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The S&P 500 (SPY) is making new highs and yet some experts are still trying to scare investors that a bear market is looming. 44 year investment expert Steve Reitmeister tackles this subject to show why there should be more good times ahead for stock investors. Read on for the full story…The theme in last week’s commentary was that, once again, mega caps are leading the way and smaller stocks are lagging behind. This explains how the S&P 500 (SPY) was making new highs in early October and yet the small caps in the Russell 2000 were actually in the red.
Gladly since then…the script has flipped.
The Russell 2000 has surged by nearly 5% week over week well ahead of the other large cap indices. This is a trend that should continue to play out in 2025 after four straight years of underperformance by small stocks. That trend is not built to last.
We will talk about that and more in today’s commentary.
Market Outlook
Give me a reason to be bearish.
I know its popular to be a “devil’s advocate” and take the opposing side of an argument. But right now, it’s pretty hard to come up with a bearish argument with a straight face.
The US economy continues to expand at a healthy clip. Most experts see another 2 to 3% of growth in the 3rd quarter. And with the Fed adding accommodation to the economy via rate cuts…then it’s hard to imagine a recession unfolding any time soon.
If one want’s to be a stickler they could point out that recent inflation reports have come in higher than expected and that could postpone the Fed’s rate cut intentions. I spoke about that in my previous commentary from earlier this week: Are Rising Bond Rates Bad News for Stocks?
The solution to that from the Fed would be to pause longer on the next rate cut as the current level is still restrictive. That would further lower demand to tamp down inflation.
If it did slow the economy, then that would be all the more reason for the Fed to then speed up the pace of rate cuts which investors would cheer with ample buying.
Meaning we are kind of in a Goldilocks period on the economic front where bad news is good news because it would lead to more Fed accommodation. And as the saying goes “Don’t Fight the Fed”.
Please don’t take the above to mean that we are in a runaway bull market that is only going to go up and up and up.
That was basically the case the past 2 years…but that is pretty typical behavior for a new bull market which bounces with gusto from extreme lows (like we had in October 2022).
Now 2 years later the S&P 500 has rallied over 60% and it’s fair to say that most large cap stocks are fully valued (average PE of nearly 22). There is not much more air in that balloon before value investors start crying about a bubble.
The more rational thing to do is for investors to look beyond the safety of large caps to find more value in the small and mid cap space where the average PE is under 16. Not only is that much more attractive than the pricing of large caps…but is also under the long term average.
The key word here is “rational”. As in reasonable. As in logical.
But in the short run the market can avoid these labels for a long time.
As the famed economist, John Maynard Keynes once said…
“The market can stay irrational longer than you can stay solvent”
So, it is reasonable to assume that investors will seek more value in the year ahead and that will lead them to smaller stocks. Unfortunately, it is also possible that investors keep hitting the “Easy Button” with the usual suspects in the large and mega cap space until they reach bubble proportions.
My investment plan will always seek value. And that has me overweighting my portfolio with smaller stocks. And I can be patient to wait for whenever rationality is restored to stock investment decisions. And when that happens we will beat the stuffing out of the market.
Gladly in the meantime our portfolio is doing impressively well. More details below…
What To Do Next?
Discover my current portfolio of 11 stocks packed to the brim with the outperforming benefits found in our exclusive POWR Ratings model. (Nearly 4X better than the S&P 500 going back to 1999).
All of these hand selected picks are all based on my 44 years of investing experience seeing bull markets…bear markets…and everything between.
And right now this portfolio is beating the stuffing out of the market.
If you are curious to learn more, and want to see my 11 timely stock recommendations, then please click the link below to get started now.
Steve Reitmeister’s Trading Plan & Top 11 Stocks >
Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
CEO, StockNews.com and Editor, Reitmeister Total Return

SPY shares were trading at $583.82 per share on Friday morning, up $1.47 (+0.25%). Year-to-date, SPY has gained 23.99%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve ReitmeisterSteve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.More…The post Investors…Why Be Bearish? appeared first on StockNews.com

