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Wall Street Week Ahead for the trading week beginning November 11th, 2019

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Good Sunday morning to all of you here on r/stocks. I hope everyone on this sub made out pretty nicely in the market this past week, and is ready for the new trading week ahead.

Here is everything you need to know to get you ready for the trading week beginning November 11th, 2019.

The market rally will soon be tested by a big Trump speech and testimony from the Fed chief – (Source)


Progress in trade talks and a steady, but accomodative Fed policy have eased the way for the stock market’s rally to new highs, and both will be in the forefront when President Donald Trump and Jerome Powell speak at separate events in the week ahead.


Against a backdrop of a stabilizing global economy, stocks have hit new highs and bond yields have pushed higher, particularly in the past week with a 23 basis point surge in the 10-year Treasury yield. Yields move opposite price, and the 10-year rose to end the week at 1.94%, its highest closing level since Aug. 1, the day Trump threatened another round of tariffs on China.


Trump speaks to the Economic Club of New York during a Tuesday luncheon, and investors are hoping for clarity on a possible trade deal. The Fed chairman speaks Wednesday to the Congressional Joint Economic Committee, and he also appears before the House Budget Committee Thursday.


There are a few key economic reports, including CPI on Wednesday and retail sales and industrial production on Friday. Empire State manufacturing survey Friday could provide a fresh look at the manufacturing sector in the New York region. Just a few major earnings are expected in the week ahead, including Cisco Wednesday and Walmart and NVIDIA on Thursday.


But trade is likely to remain the more important wild card for markets, as the calendar edges closer to Dec. 15, the date new tariffs on consumer goods from China would go into effect if there is no deal. The House of Representatives also hold impeachment hearings before the public for the first time in the coming week, but the markets have so far ignored the topic and see it unlikely that the Senate would convict the president.


Stock records

Stocks continued to rally to new highs this past week, and the major indices all ended the week at record levels, as bonds sold off hard. Stock market gains were limited part of the session Friday after Trump said that he has not agreed to the tariff rollbacks sought by China.


The S&P 500 was higher for a fifth week, up 0.9%, and is now up about 1.8% for November so far. The S&P closed at 3,093 Friday.


“President Trump is always unpredictable, so we’ll have to see what he says,” said Ed Keon, chief investment strategist at QMA.


Keon expects a trade agreement of some sort in the near future, and that should help risk markets to advance.


“The way we’ve been interpreting this is it probably amounts to a truce. The United States has been using this rhetoric that it’s a phase one deal. China has not embraced the same rhetoric. So I don’t know if we’ll get major progress on the thornier issues in the first deal,” Keon said. “The other question is how hard does the president push in an election year to make further progress in the negotiations, given that China might dig in its heels? That’s unknowable. I have no insight into what the president is going to do.”


Cowen policy strategist Chris Krueger said Trump’s address Tuesday could be important for the direction of a deal. “In our minds, the most critical sections will deal with trade and whether Trump is favoring the “phase one” deal with China and a scheduled rollback of the tariffs. This could well be a trial balloon to gauge the ferocity of expected pushback from influential China hawks. Trump will give remarks and then take questions from two moderators,” wrote Krueger.


Powell’s testimony is not expected to have as much potential to rock markets, after the clear message he sent to markets following the Fed’s rate cut Oct. 30.


“I would expect the chairman to continue the rhetoric he had at his last press conference. They’re probably on hold. It will depend on the data. If anything the data looks a little more promising on the margin. Certainly the consumer and service sector appear to be doing fine and with the GM strike ending, some of the things impacted by that should improve,” said Keon. “They think rates are appropriate for now, and if the economy weakens, they’ll be prepared to take further action.”


The health of the global economy has been a topic of concern in markets for months, but with the global rise in yields and signs of improvement in global PMI data, investors have clearly become more optimistic.


“I’ve been kind of skeptical most of the year, but I do think at the margin, the economic outlook has improved, especially outside the United States,” said Keon. “The recession talk that was pretty active just a month or two ago has really died down. The yield curve is dramatically uninverted. I feel a little better about the economic outlook.”


When the yield curve becomes inverted, short term rates, like the 2-year note yield for instance, rise above the long end, or the 10-year yield. That is very often a recession warning, as investors bet that the economy will be weaker in the longer term than it is in the near term. But there’s been a sudden shift, and now those curves are getting steeper.


Keon said the higher yields are a positive sign, and he is adding to stock holdings, but more in foreign names. “The sense Europe was heading into a recession has died off, and there are signs things are stabilizing,” he said. “This could all change in a minute but it looks like the overall outlook has significantly picked up in the last month or two.”


Dan Suzuki, portfolio strategist at Richard Bernstein Advisors, said he is still cautious about the improvement, though earnings were not as bad as expected, the Fed has cut rates and the trade situation appears to be improving. “That combined with green shoots on the macro front, the markets have really taken that and run with it,” he said, adding the move may have been too optimistic. “It’s out-sized relative to the significance of the data.”


Suzuki said he needs to see more proof that U.S. manufacturing has stabilized, as many believe. ISM manufacturing was better in October than in September, but it is still in contraction. “Why is this definitely the bottom? The jury’s still out,” he said.


“I think you have to answer the question—if this is the bottom and growth is going to rebound here, what’s going to be the catalyst for that?…I don’t see anything in the data that suggests there’s going to be a big rebound for any of those fronts. I see more headwinds to growth than I see tail winds,” he said. “On the investment side, it would be highly unusual to see a big rebo


This past week saw the following moves in the S&P:

(CLICK HERE FOR THE FULL S&P TREE MAP FOR THE PAST WEEK!)

Major Indices for this past week:

(CLICK HERE FOR THE MAJOR INDICES FOR THE PAST WEEK!)

Major Futures Markets as of Friday's close:

(CLICK HERE FOR THE MAJOR FUTURES INDICES AS OF FRIDAY!)

Economic Calendar for the Week Ahead:

(CLICK HERE FOR THE FULL ECONOMIC CALENDAR FOR THE WEEK AHEAD!)

Sector Performance WTD, MTD, YTD:

(CLICK HERE FOR FRIDAY'S PERFORMANCE!)
(CLICK HERE FOR THE WEEK-TO-DATE PERFORMANCE!)
(CLICK HERE FOR THE MONTH-TO-DATE PERFORMANCE!)
(CLICK HERE FOR THE 3-MONTH PERFORMANCE!)
(CLICK HERE FOR THE YEAR-TO-DATE PERFORMANCE!)
(CLICK HERE FOR THE 52-WEEK PERFORMANCE!)

Percentage Changes for the Major Indices, WTD, MTD, QTD, YTD as of Friday's close:

(CLICK HERE FOR THE CHART!)

S&P Sectors for the Past Week:

(CLICK HERE FOR THE CHART!)

Major Indices Pullback/Correction Levels as of Friday's close:

(CLICK HERE FOR THE CHART!

Major Indices Rally Levels as of Friday's close:

(CLICK HERE FOR THE CHART!)

Most Anticipated Earnings Releases for this week:

(CLICK HERE FOR THE CHART!)

Here are the upcoming IPO's for this week:

(CLICK HERE FOR THE CHART!)

Friday's Stock Analyst Upgrades & Downgrades:

(CLICK HERE FOR THE CHART LINK #1!)
(CLICK HERE FOR THE CHART LINK #2!)
(CLICK HERE FOR THE CHART LINK #3!)
(CLICK HERE FOR THE CHART LINK #4!)

