P 500 earnings, according to Goldman Sachs data.But concerns over narrow market participation and frothiness may be misguided. In the last week, several top Wall Street strategists made it clear on Yahoo Finance’s "Morning Brief" that there’s reason to believe the market will keep going up."This might be the best sell-side trick out there right now. … I don't think that's justified," Citi US equity strategy director Drew Pettit said of the bubble fear on Yahoo Finance Live. "It’s actually a lot healthier than people are giving it credit for."Strong quarterly results from Big Tech have bolstered the bull case. Nvidia posted another blowout quarter thanks to surging AI demand, while Meta (META), Microsoft (MSFT), and Amazon (AMZN) topped expectations.Higher profit margins and proven returns are two reasons Wedbush analyst Dan Ives describes the current market environment as a "1995 moment" rather than comparing it to the start of the dot-com bubble."This is nowhere near the 1999/2000 period in our view as the sky high valuations, lack of monetization/ infrastructure, weak balance sheets, froth business models, and macro backdrop was in a totally different world back then compared to what we see today," Ives wrote in a note to clients.Story continuesCiti's head of US semiconductor research Chris Danely echoed Ives’s bullish view on tech, telling Yahoo Finance he "doesn’t see any end in sight.""We've got a long way to go until we're going to start ringing the alarm bells or even hear a tinkling of bells," Danely told Yahoo Finance Live.Beyond tech and beneath the surface, underlying trends are positive. Market breadth — an indication of bullish sentiment — has slowly started to improve. The S&P 500 equal weight index (^SPXEW) and small caps outperformed the S&P 500 over the past month."The broadening out we’re seeing is happening in a stealthy way," Charles Schwab’s Liz Ann Sonders told Yahoo Finance, adding that churn under the surface is "not a bad thing."And, it’s important to note, history says elevated concentration isn’t necessarily indicative of a market top. Goldman Sachs analyzed market concentrations spanning the past 100 years and found the S&P 500 rallied more often than not following past concentration peaks."One consistent pattern around periods of elevated concentration is large swings in Momentum," Goldman Sachs equity analyst Ben Snider wrote in a note to clients. "While the performance of the high Momentum leaders was inconsistent, the previous laggards appreciated in absolute terms in every episode. This supports our view that a "catch up" by laggards is more likely to interrupt the ongoing Momentum rally than a 'catch down' by the recent market leaders."Correction: A previous version of this article misspelled the name of Citi strategy director Drew Pettit. We regret the error.Seana Smith is an anchor at Yahoo Finance. Follow Smith on Twitter @SeanaNSmith. Tips on deals, mergers, activist situations, or anything else? Email seanasmith@yahooinc.com.Click here for in-depth analysis of the latest stock market news and events moving stock prices.Read the latest financial and business news from Yahoo Finance

Yahoo Finance

Stock bubble fears are overblown despite 'Magnificent 7' rally: Wall Street analysts

https://finance.yahoo.com/news/stock-bubble-fears-are-overblown-despite-magnificent-7-rally-wall-street-analysts-080954768.html

1857a06f-33af-4efb-bd7b-5ad1d525f2ec

AMZN

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

ANET

Verizon Communications Inc. VZ recently announced its intention to team up with KDDI Corporation to provide innovative connected car capabilities to AFEELA's first mass-production electric vehicles (EVs) in the United States. AFEELA is a brand of Sony Honda Mobility (SHM), which was established by Sony and Honda for the development of EVs. AFEELA is an advanced software-defined EV that features pioneering sensing technology coupled with AI functionalities and connected features.Japan-based telecom operator KDDI is a major telecommunications company that offers a robust range of services, including mobile communication, fixed-line communication and Internet services. The company collaborates with other telecommunications companies and industry partners to augment its service portfolio and explore new investment opportunities.The integration of Verizon's robust 5G and 4G LTE networks with KDDI's Global Communications Platform is aimed at providing AFEELA vehicles with high-class cellular connectivity and advanced mobility features. SHM perceives AFEELA as more than just an EV by promoting an interactive relationship between mobility and its users with the help of sensing and network IT technologies. The vehicle is slated to launch in 2025, with deliveries starting in North America in spring 2026.The strategic collaboration is likely to harness the power of Verizon’s 5G network to shape the future telematics and connectivity services in the United States' automotive industry. The initiative will aid the company in solidifying its portfolio against other players in the telecom market.Based in New York, Verizon was formed through the merger of Bell Atlantic and GTE Corp. The company offers communication services in the form of local phone service, long-distance, wireless and data services.Verizon’s performance is gaining from significant 5G adoption and wireless traction. It is offering various mix-and-match pricing in both wireless and home broadband plans, which has led to solid client additions. Focus on emerging growth services like cloud, security and professional services will likely reap long-term benefits. Its’ mmWave footprint delivers game-changing experiences for the densest parts of the network. However, lower wireline and wireless equipment revenues are major concerns.Verizon currently carries a Zacks Rank #3 (Hold).The stock has gained 4.6% in the past year compared with the industry’s rise of 1.3%.Story continuesZacks Investment ResearchImage Source: Zacks Investment ResearchStocks to ConsiderInterDigital, 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%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.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.Arista Networks, Inc. ANET , carrying a Zacks Rank #2 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has delivered an earnings surprise of 13.28%, on average, in the trailing four quarters.The company holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. It is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.Ubiquiti Inc. UI, carrying a Zacks Rank #2 at present, is a key pick in the broader industry. Headquartered in New York, it offers a comprehensive portfolio of networking products and solutions for service providers and enterprises at disruptive prices.It boasts a proprietary network communication platform that is well-equipped to meet end-market customer needs. In addition, it is committed to reducing operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information by leveraging the strength of the Ubiquiti Community.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 reportVerizon Communications Inc. (VZ) : Free Stock Analysis ReportInterDigital, Inc. (IDCC) : Free Stock Analysis ReportArista Networks, Inc. (ANET) : Free Stock Analysis ReportUbiquiti Inc. (UI) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Verizon (VZ) & KDDI to Offer Cellular Connectivity to AFEELA

https://finance.yahoo.com/news/verizon-vz-kddi-offer-cellular-141400035.html

0fc2ed70-6371-3ecb-a1d1-eb4b6ca0218e

ANET

ADTRAN Inc. ADTN announced that Vodafone Turkey has selected ADTRAN Oscilloquartz optical cesium atomic clock technology to ensure ultra-reliable synchronization for the nationwide network services. The suite of solutions encompasses Oscilloquartz OSA 3350 ePRC+™, which is integrated with Vodafone’s existing core grandmaster clocks Oscilloquartz OSA 5440 and OSA 5430.Leveraging optical pumping technology, the OSA 3350 ePRC+ offers high-performance frequency stability and effectively matches the rising demand for scalable and intelligent timing requirements for synchronized networks. Its modular design also includes a vast array of synchronization output interfaces that ensure efficient and secured network management.GNSS (Global Navigation Satellite System) is a crucial element for communication service providers and any GNSS disruption caused by natural disasters or signal interference can significantly impact the operation of communication services. 5G networks are heavily dependent on timing precisions and synchronization offered by GNSS for optimal performance.Many real-time communication applications can face difficulties due to delays in data transmission, while network resilience may be compromised, leaving networks vulnerable to cyberattacks. Moreover, interruptions in GNSS signals can also hinder the functionalities of IoT devices. All these issues can severely affect end-user experience.ADTRAN’s Oscilloquartz ePRTC+™ technology brings long-term stability and delivers critical timing services during periods of GNSS unavailability. The solution offers 100 nanoseconds holdover for at least 45 days and even up to 55 days. It enhances protection for synchronization inputs and offers greater durability compared to other high-performance magnetic cesium clocks available. The integration of ADTN’s grandmaster GNSS receivers with OSA 3350 ePRC+™ brings seamless and uninterrupted mobile services to customers, even in the most challenging situations.ADTRAN continues to benefit from solid demand trends for its network solutions, driven by the accelerated expansion of fiber-to-the-home networks, upgrades to in-home Wi-Fi connectivity and the adoption of cloud-based automation tools. The company’s end-to-end solutions simplify the deployment of fiber-based broadband services and provide a better customer experience.It is focused on being a top global supplier of access infrastructure and related value-added solutions from the Cloud Edge to the Subscriber Edge through a broad portfolio of flexible hardware and software network solutions. These products enable a seamless transition to the fully converged, scalable, highly automated, cloud-controlled voice, data, Internet and video networks of the future.The stock has lost 65.1% in the past year against the industry’s growth of 25.4%.Story continuesZacks Investment ResearchImage Source: Zacks Investment ResearchZacks Rank & Key PicksADTRAN 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.Arista Networks, Inc. ANET, carrying a Zacks Rank #2 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has delivered an earnings surprise of 13.28%, on average, in the trailing four quarters.The company holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. It is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.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 reportADTRAN Holdings, Inc. (ADTN) : Free Stock Analysis ReportNVIDIA Corporation (NVDA) : Free Stock Analysis ReportInterDigital, Inc. (IDCC) : Free Stock Analysis ReportArista Networks, Inc. (ANET) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

ADTRAN (ADTN) Solution Boosts Vodafone Turkey's Network Services

https://finance.yahoo.com/news/adtran-adtn-solution-boosts-vodafone-161600456.html

fd7c9c75-cf81-3e4d-873a-e19069b54be3

ANET

In this article, we discuss the 10 best edge computing stocks to buy. If you want to skip our discussion on the edge computing market, head over to 5 Best Edge Computing Stocks To Buy. What is Edge Computing? Edge computing focuses on bringing computing power closer to where data is generated, rather than relying on a centralized cloud-based system. In simple terms, edge computing involves relocating a part of storage and computing capabilities from the central data center to close proximity of data sources. Rather than sending raw data to a central facility for analysis, computation is performed at the location where the data is generated and only the computed results, like real-time business insights or equipment maintenance predictions, are transmitted back to the central data center. Devices such as smart speakers, watches, and phones, which engage in edge computing by locally collecting and processing data, are already a part of our daily lives.Contrary to what some may think, edge computing doesn't need a separate "edge network." It can work on single devices or routers. If a separate network is used, 5G is important, offering fast wireless connections. This enables cool applications like autonomous drones, remote surgeries, and smart cities. The edge network is useful when on-site computing is too expensive or complex, but fast responses are needed, and the cloud is too distant. Edge networks enable local computation, allowing devices at the edge (like sensors, cameras, or IoT devices) to process data and make decisions without the need to send all information to a centralized cloud for analysis.The Intelligent Edge aims to provide faster, more reliable, and efficient processing for quicker decision-making and reduced dependence on centralized cloud systems, which may face issues like latency and bandwidth. However, deploying and managing edge computing infrastructures pose challenges due to technological complexity, overwhelming data volume, and interoperability issues. Gartner predicts that by 2026, at least 50% of edge computing deployments will involve machine learning. AI algorithms are well-suited for the data-rich environments of edge computing, enabling quick and accurate analysis of vast data sets. Integrating AI allows edge devices to independently process and act on collected data without constant communication with a central server. This integration enhances decision-making speed, crucial for applications like real-time inventory management or industrial equipment calibration. Story continuesEdge Computing Market Size and Key TrendsAccording to Expert Market Research, the global edge computing market is anticipated to grow significantly from $15.54 billion in 2023 to $147.38 billion by 2032, reflecting a compound annual growth rate (CAGR) of 28.4% during the forecast period of 2024-2032. This growth is attributed to the rise of autonomous vehicles, connected car networks, and the demand for lightweight frameworks and applications to enhance edge computing efficiency, creating numerous market opportunities. PwC expects the global market for edge data centers to nearly triple, reaching $13.5 billion in 2024 from $4 billion in 2017. This growth is driven by the potential of locally located data centers to reduce latency, address intermittent connections, and enable data storage and computation in close proximity to end-users. Edge data centers are growing in popularity due to several key trends. The introduction of 5G is a big factor, as these smaller decentralized centers support high-density 5G applications with low costs and latency, especially in smart-city scenarios. Similarly, the increasing use of IoT devices requires quick data processing at the edge to handle the growing amount of information from sensors in homes and industries. Moreover, the adoption of software-defined networking and virtualization technologies allows software to replace expensive hardware in data centers. Lastly, the demand for video streaming and AR/VR is met by these cost-effective edge data centers, reducing latency and providing good performance for users.Read also: Top 15 Edge Computing Companies in the WorldWhat’s New in the Edge Computing Market? On January 5, 2024, International Business Machines Corporation (NYSE:IBM) disclosed that it is partnering with American Tower Corporation (NYSE:AMT), a global digital infrastructure provider, to accelerate the deployment of a hybrid, multi-cloud computing platform at the edge. This collaboration aims to expand American Tower's Access Edge Data Center ecosystem by integrating IBM Hybrid Cloud capabilities and Red Hat OpenShift. The goal is to help clients address evolving customer requirements and expectations in digital transformation, incorporating technologies like IoT, 5G, AI, and network automation. IBM plans to provide American Tower with a hybrid cloud platform, facilitating the creation of an edge cloud at American Tower's distributed real estate locations. Similarly, on February 5, Ernst & Young announced that it has launched the EY Edge Technologies Lab, aiming to forefront edge ecosystem technologies in digital transformation. This initiative focuses on creating real-time, industry-specific use cases and prototypes for edge-centric solutions, integrating technology seamlessly into business operations. Leveraging EY.ai, a platform combining business experience with AI technology, the Lab demonstrates the advantages of embedding AI at the edge to optimize speed, performance, security, reliability, and resiliency for businesses. The Lab uses Dell NativeEdge and collaborates with Microsoft, PTC, GE Digital, Snowflake, and others to enhance business operations and leverage edge technology efficiently.Some of the best edge computing market leaders to invest in include Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and NVIDIA Corporation (NASDAQ:NVDA). Our Methodology For a list of the best edge computing market leaders, we scanned Insider Monkey’s fourth quarter database of 933 hedge funds and picked 10 companies operating in the edge computing software and hardware services industry with the highest number of hedge funds. These are the best edge computing market leaders to invest in according to hedge funds. 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).Edge Computing Market Size and Best Stocks To BuyA futuristic datacenter with servers and high-tech equipment, signifying the company's cutting-edge digital technology.Edge Computing Market Size and Best Stocks To Buy10. Cloudflare, Inc. (NYSE:NET)Number of Hedge Fund Holders: 44Ranking 10th on our list of edge computing market leaders is Cloudflare, Inc. (NYSE:NET). It is a global cloud services provider offering cloud-based security solutions for different platforms, web and application security products, and performance optimization solutions such as content delivery and load balancing. The company also provides a Secure Access Service Edge (SASE) platform called Cloudflare One, along with network services for connectivity, security, and performance. In Q4 2023, Cloudflare, Inc. (NYSE:NET) reported adjusted earnings per share of 15 cents, surpassing analysts' expectations of 12 cents. The company's revenue for the quarter was $362.5 million, reflecting a 32% year-over-year increase and beating the anticipated $353 million. Cloudflare achieved record operating cash flow at $85.4 million, equivalent to 24% of total revenue, and set a quarterly free cash flow record at $50.7 million, representing 14% of total revenue.According to Insider Monkey’s fourth quarter database, 44 hedge funds were long Cloudflare, Inc. (NYSE:NET), compared to 37 funds in the prior quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the largest stakeholder of the company, with 2 million shares worth $165.4 million. Like Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and NVIDIA Corporation (NASDAQ:NVDA), Cloudflare, Inc. (NYSE:NET) is one of the edge computing market leaders to watch. Baron Fifth Avenue Growth Fund stated the following regarding Cloudflare, Inc. (NYSE:NET) in its fourth quarter 2023 investor letter:“Most of our portfolio companies have seen stabilization and modest improvements in short-term business fundamentals as the year progressed. More importantly in our view, many have been able to drive significant improvement in long-term Key Performance Indicators (KPIs) such as share gains, meaningful expansion of their total addressable market, and improvement in unit economics. These KPIs are significantly more important in driving the intrinsic values of our businesses, which we believe have increased noticeably during 2023. In the meantime, disruptive changes that we expect will benefit many of our businesses have also continued to pick up steam. Some examples include: • Another example is the leading cloud networking and cybersecurity solution provider, Cloudflare, Inc. (NYSE:NET), who described market share gains and customers consolidating from multiple point solutions to Cloudflare’s platform: “And so we’re the one vendor that is able to give people that vendor consolidation, that single pane of glass… that comes through in a lot of customer examples…. People want to buy the entire Cloudflare platform. They want to protect their entire business with that, and that’s driving more interest in both our network security, as well as our Zero Trust products.”9. International Business Machines Corporation (NYSE:IBM)Number of Hedge Fund Holders: 50International Business Machines Corporation (NYSE:IBM) ranks 9th on our list of edge computing market leaders. It provides integrated solutions and services globally through its Software, Consulting, Infrastructure, and Financing segments. IBM focuses on hybrid cloud and AI platforms, consulting for different industries, and offers on-premises and cloud-based infrastructure solutions. International Business Machines Corporation (NYSE:IBM) is one of the top edge computing market leaders. On January 30, International Business Machines Corporation (NYSE:IBM) declared a quarterly dividend of $1.66 per share, in line with previous. The dividend is payable on March 9, to shareholders on record as of February 9. According to Insider Monkey’s fourth quarter database, 50 hedge funds were bullish on International Business Machines Corporation (NYSE:IBM), compared to 53 funds in the earlier quarter. Ken Griffin’s Citadel Investment Group is the leading stakeholder of the company, with 1.45 million shares worth $238.5 million. Diamond Hill Long-Short Fund made the following comment about International Business Machines Corporation (NYSE:IBM) in its Q4 2022 investor letter:“New positions initiated in Q4 included shorts International Business Machines Corporation (NYSE:IBM), Acushnet Holdings (GOLF) and elf Beauty (ELF). Since diversified information technology company IBM’s 2019 acquisition of Red Hat, the company has aggressively pursued a hybrid cloud strategy. Though IBM and its new management team have made solid progress on this pivot, we believe the company still meaningfully lags the cloud hyperscalers and other cloud-native companies. Management has also laid out aggressive long-term targets for revenue growth and free cash flow, both of which we believe the company will struggle to achieve as it faces intense competition in its hybrid cloud business and structural headwinds in the company’s legacy businesses.”8. Hewlett Packard Enterprise Company (NYSE:HPE)Number of Hedge Fund Holders: 50Hewlett Packard Enterprise Company (NYSE:HPE) provides data solutions globally through Compute, HPC & AI, Storage, Intelligent Edge, Financial Services, and Corporate Investments segments. Their offerings include servers, storage products, edge systems, networking solutions, and related services. Hewlett Packard Enterprise Company (NYSE:HPE) ranks 8th on our list of the edge computing market leaders. On February 27, Hewlett Packard Enterprise Company (NYSE:HPE) CEO Antonio Neri mentioned that the company is manufacturing some of its servers in the Middle East to enhance supply chain resilience and meet growing demand. The decision is not solely driven by geopolitical factors but also aims to address potential disruptions caused by natural disasters. According to Insider Monkey’s fourth quarter database, 50 hedge funds were bullish on Hewlett Packard Enterprise Company (NYSE:HPE), compared to 47 funds in the prior quarter. Cliff Asness’ AQR Capital Management is the largest stakeholder of the company, with 14.6 million shares worth $248 million. 7. Accenture plc (NYSE:ACN)Number of Hedge Fund Holders: 58Accenture plc (NYSE:ACN) is next on our list of the edge computing market leaders. It is a global professional services company that offers application services, intelligent automation, software engineering, data and analytics, metaverse, sustainability, change management, HR transformation, digital commerce, infrastructure services, technology consulting, engineering and R&D digitization, business process outsourcing, and other technology-related services. Accenture plc (NYSE:ACN) is one of the top edge computing market leaders. On December 19, Accenture plc (NYSE:ACN) reported financial results for the first quarter of fiscal 2024 ending November 30, 2023. The company posted a Non-GAAP EPS of $3.27, beating market estimates by $0.14. The revenue of $16.2 billion was in-line with Street consensus. According to Insider Monkey’s fourth quarter database, 58 hedge funds were long Accenture plc (NYSE:ACN), compared to 55 funds in the prior quarter. GuardCap Asset Management is the largest stakeholder of the company, with 1.74 million shares worth $610.6 million. ClearBridge International Growth EAFE Strategy stated the following regarding Accenture plc (NYSE:ACN) in its fourth quarter 2023 investor letter:“Another welcome change has been the recognition of generative artificial intelligence (AI) opportunities for companies outside the U.S. While our IT holdings trailed their mega cap U.S. counterparts for most of the year, semiconductor equipment makers ASML and Tokyo Electron, which we consider enablers of AI, as well as enterprise software maker SAP and IT consultant Accenture plc (NYSE:ACN), which we see as facilitators of AI adoption in new product lines and/or enhanced business models, rose strongly in the quarter. These companies are rolling out new, AI-enhanced products at higher prices which should positively impact earnings in the near term.”6. Arista Networks, Inc. (NYSE:ANET)Number of Hedge Fund Holders: 64Arista Networks, Inc. (NYSE:ANET) specializes in developing, marketing, and selling data-driven networking solutions for data center and cloud networking, including AI-driven ethernet switching platforms, campus wired and wireless products, and routing systems. The company serves diverse industries such as internet companies, service providers, financial services, government agencies, media, and telecommunications. Arista Networks, Inc. (NYSE:ANET) ranks 6th on our list of edge computing market leadersOn February 12, Arista Networks, Inc. (NYSE:ANET) reported Q4 non-GAAP earnings per share of $2.08, exceeding Wall Street estimates by $0.37. The revenue increased 20.3% year-over-year to $1.54 billion, in-line with market consensus. According to Insider Monkey’s fourth quarter database, 64 hedge funds were bullish on Arista Networks, Inc. (NYSE:ANET), compared to 59 funds in the prior quarter. Steve Cohen’s Point72 Asset Management is the biggest stakeholder of the company, with 833,408 shares worth $196.2 million. In addition to Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and NVIDIA Corporation (NASDAQ:NVDA), Arista Networks, Inc. (NYSE:ANET) is one of the notable edge computing market leaders. Giverny Capital Asset Management stated the following regarding Arista Networks, Inc. (NYSE:ANET) in its fourth quarter 2023 investor letter:“We did a bit of portfolio sculpting during the year, with mixed results. We trimmed Arista Networks, Inc. (NYSE:ANET) several times during the year as it soared. Those trims, a very small one in March at roughly $163 and a larger one in August at $183, don’t look smart with Arista finishing the year at $235 (and up more in January). Arista rose 94% this year. The good news is, Arista finished the year as our second largest holding, at 7.9% of the portfolio.If you are wondering how I could sell some Arista at $163 but then hold most of it at $235, the answer is that Arista’s outstanding competitive position in Artificial Intelligence became clearer to me as the year progressed. I felt in March that Arista would earn $8 per share in a few years. I see today that it might earn $8 in 2025.It’s possible there is AI-related froth in the Arista stock price, but also probable that Arista will continue to grow rapidly as the computing centers that process AI queries require enormous amounts of data bandwidth. I believe Arista’s routers and switches are the best tools for routing so-called hyperscale traffic. Also, its operating software allows computer giants to manage the kudzu-like growth of their data centers, lowering their total cost of operation.The sales of both Arista and Heico reflected my desire to manage PE multiple risk. I keep learning the hard way, however, that trimming your winners generally doesn’t add value. If the valuation is beyond justification, sell the position. If the valuation is high but the business continues to dominate its niche, grow steadily and add value for customers, maybe just take a walk around the block until the urge to sell goes away.”   Click to continue reading and see 5 Best Edge Computing Stocks To Buy.    Suggested articles:16 Best Future Stocks For The Long Term15 Best Stocks to Buy According to Billionaire D.E. Shaw25 Countries with Developing Economies but Slow Growth Rates Disclosure: None. Edge Computing Market Size and Best Stocks To Buy is originally published on Insider Monkey.