The luxury retail industry’s robust growth is being fueled by the increasing dominance of high-net-worth individuals and growing wealth inequality. In this environment, purchasing luxury retail stocks like Dillard’s (DDS), Tapestry (TPR), and Signet Jewelers (SIG) could be a smart move as high-end spending continues to rebound. Read on…The rising number of affluent individuals, coupled with increased demand for luxury fashion products, is significantly driving growth in the luxury retail sector. This trend is benefiting the industry by expanding its high-spending customer base, which consistently seeks premium goods, contributing to market expansion and brand profitability.
Against this backdrop, investors could capitalize by grabbing shares of fundamentally strong luxury retail stocks like Dillard’s, Inc. (DDS), Tapestry Inc. (TPR), and Signet Jewelers Limited (SIG). These companies are strategically positioned to benefit from the growing spending power of wealthy consumers, who are driving demand for exclusive, high-end products.
Several factors, including a rising affluent consumer base, an increasing desire for exclusivity, and the importance of brand value, are pushing the luxury market upward. According to Bain, the top 2% of luxury consumers drive 40% of luxury sales, underscoring the significance of this customer segment for the industry.
A rising wealth inequality is also a contributing factor for the industry’s growth. Over the past 60 years, wealth has shifted dramatically from the middle class to the wealthiest families, exacerbating inequality, particularly in America. Recent research from Duke University highlights that a racial wealth gap is expanding, driven by deep-rooted racial and economic histories.
In this context of growing wealth inequality, luxury stocks are primed for growth. As the affluent class expands, their appetite for luxury goods intensifies, boosting sales and profits. This makes luxury brands an attractive investment choice for those looking for sustained financial returns.
According to Fortune Business Insights, the global luxury goods market is set to grow to $392.40 billion by 2030 at a CAGR of 4.7%. This growth reflects the increasing influence of technology and the expanding wealth of luxury consumers.
In light of these encouraging trends, let’s examine the fundamentals of three Fashion & Luxury stock picks, starting with #3.
Stock #3: Dillard’s, Inc. (DDS)
DDS is a fashion retailer with over 273 stores and a general contracting construction company. The company operates over 28 clearance centers and an online store at dillards.com. It also operates CDI Contractors, LLC, which works in store construction and remodeling.
DDS’ trailing-12-month gross profit margin of 41.20% is 9.9% higher than the 37.48% industry average. Its trailing-12-month levered FCF margin of 5.19% is 3.9% greater than the 5% industry average. Additionally, the stock’s ROCE and ROTA of 36.10% and 20.89% are 218.3% and 238.6% higher than the sector averages of 11.34% and 6.17% respectively.
For the fiscal 2024 second quarter that ended August 3, DDS reported net sales of $1.49 billion. Its net income came in at $74.50 million, while EPS stood at $4.59. In addition, as of August 3, 2024, the company’s cash and cash equivalents came in at $946.70 million, compared to $774.30 million as of July 29, 2023.
Analysts expect DDS’ revenue for the year ending January 2026 to increase marginally year-over-year to $6.51 billion. Moreover, its EPS is expected to be $29.93 for the same period. In addition, the company surpassed consensus EPS estimates in three of the trailing four quarters.
DDS’ stock has soared 7.7% over the past month and 24.2% over the past year to close the last trading session at $376.53.
DDS’ bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
DDS has an A grade for Quality and a B grade for Momentum and Value. It is ranked #18 in the 59-stock A-rated Fashion & Luxury industry.
Beyond what is stated above, we’ve also rated DDS for Growth, Stability, and Sentiment. Get all DDS ratings here.
Stock #2: Tapestry Inc. (TPR)
TPR is a global powerhouse with iconic accessories and lifestyle brands like Coach, Kate Spade New York, and Stuart Weitzman that offer women’s handbags, women’s accessories, men’s products, and more.
TPR’s trailing-12-month EBITDA margin of 21.44% is 88.5% higher than the industry average of 11.37%. Moreover, the stock’s trailing-12-month gross profit margin of 73.29% is 95.5% higher than the sector average of 37.48%. Likewise, its trailing-12-month net income margin of 12.23% is 163.6% higher than the industry average of 4.64%.
For the fiscal 2024 fourth quarter that ended on June 29, TPR’s net sales came in at $1.59 billion. Its gross profit rose 1.6% year-over-year to $1.19 billion. Moreover, the company’s net income amounted to $159.30 million, or $0.68 per share. As of June 29, 2024, its total assets stood at $13.40 billion, compared to $7.12 billion as of July 1, 2023.
Street expects TPR’s revenue for the fiscal year ending June 2025 to marginally increase year-over-year to $6.70 billion. Its EPS for the ongoing period is expected to rise 4.5% from the previous year to $4.48. Plus, the company surpassed its consensus EPS estimates in all four trailing quarters.
TPR’s stock has soared 10.7% over the past six months and 63.8% over the past year to close the last trading session at $45.20.
TPR’s POWR Ratings reflect its optimistic outlook. It has an overall rating of B, which equates to Buy in our proprietary rating system.
TPR has a B grade for Sentiment and Quality. It is ranked #17 out of 59 stocks in the Fashion & Luxury industry.
Beyond what we stated above, we have also given TPR grades for Growth, Value, Momentum, and Stability. Get all the TPR ratings here.
Stock #1: Signet Jewelers Limited (SIG)
Based in Hamilton, Bermuda, SIG is a diamond jewelry retailer with segments comprising North America; International; and Other. The company operates approximately 2,700 stores under the brands Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, Blue Nile, JamesAllen.com, Rocksbox, and more.
SIG’s trailing-12-month levered FCF margin of 6.25% is 25.2% higher than the 5% industry average. Its trailing-12-month EBIT margin of 7.94% is marginally higher than the 7.89% industry average. Likewise, the stock’s trailing-12-month gross profit margin of 39.49% is 5.4% higher than the industry average of 37.48%.
For the fiscal 2025 second quarter that ended August 3, SIG’s sales were reported to be $1.49 billion. Its adjusted operating income came in at $68.60 million. The company’s adjusted EPS also came in at $1.25. As of August 3, 2024, the company’s total current assets amounted to $2.58 billion.
The consensus revenue estimate of $6.93 billion for the fiscal year ending January 2026 reflects a rise of 2% year-over-year. Its EPS for the next fiscal year is estimated to grow 6.9% from the previous year to $11.26. Furthermore, the company topped the consensus EPS estimates in each of the four trailing quarters, which is noteworthy.
SIG’s stock has gained 14.8% over the past three months and 43.7% over the past year to close the last trading session at $99.53.
SIG’s solid fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, translating to Buy in our proprietary rating system.
SIG has a B grade for Value, Growth, and Quality. Within the same industry, it is ranked #16 out of 59 stocks.
To see additional POWR Ratings for Momentum, Stability, and Sentiment for SIG, click here.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these “death trap” stocks are lurking in your portfolio:
10 Stocks to SELL NOW! >

TPR shares were unchanged in premarket trading Wednesday. Year-to-date, TPR has gained 25.78%, versus a 23.13% rise in the benchmark S&P 500 index during the same period.
About the Author: Aanchal SugandhAanchal’s passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor’s degree in finance and is pursuing the CFA program.

She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.More…The post 3 Luxury Retail Stocks to Buy as High-End Spending Rebounds appeared first on StockNews.com

Why have bond rates risen ever since the Fed said they would could rates? And what does that mean for the S&P 500 (SPY) after making recent highs? Answering those 2 questions will be at the heart of Steve Reitmeister latest market commentary. Read on for more…Rising stock prices is a magical eraser that removes a lot of worry for investors. However, it must be a curiosity to a lot of you how the Fed could start rate cuts and yet bond yields have moved higher…actually quite a bit higher.
We will dive into this oddity today along with what it means for the market outlook and my year end S&P 500 (SPY) target.
Market Outlook
Let’s begin with this vital data point. The average 10 Year Treasury yield going back 4 decades is 3.87%.
If we went back further to include the hyper inflation days of the early 1980’s it would be much higher. It would also be much higher if we removed the artificially low rates Bernanke’s Fed produced to put an end to the Great Recession and revive the economy. However, it is fair to say that about 4% is the long term average for the 10 Year Treasury.
So, without a deeper dive the 4.05% yield today is pretty much on par with the long term average and thus not a serious cause for concern.
Now let’s go a step further.
Why did rates fall to 3.6% into the Fed rate cut announcement…then the Fed tell us that 1.5% of additional cuts will likely be on the way by the end of 2025…and yet rates have spiked since then???

OK. It could simply be said “buy the rumor, sell the news”.
Or simply that the Treasury yield is simply returning to the historical average near 4%.
OR…it could be noted that recent inflation data has not been good and thus the pace of future rate cuts may be a lot slower than advertised.
Going back to Friday October 4th job gains were larger than expected. With that Average Hourly Earnings (aka Wage Inflation) increased to 4% when a drop to 3.8% year over year was expected. Meaning this sticky form of inflation is not fading away as it should be.
This was later corroborated in the 10/10 CPI report where Core Inflation increased to 3.3% year over year. Another sticky form of inflation (housing/shelter) was also not easing as much as hoped for.
It did not help that on the next day the core reading for PPI rose from 2.6% to 2.8% year over year. Remember that PPI is the forward looking indicator of what shows up in CPI down the road.
Oddly investors took in all this rising inflation data and still believe that rates will be cut another 25 points at the next Fed meeting on 11/7. In fact, right now the odds point to 91.6% chance.
Put me in the 8.4% who see no rate forthcoming in November.
The Fed are patient and slow moving academics who base each decision on the facts in hand. With the labor market strong…they don’t need to cut rates to support that part of their dual mission.
Instead, they will likely focus on the “stable prices” part of the mission and notice quite clearly that recent data is not moving towards 2% as intended. So they will likely keep rates unchanged in the hopes that it will further slow demand and get inflation moving lower once again.
Reity, does this change your stock market outlook?
Not really. Things are still pretty well on track with the ideas shared in my recent 2025 Stock Market Outlook.
The target of hitting 6,000 before the year ends is too tempting not to reach after the election is finalized plus the seasonal benefit of the Santa Claus rally.
However, after that I suspect a fairly lackluster year for the S&P 500 in 2025. This fits in with historical trends that year 3 of a bull market is often around 0%.
And fits in with the fact that the PE for large caps, especially mega caps, are fully valued by any reasonable standard (PE of 22 and 30 respectively when long term average is 18).
Gladly there is plenty of room to catch up in the small and mid cap space where the forward looking PE is only 15-16. Add in 4 years of underperformance for the group and 2025 should be their time to shine.
That is why I am leaning in heavily with these smaller stocks in the Reitmeister Total Return portfolio. It has led to strong results this year…especially of late. And fully expect our lead over the market to increase in the year ahead.
What To Do Next?
Discover my current portfolio of 11 stocks packed to the brim with the outperforming benefits found in our exclusive POWR Ratings model. (Nearly 4X better than the S&P 500 going back to 1999).
All of these hand selected picks are all based on my 44 years of investing experience seeing bull markets…bear markets…and everything between.
And right now this portfolio is beating the stuffing out of the market.
If you are curious to learn more, and want to see my 11 timely stock recommendations, then please click the link below to get started now.
Steve Reitmeister’s Trading Plan & Top 11 Stocks >
Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
CEO, StockNews.com and Editor, Reitmeister Total Return

