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Category: Investing

  • The Two Best Home Improvement Stocks to Buy Now

    The Two Best Home Improvement Stocks to Buy Now

    The home improvement stocks to look forward to in 2021.

    The home improvement stocks once again must be on investor’s radar. The global pandemic has prolonged and does not seem to ease off. In the meantime, people spend most of their time at home—having much time to observe and identify the room for improvement.

    We have various companies that are working quite well in this sector and have much potential in the future. The increase spent on revamping the inside infrastructure has spiked during the COVID-19 era. This inclination in demand has played out as an upside for several companies in the home improvements space. So, there are certain key stocks to keep on your watch list. Here are the two best home improvement stocks to buy now.

    Lowe’s Companies (LOW)

    Lowe’s Companies (LOW) a US-based company that specializes in home improvement. The company is among Zacks’ top-ranked firms that are up to the standard. The three factors that could make Lowe’s a good investment option are:

    The first one is earnings growth. For any company, the earnings growth is a top indicator to judge the stock’s position and future potential. The historical EPS growth rate for Lowe’s is 17.6%, though the investors must know what’s up next. For this year, Lowe’s EPS is forecasted to have a growth rate of 52.4%, bamboozling the industry average quite extraordinarily, which is anticipated to be 14.8%.

    The second important factor is its impressive asset utilization ratio. It’s quite important and growth investors often overlook this aspect. The company has aS/TA ratio of 1.82, which means that Lowe’s earns $1.82 in sales for each dollar in assets. Whereas, the average industry rate stands at $1.67. So, Lowe’s tops the industry in this regard, as well.

    Moreover, the last important factor is the continuous revision of earnings estimates, which have been moving upwards. Zacks earnings estimate for 2021 has soared 0.1% over the first four weeks of 2021.

    Lumber Liquidators (LL)

    Lumber Liquidators (LL) is a holding company that has multi-channels with retailers in hardwood flooring, and hardwood flooring enhancements and accessories. The company has been performing well and the quarterly results have improved quite well during the pandemic.

    The company saw a rise in sales trends with sequential improvement in its Pro and Install customers. For the first half of 2020, the company saw a notable rise in demands, which continued into the next quarters. In Q3, the company reported revenues of $295.83 million, beating Zacks estimates by 3.55% and $263.96 million year-over-year. The quarterly earnings per share came in at $0.67, more than double of Zacks’ estimates of $0.30 per share. While it was a skyrocketing jump from the prior-year earnings of $0.08. At the moment, the outlook is quite positive and LL lies in the range of the buy zone.

  • The Three Best Consumer Staples Stocks to Buy and Hold

    The Three Best Consumer Staples Stocks to Buy and Hold

    Holding a consumer staple stock is always a good option.

    The consumer staples segment is a wider part of the food industry. Majority of the consumer staples are multinational firms with subsidiaries, meaning they have a long chain of revenues.

    Early in 2020, when the lockdown started to begin, the consumer staples stocks were outperforming—in general. Consumer firms produce different items including household goods, food, hygiene, and other daily life products.

    Consumer staples usually are slow-growth stocks and do not provide the highest earnings growth on annual basis. Investors with a caliber of Warren Buffet much be the right persons to jump into this category. So, let’s have a look three best consumer stocks to buy and hold.

    Coca-Cola (KO)

    The multinational beverages giant, Coca-Cola (KO) is one from the stapes sector—a good investment option. In a phase of uncertain economic circumstances, the company is starting to adapt accordingly.

    Recently, the company reported its fourth-quarter results, which were on the impressive side. Driven by the growth in adjusted operating margin and prudent cost management, Coca-Cola posted better-than-expected.

    The Q4 adjusted earnings were $0.47 per share, which soared over 6.8% year-over-year and crossed Street estimates of $0.42. While the adjusted net operating revenues were on the lower side dropping by 5.5% to $8.6 billion. Most importantly, the company expanded its adjusted operating margin up to 27.35% from the prioryear.

