Tag Archives: BB

Top Oil Stocks To Buy For 2019

Small-cap stocks can deliver explosive gains — or sizable losses. Choose well, and these high-risk yet potentially high-reward stocks can deliver multibagger returns and turbocharge your portfolio’s overall performance. But choose poorly, and a small-cap stock can produce painful losses, up to and including a complete loss of capital should the business be forced into bankruptcy.

That’s why it’s so important to invest in only the strongest of these companies — those that possess the best business models and enjoy the largest growth opportunities. In this regard, here’s one of the most intriguing small-cap stocks available in the market today.

Increasingly large stacks of gold coins, with green plants growing on them

Top Oil Stocks To Buy For 2019: Express-1 Expedited Solutions Inc.(XPO)

One way to give your business a competitive edge is to make your services indispensable to your customers. XPO Logistics is creating an aura of invincibility for itself by making its logistics and transportation services a critical component of the survival of its retail customers.

XPO recently launched XPO Direct, a service that will put small and medium-sized businesses — and even large ones — on an equal footing with the retail giants. One of the advantages Walmart and Amazon.com have over their rivals is scale. Their far-flung operations allow them to be within hours of their customers, meaning they can deliver products to a customer’s doorstep almost without thinking.

XPO Logistics is leveling the playing field by allowing retailers to use its warehouses, trucks, and logistics services to gain a comparable reach. If a retailer had to build out its own network of stores and distribution centers, the cost would likely be more than it’s worth as the capital expenditures would result in higher prices. By sharing its facilities and capabilities, XPO becomes essential to the retailer’s survival in the hyper-competitive environment.

That’s but one service XPO Logistics has launched and is building on its record of growth. Analysts expect the global intermodal freight transportation market to grow at a compounded annual rate of 16.4% through 2019, hitting $26.2 billion. XPO’s first-quarter revenue surged over 18%, with organic growth in the last-mile segment hitting 15%.

At 24 times Wall Street’s expected earnings for 2018, XPO Logistics might appear pricey, but it is the industry leader. Considering it trades at only 15 times the free cash flow it produces, while not a bargain-basement stock, it’s attractively valued and could be considered as a long-term holding in any portfolio.

Top Oil Stocks To Buy For 2019: BlackBerry Limited(BB)

BlackBerry controlled about a fifth of the world’s smartphone market in 2009. But it eventually lost the entire market to iPhones and Android devices. By the time John Chen became BlackBerry’s CEO in 2013, it controlled less than 1% of the market

Rather than attempt a comeback in smartphones, Chen expanded BlackBerry’s enterprise software, services, and licensing businesses. Its core growth engine became BlackBerry Enterprise Service (BES), which lets companies secure and monitor their employees’ mobile devices.

In 2016, BlackBerry stopped manufacturing its own smartphones, and licensed its brand to Chinese smartphone maker TCL, which created a new subsidiary called BlackBerry Mobile. TCL pays BlackBerry licensing fees, a high-margin revenue stream that complements its software and services revenues.

Last year, BlackBerry’s software and services revenue (which includes its licensing fees) rose 20% and accounted for 80% of its top line. Unfortunately, that growth was offset by its declining handset sales and service access fees, and BlackBerry’s total revenue slid 29%. But as its handset and service access revenue drops toward zero, the growth of its software and services should gradually offset those losses.

Wall Street expects BlackBerry’s revenue to fall just 8% this year, and rebound 10% next year. Its earnings are also expected to grow again as its revenue rises. BlackBerry’s growth and valuations look messy now, but I think investors could warm up to this humbled tech giant again over the next decade — and its stock could eventually double.

Top Oil Stocks To Buy For 2019: Domtar Corporation(UFS)

Domtar Corp (NYSE:UFS) manufactures and distributes a wide array of fiber-based products including communication papers, specialty and packaging papers and adult incontinence products. Domtar also owns and operates an extensive network of strategically located paper and printing supplies distribution facilities. The stock currently has a Zacks Rank #1 and a Value Score of B. It has a 3–5 year EPS growth rate of 5%.

Top Oil Stocks To Buy For 2019: Altria Group(MO)

Owning a tobacco stock may not be right for everyone, but government regulation has effectively closed the U.S. market to new competition. Which has provided Altria and its tobacco brands, including iconic Marlboro, a huge advantage in an industry facing a slow and steady decline. With roughly 50% market share in cigarettes and smokeless tobacco products, Altria has a virtual monopoly in the markets it serves.