SPY shares fell $0.21 (-0.04%) in after-hours trading Tuesday. Year-to-date, SPY has gained 23.13%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve ReitmeisterSteve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.More…The post Are Rising Bond Rates Bad News for Stocks? appeared first on StockNews.com

The S&P 500 (SPY) has been in the plus column for 5 straight months. Investment pro Steve Reitmeister shares why that party ends in October and how to prepare for resumption of the bull market in November and beyond. Read below for full story…The only conversation in September was Fed rate cuts.
The only conversation in October is the election which is leading to a pause in the bull market.
But soon we will get back to normal…that being a focus on the economic environment and what that means for earnings growth and how that translates to stock prices. So, let’s use our time today to review the economic outlook and what that means for stock prices.
Market Outlook
It’s easy to get lost in the cornucopia of economic data. So, the best place to start is with a picture of GDP. As long as that is healthy, then hard to get too hung up about a bad report here or there.
The most successful model in measuring GDP in the United States is GDPNow from the Atlanta Fed. That stands at a fairly robust +3.2% growth estimate for Q3. At this stage the model has well over 80% of the inputs for Q3…so it is not likely to change much.
Some of the most recent data is also very encouraging about the direction of the economy. ISM Services last Thursday being the most impressive with a showing of 54.9 which is well above the previous month at 51.5. Even better is the forward looking New Orders component soaring up to 59.4 which says more good times ahead.
This was a nice relief after another tepid ISM Manufacturing report on Tuesday that came in at 47.2…the same as the previous month. Yes, below 50 is a sign of contraction. But really that has been the case for manufacturing the majority of the last 2 years as rising rate environment is rarely good for industrials. That should improve going forward.
The stock market immediately celebrated the impressive job gains last Friday in the Government Employment Situation report. However, as the news washed over investors, they realized this was not such good news for inflation (especially given the uptick in Average Hourly Earnings to 4%). This may have the Fed being more cautious in their approach to rate cuts.
Bond investors are right now a bit more wise to this issue given how 10 year Treasury rates have actually gone up ever since the 9/18 Fed rate cut meeting. Instead of the recent low of 3.6% on the 10 year Treasury it is now back to 4%.
Yes, some will point out that 4% is basically the long term average and is not necessarily a bad thing. But it does seem odd that the Fed has talked about 1.5% in additional rate cuts between now and the end of 2025. Thus, to see the Treasuries move higher is a bit of a head scratcher.
Here are the key economic events on the horizon:
10/9 FOMC Minutes- investors will be looking for more clues of their plans for future rate cuts.
3 Inflation Reports: 10/10 CPI > 10/11 PPI > 10/31 PCE (trick or treat)- The overall trend has clearly been down for a while making the Fed feel comfortable in finally cutting rates. However, any more signs of sticky inflation, like the unwanted gain in Average Hourly Earnings, then the ever cautious Fed might be slower in rolling out future rate cuts. This would obviously be a negative for the stock market which is very much counting on this additional accommodation.
At this stage I see the 5 month winning streak for the S&P 500 (SPY) coming to an end in October. I am not talking about anything ominous. Just the Presidential election makes for a natural place for investors to press pause.
Pause doesn’t necessarily mean flat or calm. It might end up being a volatile month with a lot of sector rotation. That certainly has been the case so far in October.
Yet once the election results are in hand, I see a bull run resuming with 6,000 a very attractive target to reach by years end. Even better should be the gains for small and mid caps who still have a lot of room to play catch up with their large cap peers.
So I would lean into these smaller stocks. Especially in Risk On industries like industrials, materials, consumer discretionary, banks, auto, home building etc.
The big difference from the first couple years of this bull market should be a greater eye towards value as the nearly 22 PE for the S&P 500 says we are fully valued at this time.
Gladly small and mid caps are a more appealing 15-16 PE as a group. Again, this is why they should be the group that outperforms in the months, and likely years ahead.
Thankfully our POWR Ratings has a small cap bias…and a value bias. So we really are coming into the sweet spot for the top stocks selected by the system. This should lead to some great outperformance in the months ahead.
As always, my favorite POWR Ratings stocks are shared in the section below…
What To Do Next?
Discover my current portfolio of 11 stocks packed to the brim with the outperforming benefits found in our exclusive POWR Ratings model. (Nearly 4X better than the S&P 500 going back to 1999).
All of these hand selected picks are all based on my 44 years of investing experience seeing bull markets…bear markets…and everything between.
And right now this portfolio is beating the stuffing out of the market.
If you are curious to learn more, and want to see my 11 timely stock recommendations, then please click the link below to get started now.
Steve Reitmeister’s Trading Plan & Top 11 Stocks >
Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
CEO, StockNews.com and Editor, Reitmeister Total Return

SPY shares fell $0.37 (-0.06%) in after-hours trading Tuesday. Year-to-date, SPY has gained 21.73%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve ReitmeisterSteve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.More…The post October Stock Market: More Trick Than Treat? appeared first on StockNews.com

