Connect with us

DTE Stock Gets a Boost After Teaming up With Lyft, What’s Next?

With DTE stock leading the sector, can it maintain its momentum? Keep reading to find out what DTE stock is planning next and what to expect. 
The post…

Published

on

DTE stock is up over 5% after announcing the energy company is teaming up with ridesharing giant Lyft (Nasdaq: LYFT). The partnership is part of DTE’s Charging Forward Program, designed to accelerate Michigan’s electric vehicle (EV) use.

That being said, DTE Energy (NYSE: DTE) is based in Detroit and provides diversified energy and utility services nationwide. The company has five segments, which includes:

  • Electric
  • Gas
  • Vantage
  • Energy Trading
  • Corporate/Other

After receiving criticism for power shutoffs during the pandemic, especially in lower-income areas, the business is getting back on track. The growth in electric vehicles, particularly in Michigan, should help provide long-term growth opportunities.

Nonetheless, utilities are outperforming the market as the Utilities Select Sector SPDR Fund (NYSE: XLU) gains 7% so far in 2022. With DTE stock leading the sector, can it maintain its momentum? Keep reading to find out what DTE stock is planning next and what to expect.

DTE stock forecast.

Partnering With Lyft to Boost EV Use

The biggest news surrounding DTE stock is the partnership with leading rideshare company Lyft. The plan is to give equal access to EVs while boosting clean energy use in the Michigan area.

For one thing, DTE Energy is giving a $2,000 rebate for Lyft drivers that purchase or lease an EV. DTE is investing over $1 billion to enhance the electric grid so it can handle the growing EV base. Users will need to apply to the program first and are then eligible for the incentive.

 In addition, DTE will pay the rest of the balance in four payments of $750 if the driver surpasses 200 rides per quarter. With this in mind, drivers can earn up to $5,000 with the rebate, making it easier to access EVs while promoting clean energy use. The partnership is the second installment in DTE’s Charging Forward Program, which started with charger rebates.

The extra incentive will help lower-income individuals’ ability to access EVs while supporting a cleaner city. According to Lyft’s Local Economic Impact Report for Detroit, 95% of drivers work other jobs or are students. On top of this, Detroit consistently ranks as one of the most polluted cities in Michigan.

DTE Energy Strong Earnings Growth

DTE Energy is firing on all cylinders after successfully spinning off its midstream business last year. In 2021, operating earnings increased across the board compared to 2020.

  • Energy: $864 vs $813
  • Gas: $214 vs $196
  • Vantage: $176 vs $150
  • Energy Trading: $52 vs $39
  • Corporate/Other: ($145) vs ($113)

(In millions)

The earnings growth can be attributed to higher rates and an expanding renewable energy portfolio. In fact, DTE stock grew its wind and solar generation by 40% this past year with a new solar park and three wind parks.

On top of this, higher demand for renewable natural gas (RNG) is boosting DTE Vantage. RNG is carbon-neutral compared to fossil fuels. So, as clean energy efforts accelerate, DTE Vantage expects to continue building momentum. As one of the largest dairy RNG suppliers, DTE stock is in a strong position for growth.

DTE continues investing in upgrading its infrastructure while preparing for a larger EV load in the coming years. Meanwhile, General Motors (NYSE: GM) is pouring $7 billion to increase EV truck production.

GM is investing in four sites to support the ‘significant increase’ in battery and EV truck manufacturing ability. By the end of 2025, GM is expecting to have over one million EV capacity. If this is the case, then DTE Energy will see a significant increase in demand for its services to power the plants. In DTE’s service territory, the Orion factory is expecting to produce 600,000 EV trucks alone.

DTE Stock Analysis

The earnings growth translates to investor returns as DTE stock gains over 15% YTD. Although this may not seem like a huge return, a positive return is ideal compared to the S&P 500 (NYSE: SPY), down 7%.

At the same time, DTE stock looks to be in a solid upward trend with accumulation building this past month. Although the Relative Strength Index (RSI) shows overbought short term (+70), DTE stock looks to be setting up for long-term growth.

So far, DTE is trading above its 50D SMA and 20D SMA, a sign of upward momentum. On top of this, an upward sloping 200D SMA shows a bullish trend is likely.

Furthermore, DTE Energy’s value seems fair, with a Price-to-Sales (P/S) ratio of 1.7 compared to the industry average of 2.9. Yet a higher Price-to-Earnings (P/E) of 29 may suggest short-term weakness.

Other DTE Stock News

Although the Lyft partnership is dominating headlines, DTE Energy is making other business moves to position the company for future growth.

