Connect with us

Spread & Containment

JPMorgan: 2 Stocks to Snap Up Now (And 1 to Avoid)

JPMorgan: 2 Stocks to Snap Up Now (And 1 to Avoid)

Published

on

Times right now are unprecedented. The COVID-19 pandemic, the overarching government responses, the social and economic shutdowns – all are putting extraordinary pressures on financial markets. From the sudden equity collapse that started in late February, to the bear market rally we’re experiencing now, investors simply haven’t got the usual market signals they rely on.

Covering the overall situation, JPMorgan chief of Equity Strategy Dubravko Lakos-Bujas points out, “The sharp ~30% recovery in S&P 500 from the Mar 23 trough, even as earnings expectations and macro outlook were steadily being revised lower by the street, has come as a surprise to many.” Lakos-Bujas also notes that government stimulative policies have matched the extraordinary conditions with equally extraordinary liquidity injections – and that the fiscal and monetary stimulus has put a floor in the equity markets.

Looking ahead, the analyst says, “[We] have been arguing that this unprecedented stimulus and liquidity boom will outlast the health crisis. Our valuation models imply that the equity risk premia remains attractive…”

In line with JPM’s official analysis of market risks, the firm’s stock analysts have been picking possible winners – and losers. We’ve looked at three of those stocks through the lens of the TipRanks database, to find out what makes two of them compelling buys – and what makes the third a stock to avoid.

Federated Hermes (FHI)

We’ll start with a financial company. Federated Hermes is an asset management company, controlling an equity portfolio worth $68 billion and holding $606 billion in assets under management. AUM hit a record in the first quarter of this year.

While Q1 2020 saw EPS fall – the COVID-19 epidemic has been painful across the board – the 63 cents reported was still up 16% year-over-year. The company credits long-term assets for 56% of quarterly revenue.

Solid earnings support a reliable dividend. FHI has grown the payment slowly over recent years, and currently pays out 27 cents per share quarterly. At $1.08 annualized, this makes the dividend yield 5.1%, or more than double the average yield among peer financial sector stocks.

This company’s strong position has brought it to JPM’s attention. Analyst Ken Worthington upgraded the JPM view on FHI from Neutral to Buy. He set a $27 price target for the end of 2020, suggesting an upside potential here of 28%. (To watch Worthington’s track record, click here)

In his comments on the stock, Worthington wrote, “…Federated could keep more of the earnings driven by the massive increase in money market fund assets. We see the rest of Federated's business performing adequately and better than most, leveraging some good positioning, solid performance and its strengthening brand in ESG.”

Overall, Wall Street is cautious on FHI shares. The analyst corps has delivered 2 Buy ratings – but 4 Holds, making the analyst consensus rating a Moderate Buy. The average price target is $23.20, which indicates a modest upside of 10%. (See Federated Hermes stock analysis on TipRanks)

AbbVie, Inc. (ABBV)

Next up is a pharmaceutical company, one of Big Pharma’s major names. Pharmaceutical and biotech companies are known for their combination of high risk and high reward potential. The rewards and risks are both typified in Humira, the company’s successful immunosuppressive anti-inflammatory drug. Humira is expected to bring in ~40% of AbbVie’s 2020 drug division revenues – but with an expired patent, competition is growing. Last year, Humira accounted for 50% of drug revenues.

AbbVie is fortunate to have a strong product line-up, with new drugs Skyrizi and Rinvoq beating the expectations on their launches and projected to bring in $4.5 and $5 billion in revenue, respectively, by 2025.

The company saw solid earnings in 2019, and in Q1 2020, despite the coronavirus disruptions to economic activity, ABBV reported a substantial sequential earnings increase. EPS grew 9.5% to $2.42, and beat the forecast 6.6%.

Earnings growth has allowed ABBV to keep up a reliable dividend, one of the best in the pharmaceutical sector. The company has increased its dividend payment four times in the past three years, including in Q1 2020. The current payment is $4.72 annualized, with quarterly payments of $1.18. The yield is nearly 5.2%, which simply blows away the healthcare sector average yield of 1.75%.

