DKosig As of December 31st, 2023, the S&P 500 was forecasting a return of 1.34%/year over the next ten years, with no adjustment for inflation. As of the close on May 10th, 2024, that figure was 0.32%/year. Why so glum? US entities are overinvested in stocks and private equity. Since 1945, the fraction of total…
Richard Drury Shares of F&G Annuities & Life (NYSE:FG) have been a tremendous performer over the past year, rising over 140% as higher rates and strong investment returns have buoyed its financial performance. On Wednesday, the company reported solid quarterly results, and we have seen modest profit taking in response, given its large run. I…
wellesenterprises Thesis In my previous article about Nvidia Corporation (NASDAQ:NVDA), I rated the stock as a buy, explaining that the potential downside was very low. Therefore, this was a perfect opportunity to enter and wait for the company to surprise in their Q4 2024 earnings. Needless to say, the company indeed surprised us, and the…
Jonathan Kitchen Introduction For about a year now I’ve been trading 3X-leveraged UPRO with tail-risk hedges using XSP options. That combination offers unique advantages which will be explained here. Let’s be clear about the “tail risk” concept. The goal is to constrain worst-case losses, or to state a more statistical objective, constrain 98%-confidence losses. Tail-risk…
ijeab The momentum factor is on track to end April as it began: the strongest year-to-date performer among US equity factors, based on a set of ETFs through Friday’s close (Apr. 26). In line with the broad market, iShares MSCI USA Momentum Factor ETF (MTUM) has taken a hit in recent weeks after touching a…
hapabapa/iStock Editorial via Getty Images iShares S&P Mid-Cap 400 Growth ETF (NYSEARCA:IJK) was launched by BlackRock, Inc. on July 24, 2000 and is managed by BlackRock Fund Advisors. Since its inception, it has accumulated around $9.3 billion, and that places it near the top among similar options out there. That’s not the only thing that…
Tippapatt Introduction & Investment Thesis Doximity (NYSE:DOCS) is a cloud platform for US medical professionals that has severely underperformed the S&P 500 and Nasdaq 100 YTD. I initiated a “hold” rating on the stock on January 16, and it predicated on my belief that the company was seeing its revenue growth slow, despite displaying financial…
ClaudioVentrella/iStock via Getty Images VanEck Pharmaceutical ETF (NASDAQ:PPH) is a popular way for investors to own some of the leading pharmaceutical companies and get diversification and liquidity at the same time. This ETF has about $488 million in assets, and it has an expense ratio of 0.36%. There are a number of positives I see…
J Studios Introduction I have often found that high-quality stocks, despite appearing expensive relative to peers of lower quality, nevertheless keep outperforming by a significant margin. In this context, while evaluating a gold miner, high quality can relate to many different aspects. For example, the asset itself could be superior, because of its overall size,…
da-kuk Welcome to another installment of our BDC Market Weekly Review, where we discuss market activity in the Business Development Company (“BDC”) sector from both the bottom-up – highlighting individual news and events – as well as the top-down – providing an overview of the broader market. We also try to add some historical context…
Spencer Platt Thesis In my previous article covering Bank of America Corporation (NYSE:BAC), I rated the stock as a buy after assigning a fair price target of $39.41 and a future price of $67.80. At that time, the stock was trading at $33.40 and now, when writing this article, the stock price has climbed to…
Gary Yeowell Texas Capital Bancshares (NASDAQ:TCBI) has just released its Q1 2024 results and the market first reacted positively (+3.50% in pre-market): GAAP EPS of $0.46 misses by $0.12. Revenue of $256.33M (-6.0% Y/Y) beats by $3.25M. The net interest margin has returned to growth and management is confident of a price-per-share recovery. In fact,…
Klaus Vedfelt Amid all-time highs for gold and sticky inflation, we turn our eye to the concerning fiscal outlook for 2025. Investors should be prepared. They say that no one rings the bell at market tops and bottoms, but some important bells are ringing. Most importantly, gold prices are hitting all-time highs despite outflows from…
time99lek As a leading insurance broker with a proven track record of astute capital allocation and consistent growth through various insurance pricing cycles, we think Brown & Brown (NYSE:BRO) presents a compelling long-term investment opportunity. The company’s focus on the middle-market, unique decentralized operating model, and highly effective inorganic growth strategy position it well to…
filo Article Purpose Historical results are among the first things many investors consider when analyzing ETFs. Except for contrarians, investors search for funds with solid one-year, three-year, and five-year returns, as this is evidence the strategy can work, notwithstanding macroeconomic changes or changes in the portfolio’s composition. But you might be wondering how well this…
John Sommer Last summer, I wrote a cautious article on the Invesco Senior Loan ETF (NYSEARCA:BKLN), warning that rising leveraged loan defaults could pose a headwind to the BKLN ETF. However, since my article, the BKLN ETF has actually returned a handsome 9% total return (Figure 1). Figure 1 – BKLN has returned 9% since…
David Tran Introduction There aren’t many financial stocks that readers bring up as often as BlackRock (NYSE:BLK), the financial giant that has become one of the titans of the modern financial world. It’s no surprise that readers keep bringing up this stock: It is the biggest ETF provider in the world, even beating Vanguard. While…