  1. Partnering with GM: To accelerate EV adoption, the team is partnering with the state of Michigan. The program will create 4,000 new jobs while giving Michigan a powerful battery and EV production boost.
  2. Increasing renewable energy capacity: DTE Energy is investing in clean energy with a 40% capacity increase to support a clean future for everyone. With this in mind, the company’s clean energy portfolio can power almost 15% of all Michigan homes.
  3. Leading Midwest in customer satisfaction: DTE Energy ranks highest in customer satisfaction according to J.D. Power’s 2021 study.

As you can see, DTE energy is making big moves to keep the pace building while preparing for the future of energy.

DTE Stock Forecast: What to Expect Next

DTE Energy is in a prime position to continue growing sales. You can look at DTE stock as a lower risk play, with regulation playing a major role in its business. Although you may be thinking, “how is more regulation a good thing?” It can create a steady income source for DTE.

At the same time, utility stocks are not known for explosive returns. But they can be a good anchor for your portfolio. As a result, DTE stock is a lower risk and lower reward play.

Although you will not likely see massive returns, utilities generally provide stability. They don’t typically fall as far as the broad market. With this in mind, DTE stock is positioning itself to play a significant role in the future of energy. And lastly, with a generous dividend yield of 2.6%, DTE stock is an excellent addition for long-term growth.

The post DTE Stock Gets a Boost After Teaming up With Lyft, What’s Next? appeared first on Investment U.

Read More

Continue Reading

International

There will soon be one million seats on this popular Amtrak route

“More people are taking the train than ever before,” says Amtrak’s Executive Vice President.

Published

on

While the size of the United States makes it hard for it to compete with the inter-city train access available in places like Japan and many European countries, Amtrak trains are a very popular transportation option in certain pockets of the country — so much so that the country’s national railway company is expanding its Northeast Corridor by more than one million seats.

Related: This is what it's like to take a 19-hour train from New York to Chicago

Running from Boston all the way south to Washington, D.C., the route is one of the most popular as it passes through the most densely populated part of the country and serves as a commuter train for those who need to go between East Coast cities such as New York and Philadelphia for business.

Veronika Bondarenko captured this photo of New York’s Moynihan Train Hall. 

Veronika Bondarenko

Amtrak launches new routes, promises travelers ‘additional travel options’

Earlier this month, Amtrak announced that it was adding four additional Northeastern routes to its schedule — two more routes between New York’s Penn Station and Union Station in Washington, D.C. on the weekend, a new early-morning weekday route between New York and Philadelphia’s William H. Gray III 30th Street Station and a weekend route between Philadelphia and Boston’s South Station.

More Travel:

According to Amtrak, these additions will increase Northeast Corridor’s service by 20% on the weekdays and 10% on the weekends for a total of one million additional seats when counted by how many will ride the corridor over the year.

“More people are taking the train than ever before and we’re proud to offer our customers additional travel options when they ride with us on the Northeast Regional,” Amtrak Executive Vice President and Chief Commercial Officer Eliot Hamlisch said in a statement on the new routes. “The Northeast Regional gets you where you want to go comfortably, conveniently and sustainably as you breeze past traffic on I-95 for a more enjoyable travel experience.”

Here are some of the other Amtrak changes you can expect to see

Amtrak also said that, in the 2023 financial year, the Northeast Corridor had nearly 9.2 million riders — 8% more than it had pre-pandemic and a 29% increase from 2022. The higher demand, particularly during both off-peak hours and the time when many business travelers use to get to work, is pushing Amtrak to invest into this corridor in particular.

To reach more customers, Amtrak has also made several changes to both its routes and pricing system. In the fall of 2023, it introduced a type of new “Night Owl Fare” — if traveling during very late or very early hours, one can go between cities like New York and Philadelphia or Philadelphia and Washington. D.C. for $5 to $15.

As travel on the same routes during peak hours can reach as much as $300, this was a deliberate move to reach those who have the flexibility of time and might have otherwise preferred more affordable methods of transportation such as the bus. After seeing strong uptake, Amtrak added this type of fare to more Boston routes.

The largest distances, such as the ones between Boston and New York or New York and Washington, are available at the lowest rate for $20.

Read More

Continue Reading

International

The next pandemic? It’s already here for Earth’s wildlife

Bird flu is decimating species already threatened by climate change and habitat loss.

I am a conservation biologist who studies emerging infectious diseases. When people ask me what I think the next pandemic will be I often say that we are in the midst of one – it’s just afflicting a great many species more than ours.