    The company believes that the progress they made in 2020 has set the platform that would pave the way for growth this year. For this reason, Coca-Cola has projected its adjusted EPS to grow in between the high single-digit to low double-digit percentage range. Whereas, the organic revenue is expected to rise in space of high single-digit. The free cash flow is anticipated at $8.5 billion.

    So, Coca-Cola (KO) is well set to follow through this pandemic stream and makes it move for the future.

    Tyson Foods (TSN)

    Tyson Foods (TSN) is one of the largest food operators in the world. The company is the second largest processor and marketer of chicken, beef, and pork after JBS S.A.TSN is also one of those consumer staples stocks that would be a good hold in the long-term.

    Recently, the company released its first quarter 2021 results surpassing Zacks estimates. The earnings were $1.94 per share, beating consensus estimate of $1.58. The Q1 earnings surprise was 22.78%. In the past four quarters, the company surpasses the consensus EPS estimates three times.

    Whereas, Tyson’s Meat Product industry revenues peaked at over $10.46 billion, which missed the Zacks estimates by 5.57%. The impact on revenue is due to unprecedented sales—amid the pandemic. The overall results have been promising over the past year, which shows that the company has much potential in the long run. Another positive is the dividend of Tyson, with a yield of 2.27%, as we write this.

    Reynolds Consumer (REYN)

    Reynolds Consumer (REYN) is the parent company behind Hefty trash bags, disposable tableware, Reynolds-branded parchment paper, and Fresh-Lock zipper bags.

    In Q4, the company reported revenues of $888 million, beating Zacks estimates by 1.21% and up from $835 million year-over-year. Based on the latest results, analysts have raised the yearly outlook for Reynolds. The revenues for this year are projected to cross $3.3 billion, along with statutory earnings of $1.77 per share.

    The stability in the business operations is phenomenal. In the last four quarters, Reynolds Consumer (REYN) has topped quarterly revenues estimates three times. So, REYN could be a good option to go with as we move ahead.

  • The 3 Top Gambling Stocks to Buy for the long-term

    The 3 Top Gambling Stocks to Buy for the long-term

    The gambling industry has both top for growth and top for value stocks.

    After largely been hit by the pandemic, the gambling industry has entered a new phase. Number of gambling and casino companies are introducing online betting platforms, now. The significance of the online industry has grown during the pandemic. The businesses have understood that the future belongs to the e-market.

    The gambling sector is consisting of a broader gaming industry that focuses on leisure, casino gaming, and resort properties. The gambling companies own hotels, racetracks, ski facilities, and run activities that involve betting.

    As we head forward into 2021, things are expected to get better for businesses. For investors, in the meantime, they need to follow the stocks from gambling and the market trend—what’s coming up next. So, if you are interested in gambling stocks, here are the three top stocks for long-term investment.

    Wynn Resorts (WYNN)

    Wynn Resorts (WYNN) is a developer and operator of high-end hotels and casinos. The company has been focusing on its online network. Wynn is a well-established gambling firm in the market worth over $13 billion.

    On Feb. 10, 2021, the company’s premier casino and sports betting app, WynnBET was conditionally approved for sports gaming in Tennessee. WynnBET is currently available in certain other US states including New Jersey, Colorado, and Michigan. While it has access to certain other states and has submitted for a license in Virginia.

    Moreover, Wynn’s online app has collaborated with Memphis Grizzlies to strengthen its commitment to the Tennessee sports. In partnership with Grizzlies, WynnBET will work on the promotion through high-impact experiences emblematic of the energy for both brands.

    Wynn Resorts (WYNN) has made its move and is growing its digital ecosystem. With the opening of its resorts following the closure or restriction amid the pandemic, the company will improve its financial position in the coming quarters. So, Wynn is one of the top gambling stocks for investment in the long-term.

    International Game Technology (IGT)

    International Game Technology (IGT) is a multinational gambling corporation that specializes in the production of machines and other gambling technology. IGT has been working on expanding its ecosystem across its different segments.

