STOCKS TELEGRAPH

Author: Ali Hassan

  • Top 3 Transportation Stocks to Watch for in 2021

    Top 3 Transportation Stocks to Watch for in 2021

    As travelling restrictions get to lower down, transportation stocks can be a solid bet in 2021.

    Transportation is something that is a necessity for people to move around the world. Whether it is for holidays, trips, business activities, or any other purpose; transportation is a key element in moving things from one place to another.

    Over time, transportation companies have formed up and provided different services to accommodate the travelers. There are some notable transportation and logistics firms that performed way better in 2020, considering the COVID-19 restrictions. So, let’s have a look at the potential transportation stocks that can be a decent bet in the pandemic time.

    Uber (UBER)

    Uber (UBER) is the leader in ride-hailing but the company has struggled just like any other transportation firm during the COVID-19 pandemic. However, the company has successfully applied the cost-cutting strategies that have shown promising outcomes.

    Uber expects to have a profitable year ahead—even with restrictions—as the company works on cost-effective policies. Moreover, Uber Eats, its food-delivery chain has done remarkably well and it’s growing quite swiftly.

    During the Q3 2020 report, the CEO of the company Dara Khosrowshahi stated that Uber has performed well despite the uneven pandemic response. The company steadily improved results during Q3 with total company Gross Bookings down just 6% year-on-year. While the Mobility Gross Bookings almost doubled from Q2 level and Delivery soared over 135% year-over-year growth. So, Uber stock is the potential stock to keep in your book this year.

    Kansas City Southern (KSU)

    Kansas City Southern (KSU) is a widely used north-south railroad line in North America. KSU provides service for a 6,000-mile-plus rail network in the U.S. and Mexico—a big trade area.

    Recently, the company reported its Q4 2020 results which were on the lower side as per the prior estimates. The earnings per share increased by 3.8% year-over-year to $1.89, while the analysts’ estimated it around $1.96. The revenue for the fourth quarter dropped 5% to $693.4 million compared to Wall Street estimates of $694.5 million.

    However, the company expects things to get better in 2021. Kansas City has forecasted the sales to jump at a double-digit rate this year following an 8% dip in the last year. While the EPS is anticipated between $10.50-$11.

    This year, Kansas’ main objective is to implement the PSR (Precision Scheduled Railroading) Phase 3. The PSR will have a combined operational performance with an intense focus on customer service and revenue growth.

    CSX Corp. (CSX)

    CSX Corp. (CSX) is an American holding firm that focuses on real estate and rail transportation in North America. The company provides rail freight service over a 21,000 miles long network.

    The strong point for CSX is that it can still benefit from its freight transportation despite the unpredictable economic circumstances. The major reason for this is that rail services are much cheaper as compared to trucking—as customers are looking for cost cuts during the pandemic period.

    In the Q3 2020 results, the company reported net earnings of $736 million compared to $856 million in Q3 2019. Despite the pandemic, CSX’s operating ratio of 56.9% remained in line with the last year’s record results. While the revenue was down by 11% from $2.56 billion last year.

    Most importantly, the company was able to decrease its expenses by 11%, which were achieved through volume-related reductions and continued efficiency gains.

    With CSX’s promising performance in 2020, things are about to get better for the company in 2021. So, CSX Corp. (CSX) is one prominent transportation stock to watch for in 2021.

  • Top Cyclical Stocks to Watch For in 2021

    Top Cyclical Stocks to Watch For in 2021

    Cyclical stocks’ future seems bright with Joe Biden joining the prime seat in Washington. 

    The business situation has improved a lot since the second half of 2020. Moreover, with Joe Biden sworn as the new president of the United States, it is expected the economic situation will get better. The cyclical stocks rely upon the macroeconomic factors or systemic changes in the overall economy. That’s why they are called cyclical as they follow the cycles of an economy.

    Most of the cyclical stocks are based on firms that sell consumer discretionary items—where consumers purchasing increases during a booming economy and decreases during a recession period.

    In recent times, cyclical stocks have been on investors’ radar. Logically, most of the cyclical stocks had bad times during the pandemic, but we are eyeing better times with the new presidency in the office. For instance, Nike stock has done great over time and has shown the potential to rise back strongly. So, there are some notable stocks in the segment to watch for this year. Let’s have a look at the top 3 cyclical stocks in the market at the moment.

    Boeing (BA)

    The Boeing Company (BA) that manufactures and produces the magnificent Boeing Commercial Aircrafts has had bad times over the past year or so. After the two big Boeing crashes the company has been under regulatory radar and was working within limits. And, to add to the woes the pandemic badly affected the company.

