Connect with us

Stocks

Inspire adds two new actively managed faith-based ETFs

Impact investment firm Inspire Investing has expanded its suite of biblically responsible ETFs with the launch of a pair of actively managed funds targeting the large and mid-cap segments of the US equity market.
The post Inspire adds two new actively…

Published

on

Impact investment firm Inspire Investing has expanded its suite of biblically responsible ETFs with the launch of a pair of actively managed funds targeting the large and mid-cap segments of the US equity market.

Robert Netzly, CEO of Inspire Investing

Robert Netzly, CEO of Inspire Investing.

The Inspire Faithward Large Cap Momentum ETF (FEVR US) and Inspire Faithward Mid Cap Momentum ETF (GLRY US) have listed on NYSE Arca and come with expense ratios of 0.85%.

The funds are sub-advised by Faithward Capital, a Pennsylvania-based asset manager helping financial advisors and institutions align their investments with Christian values.

The ETFs utilize a dual screening process that first addresses matters of faith before filtering based on technical factors.

In the first part of this process, the initial universe of stocks is screened according to Inspire’s faith-based and sustainability requirements to identify companies which it describes as “businesses of blessing.”

Any company with operations linked to abortion, alcohol, gambling, tobacco, pornography, or human rights violations is excluded. Companies that promote or advocate for LGBT+ communities are also removed.

The remaining constituents are then assigned an ESG rating based upon Inspire Investing’s Impact Score methodology which covers several ESG categories including corporate governance, data security and privacy, environmental stewardship, innovation, labor practices, marketing ethics, political action, renewable energy, social impact, and supply chain. Impact Scores range from -100 to +100 and only firms with a score greater than zero will make it through to the next stage.

In the second stage of the process, Faithward Capital deploys a proprietary screening process that uses both technical and fundamental analysis to identify between 40 and 50 stocks that exhibit share price momentum and high growth potential based on financial health, earnings trends, valuation, risk, and relative strength.

The Inspire Faithward Large Cap Momentum ETF is derived from an initial universe of companies with market capitalizations greater than $10 billion, while the Inspire Faithward Mid Cap Momentum ETF is based on companies with market caps between $3bn and $10bn.

Robert Netzly, CEO of Inspire Investing, commented, “We have continued to see an increase in demand for faith-based investments, even in the midst of a pandemic. We are humbled to be able to launch two biblically responsible options with Faithward Capital for those investors looking to incorporate active management in their portfolios.”

Jay Peroni, Senior Portfolio Manager at Faithward Capital, added, “We are truly excited to partner with Inspire to launch these ETFs to the masses. Our team is thrilled to be able to better serve our clients using our active biblically responsible investment management strategies while also expanding the biblically responsible investing universe.”

The new launches bring the total number of biblically responsible ETFs offered by Inspire to eight, collectively housing around $650 million in assets under management.

Most recently, the firm introduced the world’s first actively managed faith-based ETF in July – the Inspire Tactical Balanced ESG ETF (RISN US). RISN invests in US large-cap stocks and contains a risk-management overlay that shifts into defensive assets when the equity market outlook is unfavourable.

The post Inspire adds two new actively managed faith-based ETFs first appeared on ETF Strategy.

Read More

Continue Reading

Economics

Why You Shouldn’t Worry About Costco Stock

The warehouse club’s shares have been falling, but investors have nothing to worry about.

Published

on

The warehouse club's shares have been falling, but investors have nothing to worry about.

The market crash has driven stocks into a bear market panicking many investors as strong companies with solid results see their shares tank. It's a market that seems to have no safe havens as the vague specter of inflation has cast a dark shadow over the entire market, but pandemic stocks, technology companies, and the entire retail sector.

Costco (COST) - Get Costco Wholesale Corporation Report has not been immune to the drop. Despite the warehouse club operating pretty much as it always has, steadily adding members while retaining existing members, the chain has seen its share price fall 22.83% in the past six months.

That's a big drop for a chain which has been a very steady stock, usually moving upward while also paying a dividend. Costco's share price drop, however, has nothing to actually do with the company's performance. Instead, the company has fallen victim to broad concerns about retail in general.