The wide availability of online content and social media platforms has fueled market competition among streaming service companies, resulting in rising media industry prospects. Therefore, investors could watchlist sound media stocks Apple (AAPL), Netflix (NFLX), and The Walt Disney (DIS) as streaming wars heat up. Keep reading…The increasing demand for digital content among consumers, growing internet penetration, and rising adoption of low-latency video streaming platforms have propelled the prospects for the streaming services market. The rising prevalence of impressive technologies like Gen AI further supports this trend.
Given this backdrop, investors could consider fundamentally sound entertainment stocks Apple Inc. (AAPL), Netflix, Inc. (NFLX), and The Walt Disney Company (DIS) to watch for now.
In today’s digital generation, where the internet is easily accessible, digital media consumption is surging rapidly. In a recent survey, it was discovered that 99% of all U.S. households pay for at least one or more streaming services. Also, notably, Americans spend about three hours and nine minutes a day on streaming digital media.
These consumption figures and growing demand have resulted in rigid competition among different media companies offering streaming services.
Besides, the global video streaming market is projected to grow to $2.66 trillion by 2032, exhibiting a CAGR of 18.7%. The market is currently driven by increasing demand for video-on-demand (VoD) streaming services, improving internet connectivity, and the popularity of social media platforms.
With these favorable trends in mind, let’s delve into the fundamentals of the three top entertainment stock choices mentioned above.
Apple Inc. (AAPL)
AAPL designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories globally. The company provides iPhone, Mac, iPad, wearables, home, and accessories including AirPods, Apple TV, Apple Watch, Beats products, and HomePod.
On September 9, AAPL introduced breakthrough sleep and hearing health features for its Apple Watch® and AirPods Pro® 2 to help customers support their sleep and hearing health for several medical conditions. The Hearing Aid feature helps make access to hearing assistance easier for the users.
The new technology will strengthen AAPL’s customer support, contribute to user well-being, and establish the company as a leader in health-focused technology.
On the same day, AAPL launched a new lineup of AirPods® models and features. The new AirPods 4 are the most advanced and comfortable headphones AAPL has created, offering an open-ear design, which comes in two distinct models: AirPods 4 and AirPods 4 with Active Noise Cancellation (ANC).
The company also introduced iPhone® 16 Pro and iPhone 16 Pro Max, featuring Apple Intelligence™, larger display sizes, new creative capabilities with innovative pro camera features, and stunning graphics for immersive gaming, and more, all powered by the A18 Pro chip.
AAPL’s total net sales increased 4.9% from the year-ago value to $85.78 billion during the third quarter that ended June 29, 2024. Its operating income increased 10.2% year-over-year to $25.35 billion. The company’s net income and EPS came in at $21.45 billion and $1.40, reflecting 7.9% and 11.1% growth from the prior year’s quarter, respectively.
Analysts expect AAPL’s revenue for the fourth quarter (ended September 2024) to grow 5.3% year-over-year to $94.21 billion. The company’s EPS is expected to increase 9.4% year-over-year to $1.60 for the same period. Moreover, the company surpassed the consensus revenue and EPS estimates in all of the trailing four quarters.
Shares of AAPL have surged 34.3% over the past six months and 30.6% over the past year to close the last trading session at $226.80.
AAPL’s bright prospects are reflected in its POWR Ratings. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
The stock has an A grade for Quality. Within the Technology – Hardware industry, AAPL is ranked #20 out of 42 stocks.
Click here to access additional ratings of AAPL for Value, Momentum, Growth, Sentiment, and Stability.
Netflix, Inc. (NFLX)
NFLX is an entertainment services provider. The company provides TV series, documentaries, feature films, and games across various genres and languages. It also allows its members to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.
NFLX’s trailing-12-month EBIT margin and net income margin of 23.82% and 19.54% are 151.7 % and 530.6% higher than the respective industry averages of 9.32% and 3.10%. Likewise, the stock’s trailing-12-month levered FCF margin of 55.22% is significantly higher than the industry average of 8.04%.
During the second quarter, which ended June 30, 2024, NFLX’s revenues increased 16.7% year-over-year to $9.56 billion. Its operating income grew 42.5% year-over-year to $2.60 billion. The company’s net income and EPS were $2.15 billion and $4.88, up 44.3% and 48.3% from the prior year’s quarter, respectively.
In addition, the company’s total assets stood at $49.10 billion as of June 30, 2024, compared to $48.73 billion as of December 31, 2023.
Analysts expect NFLX’s revenue for the third quarter (ended September 2024) to increase 14.3% year-over-year to $9.76 billion, while its EPS for the same quarter is expected to grow 37.1% year-over-year to $5.11. Also, NFLX has topped the consensus revenue estimates in each of the trailing four quarters.
NFLX’s shares have gained 16.6% over the past six months and 91% over the past year to close the last trading session at $719.70.
NFLX’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
The stock has an A grade for Quality and a B grade for Sentiment. Within the A-rated Internet industry, NFLX is ranked #17 among the 52 stocks.
In addition to the POWR Ratings we’ve stated above, we also have NFLX ratings for Stability, Momentum, Value, and Growth. Get all NFLX ratings here.
The Walt Disney Company (DIS)
DIS is a global entertainment company. The company operates through three segments: Entertainment; Sports; and Experiences. It produces and distributes film and television video streaming content under banners like ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels.
DIS’ trailing-12-month net income margin of 5.31% is 71.2% higher than the industry average of 3.10%. Further, the stock’s trailing-12-month EBIT margin and levered FCF margin of 12.93% and 9.19% are 38.7% and 14.4% higher than the industry averages of 9.32% and 8.04%, respectively.
For the third quarter that ended June 29, 2024, DIS’ total revenue increased 3.7% year-over-year to $23.16 billion. Its total segment operating income increased 18.7% from the year-ago value to $4.23 billion. Also, net income attributable to DIS was $2.62 billion, against a net loss of $460 million during the prior year’s quarter.
Furthermore, the company’s cash and cash equivalents and total assets stood at $5.95 billion and $197.77 billion as of June 29, 2024, respectively.
Street expects DIS’ revenue and EPS for the fourth quarter (ended September 2024) to increase 5.9% and 35.8% year-over-year to $22.49 billion and $1.11, respectively. Also, the company topped the consensus EPS estimate in all four trailing quarters, which is remarkable.
Shares of DIS have surged 5.9% over the past month and 20% over the past year to close the last trading session at $95.15.
DIS’ POWR Ratings reflect its sound fundamentals. The stock has a B grade for Sentiment and Growth. It is ranked #6 out of 12 stocks within the Entertainment – Media Producers industry.
In addition to the POWR Ratings we’ve stated above, we also have DIS ratings for Momentum, Quality, Value, and Stability. Get all DIS ratings here.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
3 Stocks to DOUBLE This Year >

AAPL shares were trading at $222.39 per share on Monday afternoon, down $4.41 (-1.94%). Year-to-date, AAPL has gained 15.95%, versus a 20.51% rise in the benchmark S&P 500 index during the same period.
About the Author: Rjkumari SaxenaRajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.More…The post 3 Media Stocks to Watch as Streaming Wars Heat Up appeared first on StockNews.com

The combination of high implied volatility along with near record stock prices and stock valuations sets up ideally for selling calls against your stock.Stock Prices
The Dow Jones Industrial Average (DJIA) just closed at another record high Friday. The S&P 500 is just a whisker below an all-time high as well. Both the NASDAQ 100 and Russell 2000 are within shouting distance of new highs too.

 
 
 
 
 
 
 
 
But the breakout towards all-time highs in stocks post-Fed 50bps rate cut has been less than convincing and certainly lacks conviction.
Stock Valuations
The current Price to Sales (P/S) for the S&P 500 is back over 3x. The highest this ratio ever got was 3.17x back in December 2021.

 
 
 
 
 
 
 
 
 
 
 
Of course, interest rates were much lower back in late 2021. The Federal Reserve hadn’t begun to raise rates yet.
Fed Funds were still at 0.00-0.25%. The 10-year Treasury yield was hovering around 1.5%.
Compare that to the current Fed Funds rate of 4.75-5.00% and 10-year yield just below 4%.
Higher rates almost always bring down stock valuation multiples. This time, however, multiples have expanded to near record extremes even in the face of higher rates.
Plus, last time P/S ratio got above 3x was right before stocks dropped over 20%. A little caution may certainly be warranted.
Implied Volatility (IV)
The most widely followed measure of IV is the VIX. It measures 30-day option implied volatility on the S&P 500.
Implied volatility is just a fancy way to say the price of options. Higher IV means higher option prices-both puts and calls.
Currently, VIX is trading just below 20.

