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Best Stocks To Invest In 2022? 3 Consumer Discretionary Stocks To Watch

Could these consumer discretionary stocks be top picks in the stock market now?
The post Best Stocks To Invest In 2022? 3 Consumer Discretionary Stocks To Watch appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMark…

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Are These The Best Consumer Discretionary Stocks To Invest In Right Now?

When it comes to answering the question of what stocks to buy today, consumer discretionary stocks could be standing out in the stock market now. For the most part, this section of the market is in an interesting spot, to say the least. On one hand, there are the latest weekly initial jobless claims to consider. The latest claims sit at 230,000, versus expectations of 200,000. On the other hand, Federal Reserve Chairman Jerome Powell sees the U.S. economy withstanding rising interest rates and ‘short-lived’ effects from Omicron.

Now, what could all of this have to do with consumer discretionary stocks might you ask? Well, in essence, consumer discretionaries are cyclical stocks. This means that they often grow when the economy is doing well. Even with the jobless claims figures coming in slightly above estimates, they are still holding near pandemic-era lows. Not to mention, this is amidst a labor shortage. As such, some would consider this a sign of strength in the job market and overall economy now. Therefore, as the economic recovery takes place, most would want to jump on top names in the industry.

If anything, investors are also spoilt for choice when it comes to consumer discretionary stocks now. For instance, we could look at the likes of Taiwan Semiconductor Manufacturing (NYSE: TSM) and Enphase (NASDAQ: ENPH). For TSM, global demand for its semiconductor chips continues to drive steady growth. This is evident as the company posted solid year-over-year gains of over 21% in terms of quarterly revenue. Elsewhere, Enphase got a rosy update from Guggenheimanalyst Joseph Osha. Osha upgraded ENPH stock from a Neutral to a Buy rating. After considering all this, could one of these consumer discretionary stocks be worth watching in the stock market today?

Top Consumer Discretionary Stocks To Buy [Or Sell] In January 2022

Delta Air Lines Inc.

First up, we have Delta Air, one of the world’s oldest airlines in operation and a legacy carrier in the U.S. It is a global airline leader in safety, innovation, reliability, and customer experience. In fact, the company was named by J.D. Power & Associates as the No. 1 airline in its 2021 North American Satisfaction Study. Delta is also the first airline to commit to becoming carbon neutral on a global basis by focusing on carbon reductions and removals. DAL stock currently trades at $41.88 as of 11:12 a.m. ET.

Today, the company reported a strong quarter and showcased a strong recovery. Diving in, Delta reported an adjusted pre-tax income of $170 million for its December quarter. It also beat analyst estimates with an adjusted earnings per diluted share of $0.22 on adjusted operating revenue of $8.4 billion. 

Despite rising coronavirus cases associated with the Omicron variant, the company expects March quarter revenue to recover to 72% to 76% of 2019 levels. It comes as the new variant is expected to delay the demand recovery for 60 days, but the company is confident in a strong spring and summer travel season, with significant pent-up demand for consumer and business travel. This comes as Delta’s operations have stabilized over the last week and returned to pre-holiday performance. With that in mind, is DAL stock worth investing in right now?

delta airlines stock
Source: TD Ameritrade TOS

[Read More] Best Lithium Battery Stocks To Buy Now? 4 To Know

Microsoft Corporation

Microsoft is a consumer discretionary company that sells a wide variety of tech products and services. From one of the most popular operating systems in the world, Microsoft Windows, to its line of gaming hardware, the Xbox Series, the company is certainly a tech titan. MSFT stock currently trades at $312.56 as of 11:12 a.m. ET and is up by over 45% in the past year alone.

On Wednesday, the company announced new research and technology to empower millions of frontline workers. In detail, its Microsoft Teams and Microsoft Viva have seen exponential growth per month by frontline workers during this pandemic. The company is partnering with Zebra Technologies to deliver the Teams Walkie Talkie app on a wide range of Zebra mobile computers. This includes a push-to-talk button to access Team Walkie Talkie functionality on Zebra devices. Its Viva Learning app allows frontline employees to discover and track learning content right from Teams, making it easier for the company’s workforce to stay up to date on required training.

