BREAKING NEWS: Investing

White Cliff Minerals Limited (ASX: WCN) – Trading Halt

Fri, 22 Nov 2024 03:39:51 +0000

Description

The securities of White Cliff Minerals Limited (‘WCN’) will be placed in trading halt at the request of WCN, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Tuesday, 26 November 2024 or when the announcement is released to the market.

Issued by

ASX Compliance

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This article includes content from White Cliff Minerals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

Oil rises as intensifying Ukraine war increases supply risk

Fri, 22 Nov 2024 02:55:36 +0000

Oil prices rise, head for weekly gain on Russia-Ukraine tensions

Fri, 22 Nov 2024 02:11:30 +0000

Q3 Earnings Buzz: Target Stock Falls Nvidia Shares Flat

Thu, 21 Nov 2024 23:59:00 +0000

Following their Q3 results on Wednesday, Target TGT and Nvidia NVDA are two trending stocks that investors are certainly paying attention to.

Target’s stock has plunged over 20% since its lackluster Q3 report while Nvidia shares have been surprisingly flat despite topping estimates and posting another quarterly record for revenue.

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Target Misses Expectations

Target highlighted strengths in traffic and digital channels as a driver to Q3 sales of $25.66 billion which increased 1% year over year but fell short of estimates of $25.91 billion. Furthermore, Target CEO Brian Cornell mentioned unique challenges and cost pressures as a derailment to the company’s bottom line with Q3 earnings of $1.85 per share falling 12% from the comparative quarter and missing the Zacks EPS Consensus of $2.29 by -19%.

Inconsistency has had investors on the fence about Target’s stock with the omnichannel retailer previously exceeding Q2 EPS estimates by 19% in August with earnings at $2.57 per share versus expectations of $2.16.

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Nvidia’s Results Beat Again

Seeing continued demand for its artificial intelligence chips, Nvidia’s Q3 sales spiked 93% to a record $35.08 billion compared to $18.12 billion a year ago. This also topped Q3 sales estimates of $33.32 billion by 5%. More impressive, Q3 EPS of $0.81 doubled from $0.40 a share in the prior-year quarter and comfortably beat expectations of $0.75.

Nvidia has exceeded earnings expectations for eight straight quarters posting an average EPS surprise of 9.79% in its last four quarterly reports. Further illustrating Nvidia’s dominance is that the chip giant has beaten top line estimates for 23 consecutive quarters with an average sales surprise of 6.7% in its last four quarterly reports.

Image Source: Zacks Investment Research

Target’s Guidance

Providing EPS guidance for Q4, Target expects adjusted earnings of $1.85-$2.45 per share which is below the current Zacks Consensus of $2.62 or a 12% decline. For its full-year fiscal 2025, Target now projects an adjusted EPS range of $8.30-$8.90, below expectations of $9.54 or 7% growth. Notably, Target expects comparable Q4 sales to be flat and above Zacks estimates of $30.76 billion or a 3% decline.

Nvidia's Guidance & Blackwell Update

Offering Q4 revenue guidance, Nvidia expects sales to be at $37.5 billion plus or minus 2% with Zacks estimates at $36.84 billion. While Nvidia’s guidance may have underwhelmed investors, the chipmaker stated its much anticipated Blackwell GPUs are already sold out for the next 12 months with shipments beginning this quarter and production set to ramp up next year.

The Blackwell GPUs are expected to be the highest-performance AI chips on the market, ahead of its previous H200 series and AMD’s AMD MI300 series.

Takeaway

Nvidia’s stock currently sports a Zacks Rank #1 (Strong Buy) with Target shares landing a Zacks Rank #3 (Hold). With Nvidia already benefiting from a positive trend of earnings estimate revisions, the chipmaker's robust quarterly growth does suggest more upside as well.

Meanwhile, Target shares are trading at their cheapest P/E valuation in over a decade although there could still be better buying opportunities ahead considering the retailers subpar Q3 results.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

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2 Small Cap AI Revolution Stocks for Your Watch List

Thu, 21 Nov 2024 23:56:00 +0000

(0:30) - How To Find Small Cap Stocks That Benefit From AI Growth
(5:50) - Strong Stocks To Keep On Your Watchlist Right Now
(32:30) - Episode Roundup: INOD & TSSI
Podcast@Zacks.com

Welcome to Episode #389 of the Value Investor Podcast.

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

With the end of the year approaching, and the stock market rally still intact, it’s time to look at some cheap Zacks #1 Rank (Strong Buy) stocks. This is the highest Zacks Rank and makes up just 5% of all the Zacks Ranked stocks.

But just because they are cheap, on a price-to-earnings or price-to-sales basis, and have the Strong Buy recommendation, which usually means the analysts are raising earnings estimates, doesn’t mean that they are a true value.

Values or Traps: How to Tell?

Remember, just because a stock has a low P/E or P/S ratio, doesn’t necessarily mean it’s a true value stock. The key is to look at the earnings growth that is expected for next year.

Is the company expected to grow earnings year-over-year?

Because while value investors want to buy cheap stocks, they also want companies that are growing earnings.

Screening for Cheap Strong Buy Stocks

Zacks has a premium screen called “Undervalued Zacks #1 Stocks” that looks for, obviously, Zacks #1 (Strong Buy) stocks, but also adds a cheapness component.

It must have a price-to-earnings (P/E) ratio under 20 and a price-to-sales (P/S) ratio under 1. A P/S ratio under 1.0 indicates an investor is getting the sales at a discount.

Also, to avoid microcaps, the screen looks for stocks that are over $5 and have average trading volume over 100,000 per day.

This screen returned 15 stocks.

5 Cheap Strong Buy Stocks: Values or Traps?

1. Dream Finders Homes, Inc. (DFH)

Dream Finders Homes is a Jacksonville, FL homebuilder with a market cap of $2.6 billion. It builds in 9 states including Florida and Texas.

Shares of Dream Finders Homes are down 14.2% year-to-date. It’s cheap with a forward P/E of just 8.1. Dream Finders Homes also has a P/S ratio of just 0.6. Earnings are expected to rise 20% in 2024.

It was recently announced that Dream Finders Homes was to join the S&P Small Cap 600 index.

Is Dream Finders Homes a value or a trap heading into 2025?

2. Tenet Healthcare Corp. (THC)

Tenet Healthcare is a large cap company in ambulatory surgery centers, surgical hospitals, outpatient facilities and other medical services.

Earnings are looking good in 2024. Tenet is expected to grow 2024 earnings by 63%. The analysts are bullish. 1 earnings estimate has been revised higher for 2024 and 2025 in the last week.

Shares of Tenet have soared 95% year-to-date but remain cheap. It has a forward P/E of just 13.5.

Is Tenet Healthcare a value or trap heading into 2025?

3. El Pollo Loco Holdings, Inc. (LOCO)

El Pollo Loco operates 495 restaurants in 7 states featuring fire grilled, fresh citrus marinated chicken. Celebrating its 50^th anniversary, El Pollo Loco intends to expand to El Paso, Boise, Kansas City and Seattle-Tacoma in 2025.

Shares of El Pollo Loco have rallied 37% year-to-date but it is still cheap, with a forward P/E of just 15.8. Earnings of this small cap restaurant company are expected to rise 16.9% in 2024.

Is El Pollo Loco a value or a trap heading into 2025?

4. The Greenbrier Companies, Inc. (GBX)

Greenbrier manufactures and leases freight railcars and offers freight services. It is a small cap company with a market cap of $2 billion.

An analyst is bullish. 1 earnings estimate has been revised higher in the last 30 days for both 2024 and 2025. Greenbrier’s earnings are expected to rise 4.8% in 2024.

Shares of Greenbrier are up 49% year-to-date and are trading near 5-year highs. Yet it’s still cheap with a forward P/E of just 12.4.

Is Greenbrier a value or a trap heading into 2025?

5. Pediatrix Medical Group, Inc. (MD)

Pediatrix Medical Group is a national provider of prenatal, neonatal, and pediatric services. It has a market cap of $1.3 billion.

Analysts are bullish. 1 earnings estimate has been revised higher on Pediatrix Medical Group for 2024 in just the last week. Earnings are expected to be up 7.1% this year.

Shares of Pediatrix Medical Group have jumped 58% year-to-date. But it remains a cheap stock with a forward P/E of just 10.8.

Is Pediatrix Medical Group a value or a trap heading into 2025?

What Else Should You Know about Values Versus Traps?

Tune into this week’s podcast to find out.

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Ross Stores (ROST) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Thu, 21 Nov 2024 23:30:02 +0000

For the quarter ended October 2024, Ross Stores (ROST) reported revenue of $5.07 billion, up 3% over the same period last year. EPS came in at $1.48, compared to $1.33 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $5.15 billion, representing a surprise of -1.56%. The company delivered an EPS surprise of +6.47%, with the consensus EPS estimate being $1.39.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Ross Stores performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Comparable store sales - YoY change: 1% versus the six-analyst average estimate of 2.6%.
Store count at end of period: 2,192 versus 2,197 estimated by four analysts on average.
Number of stores opened: 44 versus 47 estimated by three analysts on average.

View all Key Company Metrics for Ross Stores here>>>

Shares of Ross Stores have returned -4.1% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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Takeover Offer for Mako Gold Limited – Share Offer Unconditional and Status of Offers Conditions

Thu, 21 Nov 2024 23:09:48 +0000

Aurum Resources Limited (ASX: AUE) (Aurum) refers to its off-market takeover offer to acquire all of the ordinary shares (Share Offer) and certain options (Option Offers) in Mako Gold Limited (ASX:MKG) (Mako) pursuant to its bidder’s statement dated 30 October 2024 (as supplemented or replaced from time to time) (Bidder’s Statement).

HIGHLIGHTS

Aurum declares its takeover offer for all the shares in Mako Gold Limited unconditional
Aurum currently has a relevant interest in Mako of 39.86%
The Share Offer and Option Offers are due to close at 7.00pm (Sydney time) on 4 December 2024
The Mako directors have unanimously recommended that Mako Shareholders and Mako Optionholders accept the Offers in the absence of a Superior Proposal and have already accepted into the Offers
Aurum urges all remaining Mako Shareholders and Mako Optionholders to accept the Offers without delay

The Share Offer is to acquire all Mako Shares for the consideration of one (1) Aurum Share for every 25.1 Mako Shares held and will extend to Mako Shares issued during the Offer Period as a result of the conversion of Mako convertible securities.

The Option Offers are to acquire Mako Options on the basis of:

one (1) Aurum Share for every 248 Mako January 2025 Options held; and
one (1) Aurum Share for every 170 Mako June 2025 Options held.

FREEING THE SHARE OFFER OF CONDITIONS

Having reached a relevant interest of 39.86% in Mako, Aurum is pleased to declare the Share Offer unconditional and free of all defeating conditions as set out in section 13.8 of the Bidder’s Statement.

OFFERS CONDITIONS

The Share Offer is wholly unconditional.

The Option Offers remain subject to all defeating conditions in section 14.9 of the Bidder’s Statement. None of the defeating conditions in section 14.9 of the Bidder’s Statement have been fulfilled or waived.

RECOMMENDED OFFERS

The Mako directors have unanimously recommended that remaining Mako Shareholders and Mako Optionholders accept Aurum’s Offers without delay, in the absence of a Superior Proposal. Given its current relevant interest in Mako, Aurum believes it is unlikely that a Superior Proposal will eventuate.

Click here for the full ASX Release

This article includes content from Aurum Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

Markets Close in the Green, Recovered from Election "Hangover"

Thu, 21 Nov 2024 23:08:00 +0000

Thursday, November 21, 2024

For the second-straight trading session, market indexes fought off an early sag from a higher pre-market and closed into the green by the closing bell. This week has been a welcome one after last week’s trough — call it the hangover after the election results party. Investors aren’t exactly donning the lampshade again quite yet, but they’re feeling pretty refreshed.

The Dow gained +461 points for the session, +1.06%. The S&P 500 grew +38 points, +0.53%, while the Nasdaq was flat: +0.03%. Leading the way today was the small-cap Russell 2000 — with regional banks and other financials having a good day — +1.65% on the day. Bond yields buoyed slightly up to +4.428% on the 10-year and +4.355% on the 2-year.

Existing Home Sales, LEI Post Improved Numbers

Earlier this morning, after the market opened, we saw Existing Home Sales for October tick up to 3.96 million — still historically on the low end; this metric hasn’t been able to get much higher than +4.5% since the Fed started hiking interest rates — from a downwardly revised 3.83 million in September, which was the lowest print in the last 14 years. Expectations were for a slight improvement, and even with 7%+ mortgage rates, it’s nice to see sales of existing homes increase.

Leading Economic Indicators (LEI), also for October, were less bad than analysts had anticipated: -0.4% matched analyst expectations and just lower than the upwardly revised -0.3% for September. Manufacturer new orders was the leading negative contributor in this data. That said, the LEI continues to believe the overall U.S. economy is in good shape, not headed for an imminent recession.

Q3 Earnings Roundup: Ross Stores, The Gap

Ross Stores ROST was mixed in its Q3 earnings report after the closing bell this afternoon, with earnings of $1.48 per share a 9-cent beat over the Zacks consensus. Revenues, however, came in a bit short at $5.07 billion, down from the $5.15 billion analysts were expecting. Unseasonably warm weather put pressure on discretionary spending in the quarter, but investors were happy to bid up the stock +7% on the news in late trading.

Check out the updated Zacks Earnings Calendar here.

The Gap GAP stormed ahead with a big earnings beat — 72 cents per share versus 56 cents — on in-line revenues of $3.8 billion in the quarter, which were less than +1% year over year. The Gap signature stores performed the best, +3%, with Old Navy flat and Banana Republic a tad lower. Yet shares are +12% in today’s after-market ahead of the San Francisco retailer’s conference call.

