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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

The transportation industry is thriving due to the e-commerce surge. AerCap Holdings (AER), Matson, Inc (MATX), and ArcBest Corporation (ARCB) are well-positioned to capitalize on increased shipping demand, leveraging technology and logistics solutions to enhance their growth in this expanding market. Read more…The transportation industry is witnessing remarkable growth, propelled by the adoption of advanced technologies, a heightened reliance on e-commerce, and supportive government initiatives.
Consequently, investors may consider increasing their stakes in AerCap Holdings N.V. (AER), Matson, Inc. (MATX), and ArcBest Corporation (ARCB), all of which are well-positioned to capitalize on these emerging industry trends.
The demand for faster shipping options is on the rise, with businesses increasingly embracing same-day and on-demand shipping solutions. The popularity of e-commerce, driven by numerous online shopping platforms catering to growing consumer needs, is propelling a boom in the transportation industry and reshaping logistics operations.
Moreover, Artificial Intelligence (AI) is playing a transformative role in the shipping and logistics market. The Gitnux Market Data Report 2024 estimates that the AI market in shipping and logistics will reach $12.87 billion by 2026. The surge in AI adoption is facilitating the industry’s push toward more innovative and efficient operational practices.
Additionally, ongoing government initiatives aimed at improving infrastructure are likely to promote greater supply chain efficiency, ultimately reducing costs and benefiting the market as a whole. That being said, the U.S. transportation and logistics industry is anticipated to grow by 2.7% in 2024.
Furthermore, as per a report published by Mordor Intelligence, the global e-commerce market, estimated at $8.80 trillion in 2024, is expected to reach $8.81 trillion by 2029, growing at a CAGR of 15.8%. This growth presents significant opportunities for the transportation sector to expand its services and capabilities.
Considering these favorable trends, let’s take a closer look at the fundamentals of the three transportation stocks, starting with #3.
Stock #3: AerCap Holdings N.V. (AER)
Based in Dublin, Ireland, AER offers a range of lease assets, including aircraft, engines, helicopters, and more. With a portfolio of approximately 1,717 aircraft, 1000 engines, and 300 helicopters, the company serves approximately 300 customers worldwide, offering comprehensive fleet solutions and aftermarket components, equipment, and services.
On August 1, AER announced the delivery of three Airbus A321neo aircraft on a long-term lease to AirAsia Group as part of a fifteen-aircraft deal. The rest of the twelve aircraft are to be delivered in 2024 and 2025.
With a 30-year-long partnership with AirAsia, AER is to benefit from the long-term business deal. The collaboration could secure sustained business for AER, ensuring the company’s steady expansion in the competitive aviation leasing industry.
On July 9, AER announced a lease agreement with Turkish Airlines for the lease of ten Airbus A321neo aircraft. By supporting Turkish Airlines’ fleet modernization, AER could enhance its international partnerships and strengthen its global market position, boosting its brand visibility and business potential worldwide.
For the fiscal 2024 second quarter that ended June 30, AER’s total revenues and other income increased 1.8% year-over-year to $1.96 billion. Its net income attributable to AER came in at $448.17 million. Moreover, the company’s EPS came in at $2.28, representing an increase of 7.5% from the previous year’s quarter.
Analysts predict AER’s revenue for the fiscal year ending December 2024 to increase 3.7% year-over-year to $7.86 billion. The company’s EPS for the current year is also estimated to rise 3.2% from the prior year to $11.07 billion. It surpassed the consensus EPS estimates in each of the trailing four quarters.
AER’s stock has surged 30.1% over the past nine months and 54.6% over the past year to close the last trading session at $96.62.
AER’s POWR Ratings reflect its promising outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
AER has an A grade for Sentiment and a B for Momentum and Quality. Within the Air Freight & Shipping Services industry, it is ranked #2 out of 16 stocks.
Beyond what we stated above, we also have given AER grades for Growth, Value, and Stability. Get all AER ratings here.
Stock #2: Matson, Inc. (MATX)
MATX specializes in ocean transportation and logistics. Its Ocean Transportation segment delivers freight services to domestic non-contiguous economies. The Logistics segment offers services like multimodal transportation brokerage, supply chain management, and non-vessel operating common carrier freight forwarding.
MATX’s total operating revenue for the fiscal 2024 second quarter ended June 30, 2024, increased 9.6% year-over-year to $847.40 million. Its operating income rose 28.9% over the year-ago value to $124.60 million. Also, the company’s net income and EPS rose 40.1% and 46.5% from the prior year’s period to $113.20 million and $3.31, respectively.
MATX anticipates significantly higher operating income for Ocean Transportation in the third quarter of 2024, surpassing the $118.2 million achieved in the same period last year. For the fourth quarter of 2024, the company projects a moderate increase in operating income compared to the $66.4 million recorded in 2023.
Additionally, MATX expects its consolidated operating income for the third quarter of 2024 to be significantly higher than the $132.1 million earned in the third quarter of 2023 and for the fourth quarter of 2024 to also be higher than the $75.3 million achieved in the fourth quarter of 2023.