November Expiration Week: S&P 500 & DJIA Best

DJIA has been up 10 of the last 15 years on Monday of expiration week and Friday is up 13 of the last 17 years with an average gain of 0.45%. By the way, it is not a mistake that November Op-Ex day has the same point change and percent change in 2014 and 2015. It was triple checked and its correct. If you go out 2 more decimal places in the percentage calculation, it’s different.

S&P 500, NASDAQ and Russell 2000 have not been as bullish as DJIA around or on November option expiration. S&P 500 has advanced only 16 times during options expiration week while NASDAQ and Russell 2000 have climbed only 15 and 14 times respectively over the past 25 years. All four indices have posted average losses on Monday and aside from DJIA and S&P 500 have been essentially mixed on options expiration day. Friday’s solid average gains across the board are largely due to a sizable gain in 2008. Any weakness next week could be a good entry point for new longs ahead of the usually bullish Thanksgiving holiday.

(CLICK HERE FOR THE CHART!)
(CLICK HERE FOR THE CHART!)
(CLICK HERE FOR THE CHART!)
(CLICK HERE FOR THE CHART!)

S&P 500 Price vs 50-DMA

The S&P 500 has been on a seemingly uninterrupted run higher over the last several days, but by some measures, it may not be as extended as you would think. The chart below shows the historical percentage spread between the S&P 500 and its 50-day moving average (DMA) over the last three years. Through Thursday's close, the S&P 500 was 3.2% above its 50-DMA, which is relatively high but nowhere near an extreme. The red line in the chart below shows the current percentage spread between the S&P 500's price and its 50-DMA. There have been a number of times since the 2016 election where this spread was higher with the most recent being back in July. In fact, 17% of all prior days in the last three years have seen the S&P 500 close at a higher level relative to its 50-DMA than it is now. That doesn't mean the market isn't overbought, but it's not exactly at unprecedented levels either.

(CLICK HERE FOR THE CHART!)

Leaders and Laggards Since FOMC

We've now had nearly a full week of trading since last Wednesday's FOMC meeting where Fed Chair Powell suggested that the punch bowl isn't going to be taken away anytime soon. During that time, we've seen a real shift in leadership as defensive sectors have sold off while cyclical sectors have been on fire. Energy – yes, Energy – has been the top-performing sector with a gain of 3.5% while Industrials aren't far behind with a gain of 2.8%, Behind these two, Technology and Financials have also comfortably outperformed the S&P 500's gain of 1.2%. On the downside, Real Estate and Utilities, two of the market's most popular sectors for much of 2019 due to their dividend yields, have both dropped over 1% while Consumer Staples and Health Care have also sold off.

(CLICK HERE FOR THE CHART!)

Due to the fact that we are also in the thick of earnings season, it's a bit more difficult to see how the Fed's actions last week impacted individual stocks as some of the best and worst performances over the last week have been earnings-related. With that caveat, the tables below list the best and worst-performing S&P 500 stocks over the last week. Starting off with the winners, three S&P 500 stocks are up over 20% in the last week, and all three were due to earnings reports. Overall, 12 stocks have rallied over 10%, while all 25 of the top performers are up over 7%. In terms of sector representation on the list, nearly a third (8) of the stocks on the list are from the Technology sector, while another five come from the Consumer Discretionary sector. The remaining 12 stocks on the list come from five different sectors.

(CLICK HERE FOR THE CHART!)

On the downside, 8 of the 25 worst performers since last week's FOMC meeting are down over 10% with Arista Networks (ANET) losing nearly a quarter of its value. Again, ANET's decline was tied to an earnings report as opposed to a reaction to the FOMC. In terms of overall sector representation, though, the underperformance of the Real Estate sector highlighted above is also evident on this list as eight of the companies listed come from that sector.

(CLICK HERE FOR THE CHART!)

The Few, the Lowly, the Laggards

With less than two months left to go in 2019, the S&P 500 is sitting on a gain of nearly 23% YTD, and all but two of the index's 24 industry groups are up by at least double-digit percentages. The two laggards are Energy (+4.5%) and Drugs and Biotechs (+5.5%), while the three strongest groups are all from the Technology sector (Tech Hardware: +44.8%, Semis: +37.7%, and Software: +32.8%). Surprisingly enough, Banks are even starting to move up the performance list as that group is up just a hair under 30% on the year putting it in fifth place on a YTD basis.

The table below lists where each of the S&P 500's Industry Groups is currently trading with respect to its 50-DMA. While you would expect just about everything to be extended after the recent leg higher, that's not the case. The S&P 500 as a whole is just 3% above its 50-DMA, and just five groups are more than 5% above their 50-DMAs. The two most extended groups are Tech Hardware (think Apple) and Banks. On the downside, there are actually as many Industry Groups trading below their 50-DMAs as there are groups trading more than 5% above their 50-DMAs. As shown at the bottom of the table, Consumer Services, Real Estate, Household & Personal Products, Commercial Services, and Utilities are all currently below their 50-DMAs. These aren't groups that have been lagging the market all year. In fact, three of them are outperforming the S&P 500 on a year to date basis, but in the majority of cases, these are defensive-oriented groups that have fallen out of favor as the market's sentiment has shifted and rates have risen.

(CLICK HERE FOR THE CHART!)

Seasonally Strong Period, But…

As I head to Las Vegas for my annual pilgrimage to @MoneyShows TradersEXPO I am both thrilled and shocked to hear everybody on Wall Street and the financial media talking about bullish yearend market seasonality and practically every one of them has used the phrase, “seasonally strong period.”

I’m thrilled because it validates what we already know and what I live and breathe: that there are clear evidence-based results of real, consistent, tradable and investable seasonal market patterns. I am shocked at how late many of them are to the party. We’ve been in bullish Best Six Months mode since our Seasonal MACD Buy Signal on October 11.

Since our October 11 Buy Signal we have tactically maneuvered out of our defensive positions in Bonds, Cyclicals, Utilities and others and into the main U.S. equity index ETFs: DIA, SPY, QQQ and IWM and the gamut of seasonally strong growth sectors over three weeks ago. We also put out a brand new Stock Basket of undervalued growth stocks under Wall Street’s radar.

Market seasonality is clearly firing on all pistons as it has been all year, but everyone’s is jumping on the seasonal bandwagon just a two regular seasonal soft patches are about to come around on the calendar. Now that our Bullish Halloween Trading Strategy is complete with some big market gains at the end of October and the beginning of November we are on the lookout for weakness ahead of Thanksgiving.

Next week is two weeks before Thanksgiving and we’ve shown in several recent posts, it is part of the mid-November soft patch. Then stocks usually pick up in anticipation of Thanksgiving and continue to rally through the end of November. After thanksgiving watch out, the first couple weeks of December are notoriously choppy and not especially bullish as tax-loss selling kicks into high gear.

With the market elevated and the news ever changing, stocks will be vulnerable to these perennial weak spots.

(CLICK HERE FOR THE CHART!)

Presidential Cycle Stars Align for Stocks in 2020

Despite all of the geopolitical events, things still look good for stocks next year with an incumbent running. The potential for a decent trade truce with China, along with an economy that’s still growing and accommodative interest rates add up to a continuation of the bull market.

