4 Penny Stocks to Own for 2019

[Editor’s note: This story was previously published in May 2018. It has since been updated and republished.]
Do you think penny stocks are best left to amateur traders who don’t understand that cheap stocks are cheap for a reason? It’s not an entirely unfair assessment. Many of these young (and doomed companies) are the beneficiaries of great sales pitches, but their investors often end up suffering buyer’s remorse.

It’s a misnomer, however, to think all penny stocks — let’s quantify them as equities priced at less than $5 per share — aren’t worth owning. Thanks to factors ranging from prolonged weakness in the commodities market to strategic stock splits to poorly-timed IPOs, a handful of these low-priced equities are actually compelling prospects.

In fact, here’s a run-down of four of the best penny stocks to mull for 2018, and maybe beyond, none of which aren’t exchange-listed names.

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Source: Irene Grassi via Wikimedia (Modified)

AK Steel Holding Corporation (AKS)

One would think the steel business to be a steady and predictable one, with these stocks (and steel prices) ebbing and flowing more or less with the bigger economic cycle. One would be wrong in thinking this, however.

The steel industry is a volatile mess, with ever-changing supply and demand making it impossible for the likes of AK Steel Holding Corporation (NYSE:AKS) to commit to a plan for the future.

The end result? An already-cheap AKS stock has basically gone nowhere for the past 15 years, with everything that could go wrong during that time going wrong at an inopportune time.

That may finally be on the verge of changing, however. With President Trump at least willing to try to level the playing field between the United States’ steel companies and overseas rivals at the same time the global economy appears to be picking up some steam, AK Steel is in a proverbial sweet spot.

Analysts think so anyway, with earnings and revenue projected to grow this year.

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Source: Shutterstock

PDL BioPharma Inc (PDLI)

PDL BioPharma (NASDAQ:PDLI) is a curious beast. It was initially established as a vehicle to acquire the rights to, or patents on, highly marketable drugs that would ultimately drive income for its investors.

It worked too, for a while. As time marched on, however, drug developers realized they could do for themselves what PDL was doing. Ergo, PDL BioPharma has been struggling for a while now to acquire drugs and marketing rights at prices that left room for healthy dividends.

That’s a big part of the reason PDLI stock has fallen from a value of more than $30 in 2006 to a price of only $3.70 per share now.

The bears may have overshot with their pessimism though. PDL BioPharma could arguably overpay for a drug and still be money ahead.

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Source: Shutterstock

Groupon Inc (GRPN)

Talk about a fall from grace! Yes, Groupon (NASDAQ:GRPN) was a marker darling when it went public back in 2011, at a price of $28 per share. It has a honeymoon that didn’t last long at all though, with shares retreating into penny stock territory less than a year later where it’s been stuck ever since.

And truth be told, Groupon shares deserved the beating they took. Not only was its pre-IPO growth rate not built to last, a host of competition has stepped up to the plate in the meantime. Net income peaked in 2012, and sales peaked in 2015.

The daily-deals company may have finally found a winning formula though, setting the stage for a better 2019 and beyond.

Analysts say that while sales are apt to fall another 8.2% this year, income is projected to improve. That may be all traders need to see to get this stock back in a nice uptrend.

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Source: Brownpau via Flickr (Modified)

Zynga Inc (ZNGA)

Last but not least, put Zynga (NASDAQ:ZNGA) on your list of penny stocks to mull for 2019. Yes, this is the same Zynga behind great online games like Words With Friends, FarmVille and several other titles you may not have realized were part of its library.

This is the same Zynga that Facebook dropped an exclusivity arrangement with back in 2012, undermining its well-received IPO from 2011 and sending the stock to a sub-$5 price where it’s been (almost) ever since. Though Zynga hasn’t done poorly, it’s certainly not done nearly as well as investors were expecting it too when it first IPO’d.

Change is brewing though. Last year CEO and founder Mark Pincus gave up his control of the company by scrapping the two classes of voting shares that granted him an inordinate degree of voting power.

That’s not to say he alone was the reason the company was unable to grow in a meaningful way, but it certainly didn’t help. In the meantime, that news comes at a time when revenue and income are starting to edge higher anyway.

Not too many investors have noticed yet, but when they do, ZNGA is apt to get over the $5 hump. A more equitable voting rights scheme will only bolster the bullish case.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter

6 Hot Stocks For Goldman Sachs’ New Investing Strategy

The tide is turning. Goldman Sachs is now calling an end to an investing strategy it first recommended two years ago.

“For the past two years we have consistently advocated buying strong balance sheet stocks, but we believe the risk-reward has shifted in favor of closing this recommendation,” Goldman Sachs’ equity strategist David Kostin wrote on Feb. 8. “We no longer recommend strong balance sheets.”

These “strong balance sheet” stocks include major names like Facebook (NASDAQ:FB), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Costco (NASDAQ:COST). So far this strategy has done very well for investors. Goldman Sachs’ basket of 50 strong balance sheet stocks outperformed weak balance sheet stocks by 25 percentage points since early 2017.

However the Federal Reserve’s recent dovish commentary indicates that the hiking cycle may have come to an end. This should ease pressure on corporate balance sheets — leading Kostin to say: “Our recent research showed that strong balance sheets are among the worst performing factors during the 12 months following the end of Fed hiking cycles, when U.S. Treasury yields typically also decline.”

Plus the firm’s optimistic outlook for the economy is also a boost to weaker balance sheet stocks. Investors tend to rotate to strong balance sheet stocks in times of weak or decelerating economic growth. So which stocks should you be looking at now? Here are six stocks from the firm’s weak balance sheet basket. I also use TipRanks‘ data to see what the analysts are saying about these picks.

Let’s take a closer look now:

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Stocks To Buy: Delta Airlines (DAL)

Despite the government shutdown costing Delta Air Lines (NYSE:DAL) $25 million in revenue for January, this stock still gets the thumbs up from the Street.

The airline carrier recently reported fourth-quarter earnings that beat expectations thanks to strong travel demand. Delta’s total revenue rose to $10.74 billion during Q4, up 5% year-over-year.

“2018 was a successful year for Delta with record operational reliability, increasing customer satisfaction, and solid financial results in the face of higher fuel costs” said CEO Ed Bastian. “As we move into 2019, we expect to drive double-digit earnings growth through higher revenues, maintaining a cost trajectory below inflation, and the modest benefit from lower fuel costs.”

As Tigress Financial’s Ivan Feinseth (Track Record & Ratings) notes, a strong economy, low unemployment and increases in consumer spending are driving record levels of airline travel.

That’s reflected in the company’s strong buy consensus and 21% upside potential.Want to learn more about Delta? Get the free DAL Stock Research Report.

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AT&T (T)

AT&T (NYSE:T) is a leading provider of IP, broadband, video and wireless services. And through its recent Time Warner acquisition it is now a top-four producer of content globally.

2019 is about positioning for better services growth in 2020 and beyond, says Oppenheimer’s Timothy Horan (Track Record & Ratings). Horan, like most of the Street, currently has a buy rating on T stock. His bullish call comes with a $41 price target for 38% upside potential.

T stock has the ability to integrate its services in unique ways and hassubstantial room to use virtualized technologies to greatly reduce operating and capital expenditures. “We believe that combined with TWX, FCF/share could grow 6% per year” writes the analyst.

Overall, T has a strong buy consensus with 11 buy ratings vs just three hold ratings. Get the T Stock Research Report.

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Mylan (MYL)

If you haven’t heard of Mylan NV (NASDAQ:MYL) before, listen up. This is a global healthcare company making high quality medicines available to everyone who needs them. In fact, Mylan is the U.S.’s second largest provider of prescription medicine with over 650 different products, including the EpiPen.

One product in particular is generating attention right now. That’s asthma drug Advair. “Long awaited generic Advair approval comes and at a key time” cheered RBC Capital’s Randall Stanicky  (Track Record & Ratings) recently. While overdue, MYL received FDA approval for its generic Advair (Wixela Inhub) on Jan. 30. Shares jumped 7% on the news.

Stanicky has a buy rating on the stock with a $50 price target, suggesting 56% upside lies ahead. “MYL remains one of the ‘cheapest’ generic stocks” enthuses the analyst. That’s because its high-value pipeline comes with push-back over (i) low P&L visibility and (ii) governance concerns.

That said, valuation is very compelling with multiple catalysts that could surprise to the upside. Bottom line: “Stronger remaining core base combined with emerging complex generic pipeline should position shares for an upward move.”

However not all analysts are so positive. The Street is currently divided between buy and hold ratings. Get the MYL Stock Research Report.

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CBS Corp (CBS)

Even though mass media stock CBS Corporation (NYSE:CBS) just reported a Q4 earnings miss, analysts are staying firmly on side. From top analysts the consensus remains a strong buy. Plus, CBS shares are up 15% since the beginning of this year.

