eyesfoto/E+ via Getty Images Intro We wrote about Cabot Corporation (NYSE:CBT) in January of this year when we upgraded our rating in the stock to a ‘Buy’ when shares were trading at approximately $74 a share. Since our upgrade, shares have returned approximately 38%, an excellent return over the past four months. Therefore, after divulging…
RobsonPL/iStock Editorial via Getty Images Finding investments with solid growth and strong cash is hard. While some companies in sectors such as tobacco and the utility industry have stable revenues, finding corporations that can offer investors consistent capital gains and impressive dividends is hard. One sector that has offered investors very strong returns and solid…
Nenad Stojnev /E+ via Getty Images Investment Thesis M/I Homes (MHO) is a cheaply valued company with a solid financial foundation and a proven track record of growth. Its customer-centric business offers sustainable housing that is growing in demand. Therefore, it is an excellent candidate to buy and hold for the long term. The House…
3alexd Summary Following my coverage of SAP (NYSE:SAP) in January 2024, for which I recommended a buy rating as I believed the SAP business model was really attractive and defensive and that it would continue to see growth momentum in the cloud, this post is to provide an update on my thoughts on the business…
rzelich Public Storage (NYSE:PSA) rode the wave of soaring demand for self-storage units for decades, but with a huge increase in construction of new storage facilities using “free” money supplied by the Federal Reserve, there is now over-capacity in the industry. With interest rates expected to stay much higher for longer, this REIT faces a…
JHVEPhoto Investment Thesis IBM (NYSE:IBM) is set to announce their earnings report for the first quarter of this year, on Wednesday, April 24th, next week, after market hours. Big Blue reported a strong full-year FY23 earnings report in the previous quarter, which showed a re-acceleration in their core business segments, Software and Consulting aided by…
gyro/iStock via Getty Images By Alex Cousley, Makiko Hakozaki Japan has had two big moments in the last month, with the Nikkei 225 equity index breaking above the highs set in 1989, and the Bank of Japan (BoJ) raising interest rates for the first time in 17 years. We think that the Japanese economy is…
Richard Drury Inflation Remains High, but Is Improving in More Economies Historical analysis does not guarantee future results. OECD: Organisation for Economic Co-operation and Development Major economies’ core inflation based on local Consumer Price Index As of March 27, 2024 (Source: Haver Analytics, OECD and AllianceBernstein (AB)) Inflation, one of many inputs to multi-asset decision-making,…
Shana Novak/DigitalVision via Getty Images Summary This post is to provide an update on my thoughts on Urban Outfitters’ (NASDAQ:URBN) business and stock. I give a buy rating to URBN, as 70% of the business continues to show very strong fundamental performance. Both the Free People and Anthropologie brands grew in the range of low…
The Good Brigade Overview My recommendation for Constellation Brands (NYSE:STZ) is a buy rating, as I continue to expect strong performance in the foreseeable future. The strong demand momentum seems to have continued into 1Q25 (1CQ24), which sets FY25 (CY24) to a very strong start. While Beer’s segment gross margin seems poor on a headline…
Thomas Barwick Investment overview I give a buy rating for Zscaler (NASDAQ:ZS), as I think the business is going to see growth accelerate in the near term, sustaining growth above >30%. ZS has proven that its products are a better alternative to peers’ offerings as it continues to win market share. The additional growth drivers,…
Baloncici Summary Following my coverage of Tesco (OTCPK:TSCDY), for which I recommended a buy rating due to my expectation that TSCO will see its valuation multiples if its business performance continues to improve, this post is to provide an update on my thoughts on the business and stock. I reiterate my buy rating for TSCO…
Brandon Bell Valero Energy (NYSE:VLO) is a leading U.S. oil refining company. VLO’s shares have not just rallied but are nearly five and one-half times higher since the March 2020 low and were trading at a record high in early April 2024. Oil refining is a capital-intensive business, with profitability hinging on the price differential…
fcafotodigital In mid-December, CapitalSpectator.com mused: “Are Commodities A Compelling Contrarian Trade For 2024?” The answer so far this year continues to be “yes,” as a rally for prices of raw materials continues to bubble after a rough 2023 in this corner of global markets. Two weeks ago I noted that commodities had overtaken US stocks…
phive2015 Investors have been increasingly dipping their toes into the corporate bond market as demand for higher quality credit grows. Benjamin Chim, Vice President, Director and Lead of the High Yield Fixed Income team at TD Asset Management, looks at potential opportunities for investors. Transcript Greg Bonnell – Well, the US Federal Reserve is still…