In November, it published an article on how medical companies like Novartis (NYSE: NVS) are searching for breakthrough medicines powered by AI. This is part of a collaboration with Microsoft to get medicines to patients faster. Through AI, the company can shorten the time taken to carry out testing and experiments from years to weeks or even days. Given this piece of information, is MSFT stock a consumer discretionary stock to add to your portfolio?

NASDAQ MSFT
Source: TD Ameritrade TOS

[Read More] Best Monthly Dividend Stocks To Buy Now? 5 For Your List

Coinbase Global Inc.

Last but not least, we will be taking a look at Coinbase Global. To highlight, the company operates one of the largest cryptocurrency platforms worldwide. Notably, Coinbase currently serves over 73 million verified users across more than 100 countries globally. For a sense of scale, the company has $255 billion in assets on its platform. Furthermore, it also boasts a quarterly trade volume of $327 billion. Now, COIN stock currently trades at $231.26 a share as of 11:12 a.m. ET.

More importantly, Coinbase does not seem to be slowing down on the operational front anytime soon. As of today, the company is buying FairX, a crypto futures exchange. It is important to note that FairX is regulated by the Commodity Futures Trading Commission. In other words, it essentially sells crypto derivatives. Through the current acquisition, Coinbase is looking to bolster its portfolio with this offering. Also, the company is looking to make crypto derivatives more accessible to retail and institutional clients alike.

According to Coinbase, the development of a transparent futures market is “a critical inflection point for any asset class.” Ideally, the firm hopes that this will further incentivize participation in the overall crypto-economy. With Coinbase aggressively leading the charge in global crypto adoption trends, would you consider COIN stock a buy?

NASDAQ COIN
Source: TD Ameritrade TOS

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The post Best Stocks To Invest In 2022? 3 Consumer Discretionary Stocks To Watch appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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Economics

Boeing Jumps On First Positive Cash Flow Since 2019 Despite Another Huge 787 Charge

Boeing Jumps On First Positive Cash Flow Since 2019 Despite Another Huge 787 Charge

It was another painful quarter for Boeing, which reported revenue and earnings both of which missed expectation amid mounting 787 Dreamliner losses which…

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Boeing Jumps On First Positive Cash Flow Since 2019 Despite Another Huge 787 Charge

It was another painful quarter for Boeing, which reported revenue and earnings both of which missed expectation amid mounting 787 Dreamliner losses which amounted to another $3.5 billion in pre-tax non-cash charge s (focused on actions required to resume deliveries) however a surprise boost in 737 Max output from 19 to 26 per month was welcome news as was the unexpected end of the company's chronic cash burn as Boeing reported its first positive free cash flow since early 2019.

First, this is what Boeing reported for Q4:

  • Revenue $14.79 billion, -3.2% q/q, -3.3% y/y, missing estimates $16.67 billion (Bloomberg Consensus)
  • Core loss per share of ($7.69), on the continued Dreamliner charges, which was an "improvement" from the whopping ($15.25) reported but clearly missed estimates of (0.42).

If the massive Q4 charge was not enough, Boeing now sees 787-Related abnormal costs about $2B, above from the $1BN it had seen previously. The company said that it continues to perform rework on 787 in inventory and is focused on actions required to resume 787 deliveries.

Remarkably, as the following table from Boeing's earnings release shows, pretty much every Y/Y comparison is NM, which should tell you all you need to know about the company's headline financials.