    In that premise, the company recently announced the expansion of its historical horse racing (HHR) segment with IGT’s first historical racing machine (HRM) deployments in Virginia.In collaboration with Exacta Systems, the company at Peninsula Pacific Entertainment-owned gaming centers would provide players with their favorite game themes such as Red-Hot Tamales! ® and Fortune Coin®.

    In another development, IGT’s subsidiary, IGT Global Solutions Corp.signed a 4-year extension contract with Kentucky Lottery to continue iLottery and mobile app services. With this new contract, the company would target to engage new IGT PlayLottery content to its existing online gaming portfolio. 

    International Game Technology (IGT) stock has returned over 65% in the last five years to its shareholders. So, it would be an interesting bet in the long-term.

    GAN Ltd. (GAN)

    GAN Ltd. (GAN) is another prominent gambling stocks in the market. GAN is ranked as the #01 online gaming platform in the US. The company is building the background infrastructure that online gambling is built on. The software services include payment services, player identity validation, and regulatory reporting. And, with the acquisition of Coolbet last year, the company would penetrate the global sports betting market.

    A very warm coming event for GAN, the Super Bowl LV helped the company to deliver a record 14.6 million from settled online bets, popping up to a whopping 186% year-over-year. Most importantly, the company has signed a 10-year deal with one of its customers, Greenwood Gaming & Entertainment to license GAN’s patented iBridge integration framework.

    Moving ahead, GAN Ltd. seems a promising stock from the gambling sector.

  • The 3 Top Media Stocks to Watch for in 2021

    The 3 Top Media Stocks to Watch for in 2021

    The media segment has had a pump during the global pandemic, there’s much potential heading forward.

    Media industry is quite vast and brings a lot of opportunities for investors. The media companies produce and distributive movies, music, television shows, and series, and other programs.

    In the past decade or so, the use of smartphones and digital media outlets have massively increased screen time. More users are spending time watching movies, T.V. shows, and streaming networks due to outside restrictions. People in the US are now spending around 13+ hours interacting with some form of media each day.

    The evolution of social media has diversified traditional media companies. For instance, the media companies also have their streaming application or website, which is usually subscription-based. So, let’s have a look at the three top media stocks to watch for in 2021.

    Comcast Corp. (CMCSA)

    Comcast Corp. (CMCSA) is a telecommunications giant that owns the famous media network NBCUniversal. The company also pays a dividend and in the recent quarterly report, the dividend was increased.

    The company recently released its fourth-quarter 2020 results, which were quite impressive. The big media company recorded $27.71 billion in revenue during the quarter, beating the analyst estimates by nearly $1 billion. Though it was slightly down by 2% compared to the prior year. While the non-GAAP net income was $0.56 per share, which also surpassed estimates of $0.48 per share.

    So, the company is improving its quarterly results and as a result, it has raised the dividend. The new dividend that would be paid to the shareholders is $0.25 per share. This is almost a 9% increase preceding $0.23.

    The company has been quite active and has made notable developments recently. So, Comcast Corp. (CMCSA) is one of the stocks to watch from the media sector.

    Nexstar Media (NXST)

    Another prominent telecom firm, Nexstar Media (NXDT) is one of the stocks from the media sector that investors should be looking forward to. Nexstar was ranked No.1 in Local News for all the 12-months in 2020. The average viewership for each month was a mammoth 90 million.

    The company has gained a lot of attraction due to lockdown and the COVID times. The increase in average viewership soared over 70% year-over-year. The strong audience growth helped in record content engagement. Nexstar had almost 7.8 billion page views, up by 130% from 2019.

    The rapid growth last year has led the company to increase the quarterly cash dividend. The company upgraded the cash dividend to $0.70 of its Class A common stock, which reflects a 25% increase. Nexstar has a dividend yield of 2.22%, as we write this.

    ViacomCBS (VIAC)

    The renowned mass media firm, ViacomCBS (VIAC) is another media company that investors should keep in-sight. Though the legacy TV network has been facing pressure from cord-cutting. However, there are several aspects that could potentially help the stock to rise.