Insider Monkey

Edge Computing Market Size and Best Stocks To Buy

https://finance.yahoo.com/news/edge-computing-market-size-best-175948424.html

6daa732c-3c4f-3559-8280-730da2e5408a

ANET

Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Is Backblaze, Inc. (BLZE) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.Backblaze, Inc. is a member of our Computer and Technology group, which includes 622 different companies and currently sits at #5 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Backblaze, Inc. is currently sporting a Zacks Rank of #2 (Buy).Over the past three months, the Zacks Consensus Estimate for BLZE's full-year earnings has moved 12% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.Our latest available data shows that BLZE has returned about 52.4% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 10.5% on a year-to-date basis. This shows that Backblaze, Inc. is outperforming its peers so far this year.Another Computer and Technology stock, which has outperformed the sector so far this year, is Arista Networks (ANET). The stock has returned 16% year-to-date.Over the past three months, Arista Networks' consensus EPS estimate for the current year has increased 3.5%. The stock currently has a Zacks Rank #2 (Buy).Breaking things down more, Backblaze, Inc. is a member of the Internet - Software industry, which includes 145 individual companies and currently sits at #48 in the Zacks Industry Rank. On average, stocks in this group have gained 19.5% this year, meaning that BLZE is performing better in terms of year-to-date returns.Story continuesIn contrast, Arista Networks falls under the Communication - Components industry. Currently, this industry has 12 stocks and is ranked #79. Since the beginning of the year, the industry has moved +12.7%.Investors interested in the Computer and Technology sector may want to keep a close eye on Backblaze, Inc. and Arista Networks 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 reportBackblaze, Inc. (BLZE) : Free Stock Analysis ReportArista Networks, Inc. (ANET) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Is Backblaze (BLZE) Stock Outpacing Its Computer and Technology Peers This Year?

https://finance.yahoo.com/news/backblaze-blze-stock-outpacing-computer-134011189.html

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Ansys power integrity and on-chip electromagnetic analysis tools enable semiconductor products for HPC, graphics, and AI applications/ Key Highlights Ansys® Redhawk-SC™, Ansys® Totem™, Ansys® PathFinder™, and Ansys® RaptorX™ support power integrity, signal integrity, and reliability signoff requirements for the Intel 18A process technologyThe Ansys multiphysics platform supports new Intel manufacturing technologies including RibbonFET transistors and backside power distributionPITTSBURGH, Feb. 22, 2024 /PRNewswire/ -- Intel Foundry certified Ansys (NASDAQ: ANSS) multiphysics solutions for signoff verification of advanced integrated circuits (ICs) designed with the Intel 18A process technology with new RibbonFET transistor technology and backside power delivery.Ansys RedHawk-SC™ results verifying the voltage drop in a large integrated circuit (IC)The predictive accuracy of Ansys' power and signal integrity platforms helps designers lower the power consumption and increase the performance of edge artificial intelligence (AI), graphic processing, and advanced computing products by minimizing over-design. Collaboration towards a smooth electronic design automation (EDA) flow can significantly increase productivity for joint customers.Ansys RedHawk-SC and Totem are recognized as industry standards for power integrity signoff of digital and analog designs, respectively. The solutions' cloud-enabled data infrastructure provides unparalleled capacity to analyze full-chip designs and multi-die assemblies. PathFinder uses the same elastic compute infrastructure to also verify the electrostatic discharge (ESD) protection circuitry found on all chips. The Ansys Raptor family models high-speed signals including on-chip electromagnetic coupling."Intel Foundry and Ansys have partnered to ensure our customers have access to accurate analysis solutions for the latest manufacturing innovations in our Intel 18A process technology," said Rahul Goyal, vice president & general manager, product & design ecosystem enablement at Intel. "Partnerships across the industry are essential for solving challenges and taking advantage of the exciting opportunities opened up by this leading-edge silicon technology."Story continues"Ansys works with leading foundry partners like Intel Foundry to address complex multiphysics challenges and meet stringent power, performance, and reliability requirements," said John Lee, vice president and general manager of the electronics, semiconductor, and optics business unit at Ansys. "Ansys' signoff platform helps empower mutual customers to accelerate design convergence with greater confidence thanks to the collaborative work between the companies to ensure silicon predictive accuracy and a stellar user experience."/ About AnsysOur Mission: Powering Innovation that Drives Human Advancement™When visionary companies need to know how their world-changing ideas will perform, they close the gap between design and reality with Ansys simulation. For more than 50 years, Ansys software has enabled innovators across industries to push boundaries by using the predictive power of simulation. From sustainable transportation to advanced semiconductors, from satellite systems to life-saving medical devices, the next great leaps in human advancement will be powered by Ansys.Ansys and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.ANSS–T/ ContactsMedia             Mary Kate Joyce724.820.4368marykate.joyce@ansys.com Investors         Kelsey DeBriyn724.820.3927kelsey.debriyn@ansys.com Ansys logo. (PRNewsFoto/ANSYS, Inc.)CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/intel-foundry-expands-support-for-ansys-multiphysics-signoff-solutions-with-intel-18a-process-technology-302068559.htmlSOURCE Ansys

PR Newswire

Intel Foundry Expands Support for Ansys Multiphysics Signoff Solutions with Intel 18A Process Technology

https://finance.yahoo.com/news/intel-foundry-expands-support-ansys-163000282.html

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Ansys electro-thermal analysis tools address novel physics requirements for signoff verification of multi-chip HPC, graphics, and AI applications / Key Highlights Ansys collaboration to expand from single-die system-on-chip (SoC) to include Intel's embedded multi-die interconnect bridge (EMIB) assembly technologyAnsys multiphysics analyses provide signoff verification of thermal integrity, power integrity, and mechanical reliabilityPITTSBURGH, Feb. 22, 2024 /PRNewswire/ -- Ansys (NASDAQ: ANSS) and Intel Foundry collaborated to provide multiphysics signoff solutions for Intel's innovative 2.5D chip assembly technology, which uses EMIB technology to connect the die flexibly and without the need for through-silicon vias (TSVs). Ansys' accurate simulation engines deliver higher speeds, lower power consumption, and greater reliability in advanced silicon systems for artificial intelligence (AI), high-performance computing, autonomous driving, and graphic processing.Thermal analysis results for a 2.5D multi-die system generated by Ansys RedHawk-SC Electrothermal™Ansys RedHawk-SC Electrothermal™ is an electronic design automation (EDA) platform that enables multiphysics analysis of 2.5D and 3D-ICs with multiple dies. It can perform thermal analysis with anisotropic thermal conduction, which is essential for Intel's new backside power distribution technology. Thermal gradients also lead to mechanical stresses and warpage that can impact product reliability over time. Power integrity verification is done through chip/package co-simulation, which gives the 3D system-level context needed for maximum accuracy."Intel's enablement of Intel 18A and EMIB technology is a differentiated approach to multi-die assembly that has a number of significant advantages over traditional stacking techniques," said Rahul Goyal, vice president & general manager, product and design ecosystem enablement at Intel. "We will collaborate closely with Ansys to make the full benefit of this innovation easily accessible to our joint customers so they can create more competitive products."Story continues"Ansys has collaborated with Intel Foundry at the leading edge of 3D manufacturing technology to solve complex multiphysics challenges and meet stringent thermal, mechanical, performance, and reliability requirements," said John Lee, vice president and general manager of the electronics, semiconductor, and optics business unit at Ansys. "Ansys' multiphysics signoff platform gives our mutual customers the flexibility to adopt EMIB technology for their system architecture and assemble the best-of-breed solutions for higher performance products and a smooth user experience."/ About AnsysOur Mission: Powering Innovation that Drives Human Advancement™When visionary companies need to know how their world-changing ideas will perform, they close the gap between design and reality with Ansys simulation. For more than 50 years, Ansys software has enabled innovators across industries to push boundaries by using the predictive power of simulation. From sustainable transportation to advanced semiconductors, from satellite systems to life-saving medical devices, the next great leaps in human advancement will be powered by Ansys.Ansys and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.ANSS–T/ ContactsMediaMary Kate Joyce724.820.4368marykate.joyce@ansys.com Investors  Kelsey DeBriyn724.820.3927kelsey.debriyn@ansys.com Ansys logo. (PRNewsFoto/ANSYS, Inc.)CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/ansys-intel-foundry-collaborate-on-multiphysics-analysis-solution-for-emib-2-5d-assembly-technology-302068714.htmlSOURCE Ansys

PR Newswire

Ansys, Intel Foundry Collaborate on Multiphysics Analysis Solution for EMIB 2.5D Assembly Technology

https://finance.yahoo.com/news/ansys-intel-foundry-collaborate-multiphysics-163500514.html

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ParticipantsDavid L. Simon; SVP of IR; Altair Engineering Inc.James R. Scapa; Founder, Chairman & CEO; Altair Engineering Inc.Matthew Charles Brown; CFO; Altair Engineering Inc.Dylan Tyler Becker; Research Analyst; William Blair & Company L.L.C., Research DivisionHoi-Fung Wong; Research Analyst; Oppenheimer & Co. Inc., Research DivisionJoshua Alexander Tilton; Research Analyst; Wolfe Research, LLCMark William Schappel; MD; Loop Capital Markets LLC, Research DivisionMatthew George Hedberg; Analyst; RBC Capital Markets, Research DivisionStephen TusaYu Shi; Senior Analyst; Needham & Company, LLC, Research DivisionPresentationOperatorGood day and thank you for standing by. Welcome to the Altair Engineering Fourth Quarter 2023 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.I would now like to hand the conference over to your speaker today, Dave Simon, Altair's Senior Vice President for Investor Relations. Please go ahead.David L. SimonGood afternoon. Welcome, and thank you for attending Altair's earnings conference call for the fourth quarter of 2023, ended December 31, 2023. I'm Dave Simon, Altair's SVP for Investor Relations, and with me on the call are Jim Scapa, Founder, Chairman and CEO; and Matt Brown, Chief Financial Officer.After market close today, we issued a press release with details regarding our fourth quarter 2023 performance and guidance for the first quarter and full year 2024, which can be accessed on the Investor Relations section of our website at investor.altair.com. This call is being recorded and a replay will be available on the IR section of our website following the conclusion of this call.During today's call, we will make statements related to our business that may be considered forward-looking under federal securities laws. These statements reflect our views only as of today and should not be considered representative of our views as of any subsequent date. We disclaim any obligation to update any forward-looking statements or outlook. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from our expectations. These risks are summarized in the press release that we issued earlier today. For a further discussion of the material risks and other important factors that could affect our actual results, please refer to those contained in our quarterly and annual reports filed with the SEC as well as other documents that we have filed or may file from time to time.During the course of today's call, we will refer to certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our press release. Finally, at times in our prepared comments or responses to your questions, we may offer metrics that are incremental to our usual presentation to provide greater insight into the dynamics of our business or our quarterly results. Please be advised that we may or may not continue to provide this additional detail in the future.With that, let me turn the call over to Jim for his prepared remarks. Jim?Story continuesJames R. ScapaThank you, Dave, and welcome to everyone on the call. The fourth quarter of 2023 carried positive momentum for Altair with record high total quarterly and full year revenue of $171.5 million and $612.7 million, respectively. Software product revenue and total revenue were both well within our guidance with adjusted EBITDA above the top end of the guided range. Altair's Q4 results continue our growth path of helping organizations succeed through computational intelligence.Adjusted EBITDA for Q4 2023 increased by 38.3% year-over-year to $53.6 million, or 31.2% of total revenue. Adjusted EBITDA grew 19% for the full year 2023 to $129.1 million, or 21.1% of total revenue, versus $108.6 million, or 19% of revenue in 2022, continuing our trend of increasing adjusted EBITDA margin by 200 to 300 basis points per year over the last 4 years.Software product revenue for the full year 2023 grew by 8.6% compared to 2022 and 9.8% on a constant currency basis. Software product revenue as a percentage of total revenue for the full year 2023 increased to 90% as compared to 89% in 2022. And the recurring software license rate for 2023 was 93%, an increase from 92% during 2022. Altair's growth continues to be broad based across many geographies, technologies and verticals.In the fall of 2023, we released what we believe was the most important update to our products in the last 10 years. Our upcoming release this spring is expected to take another leap forward as we continue to bring all of our solutions for simulation under a common user framework, graphics engine and back-end data model. In addition, we believe and many customers agree our investments in engineering AI are positioning us as the leader in this important and growing domain because of the enormous base of data science talent and technology we are leveraging across our enterprise.Despite some recent uncertainties around EV sales, the transition of the automotive sector toward alternative power sources, including purely electric, continues to present an exciting field of opportunities for Altair. In December, we announced funding awarded for the U.K. government's Faraday Battery Challenge to a consortium of 3 organizations: Altair, JLR and battery manufacturer, Danecca. The project will leverage Altair's technology to develop vehicles with a new lighter body that offers more room for the battery without adding additional weight. JLR will apply Altair's C123 process, a unique 3-stage concept development process for body-in-white structures and will utilize Altair's technologies for structural optimization and electrothermal simulation.Also in the electric powertrain space, a heavy duty commercial vehicle manufacturer has substantially increased its commitment to Altair's simulation tools for improving battery predictive analytics. In APAC, a leading manufacturer of electric vehicles has made an 8-figure commitment to use a broad portfolio of Altair simulation and data analytics software in its multi-division product development processes. A U.S. headquartered electric vehicle manufacturer doubled its Altair technology purchases, bringing our annual revenue with them into 7 figures. And finally, another U.S. headquartered EV manufacturer signed a 3-year 7-figure agreement with Altair, representing more than 100% growth over the previous 3 years.We had some good fourth quarter wins in the BFSI vertical and for our data analytics solutions. One of the largest credit unions in the U.S. aimed to renewal with 33% growth, recognizing its increased usage and high value from our data analytics and AI platform, RapidMiner. A major European banking group signed on to a major deployment of Altair SLC across many applications throughout its organization. And a North American consulting organization has agreed to use Altair SLC as a primary tool for its work with many clients and supply chain analytics.Altair's high performance computing solutions drove substantial activity in the technology vertical. One of the leading companies in the power semiconductor field placed an order for Altair's workload and workflow management software based on experiencing a 20% throughput increase. This not only enhances its operational efficiency, but also leads to substantial cost savings, given the high cost of EDA application software.An EMEA semiconductor company renewed with a 127% annual increase. We also received a 3-year agreement with 7 figures of annual revenue from a U.S. semiconductor manufacturer based on its desire to leverage cloud computing for design and development while effectively managing cloud usage costs.Indirect sales continues to represent an important percentage of our overall revenue, and we look forward to further success in that regard, especially for our data analytics solutions. We welcomed 3 new channel partners to the Altair sales team in the fourth quarter. Do IT Now is focused on high performance computing applications in EMEA. Neyond in Portugal and Matogen Applied Insights of South Africa are both focused on data analytics and artificial intelligence.Altair has expanded its relationship with the FIRST technology organization founded by Dean Kamen, where Altair technology is now available to all teams in the FIRST Robotics Competition Kit of Parts. More than 3,500 high school teams across 26 countries competing in this year's first robotics competition will have free access to Altair software. Altair's collaboration with FIRST will bolster students' technical skills and support a diverse community of students by building citizenship, self-esteem and leadership through hands-on experiences and project-based learning. Furthering our collaboration with FIRST is a perfect example of Altair's commitment to students and the role they have in technology, both today and in the future.Combining our academic focus with work on e-mobility, Altair India recently formalized a strategic partnership with the Indian Institute of Technology Madras to establish an e-mobility simulation lab within the department of engineering design. This collaborative initiative under Altair's Corporate Social Responsibility program includes grant money from Altair along with simulation and design software and high performance computing infrastructure. Exclusively powered by Altair technologies, the lab's goal is to support startups, researchers and students in advancing the study and development of electric vehicles. We are pleased to be supporting IIT Madras, a clear global leader in educating the world's best and brightest young minds.2023 for Altair was a year of hard work, significant investments in new software technologies, sales team alignment into market verticals, steady focus, and ultimately, outstanding execution from our stellar global teams amidst a lot of economic and geopolitical uncertainty. I am proud of the individual and group accomplishments of our people and appreciative of the strong Altairian culture that keeps us moving forward in ways that benefit our customers, employees, partners and shareholders. We believe the culmination of our organizational advancements, combined with the power of our technology portfolio, positions Altair well for the future.We are holding an Altair Investor Day the morning of March 20 in Santa Clara, California, where we will discuss our vision for the future and our plans to capitalize on our growing market opportunity. We will also introduce what we believe to be a very exciting and disruptive technology for the electronics market. I hope all of our investors and prospective investors as well as the analysts who cover Altair and the markets we compete in will attend.Now I will turn the call over to Matt to provide more details on our financial performance and our guidance for the first quarter and full year of 2024. Matt?Matthew Charles BrownThank you, Jim. Hello to everyone on the call, and thank you for joining us. We are pleased with our strong fourth quarter results, which continued to demonstrate the importance of our products to our customers in leveraging computational intelligence to solve the important challenges they face. Despite the somewhat difficult macroeconomic environment that we discussed throughout 2023, we finished the year with record high revenue and adjusted EBITDA margin of 21.1%, well exceeding the 20% goal we had long established for 2023.As I dive into the details of our financial results, remember some of our revenues and expenses are transacted in currencies other than the U.S. dollar, and therefore, our reported results may be significantly impacted by changes in foreign exchange rates. To aid in the review of our results, throughout my remarks, I will reference growth rates in both reported and constant currency.Starting with Q4 numbers. Calculated total billings for the quarter were $196.1 million, a year-over-year increase of 4.4% in reported currency and 3.6% in constant currency. As a reminder, we exited a lower margin hardware business in 2023 that had historically been weighted most heavily in the fourth quarter, therefore impacting the Q4 year-over-year growth rates. The increase in billings was led by software across all geographies, and we saw billings growth across our verticals with particular strength in automotive, aerospace and technology.Software revenue in Q4 was $155.9 million, a year-over-year increase of 7.6% in reported currency and 6.7% in constant currency compared to Q4 2022. Software revenue growth was led by new customer growth and expansion in existing accounts and supported by a robust renewal base that continues to have a very high rate of retention.Total revenue in Q4, which includes services and other revenue, was $171.5 million, a year-over-year increase of 6.9% in reported currency and 6.0% in constant currency compared to Q4 2022.Non-GAAP gross margin, which excludes stock-based compensation and restructuring expense, was 84.3% in the fourth quarter compared to 80.2% in the prior year quarter, an increase of 410 basis points. The year-over-year increase in non-GAAP gross margin in Q4 was partially due to our exit from the lower margin hardware business that was present in the year ago period. Software mix also contributed slightly to the increase in blended non-GAAP gross margin as our software revenue, which carries a higher gross margin, increased as a percentage of total revenue. Software revenue was 90.9% of total revenue in Q4 compared to 90.4% in the prior year. Over the long term, we continue to expect a general mix shift towards software revenue as growth there will outpace services and other revenue.Non-GAAP operating expenses, which excludes stock-based compensation and amortization of intangible assets, were $94.0 million compared to $92.6 million in the year ago period.Adjusted EBITDA in Q4 was $53.6 million, or 31.2% of total revenue, compared to $38.7 million, or 24.1% in the prior year, an increase of 38.3%. This increase compared to the prior year quarter as well as relative to our expectations was driven by the increase in gross profit in the quarter, combined with a disciplined approach to spending.Now looking at the full year results for 2023. Calculated billings for the year were $631.8 million, a year-over-year increase of 4.0% in reported currency or 4.8% in constant currency. Remember that in Q1 of last year, we highlighted our largest ever data analytics and AI deal in the BFSI vertical, which was a 5-year 8-figure deal. So this significant multiyear deal in 2022 is impacting the 2023 year-over-year billings growth rates.Software revenue for the year was $550.0 million, a year-over-year increase of 8.6% in reported currency and 9.8% in constant currency. And total revenue for the year was $612.7 million, a year-over-year increase of 7.1% in reported currency and 8.2% in constant currency. Our recurring software license rate, which is the percentage of software billings that are recurring, continues to be strong at approximately 93% for the year. The strength in software revenue helped drive our non-GAAP gross margins for the year to 81.8% compared to 80.0% in 2022, a 180 basis point increase.In addition, non-GAAP operating expenses as a percentage of total revenue declined year-over-year due to reductions in general and administrative costs. This helped drive adjusted EBITDA for the year to $129.1 million, or 21.1% of total revenue, compared to $108.6 million or 19.0% in 2022, a year-over-year increase of $20.5 million or 18.9%. We set out a vision 3 years ago of achieving 20% adjusted EBITDA margin exiting 2023, and I'm proud of our entire team for rallying around that goal and executing to exceed this important milestone. In 2023, we saw more than half of our year-over-year increase in total revenue make its way down to adjusted EBITDA.Turning to our balance sheet. We ended the year with $467.5 million in cash and cash equivalents, an increase of approximately $151.3 million from the prior year. Free cash flow was $117.1 million for the year, exceeding our expectations and driven by the increase in profitability. This represents a substantial increase year-over-year and demonstrates our ability to generate significant free cash flow.Let's turn to guidance for Q1 and full year 2024. We've provided detailed guidance tables in our earnings press release, including reconciliations to comparable GAAP amounts. To provide clarity on the FX impact to our expectations, we've provided growth rates in both reported currency and constant currency in our guidance tables.Over the past couple of years, we've seen a gradual shift in our revenue seasonality away from Q1 and into the remaining 3 quarters as we've continued to broaden our customer base. We are expecting that trend to continue in 2024 and have therefore guided Q1 revenue in a prudent manner.For Q1, we expect software revenue in the range of $152 million to $155 million, a year-over-year increase of 1.6% to 3.6% in reported currency and an increase of 0.8% to 2.8% in constant currency. For full year 2024, we expect software revenue in the range of $600 million to $610 million, a year-over-year increase of 9.1% to 10.9% in reported currency and 8.3% to 10.1% in constant currency.We expect services and other revenue to be flat year-over-year in 2024 compared to the declines we saw over the past couple of years. As a result, we expect total revenue for Q1 in the range of $167 million to $170 million, a year-over-year increase of 0.6% to 2.4% in reported currency and negative 0.1% to positive 1.7% in constant currency.For the full year 2024, we expect total revenue in the range of $663 million to $673 million, a year-over-year increase of 8.2% to 9.8% in reported currency and 7.5% to 9.1% in constant currency. For Q1, we expect adjusted EBITDA in the range of $37 million to $40 million, or 22.2% to 23.5% of total revenue compared to $43.1 million or 25.9% of total revenue in Q1 2023.For full year 2024, we expect adjusted EBITDA in the range of $143 million to $151 million or 21.6% to 22.4% of total revenue compared to $129.1 million or 21.1% of total revenue in 2023.And finally, for the full year 2024, we expect free cash flow in the range of $129 million to $137 million. As a reminder, our cash flow expectations are sensitive to billings and collection patterns which fluctuate seasonally.We are pleased with overachieving our profitability goals for 2023, and we're excited about the tremendous opportunity that lies ahead as we continue to execute on our future financial targets. With that, we'd be happy to take your questions. Operator?Question and Answer SessionOperator(Operator Instructions) Our first question will come from the line of Ken Wong with Oppenheimer.Hoi-Fung WongJim, I wanted to get your thoughts on kind of how the Synopsys-ANSYS merger kind of might impact Altair's strategic initiatives. I couldn't help but kind of notice you talking about introducing an exciting technology for the electronics market, and just wanted to kind of pick your brain on how you're thinking about the current competitive landscape.James R. ScapaI think I'm on here. Thanks, Ken. Appreciate it. I mean, the combination of Synopsys and ANSYS I think is a fairly natural combination. I've been talking about the convergence not only of HPC and simulation and AI for 5 or 6 years, and actually of mechanical and electronics as well. And Altair has been investing in that direction ourselves, both quietly and noisily for probably the last, I don't know, 10 or 12 years now and much more aggressively in the last couple here. So I mean, I think it's a good combination. Honestly, for us, because there's a great deal of uncertainty that comes during this period where employees and customers don't really know where things are going, I think it presents some opportunities for us, but that remains to be seen.Hoi-Fung WongGot it. Okay. That makes a lot of sense. And then, Matt, I just wanted to maybe dive in a little bit on the cadence of revenue through the year. 1Q looks a little below typical seasonality. Any thoughts to share there in terms of maybe kind of how either kind of conservatism or any kind of seasonal trends might be playing into how you guys are thinking about it?Matthew Charles BrownYes, sure. Thanks, Ken. Yes, I noted in my prepared remarks as well to give a little bit of color on this. What we've seen over the last couple of years is somewhat less revenue in Q1 coming in as a percentage of the total. And so what we're seeing in 2024 is that that trend is continuing a little bit. And it makes sense given how we're broadening our customer base. So we've had a concentration historically very heavily in auto, and over time, and in particular over the last few years, we've broadened that so we're somewhat less concentrated there. And as a result, that's causing Q1 revenue, which had historically been our highest revenue quarter, to be more balanced throughout the year. So that's reflected in the guide.OperatorOur next question will come from the line of Dylan Becker with William Blair.Dylan Tyler BeckerJim, maybe for you. You kind of touched on this in your prepared remarks, but 2023 was a pretty active year, a pretty busy year for you guys. We had the platform upgrade. We had the sales force verticalization. We saw some healthy momentum in partnerships, and the industry has remained pretty resilient overall. I guess, how do you think about the importance of all of those pieces or components setting up the business kind of for sustained momentum as we think about the 2024 outlook and obviously potentially beyond that as well? And maybe the trajectory of some of that layering in and maybe how that kind of plays to the revenue linearity as well.James R. ScapaYes, sure. Thanks for the question. Last year, we made that change to how we go to market. We released a lot of great products. But for us, it was actually also a very prudent year from an investment standpoint, keeping sort of control over things with an eye towards our bottom line to some extent. We come into this year having sort of settled down a lot of those changes where we really I think have a really great sense about these vertical teams. People know how to operate between the regions and the vertical teams really nicely now. We've added a couple of new ones coming into this year as well. And I think we're very, very optimistic that they're going to produce extremely well. Similarly, we've done some really good work on the indirect side. So the go-to-market I feel very, very positive about, and I feel great about the products. So we're very optimistic about 2024, but we remain prudent in how we sort of look at things.Dylan Tyler BeckerGot it. Okay. That makes a ton of sense. And then maybe to sticking kind of with the idea as we think about kind of this proliferation across teams and use cases. I guess as you think about kind of that expansion conversation with customers, where are you seeing kind of the greatest drivers of incremental adoption today? Is it, again, an expansion within teams? Is it kind of the computational intensity? Is it, again, platform adoption product usage through the token model? I guess kind of trying to help us think about what are the kind of core drivers of expansion because I think there's a lot of opportunity there as well.James R. ScapaI think it's actually kind of across the board. We have this huge installed base with very, very high recurring revenues. So a huge amount of our growth really comes from expansion within that base, probably 60%, 65% each year. So getting more products into those accounts, bringing some really great new products. The engineering AI I think is finally starting to get traction. Digital Twin is getting huge traction as well. And so we're seeing a lot of opportunity within the installed base. And the vertical teams in general are focusing on a subset, basically the strategic accounts within those verticals for the most part, which means a lot of expansion within those accounts, and that's extremely important for us. That focus is really key.OperatorOur next question will come from the line of Joshua Tilton with Wolfe Research.Joshua Alexander TiltonThanks for sneaking me in. Can you hear me?James R. ScapaYes.Joshua Alexander TiltonTwo quick ones for me. I think just some of the -- this is kind of the #1 question I've been getting asked since results dropped. But I think people are just trying to understand like what is the level of conservatism that's kind of baked into the outlook for next year that you put out today? And maybe also just within that, like you talked to a more difficult macro environment this year. What does that guidance embed or assume for how the macro plays out over the next 12 months? And I just got a quick follow-up.James R. ScapaDo you want to take a shot there, Matt, or me? Why don't you start?Matthew Charles BrownYes, I'll start, and you can finish. Yes. Josh. Appreciate your question. I think we looked at the year and took a pretty pragmatic and prudent approach to guidance. You can see in the first quarter, we're seeing some of that revenue more balanced throughout the year, but we expect it to pick up in the back half of the year and end up in a pretty good spot. So we're feeling very optimistic actually and have lots of reasons to be feeling very, very positive from a go-to-market perspective, from a product perspective. But we're taking a pretty prudent approach to our guide for 2024. Jim, do you have anything to add there?James R. ScapaYes, maybe I'll just add. Last year, we were investing a bit less last year. We're coming into this year, and we're starting to ramp up a little bit more investment into this year. And we expect that's going to start to pay some dividends here, both on the product side and on the go-to-market side, actually. So you're going to start to see that coming along through the year, we think. But we are trying to be cautious, we'll say, with how we put guidance out.Joshua Alexander TiltonSuper helpful. And then I think the follow-up for me is, is there any way we can get a sense of either for this year or what's baked into next year? Like how do we think about the different growth rates of the business in terms of what the data analytics business is growing versus what the rest of the more I guess what people would think of as core simulation growth either for this past year or going forward?James R. ScapaMatt, you want to answer that or me?Matthew Charles BrownSure. Yes, Josh, it's a great question. And not every year is the same. So this year in 2023, we saw just really strong growth in simulation. Simulation led the way. And you may remember in 2022, data analytics and AI led the way for us there in terms of that segment. And so every year is going to be a little bit different. We expect, though, that a lot of these technologies are converging. And so you're starting to see a real blend of data analytics and AI within simulation. It's becoming more and more difficult to distinguish between them, actually. And in terms of growth drivers, that actually helps them all. So critical to the success is that our customers are leveraging our broad portfolio of technology that's helping drive growth. So I think you're going to see contributions to our growth rate from all 3 and even more so as they continue to converge.James R. ScapaYes, I'd agree. If I could just add to that, I think the engineering AI and the Digital Twin stuff is really ramping up fast. And probably -- it's hard to measure what's simulation and what is, if you will, AI in these accounts, especially with our units model.Joshua Alexander TiltonSuper helpful.James R. ScapaThank you.OperatorOur next question will come from the line of Matt Hedberg with RBC Capital Markets.Matthew George HedbergI wanted to follow up on the earlier question on Synopsys and ANSYS. I guess, Jim, does anything change strategically with Altair in terms of maybe some additional partnerships or incremental focus on cadence? Just sort of wondering if any changes on that front.James R. ScapaMatt. I mean, I think we're sort of continuing on a path that we were on already where we see this convergence of electronics and mechanical. In terms of partnerships specifically, I'm not sure. To be honest with you, I'm not sure what happens in that direction. I guess there are possibilities there with a lot of different players in the electronics market and others. For us, we're continuing to invest. And we -- unlike others, we might feel, we do believe that there are a lot of opening opportunities in the electronics market that we can play in quite interestingly.Matthew George HedbergGot it. That's helpful, Jim. And then maybe you just sort of touched on this in the prior question. But obviously, you've been invested in high performance compute seemingly for decades, it feels like. And obviously, we're all kind of watching NVIDIA do its thing. Like you said, it may be hard to know where that line is between customer spend on simulation and AI given your model. But do you think -- is there any way that you think going forward that you might start to see some tailwinds and maybe some accelerations that maybe you haven't seen previously given sort of years and years of investment on your part?James R. ScapaI hope you're right. I'm not sure. That is the honest answer. But we are -- as I said earlier, we are seeing more and more activity around what we call engineering AI. And I think that is going to continue to ramp up and become an important tailwind for us. So the answer is yes. I think that is -- and I think we've been absolutely in front of that wave actually by several years, actually, and I think it's showing. When we go in and benchmark, we're typically winning. And so we're very happy about that.Matthew George HedbergGot it. Best of luck, guys.OperatorOur next question will come from the line of Charles Shi with Needham & Company.Yu ShiMy apologies, I do want to ask one more about Synopsys plus ANSYS. I think one of your peer companies -- well, that's the sole -- they kind of have this school of thought which I found very interesting, but I want to get your thoughts as well. They kind of said they think that combination could mean that ANSYS, which means it will become the legacy ANSYS under the Synopsys roof, to become less focused on the simulation and analysis market, but more the combined company will be more focused on semis, which they think it opens up opportunities for them. But do you agree with that school of thought? And hypothetically speaking, if that indeed is the case -- I don't know if that's the case or not because that's not the talking points from those two companies. But if that turned out to be the case, what are the opportunities for Altair? That's my first question.James R. ScapaOkay. I don't know if that's the case either. I think it's quite natural when there's a combination that the leadership and the experiences of the leadership of the combined company is going to tend to drive the direction of the thinking and the strategies. So in this case, I think it could defocus ANSYS a bit and the legacy ANSYS markets, but that remains to be seen. And then certainly, if that happens, certainly we continue to have opportunities. But we think there's opportunity in both the legacy ANSYS markets and in some of the new markets as well. As we see electronics really shifting quite a bit -- and this is the reason I think for the combination into more of a 3D type world and less of these huge, large 2D types of ICs, remains to be seen.Yu ShiGot it. So maybe a second question maybe for Matt. You talked about the broadening customer base changing your seasonality pattern. We definitely see that from your Q1 guide. Can you be a little bit more specific, because it sounds like you were saying automotive vertical, the revenue from that vertical has been a little bit Q1 heavy. But what are the other verticals that may be like Q2, Q3 or Q4 heavy? That's -- we just want to better understand how this broadening customer base is changing your revenue profile, which is kind of like a bathtub shift, right? High in Q1 and Q4, a little bit light in the middle. And kind of it's a little bit difficult for us to forecast and want to get your thoughts and for us to better understand this.Matthew Charles BrownSure. Thanks, Charles. So namely, and I think most significantly, it's BFSI. So as that vertical has grown, the buying patterns are different than what we've seen in some of our older, more legacy verticals. BFSI, for all intents and purposes, didn't exist for us more than 5 years ago, and in particular over the last couple of years has been growing steadily. And so as a result, as the entire revenue base grows, you start to see some changes in seasonality as that vertical grows. But it's also true for verticals such as technology, for example. So we've just seen a gradual shift somewhat away from auto and into these other verticals that tend to have buying patterns that are either a little bit more balanced throughout the year or even much more back-end loaded towards Q4.Yu ShiThanks, Matt.Matthew Charles BrownNo problem.James R. ScapaIf I could just add one thing to that. Maybe it's not directly addressing the question, but we are seeing a tremendous amount of opportunity in aero and defense and electronics and technology. And I think that's very broad-based and going to happen across the verticals as well, not just BFSI.OperatorOur next question will come from the line of Stephen Tusa with J.P. Morgan.Stephen TusaJust a question on EBITDA margins. You did 200 bps of improvement in 2023. And you've already noted some preselling revenue growth for 2024, but I think about 100 basis points. What's the difference between the years? Are you investing a little bit more this year? Maybe just some color on the margins that that is expected.Matthew Charles BrownStephen, thanks. It is 210 bps. Don't short me by those 10. So, yes. I mean, so we're obviously very happy about the margin expansion from 2022 to 2023, and it's something that we've been able to demonstrate over the last few years of having really nice margin growth. 2024 is a year in which we see a lot of opportunity ahead of us in back half of 2024 and beyond. And so for that reason, we're just making sure that we're investing in the right areas. So we want to make sure that we're investing in areas for growth, in particular in our sales capacity and in product development, so that we can really capitalize on what we see as some pretty meaningful opportunities out there. So not every year is going to be like the rest. We are, of course, still committed to growing margins meaningfully, but not every year is going to be like the rest. And this is the year in which we think it makes a lot of sense to lean into the opportunities that we have.Stephen TusaSo I guess I was thinking you guys would be kind of leveraging the fixed cost at this stage a little bit more normally like perhaps what you were showing in 2023. Is that going to be kind of a year-to-year decision from here is what you're saying?Matthew Charles BrownI think when you look over a long period of time, you're going to see the average growth in adjusted EBITDA margin consistent with what we've communicated in the past. So I would probably urge you not to get too hung up on one short period of time or another. I think over time, this will play out in the way that we've described.Stephen TusaOkay. Great. And then just one other follow-up, just getting back to this discussion of consolidation. I guess, are you guys saying that you're not -- are you concerned at all? Are you comfortable with competing with these larger companies in these more integrated resources? And you guys can continue to deliver and grow as a standalone company that you're really not interested in perhaps partnering up in more of a way to compete, because it just feels like this landscape is changing a little bit here.James R. ScapaWant me to take that one, Matt? I think we're open to all kinds of possibilities, Stephen. But we do think that we're positioned pretty well to compete, quite frankly. So we're open, but we're also heads down and focused on competing.Stephen TusaGreat answer.OperatorOur next question will come from the line of Mark Schappel with Loop Capital Markets.Mark William SchappelJim, starting with you. From an overall demand perspective, I was wondering if you could just comment on whether you've seen any changes in the demand environment over the past 90 days or so, mainly in terms of, say, buying behavior or sales cycles? And also, maybe you could just talk a little bit about what you're seeing in Europe.James R. ScapaYes. So in general, I think we're seeing greater strength on the pipeline basically over the last 90 days, and we're obviously very pleased with that. And this is part of why we're investing. And we're investing on the product side as well because we think there's some very, very interesting opportunities there and to bring some differentiation into the market and with some of the changes we see happening in some of these markets. Europe, you're talking about what in Europe, let me ask more specifically.Mark William SchappelJust overall demand and like the industrial base you're seeing over in Europe.James R. ScapaI think it's very strong in general for us.Mark William SchappelOkay. Great. And then along with that, maybe you could just talk a little bit about the strength of the aerospace industry you saw in the quarter. I know earlier in 2023, aerospace was particularly strong. And I was just curious if that strength is continuing into Q4.James R. ScapaYes. The aerospace market for us is -- that's one where moving to the vertical organization really helps because we have much more focus on the applications and needs of those accounts and sharing information and all of that across our enterprise. So that's absolutely a strong vertical. We've also put renewed emphasis on defense as well. We brought in some new team members on the defense side, and we think they're going to make quite a difference here. And those are part of the investments that we're making.OperatorThat concludes today's question-and-answer session. I'd like to turn the call back to Jim Scapa for closing remarks.James R. ScapaThank you, Liz. So just in conclusion, I just want to make sure I invite everyone. We actually have two events coming up. We mentioned our Investor Relations Day, which is on March 20 in Santa Clara, California. And then the second one is coming up sooner than that, which is on March 6 and 7. It's our annual Future.Industry event. It's a virtual event. And typically we have 10,000 to 15,000 attendees coming to that, hopefully even more this year. And so I think that's a nice opportunity to see what's new in our products and our platforms and also to hear from a number of our customers and how they're using the products. So I just want to thank everyone on my team for having another great year in 2023 and really looking forward to 2024. Thank you.OperatorThis concludes today's conference call. Thank you for participating. You may now disconnect.