Altria has been using its dominant market position to return value to shareholders via stock buybacks and a big dividend (the company targets an 80% of adjusted earnings payout ratio). The hefty 5% yield, however, is backed by 49 years of consecutive annual dividend hikes, so this is no fly by-night company using a fat dividend to lure in investors. How has Altria managed to keep pushing sales results, and dividends, higher? Because of the nature of its products and the lack of new competition Altria has been able to increase the prices it charges over time, more than offsetting the impact from slowly declining demand.   

MO Revenue (Annual) Chart

DATA SOURCE: MO REVENUE (ANNUAL) DATA BY YCHARTS.

Altria is, effectively, a cash cow investment. That said, it isn’t waiting for its business to simply die off (something that will likely take decades to happen, by the way). It is also investing in new technology like vaping and burnless tobacco products (its iQOS line). Investments like these should help to extend the company’s dominant market position as it leverages its leading brand names in new areas.   

If you can’t handle a so-called "sin" stock, don’t buy Altria. But it certainly has a virtual monopoly on U.S. tobacco and is using that to reward investors with big dividends.

Top Oil Stocks To Buy For 2019: Yext, Inc.(YEXT)

Last, but certainly not least, put Yext Inc (NYSE:YEXT) on your list of artificial intelligence stocks worth a look.

The short version of a long story: While many AI developers are proverbially swinging for the fences in hopes of a payoff down the road, Yext is creating practical AI-driven services here and now. Specifically, Yext has developed ways to turn the mountains of data most companies are now collecting into actionable intelligence.

At first glance, it might not even look like true artificial intelligence. It may look and feel more like a well-planned means of repackaging information that already exists in a difficult-to-use format. Take a closer look, though, and one can see that its platform understands certain contexts and its AI-powered chatbot for use by client companies wouldn’t function properly just using a mere script.

Sexy? Not in the least. What is sexy, however, is the 32% revenue growth forecasted for this year with the same growth rate expected next year. Clearly the company’s doing something right.

Top 10 Heal Care Stocks To Invest In 2019

Penny stocks are great opportunities for retail investors to make triple-digit gains in a matter of days, but it can be like finding a needle in a haystack. In order to help Money Morning readers profit, we’re bringing you the five top penny stocks to watch in April 2018.

While a few penny stocks have great growth potential, the truth is that many of these low-cost stocks have very little chance of providing investors with a profit. In an effort to avoid losing your investment, it’s important to identify penny stocks that have strong financials and a good chance for growth.

In order to protect our investments, we follow five rules for investing in penny stocks – take a look at them on the right.

And based on our analysis, these are the five penny stocks to watch right now…

Top 10 Heal Care Stocks To Invest In 2019: BlackBerry Limited(BB)

Yes, that Blackberry Ltd (NYSE:BB). While the company is a ghost of its former glory on the smartphone front, it’s important to remember that the intellectual property and enterprise software potential of this once-dominant tech stock is still quite promising.

Considering that Wall Street has deeply discounted BB stock, that may be the perfect time for aggressive investors to pile in.

The new incarnation of BlackBerry is engaged mainly in software instead of hardware. And its longstanding reputation for the most secure platform out there has made it particularly attractive lately in the age of hacking and malware. This cybersecurity function and enterprise potential make it attractive both as an acquisition target and as a standalone enterprise.

Although revenue is expected to dip this year, it will still come in at more than $900 million, while the company sits on a cash cushion of over $2.4 billion — so let’s not hear uninformed talk of how BlackBerry is going under.

Shares surged from $7 to $14 during one stretch in 2017, and now that it has rolled back a bit it is time to consider buying in once more. There are high hopes that the company will make a name for itself in an age of cybersecurity and increasingly connected devices, or that an acquisition is likely.

It may never get back to its old glory, but a buy-in under $12 a share could very well result in a doubler or even a tripler for savvy investors who stick with BB through 2018.

Top 10 Heal Care Stocks To Invest In 2019: Chevron Corporation(CVX)

Newfield does not pay a dividend, but there are energy stocks in rising trends that do. Of the major companies, Chevron (CVX, $122.31) has many favorable characteristics, including a 3.6% dividend yield.