For the fiscal third quarter (ending in September 2024), MATX’s revenue and EPS are expected to grow 16.9% and 37.2% year-over-year to $967.68 million and $4.66, respectively. Moreover, the company topped the consensus revenue and EPS estimates in each of the trailing four quarters, which is impressive.
Shares of MATX have gained 23.9% over the past nine months and 58.3% over the past year to close the trading session at $138.54.
MATX’s robust fundamentals are reflected in its POWR Ratings. It has an overall rating of B, translating to a Buy in our proprietary rating system.
MATX has a B grade for Value, Sentiment, Momentum, and Quality. The stock is ranked #4 out of 37 stocks in the A-rated Shipping industry.
To access additional grades of MATX for Growth and Stability ratings, click here.
Stock #1: ArcBest Corporation (ARCB)
ARCB, a logistics powerhouse, employs technology and comprehensive solutions to fulfill its clients’ supply chain requirements. It operates in two segments: Asset-Based, offering less-than-truckload services; and Asset-Light, encompassing ground expedited services, truckload brokerage, household goods moving, and managed transportation solutions.
On August 6, ARCB announced a partnership with TriumphPay, a premier payments network for freight brokers, factors, shippers, and carriers. By becoming a full audit and payments network participant, ARCB is expected to benefit from faster and more secure payment processes, enhancing its appeal as a preferred partner for carriers and driving significant growth opportunities.
On March 18, ARCB announced a collaboration with NVIDIA Corporation (NVDA), integrating the NVIDIA Isaac Perceptor platform into its material-handling processes. By employing cutting-edge machine vision technology, the partnership will enhance safety and efficiency across warehouses, distribution centers, and manufacturing facilities.
This advancement positions ARCB to better meet the growing market demands, ultimately leading to increased efficiency, reduced operational costs, and improved competitiveness within the logistics industry.
For the fiscal 2024 second quarter that ended June 30, ARCB reported revenues of $1.08 billion. Its non-GAAP operating income from continuing operations rose 28.1% from the year-ago value to $64.20 million. Furthermore, the company’s adjusted EBITDA from continuing operations increased 24.3% from the prior year’s period to $94.86 million.
Also, the company’s non-GAAP net income and non-GAAP EPS from continuing operations came in at $47.38 million and $1.98, up 24.8% and 28.6% year-over-year, respectively.
The consensus revenue and EPS estimates of $4.56 billion and $9.78 for the fiscal year ending December 2025 reflect a rise of 6.2% and 37.8% year-over-year, respectively. Moreover, the company topped the consensus revenue estimates in all four trailing quarters.
ARCB’s stock has surged 4.3% over the past three months and 10.6% over the past year to close the last trading session at $110.93.
ARCB’s POWR Ratings reflect its bright prospects. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
ARCB has a B grade for Growth, Momentum, and Value. It has topped the 17-stock Trucking Freight industry.
To access ARCB’s Stability, Sentiment, and Quality ratings, 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 >

AER shares were unchanged in premarket trading Tuesday. Year-to-date, AER has gained 30.71%, versus a 20.61% 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 Transportation Stocks Gaining from the E-Commerce Boom appeared first on StockNews.com

With the U.S. market facing a whirlwind of economic uncertainty and volatile Fed policies, seeking solace in international stocks could be a wise move. Diversifying with picks like Alibaba Group (BABA), Rio Tinto (RIO), and Nokia (NOK) might provide the stability and growth a portfolio needs amid the chaos. Read on…Investors are navigating significant economic uncertainty, fluctuating Federal Reserve policies, and the upcoming presidential election, all of which are contributing to heightened market volatility.
In light of the current economic backdrop in the United States, it may be prudent to consider diversifying into international stocks. Companies such as Alibaba Group Holding Limited (BABA), Rio Tinto Group (RIO), and Nokia Oyj (NOK) offer substantial growth potential and could provide a buffer against domestic market instability.
This year, political uncertainties are intertwining with immediate market volatility. Concerns about a potentially weakening U.S. economy and speculation on future Federal Reserve interest rate cuts have intensified. Recently, the S&P 500 experienced its worst weekly percentage loss since March 2023 following a disappointing jobs report.
The market’s downturn was driven by the August jobs report, which revealed that U.S. employers hired fewer workers than expected. The U.S. economy added 142,000 jobs, which is below economists’ expectations. The unemployment rate slightly decreased to 4.2% from 4.3%, as reported by the Bureau of Labor Statistics.
Matt Thompson, co-portfolio manager at Little Harbor Advisors, remarked, “This is an uncertain market. He added, “The market is essentially saying, we know risk is elevated, but … we don’t know what the problem is going to be.”
Investors could remain cautious until after the November election. In the meantime, exploring international stocks with strong growth prospects might be a wise strategy to mitigate domestic market risks.
With this in mind, let’s dive deeper into the fundamentals of the above-mentioned stocks in detail starting with #3.