Chris Schott, in his note on ABBV for JPM, sees a clear path forward for the company. He writes, “On the core portfolio, we anticipate ~9% annual growth in the company’s $30bn non-Humira business led by … Skyrizi and Rinvoq... ABBV’s pipeline represents another potential upside driver with little value being assigned to the company’s mid-stage assets… we see the company’s dividend as highly sustainable…”

In line with his comments, Schott initiates coverage of ABBV for JPM with a Buy rating. His $105 price target implies a healthy upside potential of 15%. (To watch Schott’s track record, click here)

The Wall Street view of ABBV shares is almost as bullish as Schott’s. The Moderate Buy consensus rating is based on 10 reviews, including 7 Buys and 3 Holds. Shares in this pharma giant are selling for $91.20, and the average price target of $101.13 suggests it has room for 11% growth this year. (See AbbVie stock analysis on TipRanks)

Quidel Corporation (QDEL)

Last up is a big player in the diagnostic healthcare segment. Quidel, and American company based in San Diego, operates worldwide. Earlier this month, Quidel scored a major coup: it received authorization from the US FDA, the regulatory body for the health care and pharmaceutical sector, to produce a COVID-19 antigen test.

This authorization shows up Quidel’s strength in the ‘Age of Corona:’ the company produces diagnostic tests, and those are in high demand. Such high demand that, while the markets generally turned bearing in February, QDEL shares started climbing – bringing year-to-date gains to 148%.

With earnings up and an approved authorization for development and production if a COVID-19 diagnostic test, it would seem that QDEL is primed for gains. And yet JPM says to sell this stock. Why the bearish call?

In short, Quidel’s recent steep share price gains have overvalued this stock. As 5-star analyst Tycho Peterson says in his review of QDEL shares, “…while not ruling out the COVID-19 antigen testing opportunity, we believe it may be overstated due to the nascent market, scale-up of competitive tests and potential for avaccine in 12-18 months, leaving us skeptical of the opportunity implied by the stock move.”

Peterson is careful not to blast the company, but he does downgrade his stance of QDEL from Neutral to Sell. His $158 price target projects a 15% downside for the shares this year. (To watch Peterson’s track record, click here)

The market’s collective wisdom agrees. QDEL has a Moderate Sell consensus rating, based on 2 Holds and 1 Sell rating. At $124, the average price target implies a 33% downside from the current share price of $186.05. (See Quidel 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.

The post JPMorgan: 2 Stocks to Snap Up Now (And 1 to Avoid) appeared first on TipRanks Financial Blog.

Read More

Continue Reading

International

A Climate Of Fear

A Climate Of Fear

Authored by James Gorrie via The Epoch Times,

The medical, media, and political elites’ focus has shifted from facts…

Published

on

A Climate Of Fear

Authored by James Gorrie via The Epoch Times,

The medical, media, and political elites’ focus has shifted from facts to fomenting and magnifying fear.

In Franklin D. Roosevelt’s first inaugural address in 1933, the new president told a nation in the depths of the Great Depression that “the only thing we have to fear is fear itself.”

Those words were true and rightfully spoken at that time. Roosevelt knew that fear is a powerful emotion that limits our ability to reason, act wisely, and work together. It’s also an emotion that’s contagious and not easily diminished or dissipated.

The Power of Fear to Fragment Society

Unfortunately, Roosevelt’s words are even more applicable today.

On a personal level, decisions made under the emotional duress of fear are rarely the best ones and often the worst. Fear can bring out the best in us, but can often bring out the worst. That’s more likely to occur the more fragmented a society becomes. Fear among different groups of people creates an us-versus-them context in the minds of individuals, or even an “every-man-for-himself” attitude, which pits one group against another or even each of us against each other.

Now elevate that sense of fear to the level of the national electorate. A people or a nation that's paralyzed with fear makes rash decisions based on their fears of what could happen, not necessarily what the current situation truly is. When that happens, a society can quickly degenerate, where our base instincts determine our behavior in a law-of-the-jungle social environment.

Roosevelt knew this, as do our leaders today. The difference is that today, rather than seeking to dispel fear, our political and media elites create it, expand it, and revel in it. Rather than promote hope and strength of character in us, in a Roosevelt- or even a Reagan-like fashion, they traffic in fear and its fellow traveler social division in order to fragment our society.