Top Barrington Research analyst James Goss (Track Record & Ratings) has reiterated his CBS buy rating with a $72 price target. That indicates compelling upside potential of 41%. “We view CBS as one of our best value media ideas” Goss writes.

While the lack of syndication deals was largely known going into the quarter, Goss believes consensus had failed to adjust estimates for this high-margin revenue stream. The result: a roughly $100 million revenue and 3-cent EPS miss.

But even so, CBS has just announced that it has hit its 8 million OTT subscriber goal. Prepare yourselves, because this is about two years ahead of schedule.

“At this point, even with the uncertainty at the top and the potential for M&A, CBS trades at a paltry 7x 2019E OIBDA, at a discount to our broadcast affiliate peer group despite owning better stations and all of the content, plus a thriving OTT business” concludes the analyst. Get the CBS Stock Research Report.

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General Motors (GM)

“Motoring into 2019” cheers RBC Capital’s Joseph Spak (Track Record & Ratings). He made the comment following the General Motors Company’s (NYSE:GM) solid 4Q18 earnings results.

The details of the quarter — which were strong — should lead investors to have more confidence in 2019 EPS says Goss. For example, management guided the tax rate to 16%-18% versus the expected 20%.

Plus the analyst continues to view GM’s transformation as underappreciated. “Recent restructuring actions that should lead to ~$4.5bn savings run-rate in 2020 significantly improves GM’s positioning” he writes.

And it seems like the Street agrees. If we zero in on top-performing analysts, we can see GM holds only buy ratings right now. Get the GM Stock Research Report.

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Allergen (AGN)

Botox maker Allergan (NYSE:AGN) is one the highest-quality companies in the Pharma industry. It is also one of the most-innovative. Allergan is currently advancing a number of key pipeline products through late stage clinical trials, including new oral drugs for migraine, rapastinel for major depressive disorder and CVC for NASH.

However shares have underperformed, with prices sinking 15% in the last year. That’s down to a disappointing revenue outlook for 2019 and increasing competition for drugs including botox.

Plus billionaire hedge fund manager David Tepper is now suggesting the company should sell itself. His Appaloosa hedge fund owns 1.5 million shares in AGN — down 842,591 shares from Q3. So far Allergan has refused Tepper’s suggestion to split the chairman and CEO roles, currently held by Brent Saunders.

However, analysts still see a buying opportunity at hand. Mizuho Securities’ Irina Rivkind Koffler (Track Record & Ratings) is a top-rated analyst according to TipRanks. She has a buy rating on the stock with a $200 price target. That indicates 45% upside potential from current levels. Koffler cites the company’s 4Q18 top and bottom-line beat, down to better Restasis durability, share buybacks and strong injectables.

“We valued AGN solely via DCF analysis of 2018-2025 cash flows. We utilize a weighted average cost of capital of 11% and a 3% terminal growth rate. This analysis generates a valuation of $213 per share, and supports our Buy rating” explains the analyst. Get the AGN Stock Research Report.

TipRanks.com offers exclusive insights for investors by focusing on the moves of experts: Analysts, Insiders, Bloggers, Hedge Fund Managers and more. See what the experts are saying about your stocks now at TipRanks.com. As of this writing, Harriet Lefton did not hold a position in any of the aforemen

Warning: Earnings Are About To Get Ugly

As a child, I wanted to be a weatherman. I knew more than any ten-year-old should about barometric pressure and relative humidity and spent countless hours in the winter staring at the radar praying for snow (understand, it's a rarity in my home state of Louisiana). 

Back then, one of our local network meteorologists never predicted any of the white stuff, even when his colleagues assured kids that several inches were coming and schools would be closed the next day. I hated that guy. But my ski gloves and sled never got much use -- he was right 99% of the time. 

Of course, you can't really blame the weatherman for the forecast. They are simply the messengers. Please keep that in mind when I tell you the stock market forecast appears rather stormy right now. 

I'd much prefer to say that conditions look lovely -- but honestly, you might want to keep an umbrella handy the next few weeks. 

Here's what's got me worried. 

This chart shows the change in S&P first-quarter earnings estimates over the past 18 weeks. Back in September, analysts were anticipating a decent 6.7% increase. By December 31, that projection had been cut in half to 3.3%. And the outlook has deteriorated even faster since then.

According to FactSet, all eleven market sectors experienced downward earnings revisions in January, with most being far steeper than the 10-year average for the first month of a quarter. 

As it stands today, first-quarter earnings are now expected to show a decline of 0.8%. If so, it would be the first quarterly decrease in nearly three years. 

Not every analyst will be right about every stock they follow. Some companies will undoubtedly surprise to the upside. But in the aggregate, there is a unanimous assessment that earnings growth is about to come to a screeching halt. 

Keep in mind, we've just had five straight quarters of double-digit growth, so investors are accustomed to seeing rising profits. We might not see much reaction when the final numbers are posted, because the market adjusts its assumptions ahead of time.

Well, that period of adjustment is right now. 

Action To Take
I'm a bit wary of profit-taking in the near-term. Fortunately, the S&P earnings decline is being distorted by a few (less than 10) large companies such as Apple (Nasdaq: AAPL). Many others are doing just fine. And the long-range forecast calls for earnings to expand 5% for the full-year 2019 -- lapping a strong 2018 that was aided by tax reform. 

In any case, I pay far more attention to my individual holdings than the broader market. And you should, too. 

Thankfully, most of my holdings over at The Daily Paycheck continue to meet or exceed expectations. That's largely because we've done extensive research on our picks before we even consider pulling the trigger. But it doesn't stop there: we keep constant tabs on our portfolio, updating subscribers on any changes or important developments. 

To learn how to gain access to our entire portfolio of dividend payers, go here now.

$478.53 Million in Sales Expected for BWX Technologies Inc (BWXT) This Quarter

Equities research analysts expect BWX Technologies Inc (NYSE:BWXT) to post sales of $478.53 million for the current fiscal quarter, according to Zacks. Three analysts have made estimates for BWX Technologies’ earnings, with the lowest sales estimate coming in at $470.00 million and the highest estimate coming in at $486.00 million. BWX Technologies posted sales of $430.14 million during the same quarter last year, which would indicate a positive year-over-year growth rate of 11.2%. The business is expected to report its next quarterly earnings report after the market closes on Tuesday, February 26th.

According to Zacks, analysts expect that BWX Technologies will report full year sales of $1.80 billion for the current year, with estimates ranging from $1.79 billion to $1.81 billion. For the next fiscal year, analysts expect that the company will report sales of $1.90 billion, with estimates ranging from $1.89 billion to $1.93 billion. Zacks Investment Research’s sales averages are an average based on a survey of sell-side research analysts that that provide coverage for BWX Technologies.

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Several equities analysts have commented on BWXT shares. Zacks Investment Research downgraded BWX Technologies from a “hold” rating to a “sell” rating in a research report on Wednesday, February 6th. Credit Suisse Group dropped their price target on BWX Technologies from $60.00 to $46.00 and set a “neutral” rating on the stock in a research report on Thursday, November 8th. ValuEngine raised BWX Technologies from a “sell” rating to a “hold” rating in a research report on Monday, November 19th. SunTrust Banks downgraded BWX Technologies from a “buy” rating to a “hold” rating and dropped their price target for the stock from $79.00 to $48.00 in a research report on Wednesday, November 7th. Finally, Maxim Group assumed coverage on BWX Technologies in a research report on Tuesday, November 13th. They set a “buy” rating and a $60.00 price target on the stock. Two research analysts have rated the stock with a sell rating, five have assigned a hold rating and three have issued a buy rating to the company’s stock. The company presently has an average rating of “Hold” and a consensus target price of $58.00.

In related news, CEO Rex D. Geveden acquired 2,500 shares of the firm’s stock in a transaction that occurred on Tuesday, November 20th. The stock was purchased at an average cost of $41.49 per share, for a total transaction of $103,725.00. Following the purchase, the chief executive officer now directly owns 28,595 shares of the company’s stock, valued at approximately $1,186,406.55. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.52% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently modified their holdings of the stock. Quantamental Technologies LLC purchased a new stake in shares of BWX Technologies during the 4th quarter worth $38,000. Doyle Wealth Management purchased a new stake in BWX Technologies in the fourth quarter valued at about $46,000. Tower Research Capital LLC TRC purchased a new stake in BWX Technologies in the third quarter valued at about $121,000. First Manhattan Co. purchased a new stake in BWX Technologies in the third quarter valued at about $125,000. Finally, Mitsubishi UFJ Kokusai Asset Management Co. Ltd. raised its stake in BWX Technologies by 36.3% in the fourth quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 2,035 shares of the technology company’s stock valued at $78,000 after buying an additional 542 shares during the last quarter. Hedge funds and other institutional investors own 95.69% of the company’s stock.