Thomson Reuters StreetEvents

Q4 2023 Altair Engineering Inc Earnings Call

https://finance.yahoo.com/news/q4-2023-altair-engineering-inc-143532035.html

30f96db2-fed1-3ef7-b439-fc44ae03a9c8

ANSS

Leading semiconductor design software company Synopsys (NASDAQ: SNPS) is having a moment. Over the last three years, the company has shot out of relative obscurity and into the limelight -- and for good reason.As per new CEO Sassine Ghazi, Synopsys has "delivered a 17% revenue CAGR [compound average growth rate], non-GAAP [generally accepted accounting principles] operating margin improvement of 7 points, and non-GAAP EPS [earnings per share] growth at a 26% CAGR." For a large software company, it's been a stellar run higher, especially considering that includes a bear market.But is that financial performance good enough to justify an 80% run since the start of 2023? Perhaps.A more important question, though, is what will happen going forward -- because while Nvidia gets most of the attention for the current AI hype, Synopsys plays a huge role as well. Can Synopsys go parabolic like Nvidia stock has?Is Synopsys ready to pull off an epic move?Synopsys' most recent quarterly earnings were very good. Revenue increased 21% year over year to $1.65 billion, and adjusted EPS increased 36% year over year. Management increased its full-year expectation for adjusted EPS, now anticipated to increase 21% from 2023.The item that has captivated everyone's attention, though, is the pending merger between Synopsys and design simulation software provider Ansys (NASDAQ: ANSS). Officially announced in late January, this deal isn't likely to be finalized until sometime in 2025, pending regulatory approval.Nevertheless, there are big moves happening in this market. Synopsys is trying to acquire Ansys as ridiculously complex AI systems are ratcheting up challenges for customers -- from data center operators to auto manufacturers to smartphone developers. Synopsys' peer Cadence Design Systems recently announced its own AI-powered supercomputing platform to boost customers' simulation capabilities in the design workflow. And Keysight Technologies also quietly made a small acquisition to increase its own capabilities in the same department.Story continuesWhat's the big deal with simulation software anyway? Ghazi commented on the earnings call:There is no one more capable of helping companies innovate for this era of pervasive intelligence. Semiconductor companies are now designing with a system approach in mind, while system companies are unlocking additional value through purpose-built chips and software-defined systems. At the same time, customers see the fusion of electronics design and physics simulation as critical to delivering high-performing and high-yielding solutions for their business.Synopsys-plus-Ansys unlocks new market opportunities for the merged business, especially as the growing pervasiveness of AI makes design work more complex. Ansys already makes the bulk of its revenue from non-tech customers in industrial markets, so Synopsys could get its own design software into the hands of companies that need help with AI the most. If successful, this could help blur the lines between computing intelligence of today and the (currently) very different world of mechanical engineering.But why compare Synopsys-plus-Ansys to Nvidia, though? Back in 2019, I wrote extensively about an underrated pending acquisition the AI titan was trying to make: network chip design company Mellanox. When Nvidia finally closed the deal in early 2020, the pandemic had struck, and few investors were paying attention to the new AI training potential Nvidia was sitting on.However, Mellanox ended up being an absolutely critical piece of Nvidia's current AI dominance, as it helped the company solve some problems with quickly moving massive amounts of data during the AI training process.Could Synopsys be trying to solve for a similar AI pain point (making AI usable in everyday applications for the masses) by purchasing Ansys? Maybe it is, and big profitable gains lay ahead in the coming years.A premium-priced stock, but for good reason?All of this may sound good, but there's the problem of valuation. Synopsys stock fetches a high premium of 63 times trailing-12-month EPS, and 67 times trailing-12-month free cash flow (which more closely aligns with adjusted EPS). On a forward-looking basis, Synopsys trades for about 42 times expected EPS -- still a high price tag to be sure.Nvidia also trades for a similarly hefty valuation, and has for many years. It would seem that top AI stocks are destined to be "expensive." New AI is still in the early stages of development, after all, and have the potential to unlock massive new efficiencies in business operations.Mind this premium, but don't ignore Synopsys stock either. With or without Ansys, it sits at a critical point in the semiconductor industry, and in AI development at large. Acquiring Ansys could go down in history as a huge deal. Consider utilizing a dollar-cost averaging plan to build a position in Synopsys over time to smooth out the inevitable volatility in stock price.Should you invest $1,000 in Synopsys right now?Before you buy stock in Synopsys, 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 Synopsys 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 26, 2024Nick Rossolillo and his clients has positions in Cadence Design Systems, Nvidia, and Synopsys. The Motley Fool has positions in and recommends Cadence Design Systems, Nvidia, and Synopsys. The Motley Fool recommends Ansys. The Motley Fool has a disclosure policy.Up 80% Since 2023, Is This Stock Ready to Repeat Nvidia's Record Performance? was originally published by The Motley Fool

Motley Fool

Up 80% Since 2023, Is This Stock Ready to Repeat Nvidia's Record Performance?

https://finance.yahoo.com/news/80-since-2023-stock-ready-105300726.html

fa7f8c84-d0d4-31d2-aca4-50bd6d000ea1

ANSS

Ansys software will provide predictively accurate, end-to-end capabilities for body durability analysis/ Key Highlights Ansys' structural simulation solutions will help deliver next-generation vehicles that provide a safer, more comfortable passenger experienceAnsys provides end-to-end, predictively accurate capabilities for virtual performance validation of the body systemHyundai motor company named Ansys Mechanical™ and Ansys LS-DYNA™ its preferred structural analysis solutions following a rigorous 18-month competitive evaluationPITTSBURGH, March 5, 2024 /PRNewswire/ -- Hyundai motor company named Ansys (NASDAQ: ANSS) a preferred supplier of structural simulation solutions for body system analysis that will ultimately support improvements to the safety and comfort of tomorrow's passengers. Ansys' strong market strategy, predictive accuracy, and commitment to product development rose above competitive offerings to become Hyundai's preferred supplier.Car body torsional rigidity testFor automotive companies with well-established product development processes, transitioning from one simulation tool to another demands extensive time and strict evaluation standards. Hyundai benchmark tested multiple simulation solutions over the course of 18 months, exploring areas such as model analysis accuracy, high-performance computing throughput, and future product strategy.Ansys Mechanical, the leading finite element analysis tool, and LS-DYNA, the leading explicit simulation tool for crash safety analysis, outperformed competitors and demonstrated stronger analysis accuracy, better performance in data processing, and a robust future technology development strategy. These high-performance capabilities will be utilized in the analysis of body system durability, stiffness, and strength."Adopting a new simulation product requires detailed application and operational planning of the solution for each vehicle development stage, and thorough validation by both the manufacturer and solution supplier," said Ill-Joo Noh, MVP and small sized vehicle chassis and body CAE team of Hyundai motor company. "To remain leaders in the increasingly technological industry, we must work closely with our partners to ensure our current and future needs are met. Ansys demonstrated its excellent simulation performance meets our current and future requirements, proving it can operate at scale for complex solutions."Story continues"Hyundai's evaluation and decision illustrate Ansys' ability to meet the needs of the automotive industry's biggest and most complex engineering challenges," said Shane Emswiler, senior vice president of products at Ansys. "We are continuously enhancing Mechanical to work seamlessly with LS-DYNA to provide our partners with a full solution. Ansys and Hyundai share an unwavering commitment to innovation and quality, and together we will usher in a new era of safe, comfortable, and reliable vehicles."/ About AnsysOur Mission: Powering Innovation that Drives Human Advancement™When visionary companies need to know how their world-changing ideas will perform, they close the gap between design and reality with Ansys simulation. For more than 50 years, Ansys software has enabled innovators across industries to push boundaries by using the predictive power of simulation. From sustainable transportation to advanced semiconductors, from satellite systems to life-saving medical devices, the next great leaps in human advancement will be powered by Ansys.Ansys and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.ANSS–C/ ContactsMediaMary Kate Joyce724.820.4368marykate.joyce@ansys.com InvestorsKelsey DeBriyn724.820.3927kelsey.debriyn@ansys.com  Ansys logo. (PRNewsFoto/ANSYS, Inc.)CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/ansys-named-preferred-supplier-for-hyundai-motor-companys-next-gen-vehicle-analysis-302079071.htmlSOURCE Ansys

PR Newswire

Ansys Named Preferred Supplier for Hyundai Motor Company's Next-Gen Vehicle Analysis

https://finance.yahoo.com/news/ansys-named-preferred-supplier-hyundai-140000404.html

746dd52d-4bbc-333f-953d-1f9882dce84f

AON

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 Aon plc (NYSE:AON) in the fourth quarter 2023 investor letter. Headquartered in Dublin, Ireland, Aon plc (NYSE:AON) is a professional service company that provides advice and solutions on risk, retirement, and health. On February 23, 2024, AON PLC (NYSE:AON) stock closed at $315.32 per share. One-month return of AON PLC (NYSE:AON) was 5.67%, and its shares gained 4.21% of their value over the last 52 weeks. AON PLC (NYSE:AON) has a market capitalization of $62.527 billion.Polen Global Growth Strategy stated the following regarding Aon plc (NYSE:AON) in its fourth quarter 2023 investor letter:"AON PLC's (NYSE:AON) stock price underperformed this past quarter following the announcement of the company’s acquisition of NFP, a middle market insurance broker, for $13 billion. Though the deal complements Aon’s current business, it is expected to be dilutive to earnings in the near term, prompting a sell-off in the shares. We will continue to assess the merits of the NFP transaction, but it does not currently change our long-term view of Aon, which we view as a steady, durable, low-teens earnings compounder."A professional financial advisor giving guidance in a modern office, to illustrate the wealth advisory services that the company provides.Story continuesAon plc (NYSE:AON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Aon plc (NYSE:AON) was held by 57 hedge fund portfolios, up from 48 in the previous quarter, according to our database.We discussed Aon plc (NYSE:AON) in another article and shared the list of best dividend stocks to buy according to Warren Buffett. 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:Bill Gates’ 16 Dividend Stocks To Buy25 Cheapest Countries to Fly to From the USA in 202413 Best Bank Stocks To Invest In For Long-TermDisclosure: None. This article is originally published at Insider Monkey.

Insider Monkey

Should You Hold Aon plc (AON)?

https://finance.yahoo.com/news/hold-aon-plc-aon-084910528.html

906e39a7-3a31-3c81-a266-20a7a8671e6a

AON

On February 23, 2024, Lisa Stevens, Chief People Officer of Aon PLC (NYSE:AON), executed a sale of 13,000 shares of the company. The transaction was filed with the SEC and can be found in detail here.Warning! GuruFocus has detected 4 Warning Sign with AON.Aon PLC is a global professional services firm providing a broad range of risk, retirement, and health solutions. The company operates through a network of offices worldwide, offering services such as risk management, insurance and reinsurance brokerage, human resource consulting, and outsourcing services.Over the past year, the insider has sold a total of 13,000 shares and has not made any purchases of Aon PLC stock. The insider transaction history for Aon PLC indicates a pattern of more insider sales than buys over the past year, with 2 insider buys and 5 insider sells recorded.On the date of the insider's recent sale, shares of Aon PLC were trading at $315.26, resulting in a market capitalization of $62.35 billion. The price-earnings ratio of the stock stands at 25.19, which is above both the industry median of 12.47 and the company's historical median price-earnings ratio.The stock's price-to-GF-Value ratio is 0.91, with a GF Value of $346.58, indicating that Aon PLC is considered Fairly Valued according to GuruFocus's valuation model. The GF Value is derived from historical trading multiples, a GuruFocus adjustment factor based on the company's past performance, and future business performance estimates from Morningstar analysts.Aon PLC Chief People Officer Lisa Stevens Sells 13,000 SharesAon PLC Chief People Officer Lisa Stevens Sells 13,000 SharesThis 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

Aon PLC Chief People Officer Lisa Stevens Sells 13,000 Shares

https://finance.yahoo.com/news/aon-plc-chief-people-officer-032007676.html

edaabd47-580b-37b2-97e9-00f8195f4982

AON

DUBLIN, March 7, 2024 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, today announced its acquisition of Humn.ai's technology assets and intellectual property to strengthen the firm's commercial fleet proposition."It is more important than ever for our fleet and mobility clients to have access to data-driven insights and tools that inform their risk and business strategies," said Jillian Slyfield, chief innovation officer at Aon. "Today's announcement is a testament to our ongoing investment in technology to build innovative offerings that address evolving client needs."This new capability will provide Aon's clients with a real-time view into commercial fleet performance to make better decisions to reduce accidents and lower the total cost of risk. While managing overall risk and insurance costs, the artificial-intelligence powered platform provides actionable insights based on driver, vehicle and contextual data to help both traditional and sharing economy fleets.This investment builds on Aon's market leading position by further advancing its industry leading analytics, insights and technology to serve fleet and mobility clients. Aon is now expanding the reach of this technology to launch a comprehensive risk analytics suite that will deliver highly personalized data-driven insights at the portfolio, fleet and driver level."Fleet and mobility business models require data-driven insights and tailored risk transfer options to unlock their full potential," said Curtis Scott, executive vice president of Future Mobility and Digital Economy at Aon. "Today's announcement accelerates our progress toward delivering differentiated value by marrying client, carrier and environmental data to help our clients better understand their fleets and drive growth and performance."About AonAon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries and sovereignties with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business.Story continuesFollow Aon on LinkedIn, X, Facebook and Instagram. Stay up-to-date by visiting Aon's newsroom and sign up for news alerts here.Media Contactmediainquiries@aon.comToll-free (U.S., Canada and Puerto Rico): +1 833 751 8114International: +1 312 381 3024Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries and sovereignties with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business. Follow Aon on LinkedIn, X, Facebook and Instagram. Stay up-to-date by visiting Aon’s newsroom and sign up for news alerts here. (PRNewsfoto/Aon plc)CisionView original content to download multimedia:https://www.prnewswire.com/news-releases/aon-acquires-ai-powered-platform-to-help-fleet-and-mobility-clients-make-better-insight-driven-decisions-302081808.htmlSOURCE Aon plc

PR Newswire

Aon Acquires AI-Powered Platform to Help Fleet and Mobility Clients Make Better, Insight-Driven Decisions

https://finance.yahoo.com/news/aon-acquires-ai-powered-platform-140000537.html

3f0e2154-fad4-3f58-9c68-0af50ffc160a

AON

Aon plc AON recently announced that it has acquired the technology assets and intellectual property of Humn.ai. Aon, as a professional services firm, will benefit from enhanced offerings to clients, further improving its core value proposition. The new capability will provide tools and data-powered insights, which are expected to improve business decision making.This move bodes well for AON’s Commercial Risk Solutions business, which experienced an organic revenue growth of 4% year over year in the fourth quarter. More commissions earned will increase the company’s top line in the future. This collaboration will benefit from the AI capability, aiding Aon’s clients to get a real-time view of their fleet performance, thereby reducing the total cost of risk and accidents. The AI platform will provide insights based on vehicle, driver and contextual data.This initiative highlights Aon’s continuous investments in technology and innovative products. Aon will be able to further advance its analytics, insights and technology footprint, by serving mobility and fleet clients. The company is also expanding this technology’s reach by launching a comprehensive risk analytics offering to deliver personalized data-driven insights. AON aims to provide innovative solutions to help clients make better decisions regarding their insurance coverage.This partnership marks a significant step toward achieving the goal of technological innovation and better customer-centric services. The company aims to deliver mid-single-digit or higher organic revenue growth for 2024 and beyond. Moves like this should lend a hand in achieving its long-term growth objectives. Moreover, enhanced offerings will help the company win and retain more customers.Price PerformanceShares of Aon have gained 8.8% year to date compared with the industry’s rise of 11.3%.Zacks Investment ResearchImage Source: Zacks Investment ResearchZacks Rank & Key PicksAon currently carries a Zacks Rank #3 (Hold).Story continuesSome better-ranked stocks from the Brokerage Insurance space are Ryan Specialty Holdings, Inc. RYAN, Brown & Brown, Inc. BRO and Erie Indemnity Company ERIE. While Ryan Specialty sports a Zacks Rank #1 (Strong Buy), Brown & Brown and Erie Indemnity carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Ryan Specialty has a decent track record of beating earnings estimates in two of the last four quarters, meeting twice, the average being 5.1%. In the year-to-date period, RYAN has gained 26.2%.The Zacks Consensus Estimate for Ryan Specialty 2024 and 2025 earnings per share (EPS) is pegged at $1.77 and $2.13, indicating a year-over-year increase of 28.3% and 20.3%, respectively.The Zacks Consensus Estimate for Brown & Brown 2024 and 2025 EPS is pegged at $3.20 and $3.48, indicating a year-over-year increase of 13.9% and 8.6%, respectively. In the year-to-date period, BRO has gained 20.7%.BRO beat estimates in each of the last four quarters, the average being 11.2%.Erie Indemnity’s bottom line outpaced estimates in three of the trailing four quarters, missing once, the average being 11.2%. The Zacks Consensus Estimate for ERIE’s 2024 earnings indicates an 18.3% rise, while the same for revenues suggests 11.4% growth from the respective prior-year reported figures. The consensus mark for ERIE’s 2024 earnings has moved 2.4% north in the past 30 days.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 reportAon plc (AON) : Free Stock Analysis ReportBrown & Brown, Inc. (BRO) : Free Stock Analysis ReportErie Indemnity Company (ERIE) : Free Stock Analysis ReportRyan Specialty Holdings Inc. (RYAN) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

AON Acquires Humn.ai to Enhance Fleet & Mobility Offerings

https://finance.yahoo.com/news/aon-acquires-humn-ai-enhance-141200935.html

b4b1fa03-1a11-3534-89c6-9b922442fd81

AOS

To find a multi-bagger stock, what are the underlying trends we should look for in a business? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So when we looked at the ROCE trend of A. O. Smith (NYSE:AOS) we really liked what we saw.What Is Return On Capital Employed (ROCE)?For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for A. O. Smith:Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)0.33 = US$741m ÷ (US$3.2b - US$945m) (Based on the trailing twelve months to December 2023).Therefore, A. O. Smith has an ROCE of 33%. In absolute terms that's a great return and it's even better than the Building industry average of 16%. Check out our latest analysis for A. O. Smith roceAbove you can see how the current ROCE for A. O. Smith compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering A. O. Smith here for free.How Are Returns Trending?A. O. Smith has not disappointed with their ROCE growth. Looking at the data, we can see that even though capital employed in the business has remained relatively flat, the ROCE generated has risen by 36% over the last five years. So our take on this is that the business has increased efficiencies to generate these higher returns, all the while not needing to make any additional investments. The company is doing well in that sense, and it's worth investigating what the management team has planned for long term growth prospects.The Bottom Line On A. O. Smith's ROCETo bring it all together, A. O. Smith has done well to increase the returns it's generating from its capital employed. And with a respectable 65% awarded to those who held the stock over the last five years, you could argue that these developments are starting to get the attention they deserve. Therefore, we think it would be worth your time to check if these trends are going to continue.Story continuesBefore jumping to any conclusions though, we need to know what value we're getting for the current share price. That's where you can check out our FREE intrinsic value estimation that compares the share price and estimated value.High returns are a key ingredient to strong performance, so check out our free list ofstocks earning high returns on equity with solid balance sheets.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.