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Gap (GAP) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates

Thu, 21 Nov 2024 23:00:04 +0000

Gap (GAP) reported $3.83 billion in revenue for the quarter ended October 2024, representing a year-over-year increase of 1.7%. EPS of $0.72 for the same period compares to $0.59 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $3.8 billion, representing a surprise of +0.87%. The company delivered an EPS surprise of +28.57%, with the consensus EPS estimate being $0.56.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Here is how Gap performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Comparable store sales - YoY change: 1% compared to the 1.2% average estimate based on four analysts.
Comparable Store Sales - Gap - YoY change: 3% compared to the 2.8% average estimate based on four analysts.
Number of Store Locations - Banana Republic - Total: 433 compared to the 433 average estimate based on four analysts.
Number of Store Locations - Old Navy North America: 1,255 compared to the 1,252 average estimate based on four analysts.
Number of Store Locations - Company-operated stores: 2,544 compared to the 2,543 average estimate based on four analysts.
Comparable store sales - Banana Republic - YoY change: -1% versus 0.3% estimated by four analysts on average.
Square Footage - Banana Republic North America: 3.3 Msq ft versus 3.26 Msq ft estimated by three analysts on average.
Number of Store Locations - Gap - Total: 586 compared to the 584 average estimate based on three analysts.
Square Footage - Total: 30.4 Msq ft compared to the 30.08 Msq ft average estimate based on three analysts.
Net Sales- Gap Global- Total: $899 million compared to the $887.94 million average estimate based on four analysts. The reported number represents a change of +1.4% year over year.
Net Sales- Banana Republic Global- Total: $469 million compared to the $455.92 million average estimate based on four analysts. The reported number represents a change of +2% year over year.
Net Sales- Old Navy Global- Total: $2.15 billion compared to the $2.15 billion average estimate based on four analysts. The reported number represents a change of +1.1% year over year.

View all Key Company Metrics for Gap here>>>

Shares of Gap have returned -4% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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Intuit (INTU) Reports Q1 Earnings: What Key Metrics Have to Say

Thu, 21 Nov 2024 23:00:04 +0000

For the quarter ended October 2024, Intuit (INTU) reported revenue of $3.28 billion, up 10.2% over the same period last year. EPS came in at $2.50, compared to $2.47 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $3.14 billion, representing a surprise of +4.58%. The company delivered an EPS surprise of +5.93%, with the consensus EPS estimate being $2.36.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Intuit performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net revenue- Consumer: $176 million compared to the $171.20 million average estimate based on six analysts. The reported number represents a change of -5.9% year over year.
Net revenue- Small Business & Self-Employed: $2.54 billion versus $2.50 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +8.5% change.
Net revenue- Credit Karma: $524 million compared to the $428.32 million average estimate based on five analysts. The reported number represents a change of +29.4% year over year.
Net revenue- ProTax: $39 million versus the five-analyst average estimate of $38.82 million. The reported number represents a year-over-year change of -7.1%.
Net revenue- Small Business & Self-Employed- Total Online Ecosystem: $1.94 billion versus $1.92 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +20.1% change.
Net revenue- Small Business & Self-Employed- Total Desktop Ecosystem: $601 million versus the five-analyst average estimate of $582.12 million. The reported number represents a year-over-year change of -17.2%.
Net revenue- Small Business & Self-Employed- Desktop Ecosystem- Desktop Services and Supplies: $305 million compared to the $330.16 million average estimate based on four analysts. The reported number represents a change of -12.9% year over year.
Net revenue- Small Business & Self-Employed- Online Ecosystem- Online Services: $978 million versus $967.92 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +19.3% change.
Net revenue- Small Business & Self-Employed- Online Ecosystem- QuickBooks Online Accounting: $965 million versus the four-analyst average estimate of $954.02 million. The reported number represents a year-over-year change of +20.9%.
Net revenue- Small Business & Self-Employed- Desktop Ecosystem- QuickBooks Desktop Accounting: $296 million compared to the $252.57 million average estimate based on four analysts. The reported number represents a change of -21.3% year over year.
Net revenue- Service: $2.89 billion versus $2.36 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +17.9% change.
Net revenue- Product and other: $394 million versus $672.80 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -25.4% change.

View all Key Company Metrics for Intuit here>>>

Shares of Intuit have returned +8.1% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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Prologis (PLD) Stock Drops Despite Market Gains: Important Facts to Note

Thu, 21 Nov 2024 23:00:03 +0000

In the latest trading session, Prologis (PLD) closed at $113.97, marking a -0.5% move from the previous day. This change lagged the S&P 500's daily gain of 0.53%. On the other hand, the Dow registered a gain of 1.06%, and the technology-centric Nasdaq increased by 0.03%.

Coming into today, shares of the industrial real estate developer had lost 5.21% in the past month. In that same time, the Finance sector gained 1.92%, while the S&P 500 gained 1.02%.

Market participants will be closely following the financial results of Prologis in its upcoming release. The company is forecasted to report an EPS of $1.39, showcasing a 10.32% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.94 billion, showing a 10.48% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.44 per share and revenue of $7.52 billion, which would represent changes of -3.03% and +10.31%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Prologis. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.03% fall in the Zacks Consensus EPS estimate. Prologis is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Prologis is presently being traded at a Forward P/E ratio of 21.05. This represents a premium compared to its industry's average Forward P/E of 12.19.

It is also worth noting that PLD currently has a PEG ratio of 3.02. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. PLD's industry had an average PEG ratio of 2.09 as of yesterday's close.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Kinder Morgan (KMI) Laps the Stock Market: Here's Why

Thu, 21 Nov 2024 22:50:03 +0000

Kinder Morgan (KMI) closed at $28.54 in the latest trading session, marking a +1.93% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.53%. Meanwhile, the Dow experienced a rise of 1.06%, and the technology-dominated Nasdaq saw an increase of 0.03%.

Shares of the oil and natural gas pipeline and storage company witnessed a gain of 13.04% over the previous month, beating the performance of the Oils-Energy sector with its gain of 3.73% and the S&P 500's gain of 1.02%.

The investment community will be paying close attention to the earnings performance of Kinder Morgan in its upcoming release. The company's upcoming EPS is projected at $0.33, signifying a 17.86% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.97 billion, reflecting a 1.7% fall from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.17 per share and revenue of $15.15 billion, indicating changes of +9.35% and -1.17%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Kinder Morgan. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.12% lower within the past month. At present, Kinder Morgan boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Kinder Morgan is presently trading at a Forward P/E ratio of 23.85. For comparison, its industry has an average Forward P/E of 17.31, which means Kinder Morgan is trading at a premium to the group.

We can also see that KMI currently has a PEG ratio of 3.88. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Oil and Gas - Production and Pipelines industry stood at 3.22 at the close of the market yesterday.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 163, positioning it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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UGI (UGI) Reports Q4 Loss, Lags Revenue Estimates

Thu, 21 Nov 2024 22:45:02 +0000

UGI (UGI) came out with a quarterly loss of $0.16 per share versus the Zacks Consensus Estimate of a loss of $0.30. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 46.67%. A quarter ago, it was expected that this natural gas and electric utilities operator. Would post a loss of $0.05 per share when it actually produced earnings of $0.06, delivering a surprise of 220%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

UGI, which belongs to the Zacks Utility - Gas Distribution industry, posted revenues of $1.24 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 19.50%. This compares to year-ago revenues of $1.4 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

UGI shares have lost about 1.2% since the beginning of the year versus the S&P 500's gain of 24.1%.

What's Next for UGI?

While UGI has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for UGI: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.27 on $2.15 billion in revenues for the coming quarter and $3.14 on $7.64 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Gas Distribution is currently in the bottom 46% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

New Jersey Resources (NJR), another stock in the same industry, has yet to report results for the quarter ended September 2024. The results are expected to be released on November 25.

This energy services holding company is expected to post quarterly earnings of $0.89 per share in its upcoming report, which represents a year-over-year change of +196.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

New Jersey Resources' revenues are expected to be $406.97 million, up 22.8% from the year-ago quarter.

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These Magnificent 7 Reports Impressed Investors: AMZN, TSLA

Thu, 21 Nov 2024 22:37:00 +0000

The Q3 reporting cycle has officially ended for the Mag 7 group following the release of Nvidia’s quarterly results yesterday. The group posted strong growth, though post-earnings reactions weren’t favorable for all.

But reports from Tesla TSLA and Amazon AMZN did spark post-earnings positivity, with shares of each seeing positive price action following their releases.

But what was there to like in each respective release? Let’s take a closer look.

Amazon's AWS Results Impress

Concerning headline figures in Amazon’s quarterly release, the company exceeded both consensus EPS and sales expectations handily. EPS grew a sizable 70% year-over-year, whereas sales of $60 billion reflected an 11% climb from the year-ago period.

However, the real highlight of the results was the AWS results. AWS sales jumped 19% year-over-year to $27.5 billion, matching the same growth pace we saw last quarter. While the growth pace didn’t reflect an acceleration, the results overall confirm underlying momentum.

Further, the profitability picture for AWS jumped higher, with operating income of $9.3 billion well above the $5.4 billion mark in the year-ago period. Below is a chart illustrating the company’s AWS results against our consensus expectations, with the recent $27.5 billion print falling $127 million short.

Image Source: Zacks Investment Research

Like Tesla, analysts raised their earnings expectations for Amazon following the favorable release, with the stock boasting a Zacks Rank #2 (Buy).

Image Source: Zacks Investment Research

Overall, the company’s dominant stance in the cloud paints a bright outlook for the company, particularly in the midst of this AI frenzy that we’ve all become accustomed to. AWS is the dominant player in the cloud computing market, flexing a significant market share globally. It provides various services, including computing power, storage, databases, and AI/ML tools.

Tesla Sees Higher Profitability

While EV delivery/production numbers were important, the real highlight of the release that caused shares to perk up was margin expansion, with the company’s gross margin expanding nicely to 19.8% vs. a 17.9% print in the same period last year.

Please note that the chart’s values are calculated on a trailing twelve-month basis.

Image Source: Zacks Investment Research

Notably, Tesla reported its lowest-ever level of cost of goods sold (COGS) per vehicle throughout the period, which bodes favorably for upcoming periods as well. Analysts have raised their EPS expectations across the board following the release, with the stock now holding the highly-coveted Zacks Rank #1 (Strong Buy).

Image Source: Zacks Investment Research

The stock’s current momentum is undeniable, partly boosted by the recent U.S. election. Growth is expected to resume in its next fiscal year, with our consensus FY25 expectations suggesting 30% EPS growth on 16% higher sales.

Bottom Line

With Nvidia's quarterly release finally out of the way, the Q3 reporting cycle for the broader Mag 7 group has ended. The group overall posted strong growth, though Amazon AMZN and Tesla TSLA were among the few to see post-earnings momentum.

A notable boost in profitability helped vault Tesla shares higher, with the stock also benefiting from the recent U.S. election. The company overall remains the prime selection for EV exposure, with growth expected to return in a big way during its next fiscal year.

A strong showing from AWS in Amazon’s release aided the bullish action post-earnings, with the results reflecting underlying momentum. The company remains a solid pick for the AI frenzy given its dominant cloud computing stance, with an upcoming holiday season also potentially providing near-term tailwinds.

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Altech – Cerenergy® Battery Project Funding Update

Thu, 21 Nov 2024 22:32:51 +0000

Altech Batteries Limited (Altech/Company) (ASX: ATC) (FRA: A3Y) is pleased to announce an update on funding of the CERENERGY® sodium-chloride solid-state battery project in Saxony, Germany.

Highlights

Financing plan and target structure in place
Funding investment teaser documents and data room established
Reach out to 10 commercial banks and 2 venture debt funds – all positive interests
Shortlisting potential lead bank
Equity Funding – potential sale of minority interest of the project to realise capital and strategic value
Discussions and draft term sheets shared with investors
Offtake agreement LOI signed with ZISP

On 14 June 2024, the Company, through its Germany subsidiary Altech Batteries GmbH (“ABG”), announced the appointment of global big four professional services firm (“funding adviser”) to assist in securing finance for the construction of Altech’s 120MWh CERENERGY® battery manufacturing plant in Germany. The project's financing strategy is structured across three key areas: debt, equity, and grants. These sources will cover not only the capital expenditures but also financing costs, working capital, debt service coverage, and an additional contingency for potential business interruptions, See Figure 1.

CEO and MD Iggy Tan Discusses CERENERGY® Funding

Either click the thumbnail below, scan the QR code below or use the YouTube link https://youtu.be/EgMBHp1SRCA to listen to the discussion.

181,057,000 € 20%-30% 40-50% 30% Figure 1 – Financing Plan and Structure

DEBT PROCESS

A funding invitation document (investment teaser) has been finalised and distributed to various financial institutions for debt funding in the project. The Group has engaged ten commercial banks and two venture debt funds in a first market round, receiving predominantly positive initial feedback. Several of these institutions have expressed strong interest in participating in the financing. The Group is now in the process of shortlisting potential lenders to identify the most suitable financial partners for the project. To support a thorough due diligence process, a secure data room has been set up, providing detailed project information to interested financiers and ensuring full transparency. The DFS financial model has been adjusted to stress-test various funding scenarios tailored to the lending institutions ABG has engaged with. Further steps involve determining the most suitable banks to form a syndicate and appointing a lead bank to guide the lending process. This syndicate will play a crucial role in structuring the financing arrangement to meet the project's requirements.

EQUITY FUNDING

In addition to ongoing debt financing efforts, the Group has engaged several equity advisers to support the equity component of the project's funding package. As part of this strategy, the Altech Group plans to divest a minority interest in the project to one or two strategic investors. This partial divestment aims to attract investors who can bring not only capital, but also strategic value to the project, aligning with the CERENERGY® project’s long-term growth and sustainability objectives.

The Group is specifically targeting large utility groups, data centre operators, investment funds and corporations that are heavily involved in the green energy transition. These entities are seen as ideal partners due to their strong alignment with the project’s focus on sustainable energy solutions, as well as their capacity to provide substantial financial backing.

To date, significant progress has been made in these equity discussions. Several Non-Disclosure Agreements (NDAs) have been signed, allowing for deeper engagement with prospective investors. Altech has also circulated draft term sheets to a number of interested parties, outlining the proposed terms and conditions for investment. These documents serve as a starting point for negotiations, paving the way for more detailed discussions regarding the potential equity stake and partnership structure.

