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Three retail heavyweights sit at very different points on the risk/reward map right now. Walmart (NYSE:WMT) at $109.47 looks fully valued, Costco (NASDAQ:COST) at $935.03 screens richly priced, and Home Depot (NYSE:HD) at $332.98 screens as the most attractive risk/reward.
University of Michigan consumer sentiment just printed 44.8, well inside recessionary territory, which frames every verdict below.
Walmart: Elite Execution, Uncomfortable Multiple
Walmart is down 1.35% year to date and 8.01% over the past month, lagging a broader market that has kept grinding higher. Q1 FY27 revenue rose 6.08% to $175.68 billion, adjusted EPS came in at $0.66, global ecommerce grew 26%, and advertising jumped 37%. CEO John Furner credited “better shopping experiences, a broader assortment, and faster delivery.”
The catch is valuation. WMT trades at roughly 39x trailing earnings with a 0.86% dividend yield. The Street sees upside to a $138.27 target, with 37 Buy, 5 Hold, and 1 Sell ratings, but insiders are net sellers and Q1 free cash flow turned negative at -$1.95 billion as capex climbed 34%. Treat targets as one data point among many.
At $109.47, Walmart’s setup argues for patience. Here is why. The flywheel of ads, marketplace, and membership is best-in-class, but paying 39x for a low-single-digit revenue grower leaves little margin for error. A retest of the $94.85 52-week low would open a cleaner entry. Watch capex intensity and marketplace margin conversion into next quarter.
Costco: Best-in-Class, Priced Like It
Costco is up 8.91% YTD and roughly flat over the past year. Q3 FY26 delivered $70.53 billion in revenue (up 11.58%), EPS of $4.93, reported comps of 9.8%, and a worldwide renewal rate of 89.7%. Digitally-enabled comps grew 21.5%.
Analysts carry a $1,076.91 consensus target with 22 Buy, 13 Hold, and 2 Sell ratings. The friction point is a P/E near 47x, which already prices in most of the operational excellence. Composite sentiment sits at a neutral 54.09, and insider activity skews to selling.
At $935.03, Costco’s risk/reward looks balanced at best. Here is why. Membership renewal, warehouse expansion toward 940 locations, and Kirkland pricing power remain unmatched, but forward returns compress when you pay this multiple for high-single-digit comps. A pullback closer to $850 would strengthen the case; today’s setup favors patience over accumulation.
Home Depot: Housing Pain Looks Priced In
Home Depot has been the laggard, down 1.83% YTD and 8.36% over the past year. Q4 FY25 adjusted EPS of $2.72 beat consensus by 7.94%, comparable sales edged up 0.4%, and average ticket rose 2.4%. FY25 revenue reached $164.68 billion, with over 1,250 SRS locations now integrated.
HD trades at roughly 23x earnings with a 2.76% dividend yield backed by the 156th consecutive quarterly payout. The consensus target sits at $370.34, implying roughly 12% upside, split 21 Buy and 15 Hold with zero Sell ratings. Insiders are net buyers, a rare positive signal across this group.
At $332.98, Home Depot screens as the most attractive of the three. Here is why. Consumer sentiment at 44.8, elevated mortgage rates, and weak big-ticket demand are already reflected in the compressed multiple and the $286.95 52-week low.
When housing turnover normalizes, the pro channel via SRS and GMS plus deferred remodel demand should drive operating leverage on a base that already grew FY25 sales 3.24%. The invalidation is a deeper housing recession that pushes FY26 EPS below the flat-to-4% guide. With insider buying, a growing dividend, and the cleanest valuation of the three, the reward-to-risk here looks the most attractive.
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]]>Warren Buffett prizes durable brands, high returns on capital, and rising dividends. Costco Wholesale (NASDAQ:COST), Fastenal (NASDAQ:FAST), and Visa (NYSE:V) all clear that bar, yet each trades on very different terms today. Here is how each stacks up on valuation, growth, and dividend quality right now.
Costco at $940.87: A Premium-Priced Compounder
Costco is the definition of a Buffett-style compounder, with a 89.7% worldwide renewal rate baked into Q3 FY2026 membership fees of $1.37 billion, up 10.7%. Comparable sales rose 9.8% and digital comps jumped 21.5%, and management is on track for roughly 940 warehouses by fiscal year end. The dividend has climbed from $1.02 in early 2024 to $1.47 today, with periodic specials layered on top.
The problem is price. Costco trades at 47 times trailing earnings and 41 times forward, with a 0.57% yield and a PEG of about 5. Shares are up 9.42% year to date but off 0.81% over the past year, roughly in line with the broader market. The $1,076.91 analyst target across 37 covering analysts implies mid-teens upside, but targets are guides, not guarantees.
At $940.87, Costco is a Hold. Own it if you already have a position, but wait for a broader pullback before adding exposure.
Fastenal at $45.49: A Great Business Priced for Perfection
Fastenal just delivered a clean beat, with Q2 revenue of $2.39 billion, up 14.74%, and EPS of $0.33. Contract customer daily sales grew 17.6%, now 75.8% of revenue, and June sales surged 20.5%. Returns are elite, with return on equity of 34.3% and a 1.97% dividend yield.
The bear case is the setup. Shares are up 14.6% year to date, well ahead of the S&P 500’s roughly high-single-digit gain, and trade at 39 times earnings. Gross margin compressed 75 basis points on customer mix and tariff pressure, and 2026 capex jumps to $310 million to $330 million from $230.6 million. The $47.84 analyst target across 17 analysts sits barely above the current quote, with 5 sell or strong sell ratings versus 5 buys.
At $45.49, Fastenal is a sell for new money. The analyst target sits barely above the current quote and the ratings distribution leans cautious. Wait and revisit closer to the low $40s.
Visa at $358.56: The Buffett Trifecta Still Works
Visa is the cleanest buy of the three. Q1 FY2026 net revenue rose 14.6% to $10.90 billion, payments volume grew 8% in constant dollars, and processed transactions hit 69.4 billion. Operating margin is 67.3% and return on equity is 60.4%. The quarterly payout was raised 13.6% to $0.67, now $2.68 annualized, alongside $21.1 billion left on the buyback authorization.
Valuation is reasonable for the quality on offer, at 31 times trailing and 24 times forward earnings. Shares are up just 2.66% year to date, lagging the S&P 500, which sets up a catch-up trade. The $401.47 analyst target across 40 analysts, with 37 rating it Buy or Strong Buy, implies roughly 12% upside before dividends. The interchange MDL litigation overhang is real, but reserves are already flowing through GAAP results.
At $358.56, Visa is a Buy. The combination of double-digit revenue growth, a growing dividend, aggressive buybacks, and a discounted forward multiple is the setup long-term compounders like Buffett tend to reward.
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- Costco (COST) achieved 11.58% revenue growth and 15.19% net income growth in Q3 FY2026, with membership fees rising 10.7% to $1.37B at 89.7% renewal rate.
- Costco's double-digit earnings growth, rising regular dividends, and special-dividend capacity make it ideal for retirement portfolios seeking growing income.
Costco (NASDAQ:COST) stock stands out as one of the strongest setups in the retirement investor’s playbook right now, and the case rests on three numbers that are hard to argue with. The membership economics are hardening, the balance sheet is getting stronger by the quarter, and the growth premium versus the obvious alternative keeps widening. This is a conviction position.
The Membership Machine Is Compounding Faster
Costco posted Q3 FY2026 revenue of $70.53 billion, up 11.58% year over year, with net income climbing 15.19% to $2.19 billion. Membership fees alone reached $1.37 billion, up 10.7%, with a worldwide renewal rate of 89.7% and 75.0% executive-tier penetration. That is annuity-like income growing at a double-digit clip, the kind of cash-flow profile retirement portfolios tend to prize behind an equity position.
Balance Sheet Built for Payouts
Cash and equivalents jumped to $18.95 billion, a 36.93% year-over-year gain, while shareholders’ equity expanded 23.54%. CFO Gary Millerchip signaled that a special dividend remains on the table, noting Costco continues to “generate excess cash beyond those priorities”. Costco has paid special dividends of $15 in 2023, $10 in 2020 and $7 in 2017. The regular quarterly dividend already stepped up to $1.47 in May 2026 from $1.30. Retirees get a growing base payout plus periodic lump-sum surprises.
The Head-to-Head With Walmart Is Not Close
Walmart (NASDAQ:WMT) is the natural comparable, and it loses on the metrics that matter for a compounder. Walmart’s quarterly revenue grew just 7.3% versus Costco’s 11.58%, and quarterly earnings growth was 19.4% against Costco’s 15.19% off a much larger base. Costco’s return on equity is 29.1% versus Walmart’s 24.1%.
Yes, Walmart yields 0.85% to Costco’s 0.57%, but Walmart trades at a forward P/E of 38x versus Costco’s 42x. That is a small premium for meaningfully faster growth and a membership annuity Walmart cannot replicate.
The One Risk, Dismissed
Consumer sentiment sits at 44.8, deep in pessimistic territory. Yet retail sales hit a high of $763.7 billion in May, a 90.9th percentile reading. Costco’s 89.7% renewal rate proves members do not cancel a $130 card when times get tight. They trade down into Kirkland, and Costco captures the wallet share anyway.
For retirement investors seeking a durable compounder with rising income and optional special-dividend upside, Costco around $938 screens as a durable compounder worth research.
The post Costco Is a No-Brainer Buy for Retirement Investors Right Now appeared first on 24/7 Wall St..
]]>Costco (NASDAQ:COST) has been one of the most crowded long trades in consumer retail for years. After a choppy first half of 2026, the question is whether the warehouse giant still has room to run.
My model says yes, but only modestly. Costco traded at $945.57 as of the last close, and the 24/7 Wall St. price target for Costco is $1,041.86, implying 10.18% upside over the next 12 months. The model’s rating is buy, and confidence is high at 90%.
| Metric | Value |
|---|---|
| Current Price | $945.57 |
| 24/7 Wall St. Price Target | $1,041.86 |
| Upside | 10.18% |
| Recommendation | BUY |
| Confidence Level | 90% |
What the Recent Price Action Is Telling Us
Costco is up 9.96% year to date but has cooled recently, falling 4.17% over the past month after touching a 52-week high of $1,096.50. The 52-week low sits at $841.69, so shares trade in the upper half of that range.
In fiscal Q3 2026, Costco delivered EPS of $4.93 on revenue of $70.53 billion, up 11.6% year over year, with comparable sales up 9.8%, digital comps up 21.5%, and membership fee income of $1.373 billion. The worldwide renewal rate held at 89.7%.
Why Bulls See a Breakout Ahead
The bull case rests on the flywheel. Membership fee income compounds above 10% annually, executive members represent 75% of net sales, and e-commerce traffic jumped 37% last quarter. Costco plans to end fiscal 2026 with roughly 940 warehouses, up from 914, and free cash flow reached $7.84 billion in fiscal 2025.
Consumer spending on food rose to $1,566.8 billion in May 2026 from $1,518.3 billion a year earlier, and Goldman Sachs calls out Costco as capturing outsized share through value offerings, operational leverage, and effective supplier negotiations. If digital growth holds above 20% and membership economics expand, our bull scenario pushes shares to $1,139.55, a 20.51% return.
What Could Go Wrong
Costco trades at a trailing P/E of 46x and forward P/E of 41x, an unforgiving multiple if growth decelerates. Management flags tariff exposure, FX headwinds, and rising healthcare and wage costs as active risks.
Recent insider activity leaned toward selling, and 30-day sentiment slipped 13.44 points. The recent PEG of 4.518 reflects heavy reinvestment in Kirkland innovation, international warehouses, and digital infrastructure. The bear scenario limits downside to $956.56, essentially flat.
How Costco Compares to Walmart and BJ’s Wholesale
Walmart (NYSE:WMT) trades at $114.95 against an implied P/E of 42x and forward EPS of $2.94, with 86% of analysts bullish and quarterly earnings growth of 19.4%. Walmart is cheaper on forward earnings than Costco but grows earnings roughly half as fast, supporting Costco’s premium.
BJ’s Wholesale Club (NYSE:BJ) is the closest pure-play comparison. BJ posted Q1 fiscal 2027 EPS of $1.10 on revenue of $5.66 billion with full-year adjusted EPS guidance of $4.40 to $4.60, digital comps up 28%, and a market cap of $11.88 billion. Membership fee growth of 9.9% trails Costco’s, and net income fell 4.7%. Against that field, our $1,041.86 target looks reasonable.
Costco Price Prediction 2026-2030
The 24/7 Wall St. price target of $1,041.86 and buy rating reflect durable membership economics, accelerating digital growth, and a resilient consumer backdrop. Valuation keeps me from pounding the table.
The setup improves if Costco pulls back toward the 200-day average near $956 or delivers another double-digit comp quarter. Risk rises if the multiple pushes above 50x on decelerating traffic. Confidence remains 90%, and the target still points higher.
Here is where our model projects Costco could trade, assuming steady mid-single-digit comp growth and consistent membership expansion.
| Year | 24/7 Wall St. Price Target |
|---|---|
| 2026 | $1,041.86 |
| 2027 | $1,117.75 |
| 2028 | $1,197.90 |
| 2029 | $1,270.11 |
| 2030 | $1,349.80 |
These projections assume Costco executes on warehouse expansion, membership growth, and Kirkland Signature innovation. Significant upside or downside could result from tariff policy shifts, consumer slowdown, or accelerating international rollout.
The post Price Prediction: Will Costco Hit a New-High This Year? appeared first on 24/7 Wall St..
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- Amplify CWP Enhanced Dividend Income ETF (DIVO) pairs blue-chip dividend growers with covered-call overlay to boost distributions.
- DIVO faces headwinds as 10-year Treasury yields near 4.62% squeeze valuations on dividend-heavy holdings.
- VIX near 17 limits call premiums that fund DIVO's enhanced monthly payout; readings below 15 starve the overlay.
Amplify CWP Enhanced Dividend Income ETF (NYSEARCA:DIVO) trades near $46, up 6.6% year to date and 15.4% over the past year. That trails the S&P 500’s 10.3% YTD gain, but total return is only part of the story here. DIVO pairs a concentrated sleeve of blue-chip dividend growers with a tactical covered-call overlay, and that combination is now navigating a rate backdrop that is squeezing dividend valuations while volatility drifts lower.
The lineup reads like a dividend hall of fame, anchored by Johnson & Johnson (NYSE:JNJ), Procter & Gamble (NYSE:PG), Coca-Cola (NYSE:KO), and other blue-chip dividend growers. J&J just extended its dividend streak to 64 consecutive years and P&G is now at 70. The portfolio quality is rock-solid. Two moving parts around it deserve attention.
The Macro Factor: Where the 10-Year Treasury Yield Settles
The 10-year Treasury yield is sitting at 4.62%, ranking in the 99.2 percentile of its 12-month range and just under the May peak of 4.67%. The Fed funds target has been parked at 3.75% for seven months. When risk-free yields sit this high, dividend-heavy portfolios face a valuation ceiling: investors demand more to hold equity risk over a T-bill paying nearly as much.
The pressure shows up in the holdings. P&G is up 3.4% YTD despite that 70-year record, Costco has fallen 6.2% over the past month, and Fastenal slipped 2.9% in the past week. What to watch: the 10-year yield on FRED (series DGS10) and the CME FedWatch tool ahead of the next FOMC meeting, checked weekly. A sustained retreat below the 12-month average of 4.3% would loosen the valuation vise on DIVO’s holdings; a break above 4.67% would tighten it further.
Vanguard’s 2026 outlook argues the Fed has limited scope to cut rates below our estimated neutral rate of 3.5%, meaning the easing tailwind income investors typically enjoy may not arrive. For readers wrestling with exactly this tension between Treasury yields and equity distributions (the same math dissected in The 4% Rule Is Broken), a stalled Fed reshapes the payout arithmetic.
The Fund-Specific Factor: VIX and Covered-Call Premium Income
DIVO’s edge over a plain dividend fund is the enhanced distribution financed by writing calls against individual holdings. That income lives and dies with implied volatility. The VIX is near 17, up from around 15 three sessions earlier but still below the 12-month average of 18. Lower VIX means thinner call premiums, which means the overlay generates less cash to top up DIVO’s monthly distribution.
The JNJ options chain shows the mechanism in action: the July 17 expiry alone carries 41,471 call contracts in open interest, with activity concentrated in the front month where CWP typically writes. When implied vol on names like J&J and P&G is compressed, those premiums shrink and so does the enhanced portion of the payout. What to watch: the CBOE VIX weekly, with alerts for sustained readings below 15 or above 20. The March 2026 spike to 31.05 is the recent template for a windfall premium environment; the December 2025 low of 13.47 shows what a lean one looks like.
What to Watch
Two signals matter most for DIVO over the next 12 months: a 10-year Treasury yield stuck above 4.5%, which caps upside on defensive names like KO and PG, and a VIX drifting below 15, which starves the covered-call sleeve of premium. A reversal on either front, yields easing toward 4% or the VIX steadying in the high teens, would restore both the valuation tailwind on the underlying holdings and the income power of the overlay.
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- iShares Core Dividend Growth ETF (DGRO) trades near $77, up 11% YTD with narrow dividend-growth mandate.
- DGRO's performance hinges critically on 10-year Treasury yields; current 4.62% rate creates headwinds for dividend stocks.
- December 2026 index rebalance could reshape DGRO's healthcare-versus-financials exposure, particularly if Johnson & Johnson's weighting increases.
The iShares Core Dividend Growth ETF (NYSEARCA:DGRO) trades near $77, up roughly 11% year to date year-to-date. The fund’s growth-focused screen has favored quality compounders, but investors chasing headline yield have found more juice in higher-yielding peers like SCHD.
DGRO’s mandate is narrow. It tracks the Morningstar US Dividend Growth Index, which requires at least five years of uninterrupted dividend growth, excludes the top 10% of yielders, and screens out any company with a payout ratio above 75%. That yield-trap filter is what separates DGRO from SCHD and explains why the fund tilts toward large-cap compounders across 399 positions, with financials, tech, healthcare, and staples doing most of the work.
The Macro Factor That Matters Most: The 10-Year Treasury Yield
The single biggest swing factor for DGRO over the next 12 months is the 10-year Treasury yield, which sits at 4.62%, just below its 12-month high of 4.67%. On a percentile basis, current yields rank in the 99th percentile of the past year. That is the definition of a headwind for dividend-growth equities.
Coca-Cola, a top-10 holding, yields roughly 2.5%. McDonald’s yields under 3%. Investors buying DGRO for income are collecting less than they would from a risk-free 10-year note, so the fund only makes sense if the dividends grow meaningfully. When Treasuries drift higher, the math gets worse, and MCD’s roughly 11% YTD decline is a live example.
Watch two things: the CME FedWatch tool for rate-cut probabilities, and each 10-year auction (results are on TreasuryDirect the same day). The Fed has held the funds rate at 3.75% for seven months. If the 10-year cracks below 4.25% on softer inflation data, expect DGRO’s staples and healthcare sleeves to catch a bid quickly. If it pushes through 4.75%, the opposite.
The Fund-Specific Signal: The December Rebalance
DGRO’s index rebalances semi-annually in June and December, and the mechanics are worth understanding. The April 30, 2026 holdings snapshot shows something telling: Johnson & Johnson does not appear in the top positions despite being a Dividend King with 64 consecutive years of hikes. Meanwhile, JNJ has quietly surged roughly 66% over the past year. If JNJ’s weighting is reset higher at the December reconstitution, that alone can shift the fund’s yield and growth profile.
The rebalance also polices the 75% payout-ratio cap. Any name whose payout ratio breaches the ceiling gets cut. Check iShares’ holdings page in mid-December: names dropped or added by more than 50 basis points are your signal for how DGRO’s factor exposure has shifted.
What to Watch
The single most important macro signal is the 10-year Treasury yield breaking meaningfully below 4.25% or above 4.75%. The single most important fund signal is the December 2026 index rebalance and whether JNJ’s weight is restored, since that one holding materially changes the healthcare-versus-financials balance of the portfolio for the next six months.
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- NEOS S&P 500 High Income ETF (SPYI) generates 12% annualized distribution by selling call options against S&P 500 holdings.
- SPYI's income engine faces headwinds as the VIX near 17 compresses call option premiums, forcing harder decisions on maintaining payouts.
- Costco, Johnson & Johnson, and Altria dividends provide a backstop, but falling volatility combined with 4.6% Treasury yields threatens SPYI's yield advantage.
The NEOS S&P 500 High Income ETF (NYSEARCA:SPYI) has quietly delivered a total return that undersells the story: SPYI is up 8% year to date and 19% over the past year, trailing the SPDR S&P 500 ETF Trust (NYSEARCA:SPY)’s 20% one-year gain by a narrower margin than most covered-call funds. Investors own SPYI for the roughly 12% annualized distribution, and with the fund’s net assets at $6.9 billion and a 0.68% expense ratio, the question over the next 12 months is whether the income engine can keep humming as volatility compresses.
How SPYI Actually Makes Its Money
SPYI holds S&P 500 constituents (large-cap defensives like Johnson & Johnson, Procter & Gamble, Coca-Cola, Altria, Costco, and Fastenal sit alongside every other name in the index) and sells SPX index call options against the portfolio to harvest premium. That premium, paid out as return-of-capital-style monthly distributions, is where the yield comes from. The underlying dividends help, but option income is the real fuel.
Right now that fuel is thinning. The VIX is sitting near 17, below the trailing 12-month average of about 18 and a long way from this spring’s peak near 31. Lower VIX means cheaper calls, which means less premium for SPYI to collect.