    The major aspect is ViacomCBS’ streaming aims, with a little support from marketwide short squeezes has helped the stock to soar quite high early in 2021. We can see more bullish sentiment around VIAC—in the coming days. That’s because, the company just generated $545 million in advertising spending during the NFL’s Super Bowl LV this past Sunday, as reported by Reuters. The commercial time during the entire game was for a record 57 minutes, with a 30-second ad sold around $5.6 million.

    Another positive for ViacomCBS (VIAC) its dividend, with a yield of 1.70%, as of writing time.

  • The Three Best Logistic Stocks for the long-term Investment

    The Three Best Logistic Stocks for the long-term Investment

    The logistic stocks would be a decent bet for the long run as online delivery services are emerging faster than ever.

    The logistics firms are expected to have more workload this year than in 2020.The global pandemic had affected the operations of logistic firms—just like any other company that works on-ground.

    However, the logistic operations have started to pick up face following lockdowns and social limitations. Moving people and things from place to place is a big business today. And, in the coming years, it’s going to get even bigger.

    The evolution of companies like Amazon, eBay, Alibaba, and others have increased the demand for logistic operation and services, in the past few years. As we head forward, logistic services would be in high demand with an increase in rising exports, domestic consumption, rising container volumes, and increased investments in the new facilities.

    For instance, the EV industry is one of the biggest industries that would help the logistic market rise alongside it. The rising deliveries of electric vehicles all over the world would increase freight and logistic operations. If you are looking for a potential logistic stock to invest in, here are the three best in the market.

    United Parcel Service (UPS)

    Uniter Parcel Service (UPS) is one of the biggest logistic firms and a giant in package delivery with over $143 billion in market cap. The company has seen a rise in its activities, with the surge in e-commerce. UPS provides its services all over the world by land, sea, and air. Moreover, it also has a chain of stores, drop boxes, and customer centers for the ease of customers.

    The company has been increasing its revenues; however, the profit margin has shrunk over the past few years. That’s a worrying point for investors. The CEO of UPS, Carol Tome is committed to improving the margins. Tome argues that the revenue growth is now exceeding volume growth with the help of management’s plan to enhance the quality of its earnings.

    Among the company’s plan is to reduce its non-operating expenses up to $500 million in 2021. UPS will be working on its margin this year and that’s the key point for investors to note in the next couple of quarters.

    Danaos Corp. (DAC)

    Danaos Corp. (DAC) is one of the largest independent owners of modern, large-size containerships. The company charters its containerships on long-term contracts to various large liner firms worldwide, at a fixed rate.

    The company is set to release its fourth-quarter 2020 outcomes on Feb. 16, 2021. Over the past three months, Zacks has raised its earnings estimate by 2.25%. And, that’s more likely to happen, as the company has surpassed the last four quarter estimates, with an average of 14%.

    Whereas, the annual revenues for this year are expected to reach $557 million, according to an analyst. If Danaos reports revenues as per the estimates, it would reflect a substantial increase of 23%.

    The consensus estimates are high with increasing demand for logistic services. So, Danaos Corp. (DAC) is a logistic stock with a long-term investment opportunity.

    ArcBest Corp. (ARCB)

    ArcBest Corp. (ARCB) is a holding company, dealing in freight transportation services and solutions. The company operates through three core business segments which includeArcBest, Asset-Based, and FleetNet.

    The company recently updated its fourth-quarter results. The earnings were recorded at $0.97 per share, beating the consensus estimate of $0.88. Whereas, the revenue for the ArcBest segment was around $816.41 million, surpassing estimates by 2.68%. 

    Furthermore, the company is anticipated to earn $0.55 per share, which would reflect a whopping increase of 52.78%. While the full-year earnings are forecasted at $4.03, up by 24% year-over-year.

  • The Three Top Healthcare Stocks to Buy in 2021

    The Three Top Healthcare Stocks to Buy in 2021

    The healthcare sector is a massive industry with a wide potential for investors.