Stock #3: Alibaba Group Holding Limited (BABA)
Based in Hangzhou, China, BABA offers technology infrastructure and marketing reach to help merchants, brands, and retailers connect with international users and customers. Its segments include China Commerce; International Commerce; Local Consumer Services; Cainiao; Cloud; Digital Media and Entertainment; Innovation Initiatives and Others.
On September 5, BABA partnered with Mastercard Incorporated (MA) and Cardless to introduce a co-branded credit card that rewards businesses for cross-border and domestic purchases on Alibaba.com. The partnership would simplify shopping, boost customer loyalty, and strengthen BABA’s global presence.
On the same day, BABA launched an AI-powered sourcing agent alongside new financial and logistics solutions. These innovations help small and medium-sized businesses increase efficiency and streamline cross-border trade. By enhancing trade processes, BABA can attract more global businesses and accelerate its international growth.
For the fiscal 2025 first quarter that ended June 30, 2024, BABA’s revenue increased 3.9% year-over-year to $33.47 billion. Its income from operations amounted to $4.95 billion. Plus, the company reported its adjusted EBITA at $6.20 billion for the quarter.
Moreover, non-GAAP net income and non-GAAP EPS came in at $5.60 billion and $0.28 for the quarter, respectively.
Analysts expect BABA’s revenue for the fiscal year ending in March 2025 to increase 8.9% year-over-year to $141.66 billion. Its EPS for the ongoing fiscal year is expected to grow 2.2% year-over-year to $8.79.
Shares of BABA have gained 11.9% over the past three months and 18.5% over the past nine months to close the last trading session at $84.69.
BABA’s POWR Ratings reflect its positive outlook. The stock 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, with each factor weighted to an optimal degree.
BABA has a B grade for Momentum, Sentiment, and Quality. Out of 39 stocks in the B-rated China industry, it is ranked #10.
To see BABA’s Growth, Value, and Stability ratings, click here.
Stock #2: Rio Tinto Group (RIO)
Headquartered in London, the United Kingdom, RIO explores, mines, and processes mineral resources. The company operates across Iron Ore; Aluminium; Copper; and Minerals Segments. In addition, it manages open-pit and underground mines, refineries, smelters, processing plants, power facilities, and shipping operations.
On August 15, RIO partnered with the Queensland Government to strengthen the heavy industrial manufacturing base around Gladstone and boost renewable energy investments. The partnership secures the future of Boyne Smelters Limited, Australia’s second-largest aluminum smelter, ensuring sustainability and long-term growth for RIO’s operations.
On July 19, RIO marked a milestone by shipping 4 billion tonnes of iron ore from Western Australia’s Pilbara to China, reinforcing its strong trade partnership. With half a century’s worth of customer needs, China is RIO’s largest customer, with approximately 250 million tonnes of iron ore shipped every year.
By keeping international shipments afloat, RIO’s exports to various countries around the world would aid the company in gathering a larger customer base and turning the company into a top metal ore shipment company globally.
For six months of fiscal 2024 that ended on June 30, 2024, RIO reported consolidated sales revenue of $26.80 billion, indicating a marginal year-over-year increase. The company’s operating profit for the same period rose 14% from the year-ago value to $8.26 billion.
In addition, profit after tax for the period and EPS came in at $5.89 billion and $3.56, up 19.1% and 13.3% year-over-year, respectively.
Street expects RIO’s EPS for the fiscal year ending in December 2024 to increase marginally year-over-year to $7.28.
Shares of RIO have surged 3.9% over the past five days to close the last trading session at $62.55.
RIO’s solid fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
RIO has a B grade for Value, Quality, and Stability. It is ranked #3 out of 27 stocks in the Industrial – Metals industry.
In addition to the POWR Ratings we’ve stated above, we also have RIO ratings for Momentum, Sentiment, and Growth. Get all RIO ratings here.
Stock #1: Nokia Oyj (NOK)
Based in Espoo, Finland, NOK delivers mobile, fixed, and cloud network solutions globally. The company operates through four segments: Network Infrastructure; Mobile Networks; Cloud and Network Services; and Nokia Technologies. It also offers cloud and network services and licenses intellectual property, including patents and technologies.
On September 16, NOK partnered with NL-ix, an Internet Exchange provider, to deploy Nokia Deepfield Defender across NL-ix’s network. The deployment represents the largest anti-DDoS solution for an Internet Exchange Point (IXP) in Europe, enhancing protection for customers against DDoS attacks and reinforcing NOK’s commitment to network security.
On September 3, NOK signed a multi-year agreement with AT&T Inc. (T), a leading provider of telecommunications and technology services, to deploy next-generation fiber access technology.
NOK will supply its Lightspan MF and Altiplano platforms to support one of the world’s largest fiber networks. The collaboration would advance NOK’s mission to connect more people and businesses, offering a range of PON technologies, from 10/25G to future 50/100G PON, on a unified platform.
