7 Dividend Titans Trading Like Growth Stocks

Source: Steve Buissinne via Stock Snap

Investors are often on the lookout for a fourth-quarter swoon starting in October. Sometimes it comes to fruition and other times it does not. This year though, it most certainly has and the volatility has lasted about two months. It’s left investors fleeing growth stocks, gobbling up dividend stocks and looking for shelter.

And we may not be out of the woods yet. That’s particularly true if the trade situation with China doesn’t improve. The White house had announced a trade war cease fire after a meeting at the G-20 summit, though the exact details of the agreement are not entirely clear.

It helps that the Federal Reserve is walking back its rate-hiking outlook. Investors are feeling more comfortable that the Fed will not hike us into a recession, although skepticism remains.

Even though GDP is growing nicely, consumer spending is red hot and unemployment is low, the stocks that are outperforming are all ones we’d want to own during a recession. That’s not a great development, particularly as investors dump FANG and multiple sectors into bear market territory.

It has been an ugly showing to say the least, but can we get back on the right track? Let’s take a closer look at a few dividend stocks trading like growth stocks.

Johnson & Johnson (JNJ)

Dividend Stocks: Johnson & Johnson (JNJ)

Source: Shutterstock

Dividend Yield: 2.5%

Johnson & Johnson (NYSE:JNJ) did stumble from over $138 to $132 in early October, but it didn’t take long for investors to find comfort in this long-time dividend stalwart.

Johnson & Johnson pays out a 2.5% dividend yield, has a payout ratio below 50% and has raised its annual payout for 56 consecutive years. When the economy falls on hard times, it’s hard not to like a consistent payout like that.

With JNJ, we get a rock-solid balance sheet and a dividend we know we’ll collect. On the charts, we were buyers last week on a test of the 50-day moving average. That proved to work out well, with shares quickly bouncing from this level.

But can they work their way up and past the recent high near $148? If JNJ can’t do that, we’ll have a lower high on our hands and will have to see if uptrend support (blue line) can keep it afloat. Below $140, JNJ losses a bit of its luster.

McDonald’s (MCD)

Dividend Stocks: McDonald’s (MCD)

Source: Shutterstock

Dividend Yield: 2.5%

Some fast-food and fast-casual names have been on fire and McDonald’s (NYSE:MCD) is no exception.

Yielding a similar payout of 2.5%, McDonald’s has raised its annual payout for more than four decades. It’s another name that does well during a recession. Part of that is the dependable yield, the other is a dependable (although not necessarily healthy) burger.

Further, its stock has been dependable too. While Amazon (NASDAQ:AMZN), Netflix(NASDAQ:NFLX) and Apple (NASDAQ:AAPL) have all fallen by 20% or more from peak to trough, MCD is quietly up about 10% from the beginning of October.

It’s outperforming its peers, major market indices and most equities during the last eight weeks. This one has been on fire, clearing its previous all-time high near $175 made in January before settling back a little on the latest bout of market weakness.

The tough part with McDonald’s is, what happens if growth stocks come back to life?

So long as it’s over the 21-day moving average and uptrend support, I don’t see a reason to get too defensive. Fall below that mark though, and this play could lose some momentum. Long-term investors don’t have much to worry about, but short-term traders hiding out in this dividend stud might want to think twice if it goes below this level.

Coca-Cola (KO)

Dividend Yield: 3.2%

Coca-Cola (NYSE:KO) is another one showing signs of exhaustion. While the company has done a great job to transform itself over a multi-year effort, one has to wonder how long the show can go on.

Despite the roughly 6% rally over the last two months — tepid compared to MCD — Coca-Cola shares still yield 3.2%.

Earlier this month we suggested some covered calls for investors who are comfortable with that options strategy. As we see shares pulling back and stagnating in this upper-$40s area, that trade is playing out well.

But what do investors do now? This stock has been in a narrow trending range over the last five years. While KO did flirt with a breakout of this range, it’s still within it now. Coca-Cola has held up too well over the past two months to consider bailing on it on a whim. On a decline, look for $46 to keep big KO afloat. Above $50 and look for this one to keep on chugging.

Procter & Gamble (PG)

Dividend Stocks: 3.1%

Like KO, the turnaround efforts are working for Procter & Gamble (NYSE:PG) — at least, they’re working for PG stock.

Even after accounting for a notable dip in early October, shares of Procter are still up 17% over the last eight weeks. It’s hard to complain about that kind of performance, particularly as investors continue to collect a 3.1% dividend yield.

This name has not only dished out a dividend for more than 60 years, but also raised its annual payout each year through that span. That’s incredible when you think about it.

With that said, Procter & Gamble is putting in the same lower-high look that JNJ is. Of course, that move would be negated if PG stock can soon rally to take out its highs from earlier this month. If not though, investors have to be thinking about a slight to moderate pullback.

On a decline, look to see how PG holds up near $90. This level acted as resistance back in January 2018 and December 2017. Look for it to now act as support. Further, uptrend support  is just below this mark. I wouldn’t worry too much (from a trading perspective) unless PG fell below the 50-day.

Verizon (VZ)

Dividend Stocks: Verizon (VZ)

Source: Shutterstock

Dividend Yield: 4.2%

Also a “lower high” candidate, Verizon (NYSE:VZ) is chopping around near its highs.

My gut tells me that the next few weeks could either be an acceleration higher for these dividend names or a rotation out of these stocks and back into traditional growth stocks. Which one it will be, I’m not sure. These “lower highs” show investors’ hesitation in the charts as well. Ultimately, the performance of the major indices will likely be the deciding factor.

Despite Verizon’s roughly 13% rally over the last two months, shares still yield about 4.2%. In that time, the 50-day moving average has become a pretty solid indicator of support.

Should it fail, look for a decline into the mid-$50s, down near the $56 level.

If you’re not in VZ, I would wait for this potential pullback to materialize. In the meantime, consider going long AT&T (NYSE:T). It has a much larger yield at 6.5% and has raised its dividend for 33 consecutive years (triple the length of Verizon). Plus, it just laid out a promising roadmap for its earnings and free-cash flow for 2019.

Plus, its dividend is almost never this high.

PepsiCo (PEP)

Dividend Stocks: PepsiCo (PEP)

Source: Shutterstock

Dividend Yield: 3.2%

Have I said “lower high” enough? By now I’m sure you’re getting the picture. Long-term investors shouldn’t worry about it too much, but short-term traders should consider the possible rotation ramifications here.

But as they say on Wall Street, the trend is your friend until it bends. With PepsiCo (NYSE:PEP), there has been no such bend. We were buyers during its May decline and that move has paid big dividends — no pun intended.

Holding up over the 21-day moving average and uptrend support, this 3.1% yielder has been trading incredibly well. Below these levels and we likely get a dip down to the 50-day moving average. Below that and we’ll likely see the 200-day. That said though, I don’t anticipate this chart falling apart anytime soon.

If anything, I’m looking for a breakout over this $118 to $120 range. Same with Coca-Cola? Now that’s something to ponder.

Realty Income (O)

Realty Income (O)

Dividend Yield: 4.1%

As if the first six names on this list weren’t an obvious indicator, the performance by Realty Income (NYSE:O) and other REITs is a major sign that investors are seeking high-quality income.