    Healthcare is a basic necessity for people all over the world. Each year, we see new types of mysterious diseases that are often deadly. Such as the coronavirus is one of the broad examples of it. The global pandemic has caused more than 2.3 million deaths, and almost 107 million are facing the virus.

    Despite the health concerns, many of the health stocks made big gains. However, healthcare stocks as a whole underperformed the broader market, rising 11% compared to S&P 500 rose 15.9%. Still, the sentiment regarding healthcare stocks is high with the public health concerns. The vaccine is still in a frantic zone and many companies are still researching for more improvement.

    In that premise, healthcare is a big market and has massive potential. So, let’s have a look at the three top healthcare stocks to buy this year.

    Medtronic (MDT)

    Medtronic (MDT) is an American Irish-domiciled medical device corporation. The company generates most of its sales and profits from the US healthcare market. The healthcare firm with nearly $159 billion market value is a compelling stock for investors. Medtronic is among healthcare firms with safe, stable, and longer-term growth potential.

    Talking about Medtronic’s stability, the company is an exclusive member of the S&P dividend aristocrats list. This means that MDT is those dividend stocks that have raised their dividend payments for a consecutive 25 years long period or more. While MDT has an undisputed streak of over 43 years. 

    Medtronic has shown interest in investing in Compute Health Acquisition Corp., a blank-check company that is expected to go public—with an IPO of $750 million. The company has plans to buy almost 1.5 million units in the offering.

    Compute Health has plans to invest in the healthcare sector through the rising computing power and AI technology. This biotech healthcare is set to change the dynamics of the healthcare industry. So, Medtronic’s potential investment could be an effective one in the long-term.

    Vertex Pharmaceuticals (VRTX)

    Vertex Pharmaceuticals (VRTX) is one of the leading in the healthcare industry. The company’s primary focus remains on the development of drugs that treat the basic cause of cystic fibrosis (CF). CF is a rare genetic disease that causes lung problems and damages other organs, as well.

    The company’s most prominent drug, a 3-in-1 pill – Trikafta that obtain approval back in 2019, generated over $3.9 billion in sales for the very first year in 2020. Trikafta is anticipated to drive the company’s revenue for the next few years.

    Furthermore, Vertex’s management has indicated acquiring more assets to diversify its portfolio and accelerate its pipeline. VRTX shares are down and are expected to have an upward movement anytime soon. So, it’s one of the stocks to buy with potential upside.

    McKesson Corp. (MCK)

    McKesson Corp. (MCK) is a pharmaceutical and other healthcare products supplier and distributor. McKesson is more of a logistics firm, still, its involvement in the healthcare sector makes it a promising healthcare firm.

    The company recently reported third-quarter FY21 results which came on top with the rise in distribution services. The adjusted gross profit soared over 7% year-over-year, which was mostly driven by an incline in the distribution of COVID-19 tests. Moreover, McKesson’s work assembling ancillary supply kits for COVID-19 vaccines also played a key role in profit growth.

    The company distributed over 25 million vaccine doses of Moderna’s COVID-19 vaccine in January. The pharmaceutical distributor expects more contracts to be signed with the U.S. government for the distribution of more vaccines.   

    With this, the company has upgraded its full-year 2020 outlook and anticipates the adjusted earnings between $16.95 and $17.25 per share. So, McKesson Corp. (MCK) seems a suitable investment option with potential growth opportunity this year.

  • The Three Top Consumer Stocks that should be on your Watch List

    The Three Top Consumer Stocks that should be on your Watch List

    The consumer stocks are mostlya long-term option for investors, with usually high dividend yields.

    Consumer stocks held up well last year, and on reasonable grounds. When the pandemic reached its peak in March, daily life product sales soared as people got panic with a potential threat of supply issues.

    Looking into this year’s probability of consumer stocks success, it’s expected that things would be better economically compared to that of 2020. Moreover, there is a favorable amount of research work going on vaccines, and Pfizer’s vaccine is already being utilized. So, overall, the health and economic condition seem to be getting better with time.

