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3 “Strong Buy” Stocks That Tick all the Boxes

3 "Strong Buy" Stocks That Tick all the Boxes

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It’s been said that gridlock is a feature, not a bug, of the US Constitution, and we may be about to find that out. The election results have left some questions to be resolved, but a few things are coming clear: Democrat Joe Biden is the winner of the Presidential race, but down ballot, the Republicans appear to have made important gains. We’re looking at the prospect of divided government – a Biden Administration with a Republican Senate and a Democratic House with a stronger minority.

According to JPMorgan strategist Marko Kolanovic, this may be the best possible outcome.

“A GOP senate majority should ensure that Trump’s pro-business policies stay intact, and if Biden is confirmed we should be able to expect an easing of the trade war, which should boost global trade and corporate earnings growth,” Kolanovic noted.

With investor fears allayed – that the Democrats would roll back Trump-era tax policy or focus on aggressive bureaucratic regulation – Kolanovic believes the markets are primed for gains.

However, finding the right stock to buy is always a challenge, even in a bullish environment, but TipRanks offers investors the range of metrics necessary to sort through the raw data of the markets and bring those nuggets to light. These include the analyst consensus rating, the upside potential, and the Smart Score; each gives a data point for investors, and taken together, when they all align, they’ll make a powerful signal.

The analyst consensus is just that – an average derived from full range of analyst ratings. The upside potential comes from the stock’s collected price targets; it’s a mathematical average that suggests the stock’s possible growth on a one-year time horizon. And the Smart Score uses known predictive factors of market success to give stocks a score that points toward forward performance.

With this in mind, we used the TipRanks database to pinpoint three stocks that check all three of these boxes.

Pacific Ethanol (PEIX)

We’ll start with a diversified company, with production lines in food products and animal feeds as well as industrial alcohols and renewable fuels. Pacific Ethanol sells its products on the global market, and has seen major gains in 2Q20. Even with recent losses in account, the stock is up a whopping 795% this year.

The gains have come since July, as the company expanded production in response to demand for sanitizing alcohols. Sales of alcohol for hand sanitizers has been a major boost for the Pacific Ethanol in the wake of the coronavirus crisis. Taking new production and sales potential into account, the company has revised 2020 earnings estimates upward to the $66 million to $86 million range.

So far, the company is on track. Like many small-cap manufacturers, Pacific Ethanol was running earnings deficits prior to this year – but COVID-19 changed that. Earnings turned positive in Q2 and remained so in Q3. The sudden shift has investors bullish on the stock.

Amit Dayal, 5-star analyst with H.C. Wainwright, sees plenty of reason for an upbeat outlook here.

“Investors should note that management indicated that though the company has a firm visibility on pricing, specialty alcohol volumes delivered to customers could vary on a quarterly basis. Given that sanitizers are a key end-market for specialty alcohols, the stock has come under some pressure with positive COVID-19 vaccine related news. However, we believe demand for sanitizer products should remain elevated with increase in any economic activity in the near term. We believe the improved balance sheet and cash flow is allowing the company to make investments in areas of the business that have been previously overlooked, and may have been under-contributing as a result,” Dayal opined.

In-line with these comments, Dayal rates this stock a Buy along with a $16 price target. This figure suggests an impressive 174% upside potential in the coming year. (To watch Dayal’s track record, click here)

All three of the recent reviews on PEIX are positive, making the consensus rating a unanimous Strong Buy. PEIX shares are priced at $5.82 and have been growing fast in 2H20, but the Street expects to see more growth here; the average price target is $16.50, implying 183% growth ahead for Pacific Ethanol. (See PEIX stock analysis on TipRanks)

New York Times Company (NYT)

Our next stock is a storied name in the publishing world. The New York Times company owns its eponymous newspaper, along with an array of other media assets and Times-related brands. The company boasts a $6.4 billion market cap and upwards of 30 business assets. Its core brands attract 150 million readers every month, and over 6.5 million paid subscriptions.

In a news environment as fast-paced and chaotic as 2020 has been, the NYT has reaped the benefit of people’s need to know. The stock is up 20% year-to-date, despite some slips in recent weeks.