Why? Because even with a more hawkish Fed, investors are flocking to real estate. That’s right. The same worry that took these names down big in Q4 2017 and gave them a major hangover to start 2018 is now seemingly absent from investors’ minds.

As we worry about further rate increases, REITs like Realty Income continue to grind higher. Of course, when we zoom out it makes more sense. With rising rates comes a stronger economy and with a stronger economy comes better performance from businesses, which are the tenants to companies like O.

They don’t call O “The Monthly Dividend Company” for nothing, either. Still yielding over 4.1%, this dependable company has been depositing rising “rent” checks in investors’ pockets for more than 20 consecutive years.

Its stock price has been showing similar dependability as of late and we sure are glad we were pounding the table on this name (and two others) back in the summer. O stock is now up about 16% over the last eight weeks. Can it keep pushing?

The hope is that it can pierce through this level and hold onto at least $63 to $64 as support. Given its hot run through and with a rate hike likely looming in December, a decline down to the $60 area wouldn’t be surprising (or unhealthy).

I can’t believe this “surfer dude” beat all those Wall Street legends... ​650 of the world’s biggest and brightest minds... I’m talking about legends like Mario Gabelli... David Einhorn... Joel Greenblatt... and Rick Rieder... who, combined, manage more than $5 trillion. All were forced to bow down to one “unheard of” trader from Laguna Beach. Click Here to discover the strategy he used while he had sand between his toes.

Source: Investor Place 

Stocks Are on Thin Ice – Here’s What’s Lurking Underneath

The markets took a break for the funeral of former U.S. President George H. W. Bush, and I’d bet most investors are grateful for the pause in the “Groundhog Day,” Yogi Berra “déjà vu all over again”-type action we’ve been going through since, yes, October.

Yeah, the market just did what it did just last month; the FAANGs rolled over and played dead, only to come roaring back for a seemingly strong push up north and, just when things looked brighter, tanked again.

Rally and swoon, rally and swoon… While there is still a fighting chance for the old bull, it’s looking increasingly grim.

We’re rapidly getting to the point that investors who are unprepared or out of position could be in some serious danger.

That’s why I’m looking so closely at these specific numbers…

There Are Bearish Signs… and Very Bearish Signs

We’ve just notched a lower high. That’s a bearish sign.

If we break down from here, like we did just a couple of weeks ago, and make new lows, that’s a very bearish signal.

The Dow and S&P 500 were both scant millimeters away from doing that at Tuesday’s close – the day after a fairly healthy rally.

If, when the bell rings in a couple of hours this morning, stocks catch the bid and resume an upward crawl, we might be out of the woods. But the futures gains we saw Wednesday morning were essentially peanuts, so I’m not betting that way.

The market looks like nothing so much as a wounded bull in a one-sided bullfight. Has the matador drawn his sword to administer the coup de grace to this old bull?

Maybe. It all depends on the big indexes holding – and building – on the following levels.

Here’s What I’m Watching Closely Right Now

The Dow Jones Industrial Average: If stocks fall to 24,000, we’re going down to 23,500 in a New York minute. If that’s the case, this bull market is probably done.

indu

The S&P 500: The broadest and most significant index was sitting at just above 2,700 at Tuesday’s close. There’s important support at 2,600 – if we break that… get ready to see the S&P test 2,550 in a heartbeat. Below that? Yikes – support is all the way down at 2,400.

spx

The NASDAQ Composite: This tech-heavy group of stocks can be notoriously twitchy when volatile winds blow. There’s support at 7,000, then 6,800, and at 6,500. Below that… we’re looking at the prospect of a bear run that could last a shockingly long time.

compq

The FAANG stocks themselves are worth keeping an eye on, too, because they figure so prominently in the minds of investors, which makes them a major driver of that all-important market psychology.

Facebook Inc. (NASDAQ: FB) has support in the neighborhood of $115 and $120. If shares fall below that, it’s going to be uglier than it’s been… and it’s already been mighty ugly.

Apple Inc. (NASDAQ: AAPL) can lean on support at $160, then $140. If the stock should slip below that, then something’s truly wrong with investors’ hopes and dreams.

Amazon.com Inc. (NASDAQ: AMZN) has support at $1,400, $1,375, and $1,200. Any lower, and it’s “Look out below!”

Netflix Inc. (NASDAQ: NFLX) is looking at support levels at $200. Anything lower than that, and it really is anyone’s guess.

Google parent Alphabet Inc. (NASDAQ: GOOG) has support in the region of $1,000 to $980. Its next support is all the way down at $900. If by some weird twist of fate Google gets to those basement levels, the markets themselves should look more like a smoking crater in the ground.

If that’s the case… well, the bright side is, there will be bottom-fishing opportunities like we haven’t seen since 2009.

In the meantime, build up a healthy cash position – 10% to 20% – to stay safe and jump on any potential opportunities. Be very careful about taking any big long positions you can’t escape – yes, “escape” is the word – in a heartbeat, and look for opportune moments to get short with puts or even short-selling shares.

These levels aren’t where we are… yet. They’re where we could get to. Beware – you’ve been warned.

Get up to 14 dividend paychecks per month from safe, reliable stocks with The Monthly Dividend Paycheck Calendar, an easy-to-use system that shows you which dividend stocks to pick, when to buy them, when you get paid your dividends, and how much.  All you have to do is buy the stocks you like and tell them where to send your dividend payments. For more information Click Here.


Source: Money Morning

Why Aurora Cannabis Stock Needs the U.S. to Make a Comeback

Source: Shutterstock

Aurora Cannabis (NYSE:ACB) has continued its downtrend. Following its principal product achieving legal status across Canada, ACB stock and its peers have seen a brutal selloff.

With ACB losing about 50% of its value over the last six weeks, feelings of hunger for marijuana stocks have given way to paranoia. Legalization might have killed the buzz in Canada. Still, other countries appear poised to loosen their cannabis laws. With that, Aurora could benefit from new rounds of reefer stock madness, particularly if the United States rescinds marijuana’s Schedule I designation.

Legalization Killed the Buzz on ACB Stock

To be sure, official legal status in Canada has become a classic “sell the news” occurrence for ACB stock. ACB along with peers such as Canopy Growth (NYSE:CGC) and Tilray(NASDAQ:TLRY) have sold off over the last six weeks.

This makes little sense on some levels. Canada finds itself in the midst of a shortage of weed that could last months. Interest has also emerged in unexpected places such as the cosmetics industry. Yet, these normally bullish signs have not stopped ACB from falling. As a result, ACB stock has begun to flirt with its 52-week lows.

This offers both good and bad news for owners of cannabis stocks. Investors need to accept the reality that marijuana hype for Canada has ended. Moreover, as more countries loosen regulations on cannabis, more marijuana stocks will emerge. With a greater supply of marijuana stocks, demand for the same few Canadian marijuana equities naturally falls.

Investors should also remember that legalization will make marijuana stocks boring. Their long-term future will probably resemble that of tobacco or alcohol stocks such as Altria (NYSE:MO) or Canopy-investor Constellation Brands (NYSE:STZ). Such a future will likely consist of dividends, slow but steady profit growth and unremarkable price-to-earnings (P/E) ratios.