Investors Shouldn't Overlook A. O. Smith's (NYSE:AOS) Impressive Returns On Capital

https://finance.yahoo.com/news/investors-shouldnt-overlook-o-smiths-131732967.html

a6bc7c11-d898-3d24-b18b-ccf82f866483

AOS

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.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 This 1 Growth Stock Should Be On Your WatchlistGrowth investors build their portfolios around companies that are financially strong and have a bright future, and the Growth Style Score helps take projected and historical earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.A.O. Smith (AOS)Headquartered in Milwaukee, WI, A. O. Smith Corporation is one of the leading manufacturers of commercial and residential water heating equipment, and water treatment products of the world. The company specializes in offering innovative, and energy-efficient solutions and products, which are developed and sold on a global platform.AOS sits at a Zacks Rank #3 (Hold), holds a Growth Style Score of B, and has a VGM Score of A. Earnings and sales are forecasted to increase 6.3% and 4% year-over-year, respectively.Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.05 to $4.05 per share. AOS also boasts an average earnings surprise of 12%.Looking at cash flow, A.O. Smith is expected to report cash flow growth of 15.5% this year; AOS has generated cash flow growth of 4.6% over the past three to five years.AOS should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.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 reportStory continuesA. O. Smith Corporation (AOS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Here's Why A.O. Smith (AOS) is a Strong Growth Stock

https://finance.yahoo.com/news/heres-why-o-smith-aos-144507974.html

a027d618-acfc-33c3-a5a6-2ca1a9fc1f0b

AOS

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.Why This 1 Growth Stock Should Be On Your WatchlistDifferent than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.A.O. Smith (AOS)Headquartered in Milwaukee, WI, A. O. Smith Corporation is one of the leading manufacturers of commercial and residential water heating equipment, and water treatment products of the world. The company specializes in offering innovative, and energy-efficient solutions and products, which are developed and sold on a global platform.AOS sits at a Zacks Rank #3 (Hold), holds a Growth Style Score of B, and has a VGM Score of B. Earnings and sales are forecasted to increase 6.8% and 3.9% year-over-year, respectively.Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.07 to $4.07 per share. AOS boasts an average earnings surprise of 12%.A.O. Smith is also cash rich. The company has generated cash flow growth of 4.6%, and is expected to report cash flow expansion of 15.5% in 2024.Investors should take the time to consider AOS for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.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 reportStory continuesA. O. Smith Corporation (AOS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Are You a Growth Investor? This 1 Stock Could Be the Perfect Pick

https://finance.yahoo.com/news/growth-investor-1-stock-could-144503263.html

755bb178-33c3-33ca-96ac-0ab89cfa7feb

AOS

It has been about a month since the last earnings report for EnerSys (ENS). Shares have added about 1.6% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is EnerSys 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.Enersys Q3 Earnings Beat Estimates, Revenues MissEnersys reported third-quarter fiscal 2024 (ended Dec 31, 2023) adjusted earnings of $2.56 per share, which surpassed the Zacks Consensus Estimate of $2.55. The bottom line surged 102% year over year due to lower sales costs.Enersys’ total revenues of $861.5 million missed the consensus estimate of $897 million. The top line declined 6.4% year over year due to a 7% decrease in organic sales, which was partially offset by a 1% increase in pricing.Segmental DiscussionThe Energy Systems segment’s sales (accounting for 43.4% of total sales) were $373.5 million, down 14% year over year. This compares with the Zacks Consensus Estimate of $397 million. Segmental revenues decreased due to capital spending pauses of telecommunication and broadband customers. Price/mix had a positive impact of 1%, while organic revenues decreased 15% year over year.The Motive Power segment generated revenues of $355.4 million (accounting for 41.3% of total sales), down 1.8% year over year. The consensus estimate for segmental revenues was $371 million. The downside was due to a 3% decrease in organic sales, partially offset by a 1% favorable impact from acquisitions.The Specialty segment’s sales were $132.6 million (accounting for 15.4% of total sales), up 6.8% year over year. The consensus estimate for the same was $133 million. Organic volume increased sales by 6% year over year and foreign currency translation had a positive impact of 1%.Story continuesMargin ProfileIn the reported quarter, EnerSys' cost of sales decreased 18.2% year over year to $511 million. Gross profit in the quarter increased 16.4% year over year to $248.6 million, while the gross margin increased 760 basis points (bps) to 30.7%.Operating expenses increased 7.1% year over year to $143.9 million. Adjusted operating earnings surged 53.5% year over year to $130.3 million. The margin increased 590 bps year over year to 15.1%.Balance Sheet and Cash FlowAt the end of the third quarter of fiscal 2024, EnerSys had cash and cash equivalents of $332.7 million compared with $346.7 million at the end of fiscal 2023. Long-term debt (net of unamortized debt issuance costs) was $880.8 million compared with $1.04 billion at the fiscal 2023 end.EnerSys generated net cash of $320.2 million from operating activities in the first nine months of fiscal 2024 against $135.8 million in the year-ago period. Capital expenditure totaled $59 million compared with $57.5 million in the previous year’s period.In the first nine months of fiscal 2024, ENS rewarded its shareholders with a dividend payout of $25.4 million, up 18.7% year over year.Fiscal Q4 GuidanceFor the fourth quarter of fiscal 2024, EnerSys expects adjusted earnings to be $1.98-$2.08 per share. This includes 80-90 cents of IRC 45X tax benefits under the IRA. The gross margin is expected to be in the range of 26-28%. The company expects capital expenditures to be approximately $80-100 million.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.The consensus estimate has shifted -8.72% due to these changes.VGM ScoresAt this time, EnerSys has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, 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 A. 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, EnerSys has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerEnerSys belongs to the Zacks Manufacturing - Electronics industry. Another stock from the same industry, A.O. Smith (AOS), has gained 8% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.A.O. Smith reported revenues of $988.1 million in the last reported quarter, representing a year-over-year change of +5.6%. EPS of $0.97 for the same period compares with $0.86 a year ago.A.O. Smith is expected to post earnings of $0.98 per share for the current quarter, representing a year-over-year change of +4.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for A.O. Smith. 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 reportEnersys (ENS) : Free Stock Analysis ReportA. O. Smith Corporation (AOS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

EnerSys (ENS) Up 1.6% Since Last Earnings Report: Can It Continue?

https://finance.yahoo.com/news/enersys-ens-1-6-since-163051531.html

49c6d958-7cca-33f0-b46a-a94550d7fc73

APA

APA (NASDAQ:APA) Full Year 2023 ResultsKey Financial ResultsRevenue: US$8.19b (down 25% from FY 2022).Net income: US$2.86b (down 22% from FY 2022).Profit margin: 35% (up from 34% in FY 2022). The increase in margin was driven by lower expenses.EPS: US$9.27 (down from US$11.07 in FY 2022).earnings-and-revenue-growthAll figures shown in the chart above are for the trailing 12 month (TTM) periodAPA EPS Beats ExpectationsRevenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 92%.Looking ahead, revenue is forecast to grow 2.4% p.a. on average during the next 2 years, compared to a 1.5% growth forecast for the Oil and Gas industry in the US.Performance of the American Oil and Gas industry.The company's shares are down 4.9% from a week ago.Risk AnalysisYou should learn about the 2 warning signs we've spotted with APA (including 1 which is 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.

APA Full Year 2023 Earnings: EPS Beats Expectations

https://finance.yahoo.com/news/apa-full-2023-earnings-eps-120820798.html

5aed0f8b-6e01-35a8-aa3a-e9cd269f5e61

APA

APA CorporationHOUSTON, Feb. 26, 2024 (GLOBE NEWSWIRE) -- APA Corporation (NASDAQ: APA) announced today that the applicable statutory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired on Feb. 22, 2024. Assuming both APA and Callon shareholder approvals are obtained, the closing of the acquisition is expected to occur on or about April 1, 2024. APA and Callon have scheduled separate shareholder meetings for March 27, 2024, for their respective shareholders to vote on the transaction. APA shareholders can join the virtual meeting by registering in advance at www.proxydocs.com/APA.“We are pleased to be taking this next step toward the closing of the Callon acquisition, which is scheduled to take place in just under three months following the January announcement,” said John J. Christmann IV, APA’s chief executive officer. “This transaction is expected to be accretive on all financial metrics and offers significant cost synergies. We look forward to integrating the Callon assets and providing more information about the Permian Basin outlook from the combined assets. We are confident that we will deliver considerable future value for both companies’ shareholders.”In anticipation of the closing of the Callon transaction, APA published a presentation today highlighting its top-tier performance in the Permian Basin. The presentation includes more information about the company’s progress in the Permian Basin, its proprietary approach to unconventional development, and incremental details on the planned integration of Callon.“We have achieved top-tier well results and best-in-class productivity improvements in both the Midland and Delaware Basins,” Christmann said. “The company has delivered high returns and strong oil volume growth through extensive data collection and analysis and by applying proprietary workflows – from planning through execution – that have driven substantial drilling efficiency gains.”Story continuesClick here for the presentation or view it directly on APA’s website. The APA subsidiary Apache Corporation operates the majority of the company’s assets in the Permian Basin.About APAAPA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com.Forward-Looking StatementsThis news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “continues,” “could,” “estimates,” “expects,” “goals,” “guidance,” “may,” “might,” “outlook,” “possibly,” “potential,” “projects,” “prospects,” “should,” “will,” “would,” and similar references to future periods, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about the closing of the proposed acquisition of Callon and the expected benefits of such transaction. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations, including the following: uncertainties as to whether the potential transaction will be consummated on the expected time period or at all, or if consummated, will achieve its anticipated benefits and projected synergies within the expected time period or at all; APA’s ability to integrate Callon’s operations in a successful manner and in the expected time period; the occurrence of any event, change, or other circumstance that could give rise to the termination of the transaction; risks that the anticipated tax treatment of the potential transaction is not obtained; unforeseen or unknown liabilities; customer, shareholder, regulatory, and other stakeholder approvals and support; unexpected future capital expenditures; potential litigation relating to the potential transaction that could be instituted against APA and Callon or their respective directors; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the effect of the announcement, pendency, or completion of the potential transaction on the parties’ business relationships and business generally; risks that the potential transaction disrupts current plans and operations of APA or Callon and their respective management teams and potential difficulties in Callon’s ability to retain employees as a result of the transaction; negative effects of the announcement and the pendency or completion of the proposed acquisition on the market price of APA’s or Callon’s common stock and/or operating results; rating agency actions and APA’s and Callon’s ability to access short-and long-term debt markets on a timely and affordable basis; various events that could disrupt operations, including severe weather, such as droughts, floods, avalanches, and earthquakes, and cybersecurity attacks, as well as security threats and governmental response to them, and technological changes; labor disputes; changes in labor costs and labor difficulties; the effects of industry, market, economic, political, or regulatory conditions outside of APA’s or Callon’s control; and legislative, regulatory, and economic developments targeting public companies in the oil and gas industry. See “Risk Factors” in APA’s Form 10-K for the year ended December 31, 2023 and in APA’s definitive proxy statement/prospectus, dated February 16, 2024, relating to the transaction, for a discussion of risk factors that could affect the proposed transaction and our and Callon’s businesses. Any forward-looking statement made in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. APA and its subsidiaries undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.No Offer or SolicitationThis news release is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.Additional Information about the Merger and Where to Find ItIn connection with the proposed transaction, APA has filed with the U.S. Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4 that includes a joint proxy statement of APA and Callon and that also constitutes a prospectus of APA common stock. The registration statement was declared effective on February 15, 2024, and APA filed a prospectus on February 16, 2024 and Callon filed a definitive proxy statement on February 16, 2024. APA and Callon commenced mailing of the definitive joint proxy statement/prospectus to their respective shareholders on or about February 16, 2024. Each of APA and Callon may also file other relevant documents with the SEC regarding the proposed transaction. This document is not a substitute for the definitive joint proxy statement/prospectus or registration statement or any other document that APA or Callon may file with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, JOINT PROXY STATEMENT/PROSPECTUS, AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the registration statement and the definitive joint proxy statement/prospectus and other documents containing important information about APA, Callon, and the proposed transaction, once such documents are filed with the SEC through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by APA will be available free of charge on APA’s website at https://investor.apacorp.com. Copies of the documents filed with the SEC by Callon will be available free of charge on Callon’s website at https://callon.com/investors.Participants in the SolicitationAPA, Callon, and certain of their respective directors, executive officers, and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of APA, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in (i) APA’s proxy statement for its 2023 Annual Meeting of Shareholders, which was filed with the SEC on April 11, 2023 (and which is available at https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/1841666/000119312523097278/d434054ddef14a.htm), including under the headings “Corporate Governance”, “Election of Directors (Proposal Nos. 1–10)”, “Information about Our Executive Officers”, “Executive and Director Compensation”, “Securities Ownership and Principal Holders”, (ii) APA’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 22, 2024 (and which is available at https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/0001841666/000178403124000003/apa-20231231.htm), including under the headings “Item 10. Directors, Executive Officers and Corporate Governance”, “Item 11. Executive Compensation”, “Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters”, “Item 13. Certain Relationships and Related Transactions and Director Independence”, and (iii) to the extent holdings of APA’s securities by its directors or executive officers have changed since the amounts set forth in APA’s proxy statement for its 2023 Annual Meeting of Shareholders, such changes have been or will be reflected on Initial Statement of Beneficial Ownership of Securities on Form 3, Statement of Changes in Beneficial Ownership on Form 4, or Annual Statement of Changes in Beneficial Ownership on Form 5 filed with the SEC, which are available at EDGAR Search Results (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=1841666&type=&dateb=&owner=only&count=40&search_text=). Information about the directors and executive officers of Callon, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in (i) Callon’s definitive proxy statement for the proposed merger (available at https://www.sec.gov/Archives/edgar/data/928022/000119312524038126/d694457ddefm14a.htm), including under the headings “Board of Directors After Completion of the Merger” and “Interests of Callon’s Directors and Executive Officers in the Merger” (including the documents incorporated by reference therein), (ii) Callon’s proxy statement for its 2023 Annual Meeting of Shareholders, which was filed with the SEC on March 13, 2023 (and which is available at https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/928022/000092802223000047/cpe-20230309.htm), including under the headings “Proposal 1 – Election of Class II Directors”, “Executive Officers”,“Executive Compensation”, “Beneficial Ownership of Securities”, “Principal Shareholders and Management”, “Certain Relationships and Related Party Transactions”, (iii) Callon’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 26, 2024 (and which is available at https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/0000928022/000092802224000031/cpe-20231231.htm), including under the headings “Item 10. Directors, Executive Officers and Corporate Governance”, “Item 11. Executive Compensation”, “Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters”, “Item 13. Certain Relationships and Related Transactions and Director Independence”; and (iv) to the extent holdings of Callon’s securities by its directors or executive officers have changed since the amounts set forth in Callon’s definitive proxy statement for its 2023 Annual Meeting of Shareholders, such changes have been or will be reflected on Initial Statement of Beneficial Ownership of Securities on Form 3, Statement of Changes in Beneficial Ownership on Form 4, or Annual Statement of Changes in Beneficial Ownership on Form 5 filed with the SEC, which are available at EDGAR Search Results (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=928022&type=&dateb=&owner=only&count=40&search_text=). Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, are contained in the definitive joint proxy statement/prospectus and will be contained in other relevant materials to be filed with the SEC regarding the proposed transaction when such materials become available. Investors should read these materials carefully before making any voting or investment decisions. You may obtain free copies of these documents from APA or Callon using the sources indicated above.Contacts     Investor:(281) 302-2286Gary ClarkMedia:(713) 296-7276Alexandra FranceschiWebsite:www.apacorp.com    

GlobeNewswire

APA Corporation Announces Timeline For Closing of Callon Petroleum Company Transaction; Issues Investor Slide Deck Highlighting Top-Tier Permian Performance

https://finance.yahoo.com/news/apa-corporation-announces-timeline-closing-225100497.html

da4f74d1-d1a5-3c47-a9e1-0afd2f72d2c9

APD

Hydrogen is a volatile gas. When mishandled, hydrogen is flammable and can lead to deadly explosions.As an investment, hydrogen stocks have often proven similarly dangerous (metaphorically at least). Several leading pureplay hydrogen companies have seen their share prices implode over the past 24 months. Investors could be forgiven for overlooking the whole sector altogether.However, the truth is that hydrogen can be harnessed as a clean carbon-free fuel source which should be a vital part of humanity’s power solutions over the decades to come. Hydrogen is risky, to be certain. But that volatility can potentially turn into multibagger gains when managed correctly. These are three leading hydrogen stock investments that can make the most of this opportunity.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGlobal X Hydrogen ETF (HYDR)An image of a hexagon structure with the text H2 Hydrogen on a blue backgroundSource: Alexander Limbach / ShutterstockThe issue with hydrogen as an investment idea is that the industry is still a fledgling one. Some pureplay hydrogen companies such as Plug Power (NASDAQ:PLUG) and Ballard Power Systems (NASDAQ:BLDP) have run massive operating losses and face a challenging outlook going forward.Given the risk inherent in dilutive money-burning operations, most investors should probably steer clear of companies like those mentioned above. One way to reduce risk, though, is to buy a diversified basket of hydrogen stocks rather than trying to pick the individual winners.The Global X Hydrogen ETF (NASDAQ:HYDR) owns 26 different companies with varying exposures to hydrogen. It owns some of the deeply speculative names like Ballard Power Systems but also major industrial multinationals which are strongly profitable and sell hydrogen systems and solutions as part of a broader corporate strategy.In this way, investors get a more diversified angle into the hydrogen space. And there is considerable value here now, with HYDR shares down 55% over the past year, and down 75% since the ETF launched. When sentiment comes back for hydrogen, this ETF will ride that wave.Story continuesAir Products & Chemicals (APD)Air Products truck on motorway. APD stock.Source: Bjoern Wylezich / ShutterstockAir Products & Chemicals (NYSE:APD) is a specialty chemical company that produces oxygen, hydrogen, nitrogen, helium and other such gases for a wide variety of commercial and industrial uses.As it pertains to hydrogen specifically, Air Products & Chemicals is a veteran in the field. The company has sold hydrogen for more than sixty years, and it has hydrogen operations in more than 20 countries today. It owns and operates more than 100 hydrogen plants with capacity for about seven million kilograms of hydrogen today. It integrates that with the world’s largest hydrogen distribution network.APD stock plunged to 52-week-lows earlier this month on a weaker-than-expected earnings report. That makes for an opportunity in this global hydrogen leader. While this quarter was weak, the company maintained a strong forecast for 2024. In addition to its robust profitability from its diversified gas business, APD stock offers a solid 3.1% dividend yield.Linde (LIN)Logo of Linde AG (LIN) in Hanover, Germany - The Linde Group is a multinational chemical companySource: nitpicker / Shutterstock.comLinde (NASDAQ:LIN) is another industrial gas and chemical company. Hailing from the U.K., it sells the standard range of atmospheric gasses. It also has another attractive line of business in building turnkey gas plants for customers.Linde is currently reporting solid earnings, and LIN stock has surged to new highs as a result. Thus, it isn’t quite as timely of a buy as, say, APD stock or the hydrogen ETF.However, Linde is worth its higher valuation. The company is building out its own hydrogen production facilities, such as with this new plant expansion in Alabama. Its third-party solutions should allow Linde to profit from the growth of hydrogen as a fuel more broadly. All this makes LIN stock a lower-risk way to benefit as hydrogen’s fortunes grow.On the date of publication, Ian Bezek held a long position in APD stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.More From InvestorPlaceChatGPT IPO Could Shock the World, Make This Move Before the AnnouncementMusk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.It doesn’t matter if you have $500 or $5 million. Do this now.The post 3 Hydrogen Stocks That Could Be Multibaggers in the Making: February Edition appeared first on InvestorPlace.

InvestorPlace

3 Hydrogen Stocks That Could Be Multibaggers in the Making: February Edition

https://finance.yahoo.com/news/3-hydrogen-stocks-could-multibaggers-204048325.html

7fa1ba40-bd40-349e-a26f-d62bc83e1632

APD

The positive future of the U.S. economy is evident as the Inflation Reduction Act (IRA) continues to drive economic growth. With over 272 new clean energy projects announced, the IRA is creating jobs, fostering innovation and providing investment opportunities, especially within hydrogen stocks. Despite political challenges, the transition to a more sustainable economy is already generating job growth. This has positioned the U.S. as a global leader in green technology and offered investment opportunities for those embracing the shift towards sustainability. These hydrogen stocks are leading the change, investing in green profits in the coming years.Linde (LIN)Logo of Linde AG (LIN) in Hanover, Germany - The Linde Group is a multinational chemical company. Hydrogen StocksSource: nitpicker / Shutterstock.comFirst on our list of hydrogen stocks is Linde (NASDAQ:LIN), a global chemical company. Linde is the world’s largest industrial gas company by market share and revenue. LIN is valued at $431.63, a year-over-year increase of 32.99%.Linde is already established in the market but shows signs of future growth. The global hydrogen generation market size is anticipated to reach $257.9 billion in 2028.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFinancially, Linde improved on nearly every metric during Q3 2023. The company reported $1.57 billion in net income, marking a YOY increase of 22.94%. Net profit margin and EPS also received massive surges of $19.19 and $3.63 respectively. Overall, Q3 2023 proved successful for Linde, with the company outperforming previous years on EBITDA by 12.71%.Linde is set up for success through recent announcements of partnerships. In 2023, the company agreed to invest $1.8 billion to supply clean energy to a large-scale blue ammonia plant in Texas. As Linde continues to emphasize development, expect a climb to be one of the top hydrogen stocks to buy.Air Products & Chemicals (APD)Air Products truck on motorway. APD stock. Hydrogen StocksSource: Bjoern Wylezich / ShutterstockAir Products & Chemicals (NYSE:APD) is a global leader in the supply of industrial gases, liquefied natural gas and related equipment and applications expertise. Currently trading at $227, the 12-month average price target for APD is $245, with a high estimate of $250 10and a low estimate of $240.Story continuesThe net margin of ADP is an impressive 21.7%, surpassing industry averages. This signals robust profitability and effective cost management. Key performance metrics further underscore the company’s strength. The return on equity (ROE) stands out at 4.87%, indicating effective utilization of equity capital. Additionally, the return on assets (ROA) impressively exceeds industry averages at 2.2%, highlighting efficient asset utilization.APD is poised for significant growth, fueled by a strategic partnership with Eneco in the Netherlands. The recently signed 10-year Power Purchase Agreement (PPA) for renewable energy is a catalyst for this trajectory. Under the PPA, APD will source a major portion of its energy needs for nitrogen and oxygen production from the Vlagtwedde Solar PV farm. This commitment not only aligns with APD’s sustainability goals, but also positions the company to offset emissions equivalent to approximately 45,000 households.A consensus from 20 analysts showcases a bullish feeling towards APD, evident in a favorable buy rating of 2.3.Fusion Fuel Green (HTOO)a symbol with H2 (hydrogen) on it and a fill-up tank. Hydrogen StocksSource: Alexander Kirch / Shutterstock.comFusion Fuel Green (NASDAQ:HTOO) stands at the forefront of the renewable energy revolution. It specializes in the production of hydrogen across key markets such as Portugal, Spain and Morocco. Currently trading at $2.28, HTOO is up 310% in the past three months.HTOO commands a market cap of $19.43M and an enterprise value of $20.21M. Exhibiting financial resilience with a trailing P/E ratio of 2.80, HTOO recently revealed significant milestones in its Q3 Investor Update.HTOO achieved a major catalyst with European Commission approval for its HEVO-Portugal project, securing a spot in the Important Projects of Common European Interest Hy2Infra program. The €650 million initiative in Portugal, targets an annual production of 62,000 tonnes of green hydrogen. This endorsement enables Fusion Fuel to initiate funding talks with government entities and the European Investment Bank. HEVO-Portugal is envisioned as a pivotal player in Southern Europe’s green hydrogen hub. This will contribute to swift decarbonization and bolstering the European green hydrogen economy.Analysts gave this stock a rating of 2.7 marking it as a “Buy”, with an average price target of $2.43 and a current stock price of $2.28. HTOO thrives with a 310% three-month surge, strong financials and European Commission approval for the game-changing HEVO-Portugal project.On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.More From InvestorPlaceThe #1 AI Investment Might Be This Company You’ve Never Heard OfMusk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.It doesn’t matter if you have $500 or $5 million. Do this now.The post Wall Street Favorites: 3 Hydrogen Stocks With Strong Buy Ratings for February 2024 appeared first on InvestorPlace.