It’s the old but effective divide-and-conquer strategy, and sadly, it works far too well. The mechanism for divide and conquer is the constant drumbeat of the Big Lie, which is also a tried and true method for controlling society. It was first practiced and perfected by Joseph Goebbels in Nazi Germany using the mass media, but has been successfully used by the USSR and every other communist and dictatorial regime in the world since the 1930s.

Social Media Is Magnitudes More Powerful Than Legacy Media

The difference today is the massive and pervasive presence of social media. Its reach and social saturation throughout society are magnitudes greater than have ever been possible before. What’s more, our political and media elites create and exaggerate fear without even mentioning the word. “Fear” is driven into our collective psyches under the guise of our government keeping us “safe,” while demonizing anyone who challenges that narrative.

The repetition by the media and the pharmaceutical industry of how to stay safe from COVID-19 always involves more drugs and less freedom. That’s by design. The elites that run society know that once enough of our friends, neighbors, coworkers, and others with whom we interact become more fearful than rational, they’re easily manipulated and divided into confrontational groups.

Does that sound like a conspiracy theory?

Yes, it probably does, but it’s also how the Stasi, the East German security agency, turned virtually every neighbor into an informant. The result was that people were fearful of doing anything that could be construed as being against the communist East German government. In light of what we’ve been through the last three years—and what looks to be on the horizon—the conspiracy theory accusation has lost its sting.

From Conspiracy Theory to Fact

Recall, for example, how those who received the COVID-19 vaccine turned against those who remained unvaccinated. The contrast and social division couldn’t have been clearer or more deliberate. Vaccinated people were characterized by the media and government agency spokespeople as selfless, smarter, and better human beings than those who refused the vaccine.

On the flip side, the “anti-vaxxers,” as they came to be called, were publicly derided by the medical, pharmaceutical, media, and government elites. They were accused of being low-intelligence conspiracy theory nuts who wouldn’t or couldn’t “follow the science,” even when they followed the science from experts such as Robert Malone, one of the inventors of the mRNA technology, and other medical doctors in Europe and Asia, including former Pfizer Vice President Dr. Michael Yeadon, all of whom were de-platformed from mainstream media and social media.

In fact, any “alternative” remedy to the experimental and highly dangerous mRNA vaccines, such as ivermectin, was summarily dismissed, even though nations that used ivermectin had the lowest mortality rates. As noted above, many media personalities and even medical experts with contrary opinions were silenced, shamed, and shunted into professional oblivion, being substituted by compliant replacements. That practice continues to this day, with Russell Brand being the latest example of being de-monetized by YouTube.

In light of vaccine injuries and deaths, and the staggering profits that vaccines have delivered to the pharmaceutical industry, the number of people who believe the mainstream media, the government, and in the vaccines, is much smaller today than three years ago.

Conspiracy theory narratives have become conspiracy facts.

The Endgame of Fear

So, what’s the endgame of promoting and enforcing a climate of fear throughout society?

It’s simple. Fearful people are far more compliant and, therefore, are easily controlled, pacified, monitored, and dehumanized. Next thing you know, we’ll all be eating bugs and liking it.

The antidote to fear, of course, is freedom and access to real and contrary information so that each person can make up his or her own mind. The encouragement, enablement, and empowerment of private individuals to exercise informed judgment about their health and their livelihoods are also part of the solution. A vibrant, thinking, and active society of informed individuals isn't nearly as vulnerable to the polarizing climate of fear our elites are foisting upon us.

In short, to live in fear is to live in bondage.

Tyler Durden Sat, 09/30/2023 - 20:50

Read More

Continue Reading

International

COVID-19 Vaccine Found In The Hearts Of Dead People: Study

COVID-19 Vaccine Found In The Hearts Of Dead People: Study

Authored by Zachary Stieber via The Epoch Times (emphasis ours)

COVID-19 vaccine…

Published

on

COVID-19 Vaccine Found In The Hearts Of Dead People: Study

Authored by Zachary Stieber via The Epoch Times (emphasis ours)

COVID-19 vaccine was detected in patients who died within a month of vaccination, according to a new study.

COVID-19 vaccines in Massachusetts in a file image. (Joseph Prezioso/AFP via Getty Images)

U.S. researchers analyzed tissue samples from the autopsies of 25 people, including 20 who were vaccinated.