With the Stock Trader’s Almanac 2020 coming off the press this week here’s a little preview of some our analysis and outlook that’s in the 53rd Annual Edition.

Presidential incumbency is a powerful phenomenon and the driving force behind the 4-Year Presidential Election Cycle. This quadrennial quadrille is what has made the Pre-Election Year the best year of the cycle and Election Year second best. Since 1952 S&P 500 is up 12.5% on average in election years when a sitting president is running for reelection vs. 6.7% in all election years and –1.5% in election years with an open field and no incumbent commander-in-chief running for a second term.

We are also arguably now experiencing some fiscal and monetary policy synchronicity. After several years of conflicting policy the Federal Reserve and the U.S. Federal government are finally getting in synch. Interest rates are historically low and the Fed has lowered rates again at the last three scheduled FOMC meetings at the same time as fiscal policy has been lowering taxes and increasing spending. These dual pro-growth policies should continue to propel the stock market higher.

Gains will of course not come without pause and correction. The world stage will continue to feature some challenging geopolitical, political, diplomatic, trade-related and economic storylines. U.S. presidential campaign politics will increasingly focus on domestic political disputes, standoffs and unfinished business – as well as impeachment proceedings. But when all is said and done, we expect 2020 to be a positive year based on the historical patterns and cycles and current favorable policies, healthy economics, and positive market behavior.

(CLICK HERE FOR THE CHART!)

Pre-Election Year Patterns: A November Market Pause

Now that we’ve survived Octoberphobia and the market has begun to strengthen again, breaking out above resistance and logging new highs on DJIA, S&P 500 and NASDAQ, we are likely to experience a bit of consolidation here in November. Normally the top S&P month of the year and #2 for DJIA, NASDAQ and the Russell 2000, November has been weaker in Pre-Election Years.

As you can see in the updated chart of Pre-Election Year Seasonal Patterns overlaid with 2019 we have been tracking all year November tends to be flat in the Pre-Election Year with a pop around Thanksgiving. Then after the usual first half of December softness the market tends to push toward additional new highs near yearend. Considering the banner performance so far this year and the uncanny tracking of this historical seasonal pattern, we expect the stock to consolidate over the next few weeks and then resume its march higher.

(CLICK HERE FOR THE CHART!)

Bulls Stay in Motion

“An object in motion tends to remain in motion along a straight line unless acted upon by an outside force.” Sir Isaac Newton

What a year it has been for the bulls. The S&P 500 Index recently made four more new highs, and it’s up more than 20% for the year (as of Nov. 4). This leads to the big question: What could happen in the final two months of 2019? Well, we think the bulls might like it.

“A good year tends to see continued strong performance the final two months of the year,” explained LPL Financial Senior Market Strategist Ryan Detrick. “In fact, when the S&P 500 has been up 20% or more for the year heading into the usually bullish November, stocks have never dropped in November, while December also has tended to see a strong upward bias.”

As the LPL Chart of the day shows, going back to 1950, when the S&P 500 was up more than 20% heading into November, then the final two months were up an average of 6.2%. The S&P 500 has also never fallen in the final two months of the year after closing October up more than 20% for the year.

This phenomenon could be due to portfolio managers buying to play catch-up, or it could be that an object in motion stays in motion, as Newton noted more than 300 years ago.

(CLICK HERE FOR THE CHART!)

STOCK MARKET VIDEO: Stock Market Analysis Video for Week Ending November 8th, 2019

([CLICK HERE FOR THE YOUTUBE VIDEO!]())

(VIDEO NOT YET POSTED!)

STOCK MARKET VIDEO: ShadowTrader Video Weekly 11.10.19

([CLICK HERE FOR THE YOUTUBE VIDEO!]())

(VIDEO NOT YET POSTED!)


Here are the most notable companies (tickers) reporting earnings in this upcoming trading week ahead-


  • $NVDA
  • $WMT
  • $CRON
  • $CGC
  • $CSCO
  • $ACB
  • $OSTK
  • $DHI
  • $NEPT
  • $TLRY
  • $JD
  • $FOLD
  • $GOOS
  • $TSN
  • $AAP
  • $SWKS
  • $JCP
  • $AMAT
  • $LK
  • $CBS
  • $SE
  • $NBEV
  • $DXC
  • $HUYA
  • $TME
  • $YY
  • $CGEN
  • $CTEK
  • $QRTEA
  • $HIIQ
  • $DF
  • $WIX
  • $TWOU
  • $BEP
  • $KEM
  • $NOG
  • $NTAP
  • $SAGE
  • $WB
  • $VIAB
  • $ROK
  • $RETA
  • $GO
  • $TDW
  • $ERJ

(CLICK HERE FOR NEXT WEEK'S MOST NOTABLE EARNINGS RELEASES!)
(CLICK HERE FOR NEXT WEEK'S HIGHEST VOLATILITY EARNINGS RELEASES!)
(CLICK HERE FOR MOST ANTICIPATED EARNINGS RELEASES FOR THE NEXT 5 WEEKS!)

Below are some of the notable companies coming out with earnings releases this upcoming trading week ahead which includes the date/time of release & consensus estimates courtesy of Earnings Whispers:


Monday 11.11.19 Before Market Open:

(CLICK HERE FOR MONDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

Monday 11.11.19 After Market Close:

(CLICK HERE FOR MONDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!)

Tuesday 11.12.19 Before Market Open:

(CLICK HERE FOR TUESDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

Tuesday 11.12.19 After Market Close:

(CLICK HERE FOR TUESDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!)

Wednesday 11.13.19 Before Market Open:

(CLICK HERE FOR WEDNESDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

Wednesday 11.13.19 After Market Close:

(CLICK HERE FOR WEDNESDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!)

Thursday 11.14.19 Before Market Open:

(CLICK HERE FOR THURSDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

Thursday 11.14.19 After Market Close:

(CLICK HERE FOR THURSDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!)

Friday 11.15.19 Before Market Open:

(CLICK HERE FOR FRIDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

Friday 11.15.19 After Market Close:

([CLICK HERE FOR FRIDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!]())

NONE.


NVIDIA Corp. $207.78

NVIDIA Corp. (NVDA) is confirmed to report earnings at approximately 4:20 PM ET on Thursday, November 14, 2019. The consensus earnings estimate is $1.58 per share on revenue of $2.90 billion and the Earnings Whisper ® number is $1.64 per share. Investor sentiment going into the company's earnings release has 70% expecting an earnings beat The company's guidance was for earnings of $1.48 to $1.66 per share. Consensus estimates are for earnings to decline year-over-year by 5.39% with revenue decreasing by 8.83%. Short interest has decreased by 11.1% since the company's last earnings release while the stock has drifted higher by 30.4% from its open following the earnings release to be 23.3% above its 200 day moving average of $168.57. Overall earnings estimates have been revised lower since the company's last earnings release. On Wednesday, October 23, 2019 there was some notable buying of 4,074 contracts of the $195.00 call expiring on Friday, November 15, 2019. Option traders are pricing in a 7.3% move on earnings and the stock has averaged a 6.2% move in recent quarters.

(CLICK HERE FOR THE CHART!)