BWX Technologies stock traded up $1.36 during mid-day trading on Tuesday, hitting $51.45. The company’s stock had a trading volume of 547,723 shares, compared to its average volume of 658,816. The company has a market capitalization of $5.08 billion, a PE ratio of 25.10, a price-to-earnings-growth ratio of 1.85 and a beta of 0.91. The company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 1.93. BWX Technologies has a one year low of $35.91 and a one year high of $72.18.

About BWX Technologies

BWX Technologies, Inc manufactures and sells nuclear components to the United States government. The company operates in three segments: Nuclear Operations, Technical Services, and Nuclear Energy. The Nuclear Operations segment offers precision naval nuclear components and reactors; close-tolerance and equipment for nuclear applications; and components for defense applications, as well as critical nuclear components, fuels, and assemblies for government and other uses.

See Also: What factors cause inflation to rise?

Get a free copy of the Zacks research report on BWX Technologies (BWXT)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Tech Stocks This Week: Amazon's Acquisition, NVIDIA Earnings, and More

It was a good week for stocks. Shares ended the week up 2.5% as corporate earnings continued and as President Trump signed a spending package to avoid another government shutdown. Beyond these headlines, some interesting stories in tech stood out:

Amazon.com (NASDAQ:AMZN) acquired mesh-networking Wi-Fi company Eero. NVIDIA (NASDAQ:NVDA) stock popped following fourth-quarter earnings. One analyst gave Workday (NASDAQ:WDAY) a bullish price target.

Wi-fi connected smart devices. Image source: Getty Images.

Amazon buys Eero

E-commerce and cloud-computing giant Amazon announced on Monday evening that it was acquiring mesh-networking Wi-Fi company Eero for an undisclosed sum.

"We are incredibly impressed with the Eero team and how quickly they invented a Wi-Fi solution that makes connected devices just work," said Dave Limp, senior vice president of Amazon devices and services, in a press release about the deal. "We have a shared vision that the smart home experience can get even easier, and we're committed to continue innovating on behalf of customers."

Amazon has a fast-growing portfolio of smart home devices that began with its first Echo smart speaker, which was introduced in 2014. Today, Amazon's smart devices include a wide range of smart speakers, as well as smart locks, cameras, doorbells, receptacles, and more. With Eero's mesh-networking devices, Amazon can fortify its lead in the smart-home market.

NVIDIA impresses

Shares of semiconductor company NVIDIA jumped about 8% on Thursday, when the company reported its fiscal fourth-quarter results.

The quarterly update followed NVIDIA's downward revision to its guidance for its fiscal fourth quarter in January. The company said it expected $2.2 billion in fiscal fourth-quarter revenue, down from a previous estimate for $2.7 billion.

But now that NVIDIA has had time to tally up its actual results for the period, revenue was $2.21 billion, slightly ahead of its revised guidance for $2.2 billion. In addition, adjusted earnings per share of $0.80 came in slightly ahead of analysts' consensus forecast for $0.75. 

Workday stock gets an outperform rating

Enterprise cloud applications company Workday made headlines on Friday, when, according to Barron's, Cowen analyst Derrick Wood increased his rating for the stock from "market perform" to "outperform." Noting that the firm's "checks" point to "a strong uptick in pipeline of new blue chip Cloud [financial] customers," Wood predicts a robust product cycle for the company. "We see several new product cycle growth catalysts emerging, leading to greater upside and a more bullish narrative," Wood added.

Notably, management did say during the company's third-quarter update that its financial management suite of applications was seeing "accelerated adoption" by customers. 

Wood raised his 12-month price target for the stock to $225, up from $160.

Workday reports its fourth-quarter results after market closes on Thursday, Feb. 28. 

Argent Trust Co Buys 196 Shares of Vanguard Value ETF (VTV)

Argent Trust Co lifted its stake in Vanguard Value ETF (NYSEARCA:VTV) by 2.9% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 6,925 shares of the company’s stock after buying an additional 196 shares during the period. Argent Trust Co’s holdings in Vanguard Value ETF were worth $678,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently modified their holdings of the company. Berkshire Asset Management LLC PA increased its holdings in Vanguard Value ETF by 4.1% during the 4th quarter. Berkshire Asset Management LLC PA now owns 2,602 shares of the company’s stock valued at $255,000 after purchasing an additional 102 shares in the last quarter. Truewealth LLC increased its holdings in Vanguard Value ETF by 0.6% during the 4th quarter. Truewealth LLC now owns 21,549 shares of the company’s stock valued at $2,111,000 after purchasing an additional 131 shares in the last quarter. Garland Capital Management Inc. increased its holdings in Vanguard Value ETF by 2.8% during the 4th quarter. Garland Capital Management Inc. now owns 5,497 shares of the company’s stock valued at $538,000 after purchasing an additional 150 shares in the last quarter. Bogart Wealth LLC increased its holdings in Vanguard Value ETF by 31.1% during the 4th quarter. Bogart Wealth LLC now owns 649 shares of the company’s stock valued at $63,000 after purchasing an additional 154 shares in the last quarter. Finally, San Francisco Sentry Investment Group CA increased its holdings in Vanguard Value ETF by 124.8% during the 4th quarter. San Francisco Sentry Investment Group CA now owns 281 shares of the company’s stock valued at $28,000 after purchasing an additional 156 shares in the last quarter.

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VTV stock opened at $105.92 on Friday. Vanguard Value ETF has a fifty-two week low of $91.62 and a fifty-two week high of $113.49.

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Vanguard Value ETF Company Profile

Vanguard Value ETF (the Fund) is an exchange-traded share class of Vanguard Value Index Fund, which employs a passive management or indexing investment approach designed to track the performance of the MSCI US Prime Market Value Index (the Index). The Index is a diversified index of value stocks of predominantly large United States companies.

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Want to see what other hedge funds are holding VTV? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Vanguard Value ETF (NYSEARCA:VTV).

Textron Inc (TXT) Files 10-K for the Fiscal Year Ended on December 31, 2018

Textron Inc (NYSE:TXT) files its latest 10-K with SEC for the fiscal year ended on December 31, 2018. Textron Inc is engaged in the aerospace industry. Its primary products include aircraft and related defense equipment. Its segments include Textron Aviation, Bell, Textron Systems and Industrial, and Finance. Textron Inc has a market cap of $13.2 billion; its shares were traded at around $54.32 with a P/E ratio of 11.16 and P/S ratio of 0.99. The dividend yield of Textron Inc stocks is 0.15%. Textron Inc had annual average EBITDA growth of 8.00% over the past ten years.

For the last quarter Textron Inc reported a revenue of $3.8 billion, compared with the revenue of $4 billion during the same period a year ago. For the latest fiscal year the company reported a revenue of $14 billion, a decrease of 1.6% from the previous year. For the last five years Textron Inc had an average revenue growth rate of 2.4% a year.

The reported diluted earnings per share was $4.83 for the year, an increase of 323.7% from previous year. Over the last five years Textron Inc had an EPS growth rate of 10.7% a year. The Textron Inc enjoyed an operating margin of 100%, compared with the operating margin of 7.51% a year before. The 10-year historical median operating margin of Textron Inc is 7.71%. The profitability rank of the company is 8 (out of 10).

At the end of the fiscal year, Textron Inc has the cash and cash equivalents of $987.0 million, compared with $1.3 billion in the previous year. The long term debt was $2.8 billion, compared with $3.9 billion in the previous year. The interest coverage to the debt is at a comfortable level of 103.5. Textron Inc has a financial strength rank of 6 (out of 10).

At the current stock price of $54.32, Textron Inc is traded at 24.4% premium to its historical median P/S valuation band of $43.67. The P/S ratio of the stock is 0.99, while the historical median P/S ratio is 0.79. The stock lost 5.07% during the past 12 months.

For the complete 20-year historical financial data of TXT, click here.

Twilio Stock Has Become More Pie in the Sky Than Cloud

Twilio (NASDAQ:TWLO) over-delivered on revenue, and earnings met estimates. Yet, the platform-as-a-service (PaaS) company fell in morning trading as Twilio contends with an elevated multiple and the expectations that go with it. The good news might bode poorly for Twilio stock as the company, priced for perfection, falls short of lofty expectations in the future.

Twilio Stock Met on Earnings, Outperformed on Revenue

Click to Enlarge Source: Web Summit Via Flickr

For the fourth quarter, Twilio non-GAAP earnings came in at four cents per share, meeting consensus estimates. This still showed improvement, as TWLO lost three cents per share in the same quarter last year. Revenues beat analyst estimates, coming in at $204.3 million — $19.83 million ahead of estimates. This also improved by 77.3% over year-ago levels.

For fiscal 2018, the company earned revenues of almost $650.07 million, $19.86 million ahead of estimates. This also showed substantial year-over-year growth, as TWLO brought in $399.02 million in 2017. The company also met estimates with non-GAAP yearly earnings. The company made 11 cents per share in 2018.