    However, the company has started to regain its strength in recent times. The restart of the Boeing737 Max in late 2020 “marks a turning point” toward the company’s financial recovery. The Aerospace guru, Andrew Gollan has also upgraded Boeing from Sell to Hold and raised the price target $150 to $215.

    However, it is going to be a long hard battle for the company to come out of hefty debts and continue with financial freedom. Gollan expects that the company will pay $8 billion of outstanding cash costs this year. With the Max delivers underway, it will help the company to restore financial stability and return the debt.

    Potentially, in 2022, the company would be in a better financial position. Moreover, Boeing just announced that it will start delivering commercial airplanes with the ability to fly on 100% biofuel by the end of the decade. If the company works on this goal with a high success rate then in the long-term things will get bigger for Boeing.

    In the meanwhile, Boeing (BA) stock can make movements that can signal investors to a buy point. So, Boeing’s stock is one to keep an eye on in 2021.

    Crocs (CROX)

    Crocs (CROX) is another consumer cyclical stock that is worth looking forward to. The Colorado-based company is the sole manufacturer of the Crocs brand foam clogs.

    On Jan 20, the company upgraded its Q4 and 2020 revenues. Moreover, Crocs has released a higher outlook for 2021. The company expects its business to continue growth with strong momentum. Also, the incline in online sales is a big reason why Crocs is expecting higher sales this year.

    The company anticipates Q4 revenues to rise by 55% to $410 million compared to the prior updated growth of 30%. While for the full-year 2020, the company expects the revenue to cross $1,381 million—almost 12% growth year-over-year. For the 2021 outlook, Crocs has forecasted revenues to grow between 20% and 25%.

    Overall Crocs (CROX) is ready for strong growth and accelerated business this year. So, it one key stock in the segment to watch for in 2021.

    Nike (NKE)

    Nike (NKE) is one of the leading shoe brands and produces other apparel and equipment. The stock price has soared over 40% since the start of 2020. The overall business of Nike was impacted by the pandemic, but the company kept on fighting with decent sales.

    In fiscal 2020, the digital sales increased by 47% with all geographies growing strong double-digits. As the online shopping trend is growing, online sales are expected to grow for Nike in the coming years.

    In the pre-COVID phase, the company added around 70 million new members to its ecosystem from all over the world. Nike’s share price may be overvalued but it still has much potential to make bull runs this year—as the momentum is on its side.

    Nike is well-positioned cyclical stocks and the company knows to work in different circumstances. This is proven with its steady growth as the company reported a 4% increase in revenue for the 6-months of FY 2021. While the net income jumped up to 12% year-over-year. So, Nike (NKE) stock is a decent stock to keep in your books heading forward.

  • GameStop (GME) Stock Continues to Spike Days after the Appointment of Ryan Cohen

    GameStop (GME) Stock Continues to Spike Days after the Appointment of Ryan Cohen

    Is the bull run going to end anytime soon, or should you invest in GME now?

    Investors are having a good time if they have invested in GameStop (GME) stock earlier this month. The average trading volume is around 15.8 million—which shows that investors are betting highly on GME.

    The day traders are helping the stock to keep on pumping in the recent trading sessions. As we write this, GME has soared over 51% trading at $65—in the range of a 52-week high.

    But will the bullish run continue or will the stock retrieve in the coming days? The answer is that after a heavy push the day traders will take their profit and move out; GME is poised to drop in the next few days. But what does this mean for the long-term investors? Smart investing is when the price is dropping—buying the stock at a low could increase the profit margin.

    What’s happening?

    The reason for the recent bull is mainly powered by Citron backing away from the live stream. Earlier this week, Citron was to go live to discuss that why GameStop (GME) was heading back to $20. But later, the company pulled back due to some hacking concerns on Twitter, ending in bulls for GME.

    For now, this Twitter spat may continue to fire GME stock but ultimately things will cool down in a while.

    Talking about the operational depth of the company—in the Q3 report—its comparable-store sales soared by 16.5% for Nov. 2020. While the total net sales increased from $747.6 million to $791.1 million—from fiscal Nov. 2019.

    Moreover, the basic push that can drive GameStop in the long-term is its business performance. That is improving which is a good sign. Another important factor is the signing of Ryan Cohen as a member of CME’s board of directors. Ryan, who is the co-founder of the famous pet food retailer, Chewy will join GameStop’s board along with two other Chewy executives.