For the fiscal 2024 second quarter that ended on June 30, 2024, NOK’s net sales came in at EUR 4.47 billion ($4.95 billion). Its gross profit and operating profit were reported to be EUR 1.94 billion ($2.14 billion) and EUR 432 million ($478.47 million), respectively. Plus, as of June 30, 2024, NOK’s total assets stood at EUR 38.86 billion ($43.04 billion).
The consensus revenue estimate of $5.31 billion for the fiscal third quarter (ending September 2024) represents a marginal increase year-over-year. The consensus EPS estimate of $0.07 for the current quarter indicates a 40.5% growth year-over-year.
Shares of NOK have gained 13.2% over the past three months and 29.2% over the past nine months to close the last trading session at $4.20.
It’s no surprise that NOK has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
NOK has a B grade for Value and Sentiment. Within the Technology – Communication/Networking industry, it is ranked #2 out of 47 stocks.
Beyond what we stated above, we also have given NOK grades for Growth, Momentum, Stability, and Quality. Get all the NOK 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 >

BABA shares fell $0.77 (-0.91%) in premarket trading Monday. Year-to-date, BABA has gained 10.59%, versus a 18.89% 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 Global Stocks to Buy for International Exposure and Growth appeared first on StockNews.com

Recent innovations, successful trials, and increased research and development spending in the healthcare sector further boost the sector’s appeal today. Given this momentum, investors might consider investing in stocks with high analyst price targets, such as Pfizer (PFE), Biogen (BIIB), and BioMarin Pharmaceutical (BMRN). Read on…Amid this rapidly changing economic environment, healthcare is the sector that continues to demonstrate resilience and growth potential. Thus, investors could consider adding fundamentally sound healthcare stocks, Pfizer Inc. (PFE), Biogen Inc. (BIIB), and BioMarin Pharmaceutical Inc. (BMRN), to their portfolios that have high analyst price targets.
There is an increasing demand for healthcare services and products due to factors such as an aging global population, rising healthcare costs, and continuous breakthroughs in medical technology. With these factors prevailing, the global healthcare services market is anticipated to be valued at $22.57 trillion by 2031, exhibiting a CAGR of 8.3%.
Healthcare is a non-cyclical industry, meaning that regardless of economic conditions, the healthcare sector will be essential in today’s world. Moreover, recent developments in the medical industry, like gene editing and biotechnology, are creating new growth opportunities for investors. Revenue in the global biotech industry is expected to grow at a CAGR of 14% to reach $3.88 trillion by 2030.
Considering these factors, let’s take a look at the fundamentals of the three healthcare stock picks.
Pfizer Inc. (PFE)
PFE is a global leader in biopharmaceuticals, offering a wide range of medicines and vaccines across several therapeutic areas. Its diverse portfolio spans treatments for cardiovascular conditions, metabolic issues, migraines, women’s health, and infectious diseases, including COVID-19 prevention and treatment. It also explores future mRNA and antiviral therapies and provides biosimilars for chronic immune and inflammatory conditions.
On August 27, PFE launched PfizerForAll, a user-friendly digital platform designed to make access to healthcare and managing health and wellness more seamless for people across the United States. This platform will offer people an easier way to connect to healthcare professionals on the same day, find and book vaccines, and receive tests and medications at home.
In the same month, PFE and BioNTech SE (BNTX) received the approval of the U.S. Food and Drug Administration (FDA) for the supplemental Biologics License Application for individuals 12 years of age and older, and granted emergency use authorization for individuals six months through 11 years of age of the companies’ Omicron KP.2-adapted 2024-2025 Formula COVID-19 vaccine. The company will begin shipping immediately to ensure robust supply and rapid access.
PFE’s total revenues for the second quarter (ended June 30, 2024) increased 2.1% year-over-year to $13.28 billion. Its non-GAAP other income came in at $258 million compared to the prior-year quarter’s loss of $278 million. The company’s adjusted net income and adjusted EPS attributable stood at $3.40 billion and $0.60, respectively.
The company has updated its fiscal year 2024 financial guidance, increasing its revenue projection to a range of $59.50 billion to $62.50 billion, up from the previous estimate of $58.50 billion to $61.50 billion. Additionally, it has raised its adjusted EPS guidance to a new range of $2.45 to $2.65, higher than the prior forecast of $2.15 to $2.35.
Analysts expect PFE’s revenue for the fourth quarter (ending December 2024) to grow 26.3% year-over-year to $18 billion, while its EPS for the same period is expected to increase considerably from the prior year to $0.67.
Shares of PFE have surged 5.8% over the past three months to close the last trading session at $29.27. The 12-month median price target of $32.77 indicates a 12% upside potential from the last closing price. The price targets range from a low of $27 to a high of $45.
PFE’s POWR Ratings reflect this robust outlook. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
PFE has a B grade for Growth and Value. It is ranked #47 out of 161 stocks in the Medical – Pharmaceuticals industry. Click here to see the additional ratings for PFE (Momentum, Stability, Sentiment, and Quality).
