Tag Archives: STX

Hot Penny Stocks For 2019

The sudden return of volatility to global stock markets has created buying opportunities in large-cap tech stocks as the sector’s investors look to rebound from recent selloffs. The world’s tech leaders have dominated Wall Street over the past two years, and now, investors might have a fresh chance to buy a few previously red-hot stocks at a discount.

Of course, this recent volatility has made some investors hesitant, with bearish traders quick to draw similarities between this latest tech rally and the infamous dot-com bubble of the late 90s and early 2000s.

However, unlike the dot-com bubble, there is real earnings and revenue growth fueling this tech rally. In fact, the average P/E ratio of our “Computer and Technology” sector currently sits at 20.8, which compares favorably to the dot-com era’s average that routinely soared into the 200s.

Another interesting trend in today’s tech rally is that, rather than obsessing over the next big thing, investors seem to rewarding tried-and-true brands for their respectable growth. This means that some of the strongest tech stocks are the household names that consumers already know and love.With that said, check out these three blue chip tech stocks to buy now:

 

Hot Penny Stocks For 2019: J.C. Penney Company, Inc. Holding Company(JCP)

J C Penney Company (NYSE:JCP) got hammered on Wednesday for a near-8% loss. That decline dropped JCP stock well below the $3 threshold and put it squarely back in the potential bargain bin category.

JCP stock has been back in the news recently due to a management change. As InvestorPlace’sWilliam White wrote, JCP’s CEO, Marvin Ellison, quit the company to take the reins at Lowe’s Companies, Inc. (NYSE:LOW). While Ellison is clearly stepping into a nice position at Lowe’s, he also may have wanted to get away from JC Penney given recent results. JCP disappointed with its past holiday season, and this most recent quarter was a mixed bag, as revenues beat but earnings missed and the company offered soft guidance.

Despite the issues, J C Penney could still turn the corner. Analysts see the company finally returning to profitability over the next year. Forward earnings estimates put the stock around 18x earnings. If those earnings in fact occur, expect JCP stock to fly. Short sellers are betting against an astounding 41% of JCP stock’s float. That sort of massive short position is just asking for an explosion when the company delivers good news.

With Sears Holding Corp (NASDAQ:SHLD) closing dozens more stores and looking increasingly shaky, JCP stock can fly once it takes sales away from its rival.

Hot Penny Stocks For 2019: Glu Mobile Inc.(GLUU)

Glu Mobile is a leading global publisher of mobile games, including top-rated original titles and titles based on major brands from partners like Activision and Hasbro. Glu is bouncing into a profitable year, with earnings expected to improve by 150% to touch $0.22 per share in 2018. Meanwhile, revenue is projected to grow by 18%. The stock now has a Zacks Rank #2 (Buy). This is also a popular momentum option right now after shares skyrocketed about 43% in the past month. Investors looking to follow this trend should appreciate that analyst sentiment has improved strongly as well.

Hot Penny Stocks For 2019: IPG Photonics Corporation(IPGP)

Top Growth Stocks: IPG Photonics (IPGP)

Source: Shutterstock

 

IPG Photonics (NASDAQ:IPGP) is the world’s leading provider of high-power fiber lasers. These lasers are used in a variety of different devices and applications, ranging from materials processing to broadband internet to medical pumps.

The bottom line is, the demand for fiber optic laser technology is a growth industry for a very long time, and IPGP is one of the major players.

Fiber lasers are the next generation of laser technology and offer many advantages over traditional lasers. They’re more energy efficient, they’re easier to maintain and they last longer.

As companies upgrade their current technologies with fiber-laser applications, IPG Photonics’ sales and earnings continue to soar.

In March IPGP entered the S&P 500, which is a big deal because every index fund linked to S&P 500 performance now needs to own the stock.

But IPGP stock has been up and down on tariff talk, so it’s a great time to get in.

Hot Penny Stocks For 2019: Seagate Technology PLC(STX)

Seagate Technology plc (NASDAQ:STX) is a provider of data storage technology and solutions to clients across the globe.

The company is based out of Dublin, Ireland and sports a Zacks Rank #1. The expected earnings growth rate for the current year is 28.49%. The Zacks Consensus Estimate for the current year has improved 18.2% over the past 60 days. Seagate has gained 51% in the past six months.

Hot Medical Stocks To Watch Right Now

For a company to be considered a "growth stock," the only real criteria is that you are buying it because you believe in the unbridled potential for the stock’s price to go up over time.

That being said, I personally believe adding some specific criteria can help to increase the probability of finding a stock with Amazon-esque return potential. By buying companies with market capitalizations under $20 billion, there’s more room for the stocks to grow over time. And by buying companies that have shown strong revenue growth — an average of over 20% over the past three years — that makes it likely these companies are offering what consumers want more and more of.

