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Fishing for Bargains? 3 “Strong Buy” Stocks Trading at Rock-Bottom Prices

3 "Strong Buy" Stocks Trading at Rock-Bottom Prices

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This article was originally published by TipRanks.

Whether markets move up or down, every investor loves a bargain. There’s a thrill in finding a valuable stock at low, low price – and then watching it appreciate in the mid- to long-term. Portfolio growth of that sort is one of the reasons we’re all in the investing game to begin with. So, how are investors supposed to distinguish between the names poised to get back on their feet and those set to remain down in the dumps? That’s what the pros on Wall Street are here for. Using TipRanks’ database, we pinpointed three beaten-down stocks the analysts believe are gearing up for a rebound. Despite the hefty losses incurred so far in 2020, the three tickers have scored enough praise from the Street to earn a “Strong Buy” consensus rating. Scorpio Tanker (STNG) We’ll start in the ocean-going tanker sector, a major component of the global trade network, transporting the fuel that propels the world’s economy. The industry faces systemic headwinds in the form of unavoidable high costs and low margins, and has been buffeted by low demand and short storage space during the coronavirus crisis. The general difficulties facing the tanker segment have pushed Scorpio’s stock price down 72% this year. Scorpio is a small-cap fuel carrier, operating a fleet of 128 owned tankers supplemented by another 10 chartered vessels. The company’s ships include 21 Handymax and 59 MR tankers, along with numerous LR1 and LR2 vessels. Scorpio’s fleet operates world-wide. While the tanker industry has felt heavy headwinds recently, Scorpio has managed to weather them. The company has a build-in advantage of operating the smallest sized tankers (Handymax) in the global fleet, allowing it access to smaller ports and facilities than competitors dependent on larger vessels. STNG’s 1H20 performance has outperformed its industry, and shown sequential gains in both Q1 and Q2 for revenues and earnings. The second quarter top line came in at $346 million, with $2.40 EPS. Covering this stock for Deutsche Bank, analyst Amit Mehrotra writes, “STNG’s financial position should be fine given new liquidity- with $82M expected in the coming weeks/months, mostly from sale and leaseback transactions… having cash to burn is an important consideration when assessing risk, and in this case STNG remains comfortably positioned in our view. From a stock standpoint, while we understand the lackluster performance of shares in the context of current rates and relative risk profile… we see more than enough liquidity levers outside of new equity…” In-line with his view of STNG’s liquidity position, Mehrotra rates the stock a Buy. His $27 price target implies a robust upside of 153% for the coming year. (To watch Mehrotra’s track record, click here) Overall, the Strong Buy analyst consensus rating here is unanimous, based on 4 recent Buy reviews. Scorpio Tanker is currently trading at $10.69, and its $28.75 average price target suggests a one-year upside of 168%. (See STNG stock analysis on TipRanks)
International Seaways (INSW) Next on our list is another small-cap tanker firm, International Seaways. This company operates a fleet of 39 vessels, ranging from Suezmax and Panamax ships – the largest that can transit their eponymous canals – to the giant VLCC tankers weighing up to 250,000 tons. The company’s fleet also includes the smaller MR and LR1 tankers. INSW has been able to leverage its varied fleet to generate positive revenues and earnings, even in the difficult environment imposed by the coronavirus pandemic. The top line in the past two quarters rose from $125 million to $139 million, and EPS grew from $1.49 to $2.39. Despite the generally positive revenues and earnings, however, INSW shares have lost value. The stock peaked for the year in early January, but has since fallen by 48%. Liam Burke, of B. Riley FBR, notes that INSW has seen a 100% year-over-year gain in time charter equivalent revenue, a positive marker that comes as the company has been able to take advantage of the need for floating oil storage. “The company saw continued strength in 2Q20 following a strong 1Q20 on demand for both crude and refined petroleum product floating storage. For the first half of 2020, strong spot rate drove healthy generation net cash from operating activities of $127.7 million, compared to $43.8 million a year ago. In a very volatile spot market, we believe the combination of INSW's opportunistically time chartering vessels and operating a diversified fleet enables the company to capture value in both crude oil and refined products,” Burke opined. Burke sets a $35 price target on International Seaways’ shares, indicating a potential for impressive growth – up to 131% in the next year. This outlook supports his Buy rating. (To watch Burke’s track record, click here) Overall, INSW has 4 recent reviews, including 3 Buys and 1 Hold, making its analyst consensus view a Strong Buy. The $30.25 average price target suggests the stock has a 99% upside potential from its share price of $15.15. (See INSW stock analysis on TipRanks)
FirstCash, Inc. (FCFS) The last stock on our list inhabits a unique business niche, in the world of pawn shops. FirstCash operates a chain of pawn shops in the US and Latin America, with a presence in 24 US states as well as Mexico, Guatemala, El Salvador, and Colombia. The company provides financing services to customers with severe cash and credit constraints, using pledges of personal property to secure consumer pawn loans. The general decline in consumer activity – and the concerted government push to provide extended unemployment assistance and special ‘one-time’ stimulus benefits – put a damper on FirstCash’s business in 1H20. The effect was particularly noticeable coming off a high 4Q19. FCFS typically sees more business traffic in the fourth quarter, which encompasses the holiday season. The contrast between a strong Q4 and the difficult ‘corona half’ was marked. In 1H20, FirstCash saw revenues fall to $466 million in Q1 and $412 million Q2. The EPS drop was steeper; earnings slipped 35% from 96 cents in Q1 to 62 cents in Q2. The company’s shares have been falling off, as well. The market swoon of late February inaugurated a period of high volatility for FCFS, which has left the stock down 26% year-to-date. Alonso Garcia, of Credit Suisse, describes the current valuation as “attractive,” however, and adds, “The defensive nature of FCFS’ business model should play out in the quarters to come and deliver a gradual but consistent earnings rebound starting in 4Q20, as consumption patterns should tend to normalize as economies re-open and as demand for pawns pick up once the effect of the strong fiscal stimulus in the US is left behind and the effects of the deteriorated macro backdrop post-pandemic kick in.” Garcia gives FCFS an Outperform (i.e. Buy) rating, along with a $74 price target, implying a 25% upside potential. (To watch Garcia’s track record, click here) All in all, FirstCash has a Strong Buy analyst consensus rating based on 3 Buys and 1 Hold. The shares of this company are selling for $59.11, and the average price target of $79.38 indicates room for 34% upside growth in the next 12 months. (See FCFS stock analysis on 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 Trading at Rock-Bottom Prices appeared first on TipRanks Financial Blog.

