Tag Archives: MU

Top 5 Oil Stocks To Invest In 2019

Lately, on Industry Focus: Tech, we’ve focused on the megacap businesses that have been dominating the news — at the cost of shedding some light on smaller companies with massive growth potential. In this week’s episode, host Dylan Lewis talks with Fool.com contributor Brian Feroldi about following ultra-compelling small-cap tech companies.

Tune in to find out how each business works, how companies like AppFolio thrive in markets that are too small for the big guys, the biggest risks investors should know before taking a closer look at these companies, which particular one is the most exciting story today, and more.

Top 5 Oil Stocks To Invest In 2019: HSBC Holdings plc(HSBC)

HSBC Holdings plc (ADR) (NYSE:HSBC) is a British banking and financial services holding company. Founded in Hong Kong (then a British colony) in 1865 as a bank to finance trade between Europe and Asia, the bank now bases itself in London. Today, it provides banking and wealth management services to clients in 67 countries and territories across the world.

Although revenue has seen years of decline, it has begun to rebound. Moreover, its price-to-earnings (PE) ratio for HSBC stock, currently at 20, is around 12 on a forward basis.

This level of profit growth should bode well for its dividend. Its current dividend stands at $2.55 per share. Since it pays a larger dividend for its first payment of the year, new investors will likely not see the 5.5%  yield unless they hold the stock until next spring.

However, with profits expected to rise, investors no longer need to worry about declining profits jeopardizing its dividend.

Top 5 Oil Stocks To Invest In 2019: Micron Technology, Inc.(MU)

Cloud Computing Stocks to Consider: Micron (MU)

Source: Shutterstock

 

I’ve admittedly been pushing Micron (NASDAQ:MU) pretty hard lately, but there really isn’t a better cloud play right now than MU stock. And in my defense, I’m not alone in saying that.

Luke Lango pointed to cloud computing last week in arguing that MU should trade above $70. Stifel analyst Kevin Cassidy made a similar point after earnings this month, and gave Micron stock a $108 price target. JP Morgan (NYSE:JPM) has cited the cloud tailwind, and so hasMorgan Stanley (NYSE:MS).

The core argument is rather simple. Micron trades at a seemingly ridiculous valuation (barely 5x forward EPS) because investors are worried that always-cyclical memory pricing eventually will decline. But the memory — particularly on the DRAM side — required for cloud computing should provide years of demand that can help offset any supply expansion. If cloud computing continues to grow, Micron’s pricing should hold — and so should its earnings. And at some point in that scenario, Micron will be trading for a lot more than 5x EPS and its current price of $53.

Top 5 Oil Stocks To Invest In 2019: Foundation Medicine, Inc.(FMI)

Our understanding of the human genome and the role genes play in cancer is increasingly shaping patient treatment and one company that’s at the forefront of this movement is Foundation Medicine.

A child rides a rocket into the sky with arm outstretched pointing toward space.

IMAGE SOURCE: GETTY IMAGES.

Using next-generation screening technology, Foundation Medicine helps drugmakers identify for clinical drug trials patients who have genetic mutations that make them most amenable. Also, following the Food and Drug Administration approval of FoundationOne CDx late last year, Foundation Medicine became the first company to offer a comprehensive gene testing solution that matches solid-tumor cancer patients up with cancer drugs that are most likely to help them.

Thanks to a flurry of biopharma cancer gene therapy research and rising demand for clinical testing, Foundation Medicine’s first-quarter 2018 sales skyrocketed 101% year over year to $52.8 million. Contributing to the growth was a 57% year-over-year increase in completed tests to 21,861.

I expect testing volume to climb much higher, though. In Q1, Medicare granted FoundationOne CDx broad coverage through a final national coverage determination that makes it available for eligible stage 3 and stage 4 solid-tumor cancer patients. Private insurers usually follow Medicare’s lead, so I suspect FoundationOne CDx will win widespread reimbursement soon. If so, then FoundationOne CDx could become widely used to create cancer treatment plans for advanced cancer patients, an addressable market that Foundation Medicine estimates at over 1 million people in the U.S. alone. 

Foundation Medicine isn’t turning a profit yet, but I expect that will happen soon enough. The sheer size of the addressable market and the importance of advancing cancer treatment could easily make genetic testing a necessity. According to the National Cancer Institute, about 1.7 million people will be newly diagnosed with cancer this year and over 600,000 Americans will pass away this year because of cancer. 