Countries Like the U.S. Could Bring Back the Hype

That said, every developed country has to first get to this point of legal status. I believe full legalization will sweep the developed world, including the U.S. I also expect this period will inspire a new wave of hype similar to what we saw in Canada before mid-October.

A removal of marijuana’s Schedule I designation in the United States could set that trend afire. Such a move coming from its neighbor to the south would offer a particular benefit to ACB stock and its Canadian peers. With that federal roadblock removed, foreign companies, such as Aurora could participate. This, of course, would probably inspire the interest needed to bring investors back into ACB stock.

So the question becomes when to buy? With the stock still trending downward, now may not serve as the best time. ACB stock currently trades at around $5.50 per share. With 11 Canadian cents (8.3 cents) per share in profit for this year, the stock may appear expensive. Still, the profits speak to the stability of Aurora Cannabis stock.

Also, Wall Street forecasts a profit growth rate of 145.8% for this fiscal year (2019) and 27.3% in 2020. This massive rate of increase lessens the risk of paying a high multiple. Once ACB stops selling off, it should position itself to benefit from the next wave of marijuana hype.

The Bottom Line on ACB Stock

Stock price growth could easily return to ACB stock, especially if the United States chills out on their strict marijuana laws. The massive drop in ACB and other Canadian cannabis stocks following legalization indicates that the stock growth in its home market has lost its buzz. While legalization tends to make cannabis stocks boring across the board, most countries have not yet achieved full legal status.

This brings opportunities for new rounds of reefer stock madness in other countries. With Aurora’s proximity to the U.S. market, this becomes especially true south of the Canadian border. A removal of Schedule I status in the U.S. would open up new production and sales in a nearby market nearly ten times its size. This could set up ACB stock for new highs.

As the stock continues to fall, investors need to watch and wait. However, if ACB forms a floor, or if the U.S. opens up on the federal level, prepare for new highs.

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

Market Preview: Markets Slammed on Trade and Slowing Growth Fears

Markets were closed Wednesday to honor President George H.W. Bush, but that didn’t stop investors from dropping stocks like hot potatoes on Tuesday. Markets came under massive selling pressure after it became clear that the reported trade deal with China isn’t quite as done as investors believed on Monday. Markets fell across the board with all the major indices trading down over 3%, and the Nasdaq again taking the brunt of the selling, fell 3.8%. Investors fear the tariff war will not be resolved as many had believed just Monday, and that the combination of global economic slowing, with the trade war, will pull markets lower in 2019. While the futures markets are up as of Wednesday afternoon, the market has been demonstrating a classic bear trading pattern for several weeks. Strong openings are often sold into, resulting in slow declines throughout the day.

Thursday Broadcom (AVGO), Kroger (KR) and Ulta Beauty (ULTA) report earnings. Broadcom has been inching higher since the October selloff, but was battered in the Tuesday market swoon, down over 4%. Monday, the company announced a partnership with HCL Technologies  (HCTHY) as Broadcom’s preferred training and professional services partner which analysts will be anxious to hear about on the earnings call. Ulta has disappointed investors the past few quarters as the company has reported falling sales and profitability. Analysts are looking for a more positive report from the company on Thursday, and are hoping operating margins have ticked up after challenging inventory and remodeling costs last quarter.

With markets and the federal government closed Wednesday, Thursday brings a full slate of economic numbers. Scheduled for release is the Challenger job cuts report, ADP employment report, jobless claims, productivity and costs, the PMI services numbers, factory orders, and the ISM non-manufacturing index. Analysts are expecting the addition of 175,000 new jobs and jobless claims to come in at 225,000, a slight downtick after the number has been rising the past few months. The PMI services index is expected to decrease slightly to 54.4 from an October reading of 54.8. Friday investors can pour over the employment situation numbers, consumer sentiment, and wholesale trade numbers.

 

Big Lots (BIG), Johnson Outdoors (JOUT) and Vail Resorts (MTN) close out earnings for the first week of December on Friday. Big Lots stock has been in negative territory almost all of 2018, with it’s one positive being that it did not fall much further in the recent market tumble starting in October. The discount retailer is in the middle of a store remodeling plan that will see approximately 200 of its stores receiving a facelift through 2019. Vail resorts should be off to a strong winter season as favorable weather patterns should boost early season sales. The stock is up nicely in 2018, even after a pullback in the recent market selloff. Analysts will be looking for an update on season pass sales as the company has been focusing more firepower on selling customers a season long experience as opposed to one-off ski weekends.  

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.

7 Big Data Stocks to Buy for 2019

Source: Shutterstock

The Big Data market is likely to grow for the long haul. Let’s face it, the world is undergoing an explosion of data, such as from smartphones, IoT (Internet-of-things), wearables, AI (Artificial Intelligence) and machine learning.

Actually, for just about any company to compete and thrive nowadays, there needs to be a Big Data focus. It’s a strategic imperative. According to research from Statista, global spending is expected to go from $42 billion in 2018 to $103 billion by 2027.

In other words, there is substantial opportunity for investors. But what are the best stocks to buy in the category?

The good news is that the recent wave in IPOs has provided investors a group of next-generation players to choose from. So here’s a look at seven:

Yext (YEXT)

Yext (NYSE:YEXT) operates a knowledge platform, which includes a network of about 150 data providers like Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Facebook (NASDAQ:FB) and Apple (NASDAQ:AAPL). For the most part, the company organizes data in ways to help businesses achieve goals, such as getting more customers or providing a better service.

At the heart of this is intelligent search, which is based on context and intent. There is also AI (Artificial Intelligence) that helps provide more relevant results.

The next generation of this technology, called Yext Brain, launched in late October. The system allows customers to sync their data with AI-enabled services like search, voice assistants and chatbots.

In terms of growth for YEXT, it has been robust. During the latest quarter, revenues jumped by 33% to $58.7 million. The company also snagged nearly 80 new enterprise customers.

Big Data Stocks to Buy for 2019: Alteryx (AYX)

Source: Shutterstock

Alteryx (AYX)

Alteryx (NYSE:AYX) was an early player in the Big Data industry, having been founded in 1997. The company also bootstrapped its operations. Note that AYX did not raise any venture capital until 2011.

But this did not hamstring the company. Now AXY is one of the top Big Data stocks in the world. Then again, it has built a platform that is fairly easy for businesses to leverage analytics, such as by using visualizations. Keep in mind that Big Data systems are often focused on specialists like data scientists.

AYX’s strategy has helped to expand the market opportunity. In fact, the company believes that the spending on the category will go from $19 billion in 2016 to $29 billion by 2021.

During the latest quarter, revenues shot up by 59% to $54.2 million and the number of customers rose by 41% to 4,315.

Big Data Stocks to Buy for 2019: Talend (TLND)

Source: Shutterstock

Talend (TLND)

With the rapid growth in new technologies, data integration has gotten even more mission critical. Yet the tools have tended to lag. It is often the case that there needs to be professional services and custom coding.

