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

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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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The metaverse is real: Zuck’s ‘incredible’ photorealistic tech wows crypto twitter

Often roasted for his metaverse tech demos, Zuckerberg appears to have blown away internet users with his latest avatar tech.
While…

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September 28, 2023

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Often roasted for his metaverse tech demos, Zuckerberg appears to have blown away internet users with his latest avatar tech.

While critics have been busy writing eulogies for Meta’s metaverse dream over the last few years, Mark Zuckerberg’s latest demonstration of its photorealistic avatars shows it could be pretty far from dead after all.

Appearing on a Sept. 28 episode of the Lex Fridman podcast, Zuckerberg and the popular computer scientist engaged in a one-hour face-to-face conversation. Only, it wasn’t actually in person at all.

Instead, the entirety of Fridman and Zuckerberg’s conversation used photorealistic realistic avatars in the metaverse, facilitated through Meta’s Quest 3 headsets and noise-canceling headphones.

Observers often have fun ridiculing Meta for dumping billions of dollars into metaverse research only to seemingly produce cartoonish avatars and wonky-looking legs.

However, in this case, users on social media, including those from Crypto Twitter, seemed to be genuinely impressed by the sophistication of the technology.

“Ok the metaverse is officially real,” wrote pseudonymous account Gaut, a rare moment of seemingly genuine praise from a user typically known for his satirical and sarcastic takes on current events.

“9 minutes into Lex / Mark metaverse podcast I forgot I was watching avatars,” wrote coder Jelle Prins.

Fridman and Zuckerberg speaking as virtual avatars in the metaverse. Source: Lex Fridman Podcast.

Fridman alsoshared his impressions of the experience in real-time, noting how “close” Zuckerberg felt to him during the interview. Moments later, he explained how difficult it was to recognize that Zuckerberg’s avatar wasn’t his physical body.

“I’m already forgetting that you’re not real.”

The technology on display is the newest version of Codec Avatars. First revealed in 2019, Codec Avatars is one of Meta’s longest-running research projects which aims to create fully photorealistic real-time avatars that work by way of headsets with face tracking sensors.

Related: Meta refutes claims of copyright infringement in AI training

However, users may need to wait a few years before donning their own realistic avatars, said Zuckerberg, explaining that the tech used requires expensive machine learning software and full head scans by specialized equipment featuring more than 100 different cameras.

This would be, at the very least, three years away from being available to everyday consumers, he said.

Still, Zuckerberg noted that the company wants to reduce the barriers as much as possible, explaining that in the future, these scans may be achievable with a regular smartphone.

The most-recent demonstration comes just one day after Meta unveiled its answer to ChatGPT, revealing its newest AI assistant Meta AI, which is integrated across a range of unique chatbots, apps and even smart glasses.

AI Eye: Real uses for AI in crypto, Google’s GPT-4 rival, AI edge for bad employees

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New Tables Show Intermediate-Term Overview is Negative

We have introduced two new tables in the DecisionPoint ALERT to give an overview of trend and BIAS for the major market indexes, sectors, and industry…

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32 mins ago

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September 28, 2023

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We have introduced two new tables in the DecisionPoint ALERT to give an overview of trend and BIAS for the major market indexes, sectors, and industry groups that we track. The first is our Market Scoreboard, which shows the current Intermediate-Term and Long-Term Trend Model (ITTM and LTTM) signal status. To review:

  • The IT Trend Model generates a BUY Signal when the 20-day EMA crosses up through the 50-day EMA (Silver Cross).
  • The IT Trend Model generates a NEUTRAL Signal when the 20-day EMA crosses down through the 50-day EMA (Dark Cross) above the 200-day EMA. This is a soft SELL Signal, going to cash or a hedge. It avoids being short in a bull market.
  • The IT Trend Model generates a SELL Signal when the 20-day EMA crosses down through the 50-day EMA (Dark Cross) below the 200-day EMA.
  • The LT Trend Model generates a BUY Signal when the 50-day EMA crosses up through the 200-day EMA (Golden Cross).
  • The LT Trend Model generates a SELL Signal when the 50-day EMA crosses down through the 200-day EMA (Death Cross).

The current table shows that there is considerable stress in the intermediate-term; however, the long-term is still comfortably green for market and sector indexes. But we need to remember that the market indexes are cap-weighted, which means that they can be held aloft by large-cap stocks. The 11 sectors shown are composed solely of S&P 500 components, meaning that they will reflect the strength of that index. Industry groups, however, are not doing as well because they are less protected by the large-cap umbrella.

