Daily Archives: October 8, 2018

Market Preview

Market Preview: Market Directionless With Bond Market Closed

Markets seesawed between positive and negative Monday without the U.S. bond market available to lend direction. Already pundits are calling for Fed Chief Powell’s head, as they fear rising rates will crush the decade long bull market. In a CNBC interview Monday, BlackRock CIO Rick Rieder, who oversees the management of $1.85 trillion in bonds, said he believes the Fed will back down and only raise one or two times next year. Many worry that by telegraphing its moves, the Fed has been set on autopilot and a course correction would be very difficult to implement. Market participants may prefer a little more uncertainty coupled with a more data driven approach headed into 2019. But, others point to the fact that the market moves thus far in reaction to rising rates has been a mere blip in this long-toothed bull market.

Tuesday investors will get earnings from AZZ Corp. (AZZ) and Helen of Troy (HELE). AZZ had a rough past year, as CEO Tom Ferguson put it on their last earnings call, “We are glad to have the year…behind us.” In addition to issues including large customer project cancellations, the company was forced to undertake a restatement of its financials which clearly took a toll on management. The company, which provides a variety of metal working and coating material services for the energy market, has performed relatively well in the circumstances. Investors will be looking for the company to hit the reset button, and will want to know exactly what that entails moving forward. Helen of Troy CEO Julien Mininberg proudly touted the company’s increased online sales, up 30%, last quarter. Shareholders were pleased with the efficient operation of the household and beauty goods provider, sending the stock up almost 15% after that earnings report. The stock has continued a good run, but has pulled back recently headed into Tuesday’s earnings.

The small business optimism index is expected to pull back very slightly from last month’s record high when it is announced Tuesday morning. The consensus is for the index to move from 108.8 to 108. Redbook retail numbers will also be released Tuesday morning. The weekly number may serve as a canary in a coal mine for analysts looking for interest rate impact on consumer pocketbooks as we head into Q4. Mortgage application numbers are expected to be flat when they are announced Wednesday. With new mortgages ticking up .1% but refis backtracking .1% the overall number is expected to remain unchanged. Investors will also have a chance to peruse the PPI and Atlanta Fed business inflation expectation data on Wednesday.

Fastenal (FAST), a bellwether of the industrial construction market, reports earnings Wednesday. Analysts will want to hear how management sees rising rates impacting business into next year. The nuts and bolts provider may have especially relevant insight into the industrial construction market at this juncture in the Fed story. Also reporting on Wednesday is VOXX International (VOXX). The automotive and consumer audio provider is down 38% in the past year. Last quarter CEO Pat Lavelle promised the second half of the year would see better earnings numbers, as well as a continuation of cost cutting. Investors looking for a rebound in the stock will be looking to Mr. Lavelle for the promised improvements.

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Multiply Your Monthly Income with the World’s First Online Dividend Forecaster

Are you secure in retirement or will you be when you reach that age? Odds are that if you are a middle class wage earner, the answer is a scary NO. A recent Wall Street Journal article noted that 10,000 baby boomers turn 65 every day. On the subject of these people entering retirement the article said this:

“Most of the rest are unprepared. Fifty-four percent of households with middle incomes—ranging from around $48,000 to $95,000 a year—don’t have enough saved to maintain their quality of living in retirement, according to the Boston College Center for Retirement Research.”

A 54% chance of a financially challenged retirement just stinks! Once you leave the job with a paycheck, you must plan your finances to make what you have accumulated up until that time last the rest of your life.

It is truly a daunting task to manage your savings to both provide enough money to pay for your lifestyle in retirement and to make sure your money will last the rest of your life, which could be 35 or 40 years or longer.

There is no scarier scenario than the possibility of running out of money late into your retirement years. Just at the time when your expenses may be increasing to pay for the life changes that getting older my force upon us.

You may be surprised at the poor choices the planning options the financial services industry offers to retirees who have saved enough or close to enough, but need to that money to produce a strong rate of return that can be withdrawn to provide a retirement income.

If you have a big enough nest egg so that a 3% to 4% withdrawal rate will provide the income you want, the financial services industry can help you out. Keep in mind that level of withdrawal means a $30,000 to $40,000 retirement income from $1 million in savings. I don’t know about you, but to me $30k a year doesn’t feel like being a millionaire! Even with this low of a withdrawal rate a back testing of the traditional portfolio balanced between stocks and bonds has a 20% chance of running out of money in 30 years. That too is a scary statistic.

When I give investor conference presentations, I talk to investors about using a portfolio of higher yield stocks as the core of an investment portfolio. By higher I mean cash returns ranging from 5% into the teens.

Consider this scenario. If you have a portfolio with an average yield of 8%, you can withdraw 6% per year and never have to sell a share. You will even have cash earnings left over to reinvest and grow your future income potential.