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate…

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.

(Shutterstock)

A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.

Long COVID Patients Have Low Iron Levels

Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.

In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.

According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.

But it can jeopardize a person’s recovery.

When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”

The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.

It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”

The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.

1 in 5 Still Affected by Long COVID

COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.

Tyler Durden Sat, 03/09/2024 - 12:50

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February Employment Situation

By Paul Gomme and Peter Rupert The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000…

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By Paul Gomme and Peter Rupert

The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000 average over the previous 12 months. The payroll data for January and December were revised down by a total of 167,000. The private sector added 223,000 new jobs, the largest gain since May of last year.

Temporary help services employment continues a steep decline after a sharp post-pandemic rise.

Average hours of work increased from 34.2 to 34.3. The increase, along with the 223,000 private employment increase led to a hefty increase in total hours of 5.6% at an annualized rate, also the largest increase since May of last year.

The establishment report, once again, beat “expectations;” the WSJ survey of economists was 198,000. Other than the downward revisions, mentioned above, another bit of negative news was a smallish increase in wage growth, from $34.52 to $34.57.

The household survey shows that the labor force increased 150,000, a drop in employment of 184,000 and an increase in the number of unemployed persons of 334,000. The labor force participation rate held steady at 62.5, the employment to population ratio decreased from 60.2 to 60.1 and the unemployment rate increased from 3.66 to 3.86. Remember that the unemployment rate is the number of unemployed relative to the labor force (the number employed plus the number unemployed). Consequently, the unemployment rate can go up if the number of unemployed rises holding fixed the labor force, or if the labor force shrinks holding the number unemployed unchanged. An increase in the unemployment rate is not necessarily a bad thing: it may reflect a strong labor market drawing “marginally attached” individuals from outside the labor force. Indeed, there was a 96,000 decline in those workers.

Earlier in the week, the BLS announced JOLTS (Job Openings and Labor Turnover Survey) data for January. There isn’t much to report here as the job openings changed little at 8.9 million, the number of hires and total separations were little changed at 5.7 million and 5.3 million, respectively.