Target (TGT) - Get Target Corporation Report, for example, saw its shares lose over 25% in value after it reported first quarter results. The chain grew its same-store sales, which was impressive given that it had seen that metric rise by 22.9% in previous-year quarter. The retailer faltered when it came to profits as earnings were cut in half year-over-year due to rising costs and supply chain issue.

Never mind that Wall Street has taken Target's strength for weakness (making money and gaining customers under these conditions is impressive), Costco shareholders have even less to be worried about.

Ting Shen/Xinhua via Getty

Why Is Costco So Strong?

Retail stocks, including Target and Costco, have suffered due to rising prices (inflation), supply chain issues, and fears over consumer spending drops. These are real concerns, but Costco has a lot of protection from those issues. The warehouse club operates on a membership model. Its profits come largely from selling memberships, not on the goods its sells its members.

Costco offers members the promise of low prices in exchange for a membership fee. The company offers a limited selection to keep prices down and it has enormous bargaining power with suppliers.

It's possible that inflation will drive prices higher on some key Costco items, but they company can simply pass those increase on without adding a markup. That makes the chain a value proposition for shoppers as these factors impact all retailers.

Costco has been able to hold its own on gross margin, according to CFO Richard Galanti speaking during the company's second-quarter earnings call.

"Moving down to the gross margin line. Our reported gross margin in the second quarter was lower year over year by 32 basis points but up 5 basis points, excluding gas inflation," he said.

Basically, aside from gas -- which is generally cheaper at Costco than anywhere else -- the company maintained its margin. It also grew its same-store sales by 11.1% excluding gas while its income rose as well.

"Net income for the quarter came in at $1.299 billion or $2.92 per diluted share. Last year's second quarter net income came in at $951 million or $2.14 per diluted share," Galanti shared.

Membership Is Costco's Key Metric

 Unlike a traditional retailer, sales aren't the key metric for Target. Membership tells investors more about the health of the company than anything else. The warehouse club needs both retain members and add new ones.

 It has done that, according to Galanti.

"In terms of renewal rates, they continue to increase. At second quarter end, our U.S. and Canada renewal rate stood at 92%, up 0.4 percentage point from the 12-week earlier at Q1 end. And worldwide rate, it came in at 89.6%, up 0.6% from where it stood 12 weeks earlier at Q1 end," the CFO shared.

Costco has seen its renewal rates go up as more members auto-renew. The warehouse club has also seen more of its members opt for the higher-priced Executive Membership, " who, on average, renew at a higher rate than non-Executive members," Galanti shared.

Membership has been growing (as it steadily has) as well, according to the CFO.

In terms of the number of members at second quarter end, member households and total cardholders, total households was 63.4 million, up 900,000 from the 62.5 million just 12 weeks earlier; and total cardholders at Q2 end, 114.8 million, up 1.7 million from the 113.1 million figure 12 weeks ago. At second quarter end, paid Executive Memberships stood at $27.1 million, an increase of $644,000 during the 12-week period since Q1 end. Executive Members, by the way, represent now 42.7% of our total membership base and 70.9% of our total sales.

So, while Costco's share price has suffered due to broader concerns and general market panic, the chain's business has not suffered. In a terrifying environment for investors, you could argue that Costco's one of the safer bets as long as you're willing to be patient.

In the short-term, stock prices may not reflect actual business results. Over time, however, the warehouse club will go back to posting steady share gains while also paying a dividend (and perhaps offering a bonus special dividend).   

Read More

Continue Reading

Stocks

Hot Biotech Penny Stocks to Watch as Stocks Enter Bear Market 

Are these biotech penny stocks on your watchlist right now?
The post Hot Biotech Penny Stocks to Watch as Stocks Enter Bear Market  appeared first on…

Published

on

By

3 Hot Biotech Penny Stocks to Add to Your Watchlist With the Market Down 

Recently, biotech penny stocks have seen heightened bullish sentiment. Today, the emphasis on biotech stocks comes as the Monkeypox virus is seeing a resurgence in certain areas around the world. Today, the WHO confirmed 80 cases of the virus in 11 countries. And since then, investors have begun looking for biotech stocks that may be able to benefit. 