InvestorPlace

Wall Street Favorites: 3 Hydrogen Stocks With Strong Buy Ratings for February 2024

https://finance.yahoo.com/news/wall-street-favorites-3-hydrogen-220000980.html

1a6a1889-2773-342d-9f24-a5241dbc0aa3

APD

Air Products and Chemicals, Inc.  APD will showcase its latest advancements in "Smart Technology" capabilities for seafood processors at the Seafood Expo North America, which will take place from Mar 10 to Mar 12 at the Boston Convention and Exhibition Center.One of the innovations showcased will be Air Products' new Freshline Smart Technology, which allows customers to remotely control and monitor food processing processes. Air Products' Smart Technology employs sensors and wireless technology to optimize processes and monitor crucial parameters. Self-monitoring analysis enables users to view data in real-time, hence increasing efficiency, productivity and sustainability.In addition, Air items will demonstrate their Freshline IQF+ Tunnel Freezer, which has a highly efficient design that allows processors to create consistent, high-quality Individually Quick Frozen (IQF) items at higher throughputs than typical spray-freezing cryogenic IQF freezers.Air Products has been selling gases, equipment and technology to the food sector for more than 60 years. The company offers Freshline solutions to all types of customers, from major manufacturers with several product lines to small food processors with specialist goods. Air Products provides industrial gases in a variety of distribution options to meet each customer's needs.Shares of Air Products have lost 15.4% over the past year compared with a 13.3% decline of its industry.Zacks Investment ResearchImage Source: Zacks Investment ResearchAir Products, on its fiscal first-quarter call, said that it now expects fiscal 2024 adjusted EPS of $12.20-$12.50 (down from $12.80-$13.10 expected earlier), indicating 6-9% growth from the prior year’s adjusted EPS. For the second quarter of fiscal 2024, the company expects adjusted earnings per share in the range of $2.60-$2.75.Air Products expects capital expenditures in the range of $5 billion to $5.5 billion for fiscal 2024.Story continuesAir Products and Chemicals, Inc. Price and ConsensusAir Products and Chemicals, Inc. price-consensus-chart | Air Products and Chemicals, Inc. QuoteZacks Rank & Key PicksAir Products currently carries a Zacks Rank #4 (Sell).Better-ranked stocks in the basic materials space include United States Steel Corporation X, Carpenter Technology Corporation CRS and Alpha Metallurgical Resources Inc. AMR.United States Steel carrying a Zacks Rank #1 (Strong Buy). X beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 54.8%. The company’s shares have soared 59.3% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 27.1% in the past year.The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. It currently carries a Zacks Rank #1.  AMR delivered a trailing four-quarter earnings surprise of roughly 24.8%, on average. AMR shares are up around 105.5% in a year.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAir Products and Chemicals, Inc. (APD) : Free Stock Analysis ReportAlpha Metallurgical Resources, Inc. (AMR) : Free Stock Analysis ReportUnited States Steel Corporation (X) : Free Stock Analysis ReportCarpenter Technology Corporation (CRS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Air Products (APD) to Showcase Freshline at the Seafood Expo

https://finance.yahoo.com/news/air-products-apd-showcase-freshline-103500529.html

b7805ae0-ccc1-36e2-a75f-e404d8de7ab2

APD

The board of Air Products and Chemicals, Inc. (NYSE:APD) has announced that it will be paying its dividend of $1.77 on the 13th of May, an increased payment from last year's comparable dividend. This will take the annual payment to 2.9% of the stock price, which is above what most companies in the industry pay. See our latest analysis for Air Products and Chemicals Air Products and Chemicals' Dividend Is Well Covered By EarningsImpressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. Before making this announcement, Air Products and Chemicals was earning enough to cover the dividend, but it wasn't generating any free cash flows. No cash flows could definitely make returning cash to shareholders difficult, or at least mean the balance sheet will come under pressure.Looking forward, earnings per share is forecast to rise by 55.0% over the next year. If the dividend continues on this path, the payout ratio could be 47% by next year, which we think can be pretty sustainable going forward.historic-dividendAir Products and Chemicals Has A Solid Track RecordThe company has an extended history of paying stable dividends. The dividend has gone from an annual total of $2.84 in 2014 to the most recent total annual payment of $7.08. This implies that the company grew its distributions at a yearly rate of about 9.6% over that duration. Companies like this can be very valuable over the long term, if the decent rate of growth can be maintained.We Could See Air Products and Chemicals' Dividend GrowingThe company's investors will be pleased to have been receiving dividend income for some time. It's encouraging to see that Air Products and Chemicals has been growing its earnings per share at 6.9% a year over the past five years. The company is paying out a lot of its cash as a dividend, but it looks okay based on the payout ratio.In SummaryOverall, we always like to see the dividend being raised, but we don't think Air Products and Chemicals will make a great income stock. While Air Products and Chemicals is earning enough to cover the payments, the cash flows are lacking. We would probably look elsewhere for an income investment.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 2 warning signs for Air Products and Chemicals 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.

Air Products and Chemicals (NYSE:APD) Is Increasing Its Dividend To $1.77

https://finance.yahoo.com/news/air-products-chemicals-nyse-apd-121313755.html

4e986e6e-6e57-3bc7-b6b2-cf2c0bfaba44

APH

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.Amphenol (APH) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.While there are numerous reasons why the stock of this maker of fiber-optic products is a great growth pick right now, we have highlighted three of the most important factors below:Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.While the historical EPS growth rate for Amphenol is 14.4%, investors should actually focus on the projected growth. The company's EPS is expected to grow 8.4% this year, crushing the industry average, which calls for EPS growth of -39.3%.Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.Story continuesRight now, year-over-year cash flow growth for Amphenol is 0.9%, which is higher than many of its peers. In fact, the rate compares to the industry average of -18.7%.While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 9% over the past 3-5 years versus the industry average of 3.5%.Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.There have been upward revisions in current-year earnings estimates for Amphenol. The Zacks Consensus Estimate for the current year has surged 1.3% over the past month.Bottom LineWhile the overall earnings estimate revisions have made Amphenol a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.This combination indicates that Amphenol is a potential outperformer and a solid choice for growth investors.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 reportAmphenol Corporation (APH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Is Amphenol (APH) a Solid Growth Stock? 3 Reasons to Think "Yes"

https://finance.yahoo.com/news/amphenol-aph-solid-growth-stock-174507146.html

b7dee05f-5e30-3694-90d8-c5ed8af21734

APH

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.Why This 1 Growth Stock Should Be On Your WatchlistFor growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.Amphenol (APH)Amphenol designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable.APH boasts a Growth Style Score of B and VGM Score of B, and holds a Zacks Rank #2 (Buy) rating. Its bottom-line is projected to rise 8.3% year-over-year for 2024, while Wall Street anticipates its top line to improve by 4.7%.Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.04 to $3.26 per share. APH also boasts an average earnings surprise of 5.6%.Looking at cash flow, Amphenol is expected to report cash flow growth of 0.9% this year; APH has generated cash flow growth of 9% over the past three to five years.With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, APH should be on investors' short lists.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 reportAmphenol Corporation (APH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Here's Why Amphenol (APH) is a Strong Growth Stock

https://finance.yahoo.com/news/heres-why-amphenol-aph-strong-144512636.html

da5556a7-fe18-3607-8cb9-07a7034c8d9a

APH

A month has gone by since the last earnings report for Amphenol (APH). Shares have added about 5.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Amphenol 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 drivers.Amphenol's Q4 Earnings Beat Estimates, Revenues Up Y/YAmphenol’s fourth-quarter 2023 adjusted earnings of 82 cents per share beat the Zacks Consensus Estimate by 6.49%. The earnings figure increased 5.1% year over year.Net sales increased 2.7% year over year to $3.33 billion and beat the consensus mark by 5.89%. Organically, net sales decreased 1%.The top line benefited from higher revenues across the commercial air, defense, automotive and IT datacom end-markets.Quarterly DetailsHarsh Environment Solutions’ (27.1% of net sales) sales came in at $900.3 million, up 13.2% from the year-ago quarter’s levels.Communications Solutions’ (40.4% of net sales) sales were $1.35 billion, which decreased 6.3% year over year.Interconnect and Sensor Systems Solutions’ (32.5% of net sales) sales were $1.08 billion, up 7.3% year over year.Gross margin, on a GAAP basis, expanded 100 basis points (bps) year over year to 33.1%.Selling, general and administrative expenses, as a percentage of revenues, increased 70 bps on a year-over-year basis to 11.8%.Adjusted operating margin expanded 40 bps on a year-over-year basis to 21.2%.Balance SheetAs of Dec 31, 2023, Amphenol had cash and cash equivalents worth $1.66 billion, down from $1.73 billion as of Sep 30.Total debt was $4.34 billion as of Dec 31, 2023 compared with $4.29 billion as of Sep 30, 2023.During the quarter, the company purchased 1.3 million shares for $115 million. It also paid dividends of $126 million.The company completed four acquisitions — TPC Wire & Cable, Airmar Technology, LID Technologies and PCTEL — in the reported quarter.Story continuesGuidanceAmphenol expects first-quarter 2024 earnings between 71 cents and 73 cents per share, indicating growth between 3% and 6% year over year. Revenues are anticipated between $3.04 billion and $3.10 billion.How Have Estimates Been Moving Since Then?It turns out, estimates review flatlined during the past month.VGM ScoresCurrently, Amphenol has a nice Growth Score of B, though it is lagging a lot 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookAmphenol has a Zacks Rank #2 (Buy). We expect an above average 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 reportAmphenol Corporation (APH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Is Amphenol (APH) Up 5.6% Since Last Earnings Report?

https://finance.yahoo.com/news/why-amphenol-aph-5-6-163029527.html

6ddbbc9e-10dd-3254-9f5e-911280c6ac45

APH

Five— Uber Technologies Lam Research Applied Materials Nvidia and Advanced Micro Devices —are on the watch list of Jason Ware, Albion Financial Group’s chief investment officer. The sixth, Amphenol is the choice of Roy Leckie, executive director at Walter Scott and Partners, which owns the stock. Advanced Micro Devices: The company makes chips for data centers, a fast-growing segment because of high business demand for AI-powered cloud services.Continue reading

Barrons.com

6 Stocks to Buy—When the Market Finally Drops

https://finance.yahoo.com/m/7eabbbb2-706e-3c09-8edb-d37b2289fb5c/6-stocks-to-buy%E2%80%94when-the.html

7eabbbb2-706e-3c09-8edb-d37b2289fb5c

APH

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.Below, we take a look at Amphenol (APH), a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Amphenol currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.You can see the current list of Zacks #1 Rank Stocks here >>>Set to Beat the Market?In order to see if APH is a promising momentum pick, let's examine some Momentum Style elements to see if this maker of fiber-optic products holds up.A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.Story continuesFor APH, shares are up 3.11% over the past week while the Zacks Electronics - Connectors industry is up 1.84% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 5.99% compares favorably with the industry's 1.74% performance as well.While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Amphenol have risen 14.96%, and are up 39.36% in the last year. In comparison, the S&P 500 has only moved 12.57% and 27.72%, respectively.Investors should also take note of APH's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, APH is averaging 2,165,794 shares for the last 20 days.Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with APH.Over the past two months, 4 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost APH's consensus estimate, increasing from $3.22 to $3.27 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.Bottom LineTaking into account all of these elements, it should come as no surprise that APH is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Amphenol on your short list.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 reportAmphenol Corporation (APH) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Amphenol (APH) is a Great Momentum Stock: Should You Buy?

https://finance.yahoo.com/news/amphenol-aph-great-momentum-stock-170009932.html

ec55b4d7-42e9-3b51-b811-de9433fc6a85

APTV

Marathon Digital Holdings, Inc. MARA is slated to report its fourth-quarter 2023 results on Feb 28, after the bell.The company’s earnings surprise history has not been impressive. It delivered a trailing four-quarter negative earnings surprise of 65.5% on average.Marathon Digital Holdings, Inc. Price and EPS SurpriseMarathon Digital Holdings, Inc. price-eps-surprise | Marathon Digital Holdings, Inc. QuoteQ4 ExpectationsThe Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $138.2 million, indicating a more than 100% increase from the year-ago quarter’s actual figure. The consensus mark for the bottom line is pegged at 5 cents per share. The company reported a loss of 14 cents per share in the year-ago quarter.Marathon Digital's performance in the quarter is expected to have been positively impacted by an increase in bitcoin production and higher bitcoin prices on a year-over-year basis.What Our Model SaysOur proven model predicts a likely earnings beat for Marathon Digital 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. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Marathon Digital has an Earnings ESP of +100.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.Recent Earnings SnapshotsRobert Half RHI reported better-than-expected fourth-quarter 2023 results.Quarterly earnings of 83 cents per share beat the consensus mark by 1.2% but declined 39.4% year over year. RHI’s revenues of $1.5 billion beat the consensus mark by a slight margin but decreased 14.7% year over year.Aptiv APTV reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.Adjusted earnings of $1.4 per share beat the Zacks Consensus Estimate by 8.5% and increased 10.2% year over year. APTV’s revenues of $4.9 billion missed the Zacks Consensus Estimate by 0.5% but increased 6% year over year.Story continuesS&P Global SPGI reported mixed fourth-quarter results, wherein earnings missed the Zacks Consensus Estimate, but revenues beat the same.Adjusted EPS of $3.13 missed the Zacks Consensus Estimate by 0.6% but increased 23.2% year over year. Revenues of $3.2 billion surpassed the consensus estimate by 0.5% and improved 7.3% year over year.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 reportRobert Half Inc. (RHI) : Free Stock Analysis ReportMarathon Digital Holdings, Inc. (MARA) : Free Stock Analysis ReportS&P Global Inc. (SPGI) : Free Stock Analysis ReportAptiv PLC (APTV) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Marathon Digital (MARA) to Post Q4 Earnings: What's in Store?

https://finance.yahoo.com/news/marathon-digital-mara-post-q4-173500682.html

4e16cb45-9129-372c-b4df-072dc1f1e67b

APTV

Duolingo, Inc. DUOL is scheduled to report its fourth-quarter 2023 results on Feb 28, after the bell.The company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an average earnings surprise of 114%.Duolingo, Inc. Price and EPS SurpriseDuolingo, Inc. price-eps-surprise | Duolingo, Inc. QuoteQ4 ExpectationsThe Zacks Consensus Estimate for Duolingo’s revenues in the to-be-reported quarter is pegged at $147 million, indicating a 41.6% increase from the year-ago reported figure. The top line is likely to have reaped the benefits of the increase in daily and monthly average users and the surge in the number of subscribers.The consensus estimate for the bottom line in the to-be-reported quarter stands at 17 cents per share. The company reported a loss of 35 cents per share in the year-ago quarter. Cost discipline and increase in revenues are likely to have driven the bottom-line increase.What Our Model SaysOur model does not conclusively predict an earnings beat for Duolingo 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.DUOL has an Earnings ESP of 0.00% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.Recent Earnings SnapshotsRobert Half RHI reported better-than-expected fourth-quarter 2023 results.Quarterly earnings of 83 cents per share beat the consensus mark by 1.2% but declined 39.4% year over year. RHI’s revenues of $1.5 billion beat the consensus mark by a slight margin but decreased 14.7% year over year.Aptiv APTV reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.Story continuesAdjusted earnings of $1.4 per share beat the Zacks Consensus Estimate by 8.5% and increased 10.2% year over year. APTV’s revenues of $4.9 billion missed the Zacks Consensus Estimate by 0.5% but increased 6% year over year.S&P Global SPGI reported mixed fourth-quarter results, wherein earnings missed the Zacks Consensus Estimate, but revenues beat the same.Adjusted EPS of $3.13 missed the Zacks Consensus Estimate by 0.6% but increased 23.2% year over year. Revenues of $3.2 billion surpassed the consensus estimate by 0.5% and improved 7.3% year over year.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 reportRobert Half Inc. (RHI) : Free Stock Analysis ReportS&P Global Inc. (SPGI) : Free Stock Analysis ReportAptiv PLC (APTV) : Free Stock Analysis ReportDuolingo, Inc. (DUOL) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Duolingo (DUOL) to Report Q4 Earnings: What's in the Cards?

https://finance.yahoo.com/news/duolingo-duol-report-q4-earnings-173900401.html

7cb2fe23-0af4-3348-873f-001926ce1100

APTV

Limbach Holdings LMB is scheduled to release its fourth-quarter 2023 results on Mar 13, after the bell.The company has an impressive earnings surprise history. It outperformed the Zacks Consensus Estimate in all the four trailing quarters, delivering an earnings surprise of 92.1% on average.Limbach Holdings, Inc. Price and EPS SurpriseLimbach Holdings, Inc. price-eps-surprise | Limbach Holdings, Inc. QuoteQ4 ExpectationsLimbach Holdings’ top line in the to-be-reported quarter is expected to have decreased, mainly due to continued softness in the General Contractor Relationships. The company’s continued focus on increasing the Owner Direct Relationships segment’s contribution to the business is likely to have partially offset the decline. The Zacks Consensus Estimate for the top line is currently pegged at $131.3 million, indicating an 8.5% decline from the year-ago actual figure.The Zacks Consensus Estimate for the bottom line is pegged at 40 cents, 27.3% lower than the year-over-year figure. An increase in expenses is likely to have dented earnings in the quarter.What Our Model SaysOur proven model does not conclusively predict an earnings beat for LMB 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. But that’s not the case here. You can uncover the best stocks before they're reported with our Earnings ESP Filter.Limbach Holdings has an Earnings ESP of 0.00% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.Recent Earnings of Some Other Service ProvidersRobert Half RHI reported better-than-expected fourth-quarter 2023 results.Quarterly earnings of 83 cents per share beat the consensus mark by 1.2% but declined 39.4% year over year. RHI’s revenues of $1.5 billion beat the consensus mark by a slight margin but decreased 14.7% year over year.Aptiv APTV reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.Story continuesAdjusted earnings of $1.40 per share beat the Zacks Consensus Estimate by 8.5% and increased 10.2% year over year. APTV’s revenues of $4.9 billion missed the Zacks Consensus Estimate by 0.5% but increased 6% year over year.S&P Global SPGI reported mixed fourth-quarter results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same.Adjusted EPS of $3.13 missed the Zacks Consensus Estimate by 0.6% but increased 23.2% year over. Revenues of $3.2 billion surpassed the consensus estimate by 0.5% and improved 7.3% year over year.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 reportRobert Half Inc. (RHI) : Free Stock Analysis ReportS&P Global Inc. (SPGI) : Free Stock Analysis ReportLimbach Holdings, Inc. (LMB) : Free Stock Analysis ReportAptiv PLC (APTV) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Here's What to Expect From Limbach Holdings' (LMB) Q4 Earnings

https://finance.yahoo.com/news/heres-expect-limbach-holdings-lmb-160600395.html

07aad706-8201-3500-bcc9-259c732dd12d

APTV

UiPath, Inc. PATH will report its fourth-quarter fiscal 2024 results on Mar 13, after the bell.We expect a significant year-over-year improvement in the company’s top line in the to-be-reported quarter, driven by the efficiency of its end-to-end automation platform, new products and customer growth. The current Zacks Consensus Estimate for PATH’s revenues is pegged at $383.3 million, indicating a 24.2% year-over-year increase.UiPath, Inc. Revenue (TTM)UiPath, Inc. Revenue (TTM)UiPath, Inc. revenue-ttm | UiPath, Inc. QuoteThe consensus estimate for License revenues is pegged at $194 million, indicating 22% year-over-year growth. The consensus mark for Subscription services revenues is pegged at $178 million, indicating 28.1% year-over-year growth. The consensus mark for Professional services and other revenues stands at $11.7 million, indicating 5.7% year-over-year growth.An increase in revenues, along with operating discipline and expense management, is expected to have positively impacted the bottom line in the quarter. The current consensus estimate for earnings stands at 15 cents per share, flat with the year-ago actual figure.UiPath’s current Earnings ESP of 0.00% and Zacks Rank #3 (Hold), however, indicates that earnings may not beat estimates in the quarter. Our research shows that the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the odds of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.Recent Earnings of Some Other Service ProvidersRobert Half RHI reported better-than-expected fourth-quarter 2023 results.Quarterly earnings of 83 cents per share beat the consensus mark by 1.2% but declined 39.4% year over year. RHI’s revenues of $1.5 billion beat the consensus mark by a slight margin but decreased 14.7% year over year.Aptiv APTV reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.Story continuesAdjusted earnings of $1.4 per share beat the Zacks Consensus Estimate by 8.5% and increased 10.2% year over year. APTV’s revenues of $4.9 billion missed the Zacks Consensus Estimate by 0.5% but increased 6% year over year.S&P Global SPGI reported mixed fourth-quarter results, wherein earnings missed the Zacks Consensus Estimate, but revenues beat the same.Adjusted EPS of $3.13 missed the Zacks Consensus Estimate by 0.6% but increased 23.2% year over year. Revenues of $3.2 billion surpassed the consensus estimate by 0.5% and improved 7.3% 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 reportRobert Half Inc. (RHI) : Free Stock Analysis ReportUiPath, Inc. (PATH) : Free Stock Analysis ReportS&P Global Inc. (SPGI) : Free Stock Analysis ReportAptiv PLC (APTV) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Will Top-Line Improvement Aid UiPath's (PATH) Q4 Earnings?

https://finance.yahoo.com/news/top-line-improvement-aid-uipaths-122100467.html

a5aa6d38-45bb-3fc7-a055-c8ef56849a73

ARE

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a 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.Alexandria Real Estate Equities in FocusAlexandria Real Estate Equities (ARE) is headquartered in Pasadena, and is in the Finance sector. The stock has seen a price change of -5.91% since the start of the year. Currently paying a dividend of $1.27 per share, the company has a dividend yield of 4.26%. In comparison, the REIT and Equity Trust - Other industry's yield is 4.56%, while the S&P 500's yield is 1.62%.Taking a look at the company's dividend growth, its current annualized dividend of $5.08 is up 2.4% from last year. Alexandria Real Estate Equities has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 5.57%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Alexandria Real Estate Equities's current payout ratio is 57%, meaning it paid out 57% of its trailing 12-month EPS as dividend.Looking at this fiscal year, ARE expects solid earnings growth. The Zacks Consensus Estimate for 2024 is $9.44 per share, representing a year-over-year earnings growth rate of 5.24%.Story continuesBottom LineFrom greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, ARE is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).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 reportAlexandria Real Estate Equities, Inc. (ARE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Alexandria Real Estate Equities (ARE) is a Top Dividend Stock for Your Portfolio

https://finance.yahoo.com/news/why-alexandria-real-estate-equities-164505182.html

ab78b681-ea01-3dbc-a84f-2681c40b2f01

ARE

The surging market has left some strong companies behind, including in the realm of real estate dividend stocks. Now might be the time to consider adding a couple to the income-focused portion of a growth-and-income portfolio.Ten years is a good window to keep in mind when looking at long-term buy-and-hold stocks, and there's no time like the present to look for bargains in a bull market just recently born.Ten years is also a good measure to use as you look back on the past performance of your prospective purchases.Two real estate investment trusts (REITs) that I've been adding to regularly are retail landlord Agree Realty (NYSE: ADC) and life sciences space specialist Alexandria Real Estate Equities (NYSE: ARE).ARE Total Return Level ChartThere are more than 200 publicly traded REITs on the U.S. exchanges and as a sector they've largely missed out on the rally sparked by slowing inflation and the prospect of interest rate cuts. REITs, because they typically must finance portfolio growth, are particularly sensitive to interest rates and delays in the expected cuts this year have helped hamper their share price performance.However, as the chart above shows, Agree and Alexandria have easily outpaced the benchmark Vanguard Real Estate ETF in total return over the past decade.And while they're both well behind the greater market now, there's ample reason for optimism about their recovery, based on their track record of success focusing on their core businesses.Don't try this at homeAlexandria is in its 30th year of business as an owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in and around Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and North Carolina's Research Triangle.The portfolio has grown to about 73 million square feet of occupied space and space under development, including 1.2 million square feet delivered in the fourth quarter alone. Recent highlights include about 800,000 square feet leased in two Boston locations to Moderna and Eli Lilly, and a $300 million investment by AstraZeneca in a cell therapy manufacturing facility in Rockville, Maryland. Story continuesProviding specialized lab and support space helps inoculate San Diego-based Alexandria against the fears of permanent vacancies that now infect office REIT investing. The work of Alexandria's clients doesn't lend itself to spare bedrooms or dining room tables.Recession-resistant retail spaceMeanwhile, Agree Realty is a highly regarded retail REIT whose own tenant list largely comprises investment grade, e-commerce resistant, brand-name retailers such as Walmart, Home Depot, Tractor Supply Co., and Kroger.The suburban Detroit company now has a portfolio of 2,135 properties and 44.2 million square feet in 49 states. Like Alexandria, it is on the grow, leveraging its rock-solid balance sheet for $1.3 billion in 2023 acquisitions and with more than $1 billion in liquidity in place for this year.ARE Dividends Paid (TTM) ChartGrowing dividends, FFO, and optimismREITs are required by tax law to pay out at least 90% of their taxable income as dividends, and Agree and Alexandria have both steadily raised their payouts over the past 10 years, as the chart above shows. They also continue to produce growing funds from operations (FFO) to comfortably sustain those dividends.They're both well off their high-water marks in share price. Agree shares are trading at about $57, down from a 52-week high of $75 and yielding about 5.2%. Alexandria shares, meanwhile, are yielding about 4.3% and are trading at about $119 a share, sharply down from their 52-week high of $162.Analysts who follow these stocks rate them both as buys. We'll know more when the Fed begins delivering on interest rate reductions, which should give REITs, especially particularly solid ones like these, a boost. Meanwhile, they continue as solid dividend stocks. I'm still confident in them, too, as good buys for a decade or longer.Should you invest $1,000 in Alexandria Real Estate Equities right now?Before you buy stock in Alexandria Real Estate Equities, 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 Alexandria Real Estate Equities 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 12, 2024Marc Rapport has positions in Agree Realty, Alexandria Real Estate Equities, and Vanguard Specialized Funds-Vanguard Real Estate ETF. The Motley Fool has positions in and recommends Alexandria Real Estate Equities, Home Depot, Vanguard Specialized Funds-Vanguard Real Estate ETF, and Walmart. The Motley Fool recommends AstraZeneca Plc, Kroger, and Moderna. The Motley Fool has a disclosure policy.2 Real Estate Dividend Stocks You Can Buy and Hold for the Next Decade was originally published by The Motley Fool

Motley Fool

2 Real Estate Dividend Stocks You Can Buy and Hold for the Next Decade

https://finance.yahoo.com/news/2-real-estate-dividend-stocks-105800405.html

758507ad-06d3-358d-87e3-d7e93ff6273c

ARE

Alexandria Real Estate Equities, Inc. ARE recently clinched a renewal and 10-year lease extension with Takeda Pharmaceutical, a longstanding credit tenant, for 222,925 rentable square feet at 75/125 Binney Street at Kendall Square in the Cambridge submarket.Being a significant early renewal, the lease extension will run through Mar 31, 2040. This move will ensure steady rental revenues from this property for the long term.Takeda is an R&D-driven & patient-focused pharmaceutical company, providing highly innovative medicines across therapeutic areas. Its long-term commitment to the Alexandria Center at Kendall Square mega campus is demonstrated by its early renewal, which also emphasizes how crucial Alexandria's Labspace infrastructure is.Cambridge's Kendall Square boasts a dense concentration of innovative and highly diversified life science companies, leading universities and renowned research institutions and a rich life science talent pool in the nation.In 1999, Alexandria made its entry into the Cambridge submarket. Since then, ARE’s footprint has expanded to three premier mega campuses, Alexandria Technology Square, the Alexandria Center at One Kendall Square and the Alexandria Center at Kendall Square, totaling more than 5.4 million rentable square feet in operation. Known as "the most innovative square mile on the planet," Kendall Square in Cambridge is home to these mega campuses.As of Dec 31, 2023, the Alexandria Center at Kendall Square mega campus had 2.8 million rentable square-foot of operating properties and approximately 216,000 rentable square-foot potential future development. This strategic location is positioned to meet the need for space for some of the most innovative life science companies in the world, like Takeda, as well as provide a path for future growth.Under the terms of the lease extension at the LEED Gold certified research facility, Takeda and Alexandria will work together to improve the building's sustainability and environmental performance through a range of targeted initiatives, such as encouraging occupant health and wellness, prioritizing energy efficiency and reducing water usage.Story continuesAfter successfully completing the development of 75/125 Binney Street in 2015, Alexandria sold a 60% partial interest stake in the property to an institutional investor in 2019 for $438 million, or $1,880 per rentable square foot. The partial interest sale supported the company's goal to provide its stockholders with long-term value, representing $202.2 million in excess of book value and a 4.3% cash capitalization rate.Alexandria caters to a diversified tenant base of high-quality companies ranging from multinational pharmaceutical companies, public and private biotechnology companies, manufacturers of complex medicines and top-tier investment-grade companies and institutions as well as technology entities.As of Dec 31, 2023, investment-grade or publicly traded large-cap tenants accounted for 52% of the annual rental revenues in effect. The weighted average remaining lease term of all tenants was 7.4 years as of the end of the fourth quarter. For Alexandria’s top 20 tenants, it was 9.6 years. The lease term has remained steady over the recent quarters. Given the healthy demand for its premium assets, this upbeat trend is likely to continue in the upcoming period.Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 3.4% compared with the industry's upside of 2.7%. Zacks Investment ResearchImage Source: Zacks Investment Research Stocks to ConsiderSome better-ranked stocks from the REIT sector are Iron Mountain IRM and Lamar Advertising LAMR, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for IRM’s 2024 funds from operations (FFO) per share is pegged at $4.38, suggesting year-over-year growth of 6.3%.The Zacks Consensus Estimate for LAMR’s 2024 FFO per share stands at $7.74, indicating an increase of 3.6% from the year-ago quarter.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportIron Mountain Incorporated (IRM) : Free Stock Analysis ReportLamar Advertising Company (LAMR) : Free Stock Analysis ReportAlexandria Real Estate Equities, Inc. (ARE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Alexandria (ARE) Announces Lease Extension at Kendall Square

https://finance.yahoo.com/news/alexandria-announces-lease-extension-kendall-165500918.html