Biogen Inc. (BIIB)
BIIB is a global biopharmaceutical company focused on discovering, developing, and delivering advanced therapies for people with serious and complex diseases worldwide. The company has a portfolio of medicines to treat multiple sclerosis (MS), spinal muscular atrophy (SMA), Alzheimer’s disease, and amyotrophic lateral sclerosis (ALS). 
On August 22, BIIB and Eisai Co., Ltd. announced that the Medicines and Healthcare products Regulatory Agency (MHRA) in Great Britain granted marketing authorization to its Leqembi®, the humanized amyloid-beta (Aβ) monoclonal antibody.
On July 30, BIIB, Beckman Coulter, Inc., and Fujirebio announced they would collaborate to potentially identify and develop accessible, minimally invasive blood-based biomarkers specific for tau-pathology in the brain. These tools have the potential to be used to stratify patients or monitor treatment response for a new generation of future therapies impacting tau pathology in Alzheimer’s disease.
For the second quarter of 2024, which ended on June 30, BIIB’s total revenues increased marginally year-over-year to $2.46 billion. Its non-GAAP total net income attributable for the quarter amounted to $770.90 million or $5.28 per share, representing increases of 31.9% and 31.3%, respectively, from the same period last year.
As per the updated financial guidance for the full year 2024, BIIB now forecasts non-GAAP EPS between $15.75 and $16.25, up from the previous estimate of $15 and $16.
Street expects BIIB’s revenue for the fiscal fourth quarter (ending December 2024) to increase 2.4% year-over-year to $2.44 billion. Its EPS for the same period is expected to register a 14.9% growth from the prior year, settling at $3.39. In addition, it surpassed the EPS estimates in three of the trailing four quarters, which is promising.
BIIB’s stock has declined 1.1% intraday to close the last trading session at $195.63. Its 12-month price target of $275.11 indicates a 40.6% potential upside. The price targets range from a low of $190 to a high of $342.
BIIB’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
It also has an A grade for Value and a B for Growth and Sentiment. Within the Biotech industry, it is ranked #7 out of 336 stocks. Click here to see BIIB’s ratings for Momentum, Stability, and Quality.
BioMarin Pharmaceutical Inc. (BMRN)
BMRN develops and commercializes therapies for people with serious and life-threatening rare diseases and medical conditions. The company is a biotechnology company addressing the root cause of genetic conditions.
On July 24, BMRN announced that the U.S. FDA approved BRINEURA (cerliponase alfa) for children under three years with neuronal ceroid lipofuscinosis type 2 (CLN2 disease). The approval expands the treatment to all ages, including presymptomatic children, to slow the loss of ambulation.
In the fiscal third quarter that ended on June 29, 2024, BMRN’s total revenue increased 19.6% year-over-year to $712.03 million. The company reported non-GAAP income from operations of $221.8 million, indicating 71.7% growth from the prior-year quarter. BMRN’s non-GAAP income came in at $250.70 million, up 79.6% year-over-year, while its non-GAAP EPS grew 77.8% from the year-ago value to $0.96.
According to the updated financial guidance for fiscal year 2024, the company’s revenue is now projected to be between $2.75 billion and $2.83 billion, with non-GAAP operating margin anticipated to fall between 26% and 27%. Its non-GAAP EPS is expected to range from $3.10 to $3.25.
The consensus revenue estimate of $704.18 million for the fiscal third quarter (ending September 2024) represents a 21.1% increase year-over-year. The consensus EPS estimate of $0.80 for the same quarter indicates a 74% improvement year-over-year. The company has an impressive earnings surprise history; it surpassed the consensus EPS estimates in three of the trailing four quarters.
Over the past three months, the stock has surged marginally to close the last trading session at $84.90. Its 12-month price target of $111.15 reflects a 30.9% potential upside. The price targets range from a low of $72 to a high of $132.
It’s no surprise that BMRN has an overall rating of B, equating to a Buy in our POWR Ratings system. It has an A grade for Growth and a B for Value and Sentiment. Out of 336 stocks in the Biotech industry, BMRN is ranked #15.
Beyond what is stated above, we’ve also rated BMRN for Momentum, Stability, and Quality. Get all BMRN ratings 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! >

PFE shares closed at $29.27 on Friday, up $0.11 (+0.38%). Year-to-date, PFE has gained 7.74%, versus a 18.99% rise in the benchmark S&P 500 index during the same period.
About the Author: Anushka DuttaAnushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.More…The post 3 Healthcare Stocks With High Analyst Price Targets appeared first on StockNews.com

Artificial Intelligence is rapidly transforming industries worldwide, driving a global revolution across sectors. Investors looking to benefit from this growth can consider adding fundamentally strong AI stocks Microsoft (MSFT), NVIDIA (NVDA), and Alphabet (GOOGL) to their portfolios to capture the potential gains. Read on…The Artificial Intelligence (AI) revolution is reshaping industries and economies at an unprecedented pace, driving remarkable growth and transformation across the globe. With its branches spreading to various industries around the world, an incoming industrial revolution caused by the effective nature of AI would be an educated guess.