Samples from the hearts of three patients, all of whom died within 30 days of a Pfizer shot, tested positive for messenger ribonucleic acid (mRNA).

Eight bilateral axillary lymph node samples, from people who died within 30 days of a Moderna or Pfizer vaccine, also tested positive. The companies' shots utilize mRNA.

The research shows "the vaccine can persist for up to 30 days, including in the heart," Dr. James Stone, with the departments of pathology at Massachusetts General Hospital and Harvard Medical School, told The Epoch Times via email.

The study was published by npj Vaccines. Authors declared no conflicts of interest. They said the research was supported by Massachusetts General Hospital, which is in Boston.

In testing of heart and bilateral axillary lymph node tissues from other vaccinated people who died, no vaccine was detected.

Additionally, no vaccine was detected in the liver, spleen, or mediastinal lymph nodes—vaccine was detected in the liver and spleen in preclinical rodent studies before—nor was any detected in tissues from the unvaccinated patients.

The Pfizer and Moderna vaccines are known to cause myocarditis, a form of heart inflammation that can result in death.

The people who had mRNA detected in the heart did not have myocarditis, though they did have detectable heart injuries, researchers found.

The researchers said they believed the heart injuries stemmed from underlying diseases and not the vaccines.

"There is no indication as yet that the vaccine in the heart is causing any problems in these patients; neither the causes of death nor the causes of the myocardial injury were linked to the vaccines in that study," said Dr. Stone, one of the authors of the paper.

A health care worker prepares a dose Pfizer/BioNTEch COVID-19 vaccine at The Michener Institute, in Toronto, Canada, on Dec.14, 2020. (Carlos Osorio/POOL/AFP via Getty Images)

That position was challenged by Dr. Clare Craig, a British pathologist who reviewed the research.

"The vaccine should not have been there. There was evidence of heart damage. Those three people are now dead," Dr. Craig told The Epoch Times in a message.

She said the researchers were setting too high of a bar for causality.

"At postmortem if there is significant narrowing of the coronary arteries then heart damage is attributed to it on the balance of probabilities. Here this is a clear cut association, an unusual picture of myocardial injury, and a failure to call it out for what it is," Dr. Craig said.

More on Research

The tissues were collected from autopsies performed between January 2021 and February 2022 at the Massachusetts General Hospital. Researchers excluded tissues from some dead people, including from patients who had no clear history of vaccination or non-vaccination and those who had a documented prior COVID-19 infection.

The researchers wanted to test the tissue for vaccine in light of research that has found both spike protein and mRNA persisting in axillary lymph nodes and blood for weeks or even months after vaccination. The testing would help "gain a better understanding of the biodistribution and persistence of SARS-CoV-2 mRNA vaccines," they said. SARS-CoV-2 is the virus that causes COVID-19.

Researchers ended up with tissues from 20 vaccinated patients, including six who received one dose, 12 who received two doses, and two who received three doses. They also formed a control group of five unvaccinated patients.

Six bilateral axillary lymph node samples were available for people vaccinated with Moderna's shot. Two tested positive for the vaccine. Thirteen were available for people vaccinated with Pfizer's shot. Six tested positive for the vaccine.

Overall, of the 11 bilateral axillary lymph node samples from patients who died within 30 days of a shot, eight tested positive. None of the samples from patients who died beyond 30 days of vaccination tested positive.

Researchers also examined samples from each of the vaccinated people from the cardiac left ventricle and cardiac right ventricle. Of those, four samples tested positive across three patients. These were the three who received Pfizer's shot within 30 days of dying. The samples also tested negative for COVID-19.

Vaccine was not detected in any of the unvaccinated people.

The vaccinated patients were on average older, with a mean age of 64 compared to 57. A higher percentage—55 percent to 20 percent—had recent heart injury.

Read more here...

Tyler Durden Fri, 09/29/2023 - 18:20

Read More

Continue Reading

International

T2 Biosystems (NASDAQ: TTOO) Breaks Ground: FDA Clearance, Market Trends, and Healthcare Impact

Shares of T2 Biosystems (NASDAQ:TTOO) are soaring up over 20% today on the heels of receiving a 510(k) clearance for its T2Biothreat from the FDA. This…

Published

on

Shares of T2 Biosystems (NASDAQ:TTOO) are soaring up over 20% today on the heels of receiving a 510(k) clearance for its T2Biothreat from the FDA. This unique test directly detects six biothreat pathogens from a blood sample.