Both Q1 and fiscal 2019 guidance include the cost of the SendGrid acquisition. Since estimates do not include this, it was not clear whether the company guided higher or lower.

The stock fell by almost 5% in morning trading following the report.

I will admit that, at first, I underestimated Twilio stock. Granted, I think few would have predicted the meteoric rise in 2018 — a 270% increase.  Nor could they have foreseen the growth of over 30% TWLO has seen this year.

Beware of Valuation

However, the stock trades at a forward price-to-earnings (PE) ratio of 710! Granted, triple-digit PE ratios commonly occur in hotter stocks. Companies such as Twilio deliver the future. For this, investors will pay what I call a “vision premium,” an elevated multiple pertaining to companies that bring their compelling vision to the marketplace.

However, even considering this vision, one has to question whether TWLO can justify over 700 times earnings. Some use a discounted cash flow model to justify such a premium. For fiscal 2019, analysts project 16 cents per share in earnings coupled with the forecasted 45.5% growth rate. With the anticipated 8% average growth rate over the next five years, that takes the price to $7.73, barely one-fourteenth of the current stock price.

I expect this stock to trade at a triple-digit multiple for some time to come. I also expect growth to remain robust for the foreseeable future. Despite my bearishness on Twilio stock, PaaS has a bright future. Moreover, in the area of PaaS for cloud-based APIs, Twilio faces only smaller competitors for now.

However, at a $13 billion market cap, concerns remain. The stock fell a few months ago as Uber worked to reduce its dependence on Twilio. One has to wonder if other large cloud players such as Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), Microsoft (NASDAQ:MSFT) or Salesforce (NYSE:CRM) might take an interest in this market. Amazon (NASDAQ:AMZN), which currently provides hosting to Twilio, could also enter this market and push it aside. Either way, this points to a weak moat that could make the cloud-like valuation hard to justify.

Bottom Line on Twilio Stock

Twilio stock fell in morning trading as the mixed numbers disappointed investors. TWLO met earnings estimates and exceeded Wall Street expectations on revenue. However, this did not satisfy investors, and TWLO stock sold off.

Without question, as the first mover in cloud-based API for communications, Twilio had become the go-to in this area. However, smaller competitors have emerged and its small size compared to other cloud players remains a concern.

For now, I see Twilio continuing its rapid growth. However, this valuation is simply dangerous. With Twilio stock, we have no way to tell whether the post-earnings drop is a temporary setback or the beginning of a more permanent decline. I do not recommend sticking around to find out.

As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting.

 

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Walmart’s Latest Move Could Hurt Bed Bath & Beyond

Bed Bath & Beyond (NASDAQ:BBBY) lost about 75% of its market value over the past five years as it struggled to compete against Amazon (NASDAQ:AMZN) and superstores like Walmart (NYSE:WMT). Wall Street expects that pain to continue with a 3% decline in sales and 36% drop in earnings this year.

Bed Bath & Beyond's massive stores, which have an average size of nearly 44,000 square feet, were filled with products which could easily be bought from Amazon or Walmart. It generated just $237 in sales per square foot over the past 12 months, which compares poorly to Walmart's sales of $415 per square foot.

Image source: Walmart.

Bed Bath & Beyond believes that installing more "furniture vignettes", which combine curated collections of furniture and home furnishings into themed rooms, could boost its sales. It plans to expand those vignettes from 70 stores to 150 locations this year, and use them to showcase its six new in-house furnishing brands over the next two years. It recently launched the first of those brands, Bee & Willow, which sells a mix of modern farmhouse and cottage furnishings.

This sounds like an interesting way to widen its moat against Walmart. Unfortunately, Walmart just tossed a wrench into those plans by launching MoDRN, a private-label modern furniture collection of nearly 650 types of products including sofas, tables, and dinnerware.

Why is Walmart launching its own furniture?

Anthony Soohoo, Walmart's SVP and Group General Manager of its home division, stated that visits to its e-commerce site's home section rose by nearly 35% since its launch nearly a year ago.

Soohoo stated Walmart was focused on "creating this specialty shopping experience" in the first year, and that it was now "doubling down" on increasing its assortment of "high-quality, on-trend collections" of furniture and home furnishings. Soohoo noted that MoDRN was aimed at customers "who embrace a modern aesthetic," and that its Retro Glam, Refined Industrial, and Scandinavian Minimal collections feature higher-end products like velvet and leather upholstery, marble table tops, and exotic veneers.

This move expands Walmart's home furnishing business into the backyard of specialty home furnishing companies like Williams-Sonoma (NYSE:WSM), which also owns Pottery Barn and West Elm. It also widens Walmart's moat against Amazon, which is aggressively expanding into private-label products like consumer goods, apparel, and mattresses.

MoDRN will be an exclusive online brand for Walmart.com, Jet.com, and Jet's Hayneedle.com, so the products won't be showcased in brick-and-mortar stores like Bed Bath & Beyond's furniture vignettes.

Image source: Walmart.

That online-only strategy complements its recent acquisition of online art and wall decor retailer Art.com, and expands its broader e-commerce strategy, which already includes the acquisitions of Jet.com, Shoes.com, Moosejaw, Modcloth, Bonobos, Parcel, Flipkart, Cornershop, Eloquii, and Bare Necessities. Walmart's U.S. e-commerce sales surged 43% annually last quarter, so those efforts are clearly paying off.

Should Bed Bath & Beyond investors worry?

Walmart's moves into the furniture market are worrisome for Bed Bath & Beyond, which only got serious about selling furniture at its stores less than a year ago. Last summer it launched a pilot program for selling more furniture at about 10% of its 1,000 stores. That program eventually expanded into its aforementioned plans for furniture vignettes and in-house furnishing brands.

Bed Bath & Beyond isn't the only retailer that will be hurt by Walmart's move into private label furniture. Williams-Sonoma, which is struggling with decelerating comps growth across its main banners, could face tougher headwinds if MoDRN gains momentum. Wayfair (NYSE:W), which posted a streak of widening losses over the past few years, also lacks meaningful ways to counter Walmart.

However, Bed Bath & Beyond still has a lot to lose. It tried to counter Amazon and Walmart with its Beyond+ membership plans, but offering customers free shipping (with no minimum purchase) and a 20% discount on all their orders for just $29 per year was a desperate strategy that crushed its margins. It wants to lure back shoppers with home furnishings, but that strategy could also hit a brick wall as its rivals adopt similar strategies.

On the bright side, Walmart's online-only approach to furniture might only slightly overlap Bed Bath & Beyond's brick-and-mortar strategy. Walmart's focus on higher-end furniture might also make it more of a threat to Williams-Sonoma than Bed Bath & Beyond, which mostly sells cheaper products. Therefore, Bed Bath & Beyond investors shouldn't panic, but they should keep a close eye on Walmart's latest moves.

Vanguard Group Inc Has $5.24 Million Position in Northern Technologies International Co. (NTIC)

Vanguard Group Inc boosted its position in Northern Technologies International Co. (NASDAQ:NTIC) by 7.0% in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 150,871 shares of the specialty chemicals company’s stock after purchasing an additional 9,899 shares during the quarter. Vanguard Group Inc’s holdings in Northern Technologies International were worth $5,235,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently made changes to their positions in the company. O Shaughnessy Asset Management LLC raised its stake in Northern Technologies International by 70.0% in the 3rd quarter. O Shaughnessy Asset Management LLC now owns 6,439 shares of the specialty chemicals company’s stock valued at $223,000 after purchasing an additional 2,651 shares during the last quarter. Granite Investment Partners LLC raised its stake in Northern Technologies International by 13.5% in the 3rd quarter. Granite Investment Partners LLC now owns 13,449 shares of the specialty chemicals company’s stock valued at $467,000 after purchasing an additional 1,600 shares during the last quarter. FMR LLC acquired a new position in Northern Technologies International in the 2nd quarter valued at about $1,096,000. Westwood Management Corp IL raised its stake in Northern Technologies International by 16.5% in the 3rd quarter. Westwood Management Corp IL now owns 40,772 shares of the specialty chemicals company’s stock valued at $1,415,000 after purchasing an additional 5,772 shares during the last quarter. Finally, Renaissance Technologies LLC raised its stake in Northern Technologies International by 35.8% in the 2nd quarter. Renaissance Technologies LLC now owns 41,700 shares of the specialty chemicals company’s stock valued at $1,493,000 after purchasing an additional 11,000 shares during the last quarter. 29.72% of the stock is owned by hedge funds and other institutional investors.

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Shares of NASDAQ NTIC traded down $0.65 on Tuesday, reaching $28.60. 7,580 shares of the company traded hands, compared to its average volume of 12,439. Northern Technologies International Co. has a fifty-two week low of $21.41 and a fifty-two week high of $41.90. The company has a market cap of $129.90 million, a P/E ratio of 20.00 and a beta of 1.21.