Next, let's look at how we determine the BIAS of a given index. First, the Silver Cross Index shows the percentage of stocks in an index that have a Silver Cross (20-day EMA above the 50-day EMA), and the Golden Cross Index shows the percentage of stocks in the index that have a Golden Cross (50-day EMA above the 200-day EMA). Next, we determine BIAS based upon the relationship of the Silver Cross Index to its 10-day EMA and the relationship of the Golden Cross Index to its 20-day EMA. When they are above, the BIAS is bullish. When they are below, the BIAS is bearish. See the chart below.

The following table shows the current intermediate-term and long-term BIAS of the market, sector, and industry group indexes we follow. Note that the picture is extremely bearish, but it is a very oversold condition, which will shift toward the positive in the event of a strong rally.

Conclusion: These new tables, available daily in the DecisionPoint ALERT, provide a quick overview of market trend and BIAS. They are intended to help focus attention on areas that may be of interest. They do not give action commands, but provide information flags to prompt assessment of the relevant charts.

Learn more about DecisionPoint.com:

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(c) Copyright 2023 DecisionPoint.com

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.

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Tesla rival Polestar reveals lineup of its new electric vehicles

The Sweden-based electric vehicle maker completes key testing before launching production of its new SUV.

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32 mins ago

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September 28, 2023

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Tesla's Model Y crossover, the best-selling vehicle globally, is the standard that electric vehicle makers strive to compete with. The Austin, Texas, automaker sold about 267,200 Model Y vehicles in the first three months of the year and continued leading the pack well into the second quarter.

It's no wonder that the Model Y is leading all vehicles in sales as it retails for about $39,390 after tax credits and estimated gas savings. Ford  (F) - Get Free Report hopes to compete with the Model Y about a year from now when it rolls out the new Ford Explorer SUV that is expected to start at $49,150.

Related: Honda unveils surprising electric vehicles to compete with Tesla

Plenty of competition in electric SUV space

Mercedes-Benz (MBG) however, has a Tesla rival model with its EQB all-electric compact sports utility vehicle with an estimated 245 mile range on a charge with 70.5 kWh battery capacity, 0-60 mph acceleration in 8 seconds and the lowest price of its EVs at a $52,750 manufacturers suggested retail price.

Tesla's Model X SUV has a starting price of about $88,490, while the Model X full-size SUV starts at $98,490 with a range of 348 miles. BMW's  (BMWYY) - Get Free Report xDrive50 SUV has a starting price of about $87,000, a range up to 311 miles and accelerates 0-60 miles per hour in 4.4 seconds.

Polestar  (PSNY) - Get Free Report plans to have a lineup of five EVs by 2026. The latest model that will begin production in the first quarter of 2024 is the Polestar 3 electric SUV, which is completing its development. The vehicle just finished two weeks of testing in extreme hot weather of up to 122 degrees in the desert of the United Arab Emirates to fine tune its climate system. The testing was completed in urban cities and the deserts around Dubai and Abu Dhabi.

“The Polestar 3 development and testing program is progressing well, and I expect production to start in Q1 2024. Polestar 3 is at the start of its journey and customers can now visit our retail locations around the world to see its great proportions and sit in its exclusive and innovative interior,” Polestar CEO Thomas Ingenlath said in a statement.

Polestar 3 prototype is set for production in the first quarter of 2024.

Polestar

Polestar plans 4 new electric vehicles

Polestar 3, which will compete with Tesla's Model X, Model Y, BMW's iX xDrive50 and Mercedes-Benz, has a starting manufacturer's suggested retail price of $83,000, a range up to 300 miles and a charging time of 30 minutes. The company has further plans for the Polestar 4, an SUV coupé that will launch in phases in late 2023 and 2024, as well as a Polestar 5 electric four-door GT and a Polestar 6 electric roadster that the company says "are coming soon." 

The Swedish automaker's lone all-electric model on the market today is the Polestar 2 fastback, which has a manufacturer's suggested retail price of $49,900, a range up to 320 miles and a charging time of 28 minutes. The vehicle accelerates from 0-60 miles per hour in 4.1 seconds. Polestar 2 was unveiled in 2019 and delivered in Europe in July 2020 and the U.S. in December 2020.

Polestar 1, the company's first vehicle, was a plug-in hybrid that went into production in 2019 and was discontinued in late 2021, according to the Polestar website.

The Gothenburg, Sweden, company was established in 1996 and was sold to Geely affiliate Volvo in 2015.

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