92e705f2-951a-315a-ab0a-33a48e7f3607

ARE

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But 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 the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a 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.Alexandria Real Estate Equities in FocusHeadquartered in Pasadena, Alexandria Real Estate Equities (ARE) is a Finance stock that has seen a price change of -2.09% so far this year. The life science real estate company is currently shelling out a dividend of $1.27 per share, with a dividend yield of 4.09%. This compares to the REIT and Equity Trust - Other industry's yield of 4.46% and the S&P 500's yield of 1.57%.Taking a look at the company's dividend growth, its current annualized dividend of $5.08 is up 2.4% from last year. Alexandria Real Estate Equities has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 5.57%. 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. Alexandria Real Estate Equities's current payout ratio is 57%. This means it paid out 57% of its trailing 12-month EPS as dividend.Earnings growth looks solid for ARE for this fiscal year. The Zacks Consensus Estimate for 2024 is $9.45 per share, with earnings expected to increase 5.35% from the year ago period.Story continuesBottom LineInvestors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.For 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. With that in mind, ARE is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).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 reportAlexandria Real Estate Equities, Inc. (ARE) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Alexandria Real Estate Equities (ARE) is a Great Dividend Stock Right Now

https://finance.yahoo.com/news/why-alexandria-real-estate-equities-164507624.html

0c94590e-67e8-36ab-b3ac-9e23d171e25b

ATO

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a 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.Atmos Energy in FocusBased in Dallas, Atmos Energy (ATO) is in the Utilities sector, and so far this year, shares have seen a price change of -1.91%. Currently paying a dividend of $0.81 per share, the company has a dividend yield of 2.83%. In comparison, the Utility - Gas Distribution industry's yield is 3.72%, while the S&P 500's yield is 1.64%.Taking a look at the company's dividend growth, its current annualized dividend of $3.22 is up 8.8% from last year. Atmos Energy has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 8.96%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Atmos's current payout ratio is 51%, meaning it paid out 51% of its trailing 12-month EPS as dividend.Looking at this fiscal year, ATO expects solid earnings growth. The Zacks Consensus Estimate for 2024 is $6.57 per share, representing a year-over-year earnings growth rate of 7.70%.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. However, not all companies offer 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, ATO is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).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 reportAtmos Energy Corporation (ATO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Atmos Energy (ATO) is a Top Dividend Stock for Your Portfolio

https://finance.yahoo.com/news/why-atmos-energy-ato-top-164506218.html

6a5bf7be-23c1-3a65-805e-ab0d7012f8a8

ATO

Atmos Energy (NYSE:ATO) has had a rough week with its share price down 1.0%. However, stock prices are usually driven by a company’s financials over the long term, which in this case look pretty respectable. Specifically, we decided to study Atmos Energy's ROE in this article.Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Simply put, it is used to assess the profitability of a company in relation to its equity capital. See our latest analysis for Atmos Energy How To Calculate Return On Equity?The formula for ROE is:Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' EquitySo, based on the above formula, the ROE for Atmos Energy is:8.2% = US$925m ÷ US$11b (Based on the trailing twelve months to December 2023).The 'return' is the profit over the last twelve months. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.08.What Is The Relationship Between ROE And Earnings Growth?So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.Atmos Energy's Earnings Growth And 8.2% ROEAt first glance, Atmos Energy's ROE doesn't look very promising. We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 12%. Atmos Energy was still able to see a decent net income growth of 13% over the past five years. So, there might be other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently.Story continuesAs a next step, we compared Atmos Energy's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 10%.past-earnings-growthEarnings growth is an important metric to consider when valuing a stock. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Atmos Energy fairly valued compared to other companies? These 3 valuation measures might help you decide.Is Atmos Energy Using Its Retained Earnings Effectively?Atmos Energy has a three-year median payout ratio of 48%, which implies that it retains the remaining 52% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently.Additionally, Atmos Energy has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 50%. Therefore, the company's future ROE is also not expected to change by much with analysts predicting an ROE of 9.1%.SummaryOn the whole, we do feel that Atmos Energy has some positive attributes. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Simply Wall St.

Atmos Energy Corporation (NYSE:ATO) Stock's Been Sliding But Fundamentals Look Decent: Will The Market Correct The Share Price In The Future?

https://finance.yahoo.com/news/atmos-energy-corporation-nyse-ato-103714122.html

b61c380f-ba75-34a7-99ab-0eb7aee35c3e

ATO

It has been about a month since the last earnings report for National Fuel Gas (NFG). Shares have added about 4.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is National Fuel Gas 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 drivers.National Fuel Gas Q1 Earnings Beat on Higher ProductionNational Fuel Gas Company reported fiscal first-quarter 2024 adjusted operating earnings of $1.46 per share, which surpassed the Zacks Consensus Estimate of $1.32 by 10.6%. However, the bottom line declined 20.65% from the year-ago figure of $1.84.GAAP earnings in the quarter were $1.44 per share, down 21.7% from the year-ago level of $1.84.Total RevenuesRevenues of $525.4 million lagged the Zacks Consensus Estimate of $654 million by 19.6%.The top line decreased 20.3% from the prior-year quarter figure of $659 million. The year-over-year fall was primarily due to lower realized natural gas prices.Segmental RevenuesUtility: Revenues in the first quarter of fiscal 2024 totaled $201.9 million, down 35.2% from $312 million in the year-ago quarter.Pipeline and Storage and Gathering: Revenues amounted to $69.4 million, reflecting a 1.2% decrease from $70.3 million in the year-ago quarter.Exploration and Production and Other Revenues: Revenues in the first quarter of fiscal 2024 totaled $254 million, down 8.3% from $276.9 million in the year-ago quarter.Highlights of the ReleaseTotal operating expenses decreased 21.3% to $318.3 million year over year.Operating income was down 18.6% year over year to $207.1 million.Interest expenses totaled $34.7 million, up 3.8% from the year-ago quarter levels of $33.4 million.The Exploration & Production segment produced 101 billion cubic feet (Bcf) of natural gas, an increase of 11% from the prior-year quarter, driven by strong operational execution in its Eastern Development Area.Story continuesFinancial HighlightsAs of Dec 31, 2023, National Fuel Gas had cash and temporary cash investments of $41.7 million compared with $55.4 million as of Sep 30, 2023.Net cash provided by operating activities for the fiscal first quarter of 2024 was $270.9 million compared with $327.4 million from the year ago quarter.National Fuel Gas invested $246.9 million in the first quarter of fiscal 2024 compared with $233.5 million in the first quarter of fiscal 2023.GuidanceNFG lowered its fiscal 2024 earnings guidance to the range of $4.90-$5.20 per share from the prior range of $5.40-$5.90 per share. The decline in guidance primarily reflects the impact of lower natural gas price expectations, partially offset by the improved outlook for both production and lease operating and transportation expenses in the Exploration and Production segment.  The Zacks Consensus Estimate is pegged at $5.05 per share, higher than $4.74, the midpoint of the guided range.The company increased its capital expenditure guidance to the range of $885-$1000 million from $865-$975 million for fiscal 2024. It expects production volume in the band of 395-410 Bcf for the same year.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.VGM ScoresCurrently, National Fuel Gas has an average Growth Score of C, a grade with the same score on the momentum front. However, 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, National Fuel Gas has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerNational Fuel Gas belongs to the Zacks Utility - Gas Distribution industry. Another stock from the same industry, Atmos Energy (ATO), has gained 2.4% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.Atmos reported revenues of $1.16 billion in the last reported quarter, representing a year-over-year change of -21.9%. EPS of $2.08 for the same period compares with $1.91 a year ago.Atmos is expected to post earnings of $2.66 per share for the current quarter, representing a year-over-year change of +7.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Atmos. Also, the stock has a VGM Score of D.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportNational Fuel Gas Company (NFG) : Free Stock Analysis ReportAtmos Energy Corporation (ATO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

National Fuel Gas (NFG) Up 4.6% Since Last Earnings Report: Can It Continue?

https://finance.yahoo.com/news/national-fuel-gas-nfg-4-163051871.html

2cbe9afa-3954-3055-9b40-4f5f50e5764f

ATO

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.Atmos Energy in FocusBased in Dallas, Atmos Energy (ATO) is in the Utilities sector, and so far this year, shares have seen a price change of -0.27%. The natural gas utility is currently shelling out a dividend of $0.81 per share, with a dividend yield of 2.79%. This compares to the Utility - Gas Distribution industry's yield of 3.48% and the S&P 500's yield of 1.56%.Taking a look at the company's dividend growth, its current annualized dividend of $3.22 is up 8.8% from last year. In the past five-year period, Atmos Energy has increased its dividend 5 times on a year-over-year basis for an average annual increase of 8.96%. 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. Right now, Atmos's payout ratio is 51%, which means it paid out 51% of its trailing 12-month EPS as dividend.ATO is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2024 is $6.59 per share, with earnings expected to increase 8.03% from the year ago period.Bottom LineInvestors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.Story continuesHigh-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, ATO is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).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 reportAtmos Energy Corporation (ATO) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why Atmos Energy (ATO) is a Great Dividend Stock Right Now

https://finance.yahoo.com/news/why-atmos-energy-ato-great-164507477.html

58d5f906-cabd-39e6-847a-fdcc20752ac6

AVB

The average rent for an apartment in the United States is $1,702, according to RentCafe, but did you know you could completely cover this cost by investing in a real estate investment trust (REIT) that pays dividends?It takes a lot of capital to do so, but if you can swing it, you can essentially live rent-free.How it worksLet's say you find an apartment that costs the national average of $1,702 per month. Based on that monthly rate, you will need annual dividend income of $20,424 to cover your rent.Don't Miss: Investing in real estate just got a whole lot simpler. This Dara Khosrowshahi-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here are 3 high-yield investments to add significant income to your portfolio.To cover your rent, you could invest in AvalonBay Communities (NYSE:AVB), which owns or has ownership interests in 299 apartment communities containing 90,669 apartment homes across 12 states and the District of Columbia, including 18 communities under development.AvalonBay currently pays a quarterly dividend of $1.70 per share, equating to an annualized dividend of $6.80 per share and giving it a yield of approximately 3.84% based on its closing price on February 16.To earn $20,424 annually from AvalonBay, you'll need to buy about 3,003 shares of the company, which will cost about $531,891 based on its closing price of $177.12 on February 16.To calculate how to cover your monthly rent with a REIT, you take your desired annual income, which is $20,424 in this case, and divide it by the dividend yield when expressed as a decimal, which is 0.0384 in this case. So, $20,424 / 0.0384 = $531,875.Important note: this calculation does not include participating in a dividend reinvestment program, or DRIP for short, since you will be taking the payments as cash to use to cover your rent.Story continuesAvalonBay is also a serial dividend raiser, which will help if your rent goes up. AvalonBay has raised its annual dividend 11 times in the last 13 years, including a 3% increase last month, making it qualify as both a high-yield and dividend-growth stock.Again, it takes a lot of capital to generate enough dividend income to cover your monthly rent, and you may want to consider diversifying across several REITs to minimize your single-stock risk and sleep well at night.Read Next:Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000. Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Dara Khosrowshahi gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.Image Credit: Shutterstock"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!Get the latest stock analysis from Benzinga?AVALONBAY COMMUNITIES (AVB): Free Stock Analysis ReportThis article Live in Your Apartment Rent-Free Using This Hack originally appeared on Benzinga.com© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Benzinga

Live in Your Apartment Rent-Free Using This Hack

https://finance.yahoo.com/news/live-apartment-rent-free-using-153452621.html

559cebf5-e686-3931-8c2f-13da42c53c0f

AVB

Robust portfolio with strategic metropolitan focus and diversified brands catering to various customer segments.Proactive development strategy with a pipeline of new communities enhancing growth prospects.Market volatility and regulatory challenges as potential threats to operational flexibility.Commitment to environmental, social, and governance (ESG) initiatives aligning with investor and resident expectations.Warning! GuruFocus has detected 5 Warning Sign with AVB.On February 23, 2024, AvalonBay Communities Inc (NYSE:AVB) filed its annual 10-K report, revealing a comprehensive overview of its financial health and strategic positioning. As a leading real estate investment trust, AvalonBay owns and operates a portfolio of 279 apartment communities with over 83,000 units and has 19 additional properties under development. The company's focus on high-wage, high-cost metropolitan areas has positioned it to capitalize on market dynamics that favor long-term risk-adjusted returns. Financially, AvalonBay has demonstrated a strong balance sheet, with a market capitalization of approximately $26.79 billion as of June 30, 2023. The company's development and acquisition activities, coupled with its operational efficiency, have contributed to its financial resilience and growth trajectory.Decoding AvalonBay Communities Inc (AVB): A Strategic SWOT InsightStrengthsMarket Position and Brand Differentiation: AvalonBay Communities Inc (NYSE:AVB) has established a strong market presence in key metropolitan areas known for high-wage employment and a vibrant quality of life. This strategic focus has enabled the company to maintain a robust portfolio with high occupancy rates and demand. AvalonBay's brand differentiation, with offerings such as Avalon, AVA, eaves by Avalon, and Kanso, caters to a diverse customer base, from upscale living to value-conscious residents. This brand segmentation allows AvalonBay to maximize market penetration and cater to various preferences within its geographic footprint, enhancing its competitive edge.Story continuesDevelopment and Redevelopment Expertise: AvalonBay's in-house development and redevelopment teams have a proven track record of delivering high-quality apartment communities. With a pipeline of 19 wholly-owned development communities and rights to develop an additional 30 communities, AvalonBay is well-positioned for future growth. The company's ability to act as its own development manager and general contractor not only ensures control over construction quality and timelines but also results in cost savings. This expertise is a significant strength, as it allows AvalonBay to expand its portfolio strategically and maintain a competitive advantage in its markets.WeaknessesGeographic Concentration Risks: While AvalonBay's focus on specific high-growth metropolitan areas has been a strength, it also presents a concentration risk. Economic downturns, natural disasters, or significant policy changes in these regions could disproportionately affect the company's operations and financial performance. Moreover, the reliance on a limited number of markets may limit diversification benefits and expose AvalonBay to localized market volatility.Regulatory and Compliance Burdens: AvalonBay operates in an industry that is subject to extensive regulation, including zoning laws, building codes, and rent control measures. The company's significant presence in California and New York, states known for stringent rent control laws, poses a challenge to operational flexibility and revenue maximization. Compliance with these regulations requires continuous monitoring and adaptation, which can be resource-intensive and may impact profitability.OpportunitiesExpansion into New Markets: AvalonBay has the opportunity to leverage its brand reputation and operational expertise to enter new markets, particularly those with similar characteristics to its current portfolio. Expansion into new regions can diversify risk and open up additional revenue streams. The company's recent forays into markets such as Raleigh-Durham, Charlotte, Southeast Florida, and Denver indicate a strategic intent to grow beyond its traditional strongholds.ESG Initiatives: There is a growing emphasis on environmental, social, and governance (ESG) factors in the real estate industry. AvalonBay's commitment to ESG initiatives, such as energy efficiency, sustainable construction practices, and social responsibility, aligns with investor and resident expectations. By enhancing its ESG profile, AvalonBay can attract socially conscious investors and residents, potentially leading to increased demand for its communities and access to favorable financing terms.ThreatsMarket Volatility and Economic Uncertainty: The real estate market is cyclical and can be impacted by economic downturns, changes in consumer preferences, and shifts in employment trends. AvalonBay's performance is closely tied to the economic health of the metropolitan areas it serves. Any downturn in these economies could lead to decreased demand for rental units, putting pressure on occupancy rates and rental income.Increased Competition and Technological Disruption: The multifamily apartment sector is highly competitive, with numerous players vying for market share. Technological advancements, such as the rise of smart home features and online rental platforms, are changing tenant expectations. AvalonBay must continuously innovate and invest in technology to remain competitive and meet the evolving needs of its residents. Failure to adapt to these changes could result in a loss of market share to more technologically advanced competitors.In conclusion, AvalonBay Communities Inc (NYSE:AVB) exhibits a strong market position with a focus on high-quality properties in strategic metropolitan areas. The company's brand differentiation and development expertise are key strengths that drive its competitive advantage. However, geographic concentration and regulatory challenges present inherent weaknesses that require careful management. Opportunities for expansion and a commitment to ESG initiatives offer avenues for growth, while market volatility and technological disruption pose threats that must be navigated. Overall, AvalonBay's strategic approach positions it well to leverage its strengths and opportunities while addressing its weaknesses and threats in the dynamic real estate market.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 AvalonBay Communities Inc (AVB): A Strategic SWOT Insight

https://finance.yahoo.com/news/decoding-avalonbay-communities-inc-avb-050608588.html

dd8aabdf-7782-3112-9f53-552984b1e386

AVB

Shares of AvalonBay Communities AVB were up 3.95% during Monday’s regular trading session after this residential REIT’s last Friday’s announcement of a projected outperformance of its first-quarter same-store residential revenue growth on better-than-expected occupancy and lower-than-expected uncollectible lease revenues.Specifically, AvalonBay now expects its same-store residential revenues for the first quarter to increase 3.7%-3.8% over the prior-year period. This range at the midpoint is roughly 45 basis points higher than the company’s most recent expectation on Jan 31, 2024.Economic occupancy for its same-store residential communities of 96% in February inched up from 95.8% in the prior month. AvalonBay had recorded economic occupancy of 95.6% in the fourth quarter.The like-term effective rent change for same-store residential communities was 2.4% in February, up from 1.3% in January as well as in the fourth quarter of 2023. The like-term effective rent change for renewals was 4.5% for both January and February, up from 4.2% for the fourth quarter. New move-in like-term effective rent change was negative 0.1% in February compared with a negative 2% in January and a negative 1.9% in the fourth quarter.For March and April 2024, renewal offers delivered to residents were at an average increase of 5% over existing lease agreements.AvalonBay is poised to benefit from the healthy demand for its residential properties in key regions and portfolio diversification efforts in the urban and suburban markets. It is focused on optimizing its portfolio by increasing allocation to suburban markets and expansion regions as well as with accretive investments in the existing portfolio. AVB is also banking on technology and scale to drive innovation and margin expansion.Per the company’s operating update, despite the anticipation of tempering housing demand from slower job growth, rental demand in the company’s established regions will benefit from an expensive for-sale housing alternative.AvalonBay expects same-store revenue growth in 2024 to be driven by lease rates, other rental revenues and lower uncollectible lease revenues. The company delivered around $27 million of incremental net operating income (NOI) through year-end 2023 and expects approximately $9 million of incremental NOI in 2024.AVB also mentioned that its current lease-ups are surpassing expectations. Also, another $855 million entering lease-up in 2024 is projected to benefit from mark-to-market.However, elevated supply in certain markets, high interest rates and a choppy macroeconomic environment remain concerns for this residential REIT.Currently, AvalonBay carries a Zacks Rank of 3 (Hold). Shares of AVB have increased 4.8%, outperforming its industry’s climb of 3.3% over the past three months.Story continuesZacks Investment ResearchImage Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks from the broader REIT sector are Iron Mountain IRM and Lamar Advertising LAMR, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for IRM’s 2024 funds from operations (FFO) per share is pegged at $4.38, which suggests year-over-year growth of 6.3%.The Zacks Consensus Estimate for LAMR’s 2024 FFO per share stands at $7.74, which indicates an increase of 3.6% from the year-ago period.Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAvalonBay Communities, Inc. (AVB) : Free Stock Analysis ReportIron Mountain Incorporated (IRM) : Free Stock Analysis ReportLamar Advertising Company (LAMR) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

AvalonBay (AVB) Projects Higher Q1 Rental Revenues, Stock Up

https://finance.yahoo.com/news/avalonbay-avb-projects-higher-q1-165800176.html

1298a9a0-8385-359f-bdad-c992167ed612

AVB

Executive Vice President Joanne Lockridge has sold 1,750 shares of AvalonBay Communities Inc (NYSE:AVB) on March 7, 2024, according to a recent SEC Filing. The transaction was executed at an average price of $185.1 per share, resulting in a total sale amount of $323,925.Warning! GuruFocus has detected 6 Warning Sign with AVB.AvalonBay Communities Inc is a real estate investment trust (REIT) that focuses on the development, redevelopment, acquisition, ownership, and operation of multifamily communities primarily in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California.Over the past year, the insider has sold a total of 5,081 shares of AvalonBay Communities Inc and has not made any purchases of the stock. The recent sale further contributes to the trend observed over the past year, where there have been no insider buys and three insider sells for the company.On the date of the insider's recent sale, shares of AvalonBay Communities Inc were trading at $185.1, giving the company a market capitalization of $26.23 billion. The price-earnings ratio stood at 28.20, which is above the industry median of 16.835 but below the company's historical median price-earnings ratio.The stock's price of $185.1 compared to the GuruFocus Value of $217.72 indicates that AvalonBay Communities Inc has a price-to-GF-Value ratio of 0.85, suggesting that the stock is modestly undervalued. The GF Value is calculated considering historical trading multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.Executive Vice President Joanne Lockridge Sells Shares of AvalonBay Communities Inc (AVB)The insider trend image above reflects the recent insider selling activity for AvalonBay Communities Inc.Executive Vice President Joanne Lockridge Sells Shares of AvalonBay Communities Inc (AVB)The GF Value image above provides an intrinsic value estimate for AvalonBay Communities Inc, indicating the stock's current valuation status.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

Executive Vice President Joanne Lockridge Sells Shares of AvalonBay Communities Inc (AVB)

https://finance.yahoo.com/news/executive-vice-president-joanne-lockridge-230047141.html

bc46194c-5311-3d74-9a3b-6c0b6583f64c

AVGO

Feb 26 (Reuters) - Chipmaker Broadcom CEO Hock Tan's annual compensation more than doubled to $161.8 million in 2023, a filing with the Securities and Exchange Commission (SEC) showed on Monday.Tan's 2023 pay, which was fueled by stock awards of $160.5 million, was 510 times the median salary of employees at the chip firm.His pay in 2022 came in at $60.6 million, with $53.9 million in stock awards.The chipmaker closed its $69 billion acquisition of cloud-computing firm VMware last year, after receiving regulatory approval in its key market China and ending a months-long saga.Broadcom posted 2023 revenue of $35.82 billion, and its stock has risen about 17% so far in 2024 after nearly doubling last year.(Reporting by Jaspreet Singh in Bengaluru; Editing by Sherry Jacob-Phillips)

Reuters

Broadcom CEO compensation more than doubles to $161.8 mln in 2023

https://finance.yahoo.com/news/broadcom-ceo-compensation-more-doubles-235204198.html

7eec1c9b-4e70-341d-b3a3-0bfed4c4906e

AVGO

(Reuters) - Chipmaker Broadcom CEO Hock Tan's annual compensation more than doubled to $161.8 million in 2023, a filing with the Securities and Exchange Commission (SEC) showed on Monday.Tan's 2023 pay, which was fueled by stock awards of $160.5 million, was 510 times the median salary of employees at the chip firm.His pay in 2022 came in at $60.6 million, with $53.9 million in stock awards.The chipmaker closed its $69 billion acquisition of cloud-computing firm VMware last year, after receiving regulatory approval in its key market China and ending a months-long saga.Broadcom posted 2023 revenue of $35.82 billion, and its stock has risen about 17% so far in 2024 after nearly doubling last year.(Reporting by Jaspreet Singh in Bengaluru; Editing by Sherry Jacob-Phillips)

Reuters

Broadcom CEO compensation more than doubles to $161.8 million in 2023

https://finance.yahoo.com/news/broadcom-ceo-compensation-more-doubles-000110209.html

288980bb-db4b-3a5e-9c2c-0a756f5da13b

AVGO

One of the byproducts of the accelerating adoption of artificial intelligence (AI) has been the investor practice -- for better or for worse -- of viewing AI stocks collectively. In many instances, developments concerning one company in the space can have a ripple effect, bringing a broad cross-section of stocks in the space up or down with them. That appears to be the case Monday morning, as two developments seem to be having on outsize impact on AI companies.With that as a backdrop, foundry Taiwan Semiconductor Manufacturing (NYSE: TSM) tumbled 4.1%, social media company Meta Platforms (NASDAQ: META) slumped 4%, chipmaker Advanced Micro Devices (NASDAQ: AMD) dropped 3.8%, computer memory specialist Micron Technology (NASDAQ: MU) declined 3.1%, and semiconductor specialist Broadcom (NASDAQ: AVGO) fell 1.9%, as of 1:32 p.m. ET on Monday.A check of all the usual suspects -- regulatory filings, financial reports, and changes to analysts' price targets -- turned up one piece of negative company-specific news -- while surprisingly, there were a number of positive catalysts (more on that in a bit). Furthermore, troubling news about a high-profile company in the space seemed to put AI investors in a dour mood.Image source: Getty Images.A one-two punchBroadcom released the results of its fiscal 2024 first quarter (ended Feb. 4) on Friday, and investors weren't particularly impressed. The semiconductor specialist generated revenue of $11.96 billion, an increase of 34% year over year, resulting in adjusted earnings per share (EPS) of $10.99, an increase of 6%.While both metrics exceeded Wall Street's expectations, management's forecast seemed to catch investors off guard. Broadcom reiterated its outlook for the 2024 fiscal year, guiding for revenue of $50 billion. Investors were hoping the company would boost its guidance after exceeding expectations for the quarter. The news weighed on many AI and chip stocks on Friday.Investors seemed to be waiting for the other shoe to drop, which happened over the weekend. Reports emerged that a proposed class action lawsuit was filed late on Friday, accusing Nvidia of copyright infringement. Three authors sued the chipmaker, alleging that Nvidia had used their books -- along with hundreds of thousands of others -- to train its NeMo AI platform, and had not requested permission. As one of the undisputed beneficiaries of the adoption of AI, this development will be carefully watched by investors.Story continuesThis is merely the latest in a growing number of lawsuits filed by writers claiming that copyrighted works have been used to train generative AI systems without their knowledge or consent. Late last year, a group of noteworthy authors -- including George R.R. Martin, Michael Connelly, and Jonathan Franzen -- filed a similar suit against Microsoft and OpenAI, charging that ChatGPT was trained on their copyrighted works. Meta Platforms is in the midst of a similar lawsuit regarding its LLaMA AI model.While these lawsuits are currently having a chilling effect on the development of generative AI, it's too early to tell how these cases will ultimately be decided.There's good newsWhile it's understandable that investors might be concerned about these developments, not all the news is bad. In fact, there were some positive bits of company-specific news, and investors appear to be missing the forest for the trees.Here are a few examples:On Friday, Wells Fargo analysts maintained an overweight (buy) rating on Micron stock while raising their price target to $125, suggesting potential upside of 28% compared to Friday's close. The analysts believe the company is at an inflection point, which will become evident in the next two quarters.AMD also got a price target increase on Friday, courtesy of Melius Research. The analysts maintained a buy rating on AMD stock while raising their price target to $265, suggesting potential upside of 28% compared to Friday's close. They cited AMD's recently released MI300X AI chip as having good prospects in data centers.Broadcom got a pair of price target increases Monday morning. Baird maintained an outperform (buy) rating and raised its price target to $1,500, or upside of 19% compared to Friday's close. Citi analysts also maintained a buy rating on the stock and hiked its price target to $1,560, or 19% upside potential. Both analysts cited the secular tailwinds of AI as a catalyst fueling future growth.These announcements suggest that investors should take care in painting all AI stocks with the same brush. While there will no doubt be both positive and negative developments that will impact the entire industry, each of these companies will need to execute on the opportunity and secular tailwinds represented by AI.Meta Platforms and Taiwan Semiconductor are the least expensive among the group, selling for 32 times and 27 times earnings, respectively. Furthermore, when measured in terms of the price/earnings-to-growth (PEG) ratio -- which factors in strong growth -- both stocks clock in at less than 1 -- the standard for an undervalued stock.Each of these stocks represents an intriguing opportunity, particularly in light of the opportunity represented by AI, but investors should size their positions based on their risk tolerance and the degree of volatility they're willing to endure.Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?Before you buy stock in Taiwan Semiconductor Manufacturing, 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 Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of March 11, 2024Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Danny Vena has positions in Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.Why Meta Platforms, Taiwan Semiconductor, Advanced Micro Devices, and Other Artificial Intelligence (AI) Stocks Tumbled on Monday was originally published by The Motley Fool