Northern Technologies International (NASDAQ:NTIC) last posted its quarterly earnings data on Tuesday, January 8th. The specialty chemicals company reported $0.32 EPS for the quarter. Northern Technologies International had a net margin of 13.18% and a return on equity of 14.10%. The company had revenue of $14.09 million during the quarter. On average, analysts expect that Northern Technologies International Co. will post 2.05 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 22nd. Stockholders of record on Wednesday, February 6th will be paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 1.68%. The ex-dividend date is Tuesday, February 5th. Northern Technologies International’s dividend payout ratio is currently 33.57%.

Separately, ValuEngine raised shares of Northern Technologies International from a “sell” rating to a “hold” rating in a research note on Wednesday, January 2nd.

COPYRIGHT VIOLATION WARNING: This news story was originally published by Ticker Report and is the sole property of of Ticker Report. If you are accessing this news story on another site, it was stolen and republished in violation of United States and international copyright law. The original version of this news story can be read at https://www.tickerreport.com/banking-finance/4146545/vanguard-group-inc-has-5-24-million-position-in-northern-technologies-international-co-ntic.html.

Northern Technologies International Company Profile

Northern Technologies International Corporation develops and markets rust and corrosion inhibiting products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets. It offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand.

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Want to see what other hedge funds are holding NTIC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Northern Technologies International Co. (NASDAQ:NTIC).

Don’t Get Trapped by All the Hype Surrounding Cronos Stock

This past week’s downgrade of Cronos Group (NASDAQ:CRON) rekindled an overdue discussion about the real value of CRON stock and pot stocks more broadly.

Click to Enlarge Source: Shutterstock

GMP Securities analyst Martin Landry lowered the firm’s stance on Cronos Group stock from “Buy,” to “Hold,” not because he feels the company has hit a wall, but because CRON stock appears to have rallied too far, too fast.

While not his direct intention, Landry’s comments also assured less-daring investors missing out on cannabis-mania that their doubts weren’t entirely unmerited.

More important, the marijuana craze has still lured a huge number of unsuspecting traders into a trap. The only thing really keeping these names propped up right now is hype, but hype can fade fast, and without warning.

Cronos Stock and the Big Run

Landry’s exact words:

“The company’s shares have surged ~110% year-to-date on no material news and have outperformed the HMMJ cannabis index by a factor of 2. This strong performance forces us to change our rating to HOLD solely based on valuation.”

The GMP Securities analyst further fleshed out that Cronos is still well-positioned to capture a respectable piece of a very real but budding marijuana market. The time Cronos needs to fully figure out where it fits in an ever-changing market, however, could prove turbulent for Cronos stock.

Landry went on to caution investors:

“Cronos is still in the early stage of its development with limited revenues in relation to its sizable market cap. Hence, in our view, the company needs to backfill its valuation with capital deployment into the U.S. market, increase its penetration in the Canadian recreational market and continue its international expansion.”

It was a well-reasoned, common-sense observation and too many traders would have none of it.

That dynamic has been in place for months, largely starting on the heels of news that Constellation Brands (NYSE:STZ) had made a major investment in Canopy Growth (NYSE:CGC).

Shortly thereafter, Altria Group (NYSE:MO) bought $2 billion worth of Cronos stock, solidifying the idea that not only did cannabis have a bright future, but a wave of deal-making and outright acquisitions was imminent.

That wave isn’t quite as imminent as some have been hoping. Despite the overly-aggressive pushback against his point, that’s all Landry was really trying to say.

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The Hype Feels Real

For the relatively small but highly vocal horde of investors who not only bought heavily into Cronos, but bought into the very premise of the cannabis movement itself, it is tough news to hear.

They’re not wrong to be optimistic; the marijuana legalization movement is steam-rolling its way across the world.

Their expectations and timeframes, however, are uncomfortably aggressive.

We’ve seen it happen before. Think back to 2013. That was the rise of the affordable (sort of) 3D printers, which were supposed to revolutionize small-scale manufacturing. And they did, to some degree. Investors who bought into the idea of the craze at the time were severely punished though.

3D Systems (NYSE:DDD), a poster child of the 3D printing revolution unfurling at the time, soared from $12 per share near the beginning of 2012 to a peak of more than $80 in 2013. By late-2015, it was back under $9 per share, with 3D printers never living up to their full hype.

Another proverbial failure-to-launch: The 2012 race between Arena Pharmaceuticals (NASDAQ:ARNA) and Orexigen Therapeutics (OTCMKTS:OREXQ) to introduce the first FDA-approved weight-loss drug to the U.S. market in thirteen years.

Both stocks soared on their respective prospects, but neither stock has ever been priced as high as they were right around the times of their approvals. Neither drug has met lofty sales expectations being batted around them. Orexigen, in fact, has since declared bankruptcy.

Investors were certain at the time, of course, that could never happen. The buzz was too strong.

Add solar panels, cryptocurrency, real estate in 2008, dot-coms in 2000, wearables, and a hundred others to the lists of investing letdowns. They all still have a place, and offer select investment opportunities to be sure.

They’ve all, however, pulled the rug out from underneath early-cycle investors that loved the premise but ignored the plausible math.

Yet, somehow the “this time is different” argument is being recycled, indicating investors believe pot stocks will never see any serious downside again.

Bottom Line for Cronos Stock

Or, perhaps this time truly is different. Never say never. If we’re thinking realistically though, it’s naive to not suspect the ongoing legitimization of marijuana won’t draw bigger players into the arena before outfits like Cronos get a chance to fully take rook and make a buck.

Such a development sets the stage for potential acquisitions. Indeed, bigger players have already tiptoed into partial ownership. That bodes well for Cronos Group stock.

Those would-be buyers have far more time to let the dust settle than most M&A-minded investors care to believe though. That leaves plenty of time to wear the polish off of CRON stock and its peers, and let the reality of debt and heavy spending tarnish the shine.

Still, there’s no denying Cronos Group stock will make for some great swing trading, the next one of which should be pointed down. GMP Securities’ Landry couldn’t be quite that blunt, of course.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter

Why These 4 Midstream Players Jumped Double Digits in January

What happened

Units of midstream industry bellwether Enterprise Products Partners LP (NYSE:EPD) rose 12.5% in January, according to data provided by S&P Global Market Intelligence. That's a pretty big move for this conservatively run limited partnership. It was also a dramatic reversal of 2018, when the $60 billion giant saw its price fall around 7%, with a couple of long up and down swings in the mix. But Enterprise was hardly alone in its January jump.

Image source: Getty Images

For example, relatively small peer Crestwood Equity Partners LP (NYSE:CEQP) ended the month up 13%. ONEOK (NYSE:OKE), which is structured as a regular corporation and not a limited partnership, rose an impressive 19%. And Canadian midstream owner Pembina Pipeline (NYSE:PBA) jumped 20% (like ONEOK, Pembina is not structured as a limited partnership). The midstream sector across the board had a pretty decent month.

So what

The big-picture view of January is that investors switched from a risk-off mentality at the end of 2018 to a risk-on mind-set in the beginning of 2019. The S&P 500 Index, for example, was up roughly 8% in January. So the shift was an across-the-board change in sentiment that had far-reaching effects. That these four midstream players would outperform to the upside isn't all that surprising, either.

SPY data by YCharts

While the S&P 500 fell around 15% from its highs in the final months of the year, each of these midstream names lost more. Enterprise was down nearly 18% from its highs, Pembina saw a 19% drop, ONEOK lost 24%, and Crestwood "beat" them all on the downside with a huge 30% decline. With investors becoming more positive, it isn't surprising that these beat-up names would roar back just a little bit more than the broader market.

There wasn't any particular news in January that would justify such large market jumps. Enterprise and ONEOK both announced distribution increases in the middle of the month. Enterprise's hike was a tiny 2.4% year over year, as it continues its multiyear quest to fund more of its growth spending with internally generated funds. ONEOK's mid-month hike left its dividend 12% higher than it was a year ago. That sounds great, but the increase was only a half-cent a share -- the big hikes behind the 12% year-over-year increase took place last year. In other words, not big news. Crestwood and Pembina also announced dividends, but there was no change in the payment.   

SPY data by YCharts

Other than that, only Enterprise reported earnings in the month -- but on the very last day of January. It was pretty good reading, with distributable cash flow up 33% year over year in 2018. Distribution coverage was an incredibly strong 1.5 times, showing that it is making good progress in its efforts to self-fund its growth. However, the timing of the release suggests that investors weren't reacting to this news when they pushed the stock steadily higher the other 30 days of the month. And Enterprise's results were really just a continuation of a solid trend for one of the best-run midstream partnerships, though management was rightly proud of what it achieved in the quarter and the year. 