But Talend (NASDAQ:TLND) is changing this with its innovative platform — called Talend Data Fabric — that integrates data and apps in real time across Big Data systems, cloud environments and on-premise installations. The result is that there is a unified view of data.

To bolster the product, TLND acquired Stitch, which operates a cloud service that moves data into cloud warehouses and data lakes. The service has more than 900 customers.

Granted, TLND stock got crushed on the latest earnings report. But it does look like it was an overreaction. Note that the company continues to grow at a strong pace — with revenues up 36% to $52.1 million in the third quarter.

Big Data Stocks to Buy for 2019: Cloudera (CLDR)

Source: Shutterstock

Cloudera (CLDR)

Cloudera (NYSE:CLDR) has built a sophisticated Big-Data platform that uses machine learning and analytics. It is also optimized for cloud environments.

But CLDR is in the process of a major transformation — that is, the company is merging with Hortonworks (NASDAQ:HDP), which is another of the major Big Data stocks. The combined entity will be a powerhouse, which will have services for the multi-cloud, on-premise environments and the Edge. Consider that HDP has an expertise with streaming and IoT while CLDR’s focus has been AI.

There will also be significant scale, which should help provide a competitive advantage. The merger of CLDR and HDP will result in annual revenues of $720 million, with over 2,500 customers.

Splunk (SPLK)

Founded in 2003, Splunk (NASDAQ:SPLK) is a pioneer in developing systems to analyze machine data, such as from websites, apps, servers, networks and smartphones. The focus was on helping companies gain “operational intelligence.”

Despite the emergence of fierce competitors, SPLK has been able to maintain its leadership. Then again, the company continues to invest heavily in R&D. Consider that at its most recent conference — .conf18 – it had the largest number of new releases. For example, the company now has solutions for areas like IoT and Industrial IoT.

Growth has also remained strong. During the latest quarter, revenues increased by 49% to $325 million. The company also generates strong cash flows, which came to $59.1 million in Q3.

Big Data Stocks to Buy for 2019: Elastic (ESTC)

Source: Shutterstock

Elastic (ESTC)

Elastic (NYSE:ESTC) is essentially a sophisticated search engine for businesses. At the core of this is open-source software, which is downloaded for free. This has not only allowed for rapid adoption of Elastic — which is critical for any search engine — but ongoing innovation.

The platform also allows for searches of structured and unstructured data, say from databases, mobile apps, log files and so on. There is also AI features and machine learning.

And what about the growth ramp? Well, it has been torrid. During the latest quarter, revenues spiked by 79% to $56.6 million. The company has over 5,500 customers across more than 80 countries.

Big Data Stocks to Buy for 2019: Mongodb (MDB)

Source: ©iStock.com/tusumaru

Big Data Stocks to Buy for 2019: Mongodb (MDB)

Relational databases have been around since the 1970s. The technology is also at the core of Oracle’s (NYSE:ORCL) database franchise.

But the problem is that the technology really does not meet the complicated needs of today’s Big Data needs.

So yes, there is an alternative, called NoSQL. And the leader in the category is Mongodb(NASDAQ:MDB). The company’s database has been downloaded over 40 million times and there are more than 7,400 customers across over 100 countries. MongDB also has a thriving ecosystem, which has more than one million members in the MongoDB University.

All this has turned into a standout business. During the latest quarter, revenues soared by 61% to $57.5 million. Actually, given the critical nature of databases to Bid Data, it would not be a surprise that a larger company — say Oracle — would eventually try to buy the company.

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.

These 8 High-Yield Dividend Stocks Are About to Disappear for Good

At the core of stock values is the economic fact of supply and demand. You know how that works. Yet in the world of stocks, supply is generally open-ended. The financial world is happy to put more supply of individual stocks or shares of funds or ETFs into the market. Share price changes are almost 100% driven by changes on the demand side.

However, upcoming changes in the MLP sector will produce a significant supply reduction. The market doesn’t seem to be aware that there is also a supply side to supply and demand. This provides an attractive opportunity to pick up some unavoidable value gains.

Master limited partnerships and other companies operating in the midstream/infrastructure energy subsector have been implementing a range of financial maneuvers since energy prices and related stock prices crashed in 2015. Now late in 2018 it seems the group is at the end game of the path that has been followed for the past three years. The remaining problem is that the stock market has not yet recognized the stronger fundamentals in the sector with higher stock or unit price values.

The final step to the midstream sector restructuring is now taking place. This involves taking out of the market those midstream companies where the sponsors do not believe keeping these companies as publicly traded entities makes financial sense for the long term goals of the sponsor entities.

For example, at the beginning of 2018, there were eight publicly traded MLP general partner stocks. When this current consolidation phase is over, there will be none. Over the last few months the mergers or buy-ins of four midstream companies have been completed. Over the next few months, these stock symbols will meet the same end and no longer be publicly traded companies: SEP, EEP, AM, ENLK, WES, EQGP, VLP, DM, TLP.

This list accounts for about 10% of the index tracked MLP universe.

With one-tenth of the sector disappearing, MLP focused mutual funds, closed-end funds, ETFs and ETNs will have cash from the transactions that must be reinvested into the remaining stocks in the sector. ETFs and ETNs will be forced to follow the new weightings put out by the index providers. The closed-end and mutual funds won’t be forced to buy specific midstream stocks but will have significant amounts of new cash to put to work.

To give you an idea of the amount of money at stake, the MLP ETF and ETN groups have $18.5 billion in assets. Mutual and closed-end funds have assets of $38 billion. Rough math gives approximately $6 billion in loose cash that will soon be chasing the remaining companies in the MLP space. The Alerian MLP Index has 36 component companies. The Alerian MLP Infrastructure Index just 21 component MLPs. The adjusted market cap of the entire MLP sector is about $170 billion.

The bottom line is that the amount of supply coming out of the MLP sector will produce a large amount of cash that will be chasing the reduced amount of remaining supply. This demand imbalance could be the trigger event to start the MLP sector climbing out of its 3-year long bear market.

Here are three investment ideas to participate in the supply vs. demand imbalance coming over the next few months.

Enterprise Products Partners LP (NYSE: EPD) with a $57 billion market cap is the largest midstream MLP. The company provides the full range of energy infrastructure services.

EPD is one of the biggest pipeline service providers to transport crude oil from the Permian to the Texas Gulf Coast. It recently announced that its 416-mile Midland-to-Sealy pipeline is now in full service with an expanded capacity of 540,000 barrels per day (“BPD”) and capable of transporting batched grades of crude oil.

This company also stands out from the MLP pack by using internally generated cash flow to pay for growth projects. In an era where the cost of raising equity capital is high, this is a significant advantage.

EPD yields 6.6% and is growing distributions by 2.5% per year.

Magellan Midstream Partners LP (NYSE: MMP) primarily owns and operates refined products (gasoline, diesel fuel, jet fuel, etc.) pipelines and storage terminals. The company also owns 2,200 miles of interstate crude oil pipelines.

The company provides service to almost 50% of the U.S. refining capacity. With its $14 billion market cap, Magellan is one of the more stable large MLPs. This is another of a very small number of midstream energy companies that funds growth capital from internal cash flow.

Since its 2001 IPO, this MLP has consistently grown the distributions paid to investors. Over that period, the payouts have grown at a 12% compounding rate.