The strategic decision to divest a portion of the project is aimed at reducing the overall financial burden on the Company while bringing in experienced partners who can contribute to the project’s success. By securing both the equity and debt components, the Company aims to finalise the full financing package, ensuring the timely construction and commissioning of the CERENERGY® battery plant. The next steps will focus on advancing these discussions and converting interest into formal commitments, which are crucial for moving forward with the project.

OFFTAKE ARRANGEMENTS

On 13 September 24, Altech announced the execution of an Offtake Letter of Intent between Zweckverband Industriepark Schwarze Pumpe (ZISP) and Altech Batteries GmbH. Under this Offtake Letter of Intent (LOI), ZISP will purchase 30 MWh of energy storage capacity annually, consisting of 1MWh GridPacks, for the first five years of production. The price of these batteries has been agreed and aligns with the sales price contained within Altech’s Definitive Feasibility Study. The purchase of these batteries is subject to performance tests, battery specifications and the batteries meeting customer requirements. This offtake LOI constitutes an important aspect of the financing process. This lays the foundation for additional offtake arrangements, which are currently in progress. These agreements are vital for advancing our financing and construction timelines for the CERENERGY® project.

CEO and MD Mr Iggy Tan stated "The funding stage of any project is the most complex and challenging process of any project. Securing a big four funding adviser with expertise and a global network is a major step in our financing efforts. Altech is advancing both debt and equity discussions, along with offtake agreements, to fully fund the CERENERGY® project. We are seeing strong interest, especially from European banks and potential equity partners”.

Click here for the full ASX Release

This article includes content from Altech Batteries, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

Here's What Key Metrics Tell Us About NetApp (NTAP) Q2 Earnings

Thu, 21 Nov 2024 22:30:04 +0000

NetApp (NTAP) reported $1.66 billion in revenue for the quarter ended October 2024, representing a year-over-year increase of 6.2%. EPS of $1.87 for the same period compares to $1.58 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.65 billion, representing a surprise of +0.79%. The company delivered an EPS surprise of +4.47%, with the consensus EPS estimate being $1.79.

Here is how NetApp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Gross margin - Product - Non-GAAP: 60.3% versus 59.8% estimated by seven analysts on average.
Total Revenue - % Change: 6% versus 5.4% estimated by six analysts on average.
Gross margin - Services - Non-GAAP: 82.1% compared to the 81.6% average estimate based on six analysts.
Geographic Mix - EMEA: 33% versus 33.5% estimated by four analysts on average.
Geographic Mix - Americas: 52% compared to the 50.1% average estimate based on four analysts.
Geographic Mix - Asia Pacific: 15% compared to the 16.4% average estimate based on four analysts.
Net revenues- Services: $890 million versus $883.74 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +4% change.
Net revenues- Product: $768 million versus $759.15 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +8.8% change.
Net revenues- Public Cloud: $168 million versus $162.38 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +9.1% change.
Net revenues- Hybrid Cloud: $1.49 billion compared to the $1.48 billion average estimate based on five analysts. The reported number represents a change of +5.8% year over year.
Net revenues- Support: $635 million versus $644.64 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +1.9% change.
Net revenues- Professional and Other Services: $87 million versus $82.21 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.1% change.

View all Key Company Metrics for NetApp here>>>

Shares of NetApp have returned +3.7% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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Elastic (ESTC) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Thu, 21 Nov 2024 22:30:04 +0000

Elastic (ESTC) reported $365.36 million in revenue for the quarter ended October 2024, representing a year-over-year increase of 17.6%. EPS of $0.59 for the same period compares to $0.37 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $354.24 million, representing a surprise of +3.14%. The company delivered an EPS surprise of +55.26%, with the consensus EPS estimate being $0.38.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Elastic performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenue- Services: $24.55 million compared to the $23.69 million average estimate based on seven analysts. The reported number represents a change of +7.4% year over year.
Revenue- Subscription: $340.81 million versus $330.60 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +18.4% change.
Revenue- Subscription- Elastic Cloud: $168.84 million versus $163.59 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +25.1% change.
Revenue- Subscription- Other subscription: $171.97 million versus $167.16 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +12.6% change.

View all Key Company Metrics for Elastic here>>>

Shares of Elastic have returned +14.1% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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US utilities want Trump, Republicans to save IRA tax credits, Edison CEO says

Thu, 21 Nov 2024 22:28:01 +0000

Copart, Inc. (CPRT) Matches Q1 Earnings Estimates

Thu, 21 Nov 2024 22:25:04 +0000

Copart, Inc. (CPRT) came out with quarterly earnings of $0.37 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.

A quarter ago, it was expected that this company would post earnings of $0.37 per share when it actually produced earnings of $0.33, delivering a surprise of -10.81%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Copart, which belongs to the Zacks Auction and Valuation Services industry, posted revenues of $1.15 billion for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 3.60%. This compares to year-ago revenues of $1.02 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Copart shares have added about 13.1% since the beginning of the year versus the S&P 500's gain of 24.1%.

What's Next for Copart?

While Copart has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

Ahead of this earnings release, the estimate revisions trend for Copart: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.37 on $1.12 billion in revenues for the coming quarter and $1.54 on $4.6 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Auction and Valuation Services is currently in the top 1% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Braze, Inc. (BRZE), another stock in the broader Zacks Business Services sector, has yet to report results for the quarter ended October 2024. The results are expected to be released on December 9.

This company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +80%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Braze, Inc.'s revenues are expected to be $148.21 million, up 19.6% from the year-ago quarter.

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Logility Supply Chain Solutions (LGTY) Beats Q2 Earnings Estimates

Thu, 21 Nov 2024 22:25:04 +0000

Logility Supply Chain Solutions (LGTY) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 37.50%. A quarter ago, it was expected that this enterprise software provider would post earnings of $0.07 per share when it actually produced earnings of $0.12, delivering a surprise of 71.43%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Logility Supply Chain Solutions, which belongs to the Zacks Technology Services industry, posted revenues of $25.29 million for the quarter ended October 2024, missing the Zacks Consensus Estimate by 3.19%. This compares to year-ago revenues of $25.69 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Logility Supply Chain Solutions shares have lost about 2% since the beginning of the year versus the S&P 500's gain of 24.1%.

What's Next for Logility Supply Chain Solutions?

While Logility Supply Chain Solutions has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

Ahead of this earnings release, the estimate revisions trend for Logility Supply Chain Solutions: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.08 on $25.77 million in revenues for the coming quarter and $0.38 on $105.01 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Arbe Robotics Ltd. (ARBE), another stock in the same industry, has yet to report results for the quarter ended September 2024. The results are expected to be released on November 27.

This company is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of +8.3%. The consensus EPS estimate for the quarter has been revised 18.2% higher over the last 30 days to the current level.

Arbe Robotics Ltd.'s revenues are expected to be $0.5 million, up 4.2% from the year-ago quarter.

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Gap (GAP) Beats Q3 Earnings and Revenue Estimates

Thu, 21 Nov 2024 22:25:04 +0000

Gap (GAP) came out with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 28.57%. A quarter ago, it was expected that this clothing chain would post earnings of $0.39 per share when it actually produced earnings of $0.54, delivering a surprise of 38.46%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Gap, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $3.83 billion for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 0.87%. This compares to year-ago revenues of $3.77 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Gap shares have lost about 1.4% since the beginning of the year versus the S&P 500's gain of 24.1%.

What's Next for Gap?

While Gap has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

Ahead of this earnings release, the estimate revisions trend for Gap: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.36 on $4.04 billion in revenues for the coming quarter and $1.87 on $14.95 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Apparel and Shoes is currently in the top 50% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Vera Bradley (VRA), is yet to report results for the quarter ended October 2024.

This handbag and accessories company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of -68.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Vera Bradley's revenues are expected to be $98.7 million, down 14.2% from the year-ago quarter.

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Elastic (ESTC) Tops Q2 Earnings and Revenue Estimates

Thu, 21 Nov 2024 22:15:03 +0000

Elastic (ESTC) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 55.26%. A quarter ago, it was expected that this software developer would post earnings of $0.25 per share when it actually produced earnings of $0.35, delivering a surprise of 40%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Elastic, which belongs to the Zacks Internet - Software industry, posted revenues of $365.36 million for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 3.14%. This compares to year-ago revenues of $310.61 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Elastic shares have lost about 21.4% since the beginning of the year versus the S&P 500's gain of 24.1%.

What's Next for Elastic?

While Elastic has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

Ahead of this earnings release, the estimate revisions trend for Elastic: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.40 on $367.04 million in revenues for the coming quarter and $1.53 on $1.44 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Veeva Systems (VEEV), another stock in the same industry, has yet to report results for the quarter ended October 2024. The results are expected to be released on December 5.

This provider of cloud-based software services for the life sciences industry is expected to post quarterly earnings of $1.57 per share in its upcoming report, which represents a year-over-year change of +17.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Veeva Systems' revenues are expected to be $684.18 million, up 11% from the year-ago quarter.

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NetApp (NTAP) Beats Q2 Earnings and Revenue Estimates

Thu, 21 Nov 2024 22:15:03 +0000

NetApp (NTAP) came out with quarterly earnings of $1.87 per share, beating the Zacks Consensus Estimate of $1.79 per share. This compares to earnings of $1.58 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 4.47%. A quarter ago, it was expected that this data storage company would post earnings of $1.46 per share when it actually produced earnings of $1.56, delivering a surprise of 6.85%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

NetApp, which belongs to the Zacks Computer- Storage Devices industry, posted revenues of $1.66 billion for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 0.79%. This compares to year-ago revenues of $1.56 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

NetApp shares have added about 40% since the beginning of the year versus the S&P 500's gain of 24.1%.

What's Next for NetApp?

While NetApp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

Ahead of this earnings release, the estimate revisions trend for NetApp: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.83 on $1.67 billion in revenues for the coming quarter and $7.09 on $6.59 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer- Storage Devices is currently in the top 12% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Pure Storage (PSTG), is yet to report results for the quarter ended October 2024. The results are expected to be released on December 3.

This data storage company is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of -14%. The consensus EPS estimate for the quarter has been revised 1.5% lower over the last 30 days to the current level.

Pure Storage's revenues are expected to be $814.77 million, up 6.8% from the year-ago quarter.

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Ross Stores (ROST) Q3 Earnings Surpass Estimates

Thu, 21 Nov 2024 22:10:04 +0000

Ross Stores (ROST) came out with quarterly earnings of $1.48 per share, beating the Zacks Consensus Estimate of $1.39 per share. This compares to earnings of $1.33 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 6.47%. A quarter ago, it was expected that this discount retailer would post earnings of $1.49 per share when it actually produced earnings of $1.59, delivering a surprise of 6.71%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Ross Stores, which belongs to the Zacks Retail - Discount Stores industry, posted revenues of $5.07 billion for the quarter ended October 2024, missing the Zacks Consensus Estimate by 1.56%. This compares to year-ago revenues of $4.92 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Ross Stores shares have added about 0.7% since the beginning of the year versus the S&P 500's gain of 24.1%.

What's Next for Ross Stores?

While Ross Stores has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

Ahead of this earnings release, the estimate revisions trend for Ross Stores: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.65 on $5.95 billion in revenues for the coming quarter and $6.11 on $21.25 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Discount Stores is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Burlington Stores (BURL), is yet to report results for the quarter ended October 2024. The results are expected to be released on November 26.

This discount retailer is expected to post quarterly earnings of $1.54 per share in its upcoming report, which represents a year-over-year change of +57.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Burlington Stores' revenues are expected to be $2.56 billion, up 11.9% from the year-ago quarter.

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Intuit (INTU) Beats Q1 Earnings and Revenue Estimates

Thu, 21 Nov 2024 22:10:03 +0000

Intuit (INTU) came out with quarterly earnings of $2.50 per share, beating the Zacks Consensus Estimate of $2.36 per share. This compares to earnings of $2.47 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 5.93%. A quarter ago, it was expected that this maker of TurboTax, QuickBooks and other accounting software would post earnings of $1.86 per share when it actually produced earnings of $1.99, delivering a surprise of 6.99%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Intuit, which belongs to the Zacks Computer - Software industry, posted revenues of $3.28 billion for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 4.58%. This compares to year-ago revenues of $2.98 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Intuit shares have added about 4.1% since the beginning of the year versus the S&P 500's gain of 24.1%.

What's Next for Intuit?

While Intuit has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

Ahead of this earnings release, the estimate revisions trend for Intuit: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $3.17 on $3.87 billion in revenues for the coming quarter and $19.30 on $18.24 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Software is currently in the top 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Adobe Systems (ADBE), is yet to report results for the quarter ended November 2024. The results are expected to be released on December 11.

This software maker is expected to post quarterly earnings of $4.66 per share in its upcoming report, which represents a year-over-year change of +9.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Adobe Systems' revenues are expected to be $5.54 billion, up 9.7% from the year-ago quarter.

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4 Indicators to Keep on Top of Recession Worry

Thu, 21 Nov 2024 22:10:00 +0000

Our Chief Equity Strategist and Economist, John Blank, says there are 4 ways to watch for a U.S. recession.

He’s here with us now to explain.

1. What are the 4 ways?

2. These are tracked on the FRED website, correct?

3. You’ve written that there are three ways to interpret these indicators, What are those ways?

4. What are these indicators saying about a “soft landing” in our economy for next year?

5. What about those still worried about a surprise recession next year?

6. Is there fading optimism beginning to emerge for more rate cuts?

7. What impact do you see Donald Trump’s return to the U.S. presidency having either to the economy or the markets

8. What’s your outlook for global growth for next year?

9. Might there be any wild cards lurking in the shadows that would alter your outlook?

10. A number of top STRONG BUY large cap stock picks continue to be

produced. Among them, Carvana CVNA, Advantest ATEYY, and Vertiv Holdings Co. VRT.

Our Chief Equity Strategist & Economist, John Blank, on U.S. recession indicators and the economy.

With John, I’m Terry Ruffolo.