Foundation Medicine estimates it will do between 90,000 to 100,000 clinical tests and sales will clock in at up to $220 million this year. That won’t fully offset the $250 million to $260 million it expects to spend, but it could put Foundation Medicine in a position to turn a profit as soon 2019.

Top 5 Oil Stocks To Invest In 2019: Arotech Corporation(ARTX)

Arotech Corporation (NASDAQ:ARTX) functions as a defense and security services company. Despite its market cap of only $88 million, it operates in multiple countries and competes with the likes of General Electric Company (NYSE:GE) and Honeywell International Inc. (NYSE:HON) through its Power Systems division.

ARTX also serves as a defense contractor and makes products designed for military, homeland security and law enforcement purposes. Given the Donald Trump administration’s commitment to increase defense spending, Arotech could find itself well-positioned to benefit.

However, like all hot penny stocks, this play remains speculative. Its revenues for 2017 stood at $98.72 million. Its 2014 revenues were $103.57 million, so this company has struggled with growth. Arotech was founded in 1990, and one of its divisions came into existence in 1971. Hence, the build to these revenues has been slow.

The company earned a profit of 17 cents per share in 2017. Still, profits are expected to grow to 18 cents per share in 2018 and 26 cents per share in 2019. This could indicate this company may enjoy some growth. If the company can sustain that growth and speed up its slow growth trajectory, its forward price-to-earnings ratio of 13 starts to appear very low.

Top 10 Bank Stocks To Own Right Now

Ireland, the fastest growing economy of the European Union, has gone from strength to strength in the past few years. The Irish labor market remains tight currently as its unemployment is near a 10-year low. Also, the EU has been upbeat about the growth prospects of the Irish economy in the years to come.

Finally, business conditions have kept improving and Irish wages have been boosted by tight labor conditions. Such favorable conditions call for investing in stocks from Ireland.

For the first time in as many as 10 years, the overall jobless rate in Ireland swooned to below 6% in April. Per the latest report from the Central Statistics Office on May 1, the unemployment rate fell to 5.9%. The metric was last around this level in 2008, just before Ireland’s economic crisis.

The jobless rate has been on a steady decline since the country’s finance department projected in April that by the next year, the Irish economy would witness the unemployment rate falling to as low as 5.3%. The body also stated that after this, joblessness would hold steady at that level till 2020, while the economy makes its way to full employment.

Coming to the statistics, the seasonally adjusted rate for the current level of unemployment fell even below the revised rate of 6% in the month before and 6.8% in April last year. The total number of persons who were left unemployed within Ireland stood at 140,300, lower than 143,500 persons in the month earlier. Also, in the past 12 months, 16,700 persons got jobs.

Top 10 Bank Stocks To Own Right Now: Micron Technology, Inc.(MU)

Micron Technology, Inc. (MU) Stock Will Continue Its Stratospheric Ascent

Source: Shutterstock

 

One of the hottest chip stocks over the past 12 months has been Micron Technology, Inc.(NASDAQ:MU). Due to huge demand converging with constrained supply in the memory market, MU has seen its profits soar over the past several quarters. Concurrently, MU stock has risen around 70%.

Micron stock, though, is roughly 20% off its recent highs. That is largely due to weak high-end smartphone demand (thanks, iPhone X). The entire bear thesis is predicated upon the fact that the semiconductor industry in notoriously cyclical, and that MU’s profits are likewise notoriously cyclical. Thus, any weakening of demand is seen as a huge red flag for this business as it could lead to a massive erosion in underlying profits.

But I don’t think that is the case here and now with MU stock.

Yes, high-end smartphone demand is weak right now. But that is just one part of Micron’s underlying growth narrative, and an increasingly small part at that. The hyper-growth demand segments are cloud data-centers, IoT, automation, and artificial intelligence. Judging by recent sky-high growth rates from the big players in this space like Alibaba Group Holding Ltd(NYSE:BABA), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT) and Baidu Inc (ADR) (NASDAQ:BIDU), demand in these markets remains as robust as ever.