Motley Fool

Why Meta Platforms, Taiwan Semiconductor, Advanced Micro Devices, and Other Artificial Intelligence (AI) Stocks Tumbled on Monday

https://finance.yahoo.com/news/why-meta-platforms-taiwan-semiconductor-185313267.html

e53b59a2-3d96-3117-b5ec-4a073f95f5fc

AVGO

Broadcom (NASDAQ: AVGO) stock started 2024 on the right note, rising 26% until it told investors on Thursday how it expects to perform over the rest of 2024. Investors were disappointed that Broadcom predicted revenue slightly short of estimates, and Broadcom stock fell 7% on Friday.But not to worry! Bank of America analyst Vivek Arya says this is just a temporary setback and Broadcom stock will climb to $1,680 If you bought Broadcom at Friday's closing price, BofA thinks you can expect to earn roughly 28% within a year.Is Broadcom stock a buy?Is Broadcom stock, trading for $1,320 as I write this, really going to $1,680? I wouldn't bet on it.Granted, Broadcom's fiscal Q1 2024 earnings report looked fine. Quarterly sales of $12 billion exceeded expectations. So did the $10.99 in adjusted profits the company earned. (Wall Street expected only $10.29). Valued on GAAP profit, though, Broadcom stock trades for 56 times trailing earnings, which seems pricey given most analysts don't expect Broadcom's earnings to grow much faster than 14% per year over the next five years.Arya seems to think Broadcom can exceed that growth rate, and in the short term it might. With sales expected to rise 40% year over year to $50 billion in 2024, the analyst sees Broadcom's operating profit margins recovering from about 39% (currently) to 60% to 65% (eventually), and says annual earnings should average about $70 to $75 per share. The problem is that most of Broadcom's 2024 growth is inorganic, deriving from its VMware purchase last year -- a jump in revenue that will be hard to replicate organically. Organic sales growth was only 11% despite the boom in AI demand seen elsewhere in the semiconductors industry.BofA's $1,680 target price and its $70-ish long-term earnings target imply a (very) forward P/E ratio of 23 on Broadcom stock -- cheap if the company grows at 40%, but considerably less cheap if the best Broadcom can manage is 14% earnings growth.Story continuesShould you invest $1,000 in Broadcom right now?Before you buy stock in Broadcom, 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 Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of March 11, 2024Bank of America is an advertising partner of The Ascent, a Motley Fool company. HSBC Holdings is an advertising partner of The Ascent, a Motley Fool company. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America. The Motley Fool recommends Broadcom and HSBC Holdings. The Motley Fool has a disclosure policy.Is Broadcom Stock Going to $1,680? 1 Wall Street Analyst Thinks So. was originally published by The Motley Fool

Motley Fool

Is Broadcom Stock Going to $1,680? 1 Wall Street Analyst Thinks So.

https://finance.yahoo.com/news/broadcom-stock-going-1-680-194800940.html

7177f4c0-2ee7-38b1-a672-b6e45ffda6a2

AVY

Avery Dennison Corporation (NYSE:AVY) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were a bit of a negative overall. While revenues of US$8.4b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.4% to hit US$6.20 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year. Check out our latest analysis for Avery Dennison earnings-and-revenue-growthTaking into account the latest results, the current consensus from Avery Dennison's eleven analysts is for revenues of US$8.78b in 2024. This would reflect a satisfactory 4.9% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 44% to US$9.01. Before this earnings report, the analysts had been forecasting revenues of US$8.86b and earnings per share (EPS) of US$9.14 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.The analysts reconfirmed their price target of US$218, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Avery Dennison, with the most bullish analyst valuing it at US$248 and the most bearish at US$154 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.Story continuesLooking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Avery Dennison'shistorical trends, as the 4.9% annualised revenue growth to the end of 2024 is roughly in line with the 5.7% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.9% annually. So although Avery Dennison is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.The Bottom LineThe most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.With that in mind, we wouldn't be too quick to come to a conclusion on Avery Dennison. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Avery Dennison analysts - going out to 2026, and you can see them free on our platform here.You should always think about risks though. Case in point, we've spotted 1 warning sign for Avery Dennison 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.

Avery Dennison Corporation (NYSE:AVY) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

https://finance.yahoo.com/news/avery-dennison-corporation-nyse-avy-142650062.html

f589584c-8189-3e01-81dc-b60718ea6783

AVY

MENTOR, Ohio, February 26, 2024--(BUSINESS WIRE)--Avery Dennison Corporation (NYSE: AVY) today announced that its board of directors has appointed Maria Fernanda Mejia a director, effective February 22, 2024.Mejia, 60, is the retired CEO, International, for Newell Brands Inc., a leading American manufacturer, marketer and distributor of consumer and commercial products, with $8.1 billion in fiscal 2023 revenues. Mejia joined Newell Brands Inc. from the Kellogg Company where she was senior vice president and president of Kellogg Latin America between 2011 and 2019. She previously served in positions of increasing responsibility at Colgate-Palmolive in the U.S., Latin America, Asia and Europe."We are extremely pleased to welcome Maria Fernanda to our board," said Patrick Siewert, lead independent director and chair of the Governance Committee of the Board of Directors, Avery Dennison. "She is an accomplished leader with extensive international experience, having worked across multiple geographies for some of the world’s top consumer packaged goods companies.""Maria Fernanda brings deep expertise in consumer goods industries, significant international experience and public company board experience," added Mitch Butier, executive chairman of the Board for Avery Dennison. "We look forward to working with her as we continue to create long-term value for all our stakeholders."Mejia has a BS in Industrial Distribution from Texas A&M University.About Avery DennisonAvery Dennison Corporation (NYSE: AVY) is a global materials science and digital identification solutions company that provides a wide range of branding and information solutions that optimize labor and supply chain efficiency, reduce waste, advance sustainability, circularity and transparency, and better connect brands and consumers. Our products and solutions include labeling and functional materials, radio frequency identification (RFID) inlays and tags, software applications that connect the physical and digital, and a variety of products and solutions that enhance branded packaging and carry or display information that improves the customer experience. Serving an array of industries worldwide — including home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals and automotive — we employ approximately 35,000 employees in more than 50 countries. Our reported sales in 2023 were $8.4 billion. Learn more at www.averydennison.com.Story continuesView source version on businesswire.com: https://www.businesswire.com/news/home/20240226918537/en/ContactsMedia John Eble Vice President, Finance and Investor Relationsjohn.eble@averydennison.com Kristin Robinson Vice President, Global Communicationskristin.robinson@averydennison.com

Business Wire

Maria Fernanda Mejia Appointed to Avery Dennison Board of Directors

https://finance.yahoo.com/news/maria-fernanda-mejia-appointed-avery-114500374.html

cf6919bb-6e40-3baa-a2dd-1f8fc252deee

AVY

A month has gone by since the last earnings report for Avery Dennison (AVY). Shares have added about 8.6% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Avery Dennison 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.Avery Dennison Q4 Earnings Beat Estimates, Rise Y/YAvery Dennison has delivered adjusted earnings of $2.16 per share in fourth-quarter 2023, beating the Zacks Consensus Estimate of $2.15. The bottom line increased 31% year-over-year.  Including one-time items, the company has reported earnings per share (EPS) of $1.77 compared with the year-ago quarter’s $1.51.Total revenues moved up 4.2% year over year to $2.11 billion, beating the Zacks Consensus Estimate of $2.09 billion. Volumes in both segments were up sequentially.The cost of sales in the quarter dipped 0.7% year over year to $1.51 billion . The gross profit rose 19.2% year over year to $596 million.Marketing, general and administrative expenses were $335 million compared with the $312 million incurred in the year-ago quarter. The adjusted operating profit was around $261 million compared with the prior-year quarter’s $188 million. The adjusted operating margin was 12.4% compared with 9.3% in the prior-year quarter.Segmental HighlightsRevenues in the Materials Group segment declined 1.6% year over year to $1.42 billion  in the reported quarter. The reported figure missed our estimate of $1.49 billion . On an organic basis, sales were down 3.9%. We predicted organic sales to rise 1.2%. The segment’s adjusted operating profit increased 31.9% year over year to $198 million.Revenues in the Solutions Group were up 18.3% year over year to $692 million. We estimated revenues of $605 million for this segment. On an organic basis, sales improved 13.9% year over year. Our model predicted a rise of 0.9%. The variance was driven by a sequential improvement in Apparel Solutions volume. The segment’s adjusted operating income rose 51.6% year over year to $80.5 million.Story continuesFinancial UpdatesThe company returned $394 million in cash to shareholders through share repurchases and dividend payments in 2023. AVY repurchased 0.8 million shares throughout the year.Avery Dennison ended 2023 with cash and cash equivalents of $215 million compared with $167 million at the end of the prior year.The company’s long-term debt was $2.62 billion  at the end of 2023, up from $2.50 billion  at the end of 2022. The company’s net debt to adjusted EBITDA ratio was 2.4X.AVY realized approximately $69 million in pre-tax savings from restructuring (net of transition costs) in 2023. The company also incurred pre-tax restructuring charges of around $79 million.2023 PerformanceAdjusted EPS decreased 14% year over year to $7.90 in 2023 but topped the Zacks Consensus Estimate of $7.87. Including one-time items, EPS was $6.20 in 2023, down 33% from the $9.21 reported in 2022.Total revenues declined 7.5% year over year to $8.36 billion. The top line figure topped the Zacks Consensus Estimate of $8.34 billion.Guidance for 2024Avery Dennison expects adjusted EPS between $9.00 and $9.50 for 2024.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.The consensus estimate has shifted 6.63% due to these changes.VGM ScoresCurrently, Avery Dennison has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Avery Dennison has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerAvery Dennison belongs to the Zacks Office Supplies industry. Another stock from the same industry, Xerox Holdings Corporation (XRX), has gained 0.6% over the past month. More than a month has passed since the company reported results for the quarter ended December 2023.Xerox Holdings Corporation reported revenues of $1.77 billion in the last reported quarter, representing a year-over-year change of -9.1%. EPS of $0.43 for the same period compares with $0.89 a year ago.Xerox Holdings Corporation is expected to post earnings of $0.37 per share for the current quarter, representing a year-over-year change of -24.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +8.8%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Xerox Holdings Corporation. Also, the stock has a VGM Score of A.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAvery Dennison Corporation (AVY) : Free Stock Analysis ReportXerox Holdings Corporation (XRX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Avery Dennison (AVY) Up 8.6% Since Last Earnings Report: Can It Continue?

https://finance.yahoo.com/news/avery-dennison-avy-8-6-163047324.html

51e65c0c-5c36-3e2c-91b3-d9ce1e76a5f6

AVY

Assessing the Upcoming Dividend and Financial Health of Avery Dennison CorpAvery Dennison Corp (NYSE:AVY) recently announced a dividend of $0.81 per share, payable on 2024-03-20, with the ex-dividend date set for 2024-03-05. 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 Avery Dennison Corp's dividend performance and assess its sustainability.What Does Avery Dennison Corp Do?Warning! GuruFocus has detected 6 Warning Sign with AVY.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?Avery Dennison manufactures pressure-sensitive materials, merchandise tags, and labels. The company also runs a specialty converting business that produces radio-frequency identification, or RFID, inlays and labels. Avery Dennison draws a significant amount of revenue from outside the United States, with international operations accounting for the majority of total sales.Avery Dennison Corp's Dividend AnalysisA Glimpse at Avery Dennison Corp's Dividend HistoryAvery Dennison Corp has maintained a consistent dividend payment record since 1986. Dividends are currently distributed on a quarterly basis.Avery Dennison Corp has increased its dividend each year since 2010. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 14 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.Avery Dennison Corp's Dividend AnalysisBreaking Down Avery Dennison Corp's Dividend Yield and GrowthAs of today, Avery Dennison Corp currently has a 12-month trailing dividend yield of 1.47% and a 12-month forward dividend yield of 1.50%. This suggests an expectation of increased dividend payments over the next 12 months.Over the past three years, Avery Dennison Corp's annual dividend growth rate was 10.50%. Extended to a five-year horizon, this rate decreased to 9.60% per year. And over the past decade, Avery Dennison Corp's annual dividends per share growth rate stands at an impressive 10.60%.Story continuesBased on Avery Dennison Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Avery Dennison Corp stock as of today is approximately 2.32%.The Sustainability Question: Payout Ratio and ProfitabilityTo assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Avery Dennison Corp's dividend payout ratio is 0.41.Avery Dennison Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Avery Dennison Corp's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.Growth Metrics: The Future OutlookTo ensure the sustainability of dividends, a company must have robust growth metrics. Avery Dennison Corp's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.Revenue is the lifeblood of any company, and Avery Dennison Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Avery Dennison Corp's revenue has increased by approximately 7.60% per year on average, a rate that outperforms approximately 54.79% of global competitors.The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Avery Dennison Corp's earnings increased by approximately 3.70% per year on average, a rate that outperforms approximately 43.31% of global competitors.Lastly, the company's 5-year EBITDA growth rate of 12.50%, which outperforms approximately 62.56% of global competitors.Investing in Avery Dennison Corp's Dividend FutureIn conclusion, Avery Dennison Corp's consistent dividend history, combined with a solid dividend growth rate, suggests a commitment to returning value to shareholders. The company's manageable payout ratio and strong profitability rank indicate a sustainable dividend policy. Moreover, Avery Dennison Corp's impressive growth metrics provide a positive outlook for future dividend sustainability and potential increases. For value investors seeking a stock with a reliable dividend and the potential for growth, Avery Dennison Corp presents an attractive option.GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.This article first appeared on GuruFocus.

GuruFocus.com

Avery Dennison Corp's Dividend Analysis

https://finance.yahoo.com/news/avery-dennison-corps-dividend-analysis-100341940.html

be925f27-e236-3ced-af5e-311a24ae9d9d

AWK

CAMDEN, N.J., February 26, 2024--(BUSINESS WIRE)--New Jersey American Water recently announced its 2023 end-of-year investment total for system improvements. More than $507 million was invested to fund critical system upgrades and improvement projects across the company’s service areas throughout the year."This year’s wide-ranging system improvements reflect our commitment to making prudent investments to continue the delivery of safe, affordable and reliable water and wastewater service to customers," said Mark McDonough, president of New Jersey American Water. "From source to tap and back to the source again, our team of professionals works hard to maintain our facilities to keep them operating efficiently, meeting regulatory standards and delivering high quality service."Each year, New Jersey American Water invests millions of dollars in its infrastructure, which includes both maintenance and upgrades to its treatment and distribution, or pipeline, systems. This includes investments into treatment plants, tanks, pump stations, miles of pipe, water mains, fire hydrants and metering equipment.System improvement highlights during 2023 include:Mains: The company invested $175 million to install, replace or rehabilitate more than 91 miles of main. Pipe improvement projects help improve water quality, pressure, fire protection and service reliability. In addition, New Jersey American Water invested approximately $2.76 million in leak detection equipment to enhance their ability to respond to leaks and breaks.Source Water, Treatment and Other Production System Improvements: New Jersey American Water spent over $28 million for improvements at its water treatment facilities, including:Jumping Brook Water Treatment Plant – treatment improvementsCanal Road Water Treatment Plant – intake upgrades and alum tank replacementRaritan Millstone Water Treatment Plant – filter rehabilitation and treatment improvementsFire Hydrants: The company replaced 458 fire hydrants and 1,723 valves, representing an investment of approximately $17.8 million.Service Lines: New Jersey American Water replaced 13,776 service lines, an approximate $87.8 million investment.Tanks/Storage: New Jersey American Water rehabilitated five tanks and conducted detailed inspections of 40 tanks, an investment totaling approximately $10.1 million.Story continuesVisit www.newjerseyamwater.com to learn more about New Jersey American Water’s multimillion dollar program to accelerate the renewal of water infrastructure that is reaching the end of its useful life in more than 100 communities across the state.About American WaterAmerican Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water’s 6,500 talented professionals leverage their significant expertise and the company’s national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders. For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.About New Jersey American WaterNew Jersey American Water, a subsidiary of American Water, is the largest regulated water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.9 million people. For more information, visit www.newjerseyamwater.com and follow New Jersey American Water on Facebook, X, Instagram and LinkedIn.View source version on businesswire.com: https://www.businesswire.com/news/home/20240226263199/en/ContactsMedia: Denise Venuti FreeSenior Director of Communications & External AffairsNew Jersey American Waterdenise.free@amwater.com

Business Wire

New Jersey American Water Reports More Than $507 Million in System Investments Statewide in 2023

https://finance.yahoo.com/news/jersey-american-water-reports-more-194600385.html

4ec7a347-be41-3f82-ab80-bbfac92bd010

AWK

PACIFIC GROVE, Calif., February 27, 2024--(BUSINESS WIRE)--Today, California American Water filed a motion asking the Monterey County Superior Court to dismiss the Monterey Peninsula Water Management District's (District) lawsuit seeking a government takeover of the company's Monterey Peninsula water system through eminent domain. The motion argues that the District’s lawsuit fails to meet fundamental legal requirements necessary to proceed with such a significant action and should be dismissed. The motion is scheduled for a hearing by the court on April 26, 2024."We remain committed to serving the Monterey Peninsula community with safe, reliable water service, and we will continue to do so," said Evan Jacobs, Senior Director of External Affairs for California American Water. "The condemnation suit is going to waste millions of dollars in legal fees negatively impacting our residents, and we believe the District has neither the legal standing nor technical expertise to provide retail water service on the Monterey Peninsula."California American Water’s motion asserts that the District lacks legal authorization from both the California Legislature and the Monterey County Local Agency Formation Commission (LAFCO) to become the retail water service provider on the Monterey Peninsula. In addition, California American Water asserts that the District’s lawsuit improperly seeks to take property outside the boundaries of the District’s territory."The residents who must pay the taxes and fees to support the District deserve sustainable water supplies, not more litigation and an unnecessary waste of District resources," added Jacobs.California American Water and its predecessor companies have operated the Monterey Peninsula’s water system for more than 60 years. The system currently serves roughly 100,000 people with a network of over 680 miles of pipeline and over 100 storage tanks. It is one of the most complex water systems in California.Story continuesAbout American WaterAmerican Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water’s 6,500 talented professionals leverage their significant expertise and the company’s national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.About California American WaterCalifornia American Water, a subsidiary of American Water, provides high-quality and reliable water and wastewater services to approximately 700,000 people.Cautionary Statement Concerning Forward-Looking StatementsCertain statements in this press release are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to, among other things, the outcome, timing and results of the District’s condemnation efforts with respect to California American Water’s Monterey peninsula water system. These statements are based on the current expectations of management of California American Water. There are a number of risks and uncertainties that could cause actual results to differ materially from these forward-looking statements, including with respect to (1) the outcome of the eminent domain litigation filed by the District, and the timing of its resolution; (2) the continued success by California American Water of challenges to the District’s authority to own and operate the Monterey peninsula water system; (3) the result of California American Water’s efforts to dismiss the District’s eminent domain litigation; (4) unexpected costs, liabilities or delays that may be incurred by California American Water, and the amount of litigation costs to be borne by residents of the District, in connection with the defense of this eminent domain litigation and other associated proceedings and actions; (5) other regulatory, legislative, local, municipal or other actions adversely affecting California American Water specifically or the water and wastewater industries generally, including with respect to the ongoing Monterey Peninsula Water Supply Project; and (6) other economic, business and other factors.View source version on businesswire.com: https://www.businesswire.com/news/home/20240226710309/en/ContactsMedia Josh StrattonExternal AffairsPhone: 831-435-6015Email: josh.stratton@amwater.com

Business Wire

California American Water Files Motion to Dismiss Monterey Peninsula Water Management District's Condemnation Suit

https://finance.yahoo.com/news/california-american-water-files-motion-030500559.html

a9f1b629-06de-3920-b876-ae12dd96eb3e

AWK

Company will invest more than $500 million statewide in 2024ST. LOUIS, March 11, 2024--(BUSINESS WIRE)--Missouri American Water is investing more than $500 million in its water and wastewater systems statewide in 2024. The investments are focused on improving system reliability and resiliency by replacing aging infrastructure like pipes, pumps, and storage tanks and upgrading treatment plants."Missouri American Water is investing to maintain and enhance safe and reliable service as many essential components of our water and wastewater systems are reaching the end of their useful life," said Rich Svindland, president of Missouri American Water. "Proactive investments are more efficient and cost effective for our customers, and we carefully plan these projects to meet the needs of the communities we serve as well as state and federal regulations."Statewide, Missouri American Water is replacing over 90 miles of pipe this year. Replacing aging pipes improves system reliability, and in cases where water pipe is upsized, also enhances community fire protection.Customers can view pipe replacement projects that are planned, in construction and recently completed on Missouri American Water’s website missouriamwater.com by clicking on "Pipe Replacement Map."Additional projects throughout the state include:St. Louis County - Replacement of the intake pumps and chemical feed systems at the south water treatment plantJefferson City - Construction of a new filter building at the water treatment plantSt. Joseph - Upgrades to the Faraon and Randolph booster stationsJoplin – Construction of a new carbon feed system and replacement of the chlorine feed system at the treatment plantWarrensburg - Replacement of the ozone system at the water treatment plantEureka, Maplewood (near Sedalia) and Smithton – Construction of new wastewater lift stationsAbout American WaterAmerican Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water’s 6,500 talented professionals leverage their significant expertise and the company’s national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.Story continuesFor more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.About Missouri American WaterMissouri American Water, a subsidiary of American Water, is the largest investor-owned water utility in the state, providing high-quality and reliable water and wastewater services to approximately 1.6 million people. For more, visit missouriamwater.com and follow Missouri American Water on X, Facebook, Instagram, YouTube and LinkedIn.View source version on businesswire.com: https://www.businesswire.com/news/home/20240311656301/en/ContactsMedia: Christie BarnhartSenior Manager, External CommunicationsCell: 417-529-9781Christie.barnhart@amwater.com

Business Wire

Missouri American Water Investments Focused on Improving System Reliability and Resiliency

https://finance.yahoo.com/news/missouri-american-water-investments-focused-160000069.html

dc7f8cc8-a88f-313d-8abb-30c824a37752

AWK

Acquisition Adds Approximately 26,000 Wastewater Customers In Company’s FootprintGRANITE CITY, Ill., March 11, 2024--(BUSINESS WIRE)--Illinois American Water, a subsidiary of American Water completed its acquisition of the assets of the wastewater treatment plant of Granite City for $86 million. The wastewater treatment plant serves approximately 26,000 customer connections, including approximately 10,500 direct and 15,500 indirect customers in surrounding communities. This transaction follows Illinois American Water’s acquisition of the wastewater collection system of Granite City in 2020, where the company has been the water service provider for over 130 years."We thank the Granite City Council for its vote of confidence, and we look forward to growing our partnership with Granite City residents and businesses," said Illinois American Water President Rebecca Losli. "Our company and team of experienced employees are invested in the Granite City community and are well positioned to leverage our resources and expertise to address both their water and wastewater needs for years to come."Granite City Mayor Mike Parkinson said a key reason for the sale is that Illinois American Water will upgrade the Granite City Wastewater Treatment Plant and is planning approximately $40 million in capital investments at the plant in the first five years of ownership."We support this agreement with Illinois American Water because it is in the best interests of the Granite City community, today and tomorrow," said Parkinson. "It will put our city’s wastewater assets and operations into the highly capable hands of Illinois American Water, and we are also able to preserve and transition all jobs for the employees."Mayor Parkinson added that proceeds from the sale would allow the city to invest in other critical, community needs."Municipalities through the country, and in Illinois, are looking at utilities like Illinois American Water for solutions on water and wastewater infrastructure needs," added Mayor Parkinson.Story continuesIn the Metro East, in recent years, Illinois American Water has purchased the wastewater system assets of Alton, Godfrey, Grafton, Jerseyville and Shiloh.The Granite City Council approved the Asset Purchase Agreement on Wednesday, April 5, 2023, and the Illinois Commerce Commission (ICC) approved the sale on Jan. 31, 2024.About American WaterAmerican Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water’s 6,500 talented professionals leverage their significant expertise and the company’s national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.About Illinois American WaterIllinois American Water, a subsidiary of American Water, is the largest investor-owned water utility in the state, providing high-quality and reliable water and wastewater services to approximately 1.3 million people. American Water also operates a quality control and research laboratory in Belleville.AWK-IRView source version on businesswire.com: https://www.businesswire.com/news/home/20240311247450/en/ContactsMedia Terry MackinDirector, External CommunicationsIllinois American WaterTerry.mackin@amwater.com

Business Wire

Illinois American Water Completes Acquisition Of Granite City’s Wastewater Treatment Facility

https://finance.yahoo.com/news/illinois-american-water-completes-acquisition-210500265.html