Considering this backdrop, it could be a wise move for investors to add shares of Microsoft Corporation (MSFT), NVIDIA Corporation (NVDA), and Alphabet Inc. (GOOGL) to their portfolio to ride on the wave of the incoming industrial revolution.
Artificial Intelligence is at the forefront of the Fourth Industrial Revolution, a term coined by Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, in his 2016 book, The Fourth Industrial Revolution.
Emerging technologies such as AI, the Internet of Things (IoT), and robotics are converging with the physical, digital, and biological realms. This convergence is profoundly reshaping economies, industries, and societies, driving a new era of innovation and transformation.
The potential of AI is unmatchable, with the technology creeping its way into several sectors. These innovations around AI are still in full swing, with tech giants pouring billions into the technology and nations hoarding the chips required for future AI ambitions.
Statista projects the AI market size to hit $184 billion by 2024, with the United States leading globally at $50.16 billion. On another note, a recent study by PwC estimates that AI could boost the global economy by a staggering $15.7 trillion by 2030, equating to the combined economic output of China and India.
The boom in AI has also led to President Biden issuing a landmark Executive Order to strengthen AI safety and security and encourages recognizing AI’s enormous promise, and deepening the United States’ position in AI innovation. The order directed increased investment in AI innovation and new efforts to attract and train workers with AI expertise.
Given the favorable market position AI is currently in, let us discuss the fundamentals of three AI stocks that are leading forth the industrial revolution, starting with #3.
Stock #3: Microsoft Corporation (MSFT)
MSFT is a tech giant that innovates in software, services, and devices. Its divisions include Productivity & Business Processes; Intelligent Cloud; and More Personal Computing. The company’s flagship offerings include Office, Microsoft Teams, and advanced solutions like Microsoft Viva.
On August 8, MSFT announced a partnership with Palantir Technologies Inc. (PLTR), known for its role in counterterrorism software. Together, the companies plan on integrating cutting-edge cloud, AI, and analytics into the U.S. Defense and Intelligence Community.
This move could enhance MSFT’s position in the defense sector, expand its reach in critical national security projects, and drive long-term growth in high-demand government contracts.
On July 24, MSFT and Lumen Technologies (LUMN), a key technology and communications provider, announced a partnership to leverage Microsoft Cloud for Lumen’s digital transformation. The collaboration would help LUMN enhance its network capacity and also drive MSFT’s growth by boosting cloud usage and data center revenue, capitalizing on the growing AI demand.
MSFT’s total revenue increased 15.2% year-over-year to $64.73 billion for the fiscal 2024 fourth quarter that ended June 30, 2024. Its operating income grew 15.1% from the year-ago value to $27.93 billion. Moreover, the company’s net income and EPS came in at $22.04 billion and $2.95, both growing 9.7% from the prior year’s quarter, respectively.
Furthermore, the company’s total assets were $512.16 billion as of June 30, 2024, compared to $411.98 billion as of June 30, 2023.
For the fiscal 2025 first quarter ending September 2024, MSFT’s revenue is expected to increase 14.2% year-over-year to $64.53 billion. Its EPS for the ongoing quarter is expected to be $3.10, increasing 3.7% from the prior year’s period. Moreover, the company topped the consensus revenue and EPS estimates in all four trailing quarters, which is impressive.
Shares of MSFT have surged 10.7% over the past nine months and 23.9% over the past year to close the last trading session at $414.20.
MSFT’s POWR Ratings reflect its robust outlook. It has a B grade for Stability and Quality. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
MSFT is ranked #19 out of 39 stocks in the B-rated Software – Business industry.
In addition to the POWR Ratings highlighted above, one can access MSFT’s ratings for Growth, Momentum, Sentiment, and Value here.
Stock #2: NVIDIA Corporation (NVDA)
NVDA is a leading full-stack computing infrastructure firm, driving accelerated solutions for computational challenges. Its segments span Compute & Networking, and Graphics, serving diverse markets like gaming, professional visualization, data centers, and automotive sectors.
On August 27, NVDA introduced NVIDIA NIM™ Agent Blueprints, a versatile catalog of AI workflows designed for creating and deploying generative AI applications. These include customer service avatars, retrieval-augmented generation, and virtual drug discovery screening.
This new advancement could position NVDA to help enterprises customize open-source models, paving the way for its leading role in the AI revolution.
On July 29, NVDA revealed its commitment to advancing humanoid robotics by supplying services, models, and computing platforms to top robot manufacturers. The effort supports NVDA’s mission to drive global humanoid robotics development.
As robotics starts to play a key role in various industries, NVDA’s tools are set to ignite a technological revolution, enhancing its market presence and growth.
In the fiscal 2025 second quarter that ended July 28, 2024, NVDA’s revenue increased 122.4% year-over-year to $30.04 billion. The company’s non-GAAP operating income increased 156.4% year-over-year to $19.94 billion.
