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Which Stocks To Buy Now? 4 Value Stocks To Watch

Should you be investing in these value stocks amid concerns of high inflation?
The post Which Stocks To Buy Now? 4 Value Stocks To Watch appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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Check Out These 4 Top Value Stocks In The Stock Market Today

As we approach the end of another trading week, the stock market continues to be under pressure. As of today, the Nasdaq Composite is already down around 10% since the year started. All this shouldn’t come as a surprise considering that many expect the Federal Reserve to start raising rates multiple times this year. 

As a result, many hyper-growth names could continue to trade sideways heading into the Fed’s meeting next week. Against the backdrop of a rising rate environment, perhaps it’s a good idea to have some exposure to value stocks. Sure, value stocks may not be as exciting or provide significant returns in a short period of time. Yet, many investors might want to diversify into value stocks as a potential hedge if you believe the downturn could continue.

It’s worth noting that some of the best growth stocks to buy during the pandemic have seen a reversal of fortune. On Thursday, we saw Peloton Interactive (NASDAQ: PTON) slid by a massive 23%, wiping roughly $2.5 billion in market valuation. This landslide came after rumors of the company temporarily halting production of its fitness products as consumer demand wanes. Separately, streaming giant Netflix (NASDAQ: NFLX) predicted that growth would suffer much more than expected in the first quarter of 2022. This sent NFLX stock plummeting around 20% in the pre-market trading today. Considering that many of the top growth stocks continue to trade lower, it might just be a good time to put up a list of top value stocks to buy in the stock market today.

Top Value Stocks To Watch Today

General Motors 

First, on the list, we have General Motors (GM), one of the leading automotive manufacturers in the world. In short, the company designs, builds, and sells trucks and cars worldwide. Its car brand portfolio consists of famous brands such as Chevrolet, Buick, GMC, and Cadillac among others. Recently, the automotive titan has been focusing on switching towards having a fully electrified product line. As such, GM has committed itself to launch 30 new EVs by 2025. 

Earlier on Wednesday, the company announced plans to broaden its electrification strategy. Namely, it announced new commercial applications of its HYDROTEC fuel cell tech. The projects which leverage upon this fuel cell technology are still in the works. Specifically, these projects include heavy-duty trucks, aerospace, and locomotives, but GM plans to use this tech beyond vehicles for power generation. Ultimately, GM’s fuel cell tech could replace gas and diesel generators with lower emissions at worksites and buildings to name a few. Besides that, last week, Deutsche Bank raised the price target for GM stock from $67 to $71. With this innovative fuel cell tech at play, would you add GM stock to your portfolio?

GM stock chart
Source: TD Ameritrade TOS

[Read More] Best Lithium Battery Stocks To Buy Now? 4 To Know

Meta Platforms

As its name suggests, Meta Platforms is shifting its focus on building and expanding the metaverse. At the same time, the company boasts a portfolio of social media platforms used by billions around the world. These include Facebook, Instagram, and WhatsApp. It also owns Oculus, a company that produces virtual reality (VR) headsets, facilitating entry into the metaverse. 

Yesterday, it was reported that Meta is working on plans to allow users to create and sell non-fungible tokens (NFTs), joining the other slew of companies rushing to capitalize on the NFT craze. Supposedly, teams at Facebook and Instagram are working on a feature that will allow users to display their NFTs on their social media profiles. Additionally, the company is working on a prototype to help users create their own NFTs. According to several people familiar with the matter, the company is also in talks to launch a marketplace for users to buy and sell NFTs. However, it is important to note that these are early-stage efforts that could change. Given this news of Meta diving into the NFT scene, will you be putting FB stock on your watchlist?