Currently the company forecasts 5% to 8% distribution growth through 2020.

MMP yields 6.5%.

If you don’t want to own individual MLPs and have to deal with the Schedule K-1 tax reporting, look at the Global X MLP ETF (NYSE: MLPA). This MLP ETF has a management fee that is half the rate charged by the larger and better known ALPS Alerian MLP ETF (NYSE: AMLP). MLPA uses the Solactive MLP Infrastructure Index as its benchmark.

The fund currently yields 8.7%.

Get up to 14 dividend paychecks per month from safe, reliable stocks with The Monthly Dividend Paycheck Calendar, an easy-to-use system that shows you which dividend stocks to pick, when to buy them, when you get paid your dividends, and how much.  All you have to do is buy the stocks you like and tell them where to send your dividend payments. For more information Click Here.

Buy These 3 Growth Stocks to Beat a “Non-Diversified” Index

Stocks have been on a rollercoaster ride since early October when Fed Chairman Powell told the market that neutral interest rate levels were a “long way away” from the current rate. And while Mr. Powell reversed course last week, the damage had already been done to a market weary of tariffs and shaken by ever starker housing numbers.

Outsized Impact of a Few Stocks

More and more the so-called FAANG stocks, Facebook (NYSE: FB)Amazon (Nasdaq: AMZN)Apple (Nasdaq: AAPL)Netflix (Nasdaq: NFLX) and Google (Nasdaq: GOOGL, GOOG) have an outsized impact on the overall market. At one point last week these behemoths had lost over $1 trillion in market value from their recent highs.

The FAANG stocks now make up a massive percentage of the Nasdaq Composite Index. Even after the recent sell off, they are still over 35% of the index. And if we add in Microsoft (Nasdaq: MSFT) we get to well over 45% of the Nasdaq Index being represented by just 6 stocks.

And it is not just the Nasdaq that is overly impacted by these few stocks. As of July of this year, these six stocks represented an unbelievable 98% of the returns of the S&P 500. At that time the S&P was up 4.4%.

Investing in a market index is meant to give your portfolio diversification over a range of stocks. The Nasdaq is known to be technology focused and is often called a tech index, while the S&P is a broad index meant to represent a wide range of companies. But the shear size of the FAANG stocks and Microsoft have made these indexes much less diverse.

The overrepresentation of these six stocks is a major issue for investors who hope to diversify their investments by way of the indexes. There is a false sense of diversification, and as we saw in October, the impact of scandals at Facebook, projected slowing iPhone sales, and increased competition in streaming video, had major impacts on the overall markets due to just a few stocks.

If you want true diversification in your growth portfolio it is necessary to find individual stocks with good growth prospects. The following are three stocks that I believe should outperform the non-diversified indexes moving forward.

Vericel Corporation (Nasdaq: VCEL)

Vericel is capitalizing on two strong trends. An aging population and the trend for improved health through exercise. Both trends have the side effect of deteriorating or damaging the cartilage in our knees.  MACI, the company’s cartilage replacement technology, removes a small amount of tissue from the patient, and then grows new cartilage which is then implanted in the patient.

The process has two major advantages over previous solutions. Since the tissue is the patient’s to begin with there is less chance of rejection of the new cells. And, because of this, there is less need to provide immunosuppressive therapy necessary when a foreign solution is placed in the body. In clinical tests MACI has also shown improved recovery time over the incumbent solution.

In addition to the cartilage replacement market, Vericel provides a product that helps severe burn victims who need to regenerate damaged skin. As with the cartilage solution, Epicel takes a small part of the patient’s skin that it then uses to grow additional skin.

Both products have proven superior to the current solutions on the market, and sales of both products have begun to takeoff, making now a great time to pick up the stock.

While the company is not yet profitable, in its most recent earnings release on November 6th, it grew revenue 58% year-over-year. MACI revenue grew 66% and Epicel 36%. The company also raised estimates with the earnings release, and is expected to grow earnings 82% next year.

In addition to the great earnings report, which lifted the stock, CEO Nick Colangelo has said the company plans to expand the MACI product beyond knee cartilage to ankles, shoulders and hips. The expansion will grow the company’s addressable market at a time when the product is already in high growth mode. This is another catalyst that argues for entering the stock sooner rather than later.

pdvWireless (Nasdaq: PDVW)

pdvWireless is a provider of secure private networks to utilities, municipal transportation, railroads, airlines and other enterprise and industrial critical communications. The networks provide narrowband communication capabilities for critical communications often in areas where normal communications networks are not available.

I’m bringing PDVW to your attention now because the private communication networks provided to these specialized users are poised to undergo a major shift from narrowband to broadband. There are two catalysts driving this change.

First, there is an increasing need for broadband as the number of connected devices to these networks is expected to increase substantially. Rob Schwartz, president and COO of PDVW says, “Utilities often operate in places where there isn’t ideal coverage, or for specific use cases, and with the exponential growth in connected devices, this creates the need for broadband private LTE.”

Second, the frequency used for these networks, 900 MHz, is expected to undergo a major FCC regulatory overhaul very shortly. This will put in place the regulatory structure necessary to expand the narrowband services to broadband. If successful, the new regulatory scheme should lead to a boom in the transformation of these networks, which in turn should drive the stock of pdvWireless higher.

In its latest earnings release CEO Morgan O’Brien stated that he believes the new regulatory structure is imminent based on the fact that the FCC has frozen applications in the spectrum, a common practice when new regulations are about to be announced. And, there have been positive comments from both the FCC Commissioner and the head of the President’s Economic Council, that seem to imply the new regulations will favor the pdvWireless position on expanding spectrum use.

With earnings projected to grow close to 26% next year, a positive regulatory ruling, combined with pent up demand, should propel pdvWireless higher.

Ceragon Networks (Nasdaq: CRNT)

Ceragon is a leading provider of wireless backhaul for the communications sector. Ceragon’s customers include major carriers AT&T (NYSE: T), Sprint (NYSE: S) and T-Mobile (Nasdaq: TMUS) in the U.S., Deutsche Telekom (OTCMKTS: DTEGY) in Germany, Reliance Jio and Bharti Airtel in India, and Telcel in Mexico.

Ceragon provides extra capacity, or backhaul, to these providers by way of both fiber optics and wireless solutions. The backhaul market is expected to grow at 13% annually over the next four years.

Ceragon is being driven by two catalysts. One, the continued build out of infrastructure in emerging markets, and two, the coming build out of the 5G network.

Ceragon makes almost one-third of its revenue from India. The Indian market is growing at 16% year-over-year and has one of the highest smartphone growth rates in the world. Ceragon will continue to benefit from this growth providing wireless backhaul to Indian telcos.

Ceragon should also benefit from the global rollout of 5G. 5G requires a denser network and more point-to-point communication than the current 4G network. This densification will require the support of backhaul services like those provided by Ceragon as the networks come online.

Ceragon’s backhaul technology platform is believed to be one of the fastest among its competitors, which should give it an additional advantage as the 5G networks are built out.