 
 
 
 
 
 
 
 
 
As you can see in the chart above, VIX has rarely been higher than now. Also, those two times it was higher did not last that long either.
Interesting to note that the prior two IV spikes coincided with sharp pullbacks in stock prices, which is normally the case.
The latest spike in VIX, though, happened as stocks rallied back towards record highs.
Call prices become more expensive as stock prices head higher. Selling calls against a stock is better when stock prices are higher, like they are now. It is also better to sell calls when IV is higher, like now.
Higher stock prices and higher VIX do not happen that often at all. Now it an opportune time to take advantage of current high stock valuations, high stock prices and high option prices by selling calls against stock.
You give up some of the upside to hedge some of the downside. Not a bad trade-off given current conditions.
In addition, it can be done on individual stock names like Apple, Microsoft, Nvidia or any stock that has options.
This is the type of analysis we do day in and day out at POWR Options. Check it out using the links below.
 
POWR Options
What To Do Next?
If you’re looking for the best options trades for today’s market, you should check out our latest presentation How to Trade Options with the POWR Ratings. Here we show you how to consistently find the top options trades, while minimizing risk.
If that appeals to you, and you want to learn more about this powerful new options strategy, then click below to get access to this timely investment presentation now:
How to Trade Options with the POWR Ratings
All the Best!
 
Tim Biggam
Editor, POWR Options Newsletter

SPY shares closed at $572.98 on Friday, up $5.16 (+0.91%). Year-to-date, SPY has gained 21.69%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Tim BiggamTim spent 13 years as Chief Options Strategist at Man Securities in Chicago, 4 years as Lead Options Strategist at ThinkorSwim and 3 years as a Market Maker for First Options in Chicago. He makes regular appearances on Bloomberg TV and is a weekly contributor to the TD Ameritrade Network “Morning Trade Live”. His overriding passion is to make the complex world of options more understandable and therefore more useful to the everyday trader.

Tim is the editor of the POWR Options newsletter. Learn more about Tim’s background, along with links to his most recent articles.More…The post 3 Big Reasons Covered Calls Make Sense Now appeared first on StockNews.com

Amid mixed economic projections, investing in high-dividend yield stocks could be ideal for investors, as they offer regular income along with capital appreciation prospects. Hence, fundamentally sound high dividend yield stocks International Seaways (INSW), Buckle (BKE), and Movado Group (MOV) could be ideal buys to boost your portfolio this fall. Read more…During market volatility and economic uncertainties, investors tend to turn to reliable stocks like dividend stocks for stability, passive income, and potential opportunities for long-term gains. Investors can also benefit from the less volatile nature of high-dividend yield stocks.
Against this backdrop, it could be wise to invest in high-dividend yield stocks International Seaways, Inc. (INSW), The Buckle, Inc. (BKE), and Movado Group, Inc. (MOV) to boost your portfolio this fall.
Uncertainties lingering around the US economy have led to mixed outlooks for the upcoming period. Fluctuating inflation levels, tightening Federal Reserve policies to keep the economy in check, and rising unemployment rates have emerged as significant risks amid speculations of recession.
In the short-term, the US economy performed well. U.S. retail sales rose 0.1% in August as decline in auto dealerships were offset by strengthening online purchases, implying sound footing during the third quarter. Also, the beginning of the interest rate cuts lifted hopes.
However, the economy is expected to slow into 2025 as restrictive monetary policies and high costs continue to dampen private sector activity. Also, households are likely to spend more cautiously as labor market conditions and income growth weaken, while elevated financing costs may lead businesses to be more selective in hiring and investment. Real GDP growth is projected to average 2.7% in 2024 and ease to 1.8% in 2025.
Considering this trends, let’s delve into the fundamentals of the high dividend yield stocks that can provide a steady income stream.
International Seaways, Inc. (INSW)
INSW owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products in the international flag trade. The company operates through Crude Tankers and Product Carriers segments.
On August 6, INSW’s Board of Directors declared a combined dividend of $1.50 per share of common stock, composed of a regular quarterly dividend of $0.12 per share of common stock and a supplemental dividend of $1.38 per share of common stock. Both dividends were paid on September 25, 2024, to shareholders of record on September 11, 2024.
INSW pays an annual dividend of $5.82, which translates to a yield of 11.29% at the current share price. Its four-year average dividend yield is 6.90%. Moreover, the company’s dividend payouts have increased at a CAGR of 26% over the past three years.
INSW reported total shipping revenues of $257.41 million for the second quarter that ended June 30, 2024, of which its time and bareboat charter revenues increased 19.2% year-over-year to $31.14 million. The company’s adjusted net income came in at $118.01 million and $2.37 per share for the quarter, respectively.
Analysts expect INSW’s revenue and EPS for the fourth quarter (ending December 2024) to grow 14.6% and 37.7% year-over-year to $284.11 million and $3, respectively. Also, the company topped the consensus revenue estimates in all of the four trailing quarters, which is promising.
Shares of INSW have surged 1.4% over the past month and 19.2% over the past year to close the last trading session at $51.39.
INSW’s solid fundamentals are reflected in its POWR Ratings. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
INSW has a B grade for Quality. It is ranked #33 out of 37 stocks in the A-rated Shipping industry.
In addition to the POWR Ratings we’ve stated above, we also have INSW ratings for Growth, Momentum, Value, Sentiment, and Stability. Get all INSW ratings here.
The Buckle, Inc. (BKE)
BKE operates as a retailer of casual apparel, footwear, and accessories for young men and women. It markets a selection of brand-name casual apparel, including denim, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear. It also markets private label merchandise primarily comprising BKE, Buckle Black, Salvage, Red by BKE, and Daytrip.
On September 10, BKE’s Board of Directors authorized a $0.35 per share quarterly dividend to be paid to shareholders of record at the close of business on October 11, 2024, with a payment date of October 25, 2024.
BKE pays an annual dividend of $3.90, which translates to a yield of 8.87% at the current share price. Its four-year average dividend yield is 12.01%. Also, the company’s dividend payouts have increased at a CAGR of 7% over the past five years.
For the second quarter that ended August 03, 2024, BKE posted sales, net of returns and allowances of $282.39 million, and its gross profit was $132.53 million. The company’s net income and EPS stood at $39.25 million and $0.78 for the quarter, respectively.
Also, the company’s cash and cash equivalents were $287.27 million as of August 3, 2024, compared to $268.21 million as of February 3, 2024.
Street expects BKE’s revenue for the first quarter (ending April 2025) to increase 3.1% year-over-year to $270.56 million, while its EPS is expected to grow 7.3% year-over-year to $0.74, respectively. For the fiscal year (ending January 2026), the company’s revenue and EPS are expected to grow 3.2% and 5.6% year-over-year to $1.22 billion and $3.75, respectively.
BKE’s stock has gained 6.7% over the past six months and 29.2% over the past year to close the last trading session at $42.98.
BKE’s bright prospects are reflected in its POWR Ratings. The stock has an A grade for Quality. BKE is ranked #24 among 59 stocks in the A-rated Fashion & Luxury industry.
Click here to access BKE’s ratings for Value, Growth, Stability, Momentum, and Sentiment.
Movado Group, Inc. (MOV)
MOV designs, sources, markets, and distributes watches internationally. The company operates in two segments, Watch and Accessory Brands, and Company Stores.
On September 5, MOV’s Board of Directors approved a cash dividend of $0.35 for each share of its outstanding common stock and class A common stock. The dividend was paid on September 30, 2024, to shareholders of record as of the close of business on September 16, 2024.
MOV pays an annual dividend of $1.40, which translates to a yield of 7.53% at the current share price. Its four-year average dividend yield is 4.39%. Moreover, the company’s dividend payouts have increased at a CAGR of 26% over the past three years.
For the second quarter ended July 31, 2024, MOV’s net sales amounted to $159.31 million. The company’s gross profit was $86.36 million, and its operating income stood at $3.03 million for the quarter. Net income attributable to MOV came in at $3.72 million and $0.16 per share, respectively.
For the fiscal year 2025, the company expects net sales to range from $665 million to $675 million. Its operating income is expected to be between $23 million to $26 million.
Street expects MOV’s revenue for the first quarter (ending April 2025) to increase 5% year-over-year to $143.50 million, and its EPS is expected to grow 238.5% year-over-year to $0.44 for the same period. Further, the company has surpassed the consensus EPS estimates in three of the trailing four quarters.
Over the past month, MOV’s stock has plunged 17.9% to close the last trading session at $19.35.
MOV’s sound fundamentals are reflected in its POWR Ratings. The stock has a B grade for Sentiment and Value. Within the A-rated Fashion & Luxury industry, MOV is ranked #26 out of 59 stocks.
Click here to access additional ratings of MOV for Quality, Momentum, Growth, and Stability.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
3 Stocks to DOUBLE This Year >