Now what

All in, the jump at these four midstream names was more about investor sentiment than anything that changed in the midstream space or at these specific companies. It was a welcome upturn, of course, after such a difficult end to 2018, but you shouldn't read too much into it. The outlook for the midstream sector and each of these four names within it is pretty much the same as before.

Cargurus Inc (CARG) CEO, President and Chairman Langley Steinert Sold $7.3 million of Shares

CEO, President and Chairman of Cargurus Inc (NASDAQ:CARG) Langley Steinert sold 176,109 shares of CARG on 02/07/2019 at an average price of $41.17 a share. The total sale was $7.3 million.

CarGurus Inc is an online automotive marketplace connecting buyers and sellers of new and used cars. It operates online marketplaces in Canada, the United Kingdom, and Germany. CarGurus Inc has a market cap of $4.3 billion; its shares were traded at around $39.10 with a P/E ratio of 86.93 and P/S ratio of 10.43.

CEO Recent Trades:

CEO, President and Chairman, 10% Owner Langley Steinert sold 176,109 shares of CARG stock on 02/07/2019 at the average price of $41.17. The price of the stock has decreased by 5.03% since.CEO, President and Chairman, 10% Owner Langley Steinert sold 117,406 shares of CARG stock on 02/04/2019 at the average price of $42.52. The price of the stock has decreased by 8.04% since.CEO, President and Chairman, 10% Owner Langley Steinert sold 130,456 shares of CARG stock on 01/10/2019 at the average price of $35.32. The price of the stock has increased by 10.7% since.

Directors and Officers Recent Trades:

Chief Technology Officer Oliver Ian Chrzan sold 20,000 shares of CARG stock on 02/06/2019 at the average price of $41.44. The price of the stock has decreased by 5.65% since.Chief Technology Officer Oliver Ian Chrzan sold 20,000 shares of CARG stock on 01/30/2019 at the average price of $40.97. The price of the stock has decreased by 4.56% since.Chief Technology Officer Oliver Ian Chrzan sold 100,000 shares of CARG stock on 01/25/2019 at the average price of $40.29. The price of the stock has decreased by 2.95% since.Chief Technology Officer Oliver Ian Chrzan sold 20,000 shares of CARG stock on 01/23/2019 at the average price of $38.52. The price of the stock has increased by 1.51% since.Chief Technology Officer Oliver Ian Chrzan sold 20,000 shares of CARG stock on 01/16/2019 at the average price of $36.18. The price of the stock has increased by 8.07% since.

For the complete insider trading history of CARG, click here

.

Wetherby Asset Management Inc. Has $263,000 Stake in Yum China Holdings Inc (YUMC)

Wetherby Asset Management Inc. reduced its position in shares of Yum China Holdings Inc (NYSE:YUMC) by 6.4% in the 4th quarter, Holdings Channel reports. The firm owned 7,851 shares of the company’s stock after selling 535 shares during the period. Wetherby Asset Management Inc.’s holdings in Yum China were worth $263,000 at the end of the most recent reporting period.

Other hedge funds have also recently made changes to their positions in the company. YHB Investment Advisors Inc. grew its position in shares of Yum China by 43.3% during the 3rd quarter. YHB Investment Advisors Inc. now owns 70,513 shares of the company’s stock worth $2,476,000 after buying an additional 21,290 shares during the period. Coronation Fund Managers Ltd. grew its position in shares of Yum China by 75.9% during the 3rd quarter. Coronation Fund Managers Ltd. now owns 2,448,572 shares of the company’s stock worth $85,969,000 after buying an additional 1,056,213 shares during the period. Atlas Capital Advisors LLC acquired a new stake in shares of Yum China during the 3rd quarter worth approximately $139,000. KEYWISE CAPITAL MANAGEMENT Ltd acquired a new stake in shares of Yum China during the 4th quarter worth approximately $1,398,000. Finally, Creative Planning grew its position in shares of Yum China by 1.7% during the 3rd quarter. Creative Planning now owns 168,686 shares of the company’s stock worth $5,923,000 after buying an additional 2,900 shares during the period. 77.17% of the stock is owned by hedge funds and other institutional investors.

Get Yum China alerts:

Yum China stock traded up $0.50 during midday trading on Thursday, hitting $41.61. 25,673 shares of the stock were exchanged, compared to its average volume of 1,954,884. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.72 and a quick ratio of 1.49. Yum China Holdings Inc has a 52 week low of $30.10 and a 52 week high of $45.30. The firm has a market capitalization of $15.74 billion, a price-to-earnings ratio of 27.14, a PEG ratio of 2.87 and a beta of 0.70.

Yum China (NYSE:YUMC) last announced its quarterly earnings results on Thursday, January 31st. The company reported $0.12 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.07 by $0.05. Yum China had a net margin of 8.41% and a return on equity of 19.39%. The firm had revenue of $1.91 billion for the quarter, compared to analyst estimates of $1.94 billion. As a group, analysts predict that Yum China Holdings Inc will post 1.61 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 21st. Shareholders of record on Thursday, February 28th will be paid a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a yield of 1.15%. The ex-dividend date is Wednesday, February 27th. Yum China’s payout ratio is currently 31.37%.

Several research firms recently weighed in on YUMC. Zacks Investment Research raised shares of Yum China from a “sell” rating to a “hold” rating in a research note on Monday. TheStreet raised shares of Yum China from a “c+” rating to a “b” rating in a research note on Thursday, January 24th. Finally, Bank of America raised shares of Yum China from an “underperform” rating to a “neutral” rating and lifted their price objective for the stock from $34.00 to $35.00 in a research note on Wednesday, October 31st. Five analysts have rated the stock with a hold rating and one has issued a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average target price of $38.67.

In other Yum China news, insider Riu Sun sold 8,405 shares of Yum China stock in a transaction that occurred on Monday, November 12th. The shares were sold at an average price of $36.50, for a total value of $306,782.50. Following the transaction, the insider now owns 9,942 shares of the company’s stock, valued at $362,883. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Ted Lee sold 3,795 shares of Yum China stock in a transaction that occurred on Wednesday, November 14th. The shares were sold at an average price of $36.26, for a total transaction of $137,606.70. Following the completion of the transaction, the insider now directly owns 1,863 shares in the company, valued at approximately $67,552.38. The disclosure for this sale can be found here. Insiders own 0.37% of the company’s stock.

TRADEMARK VIOLATION WARNING: “Wetherby Asset Management Inc. Has $263,000 Stake in Yum China Holdings Inc (YUMC)” was originally reported by Ticker Report and is owned by of Ticker Report. If you are reading this piece on another publication, it was illegally stolen and reposted in violation of U.S. & international copyright law. The correct version of this piece can be viewed at https://www.tickerreport.com/banking-finance/4134179/wetherby-asset-management-inc-has-263000-stake-in-yum-china-holdings-inc-yumc.html.

About Yum China

Yum China Holdings, Inc owns, operates, and franchises restaurants in China. The company operates in two segments, KFC and Pizza Hut. It operates restaurants under the KFC, Pizza Hut, Taco Bell, East Dawning, and Little Sheep brands, which specialize in chicken, pizza, hot pot cooking, Chinese food, and Mexican-style food categories.

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Top 10 Insurance Stocks To Own Right Now

tags:PRU,AIG,AON,TOP,WRB,PFG,

Editor's note: Seeking Alpha is proud to welcome Charlie Evreux as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to the SA PRO archive. Click here to find out more »

Willis Towers Watson (WLTW) has just been granted a licence to operate in China. With expansion into new territory afoot for the recently-merged company, WLTW is showing underlying strength compared to competitors.

Since the merger of Willis and Towers Watson in 2016, the combined company has gone from strength to strength.

It was announced on 15th May that Willis Towers Watson has become the first global broker to be fully licensed to transact insurance business in China.

To be the first foreign broker breaking ground in China is a huge competitive advantage.

WLTW has been granted access to an insurance market in a country with more than 1.3 billion people. Further to this, the Chinese insurance landscape is highly concentrated at the moment. 50% of the market is controlled by just three players. The scope for a smaller player to break the mould is large.

Top 10 Insurance Stocks To Own Right Now: Prudential Financial Inc.(PRU)

Advisors' Opinion:

• [By Ethan Ryder]

  DNB Asset Management AS grew its holdings in shares of Prudential Financial Inc (NYSE:PRU) by 4.6% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 102,905 shares of the financial services provider’s stock after acquiring an additional 4,555 shares during the period. DNB Asset Management AS’s holdings in Prudential Financial were worth $10,426,000 as of its most recent SEC filing.

• [By Logan Wallace]

  Flinton Capital Management LLC grew its holdings in Prudential Financial Inc (NYSE:PRU) by 9.0% during the second quarter, HoldingsChannel.com reports. The fund owned 46,032 shares of the financial services provider’s stock after purchasing an additional 3,808 shares during the quarter. Flinton Capital Management LLC’s holdings in Prudential Financial were worth $4,304,000 at the end of the most recent quarter.