The Macro Factor: The VIX Regime and 10-Year Yield Combo
The single macro variable to track is the VIX, watched weekly on the CBOE feed or FRED’s VIXCLS series. A sustained move below 15 would be a warning: SPYI’s distribution is calibrated to a mid-teens volatility environment, and every point the VIX loses translates into thinner call premiums on the next monthly roll. A move back above 20 does the opposite, refilling the premium tank.
Layered on top is the 10-year Treasury, now near 4.6%, sitting in the 99th percentile of its 12-month range. A risk-free 4.62% is direct competition for SPYI’s yield. If yields keep drifting toward this spring’s high near 4.7% without a corresponding VIX pickup, the fund’s income advantage narrows. Watch the CME FedWatch tool around each FOMC meeting: a genuine cutting cycle would lift equity multiples and typically compress volatility further, a mixed signal for SPYI holders.
The Fund-Specific Factor: Distribution Composition on the Next Roll
The fund-specific signal is whether SPYI can maintain its monthly payout without eroding NAV. During the March-April 2026 stress period, elevated premiums subsidized the distribution. Since May, that subsidy has faded. If the distribution stays near 12% annualized while realized option income drops, NEOS will be paying it out of principal, and the NAV will start to bleed. Investors can check the monthly distribution notice on the NEOS Funds site (Section 19a) for the return-of-capital breakdown.
The dividend backstop matters here. Costco raised its quarterly payout to $1.47, Johnson & Johnson bumped to $1.34, and Altria’s 5.9% yield alongside Coca-Cola’s $0.53 quarterly keep the underlying cash flow steady. Investors focused purely on price appreciation with lower income needs may prefer straight SPY exposure, where the one-year gap of roughly 2 percentage points compounds meaningfully over time.
What To Watch Next
If the VIX stays anchored between 15 and 18 into the fall, expect SPYI’s next few distribution notices to lean more heavily on return of capital, and watch the September FOMC decision for any shift that could jolt volatility back above 20. A sustained VIX print under 15 paired with a 10-year yield holding above 4.5% is the combination that would materially weaken this fund’s proposition.
The post SPYI Investors: Watch These 2 Macro Factors Before the Next Distribution appeared first on 24/7 Wall St..
]]>The clock is ticking on two of the most recognizable dividend payers on the Nasdaq. Both Coca-Cola Consolidated (NASDAQ:COKE) and Costco Wholesale (NASDAQ:COST) go ex-dividend on the same day, Friday, July 24, 2026, with both payments landing in shareholder accounts on August 7, 2026. To capture either check, shares must be owned before the ex-date, which means the last practical day to buy is Thursday, July 23, 2026.
The mechanics matter here. The ex-dividend date is the cutoff: buy on or after July 24 and the seller keeps this dividend, not you. The pay date is simply when cash hits your account. Miss the ex-date, and there is no catching up until the next quarterly cycle.
Coca-Cola Consolidated (NASDAQ: COKE)
Coca-Cola Consolidated is the largest independent Coca-Cola bottler in the United States, headquartered in Charlotte, North Carolina. It operates as an independent bottler distinct from The Coca-Cola Company. The indicated annual dividend runs $1.00, and the current dividend yield sits at roughly 0.56%. To be in for this payment, purchase shares by the close on Thursday, July 23, 2026.
Coverage is not in question. Against trailing EPS of $7.26 and FY2025 EPS of $7.98, a $1.00 annual payout leaves an enormous cushion. FY2025 operating cash flow was $931.9 million against capex of $312.3 million, producing free cash flow of $619.6 million, far more than needed to fund the regular dividend. Q1 FY2026 revenue of $1.847 billion rose 16.9% year over year, though adjusted gross margin slipped 70 basis points to 39.1% on roughly $35 million of incremental aluminum costs tied to tariffs and supply.
The caveat is the modest yield and lumpy capital-return history. COKE has paid special dividends in the past (a $16.50 distribution ex-January 2024, and $2.50 payments during late 2024 and early 2025), so the regular $0.25 cadence understates total cash returned over time. The stock is up over 60% in the past year and trades at a trailing PE of 24, so while the regular dividend doesn’t look huge – there’s a lot to like about the underlying company.
Costco Wholesale (NASDAQ: COST)
Costco is the membership warehouse operator investors either already own or wish they did. The company declared a regular quarterly dividend of $1.47 per share, with an ex-dividend date of July 24, 2026 and a payment date of August 7, 2026. The indicated annual dividend is $5.88, and the trailing yield reads roughly 0.58%. Again, the last day to buy and still receive this payment is Thursday, July 23, 2026. The regular quarterly rate stepped up from $1.30 earlier this year to the current $1.47, continuing a multi-year pattern of annual raises.
Coverage looks pristine on the EPS base. Trailing EPS sits at $19.82, and FY2025 EPS was $18.21 on net income of $8.10 billion. FY2025 operating cash flow of $13.34 billion and free cash flow of $7.84 billion comfortably fund the $5.88 annual payout with room for continued warehouse expansion (heading toward roughly 942 warehouses by fiscal year-end) and buybacks. Q3 FY2026 revenue reached $70.53 billion, up 11.6% year over year, with comparable sales up 9.8% and the worldwide membership renewal rate at 89.7%. Recurring membership fees of $1.37 billion that quarter act as a nearly bond-like source of cash to backstop the dividend.
The real risk is valuation. COST carries a trailing PE of 47 and a forward PE of 41, so investors are paying up for the compounding story. The stock is down 4% over the past week, though still up over 6% year to date. Costco also occasionally pays large special dividends (the last was $15.00 in December 2023), which functions as an occasional bonus on top of the regular payout.
For income-focused readers weighing companion ideas, our research on 10 Dividend Kings to Buy Now and Hold Forever pairs naturally with a blue-chip cadence like this.
The Bottom Line
Both COKE and COST are quality names first and dividend payers second, with yields modest enough that a single quarterly payment is a side benefit rather than a thesis. That said, if these were already on a watch list, the calendar has now made the decision concrete. The ex-dividend date for both is July 24, 2026, and shares must be owned before then to receive the August 7 payment. After Thursday’s close, this cycle is gone until the next declaration.
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]]>The SPDR NYSE Technology ETF (NYSEARCA:XNTK) and the Invesco QQQ Trust (NASDAQ:QQQ) look like two flavors of the same trade. Both live near the front of the AI rally. Both charge institutional-grade fees. Yet XNTK has returned 51.65% over the past year against QQQ’s 28.43%, and 808.69% over ten years against QQQ’s 536.62%. A 35-stock equal-weight portfolio is beating the Nasdaq-100 badly. The reason matters more than the gap.
What Each Fund Is Actually Betting On
QQQ tracks the Nasdaq-100 and lets market cap decide everything. When Apple grows, its weight grows. When NVIDIA melts up, so does its slice. That mechanic is a bet on mega-cap dominance persisting: the biggest names keep compounding faster than the rest of the index. It also means QQQ carries meaningful non-tech exposure. Costco (NASDAQ:COST) is classified as Consumer Defensive, not technology, and sits inside QQQ alongside healthcare and staples names.
XNTK tracks the NYSE Technology Index: roughly 35 US-listed tech leaders, equal-dollar-weighted and rebalanced quarterly. That structure is two bets stacked. First, pure tech only, no consumer or healthcare drag. Second, breadth over dominance. A mid-tier holding matters as much as the largest holding, and every rebalance trims winners and adds to laggards. In an environment where AI leadership rotates across semis, software, and hyperscalers, that reset has captured more of the move than cap-weighting has.
Where The Divergence Shows Up
The AI beneficiaries prove the point. NVIDIA (NASDAQ:NVDA) sits at a $5.1 trillion market cap and has run 929% over five years. QQQ owns it heavily by design. XNTK owns it at roughly the same weight as everything else, and pairs it with Broadcom (NASDAQ:AVGO), up 775.99% over five years, and Palantir (NASDAQ:PLTR), up 503.15%. Equal-weighting gives those winners real portfolio impact.
The trade-off shows in stress. During 2022, XNTK fell 41.78% while QQQ dropped 33.71%. Concentrated tech gets hit harder when rates spike. And single names can still hurt XNTK: Microsoft (NASDAQ:MSFT) is down 21.69% over the past year even as most of tech surged.
The Practical Comparison
| Metric | XNTK | QQQ |
|---|---|---|
| Expense ratio | 0.35% | ~0.20% (industry standard) |
| Holdings | ~35, equal-weight | ~100, cap-weight |
| YTD 2026 return | +28.94% | +15.86% |
| 2022 drawdown | -41.78% | -33.71% |
| Forward annual dividend | $0.81 | $3.25 |
QQQ costs less, distributes more income, and includes ballast from names like Costco that soften pure-tech shocks. XNTK costs more, yields almost nothing, and delivers a purer, more concentrated tech bet with a forced quarterly rebalance.
The Verdict
XNTK fits an investor who already believes tech will keep leading, wants that thesis expressed cleanly, and can stomach a deeper 2022-style drawdown when tech breaks. The equal-weight reset is the real edge: it monetizes rotation inside tech instead of letting one or two mega-caps dictate returns. QQQ fits an investor who wants low-cost exposure to the largest Nasdaq names with some non-tech diversification and better tax and income characteristics. If leadership narrows back to a handful of trillion-dollar names, QQQ’s cap-weight will start winning again. Until then, XNTK’s structure is doing more work.
The post XNTK vs. QQQ: Does a 35-Stock Tech ETF Beat Just Buying the Nasdaq-100? appeared first on 24/7 Wall St..
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- Johnson & Johnson (JNJ) and dividend-growth peers can turn a $38,000 income stream into $84,000 in a decade without adding a dollar.
- Lower yields beat higher yields over time—a 3.5% payout that grows at 8% annually crushes a 10% flat distribution when inflation hits.
- Retirees who prioritize capital appreciation over current income unlock the real wealth compounding reveals, but only if they stress-test taxes first.
- Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
A $38,000 income is not a fantasy number. It is close to the annual earnings of many full-time workers after taxes and below the national average starting teacher salary of $48,112 for 2024-25. The headline is arithmetic, not marketing: a portfolio that pays $38,000 today can approach $84,000 in about a decade without a single additional dollar of contributions, provided the dividends keep compounding at a high enough rate. The yield you buy today matters less than the yield you own five, ten, and twenty years from now.
The Capital Required Today
Divide the income target by the yield and you get the capital required:
- Conservative tier, 3% to 4% yield. Dividend-growth equities and broad-market index funds. A 3.5% yield needs roughly $1.09 million to throw off $38,000. The principal is most likely to grow alongside the income stream.
- Moderate tier, 5% to 7% yield. REITs, preferred shares, covered-call equity income funds, and high-dividend blue chips. A 6% yield gets to $38,000 on about $633,000. Income comes faster; growth slows or caps out.
- Aggressive tier, 8% to 14% yield. Business development companies, mortgage REITs, high-yield bond funds, leveraged option-income products. A 10% yield produces $38,000 on $380,000. The check is bigger relative to capital, but distributions and principal often erode over time.
Every tier hits $38,000. Only one tends to hit $84,000 later without new money going in.
Why Choose the Lowest Yield?
A 12% distribution that never grows is worth $38,000 in year one and less in real terms as prices rise. CPI-U rose 0.5% on a seasonally adjusted basis in May 2026 and was up 4.2% over the prior 12 months, but one monthly reading should not be treated as a permanent inflation rate. A 3.5% yield growing at 8% a year roughly doubles the income in about nine years. Run the numbers: $38,000 compounded at 8% annual dividend growth reaches about $82,000 after 10 years and about $177,000 after 20 years, all from the same underlying shares if the payout growth continues. The 10-year Treasury near 4.5% looks tempting next to a 3% dividend yield until you remember that a Treasury coupon does not raise itself.
What 8% Growth Actually Looks Like
Johnson & Johnson has raised its payout for 64 consecutive years, taking the annualized dividend from $3.15 in 2016 to about $5.28 in 2026, a compound annual growth rate above 5%. Procter & Gamble (NYSE:PG) is on its 70th straight annual increase and expects to return roughly $10 billion in dividends in fiscal 2026. Coca-Cola (NYSE:KO) moved from $0.35 quarterly in 2016 to $0.53 in 2026. Lowe’s (NYSE:LOW) took its quarterly payout from around $0.28 in 2016 to $1.25 in 2026, a growth rate north of 15% annually.
Lower-yielding names extend the same lesson further. Microsoft (NASDAQ:MSFT) yields under 1%, but the quarterly dividend has gone from $0.13 in 2010 to $0.91 in 2026. Visa yields under 1% and moved from $0.105 quarterly in 2008 to $0.67 in 2026. Investors who took the small check up front got the enormous check later, plus capital appreciation of 741% for Microsoft over the past decade and 394% for Visa.
Three Things Worth Doing This Month
If reaching $38,000 in reliable dividend income (and then watching it grow toward $84,000) is the goal, do these:
- Price out your actual spending, not your salary. Many households need to replace 60% to 75% of gross income once payroll taxes, retirement contributions, and commuting costs disappear. The capital requirement drops sharply when the target does.
- Compare 10-year total returns on a dividend-growth fund against a high-yield income fund. Include reinvested distributions. The gap usually shocks people who chose the higher current yield.
- If you are within five years of retirement, stress-test the tax treatment. Qualified dividends in a taxable account, ordinary-income REIT distributions, and BDC payouts all land in different brackets. The 3.75% Fed funds rate and today’s yield curve reward doing this math before you pull the retirement trigger.
The Raise Hidden Inside the Portfolio
The $38,000 to $84,000 leap is simple arithmetic, but it is not automatic. It requires companies that keep raising payouts, a portfolio that avoids reaching too far for yield, and an investor with enough patience to let compounding do its job.
The point is not that every low-yield stock wins or every high-yield fund fails. The point is that a retirement paycheck should be judged by where it can go, not just where it starts. A portfolio that grows its income can turn a modest first-year check into something much closer to a second salary later.
The post From a $38,000 Income to $84,000 Without Investing Another Dollar appeared first on 24/7 Wall St..
]]>- Johnson & Johnson (JNJ) just raised its dividend again, extending 64 years of consecutive increases and proving patient investors collect bigger checks yearly.
- The catch: building a portfolio that generates $2,000 in annual raise requires roughly $1.1 million in capital—but that raise compounds and grows every single year.
- Dividend growth stocks eventually outpace high-yield bonds and pay far more over a decade than options promising immediate income.
- Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
A $2,000 raise usually requires a boss, a performance review, or a new job. A dividend-growth portfolio can do it more quietly. Johnson & Johnson (NYSE:JNJ) handed shareholders a small version of that raise in April when its board approved a 3% dividend increase to $1.34 per quarter, extending its streak to 64 consecutive years of higher payouts. Every share now produces about $0.16 more annual income than it did before the increase. Nothing had to be sold. No new shares had to be bought. The raise simply appeared because the business raised its payout.
That is the portfolio this article is sizing: one built to give you a roughly $2,000 annual income raise from dividend growth alone. The goal is not just a large first-year yield. It is a growing paycheck, where each year’s dividend increase applies to a larger income base and the raises can compound over time.
The Math of an Automatic Raise
Your annual raise from a dividend portfolio equals your current dividend income multiplied by the dividend growth rate. A portfolio producing $30,000 in annual dividends that grows payouts 7% next year delivers a $2,100 raise.
A blended basket of high-quality dividend growers yielding around 2.7% and growing payouts around 7% a year would need roughly $1.06 million to generate a $2,000 annual raise. That portfolio would throw off about $28,600 in year-one income, and a 7% raise on that base is just over $2,000. The following year, the same percentage raise applies to a larger income figure, so the next dollar raise is bigger. That is the compounding hiding inside the boring stocks.
Three Ways to Reach the Same Raise
Not every yield-and-growth combination gets you there efficiently. The tradeoff between current income and income growth reshapes the capital required.
- The Dividend Growth Tier (2% to 3% yield, 6% to 8% annual raises). This is the home of Dividend Kings like Procter & Gamble (NYSE:PG), Coca-Cola (NYSE:KO), and Colgate-Palmolive. At a 2.8% yield growing dividends 7% a year, the capital required for a $2,000 raise is roughly $1.1 million. The dollar raise gets larger every year without adding new money.
- The Balanced Tier (4% to 6% yield, 3% to 5% annual raises). Utility stocks, high-dividend equity funds, REITs, and preferred shares offer higher current income, but raises typically match inflation. At a 5% yield growing 4% annually, you need about $1.0 million to hit a $2,000 raise. Future raises grow more slowly.
- The High-Income Tier (8% to 12% yield, flat or shrinking payouts). Covered-call ETFs, business development companies, and mortgage REITs pay a lot up front. They are useful for retirees who need cash today, but rarely deliver an annual raise. Your $2,000 raise must come from reinvesting distributions or adding new capital.
Why the Slow Yield Wins the Long Game
Lowe’s (NYSE:LOW) raised its quarterly dividend to $1.25 in 2026, up from $1.20 previously. That is the kind of raise dividend-growth investors are looking for: not a one-time yield spike, but a business that keeps increasing the cash it sends to shareholders. The exact return over any decade depends on the start date, end date, valuation, and whether dividends were reinvested.
Coca-Cola (NYSE: KO) raised its quarterly dividend to $0.53 in 2026, marking its 64th consecutive annual dividend increase. McDonald’s (NYSE: MCD) declared a $1.86 quarterly dividend in May 2026, compared with $0.89 per share in early 2016. Investors who bought durable dividend growers years ago can end up with much higher income on their original cost, but the result depends on the purchase price and the company’s ability to keep raising payouts.
Three Moves to Turn This Into a Plan
- Calculate your current portfolio’s weighted dividend growth rate over the past five years. If it is below 5%, you are holding too many mature, low-growth names and giving up future raises for slightly more current income.
- Compare a dividend growth basket with a broad high-yield fund side by side over the last decade by dollars of income delivered per $10,000 invested, not by yield. The gap surprises most people.
- With the 10-year Treasury near 4.5%, a 2.7% dividend that grows 7% crosses the Treasury coupon in dollar terms within about seven years and keeps climbing. Model that crossover in your own numbers before assuming bonds are the higher-income choice.
The Raise That Compounds
The $2,000 raise comes from the compounding math of owning businesses that can afford to raise their payouts year after year. It is not guaranteed, and it will not show up evenly across every holding. But when the portfolio is built around dividend growth rather than the biggest first-year yield, each raise applies to a larger income base.
That is the part high-yield screens often miss. A large starting check can solve today’s income problem, but a growing check is what turns a portfolio into something closer to an annual raise.
The post The Portfolio That Gives You a $2,000 Raise Every Year appeared first on 24/7 Wall St..
]]>July tests investor conviction. From the 2011 debt-ceiling standoff to the 2022 inflation shock, summer volatility has separated durable businesses from cyclical hopefuls. Three consumer staples and healthcare giants have paid and raised dividends through Black Monday 1987, the dot-com crash, the 2008 financial crisis, the COVID-19 shutdown and the 2022 bear market. Each is a Dividend King with a decades-long streak, and each delivered a beat-and-raise quarter heading into the back half of 2026.
This is the crisis-resilience watchlist for July 2026: three names that keep writing checks when the market stops working.
Coca-Cola (KO)
Coca-Cola (NYSE:KO) enters summer with momentum, with the stock up around 20% year to date as of July 17 along with a market cap near $361.09 billion. Q1 2026 reported April 28 delivering EPS of 86 cents versus the estimated 81 cents on revenue of $12.47 billion, up 12.1% year over year. That was the fourth consecutive EPS beat, with organic revenue up 10%, global unit case volume up 3% and Coca-Cola Zero Sugar volume up 13%. Operating margin expanded to 35.0% from 32.9%.
The bull case: pricing power, scale, and cash return. Management guided 2026 to 4-5% organic revenue growth, 8% to 9% comparable EPS growth, and roughly $12.2 billion in free cash flow. Coca-Cola paid $8.8 billion in dividends in 2025 and has raised the payout for 63 consecutive years. The quarterly dividend stepped to 53 cents in 2026 from 51 cents in 2025. KO raised its quarterly payout to 41 cents in 2009 from 38 cents in 2008, straight through the financial crisis. CEO Henrique Braun said: “We’ve had a strong start to the year. Our performance this quarter reflects our unwavering focus on staying close to the consumer, executing locally and managing complexity.”
Risk to watch for: the pending Coca-Cola Beverages Africa sale, ongoing IRS tax litigation and a roughly 4% headwind from acquisitions and divestitures. Shares trade at a P/E of 28, not cheap for a mid-single-digit growth business.
Johnson & Johnson (JNJ)
Johnson & Johnson (NYSE:JNJ) has been one of the year’s biggest large-cap surprises, up 22.41% year to date and 55.74% over the past year. Q1 2026 reported April 14 posting adjusted EPS of $2.70 versus $2.68 expected on revenue of $24.06 billion, up 9.9% year over year. Innovative Medicine came in at $15.43 billion, up 11.2%, with DARZALEX at $3.96 billion (+22.5%), TREMFYA at $1.61 billion (+68.3%) and CARVYKTI at $597 million (+62.1%).
