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The Safest Warehouse Stocks to Store Your Money

Investing is all about balancing risk with potential reward. Those who want to lower risk as much as possible can do so by investing in warehouse stocks.
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Investing is all about balancing your risk with your potential reward. Some investors love buying stocks that have incredible potential. They want to find companies with tons of room to grow. This usually leads to outsized returns. However, there are downsides to these types of stocks. If these companies don’t meet investors’ expectations, the stock price can plummet. This means that they are very high risk. On the other hand, some investors want to lower their risk as much as possible. They can do this by investing in stable industries, such as warehouse stocks. There are tons of safe industries that should still produce a decent return.

Since the COVID-19 pandemic, the commercial real estate industry has undergone some extreme changes. Before jumping into the best warehouse stocks to buy, let’s examine the state of the overall commercial real estate market.

The State of Commercial Real Estate

In commercial real estate, there are four main categories. These categories are office space, industrial, multi-family rentals and retail. Industrial real estate is what we are going to focus on in this article. The COVID-19 pandemic impacted all of these categories in very different ways. However, CBRE, the largest commercial real estate company in the United States, has a few predictions for 2022.

According to CBRE, the industrial sector has been doing incredibly well since the pandemic. This is because COVID-19 created a massive need for eCommerce. People weren’t allowed to leave the house so they needed to buy things online. Companies like Amazon needed a lot more warehouses to meet the growing demand. This made industrial real estate incredibly valuable. CBRE states that third-party logistics operators are beginning to dominate the sector.

Additionally, COVID-19 has created a wide range of supply chain issues. Just about every single company had challenges with its supply chain in 2021. Due to this, many companies are rethinking how they manage their supply chains. This will also likely lead to an increased need for industrial real estate.

Warehouse Stocks to Buy

The future certainly looks bright for warehouse stocks. With that said, let’s take a look at four of the best warehouse stocks to buy.

NOTE: I’m not a financial advisor and am just offering my own research and commentary. Please do your own due diligence before making any investment decisions.

Prologis (NYSE: PLD)

Prologis is a real estate investment trust (REIT). A REIT is a company that owns and operates real estate. It then earns a profit from leasing its buildings. In total, Prologis owns 4,675 buildings. This equates to 994 million square feet around the world. When finding tenants to lease to, it focuses on two main categories: business-to-business and retail/online fulfillment. It also leases to some of the world’s top logistics companies. This includes Amazon, FedEx and UPS.

One thing to note is that, in Q3 2021, Prologis’ occupancy rate was 96.6%. This is unprecedented in the industry. It means that 96.6% of Prologis’ buildings were rented out. CEO Hamid R. Moghadam stated that “space in our market is effectively sold out.” Due to this, CFO Thomas Ollinger believes that Prologis’ earnings potential is unrivaled. He also believes that the positive outcome of this occupancy rate won’t even be noticeable for 18+ months.

In 2020, Prologis posted a record year. It reported $4.74 billion in revenue as well as a net income of $1.48 billion. More recently, in Q3 2021, it posted revenue of $1.27 billion and a net income of $723.54 million. Despite its success in 2020, these Q3 2021 numbers were up 10.21% and 139% respectively.

Prologis stock was up approximately 60% in 2021. It is also up 193% over the past five years. On top of this strong performance, Prologis is also a good candidate for dividend investors. Right now, Prologis pays a dividend of 1.65%. It has a history of increasing this dividend over time. Since 2018, Prologis has a dividend CAGR of 10%. This beats the industry standard by 2%.

FedEx Corporation (NYSE: FDX)

FedEx is one of the world’s largest logistics and transportation companies. According to Transport Topics, FedEx owned 110 warehouses in 2020. This equates to 30.7 million square feet of warehouse space. It also makes FedEx one of the top warehouse stocks to buy.

In FY Q3 2021, FedEx reported $23.47 billion in revenue as well as $1.04 billion in net income. This revenue was an increase of 14% year-over-year (YOY) while net income was down 14%. During the most recent earnings report, FedEx CEO, Frederick Smith highlighted the company’s resiliency. In Q3 2021, FedEx had to overcome a challenging labor market, higher transportation costs, and higher wages. Since FedEx has 477,000 employees, these are not small expenses. Despite this, there was only a mild decrease in net income from Q2.

If you are looking for a safe company to invest money with then FedEx is a great option. It’s also a good candidate for dividend investors. It currently has a dividend yield of 1.14%.

FedEx stock was up 7% in 2021 and is up 41% over the past five years.

Ryder Systems Inc (NYSE: R)

Ryder Systems is one of the world’s leading logistics and transportation companies. According to Transport Topics, Ryder had 328 warehouses in 2020. This equates to 56.4 million square feet of warehouse space. Ryder also boats a fleet of 235,000 commercial vehicles.