Covering NYT for J.P. Morgan, analyst Alexia Quadrani writes, “NYT remains our favorite midcap stock, and we see the growth story for digital subs continuing and will very likely reach 10m well ahead of management’s 2025 target. ARPU and margin improvements over time will also make the stock look cheaper on earnings, which will negate the pushback on valuation. While shares could remain a bit more range bound near term until we get more visibility into trends in 2021, we view the sell-off today as creating an attractive entry point.”

Quadrani rates this stock an Overweight (i.e. Buy), and her $50 price target indicates a potential for 30% in the next 12 months. (To watch Quadrani’s track record, click here)

The Strong Buy analyst consensus rating on NYT is unanimous, and based on 4 recent reviews. Shares have an average price target of $53, suggesting a 37% one-year upside from the current trading price of $38.53. (See NYT stock analysis on TipRanks)

Thor Industries (THO)

Last but not least is Thor Industries, a major manufacturer of recreational vehicles. RVs are a popular form of leisure, and have seen a modest gain during the ‘corona time,’ as there are compatible with social distancing requirements while still permitting households to vacation together. Thor owns seven brands, including well-known names like Airstream and Heartland. The company has a $4.8 billion market cap and upwards of $8 billion in annual revenues.

Quarterly revenues, which were reported for Q3 earlier this month, have recovered from a short dip earlier this year. The Q3 top line came in at $2.32 billion, the highest of the past four quarters. Earnings, which has been falling since Q3 of last year, showed a massive sequential spike, jumping from 43 cents per share to $2.14.

Leisure stocks have been seeing a resurgence recently, and BMO Capital analyst Gerrick Johnson has been reviewing the sector. Of Thor Industries, Johnson writes, “Stocks of leisure companies usually move higher or lower on retail sales results more so than revenues or EPS. We think investor focus will shift after this quarter. Retail has caught up with investor expectations… We think … Thor (THO) will have the longest legs in terms of consumer demand…”

Turning to sales numbers, Johnson adds, “Last quarter, management sounded very optimistic about FY2021 and expects the current robust retail and restocking cycle will last through at least the end of its fiscal year.”

To this end, Johnson rates THO an Outperform (i.e. Buy) and his $110 price target implies an upside of 26% from current levels. (To watch Johnson’s track record, click here)

Once again, we are looking at a stock with a unanimous Strong Buy analyst consensus rating; Thor has 4 recent Buy reviews. The stock also has a $115 average price target, which suggests a bullish 32% upside for the next 12 months. (See THO stock analysis at TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post 3 "Strong Buy" Stocks That Tick all the Boxes appeared first on TipRanks Financial Blog.

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United Airlines adds new flights to faraway destinations

The airline said that it has been working hard to "find hidden gem destinations."

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Since countries started opening up after the pandemic in 2021 and 2022, airlines have been seeing demand soar not just for major global cities and popular routes but also for farther-away destinations.

Numerous reports, including a recent TripAdvisor survey of trending destinations, showed that there has been a rise in U.S. traveler interest in Asian countries such as Japan, South Korea and Vietnam as well as growing tourism traction in off-the-beaten-path European countries such as Slovenia, Estonia and Montenegro.

Related: 'No more flying for you': Travel agency sounds alarm over risk of 'carbon passports'

As a result, airlines have been looking at their networks to include more faraway destinations as well as smaller cities that are growing increasingly popular with tourists and may not be served by their competitors.

The Philippines has been popular among tourists in recent years.

Shutterstock

United brings back more routes, says it is committed to 'finding hidden gems'

This week, United Airlines  (UAL)  announced that it will be launching a new route from Newark Liberty International Airport (EWR) to Morocco's Marrakesh. While it is only the country's fourth-largest city, Marrakesh is a particularly popular place for tourists to seek out the sights and experiences that many associate with the country — colorful souks, gardens with ornate architecture and mosques from the Moorish period.

More Travel:

"We have consistently been ahead of the curve in finding hidden gem destinations for our customers to explore and remain committed to providing the most unique slate of travel options for their adventures abroad," United's SVP of Global Network Planning Patrick Quayle, said in a press statement.