Today, stablecoin issuer Tether announced a significant award of $100,000 to the BTCPay Server Foundation that underscores Tether’s strong backing for the Free and Open Source Software (FOSS) movement, emphasizing its commitment to advancing digital payment solutions, the company stated. JUST IN: Tether donates $100,000 to BTCPay Server so it can continue working on enabling anyone…
Smederevac A few months ago, I wrote an initiation article on the KraneShares China Internet & Covered Call Strategy ETF (NYSEARCA:KLIP). In my opinion, the limited upside/unlimited downside structure of the KLIP ETF was not appealing, despite the fund’s large headline distribution yields. With a few months gone by since my initiation article, I want…
Robert Way Back in May, I wrote that while PDD Holdings (NASDAQ:PDD) looked attractively valued, controversy surrounding the company kept me on the sidelines. More recently I lowered my rating to “Sell” in September given a lack of disclosure of where its growth was coming from, particularly with regards to Temu. With the U.S. government…
wildpixel Purpose I look at the high frequency weekly indicators because while they can be very noisy, they provide a good nowcast of the economy, and will telegraph the maintenance or change in the economy well before monthly or quarterly data is available. They are also an excellent way to “mark your beliefs to market.”…
BlackJack3D Overview I previously rated a hold rating for The Cooper Companies (NASDAQ:COO), as I thought the valuation was too high back then, in July 2023. I believe my call was right, as the stock saw a sharp reversion back to its historical trading multiple of 19-22x forward PE, which led to a sharp reversion…
JohnnyPowell Today, we are taking a look at GigaCloud Technology (NASDAQ:GCT). This stock is skyrocketing in the last few months, with investor optimism at all-time highs for this growth company. This is a stock we have looked at in the past, one that we noted had the potential to double in 2024. Well, we have…
Almost Green Studio Investment action I recommended a hold rating for Sealed Air Corp. (NYSE:SEE) when I wrote about it the last time, as I saw visible weakness in the business over the course of 2H23. Based on my current outlook and analysis of SEE, I recommend a hold rating. I still think the outlook…
arild lilleboe Several Factors Support XPRO’s Gains In my previous article on December 12, 2023, I discussed Expro Group Holdings N.V.’s (NYSE:XPRO) strategies. With significant global offshore FIDs in 2024 and 2025 and committed and sanctioned projects in the pipeline through 2030, the company’s end market continues to support a growth thesis. In particular, its…
ozgurdonmaz Intro & Thesis I initiated coverage of Apple Inc (NASDAQ:AAPL) stock in December 2021 and gave the stock a ‘Hold’ rating, indicating the brand’s strength but also a fairly generous valuation at the time. A few articles later, on April 10, 2023, I downgraded the AAPL stock to ‘Sell’. Since then, the stock’s total…
Smith Collection/Gado/Archive Photos via Getty Images Honda Motors (NYSE:HMC)(OTCPK:HNDAF) is a Japanese automotive player that we’ve covered in the past, focused on the entire industry’s favourable supply chain situation amid a weak yen environment, causing a real growth in unit margins thanks to substantial home grown production and parts sourcing and a very large USD…
dem10/E+ via Getty Images Denny’s Corporation (NASDAQ:DENN), the quick service diner-style restaurant, has seen a benefit from reduced food inflation, especially in egg and meat prices. It has also enjoyed menu pricing power and a stable consumer. Labor costs, however, continue to weigh. That said, Denny’s stock has really been stuck of late. Perhaps the…
Nikada/iStock Unreleased via Getty Images Introduction In 2024, Apple (NASDAQ:AAPL) lost its number one position as the world’s most valuable public company to Microsoft (MSFT). Apple has maintained its status as the world’s largest public company for an extended period, and my fundamental analysis indicates that this accolade is well-deserved. Reclaiming the top spot may…
gorodenkoff/iStock via Getty Images Stryker (NYSE:SYK) is a leading medical technology company with a diversified product portfolio. Target markets include orthopedics, spine, surgical instruments, neurotechnology, and medical and surgical equipment. Stryker has a strong position within robotics for orthopedic surgery and is also demonstrating solid growth across its other businesses. While the company’s valuation has…
Aksana Kavaleuskaya By James Knightley, Chief International Economist ISM services rebounds, but contradictions with official data continue The ISM services index has bounced back nicely in January with the headline index at 53.4 versus 50.5 in December. The consensus was 52.0 with anything above 50 equating to expansion and anything below 50 being a contraction….