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Gold prices rise as Russia-Ukraine tensions fuel haven demand

Thu, 21 Nov 2024 22:03:36 +0000

What's the Outlook for Stocks in 2025?

Thu, 21 Nov 2024 22:00:00 +0000

2024 has been an excellent year for stocks. If you want a confirming fact: The S&P500 has been up +23.36% YTD to Nov 20^th, 2024. Yet, what can investors expect from owning stocks, going forward?

Our Chief Equity Strategist and Economist, John Blank, is here with the answer.

1. That’s the $64 thousand dollar question. What can investors expect for U.S. stocks going forward? Continued rally?

2. What supports that?

3. What role do you expect earnings to play going forward?

4. What about volatility?

5. Do you see Fed Chairman Powell’s recent signal that the Fed won’t hurry to make interest rate cuts as a negative for stocks?

6. What about Nvidia’s earnings results relative to the AI trade?

7. What’s your 2025 S&P 500 target?

8. Which sectors do you expect to lead the market going into the New Year?

9. What do you see for international stocks?

10. More Large Cap, Strong Buy, stocks on your radar include Ingredion INGR, Celestica, Inc. CLS, and Leonardo DRS Inc. DRS.

Our Chief Equity Strategist and Economist, John Blank, on stocks. With John, I’m Terry Ruffolo.

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Top 10 Gold Reserves by Country

Thu, 21 Nov 2024 21:55:00 +0000

Gold is one of the most important metals on the planet. For millennia it has been used in jewelry, art and currency, capturing the collective imagination as a thing of wonder. Gold's association with royalty and wealth has inspired explorers and treasure hunters alike, who put themselves at risk for a chance to strike it rich.

Today, gold's hold on us as a precious metal is no less powerful. Still used for jewelry and as a store of wealth, the metal also has a variety of modern industrial and electronic applications.

Even though gold seems to be everywhere, in reality it's a finite resource. Only 244,000 metric tons of gold have ever been mined, and two-thirds of that has been extracted since 1950. Comparing that amount to the more than 700 million metric tons of copper that have been pulled from the ground provides an idea of how precious a resource gold truly is.

For investors interested in the yellow metal and the companies that mine it, it’s important to understand global gold reserves. This data can provide critical information on the long-term viability of supply and which countries have room to grow.

This article uses the most recent data from the US Geological Survey, which uses metric tons for its figures. As gold is often measured and discussed in ounces, this article will contain a mix of the two measurements. To add some perspective, 1 metric ton of gold is equal to 35,274 ounces — this means at the recent gold price of US$2,600 per ounce, 1 metric ton is over US$92 million worth of gold.

According to the US Geological Survey, identified economic gold reserves currently stand at just 59,000 metric tons globally. Read on to learn the top 10 gold producers by country.

1. Australia

Gold reserves: 12,000 metric tons

Outsized is one way to describe Australia. The sixth largest country by land area, it has the most gold reserves of any nation, coming in at 12,000 metric tons. Australia has been going through somewhat of a modern boom and has been consistent in producing more than 300 metric tons of gold every year since 2017. Over 60 percent of its gold deposits are in Western Australia.

In 2023, Australia's Newcrest Mining merged with rival Newmont (TSX:NGT,NYSE:NEM) to form the largest gold mining company in the world. Under its banner it controls the two largest gold mining operations in Australia, Boddington and Cadia.

2. Russia

Gold reserves: 11,100 metric tons

Russia has the largest land area of any country, and unsurprisingly is among the top countries for gold reserves. It boasts an impressive 11,100 MT, up from the 6,800 metric tons it had at the end of 2022. Russia’s output was steady in 2023 with 310 MT extracted.

Polyus operates four of the country's five largest mines, including the Olimpiada open-pit mine in Russia’s Krasnoyarsk region.

Despite steady production, Russian gold is having difficulties reaching most markets following the country's invasion of Ukraine. The London Bullion Market Association halted trading and removed Russian refiners from its accredited list in March 2022. However, a significant portion of the metal was exported to the United Arab Emirates following the sacntions, according to Reuters, and Russian gold has also made its way into the country's stockpiles.

3. South Africa

Gold reserves: 5,000 metric tons

South Africa remains a powerhouse in terms of global gold reserves, and the country's Witwatersrand Basin is among the top gold jurisdictions in the world. However, while South Africa remains comfortably in the top three countries for reserves with 5,000 metric tons, the country has lost some of its luster when it comes to production. At the turn of the century, South Africa was the top gold-producing country, with 431 metric tons extracted in 2000. The country's output has slowly fallen in the decades since though, and has hit all-time lows in recent years — South Africa extracted just 100 metric tons in 2023.

One reason for lowered production is decreasing gold grades, which have led miners operating in the country to move to greater depths. In fact, as of 2019, eight of South Africa's gold mines were among the 10 deepest mines for any commodity, with AngloGold Ashanti's (NYSE:AU,JSE:ANG) Mponeng gold mine topping the list at 2.4 kilometers to over 3.9 kilometers below surface. This has made industrial mining operations prohibitively expensive and more dangerous.

Other factors negatively affecting the mining sector are constant power outages in recent years and limited investment in exploration outside the Witwatersrand Basin.

4. United States

Gold reserves: 3,000 metric tons

Gold reserves in the US have remained steady at 3,000 metric tons since 2012. The country is home to well-developed infrastructure, highly experienced companies and an advanced workforce. However, over the last decade, production and refinement of the yellow metal in the US has been in decline, dropping from 230 metric tons in 2012 to 170 metric tons in 2023.

One of the largest operations in the country is Nevada Gold Mines (NGM), a joint venture between Barrick Gold (TSX:ABX,NYSE:GOLD) and Newmont. NGM includes three of the largest gold mines in the world: Goldstrike, Carlin and Cortez.

5. China

Gold reserves: 3,000 metric tons

China's importance as a gold miner has been growing over recent year and made significant gains, moving from number nine on our list with 1,900 metric tons in 2022, to number five with 3,000 metric tons in 2023. Additionally, China's output has been the strongest of the top ten producing 370 metric tons of gold last year.

While some deposits have been found in the western part of the country, the largest operations are in Shandong, which is home to the largest find in the country: the Xiling mine. Xiling, which is owned by Shandong Gold Group (SHA:600547), contains more than 580 metric tons of gold in reserves. The mine is expected to process 10,000 metric tons of ore per day for the next 30 years.

In addition to its mining output, China has also been driving the price of gold over the past couple years with significant purchases by the People's Bank of China which now holds an estimated 2,264 metric tons of gold.

6. Indonesia

Gold reserves: 2,600 metric tons

Home to remote mining sites and enormous reserves, Indonesia is a destination for gold companies looking to stake a claim.

The country is home to the Grasberg complex, one of the world's largest gold operations and host to 23.9 million recoverable gold ounces. Operated by Freeport-McMoRan (NYSE:FCX), Grasberg includes several underground mines and the Kucing Liar deposit, which is currently being developed.

Once Kucing Liar is operational, Freeport expects it to deliver an additional 520,000 ounces of gold per year for 6 million total ounces between 2029 and 2041.

7. Brazil

Gold reserves: 2,400 metric tons

Home to the first modern gold rush over 300 years ago, Brazil has an undeniable history with the precious metal. The country currently has 2,400 metric tons of reserves, although it extracted only 60 metric tons in 2023.

Companies like G Mining Ventures (TSXV:GMIN,OTCQX:GMINF) with its Tocantinzinho asset may boost Brazil’s gold position in the years to come.

Much like Peru below, gold mining in Brazil has a darker side as well. Illegal operators, many of which have found their into mining through social media sites like YouTube and TikTok, are impacting both sensitive rainforest ecosystems and local Indigenous communities. Despite government crackdowns, new operations continue to pop up throughout the Amazon.

8. Peru

Gold reserves: 2,300 metric tons

Gold has been an important part of Peru’s economy for centuries. The country has a well-documented mining industry, and it ranks as one of the top nations in the world when it comes to gold reserves. Between 2012 and 2022, Peru increased its gold reserves from 2,000 metric tons to 2,900 metric tons, but saw a fall off in 2023 with just 2,300 metric tons.

During this time, production fell from 160 metric tons to 90 metric tons. This fall was due to a combination of factors, including increased regulation to combat illegal operations, instability in the country and COVID-19 restrictions.

Large players make up the bulk of Peru's gold industry, with major miner Newmont leading the way at Yanacocha, the biggest gold mine in Peru. There are also artisanal operations in the country, along with operations being run by criminal organizations. While environmental concerns are common in the mining industry, illegal and small-scale gold miners often employ mercury during the extraction process, which is very damaging to the environment.

To counteract illegal mining operations, the Peruvian government instituted Operation Mercury in 2019, which involved military interventions at illegal mine sites and the destruction of mining operations. For small-scale and artisanal mining, programs such as the Fairmined Ecological Gold certification exist to encourage environmentally friendly mining methods by introducing premium prices for gold that meets particular requirements. This also allows gold buyers to identify gold from legal operations that reduce the use of toxic treatments like mercury during the extraction process.

9. Canada

Gold reserves: 2,300 metric tons

Canada has a rich history of gold mining since the metal was first discovered in Québec in the early 1800s. Mining operations can now be found across Canada, but more than 70 percent of the country's gold is produced in Ontario and Québec. Other significant producers are BC with 9 percent, the Yukon with 4 percent and Manitoba with 2 percent.

Canada’s gold reserves have remained constant since 2012 and currently sit at 2,300 metric tons. However, the country has more than doubled its gold output in that time, jumping from 97 metric tons in 2012 to 200 metric tons in 2023.

Because of its well-established natural resource sector, Canada is leading the way in sustainable initiatives to protect the environment and communities. The Mining Association of Canada’s Toward Sustainable Mining initiative has been adopted by organizations around the world, including those in Finland, Brazil and the Philippines.

10. Uzbekistan

Gold reserves: 1,800 metric tons

Even though the first gold mine in Uzbekistan began operating in the 1960s, it’s only recently that the country has begun to develop its resources. After gaining independence from the Soviet Union in 1991, the mining industry in Uzbekistan was in disarray, and most mining projects had stalled. Production hit a low of 65 metric tons per year in the mid-1990s, but since 2020 output has nearly doubled to 100 metric tons per year.

Most of Uzbekistan's gold is mined at the massive state-owned Muruntau gold mine in the Qizilqum Desert. This open-pit mine is calculated to hold more than 4,000 MT in total reserves.

Economically, gold is one of Uzbekistan's most important exports, generating US$3.42 billion during the first quarter of 2024.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

A Guide to Investing in Physical Gold (Updated 2024)

Thu, 21 Nov 2024 21:50:00 +0000

Gold is known as an attractive safe-haven investment and has been used to store wealth during volatile times through history.

It has interesting currency-like tendencies, and retains its purchasing power better than paper currencies.

For that reason, gold market analysts typically recommend that investors build a diversified portfolio with a portion of their wealth in gold bullion. Here the Investing News Network explains what's involved in building and managing a physical gold portfolio.

What physical gold product is best to buy?
What is the difference between the gold spot price and retail price?
Where can investors buy physical gold?
How and when to sell physical gold?
How should physical gold be stored?
Is it possible to purchase physical gold through the futures market?
What are some alternatives to physical gold?

What physical gold product is best to buy?

Physical gold investors are generally looking for items that are 0.999 fine. Most gold bullion coins fit this description, including the Canada Gold Maple Leaf, the South African Krugerrand and the American Buffalo Gold coin. American Gold Eagles are popular with investors, but they are have a much lower purity at 91.67 percent.

An alternative to gold coins is gold rounds, which are also 0.999 fine but are not legal tender. This makes them slightly cheaper than gold coins, as the premium for gold coins is higher because of the credibility that comes from being fabricated by government mints.

Both gold coins and gold rounds come in various sizes, usually ranging from 1/10 ounce to 1 ounce, though other less common sizes are available.

Gold bars are another popular option. These also come in a variety of sizes, and as choices can range from a 1 gram bar to 400 ounce bar, this category of products can accommodate a range of investors. They are also 0.999 fine.

When the objective is to get the most metal for the least money, it’s generally best to shop for gold rounds and gold bars, which tend to be cheaper than gold coins of the same weight.

Another factor that may need to be considered is the amount to be invested. Bars may be the best option for large investments since bigger sizes are available. Further, it is often easier to manage large products than it is to manage an array of smaller gold items.

However, physical gold investors also need to give forethought to when they may want to sell their gold. Large products will require liquidating a more sizeable portion of one’s gold portfolio, and such products may be more difficult to sell in some instances. Individuals making ongoing or significant investments may want to consider purchasing gold in various weights.

What is the difference between the gold spot price and retail price?

Investing in physical gold is often oversimplified, and the misconceptions can begin with pricing.

A spot price by definition is the cost of immediate delivery, and is a way to gauge the legitimacy of an ask or retail price. The spot price is what is reported on and what most gold price charts will show. Unfortunately, some investors don't realize until they make their first purchase that the spot price is not what one actually pays for physical gold.

The retail price of gold is based off the spot price but includes a markup, also called a premium. In addition to premiums, there are numerous other expenses investors should be prepared to pay when purchasing pure gold, including shipping, handling and insurance. In some instances, prices may be higher for individuals who choose to pay with a credit card.

There may also be processing fees to own the yellow metal or fees for small lot purchases. On the other hand, gold prices are sometimes lower for those purchasing larger quantities.

Where can investors buy physical gold?

Gold buying can be done through government mints, private mints, precious metals dealers and even jewelry stores. Some of these locations will offer numismatic coins or other gold items geared toward collecting and gift giving, which bullion investors should generally avoid. These products are for play in a different ball game and are not what the average gold investor needs.

When choosing where to buy gold, it is again best to give thought to reselling it. Some businesses that sell gold will also buy it back. Some will even buy gold that they didn’t sell, but may pay lower prices.

Furthermore, premiums and fees are not one size fits all when buying physical gold. Different sellers may offer the same items at different prices, so investors should take the time to find the best deal.

How and when to sell physical gold?