• [By Joseph Griffin]

  These are some of the headlines that may have effected Accern Sentiment Analysis’s analysis:

  Get Prudential Financial alerts: Prudential (PUK) Presents At 2018 Deutsche Bank Annual Global Financial Services Conference – Slideshow (seekingalpha.com) Leston Welsh joins Prudential Group Insurance as head of Disability and Absence Management (finance.yahoo.com) Contrasting Prudential Financial (PRU) & Old Mutual (ODMTY) (americanbankingnews.com) Prudential again accused with unauthorised money deduction (vir.com.vn) An Application for the Trademark "MULLINTBG" Has Been Filed by Prudential Insurance Company (insurancenewsnet.com)

  Prudential Financial traded down $5.05, hitting $94.97, during midday trading on Tuesday, MarketBeat Ratings reports. 2,919,216 shares of the company’s stock were exchanged, compared to its average volume of 2,144,103. The company has a current ratio of 0.12, a quick ratio of 0.12 and a debt-to-equity ratio of 0.35. The firm has a market cap of $42.01 billion, a PE ratio of 8.98, a P/E/G ratio of 0.97 and a beta of 1.52. Prudential Financial has a one year low of $94.51 and a one year high of $127.14.

• [By Ethan Ryder]

  State of Tennessee Treasury Department lessened its position in Prudential Financial Inc (NYSE:PRU) by 29.7% during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 312,450 shares of the financial services provider’s stock after selling 132,238 shares during the period. State of Tennessee Treasury Department owned approximately 0.07% of Prudential Financial worth $32,354,000 at the end of the most recent reporting period.

• [By Joseph Griffin]

  Redpoint Investment Management Pty Ltd decreased its position in shares of Prudential Financial Inc (NYSE:PRU) by 21.9% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 35,233 shares of the financial services provider’s stock after selling 9,907 shares during the quarter. Redpoint Investment Management Pty Ltd’s holdings in Prudential Financial were worth $3,295,000 as of its most recent filing with the Securities & Exchange Commission.

• [By Stephan Byrd]

  Sentinel Trust Co. LBA lifted its stake in shares of Prudential Financial Inc (NYSE:PRU) by 18.0% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 65,450 shares of the financial services provider’s stock after buying an additional 9,980 shares during the quarter. Prudential Financial comprises 1.4% of Sentinel Trust Co. LBA’s portfolio, making the stock its 15th largest position. Sentinel Trust Co. LBA’s holdings in Prudential Financial were worth $6,120,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Top 10 Insurance Stocks To Own Right Now: American International Group Inc.(AIG)

Advisors' Opinion:

• [By Stephan Byrd]

  Suntrust Banks Inc. boosted its position in shares of American International Group Inc (NYSE:AIG) by 12.4% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 36,736 shares of the insurance provider’s stock after purchasing an additional 4,048 shares during the period. Suntrust Banks Inc.’s holdings in American International Group were worth $1,998,000 at the end of the most recent reporting period.

• [By Joseph Griffin]

  American International Group Inc (NYSE:AIG) announced a quarterly dividend on Thursday, August 2nd, RTT News reports. Stockholders of record on Monday, September 17th will be paid a dividend of 0.32 per share by the insurance provider on Friday, September 28th. This represents a $1.28 annualized dividend and a dividend yield of 2.32%.

• [By ]

  The next day, the federal government announced that it was bailing out insurance and financial giant AIG (NYSE: AIG) to the tune of $85 billion in the form of a two-year loan, making Uncle Sam an 80% equity holder in the firm. Later, terms of the deal were revised to the government purchasing $45 billion in AIG preferred stock with TARP (Troubled Asset Relief Program) funds and the Federal Reserve purchasing $52.5 billion in mortgage-backed securities, which allowed the troubled insurer to unwind its soured credit default swap book in an orderly fashion.

• [By Logan Wallace]

  Sentry Investment Management LLC lessened its holdings in American International Group (NYSE:AIG) by 8.6% during the first quarter, HoldingsChannel reports. The firm owned 64,968 shares of the insurance provider’s stock after selling 6,147 shares during the quarter. Sentry Investment Management LLC’s holdings in American International Group were worth $3,536,000 at the end of the most recent reporting period.

• [By Logan Wallace]

  Gifford Fong Associates acquired a new position in shares of American International Group (NYSE:AIG) in the first quarter, according to its most recent 13F filing with the SEC. The institutional investor acquired 44,100 shares of the insurance provider’s stock, valued at approximately $2,400,000.

Top 10 Insurance Stocks To Own Right Now: Aon Corporation(AON)

Advisors' Opinion:

• [By Motley Fool Transcribing]

  Aon (NYSE:AON) Q4 2018 Earnings Conference CallFeb. 1, 2019 8:30 a.m. ET

  Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:

  Operator

• [By Stephan Byrd]

  US Bancorp DE raised its stake in shares of Aon (NYSE:AON) by 3.0% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 40,448 shares of the financial services provider’s stock after acquiring an additional 1,178 shares during the quarter. US Bancorp DE’s holdings in AON were worth $5,676,000 as of its most recent filing with the SEC.

• [By Max Byerly]

  Aon PLC (NYSE:AON) Director Jeffrey C. Campbell acquired 5,550 shares of the company’s stock in a transaction dated Monday, August 6th. The shares were purchased at an average cost of $143.84 per share, for a total transaction of $798,312.00. Following the purchase, the director now directly owns 7,084 shares in the company, valued at $1,018,962.56. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link.

Top 10 Insurance Stocks To Own Right Now: Topdanmark A/S (TOP)

Advisors' Opinion:

• [By Max Byerly]

  TopCoin (CURRENCY:TOP) traded flat against the U.S. dollar during the one day period ending at 7:00 AM E.T. on September 8th. In the last seven days, TopCoin has traded flat against the U.S. dollar. TopCoin has a total market capitalization of $0.00 and $0.00 worth of TopCoin was traded on exchanges in the last day. One TopCoin coin can now be bought for about $0.0008 or 0.00000010 BTC on major cryptocurrency exchanges.

• [By Logan Wallace]

  TopCoin (CURRENCY:TOP) traded down 15.4% against the dollar during the 1-day period ending at 7:00 AM E.T. on June 21st. During the last seven days, TopCoin has traded up 4% against the dollar. TopCoin has a market cap of $0.00 and approximately $123.00 worth of TopCoin was traded on exchanges in the last day. One TopCoin coin can currently be bought for about $0.0010 or 0.00000015 BTC on popular exchanges.

Top 10 Insurance Stocks To Own Right Now: W.R. Berkley Corporation(WRB)

Advisors' Opinion:

• [By Joseph Griffin]

  W. R. Berkley Corp (NYSE:WRB) has received a consensus rating of “Hold” from the eleven brokerages that are presently covering the stock, Marketbeat Ratings reports. Five analysts have rated the stock with a sell rating, five have assigned a hold rating and one has given a buy rating to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $69.33.

• [By Stephan Byrd]

  Gilder Gagnon Howe & Co. LLC cut its holdings in W. R. Berkley Corp (NYSE:WRB) by 6.4% in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 61,225 shares of the insurance provider’s stock after selling 4,153 shares during the quarter. Gilder Gagnon Howe & Co. LLC owned 0.05% of W. R. Berkley worth $4,433,000 at the end of the most recent quarter.

• [By Joseph Griffin]

  Get a free copy of the Zacks research report on W. R. Berkley (WRB)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

Top 10 Insurance Stocks To Own Right Now: Principal Financial Group Inc(PFG)

Advisors' Opinion:

• [By Joseph Griffin]

  Sawtooth Solutions LLC bought a new position in Principal Financial Group Inc (NYSE:PFG) during the second quarter, according to its most recent Form 13F filing with the SEC. The firm bought 17,428 shares of the financial services provider’s stock, valued at approximately $922,000.

• [By Max Byerly]

  Glenmede Trust Co. NA cut its holdings in Principal Financial Group Inc (NYSE:PFG) by 61.1% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 235,266 shares of the financial services provider’s stock after selling 369,372 shares during the period. Glenmede Trust Co. NA owned 0.08% of Principal Financial Group worth $12,458,000 as of its most recent SEC filing.