The dividend track record is the point. JNJ raised its Q2 2026 dividend 3.1% to $1.34 per share, extending the streak to 64 consecutive years of increases. The company kept raising the payout through the COVID-19 crash, moving from $0.95 in Q1 2020 to $1.01 in Q2 2020. Management raised 2026 guidance to revenue of $100.3 billion to $101.3 billion and adjusted EPS of $11.45 to $11.65. CEO Joaquin Duato said: “Johnson & Johnson had a strong start to 2026 and is delivering on its promise for a year of accelerated growth and impact.” Composite prediction-market sentiment sits at 60.67, bullish with medium confidence.
Risk to watch for: STELARA biosimilar erosion drove that franchise down 59.7% to $656 million in Q1, litigation charges added $330 million in the quarter, and the planned Orthopaedics separation introduces execution risk. For income investors weighing multi-decade streaks, our 10 Dividend Kings research walks through how these compounders behave across full market cycles.
Procter & Gamble (PG)
Procter & Gamble (NYSE:PG) is the least exciting name on this list, and that is the point. Fiscal Q3 2026 reported April 24 producing core EPS of $1.59 versus $1.56 estimated on net sales of $21.24 billion, up 7.4% year over year. Organic sales rose 3%, Beauty jumped 7% organic and growth was broad across all five segments. That makes four straight quarters of top- and bottom-line beats.
The dividend streak stands at 70 consecutive annual increases and 136 consecutive years of dividend payments since incorporation in 1890. The Q2 2026 payout was raised to $1.0885 per quarter from $1.0568. FY2026 plans include roughly $10 billion in dividends and about $5 billion in share repurchases. Beta of 0.38 makes PG one of the lowest-volatility large caps in the S&P 500. Reddit sentiment reads bullish at 72, with a composite score of 67.15. CEO Shailesh Jejurikar said the quarter delivered “a solid acceleration in top-line results in our fiscal third quarter, with broad-based growth across product categories and regions.”
Risk to watch for: P&G expects FY2026 core EPS to land toward the lower end of its $6.83 to $7.09 range due to roughly $400 million in after-tax tariff costs and a $150 million commodity headwind. Core gross margin slipped 100 basis points. Shares are up just 5.03% year to date, but that muted move is what defensive investors want when volatility strikes.
What to Watch Next
All three cleared Q1 with beats, raised dividends in 2026, and carry crisis track records predating most current Wall Street portfolio managers. If July delivers another volatility shock, keep an eye on these three: History says the checks keep clearing regardless of headlines.
The post 3 Dividend Stocks That Have Survived Every Market Crash in July appeared first on 24/7 Wall St..
]]>- Amplify CWP Enhanced Dividend Income ETF (DIVO) pairs blue-chip dividend growers with covered-call overlay to boost distributions.
- DIVO faces headwinds as 10-year Treasury yields near 4.62% squeeze valuations on dividend-heavy holdings.
- VIX near 17 limits call premiums that fund DIVO's enhanced monthly payout; readings below 15 starve the overlay.
- Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
Amplify CWP Enhanced Dividend Income ETF (NYSEARCA:DIVO) trades near $46, up 6.6% year to date and 15.4% over the past year. That trails the S&P 500’s 10.3% YTD gain, but total return is only part of the story here. DIVO pairs a concentrated sleeve of blue-chip dividend growers with a tactical covered-call overlay, and that combination is now navigating a rate backdrop that is squeezing dividend valuations while volatility drifts lower.
The lineup reads like a dividend hall of fame, anchored by Johnson & Johnson (NYSE:JNJ), Procter & Gamble (NYSE:PG), Coca-Cola (NYSE:KO), and other blue-chip dividend growers. J&J just extended its dividend streak to 64 consecutive years and P&G is now at 70. The portfolio quality is rock-solid. Two moving parts around it deserve attention.
The Macro Factor: Where the 10-Year Treasury Yield Settles
The 10-year Treasury yield is sitting at 4.62%, ranking in the 99.2 percentile of its 12-month range and just under the May peak of 4.67%. The Fed funds target has been parked at 3.75% for seven months. When risk-free yields sit this high, dividend-heavy portfolios face a valuation ceiling: investors demand more to hold equity risk over a T-bill paying nearly as much.
The pressure shows up in the holdings. P&G is up 3.4% YTD despite that 70-year record, Costco has fallen 6.2% over the past month, and Fastenal slipped 2.9% in the past week. What to watch: the 10-year yield on FRED (series DGS10) and the CME FedWatch tool ahead of the next FOMC meeting, checked weekly. A sustained retreat below the 12-month average of 4.3% would loosen the valuation vise on DIVO’s holdings; a break above 4.67% would tighten it further.
Vanguard’s 2026 outlook argues the Fed has limited scope to cut rates below our estimated neutral rate of 3.5%, meaning the easing tailwind income investors typically enjoy may not arrive. For readers wrestling with exactly this tension between Treasury yields and equity distributions (the same math dissected in The 4% Rule Is Broken), a stalled Fed reshapes the payout arithmetic.
The Fund-Specific Factor: VIX and Covered-Call Premium Income
DIVO’s edge over a plain dividend fund is the enhanced distribution financed by writing calls against individual holdings. That income lives and dies with implied volatility. The VIX is near 17, up from around 15 three sessions earlier but still below the 12-month average of 18. Lower VIX means thinner call premiums, which means the overlay generates less cash to top up DIVO’s monthly distribution.
The JNJ options chain shows the mechanism in action: the July 17 expiry alone carries 41,471 call contracts in open interest, with activity concentrated in the front month where CWP typically writes. When implied vol on names like J&J and P&G is compressed, those premiums shrink and so does the enhanced portion of the payout. What to watch: the CBOE VIX weekly, with alerts for sustained readings below 15 or above 20. The March 2026 spike to 31.05 is the recent template for a windfall premium environment; the December 2025 low of 13.47 shows what a lean one looks like.
What to Watch
Two signals matter most for DIVO over the next 12 months: a 10-year Treasury yield stuck above 4.5%, which caps upside on defensive names like KO and PG, and a VIX drifting below 15, which starves the covered-call sleeve of premium. A reversal on either front, yields easing toward 4% or the VIX steadying in the high teens, would restore both the valuation tailwind on the underlying holdings and the income power of the overlay.
The post If Volatility Stays Low, Here’s What Happens to DIVO’s Monthly Income appeared first on 24/7 Wall St..
]]>Jim Cramer believes forced selling is creating opportunities, but investors should resist buying too early. During his July 17, 2026, Mad Money Lightning Round, he recommended two defensive dividend stocks while urging patience on semiconductors and highly speculative names. His message was simple: “The speculative hands are being margined out. They’re going to get rid of them, and you’ll get a better price if you want to buy.“
Wait to Buy Semiconductors Until the Margin Sellers Are Gone
On a caller’s semiconductor question, Cramer advised being patient: “It’s a semiconductor and all semiconductor stocks are going down. May I suggest that you wait a few more days until we get rid of all the margin players, and you’re going to find a bottom. I don’t see it yet.”
NVIDIA (NASDAQ:NVDA) fundamentals remain intact. Q1 FY2027 delivered $81.61B in revenue, up 85.2% YoY, with Data Center revenue of $75.25B. But Polymarket assigns only a 60.5% probability that NVDA closes above $200 by end of July and just 37% above $210. Reddit sentiment fell into bearish territory (scores 32 to 46) July 7 through 9 on DeepSeek chip news and server delay reports.
Cramer Warns Nebius Is “Not Done Going Down”
Cramer’s sharpest warning targeted Nebius Group (NASDAQ:NBIS): “It is at the nexus of the craziness right now. There are a lot of hedge funds that own it, and I think they’re in a lot of trouble. This stock is not done going down. There’ll be another time to buy it, but that time is not now.”
Shares fell 35.21% over the past month and 20.55% in the past week, closing at $171.77 on July 16. Fundamentals are strong (Q2 revenue of $399M, up 279.6% YoY, an NVIDIA $2B pre-funded warrant investment, and a $12B Meta contract), but shares trade at 57.7x sales and 68x forward earnings.
Cramer Says Clorox’s 5% Yield Is Finally Worth Buying
Cramer’s headline call was on Clorox (NYSE:CLX). “I read my first positive note about Clorox in a great deal of time today. That was a price target increase that made me say 5% yield. You know what? We want to buy it.“
Clorox pays $1.24 quarterly, or $4.96 annualized, translating to a 5.12% yield. Shares closed at $98.71 on July 16, down 18.67% over the past year. The stock trades at 15x forward earnings with a 0.53 beta, making it a classic defensive setup Cramer wants against margin-driven volatility.
Fiscal Q3 delivered mixed signals. Adjusted EPS came in at $1.64, beating the $1.55 estimate, though management sharply lowered FY2026 guidance to $5.45-$5.65 in adjusted EPS, citing ERP transition, inventory normalization, and GOJO integration dilution as drivers of organic sales declines. CEO Linda Rendle called results “mixed, with continued momentum in some parts of our portfolio and slower-than-anticipated market share recovery in others.”
Why Cramer Prefers Coca-Cola Over Its Largest Bottler
Asked about the bottlers, Cramer chose the parent: “I would go for Coke. I think that’s a better stock.” Coca-Cola (NYSE:KO) is up 23.1% year to date, delivered Q1 EPS of $0.86 on 12.1% revenue growth, and pays $0.53 quarterly. Coca-Cola Consolidated posted a 70 bps gross margin contraction due to aluminum tariff costs and yields materially less on its $0.25 quarterly payout.
Quanta’s $48.5 Billion Backlog Makes This Selloff Worth Watching
Quality cyclicals aren’t immune. Quanta Services (NYSE:PWR) has come down from $788 to $630, retracing 12.26% in a month even after posting a record $48.5B backlog. Cramer’s advising for investors to let leveraged sellers finish selling, then step into names where cash flow, dividends, and backlog do the heavy lifting.
Key Takeaways
Cramer sees Clorox and Coca-Cola as dependable defensive holdings, while semiconductors may become attractive once forced selling subsides. More speculative names such as Nebius could have further to fall. The opportunity, in Cramer’s view, will come after leveraged sellers have been cleared out and strong businesses can be purchased at more attractive prices.
The post Jim Cramer Says Semiconductor Stocks Are “Going Down.” Buy These 2 Dividend Stocks Instead appeared first on 24/7 Wall St..
]]>- iShares Core Dividend Growth ETF (DGRO) trades near $77, up 11% YTD with narrow dividend-growth mandate.
- DGRO's performance hinges critically on 10-year Treasury yields; current 4.62% rate creates headwinds for dividend stocks.
- December 2026 index rebalance could reshape DGRO's healthcare-versus-financials exposure, particularly if Johnson & Johnson's weighting increases.
- Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
The iShares Core Dividend Growth ETF (NYSEARCA:DGRO) trades near $77, up roughly 11% year to date year-to-date. The fund’s growth-focused screen has favored quality compounders, but investors chasing headline yield have found more juice in higher-yielding peers like SCHD.
DGRO’s mandate is narrow. It tracks the Morningstar US Dividend Growth Index, which requires at least five years of uninterrupted dividend growth, excludes the top 10% of yielders, and screens out any company with a payout ratio above 75%. That yield-trap filter is what separates DGRO from SCHD and explains why the fund tilts toward large-cap compounders across 399 positions, with financials, tech, healthcare, and staples doing most of the work.
The Macro Factor That Matters Most: The 10-Year Treasury Yield
The single biggest swing factor for DGRO over the next 12 months is the 10-year Treasury yield, which sits at 4.62%, just below its 12-month high of 4.67%. On a percentile basis, current yields rank in the 99th percentile of the past year. That is the definition of a headwind for dividend-growth equities.
Coca-Cola, a top-10 holding, yields roughly 2.5%. McDonald’s yields under 3%. Investors buying DGRO for income are collecting less than they would from a risk-free 10-year note, so the fund only makes sense if the dividends grow meaningfully. When Treasuries drift higher, the math gets worse, and MCD’s roughly 11% YTD decline is a live example.
Watch two things: the CME FedWatch tool for rate-cut probabilities, and each 10-year auction (results are on TreasuryDirect the same day). The Fed has held the funds rate at 3.75% for seven months. If the 10-year cracks below 4.25% on softer inflation data, expect DGRO’s staples and healthcare sleeves to catch a bid quickly. If it pushes through 4.75%, the opposite.
The Fund-Specific Signal: The December Rebalance
DGRO’s index rebalances semi-annually in June and December, and the mechanics are worth understanding. The April 30, 2026 holdings snapshot shows something telling: Johnson & Johnson does not appear in the top positions despite being a Dividend King with 64 consecutive years of hikes. Meanwhile, JNJ has quietly surged roughly 66% over the past year. If JNJ’s weighting is reset higher at the December reconstitution, that alone can shift the fund’s yield and growth profile.
The rebalance also polices the 75% payout-ratio cap. Any name whose payout ratio breaches the ceiling gets cut. Check iShares’ holdings page in mid-December: names dropped or added by more than 50 basis points are your signal for how DGRO’s factor exposure has shifted.
What to Watch
The single most important macro signal is the 10-year Treasury yield breaking meaningfully below 4.25% or above 4.75%. The single most important fund signal is the December 2026 index rebalance and whether JNJ’s weight is restored, since that one holding materially changes the healthcare-versus-financials balance of the portfolio for the next six months.
The post DGRO’s December Rebalance Could Reshape Healthcare Exposure: Here’s What to Watch appeared first on 24/7 Wall St..
]]>- Vanguard High Dividend Yield ETF (VYM) holds $94.6B in assets, tracking large-cap U.S. dividend stocks with blue-chip safety.
- VYM's top holdings—including Johnson & Johnson, Procter & Gamble, and Coca-Cola—are Dividend Kings with strong free cash flow coverage.
- The fund delivered 21.6% total return over one year, proving income investors need not sacrifice capital appreciation for yield.
- Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
Vanguard High Dividend Yield ETF (NYSEARCA:VYM) has become one of the largest income vehicles in the market, with $94.6 billion in net assets per its most recent NPORT filing. VYM tracks the FTSE High Dividend Yield Index, screening large-cap U.S. stocks with above-average forecast yields and weighting them by market cap. With the 10-year Treasury near 4.62%, the question is whether VYM’s distribution stream still earns its equity risk premium. The short answer: mostly yes, with two holdings worth watching.
How VYM Generates Income
VYM owns roughly 550 U.S. stocks and passes through their cash dividends, minus a thin expense ratio. There are no options, leverage, or bond exposure, so the distribution is only as safe as the underlying payouts. The index rebalances annually, pruning dividend-cutters and adding higher-yielders, giving the fund self-cleaning ability but no immunity to a bad quarter.
Concentration is meaningful at the top. Broadcom alone sits at about 8% of assets, followed by JPMorgan near 3%, Exxon near 3%, and Johnson & Johnson near 2%. The next tier includes Caterpillar, AbbVie, Bank of America, Home Depot, Chevron, and Cisco. That top ten drives the majority of VYM’s cash yield.
The Blue-Chip Core Is Doing Its Job
Johnson & Johnson (NYSE:JNJ) raised its quarterly payout from $1.30 to $1.34 in Q2 2026, extending its Dividend King streak. With trailing EPS of $8.63 against an annualized dividend near $5.36, coverage is comfortable, and management raised full-year adjusted EPS guidance despite biosimilar erosion in Stelara. This dividend would survive a recession.
Procter & Gamble (NYSE:PG) lifted its quarterly dividend to $1.0885, marking another consecutive annual raise. Free cash flow of roughly $3 billion a quarter easily funds the payout, with $6.84 in diluted TTM EPS supporting $4.23 in dividends.
Coca-Cola (NYSE:KO) raised its dividend to $0.53 for 2026, a 63-plus-year streak. Q1 free cash flow jumped 131.9% year over year, and management guides to about $12.2 billion in 2026 FCF. This payout faces no realistic near-term risk.
AbbVie (NYSE:ABBV) is more interesting. Humira revenue fell 38.6% to $688 million last quarter, but Skyrizi and Rinvoq now generate a combined $6.6 billion per quarter with strong double-digit growth. Full-year adjusted EPS guidance was raised to $14.08 to $14.28, giving roughly 2x coverage on the $6.92 annualized dividend. The GAAP payout ratio looks stressed because of IPR&D charges, but the cash story is fine. (For investors thinking about high-yield warning signs elsewhere in their portfolios, our dividend traps briefing is worth a look.)
Two Positions Worth Watching
AT&T (NYSE:T) has held its quarterly dividend at $0.2775 for four consecutive years, and the stock is down about 18% over the past year. Management guides to $18 billion or more in 2026 FCF, but net debt/EBITDA at 2.71x remains above the 2.5x target. The dividend is safe. Dividend growth is not.
American Electric Power (NASDAQ:AEP) nudged its quarterly payout to $0.95, but the story is a $78 billion five-year capex plan and a $2.6 billion equity offering to fund it. Data-center load growth supports the plan, but dilution keeps per-share dividend growth in the low single digits.
Total Return and Verdict
VYM has delivered a 21.6% total return over the past year and 76.6% over five years, so investors have not sacrificed capital appreciation for yield. The distribution is well-supported: the top holdings are Dividend Kings with strong free cash flow, and even weaker names can cover their current payouts. The realistic risk is stagnant dividend growth from a few holdings. VYM makes sense for investors who want a diversified, low-fee income stream backed by real cash earnings. Yield-chasers looking for higher headline payouts should look elsewhere, because VYM is built for durability.
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]]>- NEOS S&P 500 High Income ETF (SPYI) generates 12% annualized distribution by selling call options against S&P 500 holdings.
- SPYI's income engine faces headwinds as the VIX near 17 compresses call option premiums, forcing harder decisions on maintaining payouts.
- Costco, Johnson & Johnson, and Altria dividends provide a backstop, but falling volatility combined with 4.6% Treasury yields threatens SPYI's yield advantage.
- Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
The NEOS S&P 500 High Income ETF (NYSEARCA:SPYI) has quietly delivered a total return that undersells the story: SPYI is up 8% year to date and 19% over the past year, trailing the SPDR S&P 500 ETF Trust (NYSEARCA:SPY)’s 20% one-year gain by a narrower margin than most covered-call funds. Investors own SPYI for the roughly 12% annualized distribution, and with the fund’s net assets at $6.9 billion and a 0.68% expense ratio, the question over the next 12 months is whether the income engine can keep humming as volatility compresses.
How SPYI Actually Makes Its Money
SPYI holds S&P 500 constituents (large-cap defensives like Johnson & Johnson, Procter & Gamble, Coca-Cola, Altria, Costco, and Fastenal sit alongside every other name in the index) and sells SPX index call options against the portfolio to harvest premium. That premium, paid out as return-of-capital-style monthly distributions, is where the yield comes from. The underlying dividends help, but option income is the real fuel.
Right now that fuel is thinning. The VIX is sitting near 17, below the trailing 12-month average of about 18 and a long way from this spring’s peak near 31. Lower VIX means cheaper calls, which means less premium for SPYI to collect.
The Macro Factor: The VIX Regime and 10-Year Yield Combo
The single macro variable to track is the VIX, watched weekly on the CBOE feed or FRED’s VIXCLS series. A sustained move below 15 would be a warning: SPYI’s distribution is calibrated to a mid-teens volatility environment, and every point the VIX loses translates into thinner call premiums on the next monthly roll. A move back above 20 does the opposite, refilling the premium tank.
Layered on top is the 10-year Treasury, now near 4.6%, sitting in the 99th percentile of its 12-month range. A risk-free 4.62% is direct competition for SPYI’s yield. If yields keep drifting toward this spring’s high near 4.7% without a corresponding VIX pickup, the fund’s income advantage narrows. Watch the CME FedWatch tool around each FOMC meeting: a genuine cutting cycle would lift equity multiples and typically compress volatility further, a mixed signal for SPYI holders.
The Fund-Specific Factor: Distribution Composition on the Next Roll
The fund-specific signal is whether SPYI can maintain its monthly payout without eroding NAV. During the March-April 2026 stress period, elevated premiums subsidized the distribution. Since May, that subsidy has faded. If the distribution stays near 12% annualized while realized option income drops, NEOS will be paying it out of principal, and the NAV will start to bleed. Investors can check the monthly distribution notice on the NEOS Funds site (Section 19a) for the return-of-capital breakdown.
The dividend backstop matters here. Costco raised its quarterly payout to $1.47, Johnson & Johnson bumped to $1.34, and Altria’s 5.9% yield alongside Coca-Cola’s $0.53 quarterly keep the underlying cash flow steady. Invest
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April 9, 2018: The S&P 500 closed up 0.3% at 2,613.25. The DJIA closed up 0.2% at 23,979.86. Separately, the Nasdaq was up 0.5% at 6,950.34.
Monday was another positive day for the broad U.S. markets. This was yet another push towards recovery and back to even for the three major indices. Crude oil also made a handy recovery as well. The S&P 500 sectors were mostly positive. The most positive sectors were health care, technology, and financials discretionary up 1.0%, 0.8%, and 0.6%, respectively. The worst performing sector was industrials which was down 0.3%.
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Crude oil was up 2.1% at $63.35.
Gold was up 0.3% at $1,339.90.
The S&P 500 stock posting the largest daily percentage loss ahead of the close Monday was Lowe’s Companies, Inc. (NYSE: LOW) which traded down about 3% at $85.57. The stock’s 52-week range is $70.76 to $108.98. Volume was about 7 million compared to the daily average volume of 7.4 million.
The stock posting the largest daily percentage gain in the S&P 500 ahead of the close Monday was Leucadia National Corp. (NYSE: LUK) which rose about 11.5% to $24.28. The stock’s 52-week range is $21.72 to $28.30. Volume was 6.8 million compared to the daily average volume of nearly 2 million.