And a prettier rendering:

Looking at revenue we get the following disappointing picture:

  • Commercial Airplanes revenue $4.75 billion, +0.5% y/y, missing estimates $5.50 billion
  • Defense, Space & Security revenue $5.86 billion, -14% y/y, missing estimate $6.85 billion
  • Global Services revenue $4.29 billion, +15% y/y, beating estimate $4.18 billion
  • Boeing Capital operating earnings $7 million, missing the estimate $24.4 million
  • Total commercial planes deliveries 99, +68% y/y, missing the estimate 102.36
  • Backlog $377 billion, +3.9% y/y

Adding insult to injury, the planemaker reported $5.5 billion in total costs to cover rising factory and customer expenses for the Dreamliner. Boeing took write-offs on the KC-46 aerial tanker and the global services division as well. As Bloomberg notes,
the 787 program’s profits have been wiped out as Boeing pays airlines for service they’ve lost because of delivery disruptions. The company hasn’t handed over any Dreamliners since June as it addresses structural imperfections on the roughly 100 aircraft in its system.

“This effort continues to impact our deliveries and our financial results -- but we are fully confident it is the right thing to do,” Calhoun’s memo said. “I view the financial impacts of this work as a long-term investment in a program that has significant runway ahead.”

It wasn't all bad news, however, as Boeing announced it is hiking the output of the 737 to 26 jets a month, up from 19 in October, Chief Executive Officer Dave Calhoun said in a note to employees. That was taken by the market as a sign the planemaker may be turning around its operations after burning through more than $31 billion during a nearly three-year-long slump marked by the Max’s grounding, the Covid-19 pandemic and a spate of quality lapses.

Looking ahead, Boeing said it still expects passenger traffic to return to 2019 levels in 2023 to 2024, and said that commercial recovery is broadening as regional dynamics continue to evolve driven by COVID-19. It also said says increasing 777/777X production rate to 3 per month in 2022.

But the biggest positive surprise was the company's announcement that in Q4, it generated $494 million in fourth-quarter free cash flow, up from a cash burn of over $4.2 billion a year ago; analysts had expected an outflow of about $1 billion.

This was the first positive FCF from Boeing since Q1 2019. It also meant that operating cash flow of $716 million as beat estimates of negative $429.0 million and was far above the negative $4.01 billion reported a year ago.

"2021 was a rebuilding year for us as we overcame hurdles and reached key milestones across our commercial, defense and services portfolios. We increased 737 MAX production and deliveries, and safely returned the 737 MAX to service in nearly all global markets. As the commercial market recovery gained traction, we also generated robust commercial orders, including record freighter sales. Demonstrating progress in our overall recovery, we also returned to generating positive cash flow in the fourth quarter," said David Calhoun, Boeing President and Chief Executive Officer.

"On the 787 program, we're progressing through a comprehensive effort to ensure every airplane in our production system conforms to our exacting specifications. While this continues to impact our near-term results, it is the right approach to building stability and predictability as demand returns for the long term. Across the enterprise, we remain focused on safety and quality as we deliver for our customers and invest in our people and in our sustainable future."

Also notably, the company which has been flirting with junk status for the past two years, managed to reduce its gross debt load again, even if its net debt remained unchanged as the entire reduction came at the expense of cash on hand.

Boeing shares ignored the latest huge 787 charge and operating loss and instead focused on the positive free cash flow and improvement in 737 MAX output, and rose 2% premarket. The shares gained 1.4% this year through Tuesday, while the Dow Jones Industrial Average dropped 5.6%.

Benchmark called Q4 a “kitchen sink” quarter, and noted that the Max production schedule was progressing, which is the main focus for analysts and investors. 