In contrast to that approach, the 4% rule espoused by the financial services industry assumes you will sell of stocks and bonds, since such a portfolio will not produce enough dividend and interest income to cover the withdrawals. Selling shares to pay for retirement in the middle of a stock market crash will put an unrecoverable dent in your retirement savings. Back to the high yield dividend idea If you earn enough income from your stocks to never have to sell shares, your retirement security is immune to the swings of the stock market. Let that sink in. A retirement investment plan that takes out worrying about what the stock market is doing.

There are challenges to implementing a high-yield stock investment plan. These types of stocks require a different set of analysis tools. You can’t just do a stock screen for yield and buy the ones at the top of the list. You can’t build a high yield portfolio using ETFs. Financial advisors love recommending ETFs. They don’t have the time to analyze individual stocks. You as an individual investor need to have the tools or the help to pick out the safe high yield stocks from the dangerous ones.

Finally, you might be surprised to learn that most brokerage accounts do not track and do not include dividend income in the return calculations shown in a brokerage account. The high yield stock investor needs other tools to track how much income a portfolio is generating to accurately determine how much can be withdrawn to cover a retirement lifestyle.

One tool that I, along with thousands of my readers, use is the Monthly Dividend Paycheck Calendar.

With the calendar you can forecast with a great degree of accuracy exactly how much your stocks will bring in month.

It tells you when you’ll get paid and helps you figure out how much each and every month based on a portfolio of only about 20 stocks. That way you won’t have to worry about how you’ll cover the bills and can better budget during retirement and stop worrying about money.

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Source: Investors Alley 

Growth Stocks

6 Stocks Set for Monster Growth in 2019

Source: Shutterstock

Although stocks have experienced a rough start so far in 2018, some stocks still have a big chance to shine this year. The best stocks to buy now go above and beyond the normal growth prospects. While looking for these kinds of investments, I examined six of the best stocks to invest in, all with huge upside potential and support from the Street’s top analysts.

The best way to find these stocks is with TipRanks’ Top Analyst Stocks tool.

Why? Well, the tool reveals all stocks with strong buy ratings from Wall Street’s best-performing analysts. You can then sort the stocks by upside potential to pinpoint compelling investing opportunities.

At the same time, I was careful to avoid stocks that have big upside potential simply because share prices have crashed recently. Check the price movement over the last three months to be sure shares are moving in the right direction.

With that being said, let’s get straight down into taking a closer look at these six stocks to buy now — all of which I believe look undervalued.

[Editor’s Note: This article originally ran on Feb. 23, 2018. It has since been republished to reflect changes in upside potential.]

Stocks to Buy Now: Cloudera (CLDR)

Source: JD Hancock via Flickr

Stocks to Buy Now: Cloudera (CLDR)

Big data cruncher Cloudera (NYSE:CLDR) has upside potential of 22.3% say the Street’s top analysts. Currently, the stock is trading at $18.31 but analysts see it hitting $22.38 in the coming months. The stock has experienced some volatility this year, but it is now in a very promising setup. Indeed, since its downturn in April, Cloudera has surged 50%!

Michael Turits, a five-star analyst from Raymond James, reiterated his Cloudera “buy” rating yesterday at $24.

We can see from TipRanks that this ‘Strong Buy’ stock has a lot of Street support. Indeed, in the last three months, CLDR has received five buy ratings, including an upgrade from D.A. Davidson.

Stocks to Buy Now: Dave & Busters (PLAY)

Source: Mike Mozart via Flickr

Stocks to Buy Now: Dave & Busters (PLAY)

The hybrid game arcade and restaurant chain Dave & Buster’s Entertainment (NASDAQ:PLAY) is set for a rebound in 2018. And that means big upside potential from the current share price. Analysts expect that PLAY shares will go all the way from $63.25 to $70.20, or upside of roughly 11%.

However, Maxim Group’s Stephen Anderson is more bullish than consensus — he believes the stock can soar to $71. Even though the stock has experienced some short-term sales volatility, he says that valuation remains very compelling.

Ealier, Anderson described PLAY stock as “deeply inexpensive relative to Casual Dining Peers” and ultimately: “Our core thesis on PLAY, which is comprised of; (1) high-margin entertainment revenue growth; (2) robust unit expansion; and (3) longer-term comp growth of at least 2%, remains intact.” PLAY should also benefit big-time from the upcoming tax reform.

In the last three months, PLAY has received an impressive seven consecutive buy ratings. As a result, the stock has a ‘Strong Buy’ analyst consensus. Out of these ratings, five come from best-performing analysts.

Stocks to Buy Now: CBS Corp (CBS)

Source: NASA Blueshift via Flickr

Stocks to Buy Now: CBS Corp (CBS)

Media stock CBS Corporation (NYSE:CBS) can climb more than 34% in the next 12 months say top analysts. This would see the stock trading at nearly $70 versus the current share price under $60.