[Read More] Penny Stocks To Buy Now? Hot Monkeypox Stocks To Watch Today

In addition to this, we are also seeing heightened volatility with penny stocks and blue chips. This means that it is more important than ever to stay on your toes. Understanding what your trading strategy is and how you can best execute it is crucial in these market conditions.

If you are thinking about getting into penny stocks, then make sure to do your research first. There is a lot going on in the stock market, so researching and understanding all you can about penny stocks is essential to your success. With this in mind, let’s take a look at three biotech penny stocks to add to your watchlist right now. 

3 Biotech Penny Stocks to Add to Your Market Crash Watchlist 

  1. Immix Biopharma Inc. (NASDAQ: IMMX
  2. TherapeuticsMD Inc. (NASDAQ: TXMD
  3. Chimeric Inc. (NASDAQ: CMRX

Immix Biopharma Inc. (NASDAQ: IMMX) 

One of the bigger gainers of the day is IMMX stock. At EOD, shares of IMMX stock shot up by over 30%, with a 5% gain in after hours trading. And, in the past five day period, shares of IMMX have climbed by more than 50%.

While we do see many gains with penny stocks without news, today, Immix made an exciting announcement in premarket trading. The company stated that its IMX-110 drug demonstrated improved survival over the current approved drug, Trabectedin. It states that IMX-110 is part of what is expected to be a $6.5 billion market by 2030. 

“We are excited to see continued evidence of IMX-110 anti-tumor activity versus approved therapies. We believe this is a preview of anti-tumor activity to be demonstrated in our 2 clinical trials to be kicked-off in 2022: IMX-110 monotherapy, and IMX-110 in combination with anti-PD-1 tislelizumab.”

The CEO of Immix Bio, Ilya Rachman

Right now, there is quite a lot of bullish sentiment with biotech penny stocks. And, as a clinical stage biopharmaceutical company, Immix is at the center of this. While it is highly volatile IMMX stock could be worth adding to your list of penny stocks to watch. 

TherapeuticsMD Inc. (NASDAQ: TXMD) 

Another gainer of the day on May 20th is TXMD stock, which shot up by over 35%. In the past month, shares of TXMD stock have fallen by around 74%, which makes this gain much more substantial.

[Read More] Penny Stocks To Buy? Warren Buffett’s Bitcoin Bet, 3 Stocks To Watch

Today, the company announced that it received FDA approval for its Supplemental New Drug Application for Annovera. With this approval, the company will be able to produce 7,000 additional rings for the supply chain, which will be made available to customers by the second and third quarter of this year. 

“Today’s approval is an important milestone as it will allow us to more efficiently scale, manufacture, and consistently supply ANNOVERA to meet the increasing demand by women who want procedure-free, long-lasting reversible birth control.” 

The CEO of TherapeuticsMD, Hugh O’Dowd

Back in 2018, Annovera was approved by the FDA as a long-lasting, reversible, procedure-free birth control product. And since then, the company has worked hard to commercialize it as much as possible. With that in mind, do you think TXMD is a worthwhile add to your penny stocks watchlist or not?

Penny_Stocks_to_Watch_TherapeuticsMD

Chimeric Inc. (NASDAQ: CMRX) 

With an over 6.8% gain at EOD on May 20th, CMRX stock is another penny stock that investors are watching right now. In the past five days, we’ve seen a very steady gain with CMRX stock, pushing up by more than 20%, which is no small feat. And, this comes after a six month drop of over 60%.

The main reason for today’s gain with CMRX stock comes as fears surrounding an increase in Monkey Pox cases, are driving up biotech stocks. This includes Chimeric, which recently announced a deal with Emergent, to offer exclusive rights for its smallpox oral antiviral product known as Tembexa. 

And, given that Monkey Pox is a smallpox derivative virus, we see the major correlation between the two. With this new virus situation, there is a large demand increase for this vaccine. And while the fears that are comparing this virus to Covid-19 are somewhat unwarranted, there is a lot to consider. With this in mind, does CMRX deserve a spot on your buy list or not?