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]]>September 19, 2017: The S&P 500 closed up 0.11% at 2,506.67. The DJIA closed up 0.18% at 22,372.22. Separately, the Nasdaq was up 0.10% at 6,461.32.
Tuesday was another positive day for the broad U.S. markets with all three major averages hitting new all-time highs in the session. Crude oil was lower on the day and oil & gas stocks had a mixed response. The best performing S&P 500 sector was finance, up nearly 1% mainly due to major money center banks. Materials and tech were the next best performing sectors, both coming in around 0.5%. Real estate was the worst performing sector on the day, down about 1%, although this was closely followed by the healthcare sector.
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Crude oil was down 0.7% at $49.56.
Gold was up 0.3% at $1,314.50.
The S&P 500 stock posting the largest daily percentage loss ahead of the close Tuesday was Best Buy Co., Inc. (NYSE: BBY) which traded down 8% at $52.75. The stock’s 52-week range is $37.10 to $63.32. Volume was 22.1 million versus the daily average of 4.3 million shares.
The stock posting the largest daily percentage gain in the S&P 500 ahead of the close Tuesday was Leucadia National Corp. (NYSE: LUK) which rose about 4% to $24.26. The stock’s 52-week range is $17.87 to $27.34. Volume was more or less 3.0 million compared to its average volume of 1.5 million.
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]]>With the stock market having hit all-time highs almost monthly in 2017, and with this bull market eight-and-a-half years old, investors are routinely hearing that the stock market is expensive. The problem in calling the whole market expensive is that this a market full of many stocks and full of multiple sectors from which investors can pick and choose. It turns out that some parts of the market actually still look cheap in August of 2017.
Value investors often look for companies trading below their book value, and one sector that has continued to offer stock prices under their book value is the financial sector. This includes money center banks, regional banks and insurance companies.
Investors need to consider one issue about “value” when it comes to value investing. This is where beauty is solely in the eye of the beholder, and if a stock is considered “cheap” it is often cheap for a reason.
Companies tied to business development or that were foreign based with American depositary shares were excluded from this review to avoid unknown and perhaps circumstantial issues. The minimum size of the financial institutions screened were listed as having market capitalizations north of $2 billion, they had to trade over 100,000 shares per day for liquidity purposes, and they had to be paying a dividend to show that they had that minimum financial health metric. Each group also had to be profitable.
Please note that some of these stocks are only under book value to an August sell-off or due to other selling pressure in prior months. Some are also fighting over the systemically important financial institution (SIFI) status, which also means “too big to fail.” Again, “cheap” stocks often look cheap for a reason.
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The book value screens came from Finviz.com and from second-quarter earnings press releases. We have included trading data, corporate data, consensus analyst price targets and future valuations from Thomson Reuters, dividend yields and market caps. Please note that some dividend yields are the “current yields” rather than dividends that have been approved by the Federal Reserve but that have yet to be paid to shareholders. After all, anything can change until it formally takes place!
Here are 12 mid-cap and large-cap financial sector stocks trading under the current stated book value as of August 2017.
Ally Financial
Ally Financial Inc. (NYSE: ALLY) is valued at 0.75 times its stated book value. The company announced recently that the Federal Reserve has released its Ally Bank from the capital, liquidity and business plan commitments that had been made in connection with its application for membership in the Federal Reserve System. This includes the commitment to maintain a Tier 1 leverage ratio of at least 15%. The company further noted that Ally Bank may now manage its capital and liquidity subject to applicable regulatory requirements and is expected to distribute a dividend of approximately $2.9 billion to Ally Financial during the third quarter of 2017.
Ally Financial recently traded at $22.06 and has a 52-week trading range of $16.68 to $23.62. Its consensus analyst target price is $25.91, and its market cap is $9.9 billion.
AIG
American International Group, Inc. (NYSE: AIG) is valued at 0.77 times book value, and unlike some of the other financial players it has been in state of flux and reorganization since the Great Recession. Its core business focuses on insurance products for commercial, institutional and individual customers, and the AIG name is widely recognized around the world. Its dividend yield is over 2%.
AIG was last seen at $61.22 and has a 52-week range of $57.35 to $67.47. Its consensus target price is $70.00, and its market cap is $55.3 billion.
Capital One
Capital One Financial Corp. (NYSE: COF) is valued at 0.80 times book value, and the credit card issuer has had a hard time with some of its internal metrics, along with other companies seeing some soft internals on credit card payment metrics. That has depressed Capital One’s market valuations, and its dividend yield is close to 2%. All risks aside, this is still considered to be a well-managed credit card issuer, and while it has raised rewards, the bank holding company hasn’t gone as “rewards crazy” as other credit card issuers.
Capital One traded at $81.44, in a 52-week range of $68.27 to $96.92. Its consensus target price is $95.57, and its market cap is $39.4 billion.
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Citizens Financial
Citizens Financial Group Inc. (NYSE: CFG) is valued at 0.85 times book value, and the stock was last seen trading down more than 15% from its 52-week high, despite beating earnings expectations in July. This is the holding company for Citizens Bank, and Citizens Bank of Pennsylvania for retail and commercial banking products and services in the eastern and midwestern United States. Its dividend yield is about 2.2%.
Citizens Financial traded at $33.42, in a 52-week range of $23.37 to $39.75. Its consensus analyst target is $38.96. The market cap is $16.7 billion.
Leucadia: The Mini-Buffett Stock
Leucadia International Corp. (NYSE: LUK) screens out as being valued at 0.84 times book value. There was a debate on including this “miniature Berkshire Hathaway” due to real estate, car and motorcycle leases and dealerships, food, and oil and gas. Still, Leucadia owns the well-known Jefferies investment banking firm and this makes up a large part of its $8.6 billion market cap. Its dividend yield is about 1.6%.
Leucadia was last seen at $24.00 and has a 52-week range of $17.87 to $27.34. Its consensus target price is $30.00.
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Citigroup
Citigroup Inc. (NYSE: C) is valued at just 0.87 times book value, the lowest valuation of all money center banks. The banking giant still has many international operations and arguably could still sell off more assets. That being said, Citi was recently given approval by the Federal Reserve to increase its capital return plan for shareholders by a larger amount than Wall Street was expecting. Its current dividend yield is 1.21%, but that will go to almost 2% when its 16-cent payout goes as high as 32 cents.
Citigroup traded at $66.85 and has a 52-week range of $45.16 to $69.86. Its consensus target price is $72.41, and its market cap is $182.1 billion.
Prudential
Prudential Financial Inc. (NYSE: PRU) is valued at 0.90 times book value, and the insurer’s stock is still about 15% under its 52-week high. It comes with nearly a 3% dividend yield, and its stock has doubled in the past five years. The provider of life insurance, annuities, investment management and other financial products is also said to be trying to get out from under its “too big to fail” (SIFI) status as well. With a $43 billion market cap, it may seem like it is not too big to fail, but it dates back to the 1800s. As of 2017 it had $3.7 trillion worth of life insurance in force and over $1.3 trillion in assets under management.
Prudential traded at $101.90, in a 52-week range of $76.37 to $115.26. Its consensus target price is $115.46. Its market cap is $43.5 billion.
NYCB
New York Community Bancorp Inc. (NYSE: NYCB) is valued at 0.94 times book value, and the bank now has about $48 billion in assets. The bank specified a continuing desire to manage its balance sheet below the current $50 billion SIFI threshold. The bank also has exposure to New York City taxi medallion loans, but its latest 17-cent dividend would imply a 5.7% yield that feels too high for a regional bank. It has also been hitting 52-week lows and is now down more than 30% from its 52-week high.
The shares were last seen at $11.96, in a 52-week range of $11.86 to $17.68. The consensus target price is $13.48, and the market cap is $5.9 billion.
Lincoln National
Lincoln National Corp. (NYSE: LNC) is valued at 0.95 times book value, and the life insurance company has seen its shares sell off by more than 10% in the past month alone. Its dividend yield is currently just about 1.7%, and it is valued at less than nine times next year’s expected earnings.
Lincoln National traded at $67.84 and has a 52-week range of $44.74 to $75.78. Its consensus target price is $78.27, and its market cap is $15.0 billion.
Bank of America
Bank of America Corp. (NYSE: BAC) has more or less remained under book value along with Citi in the money center banks. It is valued at 0.95 times book value, and its dividend yield is currently about 2.0%. With a $234 billion market cap, each basis point under book value represents $2.3 billion in discounting. Bank of America has remained under the Fed’s nose for a while longer than JPMorgan and Wells Fargo, and that has been why it has been at a relative discount.
Bank of America traded at $23.83. It has a 52-week range of $14.81 to $25.80 and a consensus target price of $27.00.
Umpqua
Umpqua Holdings Corp. (NASDAQ: UMPQ) is valued at 0.96 times book value and it is only under book value due to the sell-off seen in August. This is the parent company of Umpqua Bank, an Oregon-based community bank with more than $25 billion in total assets and almost $23.5 billion in tangible assets. Its market value of $3.8 billion comes with a 3.7% yield. Its shares are also down more than 10% from its 52-week high.
Umpqua was last seen at $17.30, and it has a 52-week range of $14.78 to $19.50. The consensus target price is $19.68.
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FNB
FNB Corp. (NYSE: FNB) is valued at 0.97 times book value, but that discount is only because its shares are down 22% from its 52-week high and it was a $16 stock back in March. Its stated book value discount is also a bit different than some other regional banks because it is valued at more than twice tangible book value. The bank’s average loans of $20.4 billion were up $4.2 billion (by over 25%), and the average deposits of $21.2 billion were up $4 billion (about 23.5%) due to its acquired Yadkin balances and organic loan growth. While this screens out as a regional bank with total assets of $31 billion with over 400 regional bank offices, FNB also has wealth management services for asset management, private banking and insurance. FNB has a yield of about 3.7%.
Its shares traded at $12.89, in a 52-week range of $11.86 to $16.43. Its consensus target price is $16.78, and its market cap is $4.2 billion.
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]]>After a week when the indexes finally fought their way back to even for 2016, one probably would think that insiders would be selling the huge rally. Just the opposite happened, and while there was insider selling, the buyers dominated our screens as they dominated the action. That is a very positive overall sign for the markets in general, given the bearishness that has been present for months.
We cover insider buying every week at 24/7 Wall St., and we like to remind readers that while insider buying is usually a very positive sign, it is not in of itself a reason to run out and buy a stock. Sometimes insiders and 10% owners have stock purchase plans set up at intervals to add to their holdings. That aside, it still remains a positive indicator.
Here are some of the companies that reported notable insider buying this week.
Seattle Genetics Inc. (NASDAQ: SGEN) had one of the biggest biopharmaceutical funds buying even more shares of the stock this past week. The Baker Brothers added a total of 1,349,237 shares at prices between $31.77 and $33.77 per share. The total for that buy was a very impressive $43 million. Earlier in the week, the company bought an additional 694,666 shares at prices between $32.03 and $33.10 at a cost of $23 million. Seattle Genetics is a biotechnology company that develops and commercializes antibody-based therapies for the treatment of cancer. The stock closed Friday at $33.92.
Ecolab Inc. (NYSE: ECL) had a big name buyer last week. Microsoft founder Bill Gates’s Cascade Investments, which is a 10% owner of the company, bought a whopping 499.999 shares at prices that ranged from $104.59 to $105.43. The total for the purchase came to a huge $53 million. The company provides water, hygiene and energy technologies and services for customers worldwide. The stock closed trading on Friday at $108.14, so the timing looks good.
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Aquinox Pharmaceuticals Inc. (NASDAQ: AQXP) is another company the Baker Brothers were buying this past week, and it was already a 10% holder of the shares. The fund picked up an additional 471,667 shares at between $7.98 and $8.00 apiece. The total for the trade came to $4 million. This clinical-stage pharmaceutical company engages in discovering and developing targeted therapeutics for diseases in the areas of inflammation and immuno-oncology. It primarily focuses on anti-inflammatory product candidates targeting SHIP1, a key regulator of a cellular signaling pathway in immune cells. The stock ended last week at $8.32.
Sarepta Therapeutics Inc. (NASDAQ: SRPT) saw three directors at the company purchasing shares this past week. The trio bought a total of 154,500 shares. Prices ranged from $14.54 to $16.54 per share, and the total for the trades came to $2.5 million. This biopharmaceutical company focuses on the discovery and development of RNA-based therapeutics for the treatment of rare, infectious and other diseases. Shares closed the day on Friday at $18.00, so again, well-timed buys.
Itron Inc. (NASDAQ: ITRI) had a 10% owner adding to a position this week. Scopia Capital bought a total of 82,234 shares of the stock at prices between $40.37 and $43.05. The total for the buy came to $3.5 million. The company provides metering solutions to electricity, gas and water utility markets worldwide. It offers standard electromechanical and electronic, gas and water and heat meters, as well as advanced and smart electricity, gas and water meters and communication modules. The stock ended on Friday at $42.26.
These companies also reported insider buying this week: Flamel Technologies S.A. (NASDAQ: FLML), Flex Pharma Inc. (NASDAQ: FLKS), Leucadia National Corp. (NYSE: LUK), Mosaic Co. (NYSE: MOS) and Tempur Sealy International Inc. (NYSE: TPX).
Again, the strong buying into a big market rally can only be seen as a positive. While 2016 could again prove to be a volatile year, if insiders like their shares at this level, we could have a move higher as the spring rolls in.
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]]>Stocks were indicated to open higher on Tuesday. Investors have bought stocks on pullbacks for four years now in a bull market that is nearing seven years old. 24/7 Wall St. reviews dozens of analyst reports each morning to find new investing and trading ideas for its readers. Some analyst reports cover stocks to buy, while other calls cover stocks to sell or to avoid. These are this Tuesday’s top analyst upgrades, downgrades and initiations.
AbbVie Inc. (NYSE: ABBV) was downgraded to Equal Weight from Overweight at Barclays. AbbVie has a consensus analyst price target of $75.21 and a 52-week trading range of $45.45 to $71.60.
Alcatel-Lucent S.A. (NYSE: ALU) was raised to Outperform from Neutral at Credit Suisse. Alcatel-Lucent American depositary shares (ADSs) closed at $3.93 and have a 52-week range of $3.06 to $4.96.
CDW Corp. (NASDAQ: CDW) was started with a Buy rating and was assigned a $52 price target (versus a $43.17 prior close) at Goldman Sachs. CDW has a consensus price target of $50.00 and a 52-week range of $32.57 to $46.92.
Computer Sciences Corp. (NYSE: CSC) was downgraded to Neutral from Buy and the price target was cut to $34 from $44 (versus a $31.33 close) at SunTrust Robinson Humphrey. CSC has a consensus target of $30.00 and a 52-week range of $24.77 to $31.96.
Eli Lilly and Co. (NYSE: LLY) was raised to Overweight from Equal Weight at Barclays, and the price target is $95.00 (versus an $82.04 close). Eli Lilly has a consensus price target of $97.53 and a 52-week range of $68.31 to $92.85.
ALSO READ: 6 Analyst Stock Picks With Massive Upside Targets
Ericsson (NASDAQ: ERIC) was downgraded to Underperform from Neutral at Credit Suisse. Ericsson’s ADSs closed at $9.69, with a consensus analyst target of $11.85 and a 52-week trading range of $9.06 to $13.14.
Gold Fields Inc. (NYSE: GFI) was downgraded to Sector Perform from Outperform RBC Capital Markets. The stock closed at $2.53, has a consensus analyst price target of $3.70 and has a 52-week range of $2.04 to $6.01.
JD.com Inc. (NASDAQ: JD) was reiterated as Buy with a $43.00 price target (versus a $30.68 close) at Jefferies. The firm met with its chief financial officer and thinks the fourth quarter is tracking well, with big financial and operational improvements in 2016. JD.com closed up 2.4% at $30.68 on Monday, against a consensus target price of $36.09 and in a 52-week range of $21.55 to $38.00.
Nokia Corp. (NYSE: NOK) was raised to Outperform from Neutral at Credit Suisse. Nokia closed at $7.21 and has a 52-week trading range of $5.71 to $8.37.
Rackspace Hosting, Inc. (NYSE: RAX) was raised to Outperform from Sector Perform and was given a $36.00 price target at RBC Capital Markets. Rackspace closed at $28.62. The consensus analyst price target is $39.00 and the 52-week range is $23.65 to $56.20.
TerraForm Power Inc. (NASDAQ: TERP) was raised to Outperform from Perform and was given a $10 price target (versus a $6.90 close) at Oppenheimer. TerraForm Power’s consensus price target is $23.94 and it has a 52-week range of $6.73 to $42.66.
ALSO READ: Huge PowerShares ETF Rebalance Means Massive Buying for 4 Biotech Stocks
Other key analyst upgrades, downgrades and initiations were seen in the following on Tuesday:
ABB Ltd. (NYSE: ABB) was started as Sell at Citigroup.
Aduro BioTech Inc. (NASDAQ: ADRO) was downgraded to Perform from Outperform at Oppenheimer.
CBOE Holding Inc. (NASDAQ: CBOE) was downgraded to Market Perform from Outperform at Raymond James.
Chimerix Inc. (NASDAQ: CMRX) was started as Neutral with a $50.00 fair value estimate (versus a $41.92 close) at Janney Capital Markets.
Conn’s Inc. (NASDAQ: CONN) was raised to Buy from Hold with a $35 price target (versus a $26.67 close) at Stifel.
Fidelity National Information Services Inc. (NYSE: FIS) was started as Neutral with a $70.00 price target (versus a $63.67 close) at Goldman Sachs.
Joy Global Inc. (NYSE: JOY) was downgraded to Underperform from Neutral and the price objective was slashed to $10 from $21 (versus a $15.35 close) at Bank of America Merrill Lynch.
Keysight Technologies Inc. (NYSE: KEYS) was started as Hold with a $30.00 price target (versus a $30.81 close) at Deutsche Bank.
Leucadia National Corp. (NYSE: LUK) was started with an Outperform rating and was given a $27 price target (versus a $17.68 close) at Oppenheimer.
Newmont Mining Corp. (NYSE: NEM) was downgraded to Neutral from Buy at Citigroup.
ALSO READ: Jefferies Has 4 Blue Chip High-Dividend Franchise Picks to Buy Now
Rexx Energy Corp. (NASDAQ: REXX) was downgraded to Sell from Hold and was given a $0.75 price target (versus a $1.37 close) at Stifel.
TG Therapeutics Inc. (NASDAQ: TGTX) was started as Outperform with a $29.00 price target (versus a $13.18 close) at FBR Capital Markets.
uniQure N.V. (NASDAQ: QURE) was started as Buy and was given a $40.00 fair value estimate (versus a $21.57 close) at Janney Capital Markets.
Xerox Corp. (NYSE: XRX) was started with a Neutral rating and was assigned a $10 price target (versus a $10.55 close) at Goldman Sachs.
Zendesk Inc. (NYSE: ZEN) was reiterated as Buy at Canaccord Genuity and it was still called a top small cap growth pick. That being said, its shares have risen from about $19 to $25 in a few weeks, and they feel the stock needs a pause to catch its breath through year-end.
In case you missed Monday’s top analyst upgrades and downgrades, they were in shares of Fitbit, General Electric, Lockheed Martin, Lululemon Athletica, Marriott International, Microsoft, Philip Morris, SLM and over a dozen more companies.
The post Top Analyst Upgrades and Downgrades: AbbVie, CDW, CSC, Eli Lilly, Ericsson, Gold Fields, JD.com, Nokia, Rackspace and Many More appeared first on 24/7 Wall St..
]]>Leucadia National Corp. (NYSE: LUK) has bailed out battered foreign exchange broker FXCM Inc. (NYSE: FXCM) with a $300 million cash investment in exchange for $250 million two-year secured notes that carry a coupon of 10%. If FXCM is sold, Leucadia gets 75% of the proceeds.
For FXCM, it was either take the deal or call on its customers to cough up $225 million in cash in order to avoid breaching capital requirements. If clients couldn’t cover, FXCM had to.
FXCM was the hardest hit U.S. foreign exchange broker following the Swiss National Bank’s decision to remove the Swiss franc’s peg to the euro. The brokerage’s shares dropped to $1.49 in premarket trading Friday and were halted before the opening bell.
CNBC reported that another foreign exchange broker, Alpari UK, entered insolvency as a result of the the Swiss bank’s decision. A New Zealand brokerage, Excel Markets, also went broke.
Reuters reported exclusively Friday that investment bank Jefferies was talking with FXCM about a rescue package. Shares of Leucadia, Jefferies’ parent, were halted at 12:25 p.m. ET on Friday. As of 3:35 p.m., shares have not been restarted.
ALSO READ: Interactive Brokers Outlines Exposure to Swiss Franc Losses
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]]>Crimson Wine Group Ltd. (OTC: CWGL) is the newest company to hit the markets around the trade of wine, beer and spirits. This is actually a spin-off that was just completed from Leucadia National Corp. (NYSE: LUK), paid out to its holders as a dividend, and it was timed as part of the process of acquiring Jefferies Group Inc. (NYSE: JEF).
Crimson is a Napa-based player that produces premium, ultra-premium and luxury wines, and wine aficionados likely will have heard of the brands: Pine Ridge Vineyards, Archery Summit, Chamisal Vineyards and Seghesio Family Vineyards. As this is still an OTC company, we will only offer up what the companies have offered.