In its latest quarter Ceragon grew sales 72% quarter-over-quarter, and the company is expected to grow earnings 34% this year. The combination of growing emerging markets along with the coming 5G build out makes Ceragon a growth story to invest in now.

Vericel, pdvWireless, and Ceragon all offer an alternative way to diversify your growth portfolio in what has become a non-diversified index world.

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: Investors Alley 

Market Preview: Progress on U.S./China Trade War Lifts Markets, Earnings from Dollar General and Autozone

Markets rallied strongly Monday after President Trump and Chinese President Xi Jinping agreed to a 90 day moratorium on trade tariffs in which the U.S. will hold off on raising tariffs by 25% at the beginning of 2019. Larry Kudlow, the President’s National Economic Council Director, said “If China opens its markets as they promised to do, and they’re going to do it fast according to their promises, we will increase our exports substantially…” Kudlow is well known on Wall Street, and many analysts put faith in his comments over often exaggerated political commentary regarding trade. Markets rallied from the outset Monday morning, gave back some of those gains, and then rallied again near the close. Investors are hoping Director Kudlow is correct and for a quick resolution to the trade issues. If a resolution is not arrived at either before, or soon after, the new year markets will see the 90 day window as simply kicking the can down the road.

Dollar General (DG), Autozone (AZO) and Marvell Technology (MRVL) all report earnings on Tuesday. As Todd Vasos, CEO of Dollar General stated last quarter, “our two-year same-store sales stack for the second quarter of 2018 was the highest in 10 quarters.” The company has been hitting on all cylinders this year, and raised earnings estimates as a result. The stock has been little impacted by the market pullback, and analysts expect another strong quarter from the discount retailer. Autozone earnings are expected to increase 23% year-over-year when the company reports before the bell Tuesday. After selling off earlier this year the stock has regained the $800 level, recently hitting all-time highs. Analysts are looking for another strong quarter, and an update on the company’s aggressive buyback program.

Tuesday, investors will get to take a peak at motor vehicle sales and Redbook retail numbers. The auto sales number is expected to decrease slightly to 17.2 million from the 17.5 reported in October. But both month’s numbers increased dramatically from a summer slump. Wednesday was to see Fed Chairman Powell deliver testimony to Congress’s Joint Economic Committee. But, the passing of President George H.W. Bush, and the declaration of a national day of mourning, means that testimony will be postponed. Stock markets in the U.S. have also announced that they will be closed on Wednesday to honor the nation’s 41st President.  

Wednesday the earnings focus on retailers continues as lululemon (LULU), Five Below (FIVE) and American Eagle Outfitters (AEO) report earnings. Last quarter lululemon handily beat estimates by 44% sending the stock higher yet again after an earnings beat. The stock has performed exceptionally well this year, rising from $80 to around $140. Investors will be looking for the athletic apparel company to provide color on the final few months of the year as we’re in the midst of the holiday season. American Eagle has stair-stepped lower since August of this year. The company has invested heavily in its online operations, and has achieved relatively strong sales numbers from that channel the past few quarters. Analysts will be looking for an update on the progress of the online initiative and what hurdles the company is encountering as it broadens its platform.

Pay Your Bills for LIFE with These Dividend Stocks

Get your hands on my most comprehensive, step-by-step dividend plan yet. In just a few minutes, you will have a 36-month road map that could generate $4,804 (or more!) per month for life. It's the perfect supplement to Social Security and works even if the stock market tanks. Over 6,500 retirement investors have already followed the recommendations I've laid out.

Click here for complete details to start your plan today.

3 Financial Stocks to Buy While They’re Cheap

Source: Shutterstock

This morning stocks are rallying on the back of good news from the G20 meetings. China and the U.S. struck a deal to halt the tariff rhetoric so that they can negotiate a long-term trade deal between the two countries.

The fear that the U.S. and China would bog down global growth with tariffs has driven a lot of market volatility this year. There is a lot on the line for all economies and this morning’s news is a relief to the markets.

Year-to-date — while not a financial disaster — equities have been under pressure and in see saw from one headline to the other. This is especially disappointing to financial stocks. This year was supposed to be when bank stocks flourished. The U.S. Fed is in a rate hike cycle and the idea was that banks would profit from the higher rates. This hasn’t worked out that way so far. In fact, coming into today the Financial Select Sector SPDR (NYSEARCA:XLF) is down 3% in 2019, lagging behind the S&P 500 and the Nasdaq which are up 4% and 11% respectively.

As a result, bank stocks are now even cheaper, so there is value in most of them, and they should be part of a healthy portfolio.  At some point this general macroeconomic malaise will pass and the sentiment selling will abate. There is a lot to like in these financial stocks and they are worth accumulating.

The Value Investment: Bank of America (BAC)

This Sell-Off Could Be Your Best Chance to Buy Bank of America Stock

Source: Shutterstock

First on my list of financial stocks is Bank of America (NYSE:BAC). BAC sells at a trailing P/E of 13.6 — a ratio which is cheap in both absolute and relative terms. At these levels, BAC stock sells at almost price-to-book, meaning that investors give it no credit beyond the assets on its books.

Buying BAC here is likely very safe. Bank of America has a strong management team. They were able to navigate out of the worst financial disaster and save a few other banks along the way. In short, if the stock markets move higher in the next few years, then BAC stock will too. In addition, it mainly operates in the U.S. so it has little exposure to China headlines.

The Momo Run: Square (SQ)

square stock SQ stock

Source: Via Square

Momentum stocks rarely give investors clear entry points. That is the case with Square(NYSE:SQ). Unlike Bank of America stock, SQ stock is far from cheap. But this is a fintech stock so I don’t give the same amount weight to value as I would for a standard financial center. Case in point, even though SQ has fallen 20% in the last three months, it’s still up 80% in 12 months.

This is a stock that should to be part of a complete portfolio. SQ has solid fundamentals as it begins to compete with the likes of Visa (NYSE:V) and Mastercard (NYSE:MA). Recently SQ stock was dragged lower by the bitcoin crash. Part of the rise of Square was tied to its foray into the blockchain arena. So like Nvidia (NASDAQ:NVDA), SQ suffers on the way down with bitcoin too.

Both BAC and SQ are financial stocks technically poised for spikes. They are now re-approaching pivot zones and if the bulls can prevail in retaking them they can shot 7% higher on momentum alone. Since SQ is a fast mover, its breakout will be faster and longer than that of BAC, but they should both do well.

The Gamble: Goldman Sachs (GS)

Source: Shutterstock

Last on my list of financial stocks to buy today is Goldman Sachs (NYSE:GS) . GS stock has grossly under-performed in absolute terms  and relative to the sector. GS is down 24% in 12 months.

Recently Goldman Sachs has been in the news over issues with their potential involvement in the Malaysian bond fraud event. I don’t now how this scenario is going to play out but it’s worth a small bet for a positive resolution. Usually Wall Street is too quick to overreact and it’s too early to call GS stock dead for good. As a result of its massive fall, GS now sells at an 8x forward P/E.

Nevertheless, Goldman Sachs stock still carries a high ticket price at $190 per share. So one can use options to speculate on a rebound into the first quarter of 2019 instead of risking the face value of the stock. Options offer lower entry costs for a chance to profit on a rebound. In addition to the fundamental news, GS stock is also at a technical disadvantage. Losing the $220 level triggered a bearish pattern that may still be unfolding. There is further risk below if $185 zone also fails.