    Reportedly, Chewy’s co-founder wants things to accelerate at GameStop and he wants the company to adopt a more online strategy. With the three board seats on his side, Cohen can target this goal with more authority.

    The company updated that it gained 3.1% more sales during this year’s nine-week holiday season. This was good for the company because people were more driven towards e-commerce and relied more on online sales.

    In a recent SEC filing, it was unveiled that three directors sold GME’s stock with a total value of $2.7 million, while another director sold stock worth $17 million. Despite the insider selling of GME shares, the stock continued to jump, which can be a good sign.

    Conclusion

    Recently, GameStop (GME) has reported the growth of its sales which is good to start the new year with continuing growth. With the opening of stores and things coming to normal, we can expect the stock to perform well in this year. Most importantly, the appointment of Cohen is a very big move. If he intends to move towards the online system, things will get better for the company in the long-term.

  • Fluidigm (FLDM) Stock Gives Green Signal as it obtains CE-IVD ‎Mark for Its COVID-19 Test

    Fluidigm (FLDM) Stock Gives Green Signal as it obtains CE-IVD ‎Mark for Its COVID-19 Test

    The biotech firm has made a notable development for its COVID-19 test. While the stock soars as FLDM nears the anticipated results for the full year 2020.

    Fluidigm Corp. (FLDM) stock is on a roll in pre-session today following a bullish end to the trading on Thursday. As we write this, FLDM stock had soared up to 26%. The company’s full-year 2020 results are near disclosure and are anticipated to score well overall. The bulls are eyeing the stock as we near the yearly report.

    Moreover, the biotech company just announced that it has obtained the CE-IVD mark for its Advanta™ Dx SARS-CoV-2 RT-PCR Assay. This is a great achievement for Fluidigm as its Advanta testing for COVID-19 comes up with a unique technology—that gives convenient results for SARS-Cov-2 virus testing.

    What’s Next?

    Fluidigm Corp. (FLDM)is a hands-on biotech tool provider that focuses on improving patient’s life through comprehensive health insight. Fluidigm stock is making progress along with the developments happening around, which is good. But how’s the stock getting backed by its business operations?

    On Jan. 22, the company announced that it received the CE-IVD mark for its Advanta™ for the coronavirus testing. This new testing method is an extraction-free saliva-based test that helps in detecting nucleic acid from the SARS-CoV-2 virus. The following testing method complies with the European Union In Vitro Diagnostic Directive.

    The latest Advanta Dx Assay and results from paired nasopharyngeal samples are proved with 100% demonstration during the clinical studies. The Advanta DxAssay does not require collection through the invasive nasopharyngeal swab, which makes it more reliable and convenient.

    Moreover, the team of peer-reviewed research is scrutinizing the accuracy of the saliva-basedSARS-CoV-2 test. Based on the results published by JAMA Internal Medicine, the saliva-based tests have shown similar specificity and sensitivity compared to the nasopharyngeal-based collection.

    The CEO and President of Chris Linthwaite said that the testing market of COVID-19 is expected to reach up to $5 to 7 billion this year. This is a big plus for the company that will drive more revenue in the coming time.

    The company has scheduled to release its Q4 and full-year 2020 results on Feb. 10, 2020. In the last quarter, Fluidigm reported solid quarterly results. The revenue during Q3 soared by 50.4% to $39.9 million year-over-year. General Product & service and Microfluidics product &service revenues increased by 34.4% and 88%, respectively. While other revenue accumulated at around $4.5 million.

    Moreover, the GAAP net loss also decreased from $12.9 million to $6 million from the same period in 2019. The non-GAAP income came positive with $2.5 million compared to a loss of $6.2 million in Q3 2019. So, the results have improved significantly over the past year with a hike in health services amid the COVID-19 pandemic.

    Conclusion

    The Q4 and full-year results are also expected to report increased income and revenues. Moreover, the strengthening test capability of the COVID-19 will help the company to continue strong growth in 2021. So, Fluidigm Corp. (FLDM) has the potential to make big moves this year.

  • Looking for $1 Stock? BIOLASE (BIOL) is a Decent Bet

    Looking for $1 Stock? BIOLASE (BIOL) is a Decent Bet

    The dental device firm is bullish and looks solid for long-term growth.

    The medical device firm, BIOLASE Inc. (BIOL) had a good last twelve months–soaring more than 20% up-to-date. Analysts are bullish on the dental firm stock and expect the stock to grow up to 255% in the next 12-months.