Just as buying gold often provides investors with a pricing wakeup call, investors who decide to sell are sometimes surprised at the prices they receive. That is because the buyback price, or bid, is lower than the asking price. The difference between the two is referred to as the spread, and it is a loss that the seller initially bears.

For example, if an investor pays US$2,500 for a 1 ounce Canadian Maple Leaf and decides to sell it back the same day, the buying price may only be US$2,419. The spot price is generally in the middle of the two.

Furthermore, there are usually other costs involved with selling gold, including shipping, insurance and liquidation fees. Some businesses have minimum purchase requirements, and depending upon payment arrangements, it may be necessary for the investor to pay bank wire fees or postage to receive a check.

Individuals who want to sell their gold quickly may consider “we buy gold” businesses as a convenient alternative. However, while these businesses can serve as a quick source of liquidity, they are usually not the best option, as their underlying business strategy often involves making lower-than-average offers, meaning you will receive less than you would at a bullion exchange or mint.

The reality is that, given the spread and the costs associated with acquiring and selling gold, a sharp price move is generally needed to turn a profit. Investors are encouraged to consider building positions in physical gold as a long-term investment, possibly even for retirement savings.

How should physical gold be stored?

Determining the best storage option involves weighing risks against costs.

Paying for secure storage eats into profits from the metal’s gains, so some people choose to store their gold at home or in their office. In theory, that is the riskiest option as it involves the highest potential for loss due to theft or disaster. But in many instances these risks are not substantial enough to justify the cost of other storage options. For home storage of smaller amounts of gold, mitigate theft risk by keeping it hidden somewhere that is less likely to be discovered. Of course, a sturdy home safe comes with an upfront cost and a footprint, but it can help protect valuables from theft and some disasters.

As mentioned, gold can also be stored in a depository or safe deposit box for a cost. If an investor chooses this route, there are a few things to consider. Rates can vary between banks, so price comparison is important. Additionally, the contents of safety deposit boxes in financial institutions are generally not insured. Last but not least, some banks do not technically permit the storage of bullion, so it's important to make sure it's possible before signing a terms and conditions agreement. The information should be listed in the agreement as well.

Is it possible to purchase physical gold through the futures market?

A gold futures contract is an agreement to buy or sell gold on a date in the future for a price that is determined when the contract is initiated. The futures market is often referred to as an arena for paper trading. Generally, the bulk of the activity is just that, as metal is not actually exchanged and settlements are made in cash.

However, the futures market can also be an arena for purchasing physical gold. That is not to suggest that it is the best source of metal for all investors as it may not increase one’s purchasing power. Obtaining gold through the futures market requires a large investment and involves a list of additional costs. The process can be complicated, cumbersome and lengthy, which is why this option is considered best for highly experienced market participants.

What are some alternatives to physical gold?

Purchasing metal is not the only way to gain exposure to physical gold. Indeed, the popularity of exchange-traded funds (ETFs) underscores how easily people can get into the gold market without actually owning physical gold.

Gold ETFs may track gold-focused stocks or they may track the yellow metal's price. Investors looking for the closest analog to buying physical gold will likely want to focus on the latter. However, it's important to be aware that ETFs that follow the gold price are generally not vehicles to acquire gold, even if they are physically backed.

One advantage of gold ETFs is that they can be easier to trade than physical gold. Some investors choose to hold a set amount of physical gold at all times and use ETFs to trade the metal's ups and downs.

To learn about your options, take a look at our lists of gold ETFs on the NYSE Arca and gold ETFs on the ASX.

This is an updated version of an article originally published by the Investing News Network in 2012.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.

Top Analyst Reports for Broadcom, Merck & Qualcomm

Thu, 21 Nov 2024 21:49:00 +0000

Thursday, November 21, 2024

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Broadcom Inc. (AVGO), Merck & Co., Inc. (MRK) and Qualcomm Inc. (QCOM), as well as a micro-cap stock, Natural Health Trends Corp. (NHTC). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Broadcom’s shares have outperformed the Zacks Electronics - Semiconductors industry over the last two years (+208.0% vs. +157.2%). The Zacks analyst believes that strong demand for the company’s networking products are suitable for addressing the needs of an increasing AI workload and the growing need for fast networking in data centers. The acquisition of VMware has also been a plus.

However, a highly competitive market and a relatively low customer base have remained causes for concern. Also, Broadcom’s frequent acquisitions, like that of VMWare, have escalated integration risks.

(You can read the full research report on Broadcom here >>>)

Merck’s shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past two years (-8.8% vs. +15.2%). The Zacks analyst believes that generic competition for several drugs and rising competitive pressure, mainly on the diabetes franchise, will continue to be overhangs for the company. Also, there are concerns about Merck’s ability to grow its non-oncology business ahead of Keytruda’s loss of exclusivity later in the decade.

Yet, with continued label expansion into new indications, particularly earlier-stage launches, Keytruda is expected to see continued growth. Animal health and vaccine products have also been core growth drivers.

(You can read the full research report on Merck here >>>)

Shares of Qualcomm have underperformed the Zacks Wireless Equipment industry over the past year (+21.0% vs. +43.2%). Per the Zacks analyst, a shift in the shares among OEMs at the premium tier has reduced Qualcomm's near-term opportunity to sell integrated chipsets from its Snapdragon platform.

Aggressive competition in the mobile phone chipset market is also likely to hurt Qualcomm's profits in the future. High operating expenses and R&D costs have remained a headwind. Qualcomm is also expected to face softness in demand from China.

However, with the accelerated rollout of 5G technology, it is benefiting from investments toward building a licensing program in the mobile space. The company formed a strategic collaboration with Google to develop Generative AI digital cockpit solutions.

(You can read the full research report on QUALCOMM here >>>)

Shares of Natural Health Trends have underperformed the Zacks Consumer Products - Discretionary industry over the past year (+1.8% vs. +21.4%). Per the Zacks analyst, a declining active member base remains the biggest concern for the company. It faces liquidity challenges and high operating expenses. Dependency on key markets and intense competition pose additional risks.

However, expansion into new markets and improvement in cost management bode well.

(You can read the full research report on Natural Health Trends here >>>)

Other noteworthy reports we are featuring today include Shopify Inc. (SHOP), Fiserv, Inc. (FI) and Marsh & McLennan Companies, Inc. (MMC).

Mark Vickery
Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Keytruda to Remain Merck's (MRK) Key Top-Line Driver

Strong Demand for Networking Products Aids Broadcom (AVGO)

Qualcomm (QCOM) Poised to Gain from Transition to Edge Firm

Featured Reports

Fiserv (FI) Gains From Skytef Buyout, Amid High Competition
Per the Zacks analyst, the Skytef acquisition strengthens Fiserv's distribution network and point-of-sale. High competition from other players is an overhang.

Marsh & McLennan (MMC) Strategic Buyouts Aid, Expenses High
Per the Zacks analyst, multiple acquisitions help Marsh & McLennan expand geographically, and diversify its portfolio. However, escalating expenses continue to trim margins.

Increase in New Insurance Written Aid MGIC Investment (MTG)
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Pre-Salt Reserves Help Petrobras (PBR), Debt Mountain Hurts
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Customer Growth, Investment Aid Pinnacle West Capital (PNW)
Per the Zacks analyst, Pinnacle West is gaining from customer additions, which is creating demand. Investment in infrastructure and energy generation is aiding it to serve customers efficiently.

Quanta (PWR) Benefits From Strong Demand Amid Labor Woes
Per the Zacks analyst, Quanta is benefiting from robust demand for its services and accretive acquisitions. However, labor and supply chain woes are major concerns.

Ongoing Menu Expansion Aids QIAGEN (QGEN), Macro Woes Stay
Per the Zacks analyst, QIAGEN's robust R&D spending to expand the testing menu across key platforms is encouraging. Yet, macroeconomic volatilities, including the challenges in China, raise concerns.

New Upgrades

Corcept (CORT) Rides on Robust Korlym Sales Performance
Per the Zacks analyst, Corcept's sole drug, Korlym, approved for treating Cushing's syndrome, is driving the top-line. The company is also making good progress with its promising pipeline candidates.

Focus on Cost Savings to Bolster McCormick's (MKC) Margins
Per the Zacks analyst, McCormick's focus on cost-saving plans will continue to enhance its margins. The company expects its fiscal 2024 gross margin to increase by 50 to 100 basis points.

Product Rollouts & Growing Merchant Base Aid Shopify (SHOP)
Per the Zacks analyst, Shopify is benefiting from expanding merchant base driven by applications like Shopify Bill Pay, Tax platform, Collective and Marketplace Connect solutions.

New Downgrades

Decline in Vehicle Production, Rising Debt Ail Magna (MGA)
Per the Zacks analyst, lower-than-anticipated vehicle production in North America and Europe is likely to hurt Magna's top-line growth. Rising debt levels are also concerning.

High Costs, Falling Revenues Hurt Affiliated Managers (AMG)
Per the Zacks analyst, weak top-line performance, and elevated costs are major near-term headwinds for Affiliated Managers. The presence of substantial intangible assets on its balance sheet is a woe.

Spectrum Brands (SPB) Struggles With Numerous Headwinds
Per the Zacks analyst, Spectrum Brands has been witnessing geopolitical and macroeconomic uncertainty for a while. In addition, foreign currency translations are acting as deterrents.

Research Chief Names "Single Best Pick to Double"

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QUALCOMM Incorporated (QCOM): Free Stock Analysis Report

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Zacks Investment Research

Exxon group pulls out of talks with Guyana over shallow water oil block, government says

Thu, 21 Nov 2024 21:36:34 +0000

Altech Batteries Ltd CERENERGY Battery Project Funding Update

Thu, 21 Nov 2024 20:31:00 +0000

Perth, Australia (ABN Newswire) - Altech Batteries Limited (ASX:ATC) (FRA:A3Y) (OTCMKTS:ALTHF) is pleased to announce an update on funding of the CERENERGY(R) sodium-chloride solid-state battery project in Saxony, Germany.

Highlights

- Financing plan and target structure in place

- Funding investment teaser documents and data room established

- Reach out to 10 commercial banks and 2 venture debt funds - all positive interests

- Shortlisting potential lead bank

- Equity Funding - potential sale of minority interest of the project to realise capital and strategic value

- Discussions and draft term sheets shared with investors

- Offtake agreement LOI signed with ZISP

On 14 June 2024, the Company, through its Germany subsidiary Altech Batteries GmbH ("ABG"), announced the appointment of global big four professional services firm ("funding adviser") to assist in securing finance for the construction of Altech's 120MWh CERENERGY(R) battery manufacturing plant in Germany. The project's financing strategy is structured across three key areas: debt, equity, and grants.

These sources will cover not only the capital expenditures but also financing costs, working capital, debt service coverage, and an additional contingency for potential business interruptions, See Figure 1*.

DEBT PROCESS

A funding invitation document (investment teaser) has been finalised and distributed to various financial institutions for debt funding in the project. The Group has engaged ten commercial banks and two venture debt funds in a first market round, receiving predominantly positive initial feedback. Several of these institutions have expressed strong interest in participating in the financing. The Group is now in the process of shortlisting potential lenders to identify the most suitable financial partners for the project. To support a thorough due diligence process, a secure data room has been set up, providing detailed project information to interested financiers and ensuring full transparency. The DFS financial model has been adjusted to stress-test various funding scenarios tailored to the lending institutions ABG has engaged with. Further steps involve determining the most suitable banks to form a syndicate and appointing a lead bank to guide the lending process. This syndicate will play a crucial role in structuring the financing arrangement to meet the project's requirements.

EQUITY FUNDING

In addition to ongoing debt financing efforts, the Group has engaged several equity advisers to support the equity component of the project's funding package. As part of this strategy, the Altech Group plans to divest a minority interest in the project to one or two strategic investors. This partial divestment aims to attract investors who can bring not only capital, but also strategic value to the project, aligning with the CERENERGY(R) project's long-term growth and sustainability objectives.

The Group is specifically targeting large utility groups, data centre operators, investment funds and corporations that are heavily involved in the green energy transition. These entities are seen as ideal partners due to their strong alignment with the project's focus on sustainable energy solutions, as well as their capacity to provide substantial financial backing.

To date, significant progress has been made in these equity discussions. Several Non-Disclosure Agreements (NDAs) have been signed, allowing for deeper engagement with prospective investors. Altech has also circulated draft term sheets to a number of interested parties, outlining the proposed terms and conditions for investment. These documents serve as a starting point for negotiations, paving the way for more detailed discussions regarding the potential equity stake and partnership structure.

The strategic decision to divest a portion of the project is aimed at reducing the overall financial burden on the Company while bringing in experienced partners who can contribute to the project's success. By securing both the equity and debt components, the Company aims to finalise the full financing package, ensuring the timely construction and commissioning of the CERENERGY(R) battery plant. The next steps will focus on advancing these discussions and converting interest into formal commitments, which are crucial for moving forward with the project.

OFFTAKE ARRANGEMENTS

On 13 September 24, Altech announced the execution of an Offtake Letter of Intent between Zweckverband Industriepark Schwarze Pumpe (ZISP) and Altech Batteries GmbH. Under this Offtake Letter of Intent (LOI), ZISP will purchase 30 MWh of energy storage capacity annually, consisting of 1MWh GridPacks, for the first five years of production. The price of these batteries has been agreed and aligns with the sales price contained within Altech's Definitive Feasibility Study. The purchase of these batteries is subject to performance tests, battery specifications and the batteries meeting customer requirements. This offtake LOI constitutes an important aspect of the financing process. This lays the foundation for additional offtake arrangements, which are currently in progress. These agreements are vital for advancing our financing and construction timelines for the CERENERGY(R) project.

CEO and MD Mr Iggy Tan stated "The funding stage of any project is the most complex and challenging process of any project. Securing a big four funding adviser with expertise and a global network is a major step in our financing efforts. Altech is advancing both debt and equity discussions, along with offtake agreements, to fully fund the CERENERGY(R) project. We are seeing strong interest, especially from European banks and potential equity partners".

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/PO741A78

To view MD Iggy Tan explain the Funding, please visit:
https://www.abnnewswire.net/lnk/23705649

About Altech Batteries Ltd:

Altech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns.