georgeclerk/E+ via Getty Images End of January this year, I published an article on Tesla, Inc. (NASDAQ:TSLA) outlining a rather bearish case, where it boiled down to just too rich valuations for the situation in the underlying fundamentals. Already back then, the Q4, 2023 results indicated several signs of a more challenging road ahead with…
PhotoTalk Thesis In my original coverage of Marathon Petroleum (NYSE:MPC), I highlighted the company’s diverse revenue streams, strong cash balances, and undervaluation given the sum of its individual parts. Following my original buy recommendation, the company is up over 100%. Now, after more than doubling in share price, the obvious reaction is to wonder if…
RichVintage/E+ via Getty Images It finally looks like the AI boom in investor buying of semiconductor equities is ready to roll over into a stretch of selling. Why? Sure, valuations and pricing have been reaching for ever higher extremes since last summer. My bearish view is an unexpected rise in inflation and interest rates into…
Aerial view of production and engineering facility of automotive company Magna Powertrain Photofex/iStock Editorial via Getty Images In our last coverage of Magna International (NYSE:MGA), (TSX:MG:CA) we had a bullish outlook. That outlook was tempered by the risks facing the company and we suggested that the best way to play this was via defensive covered…
zhengzaishuru Article Thesis Canadian Natural Resources (NYSE:CNQ) is a leading Canadian oil sands company that has an excellent track record and strong management. Thanks to superior cash generation, Canadian Natural Resources has recently achieved its net debt target, which will allow the company to return even more cash to its owners. While the share price…
honglouwawa This S&P 500 annual return table shows the annual returns for the benchmark for various periods going back to 1/1/2000. From 1/1/2000 through 3/31/2024, the annual return for the S&P 500 is just 7.40%, the only return that looks reasonable the last 23 years. Looking at the S&P 500 annual return data by decade:…
Quardia/iStock via Getty Images Investment Thesis Defiance Quantum ETF (NYSEARCA:QTUM) is a buy due to its equally weighted approach and focus on holdings in the high-potential field of quantum computing. This approach has resulted in the fund’s favorable valuation while also achieving returns roughly on par with larger tech and innovation ETFs. While a lesser…
Editor’s note: Seeking Alpha is proud to welcome Bullish Insights as a new contributor. It’s easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » Khanchit Khirisutchalual Investment Thesis In today’s dynamic market landscape,…
Sundry Photography/iStock Editorial via Getty Images Investment Thesis Union Pacific Corporation (NYSE:UNP) is rated as a buy as operations improve. We believe the new management will continue implementing significant improvements that will enable UNP to unlock superior shareholder returns. Previous management delivered a poor multi-year operational performance and at its current valuation, UNP is a…
3D_generator CION Investment (NYSE:CION) performed exceptionally in 2023 given its 32% total return compared to S&P 500 return of 24%. However, 2024 could be a challenging year for the business development company because its net investment income is likely to drop year over year. Moreover, the significant amount of debt maturities in 2024 and 2025…
wolv Investment Thesis The whole Canadian O&G sector is valued on the cheap side, with the highest quality companies offering double-digit returns. Gas prices (NG1:COM) are bouncing from inflation-adjusted multidecade lows, with future prices pointing to AECO C$3.5 compared with current C$1.6, caused by rising demand for gas due to improved LNG export capacity from…
bgsmith My dear long-term readers certainly remember that I pay special attention to multi-factor equity exchange-traded funds. Today, I would like to assess yet another such vehicle, the Global X Adaptive U.S. Factor ETF (NYSEARCA:AUSF). I initiate coverage with a Hold rating, as I am frankly unimpressed by its total returns. I believe its inability…
malerapaso We previously covered Realty Income (NYSE:O) in November 2023, discussing why it remained a Buy, with the SRC deal projected to be AFFO accretive without having to rely on expensive debt financing as the management continued to deliver competent growth during an uncertain macroeconomic outlook. We believed that the pessimism embedded in the stock…
Maks_Lab February’s PMI surveys showed manufacturing business conditions improving for the first time in 18 months. The upturn provides a welcome indication that the goods-producing sector may be pulling out of the malaise it has been embroiled in after the post-COVID-19 reopening caused global demand to shift from goods to services. The upturn does, however,…
Tippapatt Investment Summary My recommendation for ContextLogic Inc. (NASDAQ:WISH) is a buy rating. I believe this is a very attractive investment situation that does not appear often. WISH is going to sell all its operating assets and liabilities to Qoo10, and post-sale, WISH will become a holding company with $173 million in cash and $2.7…
Editor’s note: Seeking Alpha is proud to welcome Stock Research Platform as a new contributor. It’s easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » JJFarquitectos Unilever plc (NYSE:UL) is a British-Dutch multinational…
Bloomberg/Bloomberg via Getty Images Yum China Holdings, Inc. (NYSE:YUMC) is one of the leading Chinese restaurant chains. The company was spun off from Yum! Brands, Inc. (YUM) in 2016. Since the spin off, Yum China hasn’t done as well as some would have expected. While it is higher than its debut price, it is still…