FB stock chart
Source: TD Ameritrade TOS

[Read More] Best Monthly Dividend Stocks To Buy Now? 5 For Your List

Johnson & Johnson 

Johnson & Johnson, or JNJ for short, is a legacy healthcare company that develops medical devices, pharmaceuticals, and consumer packaged goods. It has been around for more than a century and is one of the largest and most broadly-based health companies in the world. Seeing that JNJ has long been viewed as a bellwether stock for other health care companies, its early slot in the earnings calendar will set the tone for other health care companies. On January 25, the company is expected to reveal its fourth-quarter earnings. Investors will also be paying attention to their newly-appointed CEO Joaquin Dato, and what he has to say about the direction of the company. 

In other news, last week, it was found that a JNJ COVID-19 booster shot is 85% effective in protecting against the Omicron variant. Once the booster shot is administered, it will protect against being hospitalized by the variant for 1 to 2 months. The findings were reported by the South Africa Medical Research Council (SAMRC). With that being said, will you be keeping an eye on JNJ stock ahead of its quarterly earnings next week?

JNJ stock chart
Source: TD Ameritrade TOS

[Read More] Top Stock Market News For Today January 21, 2022

Starbucks 

Finishing off our list of top value stocks to buy is Starbucks. This company needs little introduction seeing that it is the largest coffeehouse chain in the world. It serves on average, about 4 billion cups of coffee a year globally. Through its global network of 34,000 stores, the company serves high-quality arabica coffee to its customers.

Earlier this week, the company expanded its delivery and online services in China. It did so by partnering up with Meituan, the biggest food delivery platform in China. Accordingly, customers can use Meituan’s app to order drinks as well as book activities such as coffee-tasting experiences at their local Starbucks chain. This partnership came about as Starbucks faces increasing pressure from well-funded domestic tea and coffee chains in China such as HeyTea and Manner. In the last quarter, Starbucks reported a revenue of over $8.1 billion, a 31% year-over-year increase. Besides that, diluted earnings per share increased to $1.49 from $0.33 the year before. On that note, would you consider buying SBUX stock?

SBUX stock chart
Source: TD Ameritrade TOS

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The post Which Stocks To Buy Now? 4 Value Stocks To Watch appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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Economics

“This Is A Crucible Moment” – Sequoia’s Ominous Warning To Companies On How To “Avoid The Death Spiral”

"This Is A Crucible Moment" – Sequoia’s Ominous Warning To Companies On How To "Avoid The Death Spiral"

"This is not a time to panic. It is…

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"This Is A Crucible Moment" - Sequoia's Ominous Warning To Companies On How To "Avoid The Death Spiral"

"This is not a time to panic. It is a time to pause and reassess," begins the thought-provoking presentation from veteran venture capital firm Sequoia Capital.

But that's about as 'positive' as they get as the founders of the firm warn of a prolonged market downturn and urges the startups in its portfolio to preserve cash and brace for worse to come.

"We believe this is a Crucible Moment, one that will present challenges and opportunities for many of you. First and foremost, we must recognize the changing environment and shift our mindset to respond with intention rather than regret."

And in its somewhat ubiquitous historically grim outlooks (its "R.I.P Good Times" in 2008 and "Black Swan" memo in March 2020 have become legendary) don't expect a quick rescue and recovery this time.

"Sustained inflation, and geopolitical conflicts further limit the ability for a quick-fix policy solution. As such, we do not believe that this is going to be another steep correction followed by an equally swift V-shaped recovery, like we saw at the outset of the pandemic," the note said.

They argue that it will be "Survival of the Quickest"...

In particular, Sequoia urged companies to look at cutting projects, R&D, marketing, and other expenses, noting that companies should be ready to cut in the next 30 days.

"We expect the market downturn to impact consumer behaviour, labour markets, supply chains and more. It will be a longer recovery and while we can't predict how long, we can advise you on ways to prepare and get through to the other side," it said.

The founders/CEOs who face reality, adapt fast, have discipline rather than regret will not just survive, but win, noting that "It is easier to preserve cash when you have more than six months left. Recruiting is about to get easier. All the FANG have hiring freezes."

They conclude their presenttation by noting that:

"At Sequoia, we believe that the one who wins is the one most prepared."