The company's Q4 investor presentation is below (pdf link)

Tyler Durden Wed, 01/26/2022 - 09:05

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Government

Stock Market Today: Dow Jones, S&P 500 Rebounds; Microsoft Rebounds Ahead Of FOMC Meeting

Investors are eagerly waiting for the Federal Reserve policy-setting meeting.
The post Stock Market Today: Dow Jones, S&P 500 Rebounds; Microsoft Rebounds Ahead Of FOMC Meeting appeared first on Stock Market News, Quotes, Charts and Financial Informat

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Stock Market Today Mid-Morning Updates

On Wednesday, the Dow Jones Industrial Average is up by 380 points after yet another steep decline yesterday. Investors are anticipating the Federal Reserve’s press conference about its tightening plans after its two-day Federal Open Market Committee (FOMC) meeting. This is in the hopes that the Fed will reassure the markets on its outlook for monetary policy. Anticipation over a pullback in Federal Reserve stimulus has left the stock market in a volatile state.

It also sets the stage for the central bank policy-setting meeting this week. Although the Fed has signaled that it will likely raise rates multiple times this year, the first post-pandemic rate increase is not expected this week. Instead, the FOMC policy-setting will outline the higher rates coming in its March meeting. “It really is time for us to begin to move away from those emergency pandemic settings to a more normal level,” Fed Chairman Jerome Powell told Congress two weeks ago, adding that “2022 will be the year in which we take steps toward normalization.”

Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are up 1.24% today while Microsoft (NASDAQ: MSFT) is also up by 4.69%. Home Depot (NYSE: HD) and Nike (NYSE: NKE) ticked higher on Wednesday as well. Among the Dow financial leaders, Visa (NYSE: V) and Goldman Sachs (NYSE: GS) are trading higher at 2.66% and 2.08% respectively.

Shares of electric vehicle (EV) leader Tesla (NASDAQ: TSLA) are up by 3.06% on Wednesday. Rival EV companies like Rivian (NASDAQ: RIVN) and Lucid Group (NASDAQ: LCID) are also up by 4.45% and 0.28% today. Chinese EV leaders like Li Auto (NASDAQ: LI) and Xpeng Motors (NYSE: XPEV) are also trading higher at 3.26% and 2.34% respectively.

Dow Jones Today: Indicators Could Point To A March Interest Rate Hike

Following the stock market opening on Wednesday, the S&P 500, Dow Jones, and Nasdaq are trading 1.80%, 1.36%, and 2.31% higher. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is up by 2.05% on Wednesday, while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also up by 1.77%.

The 10-year Treasury yield dipped to around 1.77% early on Wednesday after the benchmark yield topped 1.9% highs since January 2020. With inflation persisting over the last few months, how the Fed plans to further combat it will be the focus of investors today as the central bank releases its policy statement at 2:00 p.m. ET. Chairman Jerome Powell will hold his post-meeting news conference at 2:30 p.m. ET.

[Read More] Best Stocks To Invest In 2022? 4 Tech Stocks For Your Watchlist

U.S. Auto Sales Expected To Dip In January

Today, consultants J.D. Power and LMC Automotive say that U.S. auto retail sales are expected to dip. This is due to reduced manufacturing from the Omicron variant, supply chain constraints, and global inflation that caused prices to soar amid high demand. They expect retail sales of new vehicles to fall 8.3% to 828,900 units from a year earlier.

The volume of new vehicles being delivered to dealerships in January has been insufficient to meet strong consumer demand, resulting in a significantly diminished sales pace,” said Thomas King, president of the data and analytics division at J.D. Powers. With consumer demand skyrocketing in recent months, new vehicle prices could continue to go up.

Boeing Posts Positive Cash Flow Despite Massive Miss On Earnings Estimates

On the earnings front today, we have Boeing (NYSE: BA) reporting in. To begin with, the aerospace giant posted a loss per share of $7.69 on revenue of $14.8 billion. Now, at face value, some would argue that these figures are less-than-desirable. For some perspective, this is versus Wall Street’s estimates of a loss of $0.42 a share on revenue of $16.59 billion. All of this adds up to make for Boeing’s third annual loss in a row amidst pandemic and production problems. For this quarter, its losses are likely due to Boeing taking a $3.5 billion charge on its 787 Dreamliners. This charge would be from production issues preventing the firm from delivering aircraft for the past 15 months. 