Bloomberg/Bloomberg via Getty Images Introduction I am knee-deep into industrial stocks, as more than 50% of my dividend growth portfolio consists of stocks from that sector. While more than half of this exposure consists of anti-cyclical defense contractor exposure, I own two cyclical machinery giants: Deere & Company (DE) and Caterpillar (CAT). I often make…
urbazon The S&P 500 and Magnificent 7 stocks are expensive and at their all-time highs. We believe inflation will remain stubbornly persistent and not return to a 2% inflation rate this year, resulting in both stocks and bonds losing their appeal due to their duration and interest rate risk. Consequently, we are reallocating from the…
ADragan/iStock via Getty Images Introduction It’s time to talk about a company I have never discussed before. That company is the T. Rowe Price Group (NASDAQ:TROW), one of the world’s largest asset managers and a company whose stock price has lost roughly half of its value from its prior peak, as we’ll discuss in the…
Manuel Augusto Moreno/Moment via Getty Images China is finally giving up on China. Last week, Bloomberg reported that the country’s investors purchased US and Japanese funds, among other geographically focused ETFs, at the expense of Chinese funds. It has the feeling of near-capitulation following a more than 60% drawdown in the iShares China Large-Cap ETF…
HUNG CHIN LIU/iStock via Getty Images Thesis In this article, I will evaluate ASML Holding N.V. (NASDAQ:ASML) to ascertain its estimated fair price and gauge its investment potential. Upon employing two models, I have determined that the stock offers an upside ranging from 13.4% to 29.6%, with potential annual returns spanning from 16.8% to 21.5%….
Kena Betancur Introduction Last year, I started covering Abbott Laboratories (NYSE:ABT), a company I should have started covering many, many years ago. However, better late than never, I initiated bullish coverage on March 20 with the title “Abbott Laboratories: A Dividend King At A Discount.” Since then, shares are up 18%, including its dividend. The…
Justin Sullivan Popular denim maker, Levi Strauss (NYSE:LEVI), reported its Q4 results on Thursday. Despite notable developments such as the announcement of a new global productivity initiative, as well as the official start of Michelle Gass’ tenure as CEO, markets appeared to shrug off LEVI’s report. Shares ended the week largely flat, following swings between…
jetcityimage Well recognized for its charming mascot, Flo, Progressive Corporation (NYSE:PGR) is one of the largest insurance companies in the world by market cap, sitting narrowly under $100 billion as I write this. Curiously, the stock is at its all-time high, with a P/E like a tech company. While many other companies’ shares slumped in…
Andrii Dodonov By Peter Hayes and Sean Carney Our 2024 Outlook For Municipal Bonds BlackRock’s municipal (muni) bond experts share their market outlook and the actions you can take to raise your portfolio’s potential in 2024. 2023 – One Month Does Not A Year Make After initial optimism at the start of 2023 spurred strong…
Slaven Vlasic Tesla, Inc. (NASDAQ:TSLA) investors head into one of its most important earnings conferences post-market on January 24, given the recent underperformance of TSLA. I upgraded TSLA stock in late October, following the weakness leading into Tesla’s third quarter earnings release. The upgrade was timely, as TSLA bottomed out in early November 2023, staging…
SBWorldphotography/iStock via Getty Images The more dovish narrative that has overtaken the markets since December, resulting in the S&P 500 sitting close to a fresh all-time high, means excessive value exposure might hurt returns in 2024. Obviously, this is not an opportune moment for investment vehicles like the Invesco S&P SmallCap 600 Pure Value ETF…
peshkov Welcome back to the third edition of Bank Buzz, where we cover the community bank sector, with a specific focus on mutual conversions, our favorite niche within a niche. Historically, investments in banks trading below tangible book value with overcapitalized balance sheets, solid asset quality, and shareholder-friendly management teams have generated attractive returns. In…
Mario Tama Overview MO stands for “Must Own”: a popular comment here. This is for good reason, too! With a dividend yield of 9.4% and 54 years of consecutive dividend raises, it’s no wonder MO is a popular choice amongst dividend investors. I recently wrote an article on Philip Morris (PM) where a lot of…
Trevor Williams/DigitalVision via Getty Images The Williams Companies (WMB) is an American, Oklahoma based energy company. The company, with a market cap of more than $40 billion, has major natural gas processing and transportation assets. As we’ll see throughout this article, the company’s impressive assets will enable the company to continue driving additional shareholder returns….
Mr_Twister/iStock via Getty Images In the spring of 2022, I believed it was time to snap a position in the case of Snap-on Incorporated (NYSE:SNA). Shares were trading rather stagnant at the time, while the company has seen continued growth, reducing expectations along the way, all while the state of the balance sheet has improved…
asikkk/iStock via Getty Images Thesis SFL Corp (NYSE:SFL) is a diversified shipping company that owns 73 vessels that serve various industries. From cargo containers, to cars, and deep-water drilling, SFL does it all. With a backbone structured around long-term contracts, SFL has been able to pay a dividend for nearly 20 years. That is all…