Our one comment is that this is unlikely to remain OTC for long. Companies generally try to avoid that stigma, and our take is that Leucadia conducted this spin-off in a low-profile and rapid manner because the company was too small to make much of a dent either way. Here is what Crimson’s SEC filing shows about its financial picture:
Revenues and other income for 2012 and 2011 include $9,640,000 and $14,592,000, respectively, of increased revenues at the winery operations; substantially all of the 2012 increase and $9,628,000 of the 2011 increase results from the acquisition of Seghesio Family Vineyards in the second quarter of 2011. The change in selling, general and other expenses for 2012 and 2011 as compared to the prior year also reflects $2,138,000 and $12,152,000, respectively, of greater costs at the winery operations. Selling, general and other expenses also include charges of $1,513,000 in 2010 at the winery operations to reduce the carrying amount of wine inventory.
The post Crimson Wine Group — Alas, Another Public Wine Company appeared first on 24/7 Wall St..
]]>There is a nearly endless number of criteria that measure how well CEOs perform, whether they are paid fairly, and what metrics should be used for determining chief executive compensation. One yardstick that is never used but should be, is the simple ratio of market capitalization to pay. It takes into account the entire value of the company to shareholders and weighs it directly against annual compensation.
At the one end of the compensation to market cap ratio are relatively small companies that have very highly paid CEOs. At the other are chief executives at large companies who work for more modest sums and are either paid well for extraordinary financial results or have boards that believe that CEOs should not be paid like sultans
Read: America’s Least Valuable CEOs
Also Read: America’s Most Valuable CEOs
Every year, the media come out with lists of American public company CEOs who makes tens of millions of dollars. While some may have earned the money because of phenomenal results, others are paid well despite poor results. Our list of least valuable CEOs is based on chief executives who are paid handsomely, even though they run corporations with modest market caps and sales. Additionally, most of their companies have not done well, either financially or in terms of stock market performance.
Some of the companies on this list are run by founders or large shareholders. These people may well be in a position to have outsized influence over their own pay packages, which puts shareholders in an impossible position to effectively protest compensation. Other CEOs have been hired fairly recently to turn companies around. They have been paid well to take jobs in which they are expected to post great improvement, but they have not done so yet, and may never. .
24/7 Wall St. identified the least valuable CEOs based on executive pay relative to company market cap. We reviewed the market cap and CEO compensation for every S&P 500 company as of Dec. 31, 2011. If a company’s stock performance exceeded that of the S&P 500 Index between December 30th, 2011 and November 12th, 2012 it was excluded. CEOs who joined their companies or were promoted during the year in question have been included for the purpose of our measurements.
These are America’s least valuable CEOs.
10. Anthony Petrello
> Compensation to market cap: $3,208 / $1M market cap
> Compensation: $16 million
> Market Cap: $5 billion
> Company: Nabor Industries (NYSE: NBR)
Anthony Petrello was a lawyer with the firm Baker & McKenzie from 1979 to 1991. He became CEO of Nabor, a big land rig drilling contractor, in October of last year after two decades as president. Analysts have mentioned that Nabor CEO compensation has not been in line with the company’s performance for a number of years. Corporate governance officials revolted when Petrello’s predecessor, Eugene Isenberg, was offered a $100 million comp package as he left the company. The criticism was so severe that Isenberg turned down the package early this year. Petrello, who was Isenberg’s No. 2 until his promotion, may also have a tremendously large package, especially given the company’s size. But Nabor’s financial performance has been reasonably good recently. Revenue in 2011 was $6.1 billion and net income was $244 million. In the previous year, revenue was $4.1 billion, and net income was $95 million. These figures, however, have not been anywhere near expectations as evidenced by the roughly 40% drop in Nabor’s share price over the last two years. The S&P 500, during that time has increased by 12%.
9. Richard Kramer
> Compensation to market cap: $3,530 / $1M market cap
> Compensation: $12.2 billion
> Market Cap 12/31: $3.5 billion
> Company: Goodyear Tire & Rubber Co. (NYSE: GT)
Goodyear posted improved financial results in 2011. Revenue was $22.7 billion and net income was $321 million. This compares to revenue of $18.8 billion and a net loss of $216 million in 2010. Wall Street, however, wasn’t impressed and the company’s shares underperformed the S&P 500 over the last two years. Kramer became head of the huge tire company in April 2010. He had been an accountant and worked at PricewaterhouseCoopers previously. He joined Goodyear as vice president of the corporate finance division in 2000. Last year was not the only one in which Kramer might have been criticized by pay vigilantes. He made $10.1 million in 2010.
8. Gregory Cappelli
> Compensation to market cap: $3,674 / $1M market cap
> Compensation: $25.1 million
> Market Cap: $6.8 billion
> Company: Apollo Group (NASDAQ: APOL)
Education company Apollo was caught in the fallout of a government investigation into for-profit education companies which undermined its financial results recently. Most of the company’s revenue comes from its University of Phoenix operation. Apollo had 21,777 full time students as of the middle of last year. The company’s lead position in the sector helped it to grow revenue for several years, but in its most recent fiscal, revenue dropped to $4.25 billion from $4.71 billion the year before. Net income attributed to Apollo fell from $572 million to $423 million over the same period.
Apollo’s Achilles’ heel — over-reliance on government student loans — is particularly exposed. As one Morningstar analyst pointed out recently, “Regulatory concerns are high partly because of high post-graduation student debt loads. Tuition rates may be forced downward so programs can meet maximum debt/income ratios.” Investor anxiety over the effects of government regulation has pushed Apollo shares down 40% over the last two years. CEO Gregory Cappelli, however, does have a great advantage in his corner. Two board members are founder Dr. John G. Sperling, executive chairman of the board, and his son, Peter V. Sperling, vice chairman. They control the company through ownership of Class B Shares, and almost certainly have an outsized say about Cappelli’s package
Also Read: States with the Highest and Lowest Taxes
7. Rory Read
> Compensation to market cap: $4,148 / $1M market cap
> Compensation: $15.6 billion
> Market Cap: $3.8 billion
> Company: AMD (NYSE: AMD)
AMD, the No. 2 semiconductor company in the world after Intel, has been near death for years. Between price and research and development pressures from its larger competitor and a sharp drop in PCs and servers sales, AMD has almost no room to improve its financial situation. Recent rumors of a sale gave the stock a temporary lift, but when the company denied them, share price cratered. Last year, revenue ticked up to $6.6 billion from $6.5 billion the year before. Net income rose to $491 million from $471 million. With the shrinking share of PCs and the rapid growth of mobile devices such as tablets and smartphones, investors’ rapidly grew concerned about AMD’s future. AMD’s share price has dropped more than 70% in the last two years. Rory Read joined AMD as CEO in August 2011. He has previously worked at Chinese PC firm Lenovo as chief operating officer. His efforts to improve the fate of the company are almost certainly hopeless, but he is paid well while he waits for AMD to fall apart at the seams.
6. Kieran Gallahue
> Compensation to market cap: $4,419 / $1M market cap
> Compensation: $25.2 million
> Market Cap: $5.7 billion
> Company: CareFusion (NYSE: CFN)
CareFusion makes and markets medical technology, including products for infection prevention, biopsies, respiratory care, and surgical supplies. It is a spin-out from huge medical supply firm Cardinal Health in August 2009. Several issues almost always turn investors against public companies. One is when they delay their SEC filings. CareFusion has yet to file its 10-K for its most recent full year results. The company says it is working on accounting charges, but has not said when the process will be complete. In the 10-K for the fiscal year that ended on June 30, 2011, CareFusion modest disappointing results. Revenue rose from $3.47 billion the year before to $3.53 billion. Net income rose from $194 million to $244 million. These results and those posted in subsequent quarters have been good enough so that CareFusion’s shares have matched the performance of the S&P 500 over the last two years. Kieran Gallahue became CEO in January 2011. With a pay package of $25.2 million, he is wildly well paid to run such a modest sized company.
5. Steven Fishman
> Compensation to market cap: $4,814 / $1M market cap
> Compensation: $11.9 million
> Market Cap: $2.5 billion
> Company: Big Lots (NYSE: BIG)
Big Lots’ is one of the largest close-out retailers based in the U.S. The company has just over 1,400 stores spread throughout America and Canada. Its stores are known for providing goods at extremely low prices, it competes in a portion of the retail market that often includes Walmart. Its shares have declined 10% over the last two years. According to the company’s most recent 10-K, revenue rose to $5.2 billion from $5 billion the year before. But net income fell from $223 million to $207 million. Steven Fishman joined Big Lots as CEO in July 2005. His board has consistently treated him generously. Over the last three years, Fishman’s pay has totaled $35 million.
4. Ian Cumming
> Compensation to market cap: $5,066 / $1M market cap
> Compensation: $28.2 million
> Market Cap: $5.6 billion
> Company: Leucadia National (NYSE: LUK)
Leucadia is often referred to as the poor man’s Berkshire Hathaway. It recently said it will buy the portion of investment bank Jefferies it does not already own. Once the transaction is completed, CEO Ian Cummings will stay, but the chief of Jefferies will take over as CEO of the combined operations. Joseph Steinberg and Cumming essentially control Leucadia. The firm’s shares declined more than 20% in the last two years compared to a 12% improvement in the S&P 500. Revenue was up slightly last year from $1.32 billion in 2010 to $1.57 billion in 2011. Much of the revenue came from the firm’s oil services, gaming entertainment operations, and from securities transactions. Because of an accounting change that involved an income tax provision, net income fell from $1.9 billion in 2010 to $25 million in 2011. The figure was also down from $550 million in 2009. Cumming has served as a director and chairman of the board since June 1978. Steinberg has been president since January 1979. Steinberg owns 10% of the firm’s shares and Cumming 9%, so it is not hard to see why compensation is so liberal. As CEO, Cumming’s pay package may be more visible but Steinberg made $28.2 million last year.
Also Read: Thirteen American Cities Going Broke
3. Dinesh Paliwal
> Compensation to market cap: $6,027 / $1M market cap
> Compensation: $16.1 million
> Market Cap: $2.7 billion
> Company: Harman International (NYSE: HAR)
Shares of Harman, the maker of audio and electronics entertainment products, have sold off 7% during the last two years. Paliwal did well last year, but he has a history of being generously rewarded by his board. Over the three years that ended in 2011 he made more than $42 million. Harman posted good results last year, although some of the growth had to do with a recent acquisition. Revenue rose to $4.36 billion in fiscal 2011 from $3.77 billion in fiscal 2010. Net income was $330 million, up from $136 million the previous year. Sales at Harman’s largest unit, infotainment, which made up 55% of total revenue, grew 15%. The division sells GPS and entertainment hardware, among other products, to car manufacturers such as BMW, Subaru, and Audi.
2. Ronald Johnson
> Compensation to market cap: $7,098 / $1M market cap
> Compensation: $53.3 million
> Market Cap: $7.5 billion
> Company: J.C. Penney (NYSE: JCP)
If there is a shortlist of CEOs at American publicly traded companies who have done an awful job, J.C. Penney’s CEO Ronald Johnson is at the top of it. His move from his role as the head of Apple’s retail operations to the “rescue” of J.C. Penney has been much discussed in the business news media. After his move, Johnson changed Penney’s discount strategy. Revenue then began to drop as much as 20% quarter over previous year’s quarter. Internet sales, critical to any retailer, have fallen even more. Shares are off by nearly 50% over the last two years. Many investors have completely given up on the company. Penney had 1,102 stores when it filed its most recent 10-K. That list of stores is being pruned as results worsen. Revenue was down 2.8% last year to $17.3 billion, but the rate of the drop has accelerated. It is a miracle that Johnson still has his job. But Penney does have a large shareholder, hedge fund Pershing Square, and if its founder William Ackman wants Johnson as CEO. It is unlikely Johnson will be leaving.
1. Michael Jeffries
> Compensation to market cap: $11,450 / $1M market cap
> Compensation: $48.1 million
> Market Cap: $4.2 billion
> Company: Abercrombie & Fitch (NYSE: ANF)
Abercrombie & Fitch posted a good quarter recently, but that was after a longer period in which the retailer suffered as its young, hip customers turned to other brands. Over the last two years, Abercrombie shares fell by 7%. The company and its sub-brands, which include Hollister and Abercrombie Kids, operate out of 1,045 locations. Abercrombie did well on the top line last year but not the bottom. Revenue reached $4.16 billion, up from $3.47 billion the year before. Net income fell from $150 million in 2010 to $128 million over the same period from 2010 to 2011. CEO Michael Jeffries has a long history with the company and is listed as a founder in the Abercrombie proxy. He has served as chairman since May 1998, and as chief executive officer since February 1992. Longevity has its advantages. Jeffries has made $107.6 million as the head of Abercrombie over the last three years.
Douglas A. McIntyre
Also Read: America’s Most Valuable CEOs
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]]>U.S. equity markets opened higher this morning on a day when most government offices and banks are closed in observance of Veteran’s Day. Asian markets were muddled this morning as reports came out that Chinese exports grew more than 11% in October, but bank lending was down. Japan’s third quarter GDP declined, and the “one world, one economy” idea has virtually replaced the idea that emerging economies are somehow insulated from the travails of developed economies (more coverage here). In Europe, Greece faces a €5 billion payment this week and a bond sale set for tomorrow has only been subscribed to the tune of about €3.5 billion. Markets have swung both below and above the neutral line today, and closed essentially flat for the day.
The U.S. dollar index rose slightly today, now up 0.02% at 81.042. The GSCI commodity index is up 0.8% at 636.41, with commodities prices mostly lower today (more coverage here). WTI crude oil closed down 0.6% today, at $85.57 a barrel. Brent crude trades down about 0.6% at $108.92 a barrel. Natural gas is up 1.8% today at about $3.57 per thousand cubic feet. Gold closed unchanged today at $1,730.90 an ounce.
The unofficial closing bells put the DJIA down less than 2 points to 12,8114.16 (-0.01%), the NASDAQ fell less than 1 point (-0.02%) to 2,904.26, and the S&P 500 rose 0.01% or less than 1 point to 1380.00.
There were several analyst upgrades and downgrades today, including Garmin Ltd. (NASDAQ: GRMN) cut to ‘sell’ at Goldman Sachs; Chesapeake Energy Corp. (NYSE: CHK) maintained as ‘hold’ at Argus, but warns of possible ‘sell’ rating reinstatement; J.C. Penney Company Inc. (NYSE: JCP) cut to ‘underperform’ at Credit Suisse; The Walt Disney Co. (NYSE: DIS) raised to ‘buy’ at Citigroup; and Groupon Inc. (NASDAQ: GRPN) cut to ‘market perform’ at William Blair.
Earnings reports of interest since U.S. markets closed last Friday were few and have resulted in some price moves today, including these as of the last half hour of trading: Ceradyne Inc. (NASDAQ: CRDN) is up 0.03% at $34.98; and DR Horton Inc. (NYSE: DHI) is down 5.9% at $19.38.
After markets close today and before they open tomorrow morning we are scheduled to hear from Einstein Noah Restaurant Group Inc. (NASDAQ: BAGL), Jacobs Engineering Group Inc. (NYSE: JEC), Weatherford International Inc. (NYSE: WFT), Dick’s Sporting Goods Inc. (NYSE: DKS), Home Depot Inc. ( Bankrate Inc. (NYSE: RATE), a digital publisher of personal finance content, has agreed to a merger with privately held Red Ventures in which Bankrate shareholders will receive $14 in cash for each Bankrate share. The total value of the all-cash deal is approximately $1.4 billion. The acquisition price represents a premium of 31% to Bankrate’s three-month average closing price and has been approved unanimously by the Bankrate board of directors. The company’s stock closed at $12.85 on Friday and traded up more than 7% Monday morning at $13.75. The stock’s 52-week range is $6.91 to $12.95. Red Ventures is headquartered in Fort Mill, South Carolina, and specializes in online marketing, telephone sales and building technology, according to a Bloomberg profile of the company. It was founded in 2000 and has operations in Charlotte, North Carolina, and Seattle, as well as São Paolo, Brazil and Waltham, Massachusetts. [nativounit] Ric Elias, CEO of Red Ventures said: We’re excited to join forces with the Bankrate team, which has built an impressive and powerful platform of consumer-facing financial services content and brands. Our capabilities are highly complementary. We see significant potential to leverage our technology, strategic partnerships and digital expertise and build on Bankrate’s leading platforms to help more consumers find the financial services and products that meet their needs. Bankrate CEO Kenneth Esterow said: We are thrilled to have reached an agreement that delivers immediate and significant value to our shareholders while joining with Red Ventures, a world-class organization that will take the Bankrate businesses to the next level of success. As a part of Red Ventures, Bankrate will be better positioned than ever to be the partner of choice for providers to acquire customers. The transaction is expected to close this year, subject to regulatory approval and customary closing conditions. [wallst_email_signup] The post Bankrate Acquired by Red Ventures in $1.4 Billion Deal appeared first on 24/7 Wall St.. [cnxvideo id=”625477″ placement=”ros”]Stocks were indicated slightly lower on Wednesday, although a 20-point Dow drop and three-point S&P 500 retreat are hardly worth getting down in the dumps about. After all, the Dow is still above 20,000 and the S&P 500 remains within striking distance of the 2,300 level. Despite this bull market being eight years old, investors keep finding new reasons to buy every sell-off. Those same investors are also looking for new and overlooked opportunities. And there is still a path for DJIA 21,422 later in 2017 or in early 2018. 