Walmart Inc. $119.44

Walmart Inc. (WMT) is confirmed to report earnings at approximately 7:00 AM ET on Thursday, November 14, 2019. The consensus earnings estimate is $1.09 per share on revenue of $128.99 billion and the Earnings Whisper ® number is $1.15 per share. Investor sentiment going into the company's earnings release has 85% expecting an earnings beat. Consensus estimates are for year-over-year earnings growth of 0.93% with revenue increasing by 3.28%. Short interest has increased by 1.5% since the company's last earnings release while the stock has drifted higher by 6.1% from its open following the earnings release to be 11.5% above its 200 day moving average of $107.15. Overall earnings estimates have been revised higher since the company's last earnings release. On Monday, November 4, 2019 there was some notable buying of 2,732 contracts of the $119.00 call expiring on Friday, November 15, 2019. Option traders are pricing in a 4.2% move on earnings and the stock has averaged a 3.8% move in recent quarters.

(CLICK HERE FOR THE CHART!)


Cronos Group Inc. $8.52

Cronos Group Inc. (CRON) is confirmed to report earnings at approximately 7:00 AM ET on Tuesday, November 12, 2019. The consensus estimate is for a loss of $0.03 per share on revenue of $9.73 million and the Earnings Whisper ® number is ($0.04) per share. Investor sentiment going into the company's earnings release has 60% expecting an earnings beat. Consensus estimates are for earnings to decline year-over-year by 0.00% with revenue increasing by 238.20%. Short interest has increased by 11.1% since the company's last earnings release while the stock has drifted lower by 45.1% from its open following the earnings release to be 43.0% below its 200 day moving average of $14.94. Overall earnings estimates have been revised lower since the company's last earnings release. On Tuesday, October 29, 2019 there was some notable buying of 6,300 contracts of the $10.00 call expiring on Friday, December 20, 2019. Option traders are pricing in a 12.3% move on earnings and the stock has averaged a 3.5% move in recent quarters.

(CLICK HERE FOR THE CHART!)


Canopy Growth Corporation $21.46

Canopy Growth Corporation (CGC) is confirmed to report earnings at approximately 5:00 PM ET on Thursday, November 14, 2019. The consensus estimate is for a loss of $0.27 per share on revenue of $111.02 million and the Earnings Whisper ® number is ($0.29) per share. Investor sentiment going into the company's earnings release has 53% expecting an earnings beat. Consensus estimates are for year-over-year earnings growth of 64.47% with revenue increasing by 521.96%. Short interest has increased by 21.2% since the company's last earnings release while the stock has drifted lower by 25.6% from its open following the earnings release to be 41.5% below its 200 day moving average of $36.71. Overall earnings estimates have been revised lower since the company's last earnings release. On Wednesday, October 23, 2019 there was some notable buying of 6,403 contracts of the $7.50 put expiring on Friday, June 19, 2020. Option traders are pricing in a 12.0% move on earnings and the stock has averaged a 13.0% move in recent quarters.

(CLICK HERE FOR THE CHART!)


Cisco Systems, Inc. $48.83

Cisco Systems, Inc. (CSCO) is confirmed to report earnings at approximately 4:05 PM ET on Wednesday, November 13, 2019. The consensus earnings estimate is $0.81 per share on revenue of $13.14 billion and the Earnings Whisper ® number is $0.83 per share. Investor sentiment going into the company's earnings release has 68% expecting an earnings beat The company's guidance was for earnings of $0.80 to $0.82 per share. Consensus estimates are for year-over-year earnings growth of 9.46% with revenue increasing by 0.52%. Short interest has decreased by 21.3% since the company's last earnings release while the stock has drifted higher by 3.1% from its open following the earnings release to be 5.7% below its 200 day moving average of $51.76. Overall earnings estimates have been unchanged since the company's last earnings release. On Friday, November 8, 2019 there was some notable buying of 6,707 contracts of the $45.00 put expiring on Friday, December 20, 2019. Option traders are pricing in a 4.8% move on earnings and the stock has averaged a 4.9% move in recent quarters.

(CLICK HERE FOR THE CHART!)


Aurora Cannabis Inc $3.81

Aurora Cannabis Inc (ACB) is confirmed to report earnings at approximately 5:00 PM ET on Thursday, November 14, 2019. The consensus estimate is for a loss of $0.03 per share on revenue of $72.82 million and the Earnings Whisper ® number is ($0.05) per share. Investor sentiment going into the company's earnings release has 60% expecting an earnings beat. Consensus estimates are for earnings to decline year-over-year by 133.33% with revenue increasing by 220.71%. The stock has drifted lower by 35.1% from its open following the earnings release to be 45.8% below its 200 day moving average of $7.03. Overall earnings estimates have been revised lower since the company's last earnings release. On Wednesday, November 6, 2019 there was some notable buying of 9,910 contracts of the $3.50 call expiring on Friday, November 29, 2019. Option traders are pricing in a 14.6% move on earnings and the stock has averaged a 4.3% move in recent quarters.

(CLICK HERE FOR THE CHART!)


Overstock.com, Inc. $9.70

Overstock.com, Inc. (OSTK) is confirmed to report earnings at approximately 8:00 AM ET on Tuesday, November 12, 2019. The consensus estimate is for a loss of $0.70 per share on revenue of $404.59 million. Investor sentiment going into the company's earnings release has 35% expecting an earnings beat. Consensus estimates are for year-over-year earnings growth of 54.84% with revenue decreasing by 8.17%. Short interest has decreased by 46.4% since the company's last earnings release while the stock has drifted lower by 53.9% from its open following the earnings release to be 37.7% below its 200 day moving average of $15.57. Overall earnings estimates have been unchanged since the company's last earnings release. On Friday, November 8, 2019 there was some notable buying of 728 contracts of the $5.00 call expiring on Friday, January 15, 2021. Option traders are pricing in a 18.3% move on earnings and the stock has averaged a 10.9% move in recent quarters.

(CLICK HERE FOR THE CHART!)


D.R. Horton, Inc. $51.15

D.R. Horton, Inc. (DHI) is confirmed to report earnings at approximately 6:30 AM ET on Tuesday, November 12, 2019. The consensus earnings estimate is $1.25 per share on revenue of $4.81 billion and the Earnings Whisper ® number is $1.28 per share. Investor sentiment going into the company's earnings release has 70% expecting an earnings beat. Consensus estimates are for year-over-year earnings growth of 2.46% with revenue increasing by 6.77%. Short interest has decreased by 9.7% since the company's last earnings release while the stock has drifted higher by 15.5% from its open following the earnings release to be 11.6% above its 200 day moving average of $45.82. Overall earnings estimates have been revised higher since the company's last earnings release. On Wednesday, October 30, 2019 there was some notable buying of 11,277 contracts of the $55.00 call and 2,743 contracts of the $50.00 put expiring on Friday, November 15, 2019. Option traders are pricing in a 6.2% move on earnings and the stock has averaged a 5.7% move in recent quarters.

(CLICK HERE FOR THE CHART!)


Neptune Wellness Solutions Inc. $3.54

Neptune Wellness Solutions Inc. (NEPT) is confirmed to report earnings at approximately 6:00 AM ET on Monday, November 11, 2019. The consensus estimate is for a loss of $0.04 per share on revenue of $9.83 million and the Earnings Whisper ® number is ($0.03) per share. Investor sentiment going into the company's earnings release has 52% expecting an earnings beat. Consensus estimates are for earnings to decline year-over-year by 33.33% with revenue increasing by 81.67%. Short interest has increased by 47.0% since the company's last earnings release while the stock has drifted lower by 23.9% from its open following the earnings release to be 16.6% below its 200 day moving average of $4.25. Overall earnings estimates have been revised higher since the company's last earnings release. On Tuesday, November 5, 2019 there was some notable buying of 4,016 contracts of the $6.00 call expiring on Friday, May 15, 2020. Option traders are pricing in a 24.0% move on earnings and the stock has averaged a 4.9% move in recent quarters.