Pay Your Bills for LIFE with These Dividend Stocks

Get your hands on my most comprehensive, step-by-step dividend plan yet. In just a few minutes, you will have a 36-month road map that could generate $4,804 (or more!) per month for life. It's the perfect supplement to Social Security and works even if the stock market tanks. Over 6,500 retirement investors have already followed the recommendations I've laid out.

Click here for complete details to start your plan today.

10 Goldman Sachs Top Stock Picks for 2019

Source: Shutterstock

Well that came around quickly! We are now drawing to the end of 2018. And that can only mean one thing: it’s time to think about 2019. Chances are high that the volatility plaguing the markets in 2018 isn’t going anywhere next year. With that in mind, you need to be extra careful about how you re-balance your portfolio for the new year. Luckily Goldman Sachs is here to help. It recently released a report of exactly the kind of stocks you want to be thinking about right now.

These are ‘high quality’ stocks specially selected by the firm. And by ‘high-quality’ Goldman Sachs means stocks that meet the following 5 factors: strong balance sheets, stable sales growth, low deviation in operating income, low stock drawdown risk, and return-on-equity that exceeds peers. In other words these stocks are the best-positioned to 1) withstand an economic slowdown; and 2) diminishing equity returns. That sounds good to me!

On top of that I used TipRanks‘ stock data to find out what other top analysts have to say on these stocks.
That way I can highlight stocks with the most bullish Street consensus from Goldman Sachs’ list.

Let’s take a closer look at these top stock picks for 2019 now:

Stock Picks for 2019: Comcast (CMCSA)

I’m with Goldman Sachs on this one. Blue chip telecoms giant Comcast Corporation (NASDAQ:CMCSA) is a worthy 2019 stock pick. CMCSA stock has an extremely stable portfolio and growing free cash flow.

Not only is its credit high-quality, but its dividend is ‘sacrosanct’, and it repurchases shares when it’s not deleveraging from strategic M&A.

“CMCSA is arguably more a safety stock than a growth stock. While its valuation is modest we’d argue so is its risk” writes RBC Capital’s Steven Cahall (Track Record & Ratings).

He has just ramped up his price target to $45, citing the recent $15 billion deal for Sky. From current levels this means we are looking at upside potential of 19%.

“Excuse Me While I Kiss the Sky” Cahall calls his report, adding “We see the strategic merits of Sky being better appreciated in time.”

True CMCSA paid a hefty multiple, but Cahall sees long-term strategic benefits from Sky, ranging from a bigger subscriber base for emerging tech investments to savings on content acquisition and accelerated advanced advertising.

This ‘Strong Buy’ stock scores 15 buy ratings vs 3 hold ratings. Its $44 average analyst price target suggests 16% upside potential. Interested in CMCSA stock? Get a free CMCSA Stock Research Report.

Stock Picks for 2019: Visa (V)

Visa stock

Source: Shutterstock

This financial stock continues to outperform. Year-to-date, Visa Inc (NYSE:V) shares have surged over 19%.

And looking forward to 2019, I see no reason why Visa’s outperformance can’t continue.

Indeed, top-rated Cantor Fitzgerald analyst Joseph Foresi (Track Record & Ratings) has just reiterated his V Buy rating. This comes with a bullish $160 price target — 18% upside potential.

“Strong growth continues” cheers Foresi, before writing: “We remain attracted to Visa’s dominant position in the global card network market and to its strong, recognizable international brand.”

Notably, Foresi highlighted Visa’s opportunity to capitalize on the global conversion of cash into credit, international opportunities, and digital payment tailwinds.

Meanwhile Visa Direct, contactless payments, and B2B all have the potential to drive share prices higher.

Out of 18 analysts polled on this ‘Strong Buy’ stock, 17 are bullish. This is with a $167 average analyst price target. Get the V Stock Research Report.

Stock Picks for 2019: Alphabet (GOOGL)

Google Stock Is a Great Long-Term Investment, but Wait to Buy

Source: Shutterstock

Tech stocks may be going through a rough patch, but here’s one mega cap Goldman Sachs thinks is still worth buying for 2019.

Trading at ~11x 2019 EV/EBITDA, Alphabet Inc’s (NASDAQ:GOOGL) valuation looks compelling, says Brent Thill (Track Record & Ratings) of Jefferies. He picks GOOGL as his Franchise Pick i.e. a high conviction stock. This is with a juicy $1,450 price target (37% upside potential).

So what justifies this bullish call?

“The Internet Team remains bullish on Alphabet due to continued expected mobile search growth and a positive stance on YouTube” explains Thill.

Online video is lining up as the biggest online ad growth driver — with GOOGL’s YouTube capable of driving meaningful upside by stealing ad budgets away from television.

Meanwhile, “mobile search has been the number one driver of revenue growth for the past several quarters and the team sees continued opportunity given the ubiquity of smartphones and the important location and contextual signals from mobile devices” writes Thill.

Plus, Alphabet also boasts its fast-growing Google Cloud, and a strong leadership position in both AI and autonomous vehicles. Its Waymo vehicles have driven many millions of miles on public roads more than peers.

Taking a step back, we can see that out of 31 analysts polled recently, 28 are bullish on the stock. This is with a $1,346 average price target (28% upside potential). Get the GOOGL Stock Research Report.

Stock Picks for 2019: O’Reilly Auto (ORLY)

Source: Shutterstock

O’Reilly Automotive Inc (NASDAQ:ORLY) is one of the largest specialty retailers of auto parts in the US, with over 5,000 stores. Already, year-to-date, shares are exploding by over 45%. And the stock has a long growth runway ahead.

Alongside Goldman Sachs, RBC Capital’s Scot Ciccarelli (Track Record & Ratings) is also a big fan of the stock.

“O’Reilly is a net market share gainer in an attractive industry,” says the analyst. And he sees four key reasons why ORLY is set to outperform. Namely: 1) strong pricing power, 2) little threat from e-commerce because the parts are too complex, 3) increasing number and age of vehicles and 4) a highly fragmented industry.

Further, steady ORLY stock performance suggests that the company is feeling little effect from price transparency/ e-commerce competition.

“Given the company’s highly consistent top/ bottom line growth we remain buyers of ORLY,” sums up Ciccarelli. He sees shares surging 10% to hit $389.

Now if we look at all analysts, the consensus is a cautiously optimistic Moderate Buy. However, if we shift to only the Street’s best-performing analysts, then the consensus also upgrades to Strong Buy. This is with a $380 average analyst price target (8% upside potential). Get the ORLY Stock Research Report.

Stock Picks for 2019: Booking Holdings (BKNG)

Source: Shutterstock

If you’re planning a holiday right now, chances are you’ll turn to Booking Holdings Inc(NASDAQ:BKNG). From a small Dutch startup, BKNG is now one of the world’s largest travel e-commerce companies. It holds Booking.com, Priceline.com, Kayak.com, Cheapflights, OpenTable and more.