The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.

Source:
Altech Batteries Ltd

Contact:
Corporate
Iggy Tan
Managing Director
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com

Martin Stein
Chief Financial Officer
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com

News Provided by ABN Newswire via QuoteMedia

Dore Copper Announces Filing and Mailing of Management Information Circular in Connection with Special Meeting and Encourages Shareholders to Access Meeting Materials Electronically

Thu, 21 Nov 2024 20:30:04 +0000

Doré Copper Mining Corp. (" Doré Copper ") (TSXV: DCMC; OTCQB: DRCMF; FRA: DCM) today announced that it has filed and is in the process of mailing the management information circular (the " Circular ") and related materials for the special meeting (the " Meeting ") of shareholders of Doré Copper (" Doré Copper Shareholders ") to be held December 16, 2024. At the Meeting, Doré Copper Shareholders will be asked to consider and vote on a special resolution (the " Arrangement Resolution ") approving a statutory plan of arrangement (the " Plan of Arrangement ") pursuant to Section 192 of the Canada Business Corporations Act (the " Arrangement "), subject to the terms and conditions of an arrangement agreement dated October 14, 2024 (the " Arrangement Agreement ") entered into among Doré Copper, Cygnus Metals Limited (" Cygnus ") and 1505901 B.C. Ltd., a wholly owned subsidiary of Cygnus, all as more particularly described in the Circular.

The board of directors of Doré Copper (the " Doré Copper Board ") and the special committee of independent directors established by the Doré Copper Board (the " Special Committee ") have unanimously determined that the Arrangement is in the best interests of Doré Copper and that the Arrangement is fair to the Doré Copper Shareholders. The Special Committee and the Doré Copper Board reviewed and considered a significant amount of information and considered a number of factors relating to the Arrangement, with the benefit of advice from Doré Copper's management, and the financial and legal advisors of the Special Committee and the Doré Copper Board. The Special Committee unanimously recommended that the Doré Copper Board recommend to Doré Copper Shareholders that they vote FOR the Arrangement Resolution. The Doré Copper Board unanimously recommends that Doré Copper Shareholders vote FOR the Arrangement Resolution. See pages 33 to 36 of the Circular for a detailed description of the " Reasons for the Arrangement ".

In accordance with the interim order granted by the Ontario Superior Court of Justice (Commercial List) on November 12, 2024, providing for the calling and holding of the Meeting and other procedural matters relating to the Arrangement, the Arrangement can only proceed if, among other conditions, it receives the approval of not less than two-thirds (66⅔%) of the votes cast on the Arrangement Resolution by Doré Copper Shareholders in person or by proxy at the Meeting and not less than a majority (50% + 1) of the votes cast on the Arrangement Resolution by Doré Copper Shareholders in person or by proxy at the Meeting excluding the votes cast by certain interested or related parties or joint actors of Doré Copper in accordance with the minority approval requirements of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions .

Under the Arrangement Agreement, the parties have agreed to effect the Arrangement, pursuant to which Cygnus will indirectly acquire all of the issued and outstanding common shares in the capital of Doré Copper (" Doré Copper Shares "), and Doré Copper Shareholders will be entitled to receive, for each Doré Copper Share held immediately prior to the effective time of the Arrangement (the " Effective Time "), 1.8297 fully paid ordinary shares (the " Consideration ") in the capital of Cygnus (each one whole share, a " Cygnus Share ").

As a result of, and immediately following the completion of, the Arrangement, Doré Copper will be an indirect wholly-owned subsidiary of Cygnus and the former Doré Copper Shareholders will be entitled to receive the Consideration for each Doré Copper Share previously held by them immediately prior to the Effective Time (subject to rounding, as provided for in the Plan of Arrangement).

Cygnus has applied for its Cygnus Shares to be listed on the TSX Venture Exchange (the " TSXV "). It is a condition of closing that Cygnus shall have received conditional listing approval from the TSXV to list the Cygnus Shares on the TSXV. Listing of the Cygnus Shares on the TSXV will be subject to Cygnus receiving approval from, and fulfilling all of the minimum listing requirements of, the TSXV.

Meeting and Circular

The Meeting of the Doré Copper Shareholders will be held at the offices of Bennett Jones LLP located at One First Canadian Place, 100 King Street West, Suite 3400, Toronto, Ontario, M5X 1A4 on December 16, 2024 at 12:00 p.m. (Toronto time). Doré Copper Shareholders of record as of the close of business on November 13, 2024 are entitled to receive notice of and to vote at the Meeting. Doré Copper Shareholders are urged to vote before the proxy deadline of 12:00 p.m. (Toronto time) on December 12, 2024.

The Circular provides important information on the Arrangement and related matters, including the background of the Arrangement, the rationale for the recommendations made by the Special Committee and the Doré Copper Board, and voting procedures. Doré Copper Shareholders are urged to read the Circular and its appendices carefully and in their entirety. The Circular is being mailed to Doré Copper Shareholders in compliance with applicable Canadian securities laws. The Circular is available under Doré Copper's profile on SEDAR+ at www.sedarplus.ca and on Doré Copper's website at www.dorecopper.com .

Impact of Canada Post Labour Strike

Due to the ongoing Canada Post labour strike, it is possible that Doré Copper Shareholders may experience a delay in receiving the Circular and related materials in respect of the Meeting. Doré Copper Shareholders are encouraged to access the Circular and related materials electronically as noted above. Registered holders of Doré Copper Shares experiencing a delay in receiving the Circular and related materials may contact Computershare Investor Services Inc. at 1-800-564-6253 to obtain their individual control numbers in order to vote their Doré Copper Shares. Registered holders of Doré Copper Shares are encouraged to vote their Doré Copper Shares via the internet at www.investorvote.com or via telephone at 1-866-732-VOTE (8683). Registered holders of Doré Copper Shares are also encouraged to complete and return letters of transmittal by hand or by courier to ensure the appropriate documents are received in a timely manner. Beneficial holders of Doré Copper Shares experiencing a delay in receiving the Circular and related materials should contact their broker or other intermediary for assistance in obtaining their individual control numbers in order to vote their Doré Copper Shares. Beneficial holders of Doré Copper Shares are encouraged to vote their Doré Copper Shares via the internet at www.proxyvote.com or via telephone at 1-800-474-7493 (English) or 1-800-474-7501 (French). It is recommended that any physical forms of proxy or voting instruction forms be delivered via courier to ensure that they are received in a timely manner.

Registered holders of Doré Copper Shares who wish to exercise their dissent rights in connection with the Arrangement are also cautioned to deliver their written objection to Doré Copper by mail using a method other than Canada Post or by facsimile transmission in accordance with the instructions set forth in the Circular to ensure that they are received in a timely manner.

Other Matters

Agreement with SOQUEM

Further to its news release dated July 3, 2024, on July 2, 2024, Doré Copper issued 1,190,476 Doré Copper Shares to SOQUEM at a deemed price of $0.105 per Doré Copper Share in connection with its acquisition of a 56.41% interest in a group of contiguous claims located immediately north and east of its flagship high-grade Corner Bay copper project in the Chibougamau mining camp.

About Doré Copper Mining Corp.

Doré Copper Mining Corp. aims to be the next copper producer in Québec with an initial production target of +50 million pounds of copper equivalent annually by implementing a hub-and-spoke operation model with multiple high-grade copper-gold assets feeding its centralized Copper Rand mill ¹ . Doré Copper has delivered its PEA in May 2022 and is proceeding with a feasibility study. Doré Copper has consolidated a large land package in the prolific Lac Doré/Chibougamau and Joe Mann mining camps that has historically produced 1.6 billion pounds of copper and 4.4 million ounces of gold. ² The land package includes 13 former producing mines, deposits and resource target areas within a 60-kilometer radius of Doré Copper's Copper Rand Mill.

About Cygnus Metals

Cygnus Metals Limited (ASX: CY5) is an emerging exploration company focused on advancing the Pontax Lithium Project (earning up to 70%), the Auclair Lithium Project and the Sakami Lithium Project in the world class James Bay lithium district in Québec, Canada. In addition, Cygnus has REE and base metal projects at Bencubbin and Snake Rock in Western Australia. The Cygnus Board of Directors and Technical Management team have a proven track record of substantial exploration success and creating wealth for shareholders and all stakeholders in recent years. Cygnus' tenements range from early-stage exploration areas through to advanced drill-ready targets.

For further information about Doré Copper, please contact:

Ernest Mast	Laurie Gaborit
President and Chief Executive Officer	Vice President, Investor Relations
Phone: (416) 792-2229	Phone: (416) 219-2049
Email: ernest.mast@dorecopper.com	Email: laurie.gaborit@dorecopper.com

Visit: www.dorecopper.com
Facebook: Doré Copper Mining
LinkedIn: Doré Copper Mining Corp.
Twitter: @DoreCopper
Instagram: @DoreCopperMining

Cautionary Note Regarding Forward-Looking Statements
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "forecast", "expect", "potential", "project", "target", "schedule", "budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this news release, including, without limitation, statements with respect to the proposed Arrangement and the terms thereof, the completion of the Arrangement, including receipt of all necessary court, shareholder and regulatory approvals and timing thereof, the listing of the Cygnus Shares on the TSXV, and the plans, operations and prospects of Doré Copper and its properties are forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the ability to obtain approvals in respect of the Arrangement and to consummate the Arrangement, the ability to obtain approvals for the listing of the Cygnus Shares on the TSXV, integration risks, actual results of current and future exploration activities, benefit of certain technology usage, the ability of prior successes and track record to determine future results, changes in project parameters and/or economic assessments, availability of capital and financing on acceptable terms, general economic, market or business conditions, future prices of metals, uninsured risks, risks relating to estimated costs, regulatory changes, delays or inability to receive required regulatory approvals, health emergencies, pandemics and other exploration or other risks detailed herein and from time to time in the filings made by Doré Copper with securities regulators. Although Doré Copper has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Doré Copper disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

¹ Technical report titled "Preliminary Economic Assessment for the Chibougamau Hub-and-Spoke Complex, Québec, Canada" dated June 15, 2022, in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). The Technical Report was prepared by BBA Inc. with several consulting firms contributing to sections of the study, including SLR Consulting (Canada) Ltd., SRK Consulting (Canada) Inc. and WSP Inc.
² Sources for historic production figures: Economic Geology, v. 107, pp. 963–989 - Structural and Stratigraphic Controls on Magmatic, Volcanogenic, and Shear Zone-Hosted Mineralization in the Chapais-Chibougamau Mining Camp, Northeastern Abitibi, Canada by François Leclerc et al. (Lac Dore/Chibougamau mining camp) and NI 43-101 Technical Report on the Joe Mann Property dated January 11, 2016 by Geologica Groupe-Conseil Inc. for Jessie Ressources Inc. (Joe Mann mine).

News Provided by GlobeNewswire via QuoteMedia

Merck Stock Trades Near 52-Week Low: What's Next for Investors?

Thu, 21 Nov 2024 20:00:00 +0000

Key Takeaways

Merck's shares have lost 25.6% in the past six months compared with a decline of 11.7% for the industry.
The Zacks Consensus Estimate for 2024 earnings declined from $7.82 to $7.72 per share over the past 30 days.
Register now to see our 7 Best Stocks for the Next 30 Days report - free today!

Merck MRK stock closed at $97.44 on Wednesday, which is close to its 52-week low of $94.48.

The company is facing several headwinds like declining sales of the second-largest product, the human papillomavirus (HPV) vaccine, Gardasil in China, weakness in the diabetes franchise and generic erosion of some drugs. There are concerns about the firm’s ability to grow its non-oncology business ahead of the loss of exclusivity of its largest drug, Keytruda, later in the decade.

To top that, the drug and biotech sector saw a major downturn in the past couple of months due to disappointing third-quarter sales and profits, guidance cuts, pipeline setbacks and the appointment of Robert F. Kennedy Jr., a vaccine skeptic, as the head of Health and Human Services. All these factors have significantly hurt shares of almost all large drugmakers.

Merck’s shares have lost 25.6% in the past six months compared with a decline of 11.7% for the industry. The stock has also underperformed the sector and the S&P 500 Index, as seen in the chart below. The stock is also trading well below its 200 and 50-day moving averages.

Merck Stock Underperforms Industry, Sector & S&P 500

Image Source: Zacks Investment Research

The stock’s poor price performance has left investors wondering whether to hold or sell it. Let’s understand the company’s strengths and weaknesses in detail to better analyze how to play the stock following the price decline.

Keytruda: Merck’s Biggest Strength

Merck boasts more than six blockbuster drugs in its portfolio, with blockbuster PD-L1 inhibitor Keytruda being the key top-line driver. Keytruda, approved for several types of cancer, alone accounts for around 50% of the company’s pharmaceutical sales. The drug has played an instrumental role in driving Merck’s steady revenue growth in the past few years.

Keytruda’s sales are gaining from rapid uptake across earlier-stage indications, mainly early-stage non-small cell lung cancer. Continued strong momentum in metastatic indications is also boosting sales growth. The company expects continued growth from Keytruda, particularly in early lung cancer.

Merck is working on different strategies to drive Keytruda's long-term growth. These include innovative immuno-oncology combinations, including Keytruda with TIGIT, LAG3 and CTLA-4 inhibitors. In partnership with Moderna MRNA, Merck is developing a personalized mRNA therapeutic cancer vaccine (V940/mRNA-4157), in combination with Keytruda, for treating adjuvant melanoma and non-small cell lung cancer.

However, Merck is heavily reliant on Keytruda. Though Keytruda may be Merck’s biggest strength and a solid reason to own the stock, it can also be argued that the company is excessively dependent on the drug and should look for ways to diversify its product lineup.

MRK’s Pipeline Progress & Strategic M&A Deals

Merck made meaningful regulatory and clinical progress this year across areas like oncology (mainly Keytruda), vaccines and infectious diseases while also executing strategic business moves like the acquisitions of Eyebiotech Limited, Harpoon Therapeutics and Elanco’s aqua business. It also expanded its existing cancer deal with Japan’s Daiichi Sankyo and signed a collaboration with Exelixis EXEL to advance the development of the latter’s cancer candidate, zanzalintinib.