(CLICK HERE FOR THE CHART!)


Tilray, Inc. $23.42

Tilray, Inc. (TLRY) is confirmed to report earnings at approximately 4:05 PM ET on Tuesday, November 12, 2019. The consensus estimate is for a loss of $0.29 per share on revenue of $50.57 million and the Earnings Whisper ® number is ($0.36) per share. Investor sentiment going into the company's earnings release has 57% expecting an earnings beat. Consensus estimates are for earnings to decline year-over-year by 45.00% with revenue increasing by 403.33%. Short interest has increased by 11.1% since the company's last earnings release while the stock has drifted lower by 43.1% from its open following the earnings release to be 49.5% below its 200 day moving average of $46.36. Overall earnings estimates have been revised lower since the company's last earnings release. On Thursday, October 24, 2019 there was some notable buying of 3,248 contracts of the $22.50 call expiring on Friday, November 22, 2019. Option traders are pricing in a 15.8% move on earnings and the stock has averaged a 9.6% move in recent quarters.

(CLICK HERE FOR THE CHART!)


DISCUSS!

What are you all watching for in this upcoming trading week?


I hope you all have a wonderful weekend and a great trading week ahead r/stocks.

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Share Market

Excess Inventory in the Aftermath of COVID-19

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In the apparel world, Spring merchandise is typically purchased in the Fall. As we move through Spring and shelter-at-home orders remain in place, retailers are now faced with a dilemma: in the midst of COVID-19, there’s an unprecedented amount of inventory that will likely never leave the store shelves. That’s because consumers are focusing more on purchasing essentials than apparel. So unlike toilet paper, thousands of shirts, pants, and shoes won’t be in high demand—or sell out—this season.

Amid the pandemic, countless retailers are now closing their doors and are offering online deals in the place of in-store purchases. Nike, Macy’s, and American Eagle are among the retailers offering deep discounts for their apparel right now; still, once stores reopen, there will surely be a plethora of additional markdowns in preparation for summer and fall.

As the market braces for a potential recession, stores are finding themselves in a world of surplus. Retailers purchased Spring apparel months ago during a robust and healthy economy—and as a different reality strikes today, they’re now faced with having to decide how to offload the stagnant, excess inventory that will likely not sell: “This is an event that there is no systemic capacity to predict or respond to,” said Mark Cohen, director of retail studies at the Columbia Business School. “Everybody is trapped.” There is an “enormous volume of goods already sitting on retailers’ shelves or sitting in the pipeline. It’s going to have to be flushed out.”

As brands leverage their online, outlet, and factory store channels to sell, this will also present an opportunity for diversifying their channels and expanding beyond traditional methods. This is an unprecedented moment in retail, and calls for different measures;  deep discounts and traditional channels won’t be enough.

One way retailers can recapture revenue and offset loss lies with a B2B recommerce solution. Partnering with a secondary market expert that can build a customized B2B online auction marketplace is the way to go. A solution of this type allows for access to thousands of vetted buyers (which generate more demand), a consistent listing cadence, and a private, customized setting in which the seller can place restrictions on buyers—which protects the brand.

B-Stock’s auction marketplaces are customized and scaled based on each retailer’s needs and goals. That’s why nine out of the top 10 U.S. retailers are leveraging our platform to drive demand and achieve higher pricing, as well as a faster sales cycle—all while maintaining brand integrity. 

If you’re ready to harness the value of the secondary market and give your returns and excess inventory a second life by selling to a new sector of buyers, schedule a demo today.

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The post Excess Inventory in the Aftermath of COVID-19 appeared first on B-Stock Solutions.



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10 of the Best Value Stocks to Invest in Now

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Value stocks can seem like a bargain to investors, but can become a valuable part of an investor’s portfolio. This article will explain what value stocks are, how they differ from growth stocks, and how TradingSim can help investors find the 10 best value stocks.

What is a value stock?

A value stock is a bit like a stock on sale. Value stocks tend to trade at lower prices than other stocks.  In addition to being cheap, value stocks tend to have less-than-average growth than other stocks. They also tend to have low valuations in relation to earnings and cash flow.

Value investing can be a great choice for risk-averse investors who want to slowly wade into the investing waters.  Value stocks also tend to have dividend payments to investors every quarter. Also, with the Dow Jones in such volatility, these value stocks could be a safer alternative to faster-paced growth stocks.

How is a value stock different from a growth stock?

Here are some differences between growth stocks and value stocks.  The comparison of value stocks versus growth stocks shows vast differences.

Growth stocks usually

  • have high valuations. Tech stocks, like Amazon (NASDAQ:AMZN), often have a sky-high valuation in the billions. Amazon has a record-shattering $1 trillion valuation.
  • have high P/E ratios. Growth stocks usually have a P/E ratio of 16 and higher. Netflix’s ( NASDAQ:NFLX) P/E ratio has skyrocketed to trading for 86 times its earnings.
  • steadily rising stock prices.  Growth stocks like Zoom ( NASDAQ:ZM) have stock prices that surged 200%  above its listed IPO price of $ 36 per share.
  • strong growth rate. Many growth stocks have better-than-average projected future earnings. Growth stocks also tend to outperform the overall S&P 500.
  • more available cash flow. Easily available cash flow is usually a sign that a company has a growth stock.
  • don’t pay dividends to investors.  Growth stocks from corporations tend to reinvest money back into corporations. They don’t usually offere quarterly dividends to investors.
  • many growth stocks are in tech or other growing industries. Teledoc (NYSE: TDOC) is a growth stock that rose 18% just over the past month.  The telehealth company is successful because of its innovation in medicine. Teledoc’s stock is also performing well because of its timely use by patients during the coronavirus crisis.
  • riskier for investors. Growth stocks can rise higher than the overall market, but can fall faster into a bull trap when the market declines into a bull market as well.

Value stocks are less volatile than growth stocks

In contrast to growth stocks, value stocks usually

  • have low price-to-earnings ratios (P/E). Value stocks, like MetLife(NYSE:MET) have a rock-bottom P/E ratio of 5.10. Life insurance stocks often have a low P/E ratio below 16.
  • have a slower growth rate in more established industries. Growth stocks tend to increase quickly in innovative new fields. Tech stocks,  like Tesla (NYSE: TSLA) especially, may have wild swings on the stock market because of production issues ( or Elon Musk’s comments).  However, value stocks usually grow at a slower pace and are in industries that have been around for decades. BP(NYSE:BP)  is a giant in the oil industry and is a value stock with less drastic change in its stock price.
  • pays dividends to investors.  In addition to BP, another oil stock, Chevron (NYSE: CVX) is a high-paying dividend stock. Chevron pays investors a 7.5% dividend to investors.
  • are undervalued. Semiconductor maker Qualcomm(NYSE: QCOM) has undervalued stock because it’s overlooked, but will be vital to the future. Even though Qualcomm stock is in the $66 range, the stock should rise soon. Since Qualcomm is making chips that will be used in 5G technology, the corporation’s stock will likely benefit from this in the future.
  • are less risky than growth stocks. Value stocks are usually less volatile and have steady returns for investors. Even though IBM (NYSE:IBM) stock has dropped, the stock is still a solid value stock. IBM is moving into cloud computing with its acquisition of software company Red Hat. The stock will likely remain a safe bet for investors who are looking for value stocks.