Hot Medical Stocks To Watch Right Now: Seagate Technology PLC(STX)

Seagate is a global leader in hard drive manufacturing. It offers a range of disk drive products for the enterprise, client computing, and client non-computing market applications. Seagate is currently sporting a Zacks Rank #2 (Buy) and an “A” grade for Value in our Style Scores system. The firm is currently generating a staggering $6.78 in cash per share on the back of 32% cash flow growth. Seagate takes advantage of its strong cash position by offering investors a dividend of 4.2%, making it one of the most attractive income options in the entire technology sector.

Hot Medical Stocks To Watch Right Now: Wal-Mart Stores, Inc.(WMT)

For years, Walmart reigned supreme over the American retail landscape as its superstores blanketed the heartland and its rock-bottom prices drew hordes of shoppers. However, with the rise of e-commerce, Walmart has been forced to adapt. The company has essentially stopped opening new stores, and instead invested in its current store base, raised wages, and improved training for new employees. Walmart has also focused on e-commerce, adding over 1,000 online grocery pickup locations, and acquiring Jet.com for $3.3 billion, along with smaller online native brands. 

Those moves have paid off. Walmart has now reported 14 straight quarters of comparable-sales growth, and its two-year comps jumped 4.4% in the fourth quarter, its fastest clip in eight years. U.S. e-commerce sales surged 44% last year, and profits are also expected to return to growth this year as the investments in recent years begin to pay off on the bottom line.

While it sounds like Walmart is firing on all cylinders, investors seem to have a different opinion.The stock is down 22% from its January high, selling off following disappointing e-commerce growth in the company’s fourth-quarter report, and falling again after the market pooh-poohed its $16 billion acquisition of a majority stake in Flipkart, the Indian e-commerce specialist. The investor response to both news items seems misguided. Walmart still expects U.S. e-commerce growth of 40% this year, indicating that the fourth-quarter increase of 23% was probably just a blip. Furthermore, the Flipkart deal should pay off in the long run, as the Indian e-commerce market is expected to explode over time, reaching $200 billion by 2026.

Walmart still has many of the advantages it always had, including economies of scale and stores within 10 miles of 90% of the U.S. population, giving it a boost in e-commerce. As it adapts to the changing retail landscape, the company should remain among the industry’s leaders.

Hot Medical Stocks To Watch Right Now: Alphabet Inc.(GOOGL)

It might seem crazy to predict that shares of a $750 billion company could double from here. But I think Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) has the potential to do exactly that.

As the parent company of Google, Alphabet already boasts seven products that each have at least one billion active users, including Search, YouTube, Gmail, Android, Chrome, Maps, and the Google Play store. But it’s easy to forget that around 4.5 billion people — two-thirds of the world’s population — still don’t have access to the internet. And the network effect surrounding the already enormous scale of Alphabet’s core product portfolio will mean it’s well positioned to benefit when those people come online. 

That’s also not to mention Alphabet’s smaller "Other Bets" segment, which is mostly made up of early stage businesses with massive long-term promise. Think Nest connected-home products, Fiber high-speed internet, Verily Life Sciences solutions, and Waymo self-driving vehicles, to name only a few.

Revenue at Other Bets jumped nearly 50% last year to $1.2 billion. But many of its smaller businesses are still in their pre-revenue stages, so the segment incurred a hefty operating loss of $3.4 billion over the same period. But with a growing cash hoard of nearly $103 billion on its balance sheet at the end of last year thanks to its massively profitable Google operations, Alphabet can afford to continue fostering these bets with a long-term mindset. If any one of them truly begins to take off in the coming years, it could stoke Alphabet’s returns that much more.

Top 10 Tech Stocks To Buy For 2019

Another day, another hack, another reason to buy a cybersecurity stock.

Clearly, cybersecurity stocks have been the big winners recently.

This should remain true over the next several years. While the group as a whole might be entering overbought territory in the near-term (a 20% run higher in an exchange-traded fund implies that there have been some really big individual movers recently), any forthcoming weakness in the cybersecurity space should be viewed as a long-term buying opportunity.

With that in mind, here’s a list of three cybersecurity stocks which could be among the biggest winners in this secular growth group.

Top 10 Tech Stocks To Buy For 2019: Evolution Petroleum Corporation, Inc.(EPM)

Like many oil & gas peers, Evolution Petroleum Corp (NYSEAMERICAN:EPM) has rallied of late on the back of higher crude prices. Unlike many of those peers, Evolution has a clean balance sheet – and room for growth.

The company in fact acquired assets primarily in the Permian Basin just this week – using up its cash balance in the process. But net cash still is likely modestly positive, and so far Evolution has made sure to build out its assets using cash flow instead of higher-risk debt.