Merck's phase III pipeline has almost tripled over the past three years, positioning it to launch several new vaccines and drugs over the next five years, with many having blockbuster potential. Merck’s new 21-valent pneumococcal conjugate vaccine, Capvaxive, and pulmonary arterial hypertension drug, Winrevair, have the potential to generate significant revenues for Merck over the long term. Both the products are witnessing a strong launch.

Merck has other promising candidates in its late-stage pipeline, such as MK-0616, an oral PCSK9 inhibitor for hypercholesterolemia, tulisokibart, a TL1A inhibitor for ulcerative colitis and Daiichi-Sankyo-partnered antibody drug conjugates (ADCs).

Declining Sales of MRK's Gardasil in China

Sales of Gardasil are declining in China due to a significant step down in shipments to Merck’s distributor and commercialization partner, Zhifei. Merck expects to continue to see a decline in shipments to China in the fourth quarter of 2024 and into 2025. Though the company is working to increase promotional resources and patient education efforts to increase demand, it will take time. However, Gardasil sales remain strong in almost every major region outside China, including the United States.

MRK Valuation & Estimates

From a valuation standpoint, Merck appears attractive relative to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 10.54 forward earnings, lower than 16.15 for the industry as well as its 5-year mean of 13.49.

MRK Stock Valuation

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2024 earnings has declined from $7.82 to $7.72 per share over the past 30 days. For 2025, earnings estimates have declined from $9.64 to $9.43 per share over the same timeframe.

MRK Estimate Movement

Image Source: Zacks Investment Research

Short-Term Investors May Sell MRK Shares

Though Merck’s problems are many, the company has one of the world’s best-selling drugs in its portfolio, generating billions of dollars in revenues. Though Keytruda will lose patent exclusivity in 2028, its sales are expected to remain strong until then. Though Merck does not have any new product or pipeline candidate that can replace Keytruda’s sales when it loses patent protection, it has $14.6 billion in cash and short-term investments on its balance sheet, which it can use to buy companies with promising R&D programs.

In 2025, Merck expects to deliver 6% to 7% growth in revenues, almost the same as its expectations for 2024. In 2024, it expects revenues to be in the range of $63.6-$64.1 billion, which indicates year-over-year growth of 6-7%.

It expects top-line growth in 2025 to be driven by Keytruda, especially in early-stage cancers, new products Welireg, Winrevair and Capvaxive, and the Animal Health segment, partially offset by declining sales of Gardasil in China. Also, the expiration of the agreement with J&J JNJ for Remicade and Simponi is expected to hurt the top line.

We believe investors with a long-term horizon should stay invested in MRK stock, while short-term investors should consider selling the same as the company may take some time to show strong earnings growth.

Merck has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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4 Retail Stocks Primed to Beat Earnings Estimates This Season

Thu, 21 Nov 2024 20:00:00 +0000

Key Takeaways

ANF, URBN, CASY and DLTR stocks are poised to trump earnings estimates this season.
The retail stocks sector is expected to grow 5.3% year-over-year for the third quarter.
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As investors await upcoming earnings reports, the performance of key players within the Retail-Wholesale sector could impact market sentiment in the coming weeks. This reporting cycle provides valuable insight into sector performance, with expectations for a potential uptick in both sales and earnings. These results are likely to be influenced by prevailing consumer sentiment, spending trends and the ongoing challenge of managing operational costs.

Per the latest Zacks Earnings Outlook, the sector is anticipated to witness top-line growth of 5.3% year over year in the third quarter of 2024. This follows a 4.4% increase in the preceding season. Meanwhile, the bottom line is expected to increase 12% this earnings season. The sector registered earnings growth of 16.1% in the previous reporting cycle.

With earnings season on its last leg, it is worth investing in companies with earnings beat potential. We have identified four stocks — Abercrombie & Fitch Co. ANF, Urban Outfitters, Inc. URBN, Casey's General Stores, Inc. CASY and Dollar Tree, Inc. DLTR — that are poised to trump earnings estimates this season.

See the Zacks Earnings Calendar to stay ahead of market-making news.

Key Factors Likely to Influence Retail Earnings

Retail earnings this season are poised to reflect evolving consumer preferences, which have increasingly shifted toward essentials and value-based products amid underlying inflationary pressures. Retailers focusing on competitive pricing and product diversification, particularly in areas like groceries and home essentials, may have experienced higher foot traffic and better conversion rates. However, discretionary categories such as apparel and electronics could have faced headwinds as consumers prioritize necessities.

Persistent inflation, while moderating, continues to weigh on consumer budgets and retailers’ cost structures. Retailers implementing strategic pricing, including promotions and private label expansions, are better positioned to maintain their market share without significantly eroding margins. Those with robust supply-chain management and the ability to pass on incremental costs to consumers are likely to see resilient earnings.

The sustained growth of e-commerce and the integration of omnichannel capabilities remain pivotal for retail success. Companies investing in seamless online shopping experiences, coupled with efficient last-mile delivery, are attracting a broader customer base. The fusion of physical and digital channels — such as click-and-collect options and curbside pickups —offers a competitive edge, particularly as consumers seek convenience and flexibility.

Efficient inventory management will be a critical determinant of retail profitability this earnings season. Retailers grappling with excess inventory from prior seasons may face margin pressures due to markdowns. Conversely, those leveraging advanced analytics and demand forecasting to optimize stock levels are better equipped to meet consumer demand while safeguarding profit margins.

4 Retail Stocks Poised for Earnings Surprises

Our research shows that for stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), the chance of a positive earnings surprise is as high as 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Abercrombie & Fitch: Zacks Rank #2 & Earnings ESP of +4.59%

Abercrombie & Fitch stands out as a strong investment choice. The company excels in integrating digital and physical retail channels, offering a seamless shopping experience and driving higher customer satisfaction and loyalty. Strategic marketing initiatives, particularly targeted campaigns in key markets, have been effective in boosting brand visibility and customer acquisition. The introduction of innovative product lines meets specific customer needs and broadens the brand's appeal. Abercrombie & Fitch’s regional operating model, with a focus on the Americas, the EMEA (Europe, the Middle East and Africa) and the APAC (Asia-Pacific), provides a solid foundation for global expansion.

Investors can count on Abercrombie & Fitch with a Zacks Rank #2 and an Earnings ESP of +4.59%. The Zacks Consensus Estimate for third-quarter fiscal 2024 earnings per share has risen by a penny to $2.32 in the past 30 days. The consensus estimate suggests an increase of 26.8% from the year-ago period. ANF has a trailing four-quarter earnings surprise of 28%, on average. The company will report numbers on Nov. 26 before the opening bell. You can see the complete list of today’s Zacks #1 Rank stocks here.

Abercrombie & Fitch Company Price, Consensus and EPS Surprise

Abercrombie & Fitch Company price-consensus-eps-surprise-chart | Abercrombie & Fitch Company Quote

Urban Outfitters: Zacks Rank #2 & Earnings ESP of +8.17%

You may consider Urban Outfitters. The company's growth is fueled by its multi-brand approach featuring Anthropologie and Free People, allowing it to navigate a challenging retail landscape. Its success in the expansion of the Nuuly subscription rental service reflects its ability to adapt to evolving consumer demands, particularly for sustainable fashion solutions. Urban Outfitters’ focus on omnichannel integration enhances customer engagement and spending.

Urban Outfitters has a Zacks Rank #2 and an Earnings ESP of +8.17%. The Zacks Consensus Estimate for third-quarter fiscal 2025 earnings per share has risen by a penny to 84 cents in the past seven days but still implies a decline of 4.6% from the year-ago period. URBN has a trailing four-quarter earnings surprise of 17.6%, on average. The company is slated to report financial numbers on Nov. 26 after the closing bell.

Urban Outfitters, Inc. Price, Consensus and EPS Surprise

Urban Outfitters, Inc. price-consensus-eps-surprise-chart | Urban Outfitters, Inc. Quote

Casey's General Stores: Zacks Rank #2 & Earnings ESP of +5.22%

Casey's also deserves a mention. The company continues to distinguish itself in the convenience store sector through robust operational strategies that bolster its market position and financial performance. A resilient business operating model, stellar omnichannel capabilities, expanded customer outreach and exclusive private-label offerings strengthen Casey's competitive position. Through a strategic blend of organic growth and targeted acquisitions, Casey's is aggressively expanding its footprint.

CASY has a Zacks Rank #2 and an Earnings ESP of +5.22%. The Zacks Consensus Estimate for second-quarter fiscal 2025 earnings per share has risen by 1.2% to $4.28 in the past 30 days. The consensus estimate implies an increase of 0.9% from the year-ago period. Casey's has a trailing four-quarter earnings surprise of 15.8%, on average. The company is scheduled to report financial numbers on Dec. 9 after the market closes.

Casey's General Stores, Inc. Price, Consensus and EPS Surprise

Casey's General Stores, Inc. price-consensus-eps-surprise-chart | Casey's General Stores, Inc. Quote

Dollar Tree: Zacks Rank #3 & Earnings ESP of +2.80%

Dollar Tree is worth betting on. The company’s strategic initiatives, including its multi-price expansion, footprint growth, private brand development and supply-chain modernization, position the company for success. DLTR remains confident in its ability to deliver value to customers and drive market share growth. With a strong financial foundation, an expanding customer base and a differentiated business model, Dollar Tree is well-positioned to navigate the evolving retail landscape and continue to generate value for investors.

Dollar Tree has a Zacks Rank #3 and an Earnings ESP of +2.80%. The Zacks Consensus Estimate for third-quarter fiscal 2024 earnings per share has risen by a penny to $1.07 in the past 30 days. The consensus estimate suggests an increase of 10.3% from the year-ago period. The company is scheduled to report quarterly numbers on Dec. 4 before the stock market opens.

Dollar Tree, Inc. Price, Consensus and EPS Surprise

Dollar Tree, Inc. price-consensus-eps-surprise-chart | Dollar Tree, Inc. Quote

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Sociedad Quimica's Earnings and Revenues Miss Estimates in Q3

Thu, 21 Nov 2024 20:00:00 +0000

Key Takeaways

SQM earnings per share in Q3 was 46 cents, far below the Zacks estimate of 64 cents
TSQM shares have lost 23.6% the past year compared with the Fertilizers industry decline of 13.1%.
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Sociedad Quimica y Minera de Chile S.A. SQM logged a profit of $131.4 million or 46 cents per share in third-quarter 2024. The figure marks a decline from a profit of $479.4 million or $1.68 per share registered in the year-ago quarter. Earnings per share also fell short of the Zacks Consensus Estimate of 64 cents per share.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

SQM generated revenues of $1,076.9 million in the quarter, down around 41% year over year. The figure missed the Zacks Consensus Estimate of $1,090.2 million. While SQM saw volume growth in almost all of its business lines, it faced headwinds from weaker year-over-year pricing in the quarter.

Sociedad Quimica y Minera S.A. Price, Consensus and EPS Surprise

Sociedad Quimica y Minera S.A. price-consensus-eps-surprise-chart | Sociedad Quimica y Minera S.A. Quote

SQM’s Segment Highlights

Revenues from the Lithium and Derivatives segment fell around 61% year over year to $497.2 million in the reported quarter. Despite a roughly 18% increase in lithium sales volumes, the downside was caused by a sharp 67% reduction in average sales prices.

The Specialty Plant Nutrients (SPN) segment generated revenues of $249.1 million, up around 12% year over year. This upside was driven by higher sales volumes, though it was partly tempered by lower average sales prices.

The Iodine and Derivatives segment posted revenues of $233.5 million, up around 10% from the prior year’s levels, benefiting from higher sales volumes.

Revenues from the Potassium business fell around 9% year over year to $68.2 million as higher sales volumes were more than offset by lower average sales prices.

The Industrial Chemicals unit recorded sales of $18.6 million, down roughly 57% year over year. The downside was due to significantly lower sales volumes despite higher average sales prices.

SQM’s Financials

The company’s cash and cash equivalents were $1,565.4 million at the end of the quarter, up around 52% sequentially. Long-term debt was $3,784.4 million, up roughly 28% from the prior quarter.

SQM’s Outlook

SQM reaffirmed its lithium volume guidance, expecting between 190,000-195,000 thousand metric tons of product sold this year.

For the SPN unit, the company expects its sales volumes to surpass its projected market growth of 17% for 2024. SQM sees its sales volumes grow around 20% year-over-year in 2024.

The company also expects the average realized sales prices in the Iodine and Derivatives segment to be higher sequentially in the fourth quarter of 2024. It is seeing a strong demand growth in the iodine market mainly driven by X-ray contrast media and other industrial applications and expects the iodine market to grow roughly 7% year over year in 2024.

SQM now expects its potassium sales volumes to reach 620,000 metric tons in 2024 factoring in the delay in the shipment of product rescheduled for 2025.

SQM Stock’s Price Performance

SQM’s shares have lost 23.6% over a year compared with the Zacks Fertilizers industry’s decline of 13.1%.

Image Source: Zacks Investment Research

SQM’s Zacks Rank & Other Basic Materials Releases

SQM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DuPont de Nemours, Inc. DD logged adjusted earnings of $1.18 per share in the third quarter, topping the Zacks Consensus Estimate of $1.04. DD raised its full-year 2024 projections for operating EBITDA and adjusted earnings per share.

The Chemours Company CC recorded adjusted earnings of 40 cents for the third quarter, topping the Zacks Consensus Estimate of 32 cents. CC expects consolidated net sales to decline in the mid to high-single digits sequentially in the fourth quarter. Consolidated adjusted EBITDA is forecast to be down in the high teens to low 20% range compared with third-quarter 2024 results.

PPG Industries, Inc. PPG logged third-quarter adjusted earnings per share of $2.13, missing the Zacks Consensus Estimate of $2.15. PPG anticipates flat organic sales and adjusted earnings per share at the bottom end of the $8.15 to $8.30 range for full-year 2024.