I am referring to the highly pathogenic strain of avian influenza H5N1 (HPAI H5N1), otherwise known as bird flu, which has killed millions of birds and unknown numbers of mammals, particularly during the past three years.

This is the strain that emerged in domestic geese in China in 1997 and quickly jumped to humans in south-east Asia with a mortality rate of around 40-50%. My research group encountered the virus when it killed a mammal, an endangered Owston’s palm civet, in a captive breeding programme in Cuc Phuong National Park Vietnam in 2005.

How these animals caught bird flu was never confirmed. Their diet is mainly earthworms, so they had not been infected by eating diseased poultry like many captive tigers in the region.

This discovery prompted us to collate all confirmed reports of fatal infection with bird flu to assess just how broad a threat to wildlife this virus might pose.

This is how a newly discovered virus in Chinese poultry came to threaten so much of the world’s biodiversity.

H5N1 originated on a Chinese poultry farm in 1997. ChameleonsEye/Shutterstock

The first signs

Until December 2005, most confirmed infections had been found in a few zoos and rescue centres in Thailand and Cambodia. Our analysis in 2006 showed that nearly half (48%) of all the different groups of birds (known to taxonomists as “orders”) contained a species in which a fatal infection of bird flu had been reported. These 13 orders comprised 84% of all bird species.

We reasoned 20 years ago that the strains of H5N1 circulating were probably highly pathogenic to all bird orders. We also showed that the list of confirmed infected species included those that were globally threatened and that important habitats, such as Vietnam’s Mekong delta, lay close to reported poultry outbreaks.

Mammals known to be susceptible to bird flu during the early 2000s included primates, rodents, pigs and rabbits. Large carnivores such as Bengal tigers and clouded leopards were reported to have been killed, as well as domestic cats.

Our 2006 paper showed the ease with which this virus crossed species barriers and suggested it might one day produce a pandemic-scale threat to global biodiversity.

Unfortunately, our warnings were correct.

A roving sickness

Two decades on, bird flu is killing species from the high Arctic to mainland Antarctica.

In the past couple of years, bird flu has spread rapidly across Europe and infiltrated North and South America, killing millions of poultry and a variety of bird and mammal species. A recent paper found that 26 countries have reported at least 48 mammal species that have died from the virus since 2020, when the latest increase in reported infections started.

Not even the ocean is safe. Since 2020, 13 species of aquatic mammal have succumbed, including American sea lions, porpoises and dolphins, often dying in their thousands in South America. A wide range of scavenging and predatory mammals that live on land are now also confirmed to be susceptible, including mountain lions, lynx, brown, black and polar bears.

The UK alone has lost over 75% of its great skuas and seen a 25% decline in northern gannets. Recent declines in sandwich terns (35%) and common terns (42%) were also largely driven by the virus.

Scientists haven’t managed to completely sequence the virus in all affected species. Research and continuous surveillance could tell us how adaptable it ultimately becomes, and whether it can jump to even more species. We know it can already infect humans – one or more genetic mutations may make it more infectious.

At the crossroads

Between January 1 2003 and December 21 2023, 882 cases of human infection with the H5N1 virus were reported from 23 countries, of which 461 (52%) were fatal.

Of these fatal cases, more than half were in Vietnam, China, Cambodia and Laos. Poultry-to-human infections were first recorded in Cambodia in December 2003. Intermittent cases were reported until 2014, followed by a gap until 2023, yielding 41 deaths from 64 cases. The subtype of H5N1 virus responsible has been detected in poultry in Cambodia since 2014. In the early 2000s, the H5N1 virus circulating had a high human mortality rate, so it is worrying that we are now starting to see people dying after contact with poultry again.

It’s not just H5 subtypes of bird flu that concern humans. The H10N1 virus was originally isolated from wild birds in South Korea, but has also been reported in samples from China and Mongolia.

Recent research found that these particular virus subtypes may be able to jump to humans after they were found to be pathogenic in laboratory mice and ferrets. The first person who was confirmed to be infected with H10N5 died in China on January 27 2024, but this patient was also suffering from seasonal flu (H3N2). They had been exposed to live poultry which also tested positive for H10N5.

Species already threatened with extinction are among those which have died due to bird flu in the past three years. The first deaths from the virus in mainland Antarctica have just been confirmed in skuas, highlighting a looming threat to penguin colonies whose eggs and chicks skuas prey on. Humboldt penguins have already been killed by the virus in Chile.