As I stated, eCommerce has been a growing trend in commercial real estate for years. However, it was greatly accelerated due to the COVID-19 pandemic. Ryder is doing its best to capitalize on this trend by making strategic acquisitions. Most recently, it acquired Whiplash, a provider of omnichannel fulfillment and logistics services. This acquisition will help Ryder expand its e-fulfillment network. By acquiring Whiplash, Ryder improved its technology and absorbed a new portfolio of clients. In total, Whiplash had 250 clients and 19 warehouses.

Ryder also recently purchased Midwest Warehouse & Distribution System. This acquisition adds an additional 17 warehouses to Ryder’s arsenal. With these two acquisitions, Ryder is now capable of delivering anywhere in the U.S. within two days. It can deliver to 60% of the U.S. within one day.

In Q3 2021, Ryder reported revenue of $2.46 billion and a net income of $138.05 million. It also currently pays a dividend of 2.97%.

Ryder System’s stock was up 16% in 2021 and is up 1.35% over the past five years.

Warehouse Stock ETFs

When it comes to finding warehouse stocks, it’s a little difficult to narrow them down. For example, there are logistics companies like FedEx and UPS that own warehouses. There are also commercial real estate companies whose entire business is owning warehouses. Last, there are companies like Amazon. Amazon is an eCommerce company but it is also one of the biggest owners of warehouses in the United States.

Due to the number of different types of warehouse stocks, it might be a good idea to consider an exchange-traded fund (ETF). It’s fairly easy to find different types of real estate ETFs. This helps you diversify your portfolio because an industrial real estate ETF owns lots of different warehouse stocks. There are a few different ETFs that you can choose from. However, one good place to start is with the Pacer Benchmark Industrial Real Estate ETF.

I hope that you’ve found this article valuable when it comes to finding the safest warehouse stocks to store your money. As usual, please base all investment decisions on your own due diligence and risk tolerance.

The post The Safest Warehouse Stocks to Store Your Money appeared first on Investment U.

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Government

Pfizer Inc (NYSE: PFE) To Acquire Global Blood Therapeutics For $5 Billion

According to sources familiar with the matter, the Wall Street Journal reported that Pfizer Inc (NYSE: PFE) was in advanced discussions to acquire pharmaceutical…

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According to sources familiar with the matter, the Wall Street Journal reported that Pfizer Inc (NYSE: PFE) was in advanced discussions to acquire pharmaceutical company Global Blood Therapeutics (NASDAQ: GBT) for $5 billion.

Pfizer, too, acquired Global Blood Therapeutics 

Pfizer wants to close a deal soon, but there are still other interested parties, according to the article.

Global Blood Therapeutics, which manufactures Oxbryta, the blood disorder medication, saw its shares jump 44%  on Friday afternoon to a two-year high. As of Thursday’s closing, the company’s market cap was $3.12 billion.

A spokesman for Global Blood stated the company does not “comment on market rumors or speculation,” while Pfizer declined to respond on the matter.

With plenty of cash left over after selling its COVID-19 vaccine, New York-based Pfizer is searching for deals that may generate billions of dollars annual sales by 2030.

Its $11.6 billion acquisition of migraine medication manufacturer Biohaven Pharmaceutical Holding (NASDAQ: BHVN) in May was the most recent in a series of purchases that also included Trillium Therapeutics and Arena Pharmaceuticals in recent years.

Oxbryta received approval last year for sickle cell disease management 

In 2019, the US government approved Global Blood’s Oxbryta to manage sickle cell disease in individuals aged 12 and over. The oral medication was approved in December 2021 to treat the illness in younger children. The drug’s sales increased by almost 50% to $194.7 million in 2021.

After a gloomy start to the calendar year, when a lack of significant purchases and clinical-stage treatment failures lowered investor morale and restricted funding, the biotech dealmaking pace has recently picked up again.

Also, Amgen Inc (NASDAQ: AMGN) also decided to purchase ChemoCentryx Inc on Thursday for $3.7 billion to obtain access to a possible breakthrough medication for inflammatory illnesses. AstraZeneca’s $39 billion acquisition of Alexion Pharmaceuticals in 2020 has put the realm of immune diseases in the limelight. The deal, which was announced before trading opened, will also give the corporation control of at least two investigational immune disorders medicines.

Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. While reading this article one must assume that we may be compensated for posting this content on our website.

The post Pfizer Inc (NYSE: PFE) To Acquire Global Blood Therapeutics For $5 Billion appeared first on Wall Street PR.

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Science

AEMD: Positive Results in a Range of Conditions, Including COVID-19 & Monkey Pox

By M. Marin
NASDAQ:AEMD
READ THE FULL AEMD RESEARCH REPORT
Expanding the Potential Indications for Hemopurifier Treatment
Aethlon Medical’s (NASDAQ: AEMD)…

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By M. Marin

NASDAQ:AEMD

READ THE FULL AEMD RESEARCH REPORT

Expanding the Potential Indications for Hemopurifier Treatment

Aethlon Medical's (NASDAQ: AEMD) clinical trials are moving forward and expanding, as AEMD continues to demonstrate the effectiveness of its lead product, the Aethlon Hemopurifier®, in a broad range of viruses and conditions in single patient emergency use cases and in in vitro analysis, including COVID-19 and various variants and Monkey Pox, among others. The Aethlon Hemopurifier® is being studied in a severe COVID-19 clinical trial under the company's open IDE (Investigational Device Exemption) for life-threatening viral infections.