Just a couple of days ago, Imperial Capital’s David Miller reiterated his “buy” rating. This was accompanied with a very bullish $71 price target. Miller expressed positivity in the outlook following strong fundamentals from “positive initiatives” put in place by the former CEO.

Previously, Benchmark’s Daniel Kurnos said, “that the demise of Network ad revenues is greatly exaggerated.” He even says that this bearish talk is overshadowing “the positive traction CBS is seeing in its ancillary revenue streams.” The underlying business model is very strong and “the pressure on the media sector has created a buying opportunity for the content leader.”

Meanwhile, out of nine recent ratings on CBS, six are buys. This means that in the last three months only three analyst have published hold ratings on the stock.

Stocks to Buy Now: Neurocrine (NBIX)

Source: Shutterstock

Stocks to Buy Now: Neurocrine (NBIX)

In this article’s previous iteration, I highlighed Neurocrine Biosciences (NASDAQ:NBIX) at $79 with a 12-month price target of $104.88. Now NBIX stock is trading at $115.30! And top analysts believe this biopharma still has serious growth potential left to run in 2019. Specifically, the Street sees NBIX rising from $115.30 to $133.71, or 16% upside.

The Street is buzzing about Neurocrine’s Ingrezza drug. This is the first FDA-approved treatment for adults with tardive dyskinesia (TD). A side effect of antipsychotic medication, TD is a disorder that leads to unintended muscle movements. Stifel analyst Paul Matteis is very optimistic, raising his price target from $137 to $142.

Encouragingly, the stock has received no less than 10 consecutive buy ratings from analysts in the last three months. Seven out of the 10 of these buy ratings are from top-performing analysts.

Stocks to Buy Now: Sinclair Broadcast (SBGI)

Source: Shutterstock

Stocks to Buy Now: Sinclair Broadcast (SBGI)

Sinclair Broadcast Group (NASDAQ:SBGI) is one of the U.S.’s largest and most diversified television station operators. SBGI stock has had a rough 2018, but top analysts see strong upside potential ahead.

Benchmark Capital previously named SBGI as one of its Best Ideas for 1H18. Five-star Benchmark analyst Daniel Kurnos says “We see SBGI as one of the best values in the entire media landscape.” He is now eyeing $38 as a potential price target, a double-digit gain from its current perch of $28.56.

According to Kurnos, Sinclair has multiple upcoming catalysts over the next six months. This includes the pending mega deal between Sinclair and Tribune. Sinclair is currently waiting for regulatory approval for the $3.9 billion takeover would give Sinclair control of 233 TV stations.

Top analysts are united in their bullish take on this strong buy stock. In the last three months, five analysts have published buy ratings on Sinclair.

Stocks to Buy Now: Laureate Education (LAUR)

Source: Shutterstock

Stocks to Buy Now: Laureate Education (LAUR)

Laureate Education (NASDAQ:LAUR) is the largest network of for-profit higher education institutions. This Baltimore-based stock owns and operates over 200 programs (on campus and online) in over 29 countries. Analysts believe impressive upside is on the way. Currently, this is still a relatively cheap stock to buy at just $14.85.

Barrington analyst Alexander Paris, just today, reiterated his “buy” rating on LAUR stock at $20, meaning upside of 34%!

Previously, Stifel Nicolaus analyst Shlomo Rosenbaum notes that Chile’s election result is a “material positive” for Laureate. He says new President Sebastian Pinera is less likely to support legislation for free post-secondary education- the prospect of which has dampened prices to date. Rosenbaum currently has an $18 price target on the stock.

Overall, Laureate certainly has the Street’s seal of approval. The stock has scored four top analyst buy ratings recently. This includes a bullish call from one of TipRanks’ Top 20 analysts for 2017, BMO Capital’s Jeffrey Silber.

TipRanks offers investors the latest insight into eight different sectors by tracking the activity of 4,500 analysts, 5,000 financial bloggers and even 37,000 corporate insiders. As of this writing, Harriet Lefton did not hold a position in any of the aforementioned securities.

Buffett just went all-in on THIS new asset. Will you?
Buffett could see this new asset run 2,524% in 2018. And he's not the only one... Mark Cuban says "it's the most exciting thing I've ever seen." Mark Zuckerberg threw down $19 billion to get a piece... Bill Gates wagered $26 billion trying to control it...
What is it?
It's not gold, crypto or any mainstream investment. But these mega-billionaires have bet the farm it's about to be the most valuable asset on Earth. Wall Street and the financial media have no clue what's about to happen...And if you act fast, you could earn as much as 2,524% before the year is up.
Click here to find out what it is.

Source: Investor Place