Chevron’s quarterly earnings have been mostly trending higher since early 2016. Analysts expect that trend to continue with a sizeable jump in their estimates for Q1 2018, due for release later this week.

The company raised its dividend Jan. 31, which is always welcomed by investors. And Chevron’s stock price reacts to crude oil price changes, so the commodity provides additional wind in the stock’s sails.

 

In early February, despite reporting higher earnings than the quarter before, analysts expected more. The stock tumbled, likely exacerbated by the sudden and steep drop in the broader market when leading technology stocks finally pulled back. Technical indicators suggested that the reaction was overdone as very little money left the stock. In essence, it provided a nice buying opportunity and, with the rally in April, the bulls are back in charge.

A run at the all-time high set in 2014 is not much of a stretch from current price levels. If and when it gets there, we will have to see how it reacts. Continued short-term strength would be a good sign that CVX can rally for much of the rest of the year.

Top 10 Heal Care Stocks To Invest In 2019: Vail Resorts, Inc.(MTN)

Hotel Stocks to Buy: Vail Resorts (MTN)

Source: Shutterstock

 

You might think it odd that I’m recommending Vail Resorts, Inc. (NYSE:MTN), a company primarily known as an operator of ski resorts, but the truth is, MTN does a lot of business in the summer and hopes to do more.

In the company’s first quarter ended Oct. 31, 2017, the quarter that best reflects its summer business, it lost $103.7 million on $220.9 million in revenue. It’s normal for Vail Resorts to lose money in the first quarter.

However, management was happy with its summer results.

“Perisher performed very well in the first quarter with outstanding conditions in September that led to strong visitation and revenue growth across the business,” stated its Q1 2018 press release. “Whistler Blackcomb’s robust summer business also performed well with strong performance in its world-class mountain biking operations, summer activities and sightseeing.”

As the premier ski resort operator in North America, anything it does in the summer months is gravy. Delivering revenue per available room (RevPAR) growth in double digits at both the hotels it owns and condos it manages, the summer business is more than holding its own.

Top 10 Heal Care Stocks To Invest In 2019: Amazon.com, Inc.(AMZN)

Amazon.com, Inc. (NASDAQ:AMZN) shares are making a move on the $1,500 threshold again, rising above their 50-day and 20-day moving averages to return to levels last seen in late March. President Trump, who has criticized the company and its CEO Jeff Bezos, has quieted his Twitter feed lately and held off on threats to reexamine its relationship with the U.S. Postal Service.

The company will next report results on April 26, after the close. Analysts are looking for earnings of $1.32-per-share on revenues of nearly $50 billion. When the company last reported on Feb. 1, earnings of $2.19-beat-estimates by 36 cents on a 38.2% rise in revenues.

Top 10 Heal Care Stocks To Invest In 2019: Spectrum Brands Holdings, Inc.(SPB)

Source: m01229 via Flickr (Modified)

 

Spectrum Brands, Inc. (NYSE:SPB) is in the middle of a major transformation that would test the mettle of any mid-cap company.

First, in January, Spectrum announced that it would seek buyers for its global batteries and appliances businesses so that it could focus on its higher margin, faster-growing businesses.

So far, it’s agreed to sell Rayovac batteries to Energizer Holdings Inc (NYSE:ENR) for $2.0 billion. It still is accepting offers for its Remington appliances business.

Then in February, it announced that it would merge with its majority owner, HRG Group Inc (NYSE:HRG), a $10 billion transaction that provides HRG shareholders with greater liquidity and a singular focus.

Finally, on April 26, Spectrum announced weaker than expected earnings and guidance along with news CEO Andreas Rouvé was being replaced after three years in the job.

All in all, it’s been a very turbulent four months for the company.

However, looking at the glass half full, its continuing operations will still make at least $600 million in fiscal 2018. Trading at less than ten times cash flow, SPB stock is cheaper than it’s been since 2011.

Top 5 Safest Stocks To Buy Right Now

The stock market has been a bit volatile this year, but there are some sectors that are still experiencing significant share price gains. For example, the Nasdaq 100 Technology Sector is up about 22% over the past 12 months. Those gains are pretty impressive, but a handful of tech stocks, have seen their share prices jump about five times as much.