24/7 Wall St. reviews dozens of analyst reports each day of the week. The goal is to find new investing and trading ideas for our readers. Some analyst reports cover stocks to buy, while other reports cover stocks to sell or avoid. Most of the following featured analyst calls include some color, and Thomson Reuters was used for consensus analyst price target data. These are the top analyst upgrades, downgrades and initiations seen on Wednesday, February 8, 2017: Broadcom Ltd. (NASDAQ: AVGO) was maintained as a Top Pick (official Outperform rating) and the price target was raised to $225 from $200 at RBC Capital Markets. Broadcom’s 52-week trading range is $114.25 to $207.40, and it has a consensus analyst target price of $216.23. [nativounit] Cheniere Energy Inc. (NYSEMKT: LNG) was started with an Outperform rating at Wells Fargo. Cheniere was down 1.4% at $47.81 on Tuesday, in a 52-week range of $23.74 to $50.53 and with a consensus price target of $51.30. Gilead Sciences Inc. (NASDAQ: GILD) was last indicated down 7% at $68.03 after earnings and guidance left a lot of room for disappointment to creep in despite a serious value here. Gilead was maintained as Buy at Jefferies, but the firm cut the price target to $83 from $93 (versus a $73.13 prior close). Citi downgraded Gilead to Neutral from Buy and cut the target price to $76 from $87. Gilead’s 52-week range is $69.78 to $103.10, so mark this up as a 52-week low. Microchip Technology Inc. (NASDAQ: MCHP) was raised to Strong Buy at Needham and the price target was raised to $100 from $75 (versus a $69.92 prior close). Microchip Tech was indicated up 8% at $75.35, as acquisitions are helping boost its earnings, in a prior 52-week range of $39.01 to $69.73. The consensus target price was $71.81. Twitter Inc. (NYSE: TWTR) was up 1.8% at $18.26 on Tuesday and was indicated up 2.1% at $18.65 on Wednesday. Twitter was raised to Buy from Neutral with a $25 price target (versus an $18.26 close) at BTIG. Twitter has a 52-week range of $13.73 to $25.25, and it has a consensus price target of $16.32. Follow @Jonogg on Twitter to get analyst calls and research summaries posted directly to your feed. Other key analyst calls were seen in the following: Bankrate Inc. (NYSE: RATE) was started with an Outperform rating and assigned a $14 price target (versus a $10.60 prior close) at Oppenheimer. Cheniere Energy Partners L.P. (NYSEMKT: CQP) was started with an Outperform rating at Wells Fargo. D.R. Horton Inc. (NYSE: DHI) was started with a Buy rating and assigned a $38 price target at BTIG. Emerson Electric Co. (NYSE: EMR) was raised to Neutral from Sell and the price target was raised to $64 from $51 at UBS. KB Home (NYSE: KBH) was started with a Sell rating and assigned a $13 price target (versus a $16.32 close) at BTIG. Lennar Corp. (NYSE: LEN) was started with a Buy rating and assigned a $56 price target at BTIG. LendingTree Inc. (NASDAQ: TREE) was started with an Outperform rating and assigned a $129 price target (versus a $113.50 price target) at Oppenheimer. Loxo Oncology Inc. (NASDAQ: LOXO) was started as Buy and assigned a $50 price target (versus a $39.68 close) at Jefferies. The analysts noted that larotrectinib is nearing the finish line and that there is still room for upside. Mosaic Co. (NYSE: MOS) was downgraded to Outperform at CLSA. NetGear Inc. (NASDAQ: NTGR) was downgraded to Market Perform from Outperform at Raymond James. NGL Energy Partners L.P. (NYSE: NGL) was downgraded to Hold from Buy at Stifel. NVR Inc. (NYSE: NVR) was started at Neutral at BTIG. Royal Bank of Scotland Group PLC (NYSE: RBS) was raised to Hold from Underperform at Credit Suisse. Toll Brothers (NYSE: TOL) was started at Neutral at BTIG. Varian Medical Systems Inc. (NYSE: VAR) was maintained as Buy but the price target was cut to $88 from $102 (versus a $78.43 close) at Jefferies. YY Inc. (NASDAQ: YY) was started with a Hold rating and assigned a $45 price target (versus a $41.11 close) at Jefferies. Tuesday’s top analyst calls included Best Buy, Caterpillar, Nokia, UnitedHealth, Wal-Mart and over a dozen more. [wallst_email_signup] Argus noted about the metrics of the stock market as of February 7, 2017: We have pointed out that February is not a terrific market month, particularly since the turn of the millennium. But for now, the chief fundamental market mover likely will remain the pace of policy pronouncements from Washington. The upwardmoving stock market seemingly has priced in stimulative action, such as tax cuts and infrastructure spending, that needs more than the president’s pen. The pace at which these items gradually wend their way to and through Congress should remind investors that major changes require time. In the interim, improving earnings and better GDP will be needed to buttress the stock market. The post Top Analyst Upgrades and Downgrades: Broadcom, Cheniere, Gilead, Microchip Tech, Twitter, Lennar, Bankrate and Many More appeared first on 24/7 Wall St.. Stocks were indicated to open marginally higher despite lower oil and despite a big loss in China’s stock markets. There is still a fight over the stance of selling into rallies and buying the dips. 24/7 Wall St. reviews dozens of analyst reports each day to find new investing and trading ideas for its readers. Some analyst reports cover stocks to buy, and other calls cover stocks to sell or to avoid. These are the top analyst upgrades, downgrades and initiations seen on Thursday, February 25, 2016. Bank of America Corp. (NYSE: BAC) was maintained as Outperform at Credit Suisse, but the price target was trimmed to $18 from $20 (versus a $12.13 prior close). The firm lowered 2016 and 2017 EPS estimates to $1.35 and $1.55, respectively. They introduced a 2018 estimate of $1.70 per share, based on lower Federal Reserve rate hikes and the cost of the weaker capital markets. Encana Corp. (NYSE: ECA) was already rated as Buy at Jefferies, but now the firm has added it to its Franchise Picks list and it has an $8 price target. Encana closed at $3.68 and was called a well-funded outfit with high-quality assets trading at a sharp discount to its $8 value. RBC has a Sector Perform rating but raised its target to $8 from $7. Energy Transfer Partners L.P. (NYSE: ETP) downgraded to Neutral from Buy and the price objective was cut to $28 from $30 (versus a $29.72 close) at Bank of America Merrill Lynch. The firm is worried that Energy Transfer Equity may need to help on Energy Transfer Partners cash distribution sustainability after its EBITDA was almost 10% shy of the firm’s estimate, and they see a higher probability of a cash distribution cut at Energy Transfer Partners. Salesforce.com Inc. (NYSE: CRM) closed down 0.6% at $62.52 before earnings but was up over 9% at $68.50 afterward. It was reiterated as Hold at Jefferies, but the firm raised its target to $60 from $54. FBR has an Outperform rating but lowered its price target to $82 from $88. Credit Suisse reiterated its Outperform rating and $100 price target. Transocean Ltd. (NYSE: RIG) was maintained as Underperform at Credit Suisse, but the firm cut its price target to $5 from $10 (versus an $8.20 close). Their take is that things are not getting any easier. Transocean has a consensus analyst target of $9.28 and a 52-week trading range of $7.67 to $21.90. You can follow @Jonogg if you would like the daily analyst calls and other market calls and research directly on your Twitter feed. Other key analyst upgrades, downgrades and initiations seen on Thursday included the following: If you missed Wednesday’s top analyst upgrades and downgrades, they included First Solar, Ford, Frontier Communications, JPMorgan, Macy’s, Yamana Gold and a dozen or so more. The post Top Analyst Upgrades and Downgrades: BofA, Encana, Energy Transfer, Restoration Hardware, Salesforce.com, Transocean and More appeared first on 24/7 Wall St.. Stocks were lower on Monday to start off the week, mainly on overseas weakness. Investors have shown time and again for four years now that they are willing to buy any pullback, and they are looking for new opportunities and hidden value. 24/7 Wall St. reviews dozens of analyst reports each day of the week to find new ideas for its readers. Some analyst reports cover stocks to buy, while other calls cover stocks to sell or avoid. These are this Monday’s top analyst upgrades, downgrades and initiations. Bankrate Inc. (NYSE: RATE) was raised to Buy from Underperform with a price target of $18.00 (versus a $14.47 prior close) at Bank of America Merrill Lynch. Bankrate has a consensus analyst target price of $13.29 and a 52-week trading range of $8.87 to $15.80. FireEye Inc. (NASDAQ: FEYE) was maintained as Outperform at Imperial Capital, but the firm slashed the target price to $32 from $55 after last week’s hugely disappointing guidance. FireEye is one of the top companies that burned their shareholders last week and it caught many key analyst downgrades and target cuts. First Data Corp. (NYSE: FDC) was started as Outperform and the price target was set at $21 at Cowen. Wells Fargo started First Data as Outperform, Evercore ISI started it as Buy and Barclays started coverage as Overweight. First Data closed at $17.08, within its post-IPO range of $14.99 to $17.30. Pier 1 Imports Inc. (NYSE: PIR) was started with a Sell rating and was given a price target of $7.00 (versus an $8.19 close) at UBS. Pier 1 has a consensus price target of $10.41 and a 52-week range of $6.52 to $17.52. Regions Financial Corp. (NYSE: RF) was downgraded to Hold from Buy with an $11 price target (versus a $10.13 close) at Deutsche Bank. It has a consensus price target of $10.85 and a 52-week range of $8.54 to $10.87. Stratasys Ltd. (NASDAQ: SSYS) was downgraded to Hold from Buy and the price target was slashed to $28 from $40 (versus a $27.59 close) at Deutsche Bank. Stratasys has a consensus price target of $28.94 and a 52-week range of $24.80 to $106.86. ALSO READ: 10 Brands That Will Disappear in 2016 Target Corp. (NYSE: TGT) was started as Buy with an $88 price target (versus a $77.22 close) at Citigroup. Target has a consensus analyst price target of $84.76 and a 52-week range of $64.14 to $85.81. Wal-Mart Stores Inc. (NYSE: WMT) started as Neutral with a $60 price target (versus a $58.78 close) at Citigroup. Wal-Mart has a consensus price target of $62.95 and a 52-week range of $56.77 to $90.97. ZS Pharma Inc. (NASDAQ: ZSPH) was downgraded to Equal Weight from Overweight, but the price target was raised to $90 from $76 (versus an $89.04 close) at Morgan Stanley. JPMorgan downgraded the stock to Neutral from Overweight but raised its target to $90 from $75. This is after a 40% gain on Friday, and it was one of our top biopharma movers that now cannot be ignored. Other key analyst upgrades, downgrades and initiations on Monday were in the following: Amplify Snack Brands Inc. (NYSE: BETR) was raised to Outperform from Neutral with a $16.00 price target (versus a prior $13.00 target and a $12.38 close) at Credit Suisse. CPI Card Group Inc. (NASDAQ: PMTS) was started as Buy with a $16 price target (versus an $11.90 close) at Goldman Sachs. Heritage Oaks Bancorp (NASDAQ: HEOP) was raised to Market Perform from Outperform at Raymond James. Inphi Corp. (NASDAQ: IPHI) was downgraded to Market Perform from Outperform with a $31 price target (versus a $31.23 close) at Northland Securities. KeyCorp (NYSE: KEY) was downgraded to Hold from Buy and the price target was cut to $14 from $16 (versus a $13.39 close) at Deutsche Bank. LendingTree Inc. (NASDAQ: TREE) was started as Buy with a $150 price target (versus a $124.97 close) at SunTrust Robinson Humphrey. ALSO READ: Why GE Is the Best Conglomerate Stock of 2015 News Corp. (NASDAQ: NWSA) was downgraded to Market Perform from Outperform at Wells Fargo. Restoration Hardware Holdings Inc. (NYSE: RH) was started as Buy at UBS. RSP Permian Inc. (NYSE: RSPP) was started as Buy with a $33.00 price target (versus a $26.96 close) at Canaccord Genuity. South Jersey Industries Inc. (NYSE: SJI) was reiterated as Buy with a $30 fair value estimate (versus a $24.44 close) at Janney Capital Markets. TripAdvisor Inc. (NASDAQ: TRIP) was maintained as Neutral with a $68.00 fair value estimate (versus a $77.42 close) at Janney Capital Markets. Vascular Biogenics Ltd. (NASDAQ: VBLT) was started as Overweight with a $14 price target (versus a $5.95 close) at Piper Jaffray. 24/7 Wall St. has also tracked down an analyst montage of recent IPOs that could still have big potential upside. Also, is the Hewlett-Packard breakup now a bargain? ALSO READ: 5 Big Oil and Gas Stocks Analysts Want You to Buy Now The post Top Analyst Upgrades and Downgrades: Bankrate, FireEye, First Data, Pier 1, Regions, Stratasys, Target, Wal-Mart, ZS Pharma and More appeared first on 24/7 Wall St.. According to a new study by Bankrate: Nearly eight in 10 Americans (77%) are frightened of having their identity stolen, according to a new Bankrate.com (NYSE: RATE) report, including 23% who are very frightened. About half of Americans (46%) have either been a victim of identity theft or know someone who was, up 12 percentage points from 2008. One in five Americans is not at all worried about having their identity stolen. 30-49 year-olds are the most nervous about identity theft, while millennials (18-29 year-olds) are the least concerned. Many Americans aren’t taking the necessary precautions to protect themselves from identity theft. 42% don’t check their credit reports regularly and 41% conduct banking and other sensitive business on unsecured Wi-Fi networks that do not require a password. Some of the worry is that none of the companies that are supposed to protect personal records or keep personal computers and other devices secure do a very good job. ALSO READ: Data Breaches Top 600 to Date in 2015 The problem, at least as it is described in the press and by software executives, is that the Chinese military and teenage hackers can stay ahead of security efforts meant to thwart them. According to the Belfast Telegraph, even the FBI has been hacked by a teenager: An intelligent and fame-hungry teenage hacker who crashed FBI and Home Office websites has avoided jail Charlton Floate’s actions cost the Government £15,000 and temporarily halted the reporting of internet crime in the US during targeted attacks masterminded from his family home in Solihull, West Midlands. A judge said Floate played the “central role” in planning, recruiting for and launching damaging cyber assaults and “craving recognition” then boasted online of his success. The 19-year-old self-styled internet and online marketing guru had previously admitted three charges under the Computer Misuse Act and two of possessing prohibited images. And Ireland is a U.S. ally. ALSO READ: 4 Tech Stocks That Could Trade Much Higher on Solid IT Spending The post Tens of Millions of Americans Terrified About ID Theft appeared first on 24/7 Wall St.. These are this Monday’s top analyst upgrades, downgrades, and initiations. Alcoa Inc. (NYSE: AA) was downgraded to Neutral from Buy with a $12 price target (versus $11.93 close) at Sterne Agee. Alcoa’s consensus price target is $16.91 and its 52-week range is $11.85 to $17.75. FireEye, Inc. (NASDAQ: FEYE) was downgraded to Neutral from Buy at UBS. FireEye has a consensus price target of $50.33 and a 52-week range of $24.81 to $55.33. MetLife, Inc. (NYSE: MET) was raised to Outperform from Sector Perform with a price target of $68.00 (versus $56.23 close) at RBC Capital Markets. MetLife has a consensus target price of $58.67 and a 52-week range of $46.10 to $57.57. Micron Technology Inc. (NASDAQ: MU) was started as Outperform with a price target of $34.00 at Cowen & Co. Micron was also downgraded to Sell from Neutral at Goldman Sachs, and the price target is now $19.00 from $27.00. Micron’s consensus price target was $36.42, and this followed one upgrade and one downgrade last week. Micron’s 52-week range is $23.70 to $36.59. Symantec Corp. (NASDAQ: SYMC) was downgraded to Sell from Neutral at UBS. This is ahead of Symantec’s split. Symantec has a consensus price target of $25.64 and a 52-week range of $21.66 to $27.32. ALSO READ: 5 Analyst Stocks Called to Rise 50% to 100% Other key analyst upgrades and downgrades seen this Monday were as follows: AGCO Corporation (NYSE: AGCO) was raised to Neutral from Underweight with a $55.00 price target (versus $52.68 close) at JPMorgan. Akebia Therapeutics, Inc. (NASDAQ: AKBA) was started as Market Outperform with a price target of $24.00 (versus $7.99 close) at JMP Securities. Amicus Therapeutics, Inc. (NASDAQ: FOLD) was started as Buy with a $16.00 fair value estimate (raised from $15.00 and versus $13.49 close) at Janney Capital Markets. The firm says that Amicus is set to emerge in orphan diseases. Bankrate, Inc. (NYSE: RATE) had a bad week after falling to $11.19 after being at almost $14.00. Now Needham & Co. is starting it as Buy with a $14.00 price target. The consensus price target is $12.90, and Bankrate’s 52-week range is $9.39 to $18.19. Carnival Corporation (NYSE: CCL) was raised to Buy from Hold at Deutsche Bank. ALSO READ: 4 Cheap Tech Stocks With Huge Upside Calls Eastman Chemical Co. (NYSE: EMN) was raised to Buy from Neutral with a price target of $98.00 (versus $80.48 close) at Nomura. Ignyta, Inc. (NASDAQ: RXDX) was started as Overweight with a $34 price target (versus $16.73 close) at Piper Jaffray. Marsh & McLennan (NYSE: MMC) was downgraded to Neutral from Buy at Goldman Sachs. Nova Measuring Instruments Ltd. (NASDAQ: NVMI) was raised to Buy from Hold with a $17.00 price target (versus $12.89 close) at Canaccord Genuity. OncoSec Medical Incorporated (NASDAQ: ONCS) was started as Buy with a price target of $25.00 (versus $6.96 close) at H.C. Wainwright & Co. OncoSec has a 52-week range of $4.00 to $13.20 and a tiny market cap of $103 million. Polycom, Inc. (NASDAQ: PLCM) was downgraded to Underperform from Market Perform at William Blair. Progressive Corp. (NYSE: PGR) was raised to Outperform from Market Perform with a $31.00 price target (versus $28.08 close) at Raymond James. Radius Health, Inc. (NASDAQ: RDUS) was downgraded to Hold from Buy at Maxim Group. TerraForm Power Inc. (NASDAQ: TERP) was started as Buy with a price target of $43.00 (versus $37.60 close) at Evercore ISI. WisdomTree Investments, Inc. (NASDAQ: WETF) was downgraded to Market Perform from Outperform with a price target of $25.00 (versus $21.97 close) at Keefe Bruyette & Woods. ALSO READ: 10 Stocks to Own for the Next Decade In case you missed Friday’s top analyst upgrades and downgrades, they were in shares of BioMarin, BP, Micron, Vonage, Finisar, ConEd, Red Hat and over a dozen more companies. The post Top Analyst Upgrades and Downgrades: Alcoa, FireEye, MetLife, Micron, Symantec and More appeared first on 24/7 Wall St.. These are this Thursday’s top analyst upgrades, downgrades and initiations. Bankrate Inc. (NYSE: RATE) was downgraded to Neutral from Buy and the price target was cut to $12 from $18 (versus a $13.85 close) at SunTrust. Bank of America Merrill Lynch reinstated coverage as Underperform (previously Buy) with a $11 price objective. Eli Lilly & Co. (NYSE: LLY) was reiterated as Buy but the price target was raised to $92 from $80 at Argus. The firm talked up positive pipeline developments and noted that this new target generates a more appropriate dividend yield versus peers. Embraer S.A. (NYSE: ERJ) was raised to Outperform from Neutral with a $42.00 price target (versus a $31.61 close) at Cowen. Embraer’s consensus price target is listed as $36.84, and its 52-week trading range is $29.55 to $40.52. The highest analyst price target is $43.00. Oracle Corp. (NYSE: ORCL) saw shares fall 7% or so after earnings. It was maintained as Outperform with a $50 target at Credit Suisse, with the firm noting that Oracle is booking its way to cloud growth while it is lowering estimates. Jefferies maintained its Hold rating and $41.00 price target. Merrill Lynch reiterated its Buy and $48.00 price objective, with the note that its drop is overdone. Southwest Airlines Inc. (NYSE: LUV) was downgraded to Underweight from Overweight with a price target slashed to $39 from $50 (versus a $33.84 close) at Barclays. ALSO READ: 10 Stocks to Own for the Next Decade Additional top analyst upgrades and downgrades were in shares of the following companies this Thursday: Advisory Board Co. (NASDAQ: ABCO) was started as Outperform and with a $65.00 price target (versus a $52.38 close) at Oppenheimer. Alaska Air Group Inc. (NYSE: ALK) was raised to Outperform from Neutral and the price target was raised to $78.00 from $75.00 at Credit Suisse. Allegiant Travel Co. (NASDAQ: ALGT) was raised to Equal Weight from Underweight at Barclays, and the price target was raised to $200 from $167 (versus a $168.06 close). Arch Capital Group Ltd. (NASDAQ: ACGL) was downgraded to Market Perform from Outperform with a $67.00 price target (versus a $66.29 close) at BMO Capital Markets. Cerner Corp. (NASDAQ: CERN) was started as Outperform with a price target of $89.00 (versus a $67.81 close) at Oppenheimer. ALSO READ: 4 Merrill Lynch High Quality and Dividend Yield Stocks to Buy Now CVS Health Corp. (NYSE: CVS) was started as Outperform with a price target of $119.00 (versus a $103.82 close) at Oppenheimer. Digital Ally Inc. (NASDAQ: DGLY) was started as Buy with a price target of $24.00 (versus a $13.56 close) at H.C. Wainwright. Energen Corp. (NYSE: EGN) was raised to Overweight from Sector Weight at KeyBanc Capital Markets. Genuine Parts Co. (NYSE: GPC) was raised to Buy with target of $104 at Argus. The firm sees stronger earnings in all four business segments. Hyatt Hotels (NYSE: H) was started as Buy with a price target of $68.00 (versus a $56.34 close) at Brean Capital. Mylan Inc. (NASDAQ: MYL) was started as Buy with a price target of $85.00 (versus a $71.23 close) at B. Riley. Nimble Storage Inc. (NYSE: NMBL) was downgraded to Hold from Buy at Wunderlich. Senior Housing Properties Trust (NYSE: SNH) was raised to Neutral from Sell but the price target was cut to $18 from $20 (versus a $18.45 close) at UBS. Silver Spring Networks Inc. (NYSE: SSNI) was reiterated as Outperform and the price target was raised to $16.00 from $12.00 (versus a $13.45 close) at Northland Securities. Spirit Airlines Inc. (NYSE: SAVE) was downgraded to Neutral from Outperform with a price target cut to $69.00 from $75.00 (versus a $62.42 close) at Credit Suisse. Webster Financial Corp. (NYSE: WBS) was downgraded to Underweight from Equal Weight with a $36.00 price target (versus a $39.78 close) at Morgan Stanley. ALSO READ: Merrill Lynch’s Top Cybersecurity Stocks to Buy In case you missed out on Wednesday’s top analyst upgrades and downgrades, they were in shares of Arista Networks, Baidu, Chevron, Lexmark International, Occidental Petroleum, Salesforce.com and over a dozen more companies. The post Top Analyst Upgrades and Downgrades: Bankrate, Eli Lilly, Embraer, Oracle, Southwest Air and More appeared first on 24/7 Wall St.. Prepaid debit cards are attractive to consumers who cannot get or do not want either a checking account or a credit/debit card. The cards also appeal to parents who want either to teach their kids financial responsibility or to limit how much their college student offspring spend. Many employers, including Wal-Mart Stores Inc. (NYSE: WMT), McDonald’s Corp. (NYSE: MCD), and Home Depot Inc. (NYSE: HD), either offer or require employees to receive their pay by prepaid card or direct deposit to a bank account instead of receiving a paper check. The companies are saved the cost of issuing paper checks, a significant expense for employers with hundreds of thousands of employees. Payroll cards are reloaded at each pay period. A survey of 31 prepaid cards conducted by Bankrate.com Inc. (NYSE: RATE) revealed wide variation in both the types of fees charged on prepaid cards and the amount of those fees. For example, some 29% of prepaid card issuers do not belong to an ATM network, which means that card holders will pay a fee of $1 to $3 to the card issuer, as well as a separate fee to the bank that owns the automated teller machine, for every cash withdrawal. A single withdrawal from the prepaid card could end up costing $5 or more. ALSO READ: America’s Highest Paying Companies Checking the balance on the card is not free for 39% of the cards surveyed by Bankrate.com. Fees ranged from $0.50 to $1.50 for checking a balance at any ATM. If the card issuer does belong to an ATM network, 42% of those issuers will let customers check balances for free at an in-network machine, but charge the same fee for out-of-network balance checks. More than half — 55% — of card issuers make customers pay $1 to $5.95 for a paper statement. Then there are activation fees that run from $1.88 to $9.95 on 48% of cards. Monthly maintenance fees apply on 75% of the prepaid cards unless customers arrange for a direct deposit to the card. Then there’s the ever-popular “overdraft protection,” wherein the card issuer covers a purchase for which the card does not have sufficient cash then charges the customer a fat fee in addition to the amount lent the next time cash is loaded on the card. The good news is that only two of the 31 cards reviewed by Bankrate.com still offer this “service.” Among what the survey noted as “weird” fees at the margin are these: The Consumer Financial Protection Bureau (CFPB) is currently preparing a rule that would give the agency the power to regulate prepaid cards. ALSO READ: Is Legalized Marijuana Coming to 3 More States? The post Fees for Prepaid Cards Vary Widely — and Wildly appeared first on 24/7 Wall St.. These are this Tuesday’s top analyst upgrades, downgrades and initiations covered by 24/7 Wall St. Arch Coal Inc. (NYSE: ACI) was downgraded to Reduce from Neutral and the price target was cut to $3 from $4 at Nomura. Bankrate Inc. (NYSE: RATE) was downgraded to Sell from Hold at Topeka Capital Markets. BE Aerospace Inc. (NASDAQ: BEAV) was raised to Overweight from Neutral at J.P. Morgan. Coca-Cola Co. (NYSE: KO) was started as Market Perform with a $43 price