    For investors, the consumer stock market has minimal volatility and well-charted returns. That’s what Warren Buffet—the investor’s Guru believes. On top of that, many of the consumer staple stocks are great dividend stocks with high yields, as well. If you are interested in consumer stocks, here are the three top stocks for investment.

    Coca-Cola (KO)

    The leading beverage company across the globe, Coca-Cola (KO) is one of the big giants in the market. The largest guru shareholder in the company is Warren Buffet, who has around 9.31% stakes in the company. KO has a dividend yield of 3.30%, as we write this.

    With the go green campaign in the US, the company has finally completed the launch of drink bottles made out of 100% recycled plastic for North American markets. All the recycled bottles will be available in stores later this month, as the company moves one step further to its bigger goal.

    The company claims that their recycled bottles will help in reducing greenhouse gas emissions by 10,000 metric tons per year—across different large markets. Coca-Cola has the goal to achieve up to 50% of recycled materials worldwide by 2030.

    The company is expected to report low results in the fourth quarter of 2020. Though Coca-Cola surpassed third-quarter expectations on a 6% revenue decline. The company will see a difference in its sale this year, with the stores expected to remain open. While the lockdown in the same period last year had a larger impact on sales.

    Costco Wholesale (COST)

    Costco Wholesale (COST) is a US-based multinational firm that runs a chain of membership-only warehouse clubs. The company has several advantages over its retailers, and that’s mostly due to its membership model having quite a reliable customer base. The customer retention rate is approximately 90%, which is remarkable.

    The company receives most of its profits on membership fees. This allows the company offering rock-bottom prices on merchandise, making it difficult to compete—along with recession-proof, as well.

    Costco’s growth strategies and better price management, along with its penetration into the online market have improved its sales performance. Recently, the company reported upbeat sales with sequential growth over the past few months. The warehouses recorded 17.9% growth to $13.64 billion in net sales during Jan. 2021. While, the growth rate in the last three months was 12.3%, 15.1%, and 15.9% as of Dec., Nov., and Oct., respectively.

    So, it seems that Costco Wholesale (COST) is synchronizing well with the e-commerce market. This will be a big plus for the company to generate large revenue in the long-term.

    Clorox (CLX)

    Clorox (CLX) is a global manufacturer and marketer of consumer and professional products. The company has recently declared its quarterly dividend for the 52ndconsecutive year. The dividend to be paid to the shareholders of Clorox’s common stock will be $1.11 per share. While it will be paid on May 7, 2021, to stockholders as of record of the close of business on April 21, 2021.

    On Feb.4, the company also updated its fiscal second-quarter 2021 results. The quarterly sales soared to 20%, with growth in all three businesses for a third consecutive quarter. The grilling sales surged up to double digits, driven by high consumption. This shows a massive rise in in-home meal occasions—as people are spending more time at home.

    Clorox (CLX) is growing with continued momentum. The company expects to keep up the pace in the coming quarters, as well.

  • The Three Top Semiconductor Stocks to Buy Now

    The Three Top Semiconductor Stocks to Buy Now

    The semiconductor stocks are on bullish radar this year following 5G and other infrastructure investments.

    The semiconductor stocks were expected to have a poor year amid the trade war with China and the global pandemic. However, the companies from the semiconductor segment kept on performing with notable growth.

    The new technologies are accelerating more than ever and 5G is one of the fastest-growing technology in the world. The bullish sentiment will continue to upsurge in 2021 following the advancement of 5G and other technological advancements such as the integration of cloud services.

    Moreover, the rising trend of online gaming and cloud computing is also rising quite rapidly. This has developed a path for the semiconductor and semiconductor equipment market. So, the semiconductor stocks are a healthy bet for the investment this year. Let’s have a look at the three top semiconductor stocks to buy now.

    Nvidia (NVDA)

    The semiconductor giant, Nvidia (NVDA) is cursing towards the buy point ahead of its fiscal fourth-quarter earnings report. Investor’s Business Daily reported that IBD MarketSmith charts show NVDA stock has formed a flat base with a buy point of 587.76, over the past 13 weeks.