Moreover, just because Apple Inc. (NASDAQ:AAPL) isn’t selling a ton of smartphones, that doesn’t mean that Apple isn’t selling a whole lot of other smart devices, like smartwatches and tablets.

Overall, then, end-demand for MU’s suite of products remains robust and will remain robust into the foreseeable future. Thus, so long as supply remains checked, MU stock should be able to keep grinding higher.

Top 10 Bank Stocks To Own Right Now: QIWI plc(QIWI)

Qiwi PLC (NASDAQ:QIWI) is a high-risk, high-reward play – for obvious reasons. 74% of the payment company’s revenue comes from Russia. That obviously makes it extremely reliant on that country’s economy – and vulnerable to political shocks both in the country and without (such as U.S.- imposed sanctions).

But there’s an intriguing case to make QIWI a part of a high-risk or emerging markets portion of an investor’s portfolio. The company has about $5 per share in cash against a share price around $18. The dividend is choppy, but the past four quarterly payments provide a 4%-plus yield. There’s even a potential play on blockchain here.

And QIWI is pricing in an awful lot of its risks, trading at just 11x forward EPS estimates. Obviously, that alone doesn’t make QIWI stock cheap. But it makes it cheap enough to be interesting, at least.

Top 10 Bank Stocks To Own Right Now: Proofpoint, Inc.(PFPT)

What cybersecurity infant Proofpoint Inc (NASDAQ:PFPT) lacks in size, it makes up for in growth.

Proofpoint isn’t like the Palo Alto Networks of today. It isn’t big, nor does it operate at 20% operating margins, nor is it the poster-child for the entire cybersecurity space.

But Proofpoint is like the Palo Alto Networks of yesterday. The smaller version that was growing at 50% per year and expanding margins from 7% to 20%.

Last quarter, Proofpoint reported revenue growth of 40%. That is a big number. It is also bigger than the revenue growth the company reported the quarter before that (36%).

This year, Proofpoint expects revenues to grow by 37%. That is the same growth rate as last year. It is also the same growth rate the company has maintained for the past five years.

In other words, this massive 30-40% revenue growth story isn’t slowing down at all. That is a sure-fire sign that demand for PFPT’s products is ramping alongside growing demand in the entire cybersecurity market. Further, that implies that PFPT is a secular winner in a secular growth market.

Meanwhile, operating margins are also ramping higher, and are expected to reach 14% by 2020.

In totality, PFPT has PANW written all over it. PANW stock has gone from $40 to $200 over the past 5 years. A similar rally could be in store for PFPT stock over the next 5 years.

Top 10 Bank Stocks To Own Right Now: Caterpillar, Inc.(CAT)

This play on the global infrastructure boom shares is sitting directly on their 50-day SMA, creating an ideal entry point for long-term investors.

Shares were knocked off their January highs to below support and have just broken above, painting a bullish picture for the stock.

U.S. tax reform, Trump’s massive infrastructure spending plan, and robust 2017 revenues make the CAT a no-brainer buy at the current levels.

Top 10 Bank Stocks To Own Right Now: Supernus Pharmaceuticals, Inc.(SUPN)

Most small-cap biotechs are still in the money-losing stage of their lifecycle, which makes them extremely speculative investments. However, there are a handful of exceptions. One of them is Supernus Pharmaceuticals, a commercial-stage biotech that is focused on diseases of the central nervous system. This company has been cranking out fast-growing profits since 2015, which is a big reason why its stock has crushed the S&P 500 over the last few years.

Supernus’ profit growth is driven by the success of two drugs that are used to treat epilepsy: Oxtellar XR and Trokendi XR. Last year sales of these two drugs climbed 40% and allowed Supernus to pull in more than $302 million in total revenue. Better yet, the soaring top line allowed the company’s adjusted net income to grow by 90% to $67 million. With management calling for peak sales of Oxtellar XR and Trokendi XR to reach $800 million, the odds look good that this fast growth will continue for the foreseeable future.

Supernus’ pipeline also should provide investors with reasons for optimism. The company boasts two compounds in phase 3 development that, if approved, could also turn into top sellers. The first is SPN-810, a potential treatment for impulsive aggression. The second is SPN-812, which is being studied as a treatment for attention hyperactivity disorder. Late-stage data readouts are expected for both drugs by the first quarter of 2019.