From a Street perspective, what stands out is a recent upgrade from Wells Fargo’s Robert Coolbrith (Track Record & Ratings). Analysts usually reiterate their stock ratings — so when a stock is upgraded to Buy that definitely tells us something.

Plus Coolbrith simultaneously ramped up his price target from $2,150 to $2,200. From current levels, this means we are now looking at upside of close to 18%.

In this case Coolbrith cites the company’s Q3 performance and Q4 guide as well as management’s 2019 long-term strategy. This breaks down to: 1) platform investment, 2) above-market top-line growth and 3) a close focus on EBITDA dollar growth.

And crucially, even though shares are over $1,800, Coolbrith sees an appealing entry point right now. Shares are currently trading down over 5% in the last three months. “We note that shares remain significantly below historical valuation averages — BKNG’s current NTM EV/EBITDA is 12% below its 3-year median.”

Overall, BKNG stock earns a Moderate Buy analyst consensus. This comes with a $2,242 average price target — which means 23% upside potential lies ahead. Get the BKNG Stock Research Report.

Stock Picks for 2019: Dollar Tree (DLTR)

 

Source: Shutterstock

When trading is rough, defensive stocks tend to do well. And bargain retail store Dollar Tree, Inc. (NASDAQ:DLTR) is a perfect example of a defensive stock. Everything in the store sells for $1 or less.

On October 16, the NY Post reported that Carl Icahn is accumulating a stake in Dollar Tree. Apparently, we are looking at a ‘significant’ stake. On the news, DLTR stock jumped 6.8%. Icahn is an activist investor, known for pushing for changes at the company leadership level.

Five-star Oppenheimer analyst Rupesh Parikh (Track Record & Ratings) has an Outperform rating on the discount giant. He writes: “We continue to see meaningful optionality with the DLTR story from either an improving fundamental longer-term outlook or optionality with the Family Dollar asset.”

Encouragingly, he believes the stock is trading at attractive levels. This is in part down to the market undervaluing American variety store chain Family Dollar.

“At a low $80s stock price, the implied Family Dollar valuation is just a low single-digit EBITDA multiple” points out Parikh. And as for Icahn joining the team, he gives this reaction: “We await more details on Icahn’s stake and the proposed actions that could potentially unlock shareholder value from here.”

With a Moderate Buy consensus, the stock’s $94.18 average analyst price target works out at 15% upside potential from current levels. Get the DLTR Stock Research Report.

Stock Picks for 2019: Biogen (BIIB)

BLUE Stock May Have Upside of at Least 60 Percent

Source: Shutterstock

Biogen Inc (NASDAQ:BIIB) has a dominant position in neuroscience. The company has a leading portfolio of medicines to treat multiple sclerosis (MS) as well as the only FDA-approved treatment for spinal muscular atrophy (SMA).

To top it off, Biogen also boasts an extensive pipeline of new medicines in development. This includes Aducanumab for Alzheimer’s disease. It is estimated that over 25 million individuals are living with AD worldwide.

The memory loss and functional decline of Alzheimer’s disease have been linked to amyloid plaques, abnormal protein deposits that build up in the brain. Aducanumab is an antibody that binds to and may reduce amyloid plaques from the brain, potentially slowing the progress of the disease.

“We believe Biogen shares are undervalued based on our view that the company’s leadership position in neuroscience should deliver long-term growth. A business supporting high-risk, high reward studies puts BIIB in the lead to develop a potentially disease-modifying AD drug,” states Oppenheimer’s Jay Olson (Track Record & Ratings).

He has a buy rating on the stock with a $380 price target. According to Olson, BIIB has achieved a critical mass in neuroscience that enables high-risk programs with sufficient cash flow to embark on high-risk programs.

Overall this ‘Moderate Buy’ stock has scored 8 buy ratings vs 3 hold ratings in the last three months. Meanwhile the $391 average analyst price target works out at over 20% upside potential. Get the BIIB Stock Research Report.

Stock Picks for 2019: Cognizant (CTSH)

Source: Shutterstock

Goldman Sachs has just upgraded software stock Cognizant Technology Solutions Corp (NASDAQ:CTSH) from Hold to Buy. The firm’s James Schneider (Track Record & Ratings) also raised his price target for the shares to $84 from $81. He now predicts shares have 20% upside ahead.

Improving revenue growth brings prospects for a stock “re-rating,” Schneider told investors. Plus a rebound in the company’s Financial Services vertical should drive improved revenue growth in the near term.

This bullish analysis is echoed by other analysts. For example, Loop Capital’s Joseph Vafi has a Street-high $94 price target on shares (35% upside potential). Following the company’s upbeat analyst day, Vafi is even more confident in the company’s unique offer of a “full spectrum of services demanded by Fortune 500 CIOs”.

CTSH has now “successfully pivoted its business to the most leading-edge service capabilities,” and the bear case should be “put to bed”, especially given the forecast of improving margins in 2019.

Meanwhile valuation provides a positive risk/reward opportunity, with a roughly 60% multiple discount to Accenture’s PE in 2019, despite similar aggregate growth rates and higher margins.

Stock Picks for 2019: TJX Companies (TJX)

Owner of the discount TJ Maxx, Marshalls, HomeGoods stores and others, TJX Companies (NYSE:TJX) is a leading off-price retailer of home and fashion goods. Basically, if you’re looking for a bargain, TJX could be for you.

“Off-price remains one of our favored industries given its positive traffic, market share gains, and strong cash flow generation,” gushes five-star Guggenheim analyst Robert Drbul (Track Record & Ratings). And TJX is one of his top stock picks in this space.

“Despite expense headwinds, TJX continues to report enviable comps, one of the highest across retail landscape, fueled by traffic increases and share gains” the analyst writes. He now sees TJX delivering an impressive $50B revenues over the next five years.

Plus, TJX is a great stock for shareholders. This is thanks to its 1.7% dividend payout — a dividend which has now recorded 21 years of consecutive growth.

“Beyond the share gains and stable EPS growth, we believe with the increased dividend and the buyback program, TJX once again underlines FCF generating ability of the business model,” writes Drbul. He expects TJX to generate $2.5B of FCF and combined with $1B of repatriated cash, return all of it to shareholders with dividends and buybacks.

From top analysts, the stock scores a ‘Strong Buy’ consensus. This is with a $56 average analyst price target so we are looking at 24% upside ahead.

Stock Picks for 2019: MSCI Inc (MSCI)

DocuSign stock

Source: Shutterstock

Last but not least, comes a stock I only discovered recently, index provider MSCI Inc(NYSE:MSCI).

MSCI is a global provider of equity, fixed income, hedge fund stock market indexes and multi-asset portfolio analysis tools. It publishes the MSCI BRIC, MSCI World and MSCI EAFE Indexes.

“We continue to view the index business as a key catalyst that should produce solid top-line results (in the upper-single-to-low double digits)” is how Cantor Fitzgerald’s Joseph Foresi (Track Record & Ratings) describes the stock’s outlook.

The company is experiencing strong growth in its index business while margins are also expanding.

Foresi sums up as follows: “We expect shareholders to benefit over the long term from growth in indexing, recent investments/reorganization, margin expansion, and capital allocation.”

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

Stock Research Made Simple