    In the fiscal Q3 2020, the company reported data center sales of $1.9 billion, up by 162% year-over-year. The revenues skyrocketed 57% to$4.7 billion, with a gross margin of more than 63%. While the net profits were around $1.3 billion.

    The demand for chips and semiconductor products is high with people buying more laptops and gaming PCs during the pandemic. As we move forward, the production scale is going to increase—aiming for the high market demand. So, Nvidia (NVDA) is a potential option for investing in semiconductor stocks this year.

    Broadcom (AVGO)

    Broadcom (AVGO) is a global developer, designer, and supplier of analog semiconductor devices. The company reported 11.9% growth and 56.3% net income growth in Q4 results. The company has been on a roll and is continuing the strong growth from last year.

    The company reported $6.35 per share earnings, beating the expected earnings of $6.26. Broadcom is on a bullish radar and Zacks anticipate a +1.39% in the EPS for the recent quarter.

    While analyst Angelo Zino says that there will be an improvement in enterprise data center spending in the first half of the year. Adding on, he said that cloud spending should remain elevated for the time being.AVGO stock is rated as a buy with a price target of $510, by CFRA.

    Skyworks Solutions (SWKS)

    Skyworks Solutions (SWKS) is a diversified chipmaker, tightly tethered to Apple. The company generated around 56% of its revenue from Apple in fiscal 2020.

    Skyworks mostly expects its share gains from the 5G devices, which are coming in the market in large numbers now. Analyst Zino believes that the transition to 5G technology will be a tremendous bullish catalyst for the stock. Moreover, SWKS shares have a notable valuation, which is priced at only around 20 times forward earnings.

    While the company has zero debt and approximately $1 billion in cash. The company has long-term opportunities that would drive the stock’s price. So, SWKS is another big gun that is in the buy range at the moment.

  • The Best Tire Stocks for the long-term Investment

    The Best Tire Stocks for the long-term Investment

    The tire industry has a couple of notable stocks with upside in the long-term.

    The tire industry is an essential part of the automobile sector. The demand for electric vehicles is growing at a rapid speed and the shift toward green transportation is the hottest trend in today’s date.

    Though the demand for combustion vehicles may have been affected by the emergence of EVs. However, both the vehicles need tires to run, which keeps the demand for tires steady despite the changing ecosystem of auto space.

    As per ResearchAndMarkets.com, the global tire market is expected to cross 2.7 billion units by 2025. This shows that the tire market has much upside as the growth is quite swift. So, let’s have a look at the best tire stocks in the market to buy for long-term investment.

    The Goodyear Tire (GT)

    The Goodyear Tire (GT) is one of the biggest tire producers and has a stronghold in the market. After a bumpy 2020, the company is set to gain its momentum this year. GT has made a strong bullish movement in Feb. and with the announcement of Q4 results, the shares are on a roll.

    The company released its quarterly results with profits and top sales, beating estimates by a wide margin. Goodyear reported a profit of $63 million compared to a loss of $392 million in the past year. While the adjusted earnings per share were $0.44, surpassing the FactSet consensus estimate of $0.16. The sales dropped 2% to $3.7 billion but toppled FactSet estimates of $3.6 million.

    After a tough first half in the last year, things improved for the company in the second half of 2020. The CEO of Goodyear Tire, Richard J. Kramer highlighted that they have good momentum heading into 2021. The commercial business is outperforming the industry and the consumer replacement business is also getting stronger.

    Kramer added that their consumer OE pipeline has shown robust improvements. So, the company expects this year’s outlook to be profitable with an increase in sales.

    Cooper Tire (CTB)

    Cooper Tire (CTB) is another prominent US firm that manufactures tires. The company has much potential in the long run as the market is expected to grow in the coming years. However, the company has a handful of debts to pay in the coming 12-month period.

    The liabilities of Cooper due within 12-months are around $640.3 million, while $891.5 million beyond that. Whereas, to fulfill the obligations, the company had cash of $496 million and has receivables worth $584.6 million due in 12 months. So, the liabilities are almost $451.6 million more than both the cash and short-term receivables.