However, there is one positive point from this earnings call. That is, Boeing was able to generate a positive cash flow in its latest quarter. Notably, this is a major milestone for the firm as the last time it did so was before the pandemic. According to Boeing, a key growth driver contributing to this would be the deliveries of its 737 Max airliner. As demand for air travel did pick up over the previous quarter, this is not all that surprising.

According to CEO David Calhoun, the company sees 2021 as a “key rebuilding year.” Following this, Calhoun says, “I am confident that we are well-positioned to accelerate our progress in 2022 and beyond.” The real question now is whether investors should jump on BA stock which is trading lower by 1.28% today.

BA stock chart
Source: TD Ameritrade TOS

[Read More] Top Stocks To Buy For 2022? 4 Work-From-Home Stocks In Focus

Microsoft Shares Jump On Earnings Beat And Notable Strength In Cloud Business

At the same time, Microsoft seems to be on the other end of the spectrum from Boeing. In its latest quarterly earnings update yesterday, the company saw green across the board. Namely, it raked in a total revenue of $51.73 billion for the quarter, topping estimates of $50.88 billion.

This would indicate a record high for Microsoft alongside it crossing the $50 billion revenue mark for the first time. Also, the leading productivity software firm posted an earnings per share of $2.48, beating forecasts of $2.31. In terms of year-over-year comparisons, revenue and net income increased by 20% and 21% respectively. As a result of all this, MSFT stock is currently trading higher by 4.69% today.

More importantly, according to CFO Amy Hood, the company has and continues to see strength across its core services. Among its top-performing divisions would be its cloud computing arm, Microsoft Azure. The likes of which posted a revenue jump of 46% year-over-year. After considering all of this, investors appear to be keen on MSFT stock now. Even Dan Ives, managing director at Wedbush Securities says, “We’re buyers here all day long,” referring to the company’s shares.

Microsoft (MSFT) earnings
Source: TD Ameritrade

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The post Stock Market Today: Dow Jones, S&P 500 Rebounds; Microsoft Rebounds Ahead Of FOMC Meeting appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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Spread & Containment

First Helium Licenses Second Exploration Well at Worsley

TSXV: HELI   FRA: 2MC Drilling of the "4-29" Well Planned for Mid-February First Helium Inc. ("First Helium" or the "Company") (TSXV: HELI) (FRA: 2MC), today announced that it has received its license from the Alberta Energy Regulator ("AER")…

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TSXV: HELI   FRA: 2MC

Drilling of the "4-29" Well Planned for Mid-February

First Helium Inc. ("First Helium" or the "Company") (TSXV: HELI) (FRA: 2MC), today announced that it has received its license from the Alberta Energy Regulator ("AER") to drill its second exploration well, the " 4-29 ", which is located on First Helium's 100% owned, 79,000 acre Worsley landholdings in Northern Alberta, Canada . The Company expects to begin drilling operations in mid-February, 2022.

"Identified by a comprehensive 3D seismic study, the "4-29" well location at Worsley will be drilled as a follow up to our successful 1-30 well, targeting multiple helium gas horizons and potential oil accumulations," said Ed Bereznicki , President & CEO of First Helium. "Drilling 4-29 is an opportunity to build on the strong results from the 15-25 and 1-30 discovery wells, which collectively represent significant growth potential and underlying asset value to First Helium shareholders."

The 4-29 well is located near the Company's 1-30 light oil discovery well, and approximately 3 km SE of the 15-25 helium well on the core Worsley Property. A geologic and seismic review of the region suggests that like the 1-30 and 15-25, the 4-29 prospect presents as a structural high on the Leduc Reef Complex.

The 1-30 light oil discovery well tested at approximately 419 barrels of 35 degree API light oil over 3 days and is expected to be brought on-stream in early February at approximately 400 barrels per day.