A colony of king penguins.
Remote penguin colonies are already threatened by climate change. AndreAnita/Shutterstock

How can we stem this tsunami of H5N1 and other avian influenzas? Completely overhaul poultry production on a global scale. Make farms self-sufficient in rearing eggs and chicks instead of exporting them internationally. The trend towards megafarms containing over a million birds must be stopped in its tracks.

To prevent the worst outcomes for this virus, we must revisit its primary source: the incubator of intensive poultry farms.

Diana Bell does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

Read More

Continue Reading

Uncategorized

NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

One month after the inflation outlook tracked…

Published

on

NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

One month after the inflation outlook tracked by the NY Fed Consumer Survey extended their late 2023 slide, with 3Y inflation expectations in January sliding to a record low 2.4% (from 2.6% in December), even as 1 and 5Y inflation forecasts remained flat, moments ago the NY Fed reported that in February there was a sharp rebound in longer-term inflation expectations, rising to 2.7% from 2.4% at the three-year ahead horizon, and jumping to 2.9% from 2.5% at the five-year ahead horizon, while the 1Y inflation outlook was flat for the 3rd month in a row, stuck at 3.0%. 

The increases in both the three-year ahead and five-year ahead measures were most pronounced for respondents with at most high school degrees (in other words, the "really smart folks" are expecting deflation soon). The survey’s measure of disagreement across respondents (the difference between the 75th and 25th percentile of inflation expectations) decreased at all horizons, while the median inflation uncertainty—or the uncertainty expressed regarding future inflation outcomes—declined at the one- and three-year ahead horizons and remained unchanged at the five-year ahead horizon.

Going down the survey, we find that the median year-ahead expected price changes increased by 0.1 percentage point to 4.3% for gas; decreased by 1.8 percentage points to 6.8% for the cost of medical care (its lowest reading since September 2020); decreased by 0.1 percentage point to 5.8% for the cost of a college education; and surprisingly decreased by 0.3 percentage point for rent to 6.1% (its lowest reading since December 2020), and remained flat for food at 4.9%.

We find the rent expectations surprising because it is happening just asking rents are rising across the country.

At the same time as consumers erroneously saw sharply lower rents, median home price growth expectations remained unchanged for the fifth consecutive month at 3.0%.

Turning to the labor market, the survey found that the average perceived likelihood of voluntary and involuntary job separations increased, while the perceived likelihood of finding a job (in the event of a job loss) declined. "The mean probability of leaving one’s job voluntarily in the next 12 months also increased, by 1.8 percentage points to 19.5%."

Mean unemployment expectations - or the mean probability that the U.S. unemployment rate will be higher one year from now - decreased by 1.1 percentage points to 36.1%, the lowest reading since February 2022. Additionally, the median one-year-ahead expected earnings growth was unchanged at 2.8%, remaining slightly below its 12-month trailing average of 2.9%.

Turning to household finance, we find the following:

  • The median expected growth in household income remained unchanged at 3.1%. The series has been moving within a narrow range of 2.9% to 3.3% since January 2023, and remains above the February 2020 pre-pandemic level of 2.7%.
  • Median household spending growth expectations increased by 0.2 percentage point to 5.2%. The increase was driven by respondents with a high school degree or less.
  • Median year-ahead expected growth in government debt increased to 9.3% from 8.9%.
  • The mean perceived probability that the average interest rate on saving accounts will be higher in 12 months increased by 0.6 percentage point to 26.1%, remaining below its 12-month trailing average of 30%.
  • Perceptions about households’ current financial situations deteriorated somewhat with fewer respondents reporting being better off than a year ago. Year-ahead expectations also deteriorated marginally with a smaller share of respondents expecting to be better off and a slightly larger share of respondents expecting to be worse off a year from now.
  • The mean perceived probability that U.S. stock prices will be higher 12 months from now increased by 1.4 percentage point to 38.9%.
  • At the same time, perceptions and expectations about credit access turned less optimistic: "Perceptions of credit access compared to a year ago deteriorated with a larger share of respondents reporting tighter conditions and a smaller share reporting looser conditions compared to a year ago."

Also, a smaller percentage of consumers, 11.45% vs 12.14% in prior month, expect to not be able to make minimum debt payment over the next three months

Last, and perhaps most humorous, is the now traditional cognitive dissonance one observes with these polls, because at a time when long-term inflation expectations jumped, which clearly suggests that financial conditions will need to be tightened, the number of respondents expecting higher stock prices one year from today jumped to the highest since November 2021... which incidentally is just when the market topped out during the last cycle before suffering a painful bear market.

Tyler Durden Mon, 03/11/2024 - 12:40

Read More

Continue Reading

Trending