In other words America, brace for capex cuts, hiring freezes to accelerate, and growth to evaporate.

*  *  *

Read the full presentation below:

Tyler Durden Thu, 05/26/2022 - 15:45

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Economics

Best Day For Discretionary Stocks Since COVID-Crash As Consumer Recession Bets Get Steamrolled

Best Day For Discretionary Stocks Since COVID-Crash As Consumer Recession Bets Get Steamrolled

A week ago, following dismal guidance by Walmart,…

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Best Day For Discretionary Stocks Since COVID-Crash As Consumer Recession Bets Get Steamrolled

A week ago, following dismal guidance by Walmart, Target indicated that it is seeing a shift in the consumer wallet away from the pandemic purchases and into reopening purchases - including apparel - and the pace of this shift caught some retailers off guard on inventory. WMT, COST, and TGT all saw their stocks fall sharply last week as investor concerns around a US consumer slowdown mounted and investors reconsidered just where, if anywhere, you can play "defense" in the current market.

But as Goldman's Chris Hussey writes today, this week, results from companies like DKS, Macy's, JWN, WSM, DLTR, and DG painted a decidedly different picture.

Deep discount retailers Dollar Tree - or rather Dollar 25 Tree - and Dollar General both posted strong results and DLTR raised top-line guidance.

Which isn't surprising: as we discussed in "Middle Class Is Shutting Down As Spending By The Rich Remains Robust" when consumers are trading down - as they are doing now due to Biden's runaway inflation - dollar stores see more business.

As a result, Dollar Tree surged as much as 20% on Thursday, the biggest intraday move since October 2020. Evercore ISI said Dollar Tree's move to a "$1.25 price point" last November from $1 “came in the nick of time" adding that "given the broad-based inflationary cost pressures, the 25% price increase drove material sales and margin upside for both the namesake division and the total company," wrote analyst Michael Montani who also said that while freight, transport, and labor headwinds are real, some of the pressure cited by Target last week was likely company specific.

The analyst concluded that the read-across from DG and DLTR is “favorable,” and it seems that the low-end consumer is “hanging in better than initially thought.” Or rather, the middle-class is getting crushed and it has no choice but to trade down to the cheapest retail outlets.

And with countless shorts having piled up and getting massively squeezed, the S&P 500 Consumer Discretionary Index today has risen as much as 5.6%, its best day since April 2020, as optimism on the health of the consumer returns following a string of better-than-expected earnings reports from retailers.

Top performers in the S5COND index include Dollar Tree, Dollar General, Norwegian Cruise, Caesars Entertainment and Carnival; the Discretionary Index is on pace for its best week since March 18, when the group climbed 9.3%; the index sank 7.4% as Walmart and Target reports spooked investors. The index is still down almost 30% YTD.

"Retail earnings are bullish.... with four blow-outs,” said Vital Knowledge’s Adam Crisafulli, referring to quarterly reports from Williams-Sonoma, Macy’s, Dollar General, and Dollar Tree.  “The overall retail industry is experiencing stark changes and the market is incorrectly conflating these shifts with underlying demand weakness when the actual health of the consumer is much better than it seems,” Crisafulli says, although there are many - this website included - who wholeheartedly disagree with his optimistic view of the US consumer.

Remarkably, thanks to today’s rally, even Burlington Stores, which sank as much as 12% in premarket on disappointing results, is trading up as much as 11% and some say, the rally helped reverse the earlier tumble in NVDA shares.

The discretionary group is also getting a boost from airline operators Southwest and JetBlue, helping travel-related names, while on the economic front, better-than-expected personal consumption (for the revised Q1 GDP print). and jobless claims may be adding to the bullishness according to Bloomberg.