The 15-25 was most recently tested last month to contain 1.3% helium content based on a 10-day flow period at 2 million cubic feet per day of raw gas. The raw gas stream is comprised of approximately 65% natural gas, which will be produced along with the helium gas, sold to market and also used to generate power for facility operations.

The 1-30 Leduc well was drilled based on a detailed 3D seismic evaluation of the Worsley Property.  The results confirm the Company's geologic model for the area.  Based on the Company's assessment of economic Leduc wells along the Worsley Trend, approximately 20% have been light oil producers, the balance have been natural gas producers containing potential economic helium content.  A detailed geological and geophysical evaluation of the Company's lands in the vicinity of the 15-25 well, the 1-30 well, and along the broader Worsley Trend has yielded additional compelling drill targets.  First Helium will incorporate the results from the drilling and testing of the 4-29 well to strategically pursue new drilling locations across the highly prospective, 90 km wide Worsley Trend.

ABOUT First Helium

Led by a core Senior Executive Team with extensive backgrounds in Oil & Gas Exploration and Operations, Mining, Finance, Capital Markets and public junior growth companies, First Helium seeks to be one of the leading independent providers of helium gas in North America .

Building on its successful 15-25 helium discovery well at the Worsley project, the Company has identified numerous follow-up drill locations and acquired an expansive infrastructure system to facilitate future exploration and development of helium across its Worsley land base.  Future cash flow from its successful 1-30 oil well at Worsley , anticipated to begin in Q1 2022, will help support First Helium's ongoing helium exploration and development growth strategy.

First Helium holds over 79,000 acres along the highly prospective Worsley Trend in Northern Alberta , and 276,000 acres in the Southern Alberta Helium Fairway, near existing helium production.  In addition to continuing its ongoing exploration and development drilling at Worsley , the Company has identified a number of high impact helium exploration targets on the prospective Southern Alberta Helium Fairway lands to set up a second core exploration growth area for the Company.

For more information about the Company, please visit www.firsthelium.com .

ON BEHALF OF THE BOARD OF DIRECTORS

Edward J. Bereznicki
President, CEO and Director

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

FORWARD-LOOKING AND CAUTIONARY STATEMENTS

This news release contains certain statements or disclosures relating to First Helium that are based on the expectations of its management as well as assumptions made by and information currently available to First Helium which may constitute forward-looking statements or information ("forward-looking statements") under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results, or developments that First Helium anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking statements. In some cases, forward-looking statements can be identified by the use of the words "expect", "will" and similar expressions. In particular, but without limiting the foregoing, this news release contains forward-looking statements pertaining to the timing and rate of production of the 1-30 discovery well; the timing of the completion of the construction and commissioning of an oil battery at 1-30; anticipated cash flows; the entering into of off-take marketing arrangements; the use of funds and the Company's strategy. The forward-looking statements contained in this news release reflect several material factors and expectations and assumptions of First Helium including, without limitation: that First Helium will continue to conduct its operations in a manner consistent with past operations; the general continuance of current or, where applicable, assumed industry conditions; availability of debt and/or equity sources to fund First Helium's capital and operating requirements as needed; and certain cost assumptions.

Forward-looking statements are based on estimates and opinions of management at the date the statements are made and are subject to risks, uncertainties and assumptions, including those set out in the Final Prospectus dated June 28, 2021 and filed under the Company's profile on SEDAR at www.sedar.com .  Readers are cautioned that actual results may vary materially from the forward-looking statements made in this news release. Risks that could cause actual events or results to differ materially from those projected in forward-looking statements include, but are not limited to, risks associated with the oil and gas industry; the ability of First Helium to fund the capital and operating expenses necessary to achieve its business objectives; the impact of the COVID-19 pandemic on the business and operations of First Helium; the state of financial markets; increased costs and physical risks relating to climate change; loss of key employees and those risks described in the Final Prospectus dated June 28 , 2021.  First Helium does not undertake any obligation to update forward looking statements, except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements.

SOURCE First Helium Inc.

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