    BIOLASE along with its subsidiaries manufactures and markets dental laser systems for practitioners and patients across the U.S. and worldwide. The company covers different areas of dental diagnostics including cosmetic, complex surgical applications, and restorative.

    Most of the analysts rate the stock as a strong buy—and the average trading volume of 23.8 million backs it as well. Is investing in a $1 stock a good option?

    What’s happening?

    BIOLASE has developed its ecosystem in medical device development manufacturing. It is popular for its dental lasers across the globe—a leader in this category. In recent times, the company has made notable progress that would ensure the growth of BIOLASE going forward.

    About a week ago, the company signed an agreement with Dental Care Alliance (DCA) in the U.S. with almost 330 affiliated practices in 20 states. The DCA is one of the largest dental support organizations (DSO) across the country. Through this alliance, BIOLASE will expand laser adoption and hands-on training programs in specific areas. This will help the company to enhance its ecosystem while attracting real-time users of its laser devices during the program. Also, this agreement will open ways for the medical device maker to roll out across all DCA offices in 2021.

    The company has two standard lasers which include EpicX™ and Epic Hygiene™ for the dental industry. The company focuses on a new standard of technology providing good quality services and hygiene appointments—important during the COVID-19 pandemic.

    The CEO and President of BIOLASE, Todd Norbe said that the demand for EpicX and Epic Hygiene lasers is increasing. In the first three weeks of January, the company has already sold more than 100 systems to DCA. The collaboration with DCA will continue to consume more Epic lasers in the coming months across different areas in the country. 

    In late 2020, the company announced its partnership with BMW Performance Center West The Therman Club near Palm Springs (BMW PCW). This deal will allow dentists to take part in Waterlase Weekends—two group trips including a 4-hour event at the BMW PCW. This is kind of a promotion deal for BIOLASE—helping the company to expand its ecosystem.

    Conclusion

    BIOLASE’s growth over the last year has been significant and the demand for its dental laser products is also increasing. The partnership deals to promote its devices will allow the company to attract more consumers—creating a bigger userbase. The growth of the company will help the stock to grow in the long-term. BIOLASE (BIOL) stock has already kicked off 2021 will a strong push. With the recent collaborations, the potential growth opportunity is there for the company. All the stats and business deals show the BIOL is a decent stock to bet on—a stock at around $1 per share.

  • Jaguar Health (JAGX) Closes its $6M Promissory Notes, What’s Next for JAGX Stock?

    Jaguar Health (JAGX) Closes its $6M Promissory Notes, What’s Next for JAGX Stock?

    Jaguar Health has had swift growth in 2020 as the demand for its Mytesi continues to rise.

    The pharmaceutical firm has kicked off the new year in style. Jaguar Health (JAGX) stock soared over 265% in the first week of January. The early-year gains indicate that the penny stock has a long way to go in 2021. The bull run is directing towards a positive trajectory as we move ahead.

    Recently, the company announced that it has entered into a definitive agreement to sell its promissory notes worth $6 million to Streeterville Capital—investor. Also, there’s a notable development happening across its novel proprietary drug, Crofelemer. So, 2021 is going to be exciting for Jaguar Health’s stock.

    What’s Next?

    Jaguar Health is heading in the right direction. The company has been quite active recently. On Jan. 13, 2021, Jaguar announced the purchase agreement for the sale of its common stock shares to its institutional investors. Around 4,437,870 common stock shares were floated at a per-share price of $3.38 that would bring gross proceeds of almost $15 million.

    On the very same day, the company also announced a binding agreement of terms for $6 million backed by the sale of tropical disease priority review voucher. Jaguar’s subsidiary, Napo Pharmaceuticals intends to go for an incentive for the development of Napo’s lechlemer drug with the help of this priority review voucher.

    On Jan. 19, the company signed a definitive agreement to issue and sell its secured promissory note to Streeterville for a principal amount of $6 million. Jaguar reported that the sale of Note closed on Jan. 19, 2021.

    Following the promissory note sale, Streeterville has the right to 18% of the gross proceeds of the review voucher for lechlemer drug. Whereas, Jaguar can redeem the Note at a 12.5% premium after the 6-months—any time.

    Moreover, the company is working to obtain conditional marketing authorization in Europe for its novel proprietary drug, Crofelemer. The company wants to conduct the initial study on Crofelemer in a “long-hauler” COVID-19recovery patient population in Europe. Jaguar is looking to accelerate the development and commercialization of Crofelemer as it’s the need of the hour—once it obtains the regulatory approval.