INSW shares were unchanged in after-hours trading Wednesday. Year-to-date, INSW has gained 23.10%, versus a 20.81% rise in the benchmark S&P 500 index during the same period.
About the Author: Rjkumari SaxenaRajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.More…The post 3 High Dividend Yield Stocks to Boost Your Portfolio This Fall appeared first on StockNews.com

The chemical industry is expected to grow this year amid the growing emphasis on sustainable practices and rising demand for industrial chemicals across infrastructure development. Therefore, it might be wise to buy top-rated chemical stocks, PPG Industries (PPG), Avient (AVNT), and Eastman Chemical (EMN). Keep reading…The unprecedented rise of the global industrial sector is creating new opportunities for the chemical industry by boosting demand, fostering innovation, and driving the need for sustainable and advanced chemical solutions. Amid this backdrop, investors could consider buying fundamentally sound chemical stocks, PPG Industries, Inc. (PPG), Avient Corporation (AVNT), and Eastman Chemical Company (EMN).
As industries like automotive, construction, and electronics expand globally, the demand for raw materials and chemicals used in manufacturing processes has surged. This fuels the need for chemical production, especially in developing regions. Hence, the chemicals market is expected to grow at a CAGR of 8.7% until 2028.
Additionally, the chemical industry is increasingly integrating AI to improve processes and accelerate discoveries. By leveraging techniques such as machine learning and deep learning, AI supports chemists throughout the entire workflow, helping to expedite drug discovery and the development of new materials.
Considering these encouraging trends, let’s take a look at the fundamentals of the three best Chemicals stocks, beginning with the third choice.
Stock #3: PPG Industries, Inc. (PPG)
PPG produces paints, coatings, and specialty materials. Its Performance Coatings segment offers protective and decorative coatings, sealants, finishes, and related chemicals. The Industrial Coatings segment provides coatings, adhesives, sealants, metal pretreatment products, optical monomers, and specialty materials.
The stock’s trailing-12-month EBIT margin of 12.66% is 17.9% higher than the industry average of 10.74%. Similarly, its 7.98% trailing-12-month net income margin is 58.9% above the industry average of 5.05%. Also, its trailing-12-month ROTA of 6.65% compares favorably to the industry average of 2.37%.
PPG’s net sales for the second quarter (ended June 30, 2024) stood at $4.79 billion. PPG’s adjusted net income came in at $590 million, up 10.5% year-over-year, while its adjusted EPS grew 11.1% from the prior-year quarter to $2.50.
The consensus revenue estimate of $4.67 billion for the fiscal third quarter (ended September 2024) represents a marginal increase year-over-year. The consensus EPS estimate of $2.16 for the current quarter indicates a 4.4% improvement year-over-year. The company has an impressive surprise history; it surpassed the consensus EPS estimates in three of the trailing four quarters.
Over the past three months, the stock has gained 5.5% to close the last trading session at $130.74.
PPG’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
PPG has a B grade for Quality. The stock is ranked #30 out of 80 stocks in the B-rated Chemicals industry.
To see the other PPG ratings for Sentiment, Value, Growth, Stability, and Momentum, click here.
Stock #2: Avient Corporation (AVNT)
AVNT operates as a formulator of material solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It functions in two segments: Color, Additives and Inks, and Specialty Engineered Materials.
AVNT’s 9.77% trailing-12-month levered FCF margin is 86.7% higher than the 5.15% industry average. Similarly, its 17.28% trailing-12-month EBITDA margin is 4.3% higher than the industry average of 16.56%. Its 11.59% trailing-12-month EBIT margin is 8% higher than the industry average of 10.74%.
During the second quarter, which ended on June 30, 2024, AVNT’s sales grew 3.1% from the year-ago value to $849.70 million. The company’s operating income rose 18.5% year-over-year to $99.70 million. Moreover, its adjusted net income and adjusted EPS were $70.20 million and $0.76, respectively, up 21.2% and 20.6% from the year-ago value.
Street expects AVNT’s EPS and revenue for the quarter ending September 30, 2024, to increase 9.5% and 5.2% year-over-year to $0.62 and $793.15 million. It surpassed the Street EPS estimates in each of the trailing four quarters.
Over the past nine months, AVNT’s stock has gained 19.4% to close the last trading session at $49.63.
AVNT’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
AVNT has a B grade for Growth and Sentiment. AVNT is ranked #14 in the same industry.
One can check AVNT’s ratings for Value, Momentum, Stability, and Quality here.
Stock #1: Eastman Chemical Company (EMN)
EMN is a leading specialty materials company. The company operates through Additives & Functional Products; Advanced Materials; Chemical Intermediates; and Fibers segments.
In terms of the trailing-12-month levered EBITDA margin, EMN’s 17.21% is 3.9% higher than the 16.56% industry average. Its 11.84% trailing-12-month EBIT margin is 10.3% higher than the industry average of 10.74%.
During the second quarter that ended June 30, 2024, EMN’s sales revenues increased 1.7% year-over-year to $2.36 billion. Its adjusted EBIT rose 5.1% from the year-ago value to $353 million. Also, the company’s adjusted earnings per share was $2.15, an increase of 8% from the previous year’s quarter.
Analysts expect EMN’s revenue to increase 4.8% year-over-year to $2.38 billion for the third quarter ending September 2024. The consensus EPS estimate of $2.13 for the current quarter indicates an improvement of 45.1% year-over-year. In addition, the company topped consensus EPS estimates in all four trailing quarters.
Over the past six months, EMN’s stock has gained 5.5% to close the last trading session at $110.63.
EMN’s POWR Ratings reflect its solid prospects. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. Within the same industry, it is ranked #23.
To see EMN’s additional ratings for Stability, Value, Momentum, Growth, Quality, and Sentiment, click here.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:
3 Stocks to DOUBLE This Year >

PPG shares were unchanged in premarket trading Wednesday. Year-to-date, PPG has declined -11.23%, versus a 20.76% rise in the benchmark S&P 500 index during the same period.
About the Author: Nidhi AgarwalNidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor’s degree in finance and marketing and is pursuing the CFA program.

Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.More…The post 3 Chemical Stocks Benefiting From Global Industrial Growth appeared first on StockNews.com

With growing geopolitical instability, delayed OPEC+ production increases, and rapid technological advancements, the oil and gas market is poised for solid growth. Hence, currently undervalued energy stocks Energy Transfer (ET), Plains All American Pipeline (PAA), and Delek Logistics Partners (DKL) could be ideal investment choices. Read more…Despite the lingering market concerns over economic and oil demand growth, particularly in China, crude oil prices are projected to hike steadily through 2024. Also, the ongoing withdrawals from oil inventories predict a positive oil and gas market outlook.
Given the industry tailwinds, it could be wise to invest in fundamentally sound undervalued energy stocks Energy Transfer LP (ET), Plains All American Pipeline, L.P. (PAA), and Delek Logistics Partners, LP (DKL) for potential gains.
In its recent publication of World Oil Outlook for 2024, the Organization of Petroleum Exporting Countries (OPEC) appeared highly bullish on oil demand growth. The oil producer group forecasted strong energy demand growth of 24% globally between 2024 and 2050. It also expects robust growth in oil demand, projected to reach 112.3 million barrels per day by 2029, up 10.1 million b/pd from 2023.
IEA reported global oil demand gains of 800 kb/d for the first half of 2024 and projected average annual increases of 900 kb/d in 2024. Further, owing to outages caused by a political dispute in Libya and higher flows from Guyana and Brazil, world supply rose by 80 kb/d to 103.5 mb/d during August; also, annual gains are likely to grow 660 kb/d in 2024 and 2.1 mb/d in 2025.
Further, ongoing withdrawals from global oil inventories are likely to push crude oil prices above $80/b in the upcoming sessions. Also, withdrawals from oil inventories will spike further in the fourth quarter due to delayed OPEC+ production increases. EIA projects the Brent crude oil spot price to average $82/b in the fourth quarter and average $84/b in 2025.
The oil and gas market is anticipated to exhibit growth at a CAGR of 5.2%, resulting in a market value of $9.35 billion by 2028 driven by supportive government initiatives, growing resource exploration activities, and shift towards digital technologies.
Given the industry’s robust outlook, investing in fundamentally strong energy stocks ET, PAA, and DKL could be wise.
Let’s discuss the fundamentals of these stocks in detail:
Energy Transfer LP (ET)
ET is a provider of energy-related services. The company owns and operates natural gas transportation pipeline, natural gas storage facilities in Texas and Oklahoma, and nearly 20,090 miles of interstate natural gas pipeline. ET also sells natural gas to electric utilities, independent power plants, local distribution and other marketing companies, and industrial end-users.
In terms of forward Price/Sales, ET is trading at 0.63x, 55.8% lower than the industry average of 1.42x. Likewise, the stock’s forward Price/Cash Flow multiple of 4.11 is 22.7% lower than the industry average of 5.31. Also, its forward EV/Sales of 1.46x is 24.1% lower than the industry average of 1.93x.
On July 16, ET and Sunoco LP (SUN) entered a joint venture to combine their crude oil and produced water-gathering assets in the Permian Basin. ET will hold a 67.5% interest in the joint venture, with Sunoco holding a 32.5% interest. ET will oversee over 5,000 miles of pipelines and 11 million barrels of storage capacity.
Also, on July 15, ET completed the acquisition of WTG Midstream Holdings LLC. Total consideration for the transaction was $2,275 million in cash and about 50.8 million newly issued ET common units. The strategic acquisition expanded the Permian Basin pipeline and processing network, providing further access to growing natural gas and NGLs supplies.
During the second quarter that ended June 30, 2024, ET’s revenues rose 13.1% year-over-year to $20.73 billion. Its operating income grew 25.2% from the year-ago value to $2.30 billion. The company’s net income came in at $1.99 billion and $0.35 per common unit, up 61.6% and 40% from the prior year’s quarter, respectively.
Also, the company’s adjusted EBITDA increased 20.4% year-over-year to $3.76 billion. And its distributable cash flow grew 26% from the year-ago value to $2.57 billion.
Street expects ET’s EPS for the third quarter (ending September 2024) to increase 128.8% year-over-year to $0.34, and its revenue for the same quarter is expected to grow 5.2% year-over-year to $21.82 billion. For the fiscal year 2024, the company’s revenue and EPS are expected to improve 11.6% and 30.9% year-over-year to $87.72 billion and $1.43, respectively.
ET’s stock has gained 3.4% over the past six months and 15.2% over the past year to close the last trading session at $16.07.
ET’s solid fundamentals are reflected in its POWR Ratings. It has an overall rating of B, which equates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
ET has an A grade for Growth. It also has a B grade for Value, Momentum, and Stability. It is ranked #3 out of 80 stocks in the Energy – Oil & Gas industry.
In addition to the POWR Ratings we’ve stated above, we also have ET ratings for Sentiment and Quality. Get all ET ratings here.
Plains All American Pipeline, L.P. (PAA)
PAA engages in the pipeline transportation, terminaling, storage, and gathering crude oil and natural gas liquids (NGL) in the United States and Canada. The company operates through two segments: Crude Oil and NGL.
PAA’s forward EV/Sales of 0.49x is 74.3% lower than the industry average of 1.93x. Similarly, the stock’s forward Price/Sales of 0.24x is 83.3% lower than the 1.42x industry average. Further, its forward Price/Book multiple of 1.52 is lower than the industry average of 1.59.
On July 3, PAA and Plains GP Holdings (PAGP) announced their quarterly distributions for the second quarter of 2024 in the following manner: PAA Common Units – $0.3175 per unit, PAGP class A shares – $0.3175 per class A share, PAA series A preferred units – $0.61524 per series A preferred unit, and PAA series B preferred units – $24.77 per series B preferred unit.
PAA pays an annual distribution of $1.27, which translates to a yield of 7.26% at the current share price. Its four-year average dividend yield is 7.49%. Moreover, the company’s dividend payouts have increased at a CAGR of 19.2% over the past three years.
During the second quarter that ended June 30, 2024, PAA’s revenues increased 11.5% year-over-year to $12.93 billion. Adjusted net income attributable to PAA amounted to $288 million and $0.31 per common unit, reflecting 18.5% and 24% growth from the prior year’s quarter, respectively.
Furthermore, the company’s adjusted EBITDA rose 15.3% year-over-year to $807 million.
The company has also raised its guidance for full-year 2024 adjusted EBITDA to a new range of $2.72 – $2.77 billion. PAA reaffirmed its adjusted free cash flow guidance of $1.55 billion.
Street expects PAA’s revenue for the third quarter (ending September 2024) to increase 8.2% year-over-year to $13.06 billion. Its revenue for the fiscal year 2024 is expected to grow 6.2% year-over-year to $51.71 billion. Furthermore, the company surpassed the consensus EPS estimates in three of the trailing four quarters.
PAA’s stock has surged 1% over the past six months and 14.5% over the past year to close the last trading session at $17.49.
PAA’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
The stock has an A grade for Growth and a B grade for Value, Stability, and Momentum. PAA is ranked #8 among 23 stocks in the A-rated MLPs – Oil & Gas industry.
Click here to access PAA’s ratings for Quality and Sentiment.
Delek Logistics Partners, LP (DKL)
DKL provides gathering, pipeline, transportation, and other services for crude oil, intermediates, refined products, natural gas, storage, wholesale marketing, terminalling water disposal, and recycling customers. The company operates through Gathering and Processing segment; Wholesale Marketing and Terminalling segment; and Storage and Transportation segment.
On September 12, DKL acquired H2O Midstream, a portfolio company of EIV Capital, LLC, for a total consideration of $230 million, consisting of $160 million in cash and $70 million of convertible preferred redeemable equity.
The H2O Midstream operations significantly align with DKL’s operations, and the acquisition supports DKL’s core strategy of offering a full midstream service solution to existing and third-party customers in the prolific Permian Basin. Also, it presents an opportunity to extract significant synergies through cost optimization and cross-product sales.
On July 30, DKL declared its quarterly cash distribution for the second quarter of 2024 of $1.09 per common limited partner unit, or $4.36 per common limited partner unit on an annualized basis. The cash distribution was paid on August 16, 2024, to unitholders of record on August 9, 2024.
DKL’s annual dividend of $4.36 translates to a yield of 10.13% at the current share price. Its four-year average dividend yield is 9.01%. And the company’s dividend payouts have increased at a CAGR of 5.4% over the past five years. DKL has raised its dividend for nine consecutive years.
For the second quarter that ended June 30, 2024, DKL’s net revenues rose 7.2% from the prior-year quarter to $264.63 million, and its operating income rose 14.2% year-over-year to $68.46 million. Net income attributable to partners stood at $41.06 million and $0.87 per limited partner unit, up 28.7% and 19.2% year-over-year, respectively.
Furthermore, DKL’s EBITDA and distributable cash flow grew 10.4% and 12.2% from the year-ago value to $102.39 million and $67.81 million.
As per the company’s 2024 outlook, MRO’s expected free cash flow is $2.20 billion for the year.
Analysts expect DKL’s revenue and EPS for the fourth quarter (ending December 2024) to grow marginally and 76.8% year-over-year to $255.49 million and $0.90, respectively. Also, the company topped the consensus EPS estimates in three of the four trailing quarters.
Shares of DKL have surged 10.5% over the past month and 5.2% over the past six months to close the last trading session at $43.05.
DKL’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
The stock has a B grade for Value, Momentum, and Stability. Within the A-rated MLPs – Oil & Gas industry, DKL is ranked #5 in the list of 23 stocks.
Click here to access additional ratings of DKL for Sentiment, Growth, and Quality.
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
2024 Stock Market Outlook >
 