The new route will launch on Oct. 24 and take place three times a week on a Boeing 767-300ER  (BA)  plane that is equipped with 46 Polaris business class and 22 Premium Plus seats. The plane choice was a way to reach a luxury customer customer looking to start their holiday in Marrakesh in the plane.

Along with the new Morocco route, United is also launching a flight between Houston (IAH) and Colombia's Medellín on Oct. 27 as well as a route between Tokyo and Cebu in the Philippines on July 31 — the latter is known as a "fifth freedom" flight in which the airline flies to the larger hub from the mainland U.S. and then goes on to smaller Asian city popular with tourists after some travelers get off (and others get on) in Tokyo.

United's network expansion includes new 'fifth freedom' flight

In the fall of 2023, United became the first U.S. airline to fly to the Philippines with a new Manila-San Francisco flight. It has expanded its service to Asia from different U.S. cities earlier last year. Cebu has been on its radar amid growing tourist interest in the region known for marine parks, rainforests and Spanish-style architecture.

With the summer coming up, United also announced that it plans to run its current flights to Hong Kong, Seoul, and Portugal's Porto more frequently at different points of the week and reach four weekly flights between Los Angeles and Shanghai by August 29.

"This is your normal, exciting network planning team back in action," Quayle told travel website The Points Guy of the airline's plans for the new routes.

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Walmart launches clever answer to Target’s new membership program

The retail superstore is adding a new feature to its Walmart+ plan — and customers will be happy.

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It's just been a few days since Target  (TGT)  launched its new Target Circle 360 paid membership plan. 

The plan offers free and fast shipping on many products to customers, initially for $49 a year and then $99 after the initial promotional signup period. It promises to be a success, since many Target customers are loyal to the brand and will go out of their way to shop at one instead of at its two larger peers, Walmart and Amazon.

Related: Walmart makes a major price cut that will delight customers

And stop us if this sounds familiar: Target will rely on its more than 2,000 stores to act as fulfillment hubs. 

This model is a proven winner; Walmart also uses its more than 4,600 stores as fulfillment and shipping locations to get orders to customers as soon as possible.

Sometimes, this means shipping goods from the nearest warehouse. But if a desired product is in-store and closer to a customer, it reduces miles on the road and delivery time. It's a kind of logistical magic that makes any efficiency lover's (or retail nerd's) heart go pitter patter. 

Walmart rolls out answer to Target's new membership tier

Walmart has certainly had more time than Target to develop and work out the kinks in Walmart+. It first launched the paid membership in 2020 during the height of the pandemic, when many shoppers sheltered at home but still required many staples they might ordinarily pick up at a Walmart, like cleaning supplies, personal-care products, pantry goods and, of course, toilet paper. 

It also undercut Amazon  (AMZN)  Prime, which costs customers $139 a year for free and fast shipping (plus several other benefits including access to its streaming service, Amazon Prime Video). 

Walmart+ costs $98 a year, which also gets you free and speedy delivery, plus access to a Paramount+ streaming subscription, fuel savings, and more. 

An employee at a Merida, Mexico, Walmart. (Photo by Jeffrey Greenberg/Universal Images Group via Getty Images)

Jeff Greenberg/Getty Images

If that's not enough to tempt you, however, Walmart+ just added a new benefit to its membership program, ostensibly to compete directly with something Target now has: ultrafast delivery. 

Target Circle 360 particularly attracts customers with free same-day delivery for select orders over $35 and as little as one-hour delivery on select items. Target executes this through its Shipt subsidiary.

We've seen this lightning-fast delivery speed only in snippets from Amazon, the king of delivery efficiency. Who better to take on Target, though, than Walmart, which is using a similar store-as-fulfillment-center model? 

"Walmart is stepping up to save our customers even more time with our latest delivery offering: Express On-Demand Early Morning Delivery," Walmart said in a statement, just a day after Target Circle 360 launched. "Starting at 6 a.m., earlier than ever before, customers can enjoy the convenience of On-Demand delivery."

Walmart  (WMT)  clearly sees consumers' desire for near-instant delivery, which obviously saves time and trips to the store. Rather than waiting a day for your order to show up, it might be on your doorstep when you wake up. 

Consumers also tend to spend more money when they shop online, and they remain stickier as paying annual members. So, to a growing number of retail giants, almost instant gratification like this seems like something worth striving for.