Top 5 Safest Stocks To Buy Right Now: BlackBerry Limited(BB)

BlackBerry is best known to the public for its once-iconic brand of smartphones, but the company ditched hardware manufacturing recently and now serves as an enterprise software and services company. This transition is finally getting the attention of analysts, and an improving earnings outlook has earned the stock a Zacks Rank #1 (Strong Buy). The company has also managed to surpass EPS estimates in nine consecutive quarters. Still, this is one for the long haul, with earnings expected to expand at an annualized rate of nearly 19% over the next three to five years.

Top 5 Safest Stocks To Buy Right Now: Tesla Motors, Inc.(TSLA)

Tesla (TSLA) shares are on the verge of breaking down out of a multimonth consolidation range amid ongoing Model 3 production woes, executive departures and fresh worries about the future of autonomous vehicles after an Uber self-driving car killed a pedestrian.

Goldman Sachs analysts, in a recent note, reiterated a sell rating on worries about output and Q1 deliveries.

The company will next report results on May 2 after the close. Analysts are looking for a loss of $3.22 per share on revenues of $3.6 billion. When the company last reported on Feb. 7, a loss of $3.04 per share beat estimates by 11 cents on a 43.9% rise in revenues.

Top 5 Safest Stocks To Buy Right Now: Uniti Group Inc.(UNIT)

This real estate investment trust currently has a 12.6% dividend yield, which is often a red flag. Extremely high yields tend to come with very low share prices, which in turn is a healthy market reaction to deeply troubled business operations.

But maybe pigs do fly after all. This huge yield seems to stem from a misunderstanding, not some profound insight about impending doom.

It’s true that Uniti is tethered to another company that really does deserve plenty of crimson-flag-waving. Regional telecom Windstream Holdings (NASDAQ:WIN) reported a $2.1 billion net loss over the last four quarters, along with roughly breakeven free cash flow and negative EBITDA (earnings before interest, taxes, depreciation, and amortization) profit. Uniti is the new embodiment of Windstream’s former network infrastructure operations, which were spun out as a stand-alone business three years ago. Since then, Windstream’s future has only darkened, while Uniti has been edging away from its old parent company in many ways.

Sometimes, Uniti is punished for Windstream’s sins. But it’s obvious to me that Uniti walked away from the 2015 separation with the better deal. What we see today is a struggling telecom that spun out its most valuable and effective operations in a Hail Mary attempt to gain some financial stability. In the future, I fully expect Windstream to either go bankrupt or agree to a pennies-on-the-dollar buyout, just to salvage a tiny bit of shareholder and debt-writer value. When that happens, Uniti will go on supplying its services through some 4.8 million miles of fiber-optic network strands and 700 wireless towers, but to a whole new set of clients.

When that day comes, Uniti shares will take another big hit as many investors expect the dying Windstream to drag this company down behind it. Maybe I’ll buy more shares at that point, because Uniti’s long-term story is solid.

And in the meantime, you can’t beat that ultragenerous dividend yield.

Top 5 Safest Stocks To Buy Right Now: Tele Celular Sul Participacoes S.A.(TSU)

TIM Participacoes SA (NYSE:TSU) based in Rio de Janeiro, Brazil, the company is the sole wireless service provider throughout Brazil.

TIM Participacoes has expected earnings growth of 27.5% for current year. The Zacks Consensus Estimate for the current year has improved by 4.1% over the last 60 days.

Top 5 Safest Stocks To Buy Right Now: MeetMe, Inc.(MEET)

Often when you run across small-cap tech stocks, you have to pay a big premium for growth. But savvy investors don’t just chase highflying names, but also extreme values among small-cap stocks in the sector.

That’s what Meet Group Inc (NASDAQ:MEET) offers. Via its MeetMe website and app that go by the same name, Meet Group helps connect people and businesses with one another based on location. That sounds like a go-to segment to be in right now given the push for geolocation in every sector from retail to information technology, right?

The challenge is that Meet Group debuted a bit early, in 2011 before the mobile promise was fully understood and while investors were about to go “risk off” because of the European debt crisis. In the intervening years, sexier platforms like Facebook and Twitter and Snapchat have sucked all the oxygen out of the room, and this tiny $200 million company has been all but forgotten.

But quietly, the fundamentals of MEET have been improving impressively. Right now, Meet Group recorded 60% revenue growth in 2017 — and unlike other small-cap tech stocks, it actually posted plenty of actual profits.

Yet despite this impressive narrative, MEET shares are trading a single-digit P/E ratio 8! That’s if you act while the stock is still under my buy-below price.