00708803-79d2-3536-a9de-588769f4e39a

AXON

In the latest market close, Axon Enterprise (AXON) reached $267.70, with a -0.78% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.6%. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, lost 0.92%.The maker of stun guns and body cameras's shares have seen an increase of 3.91% over the last month, not keeping up with the Industrial Products sector's gain of 5.78% and outstripping the S&P 500's gain of 3.56%.The upcoming earnings release of Axon Enterprise will be of great interest to investors. The company's earnings report is expected on February 27, 2024. It is anticipated that the company will report an EPS of $0.86, marking a 22.86% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $418.97 million, showing a 24.64% escalation compared to the year-ago quarter.It's also important for investors to be aware of any recent modifications to analyst estimates for Axon Enterprise. 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 demonstrates that these adjustments in estimates directly associate with imminent 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Axon Enterprise presently features a Zacks Rank of #4 (Sell).Investors should also note Axon Enterprise's current valuation metrics, including its Forward P/E ratio of 65.14. This denotes a premium relative to the industry's average Forward P/E of 19.98.Story continuesThe Security and Safety Services industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 37, placing it within the top 15% of over 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.Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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 reportAxon Enterprise, Inc (AXON) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Axon Enterprise (AXON) Sees a More Significant Dip Than Broader Market: Some Facts to Know

https://finance.yahoo.com/news/axon-enterprise-axon-sees-more-225017788.html

a97e73ff-15a2-3c47-8908-eefe5d71ec8e

AXON

Axon Enterprise, Inc. AXON is scheduled to release fourth-quarter 2023 results on Feb 27, after market close.The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 61.1%.The consensus estimate for the company’s fourth-quarter 2023 revenues is pegged at $419 million, suggesting an increase of 24.7% from the year-ago quarter’s reported figure. The consensus estimate for the company’s adjusted earnings is pinned at 48 cents per share, indicating a 33.3% increase from the year-ago quarter’s reported number.Let’s see how things have shaped up for Axon this earnings season.Factors to NoteAxon’s TASER segment’s fourth-quarter 2023 performance is expected to have gained from strong demand for TASER devices and higher cartridge revenues. Also, segmental performance is likely to have reflected strong sales from virtual reality training services. However, reduced demand for Axon’s legacy TASER 7-series has been partly affecting the performance of the TASER segment. The Zacks Consensus Estimate for the TASER segment’s gross margin in the fourth quarter is pegged at $103 million, increasing 1% sequentially.The Software & Sensors segment is expected to have generated higher revenues in the to-be-reported quarter supported by the addition of new users and associated devices to the AXON network. Strong momentum in Axon Evidence and cloud services, driven by an increase in the aggregate number of users, average revenue per user and software add-ons are also likely to have driven segmental revenues.The company has been witnessing strong customer response for its newly launched next-generation body-worn camera, Axon Body 4, which is also expected to have driven the segment’s performance. The consensus mark for Software & Sensors net sales is pegged at $258 million, increasing 2.8% sequentially. Also, the Zacks Consensus Estimate for the segment’s gross margin in the fourth quarter is pegged at $157 million, increasing 2% sequentially.However, the escalating cost of sales due to raw material cost inflation is likely to have weighed on AXON’s bottom line in the to-be-reported quarter.The company has been investing heavily in product innovation for some time now. For instance, in the first nine months of 2023, the company incurred research and development expenses of $219.7 million, up 33.1% year over year. Hefty investments in research and development are likely to have adversely affected the company’s performance.The company’s international presence keeps it exposed to the risk of adverse currency fluctuations, which are likely have hurt its performance in the to-be-reported quarter.Story continuesAxon Enterprise, Inc Price and ConsensusAxon Enterprise, Inc price-consensus-chart | Axon Enterprise, Inc QuoteEarnings WhispersOur proven model does not conclusively predict an earnings beat for AXON 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, which is not the case here, as elaborated below.Earnings ESP: Axon has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 86 cents. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: Axon presently carries a Zacks Rank #4 (Sell).Highlights of Q3 EarningsAxon reported third-quarter 2023 earnings of $1.02 per share. The bottom line increased significantly year over year despite a 33.6% jump in the cost of sales. Total revenues of $413.6 million outperformed the Zacks Consensus Estimate of $393.8 million and augmented 32.7% year over year. The top line benefited from strength in Axon Cloud software, demand for Axon Fleet systems and the ramp-up of TASER 10 and Axon Body 4.Performance of Other Industrial CompaniesA. O. Smith Corporation’s AOS fourth-quarter 2023 adjusted earnings of 97 cents per share surpassed the Zacks Consensus Estimate of 96 cents. The bottom line jumped 13% year over year. Net sales of $988.1 million narrowly missed the consensus estimate of $989 million. However, the top line increased 5.6% year over year.Illinois Tool Works Inc. ITW reported fourth-quarter 2023 adjusted earnings of $2.42 per share, which surpassed the Zacks Consensus Estimate of $2.40. Earnings increased 3.4% year over year.  The company’s revenues of $3.98 billion missed the consensus estimate of $4.01 billion. The top line inched up 0.3% year over year.Stock to ConsiderHere is a company within the broader Industrial Products sector, which according to our model, has the right combination of elements to beat on earnings.Sealed Air Corporation SEE has an Earnings ESP of +3.46% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.The company is slated to release fourth-quarter 2023 results on Feb 27. Sealed Air’s earnings have surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, the average beat being 9.3%.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 reportIllinois Tool Works Inc. (ITW) : Free Stock Analysis ReportSealed Air Corporation (SEE) : Free Stock Analysis ReportA. O. Smith Corporation (AOS) : Free Stock Analysis ReportAxon Enterprise, Inc (AXON) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

AXON Gears Up to Report Q4 Earnings: What's in the Cards?

https://finance.yahoo.com/news/axon-gears-report-q4-earnings-143800740.html

3b4c5ee7-be1c-304d-9809-7678589bad11

AXON

Axon Enterprise (AXON) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Shares of this maker of stun guns and body cameras have returned +24.2% over the past month versus the Zacks S&P 500 composite's +3.6% change. The Zacks Security and Safety Services industry, to which Axon belongs, has gained 11.5% over this period. Now the key question is: Where could the stock be headed in the near term?Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.Axon is expected to post earnings of $0.98 per share for the current quarter, representing a year-over-year change of +11.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.9%.The consensus earnings estimate of $4.48 for the current fiscal year indicates a year-over-year change of +8.2%. This estimate has changed -2.8% over the last 30 days.Story continuesFor the next fiscal year, the consensus earnings estimate of $5.67 indicates a change of +26.6% from what Axon is expected to report a year ago. Over the past month, the estimate has changed +6.6%.With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Axon.The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:12 Month EPSRevenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.In the case of Axon, the consensus sales estimate of $437.52 million for the current quarter points to a year-over-year change of +27.5%. The $1.93 billion and $2.34 billion estimates for the current and next fiscal years indicate changes of +23.3% and +21.1%, respectively.Last Reported Results and Surprise HistoryAxon reported revenues of $432.14 million in the last reported quarter, representing a year-over-year change of +28.6%. EPS of $1.12 for the same period compares with $0.70 a year ago.Compared to the Zacks Consensus Estimate of $418.97 million, the reported revenues represent a surprise of +3.14%. The EPS surprise was +30.23%.The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.Axon is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Axon. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAxon Enterprise, Inc (AXON) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Investors Heavily Search Axon Enterprise, Inc (AXON): Here is What You Need to Know

https://finance.yahoo.com/news/investors-heavily-search-axon-enterprise-140011528.html

8453d167-6ed5-34f0-b91c-f29035fcd312

AXON

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 Axon Enterprise (AXON)Headquartered in Scottsdale, AZ, Axon Enterprise, Inc. develops and manufactures weapons for selling to U.S. state and local governments, the U.S. federal government, international government customers and commercial enterprises. Focused on global public safety, Axon’s suite of products includes conducted energy devices, body-worn cameras, in-car cameras, cloud-hosted digital evidence management solutions, productivity software and real-time operations capabilities.On June 3, 2020, AXON was added to the Zacks Focus List at $97.85 per share. Shares have increased 226.91% to $319.91 since then.Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.33 to $4.48. AXON also boasts an average earnings surprise of 58.7%.Earnings for Axon Enterprise are forecasted to see growth of 8.2% for the current fiscal year as well.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 AXON, 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 reportAxon Enterprise, Inc (AXON) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why This 1 Industrial Products Stock Could Be a Great Addition to Your Portfolio

https://finance.yahoo.com/news/why-1-industrial-products-stock-143007072.html

cc45cd29-93a8-388c-94d3-22577694bee1

AXP

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.In contrast to all that, many investors prefer to focus on companies like American Express (NYSE:AXP), 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 American Express American Express' Earnings Per Share Are GrowingIf you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. To the delight of shareholders, American Express has achieved impressive annual EPS growth of 45%, compound, over the last three years. That sort of growth rarely ever lasts long, but it is well worth paying attention to when it happens.One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. Not all of American Express' revenue this year is revenue from operations, so keep in mind the revenue and margin numbers used in this article might not be the best representation of the underlying business. While we note American Express achieved similar EBIT margins to last year, revenue grew by a solid 9.7% to US$56b. That's progress.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.Story continuesearnings-and-revenue-historyIn investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of American Express' forecast profits?Are American Express Insiders Aligned With All Shareholders?Owing to the size of American Express, we wouldn't expect insiders to hold a significant proportion of the company. But thanks to their investment in the company, it's pleasing to see that there are still incentives to align their actions with the shareholders. Indeed, they have a considerable amount of wealth invested in it, currently valued at US$208m. While that is a lot of skin in the game, we note this holding only totals to 0.1% of the business, which is a result of the company being so large. This should still be a great incentive for management to maximise shareholder value.Is American Express Worth Keeping An Eye On?American Express' earnings per share have been soaring, with growth rates sky high. 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. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. So based on this quick analysis, we do think it's worth considering American Express for a spot on your watchlist. Don't forget that there may still be risks. For instance, we've identified 2 warning signs for American Express that you should be aware of.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.

Should You Be Adding American Express (NYSE:AXP) To Your Watchlist Today?

https://finance.yahoo.com/news/adding-american-express-nyse-axp-140008496.html

fffa2300-bf1e-3297-8a20-3218cb03d289

AXP

If you're looking for your next great all-around stock pick, you can't go wrong borrowing one or two ideas from Warren Buffett. At Berkshire Hathaway, his investment portfolio regularly outperforms the broad market. Better still, his holdings are chosen for their long-term potential. More often than not, you can buy a stock owned by Berkshire and safely plan on staying in the position for years on end.To this end, here's a rundown of three stocks Warren Buffett has steered Berkshire Hathaway into that would also be at home in most investors' portfolios.American ExpressCredit card company Capital One is planning on acquiring rival Discover. If the merger is allowed to happen, it certainly seems to pose a threat to American Express (NYSE: AXP). But that potential threat may not be anywhere near as dire as it seems to be on the surface.While American Express is a credit card company, it's dramatically different than its credit card peers. It would be more accurate to describe its business model as the management of perks and rewards programs that just happen to revolve around charge cards.Individuals and business alike will pay as much as $695 per year for the right to use an American Express card simply because cardholders receive credit toward air travel tickets, rebates on certain forms of at-home entertainment, spendable credits at a handful of retailers, bonus hotel-stay time, cash back on grocery purchases, and more. Other card companies offer perks, but none of those rival programs hold a candle to American Express'.The company not only generates fee-based revenue each and every year, of course, but also collects interest payments as well as a small portion of each card-based transaction it facilitates. This is why the company has been such a reliable grower for years now despite plenty of competition.It's also worth noting that American Express' clientele tends to be more affluent than average, which means its customers are less likely to become delinquent on their payments or outright default on their loans.Story continuesIn this vein, while higher interest rates and a challenging economy are now leading lenders to report bigger write-downs, American Express' past-dues and write-offs are holding more or less level. Ironically, this stock could be a relative safe haven should the economy continue to weaken.Berkshire Hathaway is holding nearly 152 million shares of American Express, by the way -- a position it's been sitting on since 2006. It's also Berkshire's third-biggest holding, if that tells you anything.AppleAmerican Express may account for a significant chunk of the Berkshire Hathaway stock portfolio, but it's a distant third to the fund's single-biggest position. That honor belongs to Apple (NASDAQ: AAPL). This $174 billion trade makes up half of Berkshire's holdings in publicly traded companies.There's no denying the iPhone maker's very best days may be in the rearview mirror. Last quarter's top line was up a modest 2% year over year, bouncing back only a bit from the 3% revenue lull reported for the fiscal year ended in September. iPhone revenue remains relatively stagnant, and IDC reports that unit sales of iPhones have actually been declining for over a year now. Given that the popular smartphone makes up over half of Apple's business, this trend is more than a little concerning.The company is pivoting, though. Take its services arm as an example. Sales of apps and digital content are now the organization's second-biggest business. And, while still miles behind the iPhone in terms of the total amount of operating profit it produces, Apple's operating profit margins on its services business are ridiculously high at 70% of its revenue. Indeed, this division now accounts for roughly one-third of the company's bottom line. As this services unit grows, it's going to make an oversized impact on Apple's overall net income.It's not just the ongoing growth of its services business keeping Buffett and his acolytes on board with Apple. The company's finally venturing into other businesses lines that mesh well with its existing technologies. For instance, it's reinventing its voice-activated assistant Siri now that artificial intelligence is making such tools wildly useful. Its recently launched Vision Pro goggles represent the next step in the evolution of augmented reality as well, even if it's not yet perfectly clear how this tech can be best monetized.The point is, Apple's got several different levers it can pull here even if the iPhone itself has peaked.Coca-ColaLast but not least, add The Coca-Cola Company (NYSE: KO) to your list of Warren Buffett stocks you may want to consider buying for yourself.It's not a complicated, sexy pick. But that's kind of the point. When you own a stake in Coca-Cola, you own a piece of a cash-generating juggernaut that's easy to defend. This cash is then turned into dividends, which have not only been paid like clockwork every quarter for decades, but have now been raised in each of the past 62 years. There are only a handful of companies out there that can make the same (or better) claim.The secret to Coca-Cola's success? There are three of them actually, although they're not exactly secrets. The first of these is Coca-Cola's ability to build and maintain brands that consumers love and purchase without even thinking about it. More than mere marketing, Coca-Cola is part of a lifestyle, and even part of the global culture.The second pillar of The Coca-Cola Company's consistent success is its business model. It's not quite what you may think it is. It's never actually bottled all of its products, and in recent years it's done very little of its own bottling. Rather, its core business is selling concentrated flavor syrups to bottlers that then take on the burden -- and the inconsistent costs -- of producing the products you find placed in stores.This model is a much more consistent one than bottling itself, since the cost of creating and handling these syrups is minimal compared to the labor-intensive and input-intensive process of creating the final products that consumers buy.Finally, while you certainly know the company's namesake cola, The Coca-Cola Company is far more diversified than you might realize. In addition to familiar sodas like Sprite and Fanta, Coca-Cola is also the name behind Powerade sports drinks, Minute Made juices, Gold Peak tea, Dasani water, and more. It's got something to sell to everyone at any given time.The 400 million shares of Coca-Cola Berkshire Hathaway's been holding since 2006 are worth a total of nearly $24 billion, by the way. That makes it Berkshire's fourth-biggest holding.Should you invest $1,000 in Coca-Cola right now?Before you buy stock in Coca-Cola, consider this:The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.See the 10 stocks*Stock Advisor returns as of February 26, 2024American Express is an advertising partner of The Ascent, a Motley Fool company. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.3 No-Brainer Warren Buffett Stocks to Buy Right Now was originally published by The Motley Fool

Motley Fool

3 No-Brainer Warren Buffett Stocks to Buy Right Now

https://finance.yahoo.com/news/3-no-brainer-warren-buffett-151500349.html

71175ee9-7883-320f-aa2a-1e6e834f7087

AXP

American Express (AXP) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Over the past month, shares of this credit card issuer and global payments company have returned +5.1%, compared to the Zacks S&P 500 composite's +2.7% change. During this period, the Zacks Financial - Miscellaneous Services industry, which American Express falls in, has gained 3.8%. The key question now is: What could be the stock's future direction?Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.American Express is expected to post earnings of $2.99 per share for the current quarter, representing a year-over-year change of +24.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.8%.For the current fiscal year, the consensus earnings estimate of $12.82 points to a change of +14.4% from the prior year. Over the last 30 days, this estimate has remained unchanged.Story continuesFor the next fiscal year, the consensus earnings estimate of $14.71 indicates a change of +14.7% from what American Express is expected to report a year ago. Over the past month, the estimate has changed +0.1%.Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, American Express is rated Zacks Rank #2 (Buy).The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:12 Month EPSRevenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.In the case of American Express, the consensus sales estimate of $15.75 billion for the current quarter points to a year-over-year change of +10.3%. The $66.19 billion and $71.77 billion estimates for the current and next fiscal years indicate changes of +9.4% and +8.4%, respectively.Last Reported Results and Surprise HistoryAmerican Express reported revenues of $15.8 billion in the last reported quarter, representing a year-over-year change of +11.5%. EPS of $2.62 for the same period compares with $2.07 a year ago.Compared to the Zacks Consensus Estimate of $16.03 billion, the reported revenues represent a surprise of -1.43%. The EPS surprise was -1.13%.Over the last four quarters, American Express surpassed consensus EPS estimates two times. The company topped consensus revenue estimates just once over this period.ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.American Express is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about American Express. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAmerican Express Company (AXP) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

American Express Company (AXP) is Attracting Investor Attention: Here is What You Should Know

https://finance.yahoo.com/news/american-express-company-axp-attracting-130010055.html

74742dea-bed1-3759-aceb-1d499b2cd641

AXP

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 This 1 Growth Stock Should Be On Your WatchlistFor growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.American Express (AXP)Founded in 1850, NY-based American Express Company is a diversified financial services company, offering charge and credit payment card products, and travel-related services worldwide. American Express and its main subsidiary – American Express Travel Related Services Company, Inc. (“TRS”) – are bank holding companies under the Bank Holding Company Act of 1956. The company offers business travel-related services through its non-consolidated joint venture, American Express Global Business Travel (the GBT JV).AXP boasts a Growth Style Score of B and VGM Score of B, and holds a Zacks Rank #2 (Buy) rating. Its bottom-line is projected to rise 14.4% year-over-year for 2024, while Wall Street anticipates its top line to improve by 9.4%.11 analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.42 to $12.82 per share. AXP also boasts an average earnings surprise of 1.1%.Looking at cash flow, American Express is expected to report cash flow growth of 9.7% this year; AXP has generated cash flow growth of 5.4% over the past three to five years.Story continuesInvestors should take the time to consider AXP for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.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 Express Company (AXP) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

Why American Express (AXP) is a Top Growth Stock for the Long-Term

https://finance.yahoo.com/news/why-american-express-axp-top-134511338.html

a0050ca8-27b1-3c91-bb53-6b81ef76984a

AZO

AutoZone AZO is slated to release second-quarter fiscal 2024 results on Feb 27, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at $26.08 per share and $3.85 billion, respectively.The Zacks Consensus Estimate for AZO’s fiscal second-quarter earnings per share has moved down 10 cents in the past seven days. The bottom-line projection indicates year-over-year growth of 5.84%. The Zacks Consensus Estimate for quarterly revenues implies a 4.40% rise from the prior-year level.The automotive parts retailer posted earnings of $32.55 per share for first-quarter fiscal 2024, which improved 18.6% from the prior-year figure and topped the Zacks Consensus Estimate of $31.01. The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 8.88%. This is depicted in the graph below:AutoZone, Inc. Price and EPS SurpriseAutoZone, Inc. Price and EPS SurpriseAutoZone, Inc. price-eps-surprise | AutoZone, Inc. QuoteWhat Does Our Model Say?Our proven model does not conclusively predict an earnings beat for AutoZone 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. That is not the case here.Earnings ESP: AutoZone has an Earnings ESP of -0.23%. This is because the Most Accurate Estimate is pegged at $26.02, which is lower than 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: AutoZone currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.Things to NoteAutoZone’s omni-channel efforts to improve customer shopping experiences are reaping profits. The company’s e-commerce efforts that are driving traffic to its website are likely to have positively impacted performance in the second quarter of fiscal 2024. Our projection for domestic store sales is pegged at $3.28 billion, implying an uptick of around 2% year over year. Our projection for sales from Mexico and Brazil stores indicates year-over-year growth of 18.6%.Inventory assortment improvements, technological advancements, fast delivery and high-quality products, the solid reputation of the Duralast brand across the professional customer base, maintenance of competitive pricing and greater engagement from store-operating teams are expected to have driven the company’s growth in the to-be-reported quarter.Discouragingly, the company anticipated challenges in its DIY sales during the second quarter. On the domestic retail front, the company observed a 1.6% decrease in traffic, partially mitigated by a 1.5% increase in ticket growth. Looking ahead, AZO anticipates a modest decline in transaction counts. Further, AutoZone’s technology investments to improve the electronic catalog might limit cash inflows. We anticipate the company’s operating SG&A expenses to increase 4.6% year over year in fiscal 2024. The decline in DIY sales and rising expenses are likely to have hurt AZO’s result in the to-be-reported quarter.Story continuesPeer ReleasesO’Reilly Automotive, Inc. ORLY reported fourth-quarter 2023 results on Feb 7. Its adjusted earnings per share of $9.26 beat the Zacks Consensus Estimate of $9.07. The bottom line increased from $8.37 in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $3,832 million, which missed the Zacks Consensus Estimate of $3,838 million. The top line, however, increased 5.2% year over year. During the quarter, comps grew 3.4%. The company opened 47 new stores in the United States and Mexico. The total store count was 6,157 as of Dec 31, 2023.ORLY had cash and cash equivalents of $279.1 million at the end of the reported quarter, up from $108.6 million recorded as of 2022-end. Its long-term debt was $5.57 billion, higher than $4.37 billion as of Dec 31, 2022.LKQ Corporation LKQ reported fourth-quarter 2023 results on Feb 22. It delivered adjusted earnings of 84 cents per share, which increased from adjusted earnings of 78 cents in the year-ago quarter and surpassed the Zacks Consensus Estimate of 75 cents. LKQ generated quarterly revenues of $3.5 billion, which missed the Zacks Consensus Estimate of $3.51 billion but increased from the year-ago level of $3 billion. Parts and services organic revenues increased 2.8% year over year.LKQ had cash and cash equivalents of $299 million as of Dec 31, 2023, compared with $278 million as of Dec 31, 2022. Total long-term obligations (excluding the current portion) were $3.66 billion as of Dec 31, 2023, up from $2.62 billion as of Dec 31, 2022.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 reportO'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis ReportAutoZone, Inc. (AZO) : Free Stock Analysis ReportLKQ Corporation (LKQ) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

Zacks

AutoZone (AZO) to Report Q2 Earnings: Here's What to Expect

https://finance.yahoo.com/news/autozone-azo-report-q2-earnings-135300278.html

e26029e8-76b2-362c-ac3c-fb09f0bc1357

AZO

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

Yahoo Finance Video

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

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

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

AZO

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. So, when we ran our eye over AutoZone's (NYSE:AZO) trend of ROCE, we really liked what we saw.Understanding Return On Capital Employed (ROCE)If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for AutoZone:Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)0.46 = US$3.7b ÷ (US$17b - US$8.8b) (Based on the trailing twelve months to February 2024).So, AutoZone has an ROCE of 46%. That's a fantastic return and not only that, it outpaces the average of 14% earned by companies in a similar industry. See our latest analysis for AutoZone roceAbove you can see how the current ROCE for AutoZone compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for AutoZone .The Trend Of ROCEIn terms of AutoZone's history of ROCE, it's quite impressive. The company has employed 80% more capital in the last five years, and the returns on that capital have remained stable at 46%. Returns like this are the envy of most businesses and given it has repeatedly reinvested at these rates, that's even better. If AutoZone can keep this up, we'd be very optimistic about its future.Another thing to note, AutoZone has a high ratio of current liabilities to total assets of 52%. This can bring about some risks because the company is basically operating with a rather large reliance on its suppliers or other sorts of short-term creditors. Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks.Story continuesOur Take On AutoZone's ROCEIn summary, we're delighted to see that AutoZone has been compounding returns by reinvesting at consistently high rates of return, as these are common traits of a multi-bagger. And long term investors would be thrilled with the 220% return they've received over the last five years. So even though the stock might be more "expensive" than it was before, we think the strong fundamentals warrant this stock for further research.On a final note, we found 3 warning signs for AutoZone (1 makes us a bit uncomfortable) you should be aware of.High returns are a key ingredient to strong performance, so check out our free list ofstocks earning high returns on equity with solid balance sheets.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.

Capital Investment Trends At AutoZone (NYSE:AZO) Look Strong

https://finance.yahoo.com/news/capital-investment-trends-autozone-nyse-110021890.html

3aff7b5b-223a-3297-b12a-1f1d86be638a

AZO

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

BA

The Federal Aviation Administration issued a report Monday sharply critical of the safety culture at Boeing, following two fatal crashes and several years of safety and quality issues at the troubled aircraft maker.Despite Boeing’s repreated claims of its commitment to safety procedures, the report by a panel of industry experts said it did not find “objective evidence of a foundational commitment to safety that matched Boeing’s descriptions of that objective.”Some Boeing employees did not understand their role in safety and feared retaliation for raising safety-related concerns, according to the report by federal safety experts.The panel, created after fatal Boeing 737 Max crashes in 2018 and 2019 but before the recent incident in which a door plug blew out the side of an aircraft, found “gaps in Boeing’s safety journey.”It also identified “hesitation in reporting safety concerns for fear of retaliation” because of management conflicts of interest and said confusion about the safety programs “may discourage employees from submitting safety concerns.”Boeing said in a statement to CNN that it has “taken important steps to foster a safety culture that empowers and encourages all employees to share their voice. But there is more work to do.”“We will carefully review the panel’s assessment and learn from their findings, as we continue our comprehensive efforts to improve our safety and quality programs,” Boeing’s statement said. It also included a quote from CEO Dave Calhoun that urged “all teammates to use their voices to speak up.”But the report documented a “disconnect between Boeing’s senior management and other members of the organization on safety culture.”The panel was made up of Federal Aviation Administration officials and representatives from airlines, labor unions and safety units at other aerospace companies. Its work included conducting more than 250 interviews and reviewing more than 4,000 pages of documents and focused on both safety culture and the FAA program that delegates some aircraft certification work to Boeing employees.Story continuesThe panel was not charged with reporting on any specific incident involving Boeing aircraft.“However on several occasions during the expert panel’s activities, serious quality issues with Boeing products became public. These quality issues amplified the expert panel’s concerns that the safety-related messages or behaviors are not being implemented across the entire Boeing population,” the report said.In particular, it found Boeing repeatedly revised its Safety Management System – or SMS – manual, which is supposed to guide employees on procedures they should follow to insure planes are safe. But the panel said despite a wholesale re-write of the manual in recent years, it found “many Boeing employees did not demonstrate knowledge of Boeing’s SMS efforts, nor its purpose and procedures.”The panel recommended the company re-work safety procedures so that they can be “clearly understood and followed by employees at all levels of Boeing.”Certain Boeing employees are delegated special FAA powers allowing them to make decisions that go against Boeing’s interest. Some of those employees told the panel that Boeing managers treated them differently, sometimes re-assigning them. And while the company has made some changes to deter retaliation, the report said the current structure “still allows opportunities for retaliation to occur,” including decisions regarding salary.That unit – the Organization Designation Authorization team, or ODA – is also losing key experience due to employees leaving or retiring, the report said.This story has been updated with additional reporting and context.For more CNN news and newsletters create an account at CNN.com

CNN Business

Aviation safety panel finds Boeing culture included safety ‘gaps,’ fear of retaliation

https://finance.yahoo.com/news/aviation-safety-panel-finds-boeing-210450985.html

54c5d6af-f2ba-357b-a44d-aa601752f1cc