ET shares were trading at $15.97 per share on Monday afternoon, down $0.10 (-0.62%). Year-to-date, ET has gained 23.11%, versus a 21.29% rise in the benchmark S&P 500 index during the same period.
About the Author: Rjkumari SaxenaRajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.More…The post 3 Oil & Gas Stocks That Remain Undervalued appeared first on StockNews.com

The S&P 500 (SPY) is up over 20% this year and all seems right with the world. However, you should be aware of one major red light for the market that may prevent further gains. Steve Reitmeister spells it out in his latest commentary below…Most of what lies before us as stock investors are green lights to race ahead.
However…and it’s a big HOWEVER, there is one flashing red light that we need to appreciate in order to invest more successfully in the months ahead.
We will talk about that red light in detail leading to an investment plan that should help us handily top the market going forward.
Market Outlook
Let’s start by reviewing the bright green lights for investors at this time:

Just a few weeks shy of 24 months into new bull market that started October 2022. History shows the average bull market to last 63 months so good reason to believe there is plenty of time left on the clock.

“Don’t Fight the Fed” This is the famed investor battle cry when the Fed is lowering rates because it is a catalyst for future economic growth that begets higher corporate earnings…and most importantly…higher share prices. This party officially got started at the September 18th Fed meeting as they announced the first cut of 50 basis points with expectations for another 150 basis point worth of cuts by the end of 2025. Hard not to be bullish with the Fed finally on our side.

Typically, the Fed is cutting rates to bolster a flagging economy…often in the midst of a recession. Amazingly GDP is growing at a healthy pace with the GDPNow model from the Atlanta Fed pointing to above trend +2.9% growth in Q3. Or to put it another way, there is no recession in sight and little reason to fear meaningful stock downside besides the occasional pullback or correction that happens quite often during a long term bull market cycle.

No doubt you are finding it hard to be worried about your stock investments with the above green lights in place. So that is why I now need to share the most important red light at this time. That being the current valuation of stocks based upon market cap in the chart below:

The valuation of mega caps (pink line) is MORBIDLY OBESE compared to historical norms. No…its not quite 1999 internet bubble valuations…but it is a level of valuation that should not hold up and would fully expect those stocks (like the Magnificent 7) to underperform going forward to get their valuations down to size.
Large caps as a whole (red line) are what I would call fully valued at this stage. The key ingredient to move substantially higher would be for earnings growth to rev up after 2 lackluster years. Gladly Wall Street analysts do see that happening later in 2025 as the benefits of lower rates takes hold. So, at best this group of larger stocks will see modest returns in the year ahead. But breakeven wouldn’t surprise me either.
This leads us to a focus on small (green line) and mid caps (blue line) as the place to find value and future outperformance. Going back 100 years these stocks have a firm lead over their large cap peers in terms of annual gains. But that has not been the case for the better part of the last 4 years.
In September you could see the tide turning as the surety of rate cuts were on the way, investors made a massive rotation to smaller stocks which have outperformed this month. This Risk On shift is logical and should continue given the much better value proposition.
I will go on record now saying that I don’t think the S&P 500 (SPY) makes it much higher than 6,000 in 2025. In fact, we may touch that level before we close out 2024 with the benefit of the typical post election rally followed by a touch of Santa Claus rally.
This means that 2025 is likely a flat year for large caps. So those who want outperformance should concentrate in small and mid cap stocks with the right blend of earnings growth and attractive valuation.
Gladly that job is made all the easier for you by concentrating on the top picks from our POWR Ratings model where we explore 13 measures of Growth as well as 31 measures of Value.
Going back to 1999 the POWR Ratings model has narrowed in on these best in class stocks leading to an average annual return of +28.56% since 1999.
Some of my personal favorites are shared in the next section. Read on for more…
What To Do Next?
Discover my current portfolio of 11 stocks packed to the brim with the outperforming benefits found in our exclusive POWR Ratings model. (Nearly 4X better than the S&P 500 going back to 1999).
All of these hand selected picks are all based on my 44 years of investing experience seeing bull markets…bear markets…and everything between.
And right now this portfolio is beating the stuffing out of the market.
If you are curious to learn more, and want to see my 11 timely stock recommendations, then please click the link below to get started now.
Steve Reitmeister’s Trading Plan & Top 11 Stocks >
Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
CEO, StockNews.com and Editor, Reitmeister Total Return

SPY shares rose $0.38 (+0.07%) in premarket trading Friday. Year-to-date, SPY has gained 21.54%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve ReitmeisterSteve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.More…The post Is There a Red Light for the Stock Market? appeared first on StockNews.com