Tyler Durden Thu, 05/26/2022 - 15:00

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Spread & Containment

Asymptomatic SARS-CoV-2 infections responsible for spreading of COVID-19 less than symptomatic infections

Based on studies published through July 2021, most SARS-CoV-2 infections were not persistently asymptomatic, and asymptomatic infections were less infectious…

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Based on studies published through July 2021, most SARS-CoV-2 infections were not persistently asymptomatic, and asymptomatic infections were less infectious than symptomatic infections. These are the conclusions of an update of a systematic review and meta-analysis publishing May 26th in the open access journal PLOS Medicine by Diana Buitrago-Garcia of the University of Bern, Switzerland, and colleagues.

Credit: Monstera, Pexels (CC0, https://creativecommons.org/publicdomain/zero/1.0/)

Based on studies published through July 2021, most SARS-CoV-2 infections were not persistently asymptomatic, and asymptomatic infections were less infectious than symptomatic infections. These are the conclusions of an update of a systematic review and meta-analysis publishing May 26th in the open access journal PLOS Medicine by Diana Buitrago-Garcia of the University of Bern, Switzerland, and colleagues.

Debate about the level and risks of asymptomatic SARS-CoV-2 infections continues, with much ongoing research. Studies that assess people at just one time point can overestimate the proportion of true asymptomatic infections because those who go on to later develop symptoms are incorrectly classified as asymptomatic rather than presymptomatic. However, other studies can underestimate asymptomatic infections with research designs that are more likely to include symptomatic participants.

The new paper was an update of a living (as in, regularly updated) systematic review first published in April 2020, which includes additional, more recent studies through July 2021. 130 studies were included, with data on 28,426 people with SARS-CoV-2 across 42 countries, including 11,923 people defined as having asymptomatic infection. Because of extreme variability between included studies, the meta-analysis did not calculate a single estimate for asymptomatic infection rate, but it did estimate the inter-quartile range to be that 14–50% of infections were asymptomatic. Additionally, the researchers found that the secondary attack rate—a measure of the risk of transmission of SARS-CoV-2 — was about two-thirds lower from people without symptoms than from those with symptoms (risk ratio 0.32, 95%CI 0.16–0.64).

“If both the proportion and transmissibility of asymptomatic infection are relatively low, people with asymptomatic SARS-CoV-2 infection should account for a smaller proportion of overall transmission than presymptomatic individuals,” the authors say, while also pointing out that “when SARS-CoV-2 community transmission levels are high, physical distancing measures and mask-wearing need to be sustained to prevent transmission from close contact with people with asymptomatic and presymptomatic infection.”

Coauthor Nicola Low adds, “The true proportion of asymptomatic SARS-CoV-2 infection is still not known, and it would be misleading to rely on a single number because the 130 studies that we reviewed were so different. People with truly asymptomatic infection are, however, less infectious than those with symptomatic infection.”

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In your coverage, please use this URL to provide access to the freely available paper in PLOS Medicine:

http://journals.plos.org/plosmedicine/article?id=10.1371/journal.pmed.1003987  

Citation: Buitrago-Garcia D, Ipekci AM, Heron L, Imeri H, Araujo-Chaveron L, Arevalo-Rodriguez I, et al. (2022) Occurrence and transmission potential of asymptomatic and presymptomatic SARS-CoV-2 infections: Update of a living systematic review and meta-analysis. PLoS Med 19(5): e1003987. https://doi.org/10.1371/journal.pmed.1003987

Author Countries: Switzerland, France, Spain, Argentina, United Kingdom, Sweden, United States, Colombia

Funding: This study was funded by the Swiss National Science Foundation http://www.snf.ch/en (NL: 320030_176233); the European Union Horizon 2020 research and innovation programme https://ec.europa.eu/programmes/horizon2020/en (NL: 101003688); the Swiss government excellence scholarship https://www.sbfi.admin.ch/sbfi/en/home/education/scholarships-and-grants/swiss-government-excellence-scholarships.html (DBG: 2019.0774) and the Swiss School of Public Health Global P3HS stipend https://ssphplus.ch/en/ (DBG). The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.


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