Related: Veteran fund manager picks favorite stocks for 2024

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President Biden Delivers The “Darkest, Most Un-American Speech Given By A President”

President Biden Delivers The "Darkest, Most Un-American Speech Given By A President"

Having successfully raged, ranted, lied, and yelled through…

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President Biden Delivers The "Darkest, Most Un-American Speech Given By A President"

Having successfully raged, ranted, lied, and yelled through the State of The Union, President Biden can go back to his crypt now.

Whatever 'they' gave Biden, every American man, woman, and the other should be allowed to take it - though it seems the cocktail brings out 'dark Brandon'?

Tl;dw: Biden's Speech tonight ...

  • Fund Ukraine.

  • Trump is threat to democracy and America itself.

  • Abortion is good.

  • American Economy is stronger than ever.

  • Inflation wasn't Biden's fault.

  • Illegals are Americans too.

  • Republicans are responsible for the border crisis.

  • Trump is bad.

  • Biden stands with trans-children.

  • J6 was the worst insurrection since the Civil War.

(h/t @TCDMS99)

Tucker Carlson's response sums it all up perfectly:

"that was possibly the darkest, most un-American speech given by an American president. It wasn't a speech, it was a rant..."

Carlson continued: "The true measure of a nation's greatness lies within its capacity to control borders, yet Bid refuses to do it."

"In a fair election, Joe Biden cannot win"

And concluded:

“There was not a meaningful word for the entire duration about the things that actually matter to people who live here.”

Victor Davis Hanson added some excellent color, but this was probably the best line on Biden:

"he doesn't care... he lives in an alternative reality."

*  *  *

Watch SOTU Live here...

*   *   *

Mises' Connor O'Keeffe, warns: "Be on the Lookout for These Lies in Biden's State of the Union Address." 

On Thursday evening, President Joe Biden is set to give his third State of the Union address. The political press has been buzzing with speculation over what the president will say. That speculation, however, is focused more on how Biden will perform, and which issues he will prioritize. Much of the speech is expected to be familiar.

The story Biden will tell about what he has done as president and where the country finds itself as a result will be the same dishonest story he's been telling since at least the summer.

He'll cite government statistics to say the economy is growing, unemployment is low, and inflation is down.

Something that has been frustrating Biden, his team, and his allies in the media is that the American people do not feel as economically well off as the official data says they are. Despite what the White House and establishment-friendly journalists say, the problem lies with the data, not the American people's ability to perceive their own well-being.

As I wrote back in January, the reason for the discrepancy is the lack of distinction made between private economic activity and government spending in the most frequently cited economic indicators. There is an important difference between the two:

  • Government, unlike any other entity in the economy, can simply take money and resources from others to spend on things and hire people. Whether or not the spending brings people value is irrelevant

  • It's the private sector that's responsible for producing goods and services that actually meet people's needs and wants. So, the private components of the economy have the most significant effect on people's economic well-being.

Recently, government spending and hiring has accounted for a larger than normal share of both economic activity and employment. This means the government is propping up these traditional measures, making the economy appear better than it actually is. Also, many of the jobs Biden and his allies take credit for creating will quickly go away once it becomes clear that consumers don't actually want whatever the government encouraged these companies to produce.

On top of all that, the administration is dealing with the consequences of their chosen inflation rhetoric.

Since its peak in the summer of 2022, the president's team has talked about inflation "coming back down," which can easily give the impression that it's prices that will eventually come back down.

But that's not what that phrase means. It would be more honest to say that price increases are slowing down.

Americans are finally waking up to the fact that the cost of living will not return to prepandemic levels, and they're not happy about it.

The president has made some clumsy attempts at damage control, such as a Super Bowl Sunday video attacking food companies for "shrinkflation"—selling smaller portions at the same price instead of simply raising prices.

In his speech Thursday, Biden is expected to play up his desire to crack down on the "corporate greed" he's blaming for high prices.

In the name of "bringing down costs for Americans," the administration wants to implement targeted price ceilings - something anyone who has taken even a single economics class could tell you does more harm than good. Biden would never place the blame for the dramatic price increases we've experienced during his term where it actually belongs—on all the government spending that he and President Donald Trump oversaw during the pandemic, funded by the creation of $6 trillion out of thin air - because that kind of spending is precisely what he hopes to kick back up in a second term.