Top 10 Value Stocks for Investors

For investors that want low-risk investing , this value stock list has venerable stocks that have high-yield dividends. Here are 10 stocks that are some of the top value stocks to add to a portfolio.

 

1. Berkshire Hathaway

Warren Buffett is the OG investor and his Berkshire Hathaway (NYSE:BRK-A) and (NYSE:BRK-B) is the top value stock on Wall Street. The Oracle of Omaha has been choosing stocks since the Beatles were a new group. His conglomerate has chosen some of the best stocks to invest in, and Buffett’s corporation itself is a must-pick stock.

Berkshire Hathaway started in 1929, but didn’t become a viable company until Buffett took over the corporation in 1965. His investment strategy was to buy undervalued companies, then let them grow. As a result of value investing, Buffett’s fortune has grown to almost $70 billion. 

Former hedge fund manager Whitney Tilson says Berkshire Hathaway is a top value stock because of Buffett’s wise choices.

“I’m being even more conservative because I’m not factoring in the value Warren Buffett will likely create as he puts his $128 billion cash hoard to work amidst this chaos: buying back his own stock in size, buying other stocks, and negotiating deals with desperate companies,”  said Tilson.

“It’s an incredible collection of high-quality businesses… it’s run by the greatest investor of all time… and it has the ultimate, Fort Knox-like balance sheet: $128 billion in cash and short-term investments, $19 billion in bonds, and roughly $200 billion in liquid, blue-chip stocks,” added Tilson.

This TradingSim chart shows Berkshire Hathaway’s trajectory the week of March 19, 2020.

Berkshire Hathaway stock

Berkshire Hathaway has a low P/E ratio of 5.46, which makes the company’s undervalued shares a value stock for investors.  While most value stocks offer dividends, Berkshire doesn’t. Buffett noted that he’d rather reinvest in his companies to improve the efficiency of his investments. For investors interested in value investing, Berkshire Hathaway is a must.

Buffett only buys stocks he likes for the long haul

Berkshire Hathaway is a value stock because of its investment in other blue-chip stocks. Buffett is known for his quotes about cautious, long-term investing. One quote about long-term investing is especially timely with the stock market slowing down now:Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

Buffett also loves to quote Benjamin Graham, the father of value investing. “Long ago, Ben Graham taught me that price is what you pay; value is what you get. Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down,”  said Buffett.

Buffett doesn’t just chase trading trends. He only invests in companies he believes in for a long time. Even though his stock picks may seem too safe, they pay off in the long run. His recent $549 million investment in Kroger grocery stores in February has been very savvy. The recent run on grocery stores like Kroger during the COVID-19 pandemic has made Berkshire Hathaway’s investment a good buy.  Buffett has the Midas touch when it comes to picking stocks. His time-tested value investing in top corporations make Buffett’s Berkshire Hathaway a top value stock.

2. Apple

One of the value stocks that Berkshire Hathaway invests in is Apple (NASDAQ:AAPL). The tech giant is a value stock because of its lower-than average P/E of 20. For the largest tech company in the world, Apple is ironically undervalued compared to other tech stocks like (NASDAQ:FB). Even though Apple is a tech company, it’s also seen as a hardware company since it produces iPhones and Apple Watches.

The company has a hallmark of a value stock, strong earnings reports. Apple’s last earnings report saw the company earn a record- shattering $91.8 billion.  Apple’s ample cash glow gives the stock a characteristic of a growth stock. However, the company’s $58.9 billion in cash flow    in fiscal year 2019 helped pay its $14.1 billion dividend payout to investors.  That’s an impressive 6.5% yield. Apple is a reliable value stock that investors should add to their portfolio.

Coronavirus will impact Apple, but stock will bounce back

The COVID-19 crisis has hit every corporation, especially Apple. Many Chinese factories that make Apple devices have been shut down in February. However, the pandemic is slowing in China and factories are starting to reopen. Apple is also set to launch its 5G iPhone in the fall, which should help Apple stock recover from its current losses. Apple recently noted that even though iPhone sales are down in China, there is still growth in sales in other countries. This TradingSim chart shows the volatility in Apple’s stock.

Apple stock

“Outside of China, customer demand across our product and service categories has been strong to date and in line with our expectations, ” said Apple.

Wearables make Apple a value stock

Even though Apple stock is currently down, Apple devices are still going strong. Many homebound people are Facetime on their iPhones and iPads to stay connected to each other (and to the games they’re addicted to playing). Apple Watches and other wearable device sales rose 17% in 2019.  The ability of Apple to innovate in technology gives value investing in Apple a benefit to investors.

Craig Johnson, chief marketing technician at Piper Sandler, said Apple is still a value stock because of customer loyalty. He noted that even through the last economic downturn 10 years ago, customers still bought iPhones.

“People are still going to step up and they’re going to buy the iPhone. You know, when this gets relaunched and gets released for the 5G iPhone, they’re going step up and buy it. We saw the iPhone get released in 2007 and 2008 in the middle of the crisis there. Consumers still were able to open their wallet and buy these things,” said Johnson.

Apple can withstand the current market volatility and COVID-19 crisis because of its ample cash flow, innovative new products, and a devoted customer base.

 

3. Coca-Cola

Another value stock Buffett believes in is Coca-Cola( NYSE:KO). Buffett owned the stock since hip-hop was a new category of music.  The soft drink company is a value stock because of its high dividend and its steady cash flow. Coca-Cola made billions by selling its soda. Then the corporation pivoted to sales from water and low-calorie drinks and increased sales. The beverage company’s earnings for Q4 2019 were $9.07 billion and the stock rose 22% over the past year. However, CEO James Quincey noted that Coca-Cola has been negatively impacted by the coronavirus pandemic.

“The supply chain is creaking around the world. There are flash points when it’s getting a little harder to get ingredients through, whether it’s delays at the borders, the big changes in channel mix,” said Quincey.

Coca-Cola stock

The corporation also noted that the 2020 guidance would be impacted by restaurant closures and sport events cancellations. Coca-Cola sells many of its beverages in dining establishments and during games.

“[S]ince our last guidance update, local market policies and initiatives to reduce the transmission of COVID-19 have significantly increased. These initiatives include the direction to refrain from dining at restaurants,” said Coca-Cola.

However, Quincey noted that Coke’s workers are “doing a great job at adapting” to the changes brought on by COVID-19.

Coca-Cola dividend consistent for investors

The company’s dividend may be small at 3.5%, but it’s very consistent. The dividend has risen for an astonishing 57 straight years. For a value stock that proves that slow and steady investment pays off, investors should choose Coca-Cola.

4. ExxonMobil

In addition to Coca-Cola and Apple, ExxonMobil ( NYSE:XOM) is an established value stock for investors for many reasons. One reason investors can pick ExxonMobil to implement their value investing is its well-paying dividend.  ExxonMobil had $6.6 billion in free cash flow last year. The oil corporation paid $14.6 billion in dividends to investors in 2019.  Like many value stocks, ExxonMobil is an undervalued stock that has a high-yield dividend of $3.48 per share. That’s an impressive 9% dividend for investors.