That strategy has been enough to support a 4%-plus dividend yield – and allow EPM to benefit nicely on the big gains in crude. A joint venture with struggling Denbury Resources Inc.(NYSE:DNR) remains a sticking point, but $70-plus oil could allow both companies to finally improve those operations.

DNR stock has quadrupled since late October and Evolution may see some spillover benefits from its partner’s newfound health.

Top 10 Tech Stocks To Buy For 2019: Teladoc, Inc.(TDOC)

In the future, patients may receive a lot of their primary care via virtual doctor visits facilitated by Teladoc.

In partnership with providers and insurers, patients can use Teladoc’s service to discuss their healthcare concerns with doctors on smartphones or computers. The on-demand nature of virtual visits makes it a great option for time-strapped patients and virtual visits are a win for providers because they’re a good way to fill empty slots in their schedule.

Virtual doctor visits are arguably most appropriate for simple healthcare needs now, but in the future, advances in remote patient monitoring could make them useful in complex healthcare cases, as well. In anticipation of this shift, Teladoc acquired Best Doctors last year.

Best Doctors provides virtual second opinions from top-rated specialists and this acquisition was a big reason why Teladoc’s first-quarter revenue grew 109% year over year to $89.6 million. Best Doctors was an important source of revenue in Q1, but even if you back out its contribution, Teladoc’s sales still grew by 47% in the past year. 

Teladoc sees a net loss of between $1.36 to $1.41 this year, but sales are expected to increase to between $350 million to $360 million from $233.3 million in 2017. The losses will likely continue for a while, but the size of the addressable market still makes this a stock worth buying. In Q1, Teladoc had 606,000 doctor visits and that’s only a small fraction of the 991 million times patients visited doctors last year, according to the Centers for Disease Control.

Overall, fast-growing companies tend to be more volatile than slower-growing peers, but over time, investing in high-growth companies like these three can pay off with market-beating returns. Therefore, if you have a long-term time horizon and you’re willing to accept the risk associated with investing in growth stocks, it might be worth buying all three of these for your portfolio.

Top 10 Tech Stocks To Buy For 2019: World Wrestling Entertainment, Inc.(WWE)

Shares of World Wrestling Entertainment gained more than 3.5% and reaching a new all-time high of $41.58 in morning trading today. The sports entertainment giant filed its first quarter fiscal 2018 earnings report on Thursday morning, and investors clearly liked what they saw.

WWE posted adjusted earnings of 18 cents per share, cruising past the Zacks Consensus Estimate of 13 cents and growing 125% from the prior-year period. The company also raised its full-year guidance for adjusted OIBDA to $150 million from $145 million.

WWE is now holding a Zacks Rank #2 (Buy).

Top 10 Tech Stocks To Buy For 2019: Seagate Technology PLC(STX)

At first glance, hard-drive maker Seagate seems like a dividend trap. Its core business of platter-based HDDs (hard disk drives) seems threatened by flash memory-based SSDs (solid state drives). Meanwhile, its 4.4% dividend yield consumed 114% of its earnings over the past 12 months.

However, Seagate’s core HDD business is very resilient. HDDs are much cheaper than SSDs, which makes them ideal for high-capacity data centers. Cyclically high flash memory prices are also making SSDs pricier.

Meanwhile, Seagate developed higher-capacity HDDs to meet the demands of enterprise customers and service providers, which prioritize cost and capacity over raw speed to meet the demands of streaming media and cloud services. Seagate is also launching new hybrid drives, which merge SSDs and HDDs, and HDDs with built-in AI features for security and analytics.

That’s why Seagate finally broke a multiyear streak of revenue declines with 1% sales growth last quarter. Wall Street expects its revenue and earnings to rise 1% this year, and for its earnings — lifted by buybacks — to grow 19%.

Seagate’s dividend looks flimsy based on its payout ratio, but those payments only used up 55% of its free cash flow over the past 12 months. That means Seagate can keep paying its dividend, although it hasn’t hiked that payout since 2015. Seagate isn’t the ideal dividend stock for nervous investors, but misconceptions about its business have made it a cheap income play at 12 times forward earnings.

Top 10 Tech Stocks To Buy For 2019: Oracle Corporation(ORCL)

Oracle (ORCL) shares are down nearly 9% after reporting good quarterly results dragged down by weak forward guidance. Quarterly earnings rose 20% from last year to 83 cents per share on a 5.4% growth in revenue. Cloud revenue increased 32% to $1.6 billion.

So why is the stock down? Because the revenue beat was driven by a lower tax rate. Moreover, during the earnings call, analysts seemed disappointed with cloud revenue and guidance.