If reelected, the president wants to "revive" parts of his so-called Build Back Better agenda, which he tried and failed to pass in his first year. That would bring a significant expansion of domestic spending. And Biden remains committed to the idea that Americans must be forced to continue funding the war in Ukraine. That's another topic Biden is expected to highlight in the State of the Union, likely accompanied by the lie that Ukraine spending is good for the American economy. It isn't.

It's not possible to predict all the ways President Biden will exaggerate, mislead, and outright lie in his speech on Thursday. But we can be sure of two things. The "state of the Union" is not as strong as Biden will say it is. And his policy ambitions risk making it much worse.

*  *  *

The American people will be tuning in on their smartphones, laptops, and televisions on Thursday evening to see if 'sloppy joe' 81-year-old President Joe Biden can coherently put together more than two sentences (even with a teleprompter) as he gives his third State of the Union in front of a divided Congress. 

President Biden will speak on various topics to convince voters why he shouldn't be sent to a retirement home.

According to CNN sources, here are some of the topics Biden will discuss tonight:

  • Economic issues: Biden and his team have been drafting a speech heavy on economic populism, aides said, with calls for higher taxes on corporations and the wealthy – an attempt to draw a sharp contrast with Republicans and their likely presidential nominee, Donald Trump.

  • Health care expenses: Biden will also push for lowering health care costs and discuss his efforts to go after drug manufacturers to lower the cost of prescription medications — all issues his advisers believe can help buoy what have been sagging economic approval ratings.

  • Israel's war with Hamas: Also looming large over Biden's primetime address is the ongoing Israel-Hamas war, which has consumed much of the president's time and attention over the past few months. The president's top national security advisers have been working around the clock to try to finalize a ceasefire-hostages release deal by Ramadan, the Muslim holy month that begins next week.

  • An argument for reelection: Aides view Thursday's speech as a critical opportunity for the president to tout his accomplishments in office and lay out his plans for another four years in the nation's top job. Even though viewership has declined over the years, the yearly speech reliably draws tens of millions of households.

Sources provided more color on Biden's SOTU address: 

The speech is expected to be heavy on economic populism. The president will talk about raising taxes on corporations and the wealthy. He'll highlight efforts to cut costs for the American people, including pushing Congress to help make prescription drugs more affordable.

Biden will talk about the need to preserve democracy and freedom, a cornerstone of his re-election bid. That includes protecting and bolstering reproductive rights, an issue Democrats believe will energize voters in November. Biden is also expected to promote his unity agenda, a key feature of each of his addresses to Congress while in office.

Biden is also expected to give remarks on border security while the invasion of illegals has become one of the most heated topics among American voters. A majority of voters are frustrated with radical progressives in the White House facilitating the illegal migrant invasion. 

It is probable that the president will attribute the failure of the Senate border bill to the Republicans, a claim many voters view as unfounded. This is because the White House has the option to issue an executive order to restore border security, yet opts not to do so

Maybe this is why? 

While Biden addresses the nation, the Biden administration will be armed with a social media team to pump propaganda to at least 100 million Americans. 

"The White House hosted about 70 creators, digital publishers, and influencers across three separate events" on Wednesday and Thursday, a White House official told CNN. 

Not a very capable social media team... 

The administration's move to ramp up social media operations comes as users on X are mostly free from government censorship with Elon Musk at the helm. This infuriates Democrats, who can no longer censor their political enemies on X. 

Meanwhile, Democratic lawmakers tell Axios that the president's SOTU performance will be critical as he tries to dispel voter concerns about his elderly age. The address reached as many as 27 million people in 2023. 

"We are all nervous," said one House Democrat, citing concerns about the president's "ability to speak without blowing things."

The SOTU address comes as Biden's polling data is in the dumps

BetOnline has created several money-making opportunities for gamblers tonight, such as betting on what word Biden mentions the most. 

As well as...

We will update you when Tucker Carlson's live feed of SOTU is published. 

Tyler Durden Fri, 03/08/2024 - 07:44

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