The safety and feasibility of the Hemopurifier is being evaluated in an Early Feasibility Study (EFS) that will enroll up to 40 COVID-19 ICU patients. The first patient was enrolled in this study in June 2022 and has completed the Hemopurifier treatment. AEMD has nine fully activated hospitals that are actively screening patients for the trial.

In addition to this study, the Hemopurifier has demonstrated positive results in two severely ill patients under individual emergency use and in in vitro analysis. The Hemopurifier has produced positive results in binding seven variants of the SARS-CoV-2 (severe acute respiratory syndrome coronavirus 2) virus in vitro, as discussed in an article1  that AEMD's CEO Dr. Charles J. Fisher Jr. and the company's Chief Medical Officer Dr. Steven LaRosa contributed to.

The company is also conducting a study of the impact of the ...

Full story available on Benzinga.com

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Economics

Where Are Interest Rates Headed? Is The Fed Correct Or The Eurodollar Curve?

Where Are Interest Rates Headed? Is The Fed Correct Or The Eurodollar Curve?

Authored by Mike Shedlock via MishTalk.com,

The Eurodollar curve…

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Where Are Interest Rates Headed? Is The Fed Correct Or The Eurodollar Curve?

Authored by Mike Shedlock via MishTalk.com,

The Eurodollar curve implies four quarter-point cuts are on the way starting in 2023. The Fed believes otherwise. Let's discuss stock market implications.

Data from CME and Fed via Wall Street Journal.

Eurodollar Curve

The eurodollar curve has nothing to do with euros or dollars. Rather it is an interest rate curve and one of the world's most widely traded futures.

After peaking at about 3.9% this year, eurodollar betters believe the Fed will then cut rates all the way down to 2.8%. 

Five Not-Quite-Impossible Things the Market Believes

Wall Street Journal Contributor James Macintosh discussed the above chart in Five Not-Quite-Impossible Things the Market Believes

  1. Inflation is transitory. 

  2. The Fed realizes this in time.

  3. The jobs market cools enough to slow wage rises. 

  4. But not so much it means falling household spending.

  5. So consumer spending rises in real terms. 

In reference to the led chart, Macintosh says "The first assumption is the hardest to believe."

I disagree. The hardest thing to believe is the overall goldilocks scenario and that the current rally makes any sense at all. 

Inflation may easily come down if the Fed tightens too much too fast causing a severe recession. What would that do to corporate profits? 

But assume otherwise, that inflation does not come down more. What would that do to corporate profits? 

While any of the first three points may easily be correct, the combination of all five being correct and that stocks will rise in a goldilocks scenario is what I find hard to believe.

Is the Market Forward Looking?

Goldilocks proponents will tell you that the market is forward looking. 

The market isn't forward looking and never was. It is a coincident indicator of current sentiment, wildly wrong at major turns.

If the market was forward looking, what precisely was it looking forward to at the November 2007 peak with recession starting the next month? 

What was it looking forward to at the 1929 peak, the 1933 bottom, the 2009 bottom or any other top or bottom?

The Fed Will Hike Until It Breaks Something

I believe the eurodollar curve is more likely to be correct than the Fed. When has the Fed gotten much of anything correct?

The eurodollar view has two ways to win. The first is the Fed actually does tame inflation to the degree that it wants.

That's possible in a severe enough recession. And the global picture is easily weak enough for that to happen.

The second way the eurodollar curve might be correct is if the Fed breaks the credit market. 

The Fed would immediately reverse course, regardless of inflation, should that happen. 

Neither a credit event nor strong recession would be good for the stock market.

The least likely thing is that the Fed achieves a goldilocks soft landing. Yet, assume that happens. 

Macintosh says, and I agree, "The bull case that stocks and corporate bonds are pricing requires the combination of low joblessness and wage rises to allow spending to rise faster than inflation even after pandemic savings run out. But not so much faster that it hits capacity constraints and accelerates inflation."

The problem with goldilocks is stocks are priced so much beyond perfection that they may decline anyway. 

Globally Speaking 

  1. China Does Surprise Rate Cut to Help Its Economy, But It Won't Work

  2. German Costs to Ship by Barge are up Twenty Times and May Soon Be Impossible

  3. UK Average Electricity Cost Will Soar to $5,370 Per Year By 2023

  4. US Industries Are Buckling Under Pressure of Surging Electricity Costs

Good luck with goldilocks, especially with the Fed still hiking. 

*  *  *

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Tyler Durden Wed, 08/17/2022 - 09:45

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