In a nutshell, Supernus is a winning stock that offers investors fast profit growth in the near term and the potential for massive upside if SPN-810 or SPN-812 pan out. That’s a combination that any biotech investor should find appealing.

Best Clean Energy Stocks To Buy Right Now

As we work to instill good values in our children, we generally try to discourage boasting. But as long-term investors with the world’s most powerful tool for wealth creation — the stock market — at our fingertips, we’ll readily admit we want to buy and hold stocks that our kids will at least be tempted to brag about someday.

To that end, three top Motley Fool investors think these stocks fit the bill. Here’s why.

Best Clean Energy Stocks To Buy Right Now: Newell Rubbermaid Inc.(NWL)

As we’ve seen from Q1 2018 earnings reports, companies that beat estimates are given very little love and those that barely miss are pummeled. That’s exactly what’s happened to Newell Brands Inc (NYSE:NWL) when it reported earnings May 4. Analysts were expecting earnings per share of 26 cents; Newell came in at 34 cents, 31% higher than the estimate. Yet NWL barely moved.

The likely culprit? Analysts were expecting revenue of $3.039 billion, Newell was short by $22 million. Factor in the company is in the middle of rightsizing its business in terms of the number of brands it owns and investors see a lukewarm growth story.

However, Newell’s accelerated transformation plan is far from finished. In its Q1 2018 press release, it announced that it would also potentially sell its Jostens and Pure Fishing businesses if the right offers came along.

“The divestiture process is well underway and the company expects to complete all transactions by the end of 2019,” stated Newell’s Q1 2018 press release. “In 2020, the Company expects net sales of approximately $9.5 billion and normalized operating margin greater than 15 percent.”

Trading at a P/S and P/B that’s lower than it’s been in recent years, I’d consider a small position with an eye to adding to it once it’s clear the fine-tuning of its portfolio is working.

Best Clean Energy Stocks To Buy Right Now: Spirit Airlines Inc.(SAVE)

Spirit Airlines Incorporated (NYSE:SAVE) provides low-fare airline services to approximately 60 destinations in the United States, the Caribbean, and Latin America.

The airline’s total revenue stands at $2,648 million as of fiscal year ending December 2017. This is 100.8% higher than the $1,318 million achieved in fiscal year December 2012. In addition, Spirit’s revenue growth has been fairly stable ranging from 8.4% to 25.5% over the last five years.

Going forward, Wall Street is forecasting that Spirit’s total revenue will reach $4,508 million by fiscal year 2022 representing a five-year CAGR of 11.2%.

Shares of Spirit Airlines are down -13.0% over the last year and finbox.io’s fair value estimate of $62.66 per share calculated from six cash flow models imply 41.1% upside.

Best Clean Energy Stocks To Buy Right Now: Micron Technology, Inc.(MU)

Micron is one of the leading worldwide providers of semiconductor memory solutions. The company’s memory solutions are marketed towards customers in a variety of industries, including computer manufacturing, consumer electronics, and telecommunications. Thanks to rising demand for digital memory—due to new applications like Internet of Things and artificial intelligence—Micron has emerged as a popular growth stock over the past year or so.

MU’s popularity comes with good reason, especially considering that its earnings and revenue are expected to surge by 121.6% and 43.5%, respectively, this fiscal year. It is also noteworthy that the company has witnessed nine positive revisions to this EPS estimate within the past 60 days, against zero to the downside.

Positive revisions have lifted MU to a Zacks Rank #1 (Strong Buy), but investors will also note that the company is growing its cash flow at a shocking rate of 186.1% while the stock trades at a miniscule 4.4x forward 12-month earnings.

Best Clean Energy Stocks To Buy Right Now: The Travelers Companies, Inc.(TRV)

Travelers Companies Inc (NYSE:TRV) provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals.

Considering a more comprehensive earnings history, Travelers Companies has an average four-quarter positive earnings surprise of 43.1%. Companies with such positive earnings surprise are more likely to positively surprise in the near future.

The Zacks Consensus Estimate for its current-year earnings rose 4.5% in the last 60 days. If this wasn’t enough, the company has an Earnings ESP of +2.00%. A positive Earnings ESP with a Zacks Rank 2 has resulted in positive earnings surprises 70% of the times over the past decade.

The company is expected to report earnings results for the quarter ending March on Apr 24.