Anton Petrus/Moment via Getty Images Betting on the demise of the long-running leadership of US shares over foreign markets has been a losing proposition for some time, and the early going in 2024 suggests the trend persists. It’s only February, and so the new year is still ripe with opportunity, risk, and surprise. But judging…
Andrii Dodonov CLOs rallied strongly in December, ending 2023 with a 10.54% return. The current backdrop suggests CLOs are well positioned to start 2024. The VanEck CLO ETF (CLOI) returned 2.06% in the fourth quarter, and 9.37% for the year, outperforming investment-grade bonds and AAA-rated CLOs, but underperforming the broad CLO market due to its…
Dragon Claws The leveraged loan ETF space is dominated by three funds: the Invesco Senior Loan ETF (BKLN) which has assets of ~$6.4 billion, the SPDR Blackstone Senior Loan ETF (SRLN) which has ~$5.2 billion in assets, and the First Trust Senior Loan Fund (FTSL) which as ~$2.2 billion in assets. The next three largest…
nycshooter After a rather turbulent start to 2024 in the case of Boeing (NYSE:BA), the company and stock are setting up for a difficult year. The current events might create a new distraction, but together with previous and other product quality issues and even deadly crashes, such events cannot be seen in isolation anymore. This…
michal-rojek/iStock via Getty Images Avadel Pharmaceuticals (NASDAQ:AVDL) received FDA approval for LUMRYZ in May 2023. Early data suggests the launch has gone well and, prior to this, the company, was loss-making, so as basically a one product company the launch is likely to drive the stock for better or worse. Launch Momentum Is Important A…
Dilok Klaisataporn In my article in late 2022, I suggested investors prefer Trinity Capital (NASDAQ:TRIN) over TriplePoint Venture Growth (NYSE:TPVG) for higher returns. TRIN’s 60% total return in 2023 vindicated my opinion. For 2024, I believe Trinity is well-positioned to offer healthy returns to shareholders. TRIN’s performance in 2024 is likely to be supported by…
ljubaphoto Intro We wrote about VOXX International Corporation (NASDAQ:VOXX) back in February of 2023 when we reiterated the point that the consumer electronics manufacturer needed to remain profitable to keep investors interested. VOXX had just reported in January’2023 $2.3 million of operating profit for the third quarter of fiscal 2023 (Ended November 2022) so we…
champc The BlackRock Energy and Resources Trust (NYSE:BGR) is a CEF which provides investors exposure to an energy sector buy-write strategy. Since its inception in December 2004, BGR has delivered a substantially lower total return than comparable passive ETFs while at the same time exhibiting roughly the same level of volatility. I believe this dynamic…
jetcityimage Investment Thesis Texas Roadhouse Inc (NASDAQ:TXRH) is well-positioned to continue delivering good growth in the coming year. The company’s revenue growth should benefit from healthy traffic growth driven by good traction towards the company’s value meal offering, and improving guest experience. Moreover, revenue growth should also see a good contribution from an acceleration of…
Monty Rakusen Thesis ESCO Technologies (NYSE:NYSE:ESE) presents an interesting investment opportunity, underpinned by strategic growth initiatives such as the acquisition of CMT Materials and a strong focus on expanding demand sectors like commercial aerospace and renewable energy. Despite facing challenges like margin pressures and market fluctuations, the company’s diversified portfolio, innovative approach, and solid order…
adventtr/iStock via Getty Images Purpose I look at the high frequency weekly indicators because while they can be very noisy, they provide a good nowcast of the economy, and will telegraph the maintenance or change in the economy well before monthly or quarterly data is available. They are also an excellent way to “mark your…