Spotting Biothreats Faster:

T2Biothreat Panel is a game-changer, being the first and only FDA-approved product that can spot these critical biothreat pathogens simultaneously. T2 Biosystems proudly stands as the first U.S. company to achieve this milestone, reshaping the field of biothreat detection.

Big Investor Sells:

Interestingly while celebrating this achievement, a significant investor, CR Group (CRG), decided to sell off a substantial chunk of shares. This sell-off, totaling 24.81 million shares, took place between Sept. 20 and Sept. 26. The timing of this sell-off alongside the FDA clearance raises some eyebrows.

Subscribe to Microcapdaily.com Right Now by entering your Email in the box below.

Subscribe to Our 100% Free Penny Stock Newsletter. We Have Something Big Coming!

New CDC Guidelines:

Regardless of CR Group selling, there still appears to be a massive opportunity according to many retail investors. Following new CDC guidelines, the U.S. government now mandates that all hospitals in the country must adopt rapid testing protocols to combat the sepsis pandemic by 2026, or risk losing Medicare funding.

Buying opportunity of the year!!! Update
byu/den1183 inTTOOstock

T2 Biosystems stands as the exclusive FDA-cleared product capable of achieving 100% accurate sepsis detection within 3 to 5 hours. Anticipating widespread adoption of T2 instruments in hospitals, the CEO foresees significant revenue generation, potentially reaching $1.3 billion annually, given the mandate.

This development drastically alters the landscape, potentially influencing the stock’s trajectory positively. With the ongoing surge in manufacturing hires and likely acceleration in orders, coupled with potential government contracts or international sales, many beleive T2 Biosystems presents an undervalued opportunity for investors.

What Borrowing Costs Tell Us:

Another interesting indicator to look at is the cost to borrow (CTB) fee. In terms of TTOO’s case, the stock has seen a massive surge in CTB fees, indicating a high demand from short sellers. When compared to the average CTB fee for other stocks, it’s pretty drastic. While this is typically not a very positive sign, retail investors seem to be buzzing with interest, given there also could be a potential short squeeze if enough buying comes in to trap the shorts.

Better News for Patients:

But let’s not forget the real impact and that’s what TTOO can do for patients. @ChengKeki a user from Twitter also shared an article about Butler Memorial Hospital and their approach to Sepsis. The hospital came up with a 2 step approach to expedite patient care.  They’re utilizing the Beckman Coulter automation line to identify changes in a person’s blood cells that might indicate the development of sepsis. Which apparently has only been used in Europe and they’re the first in the US with the technology. Then shortly after, they use T2 Biosystems panels that as you know, quicken the process from 36 hours, to just 3-5 hours.

Catching sepsis quickly is crucial because it’s a life-threatening condition that rapidly progresses throughout your body and can lead to death if not promptly diagnosed and treated. Sepsis occurs when the body responds improperly to an infection, causing widespread inflammation and potentially damages multiple organ systems. Early detection allows for immediate medical intervention.

Conclusion:

T2 Biosystems is hitting major milestones, not only in the market but in improving critical healthcare processes. The company is also a major hit with retail investors and continues to trade an astronomical amount of shares daily, the current average is ~115M shares. The FDA approval and its implications, along with the positive shift in sepsis diagnosis, showcase T2 Biosystems’ growing role in healthcare. Keep an eye on how this progresses—it’s exciting for both investors and patients alike.

We will update you on TTOO when more details emerge, subscribe to Microcapdaily to follow along!

Subscribe to Our 100% Free Penny Stock Newsletter. We Have Something Big Coming!

Picture by jarmoluk from Pixabay

 

The post T2 Biosystems (NASDAQ: TTOO) Breaks Ground: FDA Clearance, Market Trends, and Healthcare Impact first appeared on Micro Cap Daily.

The post T2 Biosystems (NASDAQ: TTOO) Breaks Ground: FDA Clearance, Market Trends, and Healthcare Impact appeared first on Micro Cap Daily.

Read More

Continue Reading

Trending