Additionally, its non-GAAP net income and non-GAAP net income per share came in at $16.95 billion and $0.68, indicating increases of 151.5% and 151.9% from the previous year’s quarter, respectively. As of July 28, 2024, NVDA’s total assets stood at $85.23 billion compared to $65.73 billion on January 28, 2024.
Street expects NVDA’s revenue and EPS for the fiscal 2025 third quarter (ending October 2024) to increase 81.6% and 84.1% year-over-year to $32.91 billion and $0.74, respectively. Moreover, the company surpassed the consensus revenue and EPS estimates in all four trailing quarters.
Shares of NVDA have surged 23.5% over the past six months and 137.2% over the past year to close the last trading session at $108.10.
NVDA’s fundamentals are reflected in its POWR Ratings. The stock has an A grade for Sentiment and a B for Quality.
It is ranked #36 in the 91-stock Semiconductor & Wireless Chip industry.
Beyond what we stated above, we have also given NVDA grades for Growth, Value, Stability, and Momentum. Get all the NVDA ratings here.
Stock #1: Alphabet Inc. (GOOGL)
GOOGL powers a wide range of global tech innovations and platforms. Its segments include Google Services, Google Cloud, and Other Bets, each addressing various digital needs and aspirations, driving advancements in search, cloud computing, and emerging technologies.
On May 2, GOOGL announced its collaboration with MongoDB, Inc. (MDB), an industry-leading developer data platform, to optimize Gemini Code Assist and provide enhanced suggestions for application development and modernization on MDB.
Gemini Code Assist will provide developers with access to MongoDB code, documentation, and best practices, enabling faster prototyping and application development. This strengthens GOOGL’s cloud services and developer tools, fostering innovation by enhancing developer experiences and speeding up time to market.
For the fiscal 2024 second quarter that ended June 30, 2024, GOOGL’s revenues increased 13.6% year-over-year to $84.74 billion. Its income from operations rose 25.6% from the year-ago value to $27.43 billion.
Moreover, the company’s net income was $23.62 billion, up 28.6% year-over-year. Its earnings per share grew 31.3% from the prior year’s quarter to $1.89 billion. In addition, the company’s cash and cash equivalents totaled $27.23 billion as of June 30, 2024, compared to $24.05 billion as of December 31, 2023.
The projected consensus for revenue and EPS stands at $86.27 billion and $1.84, respectively, marking a year-over-year increase of 12.5% in revenue and 18.5% in EPS for the fiscal third quarter ending September 2024. Furthermore, the company has topped the revenue and EPS estimates in each of the trailing four quarters.
GOOGL shares have surged 9.8% over the past six months and 10.2% over the past nine months to close the last trading session at $148.66.
GOOGL’s solid fundamentals are mirrored in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
GOOGL has a B grade for Sentiment, Stability, and Quality. Within the B-rated Internet industry, GOOGL is ranked #8 out of 52 stocks.
Beyond what I have stated above, we have also given GOOGL grades for Value, Growth, and Momentum. Get all GOOGL ratings here.
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MSFT shares fell $0.17 (-0.04%) in premarket trading Wednesday. Year-to-date, MSFT has gained 10.75%, versus a 16.19% 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 AI Stocks Leading the Fourth Industrial Revolution appeared first on StockNews.com

Visa (V) is a global company leading in the consumer financial segment with a solid demand for its offerings, portfolio renovation, and strategic partnerships contributing to its continued growth. So, let’s determine whether Visa (V) is the right investment now. Read more to find out…Visa Inc. (V) is a global payment technology company. V operates VisaNet, a transaction processing network, and offers credit, debit, and prepaid card products, Visa Direct, Visa B2B Connect, Visa Cross-Border Solution, and Visa DPS. It reported solid third-quarter financial results with quarterly net revenue of $8.90 billion, indicating an increase of 9.9% from the prior year’s quarter.
With digital technologies, modes of payment and transactions have also evolved, including digital payments and cashless transactions. Total transaction value in the digital payments market is expected to reach $11.53 trillion in 2024 worldwide, whereas, in the United States, the transaction value is projected to reach $3.07 trillion and further grow at a CAGR of 10.7% to hit around $4.62 trillion by 2028.
Visa is efficiently leading this fast-paced development with its newly launched innovative product solutions and strategic partnership with industry leaders. Visa relaunched Visa SavingsEdge, aimed at delivering greater value to small businesses across the US and Canada. It announced a suite of new products and services for the Asia Pacific region and entered into technological collaboration with HSBC and Amazon.
On July 23, Visa’s board of directors declared a quarterly cash dividend of $0.52 per share of class A common stock paid on September 3, 2024, to all holders of record as of August 9, 2024. It also repurchased 17.2 million shares of class A common stock at an average cost of $276.75 per share for $4.8 billion. At the end of the quarter, V had $18.9 billion as remaining authorized funds for share repurchases.