target at Cowen. DryShips Inc. (NASDAQ: DRYS) was started as Buy with a $5 price target (versus a $2.87 close) at Deutsche Bank in a late-Monday call. Duke Energy Corp. (NYSE: DUK) upgraded to Outperform from Market Perform at Wells Fargo. Heartland Payment Systems Inc. (NYSE: HPY) was started as Buy with a $58 price target at Sterne Agee. READ ALSO: 6 Stocks Being Sold to Pay for Alibaba Stakes Intuit Inc. (NASDAQ: INTU) was started as Outperform at RBC Capital Markets. Laredo Petroleum Inc. (NYSE: LPI) was downgraded to Neutral from Buy at Bank of America Merrill Lynch. MasterCard Inc. (NYSE: MA) was started as Buy and an $85 price target at Sterne Agee, and it was started as Overweight and $91 target at Piper Jaffray. Microsoft Corp. (NASDAQ: MSFT) was started as Outperform from Sector Perform at RBC Capital Markets. Argus maintained its Hold rating. Occidental Petroleum Corp. (NYSE: OXY) downgraded to Equal Weight from Overweight at Barclays. Oracle Corp. (NYSE: ORCL) was started with a Sector Perform rating at RBC Capital Markets. Here is the 24/7 Wall St. earnings preview and review ahead of Thursday’s earnings report. Peabody Energy Corp. (NYSE: BTU) was downgraded to Reduce from Neutral and the price target was cut to $11 from $13 at Nomura. PepsiCo Inc. (NYSE: PEP) was started as Outperform with a $106 price target at Cowen. Scorpio Bulkers Inc. (NYSE: SALT) was started with a Buy rating at Deutsche Bank. Tableau Software Inc. (NYSE: DATA) was raised to Outperform from Neutral by Credit Suisse. Visa Inc. (NYSE: V) was started as Buy with a $265 price target at Sterne Agee. It was also started as Overweight with a $265 price target at Piper Jaffray. READ ALSO: Evaluating SodaStream as Value Versus Growth If you missed Monday’s top analyst upgrades and downgrades, they were in shares of AMC, ADP, Barrick Gold, Cree, Rackspace, Costco, Walmart and more. The post Top Analyst Upgrades and Downgrades: Arch Coal, Coca-Cola, Duke Energy, Microsoft, Oracle, Visa and More appeared first on 24/7 Wall St.. Cree Inc. (NASDAQ: CREE) dropped about 4.7% on Monday to post a new 52-week low of $40.66. Share volume is about 40% above the daily average of around 1.7 million. The stock’s 52-week high is $75.98. The company downgraded to Neutral from Buy and the price target was cut to $48 from $60 at Goldman Sachs. Herbalife Ltd. (NYSE: HLF) sank to a new 52-week low on Monday of $45.12. Based on Friday night’s closing price of $46.03 that’s a drop of about 2%. The stock’s 52-week high is $83.51.The company had no news today but nemesis Bill Ackman announced this morning that Pershing Square will raise $2 billion for a new fund that will trade publicly in Amsterdam and will have a market cap of at least $5 billion after an IPO now scheduled for next month. Trading volume for Herbalife was about 50% below the daily average of around 2.5 million shares. Bankrate Inc. (NYSE: RATE) dropped nearly 23% today to post a new 52-week low of $10.66. Share volume was more than 4-times higher than the average daily volume of around 700,000 shares. The stock’s 52-week high is $23.14. The financial website appointed an interim CFO this morning to replace the current CFO who will remain with the company as a senior vice-president. The company also said that the SEC is investigating its financial reporting for 2012. Terex Corp. (NYSE: TEX) dropped about 7.8% today to post a new 52-week low of $32.00. Volume is roughly 3.5-times higher than the daily average of around 1.9 million shares. The construction and heavy equipment maker lowered profit guidance Monday morning. The stock’s 52-week high is $45.46. ALSO READ: The 10 Most Affordable Housing Markets in America The post The 52-Week Low Club for Monday appeared first on 24/7 Wall St.. A new research report from the Internet team at RBC indicates that current expectations for the smaller Internet stocks in their coverage universe are biased toward the positive side going into the earnings for the quarter. The group has outperformed the S&P 500, rising anywhere from 8% to 10% versus the index gain of 4%. We screened the RBC report for the three top picks, and for additional Internet stocks with the least amount of risk from second quarter earnings expectations. Zulily Inc. (NASDAQ: ZU) is one of the top three picks from the RBC team. They believe that the recent stock underperformance creates a very attractive entry point for investors and continued expansion beyond core children’s apparel segment implies proven value to vendor partners. Their survey results highlight the company’s leadership position as a flash-sales website with high customer satisfaction with price, customer selection and discovery viewed as company’s best features. The RBC price target for Zulily stock, which is rated Outperform, is $50. The Thomson/First Call consensus price target is at $48.86. The stock closed Tuesday at $37.42 a share. SEE ALSO: Credit Suisse’s Top Mid-Cap Stocks to Buy for Rest of 2014 Shutterstock Inc. (NYSE: SSTK) is one of the stocks RBC believes holds less risk in front of earnings and is a top pick. The company is the undisputed leader for online commercial digital imagery. It is the “you name it, we have it” one-stop shop for any commercial or personal image or video need. The company offers its products for users to enhance their visual communications, such as websites, digital and print marketing materials, corporate communications, books, publications and video content. The RBC team is impressed with the company’s ability to take advantage of what they see is a secular movement of imagery and photography online. With the additions of added salesforce, new products, expansion and acquisitions all designed to help growth, and partnerships with Facebook and Salesforce.com, the stock could be poised for big growth. The stock is rated Outperform, and the RBC price objective is a big $90. The consensus target is $89.20. Shares closed Tuesday at $76.11. Bankrate Inc. (NYSE: RATE) has underperformed despite fundamentals the RBC analysts see as coming around. One overhang has been the departure of the company’s CEO, which should fade with time. The new products and offering from the company, which include Mobile, MyBankRate, Data analytics and Car
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Restoration Hardware Holdings Inc. (NYSE: RH) was up 1.3% at $51.92 before earnings guidance, but shares were last seen down 23% at $40.00 or so versus a pre-news analyst target of $95.56. Restoration Hardware was downgraded to Sector Weight from Overweight at Keybanc Capital Markets. R.W. Baird downgraded it to Neutral from Outperform with a $52 target.
Americans are having their personal records stolen at retailers, banks and even game consoles to which they have given name, rank and serial numbers. They also have seen hackers from North Korea and China hack government data. Is it any wonder that 77% (in theory that is tens of millions of people) of Americans worry about identity theft? And why not?
Stocks were indicated higher on Monday morning on hopes that Greece may get a deal done. The one trend which has remained constant over the last three and a half years has been that investors want to buy every single pullback. 24/7 Wall St. reviews dozens of analyst and brokerage research reports each morning of the week to find value and upside or new trading and investing ideas for our readers. Some analyst calls cover stocks to buy, and other analyst calls are about stocks to sell or stocks to avoid.
Stocks were higher on Thursday morning as investors start to move past Greece and think about a Federal Reserve that still looks somewhat dovish. The one path that keeps emerging is that investors find different reasons to buy every single market pullback. 24/7 Wall St. reviews dozens of analyst and brokerage research reports each morning to find new trading and investing ideas for its readers. Some of these analyst calls cover stocks to buy, while others are about stocks to sell or avoid.
From a total of 10 million prepaid debit and payroll cards in use in 2010, an estimated total of 25.6 million such cards are expected to be in consumers’ hands in 2015. The amount of dollars loaded onto the cards is expected to rise from $56.6 billion in 2010 to an estimated $149.1 billion this year.
Stocks were soft on Tuesday after mixed fanfare on Monday. Investors are still looking for opportunities now that some stocks have pulled back. 24/7 Wall St. reviews dozens of analyst research reports each morning to find new investment and trading ideas for its readers. Some research reports feature stocks to buy, but others cover stocks to sell or to avoid.
September 15, 2014: The following stocks are among the 133 equities making new 52-week lows today:
When most investors think of Internet stocks, the first ones that usually come to mind are the industry giants like Google, Yahoo and Facebook. The reality is there is a world of top Internet stocks that, while they lack mega-cap status, are extremely successful at making money and could always end up as a target for the big boys.
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Pre-Market Stock Futures:
Futures are trading higher as we get ready to start another action-packed week of second-quarter earnings results. This comes after a volatile week of trading and a Friday close that saw all major indices finish lower. Ongoing rotation out of semiconductor stocks, worries over an escalation of the war with Iran, a rekindling of inflation concerns, and the possibility of an interest rate increase at some point this year all weighed on investors. When the final bell rang, the Nasdaq once again was the big loser, closing down 1.40% at 25,520, while the S&P 500 finished the week lower by 1.01% on Friday at 7,457. The Dow Jones Industrial closed at 52,146, down 0.77% on the day, while the small-cap Russell 2000 closed at 2,962, down 0.42%.
Treasury Bonds:
Yields were mixed across the Treasury curve on Friday, with buyers targeting the belly and long-end, while sellers sold off the shorter maturities. The 30-year-long bond finished the session at 5.07%, while the benchmark 10-year note closed at 4.55%. Traders cited the tech sell-off, geopolitical worries, and the strong June import prices report as factors on Friday.
Oil and Gas:
The song remains the same for the energy complex, as buyers once again bid up the prices of the two oil benchmarks. Concerns over supply disruption as the war escalates, drone strikes on regional infrastructure suspending crude loadings at Iraq’s Basra terminal, and the increase in the geopolitical premium are all among the tailwinds for the buyers on Friday. When the final bell rang, Brent Crude finished the day at $88.12, up 4.62%, while West Texas Intermediate was last seen at $82.47, higher by 4.46%. Natural gas closed Friday at $2.92, up 2.20%.
Gold:
After a very difficult week for the precious metals complex, investors received a strong finish on Friday. Traders cited softer consumer sentiment readings and a weaker dollar as reasons for the uptick. Gold closed trading at $4,017, up 1.05%, while Silver ended the day at $55.84, up 0.78%.
Crypto:
24/7 Wall St. reviews dozens of analyst research reports every day to identify fresh investment ideas for investors and traders alike. These daily analyst notes include recommendations on stocks to buy, sell, or avoid, as well as new coverage initiations. Important reminder: No single analyst report should ever be the sole basis for buying or selling a stock.
Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Monday, July 20, 2026.
Upgrades:
- Fervo Energy (NASDAQ: FRVO) was upgraded to Buy from Hold at Jefferies, which trimmed the target price for the stock to $36 from $41. This company was a recent IPO.
- Lumentum Holdings (NASDAQ: LITE) was upgraded to Overweight from Equal Weight at Barclays, with a $1,000 target price objective.
- Netflix (NASDAQ: NFLX) was upgraded to Buy from Accumulate at Phillip Securities, with a $110 target price.
- Urban Outfitters (NASDAQ: URBN) was raised to Buy from Neutral at Goldman Sachs, which raised the target price to $93 from $76.
- Yeti Holdings (NYSE: YETI) was upgraded to Buy from Neutral at Goldman Sachs, which lifted the target price for the shares to $63 from $46.
Downgrades:
- Birkenstock Holdings (NYSE: BIRK) was downgraded to Neutral from Buy at Seaport Research, without a target price.
- Charles Schwab (NYSE: SCHW) was downgraded to Market Perform from Outperform at BMO Capital, with an unchanged $105 target price.
- HubSpot (NYSE: HUBS) was downgraded to Equal Weight from Overweight at Wells Fargo, which slashed the target price for the stock to $225 from $300.
- Monster Beverage (NASDAQ: MNST) was cut to Hold from Buy at Deutsche Bank, which bumped the price target for the energy drink giant to $98 from $94.
- Truist Financial (NYSE: TFC) was downgraded to Underweight from Neutral at JPMorgan, which trimmed the target price for the shares to $53 from $53.50.
Initiations:
- BP (NYSE: BP) was started with an Outperform rating at Mizuho, with a $51 target price.
- Honeywell Aerospace (NASDAQ: HONA) was initiated with a Neutral rating at UBS, with a $231 target price for the shares.
- Microsoft Corporation (NASDAQ: MSFT) was initiated with an Outperform rating at CLSA, with a $535 target price.
- Oracle (NYSE: ORCL) was started with a Hold rating at CLSA, with a $145 target price.
- ServiceNow (NYSE: NOW) was initiated with an Underperform rating at CLSA, with a $72 target price.
The post Here Are Monday’s Top Wall Street Analyst Research Calls: BP, Charles Schwab, Fervo Energy, HubSpot, Lumentum, Microsoft, Netflix, Oracle, ServiceNow, Yeti Holdings, and More appeared first on 24/7 Wall St..
]]>Gap (NYSE: GAP) and Urban Outfitters (NASDAQ: URBN) stocks have both pulled back from recent highs, but only one deserves a retirement investor’s capital right now. Here is the direct comparison across three dimensions that matter most for income-seeking, lower-risk buyers.
Yield and Income: Gap Wins Decisively
Gap pays a dividend. Urban Outfitters does not. That alone ends the income debate. Gap’s annualized dividend of $0.70 per share offers a 2.8% yield at current prices. Management recently raised the quarterly payout by about 6%, and it authorized a new $1 billion share buyback in March 2026. Because Urban Outfitters carries no dividend and no dividend yield, Gap is the clear choice for a retirement portfolio built around income.
Valuation: Urban Outfitters Wins on Quality, Gap Wins on Price
Both stocks trade at modest multiples, but the composition differs. Gap trades at a trailing P/E of 12x with a forward multiple of 11x, a price-to-sales ratio of 0.6, and an EV/EBITDA of 6.7x. Urban Outfitters trades at a trailing P/E of 13x and a forward P/E of 12x, but with a higher operating margin of 8.8% versus Gap’s 7.3%. It also posts a profit margin of 7.5% compared to Gap’s 5.3%, with diluted EPS of $5.15 versus Gap’s $2.13. Earning more per dollar of revenue makes Urban Outfitters the better-quality business at a comparable price.
Earnings Momentum: Gap Wins
Gap beat EPS estimates in all four quarters of fiscal year 2026, with Q4’s 18.42% positive surprise being the strongest. The company has delivered eight consecutive quarters of positive comparable sales, with Q4 comps up 3% and online sales rising 5% to represent 42% of total net sales. Urban Outfitters, by contrast, just posted a significant miss in its most recent quarter, reporting $1.05 against a $1.26 estimate, a 16.7% miss in Q1 FY2026. That reverses a four-quarter streak of beats, including a 39.8% positive surprise in Q2 FY2025. Momentum clearly favors Gap right now.
Volatility: Urban Outfitters Wins
Gap carries a beta of 2.245, more than double the market’s volatility. Urban Outfitters runs a beta of 1.204, far more manageable for retirees who cannot afford large drawdowns. Gap’s five-year price return is −19.0%, while Urban Outfitters has returned 78.1% over the same period. The 10-year picture reinforces this: Urban Outfitters is up 124.1% over a decade versus Gap’s 6.6%. Urban Outfitters is the steadier compounder over time.
The Verdict
The answer depends entirely on what “retirement investor” means in practice. For an investor drawing income and needing yield, Gap is the only viable choice. Its dividend, buyback program, consistent earnings beats, and dirt-cheap valuation at 0.6x sales make it a defensible income holding, with analyst consensus pointing to a target of $30.65 against a current price of $25.43. The tariff headwind (200 basis points of gross margin pressure in Q1) is a real near-term risk, but the income case holds.
For a growth-oriented retirement account focused on total return, Urban Outfitters wins. Better margins, superior long-term price appreciation, lower beta, and a higher-quality earnings profile make it the stronger compounder. The recent earnings miss creates the dip. Analysts carry a target of $83.67 against a current price of $68.22. Analysts carry a target of $83.67, against a current price of $68.22, representing potential upside for investors who do not need the dividend check today.
The post Gap or Urban Outfitters: Which Retail Stock Wins for Income Investors in 2026? appeared first on 24/7 Wall St..
]]>Urban Outfitters (NASDAQ: URBN) posted a strong finish to fiscal year 2026, with record fourth-quarter revenue and operating profits that exceeded analyst expectations, sending shares higher in after-hours trading.
Urban Outfitters reported Q4 revenue of $1.80 billion, narrowly topping the FactSet consensus of $1.79 billion and rising 10.1% year over year. Diluted EPS came in at $1.05, though that trailed the consensus estimate of $1.24. Adjusted net income grew 33% to $130.5 million. For the full fiscal year, revenue reached $6.17 billion, up 11.1% and a company record.
The standout story was the namesake Urban Outfitters brand, which delivered +9.6% comparable store sales after years of underperformance. The retail segment overall posted +5.5% comparable sales, a record, with all brands contributing positively. The Nuuly subscription business also outperformed, reaching 420,000 subscribers, up 40% year over year, generating $568 million in annual sales and $35 million in profit.
Shares rose roughly 3% in late trading after the report, though the stock remains down 13% year to date. The analyst consensus sits at “Hold” with an average price target of $84.00, compared to current levels near $65.46. Management flagged tariff exposure and SG&A trajectory as headwinds. The next earnings report is expected around March 3.
The post Urban Outfitters Reports Q4 2026 Earnings: What You Need to Know appeared first on 24/7 Wall St..
]]>Editor’s Note: A prior version of this article incorrectly referenced the prior CEO of J.Jill, as well as a quote from them in a 2024 earnings call, without clarifying the year. We have updated the post to correct these issues. Please reach out to contact@flywheelpublishing.com with any additional concerns.
J.Jill (NYSE: JILL) and Urban Outfitters (NASDAQ: URBN) reported third-quarter results revealing two apparel retailers moving in opposite directions. J.Jill’s revenue slipped 0.5% while earnings dropped 25%. Urban Outfitters posted 12.3% revenue growth and earnings jumped 16.4%. Same sector, similar operating margins around 9.6%, but fundamentally different stories.
Full-Price Pressure Hits One. Margin Expansion Lifts the Other.
J.Jill struggled with what prior CEO Claire Spofford, in a Q3 2024 earnings call called “consumer distraction due to world events” that pressured full-price selling. Since then, new CEO Mary Ellen Coyne has stepped in to right the ship and get J. Jill back on track.
Bottoms performed well, driven by a Ponte Pant campaign that provided new styling ideas. That strength offset ongoing softness in dresses. CFO Mark Webb acknowledged: “We have not yet seen the return of the strong full-price customer we saw earlier this year.”
Urban Outfitters delivered the opposite result. Co-President Frank Conforti reported gross profit rate surged over 500 basis points, driven by “significantly improved initial margins as well as lower markdown rates at all brands.” Operating income soared 90% to $109 million. The company hit a record $1.3 billion in quarterly revenue.
Urban’s multi-brand portfolio showed strength across segments. Rental service Nuuly added $30 million in revenue and grew 86% year over year. All three core brands (Urban Outfitters, Anthropologie, Free People) posted retail comps up 6% with improved product margins.
| Metric | JILL | URBN |
| Gross Margin | 70.9% (down 60 bps) | 37.0% (up 500+ bps) |
| Revenue Growth | -0.5% | +12.3% |
| Earnings Growth | -25% | +16.4% |
Single-Brand Focus Versus Portfolio Diversification
J.Jill operates a single brand targeting women over 40. That focus creates vulnerability when the core customer pulls back. The company’s best customer cohort grew, but the overall file contracted.
Urban Outfitters spreads risk across four distinct brands serving different demographics and price points. When one brand softens, others compensate. Nuuly generates recurring subscription revenue and introduces younger customers to the brand portfolio. This diversification delivered resilience during the same quarter that challenged J.Jill.
J.Jill announced a $25 million share repurchase program, its first since going public in 2017. Urban Outfitters maintains significant insider ownership at 33.4%.
Freight Costs Will Ease. Customer Behavior Remains the Question.
J.Jill’s freight headwinds should moderate as Red Sea rerouting costs cycle through inventory. The real test is whether full-price customers return in spring 2025. August was soft, but Spofford noted “nice sequential improvement as we moved deeper into the quarter.”
Urban Outfitters needs to sustain margin gains while maintaining growth momentum. The 500-basis-point margin expansion creates tough comparisons ahead.
Why Urban Outfitters Looks More Compelling Right Now
Urban Outfitters offers more compelling retail exposure today. The portfolio structure provides downside protection that J.Jill’s single-brand model cannot match. Margin expansion at scale is harder to achieve than at smaller operations, making Urban’s 500-basis-point improvement more impressive.
J.Jill trades at a P/E of 6.44 with a 2.2% dividend yield, creating value appeal. Analysts see 27% upside to their $18 target. But that upside depends on the full-price customer returning, and management cannot control that timing. If promotional pressure persists through 2025, the valuation discount may be justified rather than opportunistic.
Urban Outfitters trades near analyst targets with limited upside at current levels, but operational momentum and diversified revenue streams make it the safer bet until J.Jill demonstrates it can reverse the earnings decline.
The post The Single-Brand Apparel Retailer Stumbles as the Multi-Brand Portfolio Giant Surges 90% appeared first on 24/7 Wall St..