    Jaguar Health has another strong product in the market that’s making a lot of revenue. Napo’s product, Mytesi® reported a net sale of almost $2.8 million in Q3 2020, an increase from $1 million in 2019.

    Conclusion

    Jaguar Health (JAGX) is well-position across different spaces and is making way for its new product, Crofelemer, in Europe. From a penny stock in 2020 to cross the $3 price mark this year, JAGX has shown serious promise. Investors are keeping an eye on the stock; it will be making moves this year. The average trading volume stands around 57.5 million, as we write this. So, some serious bulls are coming Jaguar’s way.

  • Top 3 Big Data Stocks for long-term Investment

    Top 3 Big Data Stocks for long-term Investment

    Big data companies have transformed over time with the adoption of new technologies.

    When we talk about the digital world, big data companies are on top of the list—making the difference with their products and services. Big data has reshaped the way it works with the changes and evolution in technology. The big data firms are based on new products that usually provide data collection and analytics.

    Big data companies provide various analytics solutions for businesses to achieve valuable insights in different areas. Though the big data has broadened its scope across analytics allowing it to analyze complex datasets to understand trends, patterns, and associations for enterprises to improve their working.

    According to Markets and Markets, the global big data market is anticipated to grow at 10.6% from 2020 to 2025—annually. This means that the big data market is expected to cross $229.4 billion. So, there is a sound opportunity to invest in big data stocks which could make you big profits in the coming years. Here are the top 3 big data stocks to invest in for the long-term.

    Adobe (ADBE)

    Adobe (ADBE) is one of the most diversified software firms in the world—a software-as-a-service titan in the global market. The company is popular for its flagship product, Photoshop, and several other applications such as Adobe Document Cloud, Creative Cloud, and Experience Cloud products.

    All the services Adobe provides allows the company to generate predictable cash flows through subscriptions. The business model of ADBE is perfectly designed to cover the modern market trends.

    As of Nov. 2020, the company reported revenue growth of 15% in the fiscal year 2020, which was around $13 billion. The subscription revenue and revenues from other large segments of Adobe rose to 21% and 20%, respectively. The revenues soared due to increased digital engagement as the freelance market was working at its peak in the pandemic last year.

    By end of last year, Adobe announced that it acquired a marketing workflow start-up Workfront for almost $1.5 billion. This acquisition sets the software firm to expand its market in digital asset management with production and content services.

    Adobe (ADBE) estimates its market across its different software and cloud segments to reach $147 billion in 2023. Adobe stock is well-positioned to make growth in the long-term. However, the sock can retreat from its current trading price of around $470, but it would position the stock to go bullish in the long run. 

    Workiva (WK)

    Workiva (WK) finds itself right there in the cloud market. The company is a mobile-enabled platform that provides its services to businesses to collect, analyze, and manage business data. 

    Workiva’s clients use its software to solve complex operating and reporting processing through documents, connecting teams, and data from primary sources to final reports. The company is well-established across finance, accounting, risk management, etc.

    WK stock had a superb time last year with the shares price more than doubling. In the third quarter of 2020, the company reported revenues up by 19% to $88 million. Whereas, the adjusted earnings soared over 133% to $0.40 per share. 

    The company is set to announce the fiscal year 2020 financial results on Feb. 17, 2021. Previously, Workiva raised its Q4 guidance and expects revenues to continue the growth. So, Workiva (WK) stock is a solid stock in the big data market. The company has massive potential to prove its worth in the coming years.

    Splunk (SPLK)

    Splunk (SPLK) is a business software platform that provides on-premises and cloud solutions to its clients such as monitoring, retrieving, and evaluating big data. The company focuses on developing its data-to-everything platform to cut down the problems of its users and fulfill their needs.

    Splunk has grown into a big company with its partnerships with several Fortune 100 companies. The company has partners including e-commerce giant AWS, Cisco, and Accenture—to name a few. This makes SPLK stock more attractive in the bid data sector.

    The fast-growing segments in big data will enhance the growth of the company in the coming time—acting as catalysts. Splunk’s revenue has jumped excessively over the past few years. In 2017, the company recorded revenue at around $950 million. While in 2020, the revenue was reported around $2.35 billion.

    Recently, the company updated its Q2 FY 21 results. The cloud ARR soared by 89% to $568 million and the total ARR jumped by 50% to $1.93 billion. The overall revenues were down 5% year-over-year, which is due to the shifting trends from the COVID-19 pandemic.

    All in all, Splunk’s partnership with top tech firms shows that it has meaningful demand in the market. In the long-term, SPLK stock can bring you big gains once the market drives through this tough phase.