ExxonMobil will survive oil crisis

ExxonMobil has been hit by two crises. The ups and downs of the stock market has affected the Dow Jones overall. However, oil companies have been rocked by the decline in oil prices. Saudi Arabia is overproducing oil to drive down prices and spite rival producer Russia.

As a result, the volatility of the stock market and oil prices have dropped to about $30 a barrel. ExxonMobil CEO Darren Woods announced that ExxonMobil will reduce capital expenditures to reserve its cash flow.

“Based on this unprecedented environment, we are evaluating all appropriate steps to significantly reduce capital and operating expenses in the near term. We will outline plans when they are finalized,” said Woods. This TradingSim chart shows ExxonMobil’s stock trajectory over the past few weeks.

ExxonMobil stock

Despite the reduction in spending, Woods said ExxonMobil will survive the current uncertainty in the oil industry. With refinery expansion around the world, ExxonMobil is poised to recover from this current setback.

“We are confident that we will manage through these challenging times by taking deliberate action to keep our people safe, our environment protected and our company strong,” said Woods.

ExxonMobil is a value stock before oil companies recover

ExxonMobil is a bargain value stock for investment. Investors could buy the stock while the oil industry is in turmoil. Then they could reap the benefits when the economy and oil industry recovers. Oil will likely bounce back above $30 a barrel if Saudi Arabia compromises with Russia and other oil-producing countries in OPEC ( Organization for Petroleum Exporting Countries) to reduce its oil output. If the economy recovers, the oil company will rebound and ExxonMobil will remain a value stock.

5. Johnson & Johnson

Just as ExxonMobil has been an established stock for almost a century, Johnson & Johnson (NYSE:JNJ) is another value stock with longevity. The multinational corporation has been around for a century and has been a reliable stock for value investors. The company’s stock pays a healthy 2.6% dividend and increases every year.  The corporation has survived a scandal about asbestos in their talcum powder to remain a value stock. For investors that want a safe value stock, Johnson & Johnson is a safe pick-especially in the wake of the coronavirus outbreak.

Johnson & Johnson stock rises on coronavirus vaccine hopes

The world’s biggest healthcare product producer is racing to create a vaccine for COVID-19. The company has signed a $1 billion deal with the U.S. government to create 1 billion doses of a possible vaccine for the respiratory disease. Johnson & Johnson CEO Alex Gorsky expressed optimism that the company can create an effective vaccine to slow the disease.

“We have very good early indicators that not only can we depend on this to be a safe vaccine base but also one that will ultimately be effective based on all the early testing and modeling we’ve been doing. This is a bit of a moonshot for J&J going forward, but it’s one we feel is very, very important for use to be doing at this period in time,” said Gorsky.

Johnson & Johnson stock the week of March 19

Johnson & Johnson said in a statement that it “is committed to bringing an affordable vaccine to the public on a not-for-profit basis for emergency pandemic use.”

The hope of a vaccine has raised investors’ confidence in the stock. Johnson & Johnson stock has jumped 8% as a result of the news. Johnson & Johnson’s stock shows that an established company can weather any storm and persevere. By providing medical devices and other badly needed products during this health crisis, Johnson & Johnson has proven to be a value stock that will withstand Wall Street volatility.

6. JP Morgan Chase

Just as Johnson & Johnson is a health product institution, JP Morgan Chase (NYSE:JPM) is a banking institution that has a value stock. Chase’s P/E ratio is 8.68, making it an undervalued stock that’s perfect for value investing. Chase had a positive earnings report in Q4 2019 with profits of $8.52 billion. CEO Jamie Dimon said in a statement that the company can withstand Wall Street’s ups and downs.

“While we face a continued high level of complex geopolitical issues, global growth stabilized, albeit at a lower level, and resolution of some trade issues helped support client and market activity towards the end of the year,” said Dimon. This TradingSim chart shows the volatility of Chase stock during the week of March 19.

 

Chase Stock the week of March 19

Chase stock has also been helped by the Federal Reserve injecting $1 billion into banks  as part of the Fed trying to revive the economy. With that security, Chase can loan more to customers. Customers themselves will need to take out loans more than ever with the struggling economy. Before the coronavirus crisis, Chase was opening more branches and investing more in banking apps.  Now the bank can be an option for consumers during this time of economic uncertainty. Chase is a top value stock for investors looking for a solid bank stock to add to their portfolios.

 

7. Walmart

While many banks have value stocks, the nation’s biggest retailer also has a reliable value stock. Walmart(NYSE:WMT) has succeeded by selling many essential products and become a value stock because of its strength during the COVID-19 crisis. The nation’s largest big-box store was a top stock to financial experts like Jefferies analyst Christopher Mandeville. Even before the coronavirus pandemic, Mandeville praised Walmart for its financial strength.

“WMT[Walmart] exhibited just how well the company is leveraging its physical scale/digital presence and financial stamina to push the boundaries of retail, using innovative tech and learnings from abroad. With clear momentum in grocery and a sustainable productivity loop in place, WMT[Walmart] now pivots to better general merchandise, one item alongside enhanced fulfillment practices that is critical to long-term e-com success,” said Mandeville.

Walmart thrives during COVID-19 outbreak

After the COVID-19 outbreak,Walmart has become an essential resource by staying open during the pandemic.

Walmart CEO Doug McMillon noted that the corporation has seen e-commerce sales grow by 35% over the last few months.

“We continue to see good traffic in our stores. We’re growing market share in key food and consumables categories, especially with its online grocery delivery service. including fresh,” said McMillon.

Goldman Sachs analyst Kate McShane noted that Walmart will help customers by keeping stores open and by delivering groceries as well.

Walmart stock

“In the short term, we expect demand to remain robust, even if panicked buying subsides, given the companies’ mix of essential/grocery. Further, these stores will likely remain open (versus over half of retail in the U.S. that is currently closed), even in states that have “shelter in place” rules,” said McShane.

Walmart dividend makes stock attractive to investors

Like many value stocks, Walmart has a well-paying dividend for investors. Walmart’s payout to investors tops 2% and has steadily increased for an impressive 47 years. Walmart’s consistent dividend payouts make the retailer’s stock a stable value stock for investors.

8. AT&T

AT&T(NYSE:T) is another top pick for value investors. The telecommunications company has been a great value stock. The corporation is a “dividend aristocrat” that consistently raises dividend for investors every year. The current yearly payout to investors is a hefty 6.5%.

AT&T also will keep many of its stores open during the coronavirus pandemic.  The corporation said that it’s critical for customers to stay connected during the quarantine orders nationwide.

AT&T stock the week of March 19

“Connectivity is always essential to our customers — doctors and nurses, first responders, governments, banks, grocery stores, pharmacies, and others delivering vital services.”It’s even more critical during a public health crisis that’s challenging everyone. In fact, as a critical infrastructure provider, AT&T views it as our civic duty to step up and keep our customers and communities connected,” said AT&T.

5G technology and streaming could help AT&T stock

The lastest Wi-fi technology could also help boost AT&T stock. 5G technology will soon come to many phone customers that subscribe to T-Mobile ( which is owned by AT&T) could benefit from having 5G devices. With faster streaming on devices, AT&T could have a lock on the 5G market once the technology takes off.