As has been the case for the last couple of years, the number of job openings remains higher than the number of unemployed persons.

Also earlier in the week the BLS announced that productivity increased 3.2% in the 4th quarter with output rising 3.5% and hours of work rising 0.3%.

The bottom line is that the labor market continues its surprisingly (to some) strong performance, once again proving stronger than many had expected. This strength makes it difficult to justify any interest rate cuts soon, particularly given the recent inflation spike.

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Spread & Containment

Another beloved brewery files Chapter 11 bankruptcy

The beer industry has been devastated by covid, changing tastes, and maybe fallout from the Bud Light scandal.

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Before the covid pandemic, craft beer was having a moment. Most cities had multiple breweries and taprooms with some having so many that people put together the brewery version of a pub crawl.

It was a period where beer snobbery ruled the day and it was not uncommon to hear bar patrons discuss the makeup of the beer the beer they were drinking. This boom period always seemed destined for failure, or at least a retraction as many markets seemed to have more craft breweries than they could support.

Related: Fast-food chain closes more stores after Chapter 11 bankruptcy

The pandemic, however, hastened that downfall. Many of these local and regional craft breweries counted on in-person sales to drive their business. 

And while many had local and regional distribution, selling through a third party comes with much lower margins. Direct sales drove their business and the pandemic forced many breweries to shut down their taprooms during the period where social distancing rules were in effect.

During those months the breweries still had rent and employees to pay while little money was coming in. That led to a number of popular beermakers including San Francisco's nationally-known Anchor Brewing as well as many regional favorites including Chicago’s Metropolitan Brewing, New Jersey’s Flying Fish, Denver’s Joyride Brewing, Tampa’s Zydeco Brew Werks, and Cleveland’s Terrestrial Brewing filing bankruptcy.

Some of these brands hope to survive, but others, including Anchor Brewing, fell into Chapter 7 liquidation. Now, another domino has fallen as a popular regional brewery has filed for Chapter 11 bankruptcy protection.

Overall beer sales have fallen.

Image source: Shutterstock

Covid is not the only reason for brewery bankruptcies

While covid deserves some of the blame for brewery failures, it's not the only reason why so many have filed for bankruptcy protection. Overall beer sales have fallen driven by younger people embracing non-alcoholic cocktails, and the rise in popularity of non-beer alcoholic offerings,

Beer sales have fallen to their lowest levels since 1999 and some industry analysts

"Sales declined by more than 5% in the first nine months of the year, dragged down not only by the backlash and boycotts against Anheuser-Busch-owned Bud Light but the changing habits of younger drinkers," according to data from Beer Marketer’s Insights published by the New York Post.

Bud Light parent Anheuser Busch InBev (BUD) faced massive boycotts after it partnered with transgender social media influencer Dylan Mulvaney. It was a very small partnership but it led to a right-wing backlash spurred on by Kid Rock, who posted a video on social media where he chastised the company before shooting up cases of Bud Light with an automatic weapon.

Another brewery files Chapter 11 bankruptcy

Gizmo Brew Works, which does business under the name Roth Brewing Company LLC, filed for Chapter 11 bankruptcy protection on March 8. In its filing, the company checked the box that indicates that its debts are less than $7.5 million and it chooses to proceed under Subchapter V of Chapter 11. 

"Both small business and subchapter V cases are treated differently than a traditional chapter 11 case primarily due to accelerated deadlines and the speed with which the plan is confirmed," USCourts.gov explained. 

Roth Brewing/Gizmo Brew Works shared that it has 50-99 creditors and assets $100,000 and $500,000. The filing noted that the company does expect to have funds available for unsecured creditors. 

The popular brewery operates three taprooms and sells its beer to go at those locations.

"Join us at Gizmo Brew Works Craft Brewery and Taprooms located in Raleigh, Durham, and Chapel Hill, North Carolina. Find us for entertainment, live music, food trucks, beer specials, and most importantly, great-tasting craft beer by Gizmo Brew Works," the company shared on its website.

The company estimates that it has between $1 and $10 million in liabilities (a broad range as the bankruptcy form does not provide a space to be more specific).

Gizmo Brew Works/Roth Brewing did not share a reorganization or funding plan in its bankruptcy filing. An email request for comment sent through the company's contact page was not immediately returned.

 

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