]]>Pre-Market Stock Futures:
The futures are trading modestly higher as Thanksgiving Eve has finally arrived. After a slow start on Tuesday, all the major indices began to rally by noon and finished well in the green by the close. The initial downturn was sparked by news that Alphabet Inc. (NASDAQ: GOOG) was in talks with Meta Platforms Inc. (NASDAQ: META) to sell them its custom AI chips. Google’s own specialized chips, called Tensor Processing Units (TPUs), are optimized for AI and machine learning workloads and are typically used in its own data centers. NVIDIA Inc. (NASDAQ: NVDA) was down almost 3% by the close on the news, which started the early selling, and while the rest of the indices recovered, the chip giant finished the day in the red. By the close, the Dow Jones Industrials led the way, up 1.43% to finish the session at 47,012; the S&P 500 closed at 6,765, up 0.91%; and the NASDAQ was last seen at 23,025, up 0.67%.
Treasury Bonds:
For the second day in a row, yields were down across the Treasury curve, and the song remains the same. Hopes for a rate cut, which had fallen to as low as 20% a few weeks ago, have jumped back to 80%, and there is some talk on Wall Street that a January cut could also be in the cards. Benign wholesale inflation data and a weakening job market are all aiding the push for continued rate cuts. Plus, amid speculation that White House National Economic Council Director Kevin Hassett may be the next Chairman of the Federal Reserve, many feel he would aggressively pursue lower interest rates to lower borrowing costs. The 30-year Treasury long bond closed the day at 4.66%, while the benchmark 10-year note closed at 4%.
Oil and Gas:
After a stellar day to start the week, prices across the energy complex were lower across the board. Reports that Ukraine has tacitly accepted terms for an end to the almost four-year war with Russia sent the black gold tumbling. Add in concerns over a supply glut, and that was all it took to bring the big benchmarks and natural gas down. Brent Crude closed at $62.47, down 1.42%, while West Texas Intermediate was last seen at $57.93, down 1.55%. Natural gas was also hit hard, closing at $4.39, down 3.5%
Gold:
Gold rose again on Tuesday as buyers and sellers remained evenly matched throughout the day. Analysts noted that if the U.S. dollar weakens and the Fed does cut rates next month, the year-long rally should continue into 2026. Again, the mild wholesale inflation numbers keep the rate cut scenario front and center. Gold closed the day at $4,130, up almost 1%.
Crypto:
On Tuesday, the crypto market had an early relief rally, with major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) rebounding from recent lows, only for the rally to fade by the afternoon. The upturn was initially driven by improving risk sentiment, an outstanding session in U.S. equities, and some easing of selling pressure, although the longer-term outlook remains cautious. At 4 PM EST, Bitcoin was trading at $87,260, while Ethereum was at $2,935.
24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock.
Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Wednesday, Thanksgiving Eve, November 26, 2025.
Upgrades:
- DHL Group Inc.(OTCPK: DHLGY) was raised to Neutral from Sell at UBS with a U.S. dollar price of $49.20.
- Kymer Therapeutics Inc. (NASDAQ: KYMR) was reiterated with a Buy rating at UBS with a $90 target price.
- NetApp Inc. (NASDAQ: NTAP) Barclays reiterated an Overweight rating on the shares with a $134 target price.
- Nutanix Inc. (NASDAQ: NTNX) Barclays reiterated an Overweight rating on the stock with a $64 target price objective.
- Oracle Corp. (NASDAQ: ORCL) Deutsche Bank reiterated a Buy rating for the stock with a $375 target price.
- Snowflake Inc. (NYSE: SNOW) Citigroup reiterated a Buy rating on the shares and raised the target price to $310 from $275.
- Urban Outfitters Inc. (NASDAQ: URBN) Barclays reiterated an Overweight rating on the company with a $98 target price objective.
- Zscaler Inc. (NASDAQ: ZS) UBS reiterated a Buy rating on the shares and has a $340 target price objective.
Downgrades:
- Biohaven Inc. (NYSE: BHVN) was downgraded to Neutral from Buy at UBS with a $11 target price.
- Morgan Stanley Direct Lending Fund (NYSE: MSDL) Royal Bank of Canada downgraded the shares to Sector Perform from Outperform with an $18 target price.
Initiations:
- Ovintiv Inc. (NYSE: OVV) was initiated with an Outperform rating at William Blair with a $50 target price.
The post Here Are Wednesday’s Top Wall Street Analyst Research Calls: DHL Group, NetApp, Nutanix, Oracle, Snowflake, Urban Outfitters, Zscaler and More appeared first on 24/7 Wall St..
]]>The futures were trading lower on Tuesday after a rollercoaster start to the final trading week for September and the third quarter. The major indexes all finished higher on the day. halting a four-day losing streak for the S&P 500 and the Nasdaq. Despite Monday’s gains, the same elements that hit stocks last week are still in play, such as higher interest rates, soaring energy prices, systematic selling from funds, continued dollar strength and, as we have mentioned, stocks are in the worst time of the year from a seasonality standpoint.
Treasury yields were mixed across the curve, as buyers had interest in the shorter maturities and yields soared as sellers arrived for the longer-dated debt. The 10-year note closed the day at a 4.54% yield, the highest since June of 2007, while the 30-year long bond was last seen at 4.67%, the highest since December of 2009. Hedge funds have been reported to still be shorting the long end of the curve.
Brent and West Texas Intermediate crude were flat to modestly higher on Monday after a strong surge higher last week. End of the quarter profit taking will likely be in play this week as futures traders have wracked up some big gains during the past three months. Brent closed the day down 0.08% at $93.34, while WTI was last seen at $89.90, down 0.14%. Natural gas closed lower at $2.63.
After a solid close to the week, gold traded lower on Monday. The December contract finished the day at $1,934.90, down 0.55%. Again, end of the quarter positioning plus the continued dollar strength and higher interest rates have weighed on the precious metal. Bitcoin closed up 0.39% on the day at $26,351.80.
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24/7 Wall St. reviews dozens of analyst research reports each weekday with a goal of finding fresh ideas for investors and traders alike. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. Consensus analyst target data is from Refinitiv.
These are the top analyst upgrades, downgrades and initiations seen on Tuesday, September 26, 2023.
AngioDynamics Inc. (NASDAQ: ANGO): H.C. Wainwright initiated coverage with a Buy rating and a $19 target price. The consensus target is $16.50. The upgrade and positive commentary helped shares close almost 5% higher on Monday at $7.35.
AstraZeneca PLC (NASDAQ: AZN): Jefferies raised its Hold rating to Buy and its $66.50 target price to $80. The consensus target is $81.79. The stock was last seen on Monday trading at $68.81.
Ballard Power Systems Inc. (NASDAQ: BLDP): HSBC Securities initiated coverage with a Hold rating and a $4.50 target price. The consensus target is $6.23. The stock closed at $3.62 on Monday.
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BHP Group Ltd. (NYSE: BHP): When Bernstein downgraded the stock to Market Perform from Outperform, it also trimmed its target price to $58 from $60. The consensus target is $65.69, and Monday’s last trade was for $55.03 a share.
Bloom Energy Corp. (NYSE: BE): HSBC Securities started coverage with a Buy rating and a $22 target price. The consensus target is $25.90. The stock closed on Monday at $13.79.
Brookfield Infrastructure Partners L.P. (NYSE: BIP): Raymond James upgraded the stock to Strong Buy from Outperform. Its $45 target price is higher than the consensus target of$42.33 and Monday’s close at $31.42.
CarMax Inc. (NYSE: KMX): Wedbush raised its Neutral rating to Outperform, and the $85 target price increased to $90. The consensus target is $81.15. The stock closed on Monday at $77.67.
Choice Hotels Inc. (NYSE: CHH): Argus initiated coverage with a Buy rating and a $145 target pierce. The consensus target is $129. The stock closed on Monday at $121.35.
Cleveland-Cliffs Inc. (NYSE: CLF): Citigroup’s upgrade was from Neutral to Buy with a $22 target price. That compares with an $18.77 consensus target and Monday’s closing print of $14.87, which was almost 3% higher on the day, after the upgrade.
CrowdStrike Holdings Inc. (NASDAQ: CRWD): Goldman Sachs reiterated a Buy rating and raised its target price to $195 from $175. The consensus target is $194.73. Monday’s close was at $159.05.
Dow Inc. (NYSE: DOW): J.P. Morgan upgraded the stock to Overweight from Neutral, but its $55 target price is shy of the consensus target of $55.58. Monday’s closing share price was $50.97.
FMC Corp. (NYSE: FMC): Redburn Atlantic downgraded the stock to Neutral from Overweight and has a $71 target price. The consensus target is $111.31. The last trade on Monday was for $67.49 a share.
Golar LNG Ltd. (NASDAQ: GLNG): Citigroup resumed coverage with a Neutral rating, and the analyst set a $27 target price. The consensus target is $32.50, and the final trade on Monday was reported at $23.42.
Nike Inc. (NYSE: NKE): The Buy rating at Jefferies has dropped to Hold, and the firm slashed the target price from $140 to $100. The consensus target is $115.45. Monday’s close was at $90.59.
Pioneer Natural Resources Co. (NYSE: PXD): Its Bull of the Day stock has seen earnings estimates on the rise again, says Zacks. Shares of the oil and gas exploration and production company last closed at $225.54, and the consensus price target is $261.54.
Plains All-American Pipeline L.P. (NYSE: PAA): Barclays downgraded the shares from Equal Weight to Underweight with a $15 target price. The consensus target is $16.94. On Monday, shares closed at $15.59.
Quanterix Inc. (NASDAQ: QTRX): Canaccord Genuity upgraded the stock to Buy from Hold and lifted the target price to $32 from $25. The consensus target is $28.25. The stock closed 4% higher on Monday at $25.87 after the upgrade.
Sealed Air Corp. (NYSE: SEE): Citigroup upgraded the stock to Buy from Neutral, but its $41 target price is less than the consensus target of $45.55. The stock ended Monday trading at $32.87, almost a 4% gain for the day, after the upgrade.
Steel Dynamics Inc. (NASDAQ: STLD): Citigroup’s upgrade was from Neutral to Buy with a $130 target. That compares with the lower $108.13 consensus and Monday’s closing trade of $105.01, which was higher by almost 4% on the upgrade.
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Tech Target Inc. (NASDAQ: TTGT): UBS started coverage with a Neutral rating and a $31 target price. The consensus target is set at $33.75. The shares closed on Monday at $26.67.
Urban Outfitters Inc. (NASDAQ: URBN): As Jefferies downgraded it to Hold from Buy, the $40 target price dropped to $31. The consensus target is $38.82, while Monday’s close was at $31.39.
Warby Parker Inc. (NYSE: WRBY): UBS started coverage with a Neutral rating and has a $13 target. The consensus target is $16. The shares were last seen on Monday trading at $12.22.
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With the possibility for more downside now very strong, investors looking for safety may want to consider seven stocks from the Berkshire Hathaway portfolio with among the largest dividends.
Twenty-five American industries are thriving, and see the 13 biggest mistakes in retirement planning.
Monday’s top analyst upgrades and downgrades included Aramark, Arm, Costco Wholesale, Deere, GoDaddy, Home Depot, Intercontinental Exchange, Payoneer Global, Walmart, Wayfair and Yum China.
The post Tuesday’s Top Wall Street Analyst Upgrades and Downgrades: AstraZeneca, Bloom Energy, Cleveland-Cliffs, CrowdStrike, Dow, Nike, Urban Outfitters and More appeared first on 24/7 Wall St..
]]>The futures mostly traded higher Thursday, after a solid bounce-back day for the stock market, as all the major indexes finished the day higher. The catalyst for Wednesday’s rally and Thursday’s potential strong risk-on day was solid earnings from Nvidia and very solid forward guidance from the company. While the boost from the AI chip giant was very welcome, the market strength may run into a brick wall when Federal Reserve Chair Powell gives his annual speech at the Jackson Hole Symposium, where he is expected to remain vigilant on containing and lowering inflation.
Treasury yields plummeted by double digits in some cases Wednesday, as some of the highest yields in years had buyers clamoring to own the safe-haven government debt. The 10-year note yields dropped 14 basis points to close at 4.19%, with the shorter two-year paper last seen yielding 4.97%. The ongoing inversion still suggests recession at some point.
Brent and West Texas Intermediate crude both finished the day lower, at $82.99 and $78.61, respectively. That was well off the lows of the day after the Energy Information Administration reported a 6.1 million barrel inventory draw for the week to August 18. In addition, reports indicated that the Saudis will extend their production cut through October. Natural gas closed lower at $2.48, down 3% on the day.
Gold was a big winner on the day/ The December futures contract for the precious metal closed up 1.05% at $1,946.20. Traders and analysts cited the big jump in new home sales as a positive. Sales rose 4.4% last month against estimates for a 1.6% drop, coming in at a seasonally adjusted annualized rate of 714,000 homes, their highest level since February 2022. Bitcoin also rallied to close a stunning 2.05% higher at $26,577.20. The cryptocurrency giant had closed lower in 10 of the past 11 trading sessions before Wednesday’s rally.
[nativounit]
24/7 Wall St. reviews dozens of analyst research reports each weekday with a goal of finding fresh ideas for investors and traders alike. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. Consensus analyst target data is from Refinitiv.
These are the top Wall Street analyst upgrades, downgrades and initiations seen on Thursday, August 24, 2023.
Amazon.com Inc. (NASDAQ: AMZN): Loop Capital reiterated a Buy rating on the shares and lifted its $180 target price to $200. The consensus target is just $169.29, and the shares closed trading on Wednesday at $135.18 apiece.
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American Electric Power Co. Inc. (NASDAQ: AEP): Barclays started coverage with an Overweight rating, though its $88 price target is less than the consensus target of $96.83. Wednesday’s final trade was for $79.36 a share.
Amgen Inc (NASDAQ: AMGN): Oppenheimer reiterated an Outperform rating with a $280 target price. The consensus target is lower at $255.15 and below Wednesday’s $257.52 closing share price.
Andersons Inc. (NASDAQ: ANDE): Zacks says that agribusiness is picking up again and it selected this stock as its Bull of the Day. The shares last closed at $51.40, and the $61.67 consensus price target would be a multiyear high.
Avery Dennison Corp. (NYSE: AVY): BofA Securities raised its Neutral rating to Buy and its $184 price target to $220. The consensus target is $199.91. Wednesday’s close was at $181.29.
Beazer Homes USA Inc. (NYSE: BZH): Sidoti upgraded the stock to Buy from Neutral. Its $36 target price compares with a $35.33 consensus target. Wednesday’s closing print of $29.48 was up almost 5% after the upgrade.
BHP Group Ltd. (NYSE: BHP): Jefferies reiterated a Buy rating with a $68 target price. The consensus target is $64.13, and Wednesday’s last trade was for $57.03 a share.
Brown-Forman Corp. (NYSE: BF-B): Morgan Stanley’s upgrade to Overweight from Underweight included a price target hike to $75 from $66. The consensus target is $69.06. The stock closed almost 4% higher on Wednesday at $69.20 after the upgrade.
Dick’s Sporting Goods Inc. (NYSE: DKS): Wedbush downgraded the stock to Neutral from Outperform. The analyst also slashed the $155 target price to $115, well below the consensus target of $149.65. On Wednesday, the shares closed at $110.36.
Duke Energy Corp. (NYSE: DUK): Barclays started coverage with an Overweight rating and a $96 target price. The consensus target is up at $102.13. Wednesday’s close was at $90.23.
General Mills Inc. (NYSE: GIS): BofA Securities reiterated a Neutral rating but cut its target price to $72 from $82. The consensus target is $80.29. Wednesday’s closing share price was $67.99.
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KeyCorp (NYSE: KEY): Zacks named this as its Bear of the Day stock as analysts are cutting earnings estimates on the banks again. The shares have traded as high as $20.30 in the past year but closed most recently at $10.75. That is down almost 42% in the past six months.
Lowe’s Companies Inc. (NYSE: LOW): Telsey Advisory reiterated a Market Perform rating and nudged its $225 target price to $230. The consensus target is $241.28. The stock closed on Wednesday at $226.25.
Macy’s Inc. (NYSE: M): When Telsey Advisory reiterated a Market Perform rating, it trimmed its target price to $14 from $16. The consensus target is $16.33, and shares closed at $12.49 on Wednesday.
Marvell Technology Inc. (NASDAQ: MRVL): Susquehanna reiterated a Positive rating and lifted its $60 target price to $70. The consensus target is $70.28. The stock closed almost 3% higher on Wednesday at $61.28.
Netflix Inc. (NASDAQ: NFLX): Oppenheimer reiterated its Outperform rating. The firm’s $515 target price is well above the consensus target of $457.56 and Wednesday’s close at $429.34.
Premier Inc. (NASDAQ: PINC): As Piper Sandler downgraded the stock to Neutral from Overweight, its $44 target price dropped to $25. The consensus target is $35.80, and Wednesday’s close was at $27.16.
Safehold Inc. (NYSE: SAFE): Goldman Sachs initiated coverage with a Buy rating and a $25 target price. The consensus target is $35.34. The shares ended Wednesday trading at $20.67.
Southern Co. (NYSE: SO): Barclays started coverage with an Equal Weight rating and a $68 price target. The consensus target is $33.61. Wednesday’s close was at $14.01.
SunRun Inc. (NASDAQ: RUN): Oppenheimer reiterated an Outperform rating with a $46 target price. The consensus target is $33.61, and Wednesday’s close was at $14.00.
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Super Micro Computer Inc. (NASDAQ: SMCI): Wedbush upgraded the shares from Underperform to Neutral with a $250 target price. The consensus target is up at $349.86. Wednesday’s $279.98 close was up almost 9% on the day.
Urban Outfitters Inc. (NASDAQ: URBN): Telsey Advisory reiterated an Outperform Perform rating and bumped its $40 target price to $41. The consensus target is $36.31. The stock closed at $34.74 on Wednesday.
Walmart Inc. (NYSE: WMT): Jefferies reiterated a Buy rating with a $190 target price. That compares with a lower $177.64 consensus target and Wednesday’s closing print of $157.96.
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For aggressive growth investors with plenty of risk tolerance, the time to buy five top stocks from Cathie Wood’s ARK Innovation ETF may be now, as they could see stellar growth in the coming years despite some wild price swings.
See which famous billionaires lost everything and 25 of the ugliest cars ever made.
Wednesday’s top analyst upgrades and downgrades included Alibaba, Alphabet, Amazon.com, AppLovin, Cognizant Technology Solutions, Emerson Electric, Meta Platforms, Pinterest, Sea, Shopify, Target and Trip Advisor.
The post Thursday’s Top Analyst Upgrades and Downgrades: Amazon, Amgen, Duke Energy, General Mills, KeyCorp, Lowe’s, Macy’s, Marvell Technology, Netflix, Walmart and More appeared first on 24/7 Wall St..
]]>After U.S. markets closed on Friday, Palo Alto Networks reported better-than-expected earnings per share (EPS) and revenue that was just barely short of the consensus estimate. Analysts and investors breathed a big sigh of relief and sent shares up by around 16% in early trading on Monday.
There were no earnings reports due out before markets opened Monday morning.
After markets close on Monday and before they open on Tuesday, Baidu, Dick’s Sporting Goods, Lowe’s, Macy’s and Zoom Video are set to report results.
Later on Tuesday, there are two notable earnings reports due.
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Toll Brothers
Shares of homebuilder Toll Brothers Inc. (NYSE: TOL) have soared by nearly 56% over the past 12 months, with nearly all of the gain coming in 2023. Since posting an all-time high a month ago, the stock price has fallen by about 8.4%.
Toll Brothers has beaten earnings estimates in every one of the past 12 quarters, and a subdued estimate for the July quarter has set the bar comfortably for still another beat. What the company has to say about its view of the second half of the year will be the most closely watched part of the earnings release.
Of 20 brokerages covering Toll Brothers, 11 have a Buy or Strong Buy rating and six have rated it at Hold. At a recent share price of around $76.40, the upside potential based on a median price target of $83.50 is 9.3%. At the high price target of $100.00, the upside potential is 30.1%.
When the company reports third-quarter 2023 results, analysts expect to see revenue of $2.4 billion, which would be down 4.4% sequentially and by 3.6% year over year. Adjusted EPS are forecast at $2.87, down 1.9% sequentially but up 22.5% year over year. For the full 2023 fiscal year ending in October, analysts expect EPS of $10.72, down 1.6%, on sales of $9.22 billion, down 10.3%.
Toll Brothers stock trades at 7.1 times expected 2023 EPS, 4.6 times estimated 2024 earnings of $10.07 and 7.9 times estimated 2025 earnings of $9.66 per share. Its 52-week trading range is $39.53 to $83.72. The company pays an annual dividend of $0.84 (yield of 1.1%). Total shareholder return for the past year was 58.16%.
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Urban Outfitters
Specialty retailer Urban Outfitters Inc. (NASDAQ: URBN) has seen its share price surge by more than 55% over the past 12 months. The stock rose to a new 52-week high last week but has pulled back by about 5.7% since then on weak expectations for most retail stocks in the months ahead. Citigroup cut its rating on the stock from Buy to Neutral last week but raised its price target from $36 to $40, a signal that investor enthusiasm for the stock may have peaked.
Analysts are cautious on the stock, with 8 of 14 having Hold ratings and another five rating it at Buy or Strong Buy. At a share price of around $35.70, the implied upside based on a median price target of $39.00 is 9.2%. At the high target of $45.00, th