The company’s payments volume increased 7%, while cross-border volume rose 14%, and processed transactions up 10%.
Ryan McInerney, Chief Executive Officer, Visa, commented, “During the quarter, we expanded our partnerships with many clients around the world and announced several innovations that will help drive the future of commerce.”
Shares of V have surged 10% over the past month and 15.5% over the past year to close its last trading session at $285.61.
Let’s look at factors that could influence V’s performance in the upcoming months.
Positive Recent Developments
On July 9, V and HSBC announced a technological collaboration to launch Zing, HSBC’s international money app that allows users to hold, send, and transact in multiple currencies. Zing leverages V’s technology for features like low-cost currency exchange and real-time payments and empowers UK members with international money needs.
On June 27, V announced a collaboration with Amazon to offer Canadian consumers installment payment options to eligible RBC and Scotiabank credit card holders. The convenient payment feature allows customers to convert their Amazon purchases into smaller, fixed payments over time.
Also, on June 13, V relaunched Visa SavingsEdge to deliver greater value to small businesses across the US and Canada. With the latest enhancements, Visa SavingsEdge has introduced a more dynamic platform with new offerings and features designed to support smarter spending and saving.
Robust Financials
During the third quarter that ended on June 30, 2024, V’s net revenue increased 9.9% year-over-year to $8.90 billion. The company’s operating income grew 18.2% from the year-ago value to $5.94 billion. V’s income before income taxes of $5.99 billion indicates growth of 16.4% year-over-year.
Further, the company’s non-GAAP net income and non-GAAP EPS amounted to $4.91 billion and $2.42, up 9.1% and 12% from the prior year’s quarter, respectively.
Also, as of June 30, 2024, the company’s total assets stood at $91.04 billion, up from total assets of $90.50 billion as of September 30, 2023.
Solid Historical Growth
V’s revenue and EBITDA have grown at respective CAGRs of 15.5% and 16.4% over the past three years. The company’s EBIT has increased at a CAGR of 16.8% over the same timeframe, while its net income and EPS have improved at CAGRs of 20.7% and 23.6%, respectively.
Furthermore, the company’s total assets and levered free cash flow have improved at respective CAGRs of 3.3% and 13.6% over the past three years.
Favorable Analyst Estimates
Analysts expect V’s revenue for the fourth quarter (ending September 2024) to grow 10.1% year-over-year to $9.48 billion. The consensus EPS estimate of $2.58 for the same period indicates a 10.6% year-over-year improvement. Also, V has an impressive earnings surprise history, having topped consensus EPS estimates in each of the trailing four quarters.
For the fiscal year ending September 2024, the company’s revenue and EPS are expected to grow 9.6% and 13.1% year-over-year to $35.80 billion and $9.92, respectively. Additionally, Street expects its revenue and EPS for the fiscal year 2025 to increase 9.9% and 11.6% year-over-year to $39.34 billion and $11.07, respectively.
High Profitability
V’s trailing-12-month gross profit margin and EBITDA margin of 97.80% and 69.83% are 61.6% and 210.2% higher than the respective industry averages of 60.51% and 22.51%. Its trailing-12-month net income margin of 54.72% is considerably higher than the industry average of 22.43%. Similarly, the stock’s trailing-12-month levered FCF margin of 42.09% is 135.5% higher than the industry average of 17.87%.
Furthermore, V’s trailing-12-month ROCE, ROTC, and ROTA of 49.85%, 24.38%, and 20.99% are favorably compared to the industry averages of 10.32%, 6.91%, and 1.05%, respectively.
POWR Ratings Reflect Promise
V’s solid fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, translating to a Buy in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. V has a B grade for Quality, in sync with its higher-than-industry profitability.
Furthermore, the stock also has a B grade for Stability, in sync with its beta of 0.89.
V is ranked #12 in the 47-stock Consumer Financial Services industry.
Beyond what I have stated above, we have also given V grades for Sentiment, Value, Momentum, and Growth. Get access to all the V Ratings here.
Bottom Line
Visa is a leading payment technology company that is maintaining its leadership position with innovative solutions and technological collaborations and rebranding its product offerings. Also, the company’s long-term prospects are fueled by its robust growth trajectory, broadening operations, and strong financial performance.
Given V’s outstanding financials, accelerating profitability, reliable dividends, and promising growth outlook, V could be an ideal buy for solid returns.
How Does Visa Inc. (V) Stack Up Against Its Peers?
While V has an overall POWR Rating of B, investors could also check out these other stocks within the Consumer Financial Services industry with A (Strong Buy) or B (Buy) ratings: Regional Management Corp. (RM), Atlanticus Holdings Corporation (ATLC), and INNOVATE Corp. (VATE).
For exploring more A and B-rated consumer financial stocks, click here.
What To Do Next?
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V shares were unchanged in premarket trading Tuesday. Year-to-date, V has gained 10.33%, versus a 15.69% 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 Is Visa a Buy as Digital Transactions Continue to Soar? appeared first on StockNews.com