• [By Shane Hupp]

  These are some of the news articles that may have impacted Accern’s scoring:

  Get Principal Financial Group alerts: Principal Financial Group (PFG) Approves New $300M Buyback (streetinsider.com) Principal Financial Group (PFG) Announces Share Repurchase Plan (americanbankingnews.com) Is Principal Large Cap Growth I Institutional (PLGIX) a Strong Mutual Fund Pick Right Now? (finance.yahoo.com) Principal Financial Group is Oversold (nasdaq.com) Principal Names New Chief Human Resources Officer (finance.yahoo.com)

  Several equities analysts have recently commented on PFG shares. Morgan Stanley decreased their target price on Principal Financial Group from $79.00 to $77.00 and set an “equal weight” rating on the stock in a research report on Thursday, April 5th. Wells Fargo reaffirmed a “market perform” rating and issued a $76.00 target price on shares of Principal Financial Group in a research report on Monday, January 8th. Credit Suisse Group started coverage on Principal Financial Group in a research report on Wednesday, April 25th. They issued a “neutral” rating and a $62.00 target price on the stock. Bank of America started coverage on Principal Financial Group in a research report on Monday, March 26th. They issued a “neutral” rating and a $65.00 target price on the stock. Finally, UBS started coverage on Principal Financial Group in a research report on Friday, March 2nd. They issued a “neutral” rating and a $69.00 target price on the stock. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and three have issued a buy rating to the company. Principal Financial Group currently has an average rating of “Hold” and an average price target of $71.18.

• [By Joseph Griffin]

  KBC Group NV lowered its position in shares of Principal Financial Group Inc (NYSE:PFG) by 41.4% in the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 201,808 shares of the financial services provider’s stock after selling 142,313 shares during the period. KBC Group NV’s holdings in Principal Financial Group were worth $12,292,000 as of its most recent filing with the SEC.

3 Things to Watch at Cameco in 2019

It's been almost eight years since the Fukushima Daiichi nuclear disaster in Japan rattled the global uranium and nuclear industries, but the fallout lingers to this day. All things considered, the management team at Cameco (NYSE:CCJ) has done a remarkable job navigating the persistent headwinds. Shares of the uranium miner and fuel fabricator are down only 2% in the past three years.

A tendency to make the correct and often difficult decisions time and again is paying off. For instance, last year Cameco made the difficult decision to suspend operations and lay off workers at one of the world's largest uranium mines to preserve the balance sheet for the long haul. Its long-term supply contracts, entered into years ago, have allowed the business to realize some of the highest uranium selling prices in the world. And as those expire, management is holding off on signing new ones at the market's current low prices in an attempt to force customers to properly value the atomic fuel source. Simply put, long-term thinking is dominating each decision.

This year may be the year it all pays off. Global uranium prices finally began to recover in the second half of 2018, which could create an opportunity for the industry leader. Here are three things for investors to watch for from Cameco in 2019.

Image source: Getty Images.

1. Market purchases of uranium

Cameco management spent years telling investors that the uranium market couldn't possibly remain in the gutter forever. That was difficult to believe as uranium prices continued to find new lows, but the market may have bottomed out.

In April 2018, uranium spot prices -- lower than prices the company earns from long-term supply arrangements -- hit $21 per pound. While that wasn't the lowest price since 2011, the important thing is that prices have increased in seven of the nine months since. The spot price for the week ending Jan. 21 of this year was $28.80 per pound, or 37% higher than rates from April 2018. 

Not surprisingly, Cameco shares have gained 32% in that span. That's because the trajectory of selling prices is a good indicator that the global supply glut is finally being cleared out -- and the miner is certainly doing its part to keep the trend going in the right direction. In addition to curtailing its own production and drawing down inventory last year, it also expected to purchase up to 3 million pounds of product from the market. In 2019 it expects to purchase as much as 12 million pounds of uranium from the market. Recent data suggest sticking to that plan will work out for shareholders. 

Image source: Getty Images.

2. The pace of Japanese reactor restarts

The Fukushima Daiichi nuclear disaster in Japan was both indirectly and directly responsible for the current state of the uranium and nuclear industries. For instance, it tainted the political and social goodwill nuclear energy had built up as a clean energy source. The catastrophe was the main reason Germany decided to send its 17 nuclear reactors to an early retirement. They'll all be offline by 2022.

More devastating for Cameco, the disaster also led to a temporary moratorium on nuclear energy in Japan. Consider that Japan had 54 operating nuclear reactors, representing approximately 13% of the global total, before the disaster. Each was taken offline. At least 20 will be permanently decommissioned.

The silver lining is that as many as 34 reactors will restart in Japan -- and the pace is picking up. While only four nuclear reactors were restarted from 2015 to 2017, five were restarted in 2018 alone. Another six reactors have received regulatory approval to restart and another 12 reactors are being reviewed by regulators. That will provide a significant shot in the arm for Cameco. After all, it's easier to restart an idled reactor than build a new one.  

Image source: Getty Images.

3. Will Chinese growth matter?

China inevitably comes up in any discussion about the future of uranium ore and nuclear energy. That's not too surprising. The country began furiously building nuclear reactors years ago in a push to have 58,000 megawatts of atomic power capacity online by 2025. It's close to achieving its goal.

After bringing eight new reactors online since the end of 2017 (the only other country to add capacity in that span was Russia, with two reactors), China has climbed into third place on the global leaderboard of operating nuclear capacity. Its 42,800 megawatts ranks only behind France (63,130 megawatts) and the United States (99,333 megawatts). It has another 10,860 megawatts under construction, which is nearly twice the next most ambitious country. 

The not-so-obvious question for Cameco and its shareholders is, does China matter to the business? While one might assume that China will tip the scales of the global market by increasing demand for uranium, that's not exactly a slam-dunk assumption. The country has increasingly turned to Kazakhstan, not Canada (read: Cameco), for its uranium supply. Much of that uranium supply is new, meaning Chinese consumption might not affect the global market at all, but rather be contained within its own closed-loop market with Kazakhstan.

It's an important question to answer. After all, without Chinese reactor growth, the global nuclear industry is expected to lose ground for decades to come.

Image source: Getty Images.

A big year for Cameco

A global price recovery that began in May 2018 has helped to lift Cameco shares 32% in the past nine months. Considering management's recent decisions to address the uranium supply glut, the positive trajectory of selling prices could continue this year. Couple that with the potential for as many as (or more than) six nuclear reactors to restart in Japan in 2019 and it could be a pretty big year for the business. That said, management needs to provide a more detailed look into how -- or if -- China's atomic ambitious will affect the business. That may end up significantly limiting the company's growth potential.

Galaxy eSolutions (GES) Trading Down 9.3% This Week

Galaxy eSolutions (CURRENCY:GES) traded up 22.9% against the US dollar during the 1-day period ending at 16:00 PM E.T. on October 12th. One Galaxy eSolutions token can now be bought for about $0.0017 or 0.00000028 BTC on popular exchanges. Over the last seven days, Galaxy eSolutions has traded 9.3% lower against the US dollar. Galaxy eSolutions has a market cap of $0.00 and $6.00 worth of Galaxy eSolutions was traded on exchanges in the last 24 hours.

Here is how related cryptocurrencies have performed over the last 24 hours:

Get Galaxy eSolutions alerts: Quant (QNT) traded down 11.3% against the dollar and now trades at $1.01 or 0.00016182 BTC. Qubitica (QBIT) traded down 0.4% against the dollar and now trades at $3.08 or 0.00049342 BTC. ZPER (ZPR) traded up 0.8% against the dollar and now trades at $0.0044 or 0.00000070 BTC. FNKOS (FNKOS) traded 10.2% higher against the dollar and now trades at $0.0335 or 0.00000536 BTC. LocalCoinSwap (LCS) traded down 3.6% against the dollar and now trades at $0.11 or 0.00001728 BTC. ZMINE (ZMN) traded up 6% against the dollar and now trades at $0.0217 or 0.00000347 BTC. AiLink Token (ALI) traded 14.5% higher against the dollar and now trades at $0.0010 or 0.00000016 BTC. DOWCOIN (DOW) traded 0.3% higher against the dollar and now trades at $0.30 or 0.00004746 BTC. Cryptosolartech (CST) traded up 0.8% against the dollar and now trades at $0.0183 or 0.00000293 BTC. Soniq (SONIQ) traded up 0.3% against the dollar and now trades at $0.0254 or 0.00000406 BTC.

About Galaxy eSolutions

Galaxy eSolutions (CRYPTO:GES) is a token. It was first traded on November 17th, 2017. Galaxy eSolutions’ total supply is 300,000,000 tokens. Galaxy eSolutions’ official message board is medium.com/@GalaxyeSolution. Galaxy eSolutions’ official website is galaxy-esolutions.com. Galaxy eSolutions’ official Twitter account is @Galaxye_eSol and its Facebook page is accessible here.

Galaxy eSolutions Token Trading

Galaxy eSolutions can be purchased on these cryptocurrency exchanges: Bancor Network. It is usually not presently possible to purchase alternative cryptocurrencies such as Galaxy eSolutions directly using US dollars. Investors seeking to trade Galaxy eSolutions should first purchase Bitcoin or Ethereum using an exchange that deals in US dollars such as Gemini, GDAX or Coinbase. Investors can then use their newly-acquired Bitcoin or Ethereum to purchase Galaxy eSolutions using one of the exchanges listed above.

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