In addition to 5G technology, AT&T stock could rise once it enters the streaming wars. The corporation plans to launch HBO Max, which will fan favorites like Friends and The Boondocks.  When the service debuts in May, HBO Max could help AT&T stock grow if gains a lot of viewers. AT&T stock could rise after launching the streaming service. AT&T stock could be ideal for value investors looking for a long-established stock pick.

9. Disney

Just at AT&T is evolving to meet new communications needs, Disney is adapting to new forms of entertainment. The entertainment conglomerate has been struggling during the COVID-19 crisis because of the closure of its theme parks. However, Disney+has been a bright spot for the corporation. The streaming service has attracted 28.6 million subscribers since its launch in November. The international expansion of Disney+ in Europe should help the corporation’s earnings in the long run. Minal Modha, consumer research lead at Ampere Analysis, noted that Disney has to appeal to kids that love Frozen 2  and adults who want to binge watch Star Wars: The Mandalorian. 

“It will now be key for Disney to ensure it retains these customers with a mix of new Disney Plus originals and new release movie titles,” Modha said in a statement. “Furthermore, while there is still room for growth among both the two core demographic groups, it will be imperative for Disney Plus in the longer term to broaden out its content offering to appeal to a wider audience.”

Hulu, another Disney-owned streaming service, is also an area of growth for the company with 30 million subscribers. Even though many sports events are canceled, ESPN+ still has 6 million subscribers. With many people being quarantined, Disney’s popular movies can enjoy a greater audience and possibly increase its stock price.

Disney dividend is no Mickey Mouse amount

Disney can be a daily stock pick for investors because of its ability to withstand the current Wall Street volatility. The corporation’s dividend payout is consistent for investors. Because Disney’s net income grew to $10 billion in 2019, its dividend payout to investors is 1.8%. While that figure is smaller than other companies’ yields, it’s still a steady increase year after year. Disney stock is a top stock pick for value investing.

10. Weight Watchers

Another value stock may be the least likely. Weight Watchers(NYSE:WW) isn’t just for your fluffy Aunt Margaret anymore. The company has grown from a weight-loss company predominately for women to a wellness company for all genders. Since Oprah purchased 5 million shares of Weight Watchers, the company has added 6 million more subscribers. “The Oprah effect” of her magic touch helping businesses has helped Weight Watchers.

Weight Watchers has also evolved because of its new marketing campaigns to reach more male customers. DJ Khaled has become a spokesperson and another one- big male superstar, that is- is aligning with the brand. The Rock joined Oprah on her Weight Watchers tour to promote the rebranding of the corporation. The revamp to focus more on holistic health instead of weight loss appears to have worked. Chief Financial Officer Nick Hotchkin, said that tour helped drive Weight Watchers awareness up with potential customers. The success also drove the corporation’s earnings up to $29 million in its last earnings report.

“We believe this high visibility has had a halo effect well beyond those who are in the audience.In addition, the tour helped reinforce our brand transformation, showing how WW is your partner in both weight loss and wellness. Member recruitment so far in 2020 has been well above the prior year, as expected, and is reflected in revenue and earnings growth guidance for full year 2020,” said Hotchkin.

 

Weight Watchers may benefit after quarantine

With many people cooped up inside and stress eating during the quarantine, Weight Watchers could benefit after the nationwide quarantine ends.  When the COVID-19 crisis passes, people will be eager to be more active and become healthier. Morgan Stanley analyst  Lauren Cassel says that Weight Watchers could add more subscribers after the end of the nationwide quarantine.

“Once the ‘cocoon’ phase ends and shelter in place measures are raised, we[Morgan Stanley] see WW as a potential beneficiary of changes in consumer behavior. We anticipate a heightened focus on health, wellness, and weight loss after weeks of gym closures, stress eating, and limited physical activity.”

In addition, Cassel said that “the extent to which existing subscribers are currently showing greater interest and spending more time engaging with the app during the cocoon phase could lead to better retention curves for these subscribers over the medium term, which we incorporate into our $47 Bull case valuation. Bottom line, we think WW’s value proposition is actually stronger post-COVID-19 than it was before,” Cassel said.

“WW’s value proposition is actually stronger post virus than it was before”, said Cassel.

Weight Watchers stock the week of March 19

The wellness company has had its stock rise 17% last week while the S&P only gained 11%. Weight Watchers can be an affordable option for investors who want to cash in on wellness. 

Weight Watchers stock is a bargain for investors

The wellness company is undervalued and is selling for only 8 times its earnings. The stock will likely continue to rebound and be a great pick for value investing.  Unlike other value stocks, Weight Watchers stock doesn’t pay a dividend. However, Weight Watchers stock is a value stock that investors can choose if they want a stock that is capitalizing on the wellness trend.

Value stocks are safe stocks in volatile stock market

Value investing may seem boring, but can pay off in the long run. In this time of economic instability, value investing can be a great way for investors to build a slow and steady growth in their portfolios.  Growth stocks may get more attention, but value stocks can stand the test of time.  For investors taking a long-term view and that can exercise patience, value stocks are a safer option.

 

Diversification is key in value investing

Even though many value stocks are in similar established fields, there is still room for diversification. Value investing can consist of investing in life insurance stocks, bank stocks, and even tobacco stocks. Altria (NYSE:MO) is a long-established stock that offers a strong dividend. By diversifying a value stock portfolio, investors can get bigger returns in their investments.  If the bank industry is struggling, diversification in another field can help create a healthier portfolio.

Conduct research before investing in value stocks

Research is important to find the best stock for investors. By using TradingSim’s analysis and trading simulations, investors can find the best value stocks for them.  Investors can take advice from Warren Buffett, but ultimately have to decide for themselves what value stocks are best for them. With TradingSim’s charts and guidance, value investing can be rewarding- and maybe even profitable. 

 

The post 10 of the Best Value Stocks to Invest in Now appeared first on – Tradingsim.



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I Put Together A New Swing Set

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After peak news flow over the weekend, along with the state of Louisiana shutting down, I decided to take the day off and build a swing set for my two little girls. This was my first build of any sort of playground set and I was a little terrified going into the project. I heard horror stories of grown men putting together these contraptions, and promised myself I would always pay labor for that task.

Being that we are in unprecedented times, with the state shutting down and the government mandate to shut down my small businesses, I said, “What the hell, I’m going to build a swing set as if was a giant outdoor puzzle and take my precious time with it.”

And, that’s exactly what I did. I took my 4×4 Ford to Academy, put the swing-set box in my truck like superman, and drove back to my residence before the whole state shut down.

Upon arriving, my girls were excited. I one-armed the swing set box (I’m 6’4 225lbs) out of my truck and threw it in the garage. Then, I opened the box and realized what a grave mistake I just made. This was worse than a 10,000 piece puzzle. I remained calm.

Long story short, this was just the therapy I needed to get away from the news flow. I sashayed in and out my backyard to office, taking my time with each wood board while buying every dip in $AAPL.

The news flow was too negative. I was damn near attacked on Twitter for even the thought of buying shares in $AAPL. This gave me big confidence in the trade, so much confidence that I went back outside and built my girl’s playground like I was Bob fucking Vila.

Here are some pictures from the project. Don’t believe the hype, with time and a clear head, these things can be a lot of fun to put together with your family. Just as investing can be.

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The swingset is complete and so is my new swing long in $AAPL.

The end result to my day: PRICELESS. Go build something.



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