hanohiki/iStock Editorial via Getty Images Thesis Since my second article on Copa Holdings, S.A. (NYSE:CPA), the stock experienced a significant decline, which, as you may have observed, presented a substantial buying opportunity. Since that time, the stock has fully recovered, even yielding a 6.57% gain since my initial analysis. I found the reduction in stock…
narvikk While demand has been strong, even stronger supply has weighed on oil this year. MoneyTalk’s Greg Bonnell discusses whether that trend will continue with Andriy Yastreb, Vice President, Portfolio Research with TD Asset Management. Transcript Greg Bonnell: Oil prices have been volatile this year. It’s making it a bumpy ride for energy investors. So…
Lorraine Boogich/iStock via Getty Images Investment Thesis NextEra Energy (NYSE:NEE.PK)(NYSE:NEE.PK)(NEE.PR.R) is an attractive option having a good combination, especially with a balanced portfolio of conventional and renewable energy sources. As of 2023, the organization has shown impressive financial records with adjusted earnings increasing but a dip in net income. Its subsidiary, Florida Power & Light…
Wirestock/iStock via Getty Images Intro We wrote about Twin Disc, Incorporated (NASDAQ:TWIN) in May of 2023 after the company’s Q3 results where strong double-digit increases were reported in the quarter. Furthermore, the ability to generate free cash flow in that quarter was replicated in Q4 of fiscal 2023 and Q1 of fiscal 2024. Internally generated…
mouu007 The S&P 500/SPX (SP500) had another constructive week, successfully consolidating and cementing its place above the critical 4,500-4,600 support zone. A resilient economy continues pointing to a soft landing scenario. Moreover, the cooling inflationary atmosphere should enable the Fed to decrease interest rates soon, allowing for a more accessible monetary environment to stimulate economic…
skynesher Investment overview My recommendation for PowerSchool Holdings (NYSE:PWSC) is a buy rating with a price target of $32.45. I believe PWSC is able to continue its current growth momentum, supported by strong underlying demand, international expansion, and its product innovation related to AI. All of these should support low-teen top-line growth, in line with…
cemagraphics Introduction I’ve been following US non-lethal weapon maker Byrna Technologies (NASDAQ:BYRN) closely and I’ve written 4 articles about it on SA to date. The latest of them was in July when I said that the company had a strong balance sheet and that I expected net revenues to improve over the coming months due…
nycshooter/iStock via Getty Images Intro We wrote about Star Group, L.P. (NYSE:SGU) back in April of this year when we were encouraged by what we were seeing in the company’s technicals. A technical breakout was confirmed on the long-term chart and the generous dividend had grown for 10 years straight. While investors may bemoan the…
Thinkhubstudio Global manufacturing business conditions worsened for a fifteenth successive month in November, according to the latest JPMorgan Global Manufacturing Purchasing Managers’ Index™ (PMI™) compiled by S&P Global. The headline PMI – a composite index based on five survey variables – registered 49.3, up from 48.8 in October but remaining below the 50.0 no change…
hdagli/E+ via Getty Images Intro We wrote about Limoneira Company (NASDAQ:LMNR) back in late May of this year when we were optimistic that the company’s Q2 numbers could add to the stock’s momentum at the time. Shares had bounced off their December’2020 lows with aplomb and had gained approximately 30% in value over the following…