    In case of emergency funding, Cooper Tire is big enough to generate finances to fulfill its due obligations. The company is worth more than $2 billion, which shows that Cooper can raise capital to keep up its balance sheet.

    Whereas, the rest of the quarterly outcomes were on the positive side as the company continues to improve. After a hard-fought battle early in 2020 amid the pandemic, Copper Tire’s global unit volume soared 0.5% from the prior year—in Q3 2020. While the net sales surged over 8.6% to $765 million. The profit was around $172 million compared to $53 million in 2019.

    So, Goodyear Tire (GT) and Cooper Tire (CTB) are the two most suitable investment options for investors in the tire industry.

  • The Three Top Financial Stocks for Investment

    The Three Top Financial Stocks for Investment

    There are some exciting top-end financial stocks in the market.

    Tough times in 2020 have affected the working of various financial organizations. Though the financial sector is comprised of companies that offer different services including payment, loans, insurance, savings, and money management.

    The financial stocks belong to a vast scale of firms that involve commercial banking, credit cards, e-banking, brokerage, insurance, and asset management.

    With things turning around, the financial industry is also getting a stronghold this year. Moreover, there are a lot of expectations from the Biden administration to make a quick economic recovery. Based on this optimistic approach the market is performing far better. So, let’s have a look at the three top financial stocks for investment this year.

    JPMorgan (JPM)

    JPMorgan (JPM) is the largest US bank, and the largest company in the financial sector, with over market value of 426.21 billion. JPMorgan was one of those few companies that survived the financial crisis—managed by a legend, the CEO of the company Jamie Dimon. The company is again doing pretty well in yet another macroeconomic crisis.

    To add to the point, JPMorgan is too big to fail—as it continues to pass mandated stress tests regularly. Recently, Moody’s completed the periodic review of ratings of JPMorgan. Based upon the ratings, the a2 BCA reflects the diversification and competitive position of the company’s four franchises, including Commercial Banking, Corporate and Investment Banking, Consumer and Community Banking, and Asset and Wealth Management.

    The company was rated to skillfully improve its offerings and profitability during the pandemic. JPMorgan’s business segment has a significant scale. The company produced around $53 billion of pre-provision profits in 2020, allowing the bank to absorb $17.5 billion in credit provisions during this period.

    LendingClub Corp. (LC)

    LendingClub Corp. (LC) is the first P2P lending firm to register its offering as securities with the SEC. The shares of the lending firm have been trading on a higher side since Dec. 2020. Late last year, the company announced the approval of its acquisition of Radius Bancorp by the Office of the Comptroller of the Currency.

    The company just announced that it has closed the acquisition of Radius Bancorp and its digital bank subsidiary, Radius Bank. The new addition to its ecosystem would strengthen the digital network and the complementary businesses of LendingClub. In the future, this would drive more revenue.

    In Q3 2020, the company reported a non-GAAP EPS of $0.25, surpassing the analyst estimates by $0.31. While the revenue was also above the estimates by $16.6 million, reported at $74.7 million.

    The company also improved its credit score recently. With an improvement to its Relative Strength (RS) Rating on Thursday, the score was upgraded from 88 to 92.

    American Express (AXP)

    One of the leading US multinational financial services corporations, American Express (AXP) is the least favorite for investors among JPM and LC. AXP stock after gaining more than 80% since March 2020 has little chance of upside.

    Forbes highlighted that AXP shares are currently trading close to their fair share price i.e., around $130. However, the growing share price has enthused investors. We know that the market has been unpredictable in the pandemic. So, it’s hard to forecast how the stock will behave in the coming time.

    The company reported low third-quarter outcomes, with net income at $1.1 billion compared to $1.8 billion last year. American Express (AXP) management highlighted that things are improving and the current circumstances are better than the past two quarters.

    If the company reports better Q4 results, the stock might pump—going against the expectations of Forbes.