Penny_Stocks_to_Watch_Chimeric

Which Penny Stocks Are You Watching Right Now?

Finding the best penny stocks to buy is all about understanding where to look. While it can be difficult given the heightened volatility in the stock market right now, there are some ways to make it easier. The best course of action will always be to have a well-thought-out trading strategy on hand. 

[Read More] What to Know About Buying Penny Stocks on May 20th 

 This can help you to maximize your chance of profitability and increase your odds of not seeing losses. In addition, considering exactly what is going on in the stock market remains paramount to your success as an investor. So, as we continue to traverse this extremely volatile period, which penny stocks are on your watchlist right now?

[reblex id='29520']

The post Hot Biotech Penny Stocks to Watch as Stocks Enter Bear Market  appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

Read More

Continue Reading

Spread & Containment

Why I’m Not Worried About the Stock Market Crash

In the long run, the stock market always goes up (but it’s way more complicated than that).

Published

on

In the long run, the stock market always goes up (but it's way more complicated than that).

We're not living in 1929. It's important to remember that as we watch the stock market crash and our personal net worth take a big hit.

While that has certainly happened, it's important to note that the stock market isn't the economy. We're not on the cusp of the next Great Depression. Instead, we have a market that's spooked by rising inflation (i.e. stuff costing more) that's also struggling with supply chain issues caused by an unparalleled global pandemic.

Yes, many things cost more including basic needs like food and shelter, as well as near-basic needs likes cars and gas. But, while inflation has been real, that's not the full story of the U.S. economy.

We're also living at a time where the unemployment rate (3.6%) remains near historic low (where it most likely would be if jobs weren't so plentiful allowing some people to sit out of the labor market for a period). The labor picture has for a very rare time in American history titled in favor of workers.

This has led to jobs in the retail and service space which once paid minimum wage while offering minimal benefits to offer $15 an hour or more along with perks like free college tuition. That's not to say that these jobs even pay a living wage (it depends a lot upon where you live) but the situation for workers in these spaces has notably improved.

The economy has its struggles, but it's not a clear picture. High house prices for one person means a home that has gained a lot of value for someone else. And other issues -- like the high cost of gas and the shortage of new as well as used cars -- are tied to relatively short-term problems.

statista

But What About My Investments?

Stock markets crash. That's sometimes an indication of greater economic problems, but the U.S. stock market has never failed to recover its losses -- often in a fairly quick period. That's cold comfort as you see red in your portfolio, but if retirement (or whatever you plan to spend your invested money on) isn't now or in the next year or two, a "crash" is something expected that can be used to your advantage.

The first thing you should do is evaluate why you own the shares that you own. Has something changed about any of those companies because of the pandemic? Not has the share price gone down, but has anything changed about the company's long-term trajectory?

Short-term investors, or perhaps people who panic easily, have used Netflix's (NFLX) - Get Netflix, Inc. Report slight subscriber drop as a sign that the company has peaked. Do you believe that or do you see the streaming leader both returning to growth and better controlling its content costs?

Netflix had explosive growth during the pandemic. Would you have rather it added those customers at a pace that spread things out for Wall Street? Do you see people leaving the service for a rival or to start reading more?

The reality is that many high-quality companies have suffered major declines for reasons that have nothing to do with their business performance. Yes, the pandemic did create some false winner that won't be long-term successes, but that's a small number of companies (and many long-term investors avoided those companies because of that possibility.

Now Is the Time to Buy

The stock market has become a giant Marshalls filled with name brands at huge discounts. It may seem counterintuitive to buy while stocks are crashing, but isn't that the best time to buy? If your BMW dealer has too much inventory and offers a sale, that doesn't change the long-term value of owning a BMW.

And while buying can be a huge opportunity, the reality is that a market crash is not the time to sell (unless you truly believe you have a holding that's not a good long-term investment). Yes, a lot of high-fliers have fallen to earth, but that was true in 2008 as well and history has shown that holding and buying great companies when prices are low is how you get rich.

Daniel Kline is Managing Editor of TheStreet.com

Read More

Continue Reading

Trending