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Prospect Ridge Resources

Thu, 21 Nov 2024 20:00:00 +0000

Investor Insight

Prospect Ridge Resources' compelling investment value proposition stems from the company's robust growth ambitions driven by its highly prospective assets near the renowned Golden Triangle region, and a management team with substantial technical expertise.

Overview

Prospect Ridge (CSE:PRR,OTC:PRRSF,FRA:OED) is a precious metals exploration company focused on key projects in Northern British Columbia near the prolific Golden Triangle. The Golden Triangle in northwest British Columbia has been a hub for mineral exploration and mining endeavors for over 150 years. The company owns 100 percent of both the Knauss Creek property and the Holy Grail property.

The Knauss Creek property resembles the high-grade mineralization found in the historical Dorreen mine. Exploration at Knaus Creek has revealed high-grade mineralization comprising gold, silver, copper, lead and zinc. The Copper Ridge zone, which is in the southern part of the Knauss Creek property, is particularly interesting. In 2023, a total of 241 samples were collected from this area which extended the Copper Ridge mineralized zones over an east-west strike length of 1,550 meters, a north-south strike of 850 meters, and a height difference of 470 meters.

Prospect Ridge Resources has also completed an inaugural drilling program at the Copper Ridge zone to test high-priority targets covering an area of 1,550 metres by 850 metres.

The other property, Holy Grail, has also historically produced high-grade gold and silver from placer mining. Prospecting results at the Holy Grail property showed exceptional promise, uncovering significant discoveries of gold, silver, copper, lead and zinc.

Prospect Ridge benefits from a team of professionals boasting extensive expertise in geology and mining. The company is led by Micheal Iverson, CEO, who has more than three decades of experience in mining exploration. The management team has a proven track record of executing several successful exploration and development projects, including Fortuna Silver Mines and NioGold Mining’s Marban project.

Company Highlights

Prospect Ridge is a Canada-based exploration and development company with two highly prospective land packages in British Columbia.
The company’s two key assets are the Knauss Creek property and the Holy Grail property, located near the renowned Golden Triangle region in northwestern British Columbia. The Golden Triangle has historically been known for abundant precious and base metal discoveries, with numerous active mining projects and ongoing resource exploration.
The flagship Knauss Creek property has revealed high-grade surface samples up to 78.9 g/t gold, 4,740 g/t silver, 29.4 percent copper, 33.33 percent lead and 4.10 percent zinc. The Copper Ridge zone is particularly interesting, where a 1.5-km strike zone containing high-grade gold-silver-copper trends were discovered.
The company has completed an inaugural drilling program to test the drill-ready target Copper Ridge zone as well as other targets.
Prospecting results from the Holy Grail property are exceptionally promising. They reveal noteworthy discoveries of gold, silver, copper, lead and zinc.
Prospect Ridge is led by a proven team of executives with more than 100 years of combined experience leading several successful exploration and development projects, including Fortuna Silver Mines and NioGold Mining’s Marban project (sold to Oban Mining, now Osisko Mining).

Key Projects

Knauss Creek Property

The Knauss Creek property, situated 35 kms north of Terrace, BC, spans 2,944. It has excellent infrastructure access, proximity to Highway 16, numerous logging roads traversing it, and the Canadian National Railway passing through.

The property is home to the historical Dorreen mine. Various showings on the property, including the Jay Veins, Hugin, Kandy and Copper Ridge, contain gold, silver, copper, lead and zinc mineralization. The current focus is on the Copper Ridge zone, a high-grade polymetallic mineralization zone spanning 1,500 meters.

Assays from outcrop samples gathered during the 2023 prospecting season have revealed numerous high-grade gold, silver and copper findings. Highlights from rock outcrop sampling, include:

Sample W489444 contains 6.70 grams per ton (g/t) gold, 4,610 g/t silver, 2.23 percent copper
Sample W489424 contains 15.9 g/t gold, 987 g/t silver, 0.29 percent copper, 17.55 percent lead, 6.99 percent zinc
Sample W501837 contains 0.49 g/t gold, 134 g/t silver and 29.4 percent copper
Sample W501812 contains 2.14 g/t gold, 264 g/t silver and 10.35 percent copper

Consequently, the Copper Ridge zone has been extended, now measuring an east-west length of 1,550 meters, a north-south strike length of 850 meters, and a vertical difference of 470 meters. Field data suggests the veins follow a north-south orientation and dip towards the east.

The interpretation suggests the zone comprises a network of mineralized veins arranged like a ladder hosted within a dioritic intrusion.

The company has completed an inaugural drilling program to evaluate drill-ready targets like the Copper Ridge zone, the Leon’s Legacy and Dorreen Mine showings.

Holy Grail Property

The Holy Grail property is located 10 km north of Terrace, BC, and forms a horseshoe that encloses the fully owned Knauss Creek property in its southeastern part. It currently spans 70,109 hectares. The property is easily accessible via a highway, multiple serviced roads, logging roads, and ATV trails that cross cut it.

Prospecting results from the Holy Grail property displayed remarkable potential through substantial findings of gold, silver, copper, lead and zinc. Key highlights of the results include:

Grab sample C362354 returned 28.0 g/t gold, 56.9 g/t silver and 2.03 percent copper on the 4 Shore showing
Grab sample C362357 returned 13.7 g/t gold, 39.9 g/t silver and 1.33 percent copper on the 4 Shore showing
Grab sample C363353 returned 0.37 g/t gold, 58.7 g/t silver and 3.43 percent copper on the Maroon Creek showing
Grab sample C363092 returned 6.7 g/t gold, 21.1 g/t silver, and 0.12 percent lead on the Iceberg showing.

Management Team

Michael Iverson – CEO and Director

Michael Iverson has over three decades of experience in public and private capital markets. He also has significant experience in the mining industry, having founded Niogold Mining and Fortuna Silver Mines. At Niogold, he spearheaded the acquisition and exploration of an expansive land parcel in Val D’Or, leading to the company's acquisition by Oban Mining, presently known as Osisko Mining , at a substantial premium to its market capitalization. At Fortuna, he played a vital role in the company's prosperous evolution into a silver producer with operational mines in Peru and Mexico. Iverson, over his entire career spanning three decades, has achieved, in aggregate, market capitalizations in excess of $1 billion.

Yan Ducharme – President and Director

Yan Ducharme is a professional geologist with over 25 years of experience in greenfield and brownfield exploration projects in Quebec, Ontario, Africa and South America. He was on the exploration team at SEMAFO and Cambior/Iamgold and was an exploration manager at NioGold (then vice-president exploration), Canadian Malartic, SOQUEM, and Wesdome Gold Mine. He worked in underground mines and open pits. Ducharme obtained a masters in earth sciences from the University of Quebec in Montreal.

Jasmine Lau – CFO

Jasmine Lau is a seasoned finance and accounting expert with a wealth of experience as a CFO in the mineral exploration and resource sector, having worked on projects across the globe. She was employed in internal audit at Teck Resources and Deloitte, where she focused on audits of public mining and resource companies. Lau is a CPA, CA, and holds a Bachelor of Commerce degree from the University of British Columbia.

Simon Ridgway – Chairman and Director

Simon Ridgway is the CEO of Rackla Metals, a Vancouver-based junior gold exploration company listed on the TSX Venture Exchange since September 2011. He is also the CEO, president and director of Volcanic Gold Mines, a Vancouver-based company engaged in gold and silver property acquisition and exploration.

Michael Michaud - Director

Michael Michaud is a professional geologist with over 30 years of experience. He is an expert in developing and executing regional and mine-site exploration strategies across diverse deposit types in North and South America, Africa, Asia and Europe. Michaud is the vice-president of exploration at Wesdome Gold Mines. He also held roles at several firms, including Iamgold, St Andrew Goldfields, SRK Consulting and North American Palladium. Michaud holds an honors B.Sc. from the University of Waterloo and an M.Sc. from Lakehead University.

Toby Lim - Director

Toby Lim has been a practicing solicitor since 1997, focusing on corporate and securities law. He received a Bachelor of Commerce degree with honours from the University of British Columbia in 1992, followed by a Bachelor of Laws degree from Osgoode Hall Law School in Ontario in 1996.

Jacques Brunelle – Director

Jacques Brunelle has over three decades of involvement in the North American mining sector. He has held executive positions as president and director in publicly traded companies, including Niogold Mining, where he served in 2003, culminating in a successful acquisition by Osisko Mining in 2016. Throughout his career, Brunelle has raised substantial funds for exploration and equity financing initiatives in both public and private enterprises.

Bradley Scharfe – Director

Bradley Scharfe has over 25 years of experience in North America's capital markets. Scharfe has led financing endeavors throughout his career and assembled robust companies across various sectors, including resources and commodities. He specializes in raising, deploying and managing venture capital for companies in their early growth stages. Previously, Scharfe served as a venture capital stockbroker with Canaccord Capital, a leading Canadian investment firm. Scharfe holds a Bachelor of Arts degree from the University of Toronto, where he majored in commerce and economics.

Providence Insider Participates in Financing

Thu, 21 Nov 2024 19:57:54 +0000

Providence Gold Mines Inc. (“the Company) is pleased to announce further to the Private placement announced on November 14, 2024 that an insider of the Company is participating in the first tranche of the private placement in the amount of $75,000 Cdn for 1,500,000 units at $0.05 per unit. Each unit comprises of one common share and one non-transferable warrant exercisable into one common share of the Company at a price of $0.09 for a period of two years from the date of closing. The funds will be used for general purposes.

As announced, a placement of up to $1,800,000 Cdn for 36,000,000 units at $0.05 per unit is now underway. Each unit will comprise of one common share and one non-transferable warrant, exercisable into one common share of the Company at a price of $0.09 for a period of two years from the date of closing.

USE OF PROCEEDS

The funds from this placement will be used for evaluation of the new gold surface discovery reported for reference on May 6, 2024 and for a significant drilling program of up to 2500m designed to target the historical McCarthy and Mexican shafts and as well as an area north of the Mexican shaft where significant ground preparation provides a favourable structural setting for hanging wall splay veins analogous to the historical ”Bonanza” stope at the Providence mine first stope at surface alone produced 50,000 ounces. Ron Coombes states, “exploration efforts have modelled potential for robust significant high-grade gold targets”.

All securities issued will be subject to a hold period of four months and one day from the closing date of the private placement, in accordance with applicable Canadian securities laws.

BOARD APPOINTMENT

In addition, the Company is extremely pleased to announce the CFO and director appointment of Brian Crawford CPA, CA.

Brian Crawford CPA, CA, has extensive experience as a senior financial executive. Brian was formerly a partner with a national firm of Chartered Professional Accountants and founded several public companies trading on the TSX Venture Exchange (“TSX.V”) and the Canadian Securities Exchange (“CSE”). Brian currently serves as a Director, Corporate Secretary and or Chief Financial Officer of several TSX.V and CSE-listed issuers.

QUALIFIED PERSON

Lee Groat Ph.D., P. Geo, a geologist and qualified person (as defined under NI 43-101) has read and approved of the technical information contained in this news release.

ON BEHALF OF THE BOARD

"Ronald Coombes"

Ronald A. Coombes, President & CEO
Phone: (604) 724-2369
Email: rcoombes@providencegold.com

STAY TUNED! VISIT OUR WEBSITE FOR MORE DETAILS
www.ProvidenceGold.com

LIKE & FOLLOW @providencegoldmines
Instagram, Facebook, Twitter, TikTok, Youtube, LinkedIn

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Neither the OTC-Pinks and or the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

All statements, trend analysis and other information contained in this press release relative to markets about anticipated future events or results constitute forward-looking statements. All statements, other than statements of historical fact, included herein, including, without limitation, statements relating to the permitting process, future production of Providence Gold Mines, budget and timing estimates, the Company’s working capital and financing opportunities and statements regarding the exploration and mineralization potential of the Company’s properties, are forward-looking statements. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Important factors that could cause actual results to differ materially from Providence Gold Mines expectations include fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; the need for cooperation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs and uncertainty of meeting anticipated program milestones; and uncertainty as to timely availability of permits and other governmental approvals. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. Providence Gold Mines does not undertake any obligation to update forward-looking statements except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements.

Source

Time to Assess SLB's Premium Stock Valuation: Buy, Sell, or Hold?

Thu, 21 Nov 2024 19:45:00 +0000

Key Takeaways

SLB stock has lost 15.3%, underperforming the 2.9% gain this year of the oil and gas field services industry.
Still, the stock has a premium valuation suggesting the market has confidence in the company - is it warranted?
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SLB SLB is currently considered expensive on a relative basis, with the stock trading at a trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA) of 8.05x, which is a premium compared with the broader industry average of 7.12x. Although a premium valuation indicates that the market has strong confidence in the company’s prospects, it necessitates scrutiny to determine if this higher price is warranted.

Image Source: Zacks Investment Research

Heavy Dependence on the Middle East & Asia to Hurt SLB

In the third quarter of 2024, SLB derived 36% of its total revenues from operations in the Middle East and Asia, making this region the largest contributor to the company's total revenues. Given the Middle East's history of geopolitical instability, including wars, civil unrest and tensions among major oil-producing nations, SLB remains significantly exposed to risks unique to these areas.

Notably, the energy market in the Middle East is heavily influenced by government regulations, as many nations manage oil production and exports. Thus, shifts in policies can have a direct effect on SLB's operations and agreements.

Also, global oilfield services companies are attracted to the Middle East and Asia because of the region's vast and extensive oil and natural gas reserves and active projects. This heightened competition may put downward pressure on SLB's pricing, potentially reducing its margins and market share.

SLB Grapples With Weakness in North American Operations

Explorers and producers in North America, particularly in the United States, are now primarily focused on returning capital to shareholders rather than making large investments in increased production. This shift aligns with investor preferences. This capital discipline is reflected in the stagnant rig count data from Baker Hughes Company BKR.

In October, North America recorded a total of 804 rigs, consistent with the previous month’s count, according to BKR data. However, this rig count was lower than the 814 rigs recorded a year ago.

Image Source: Baker Hughes Company

Thus, slowing drilling and upstream activities in North America will continue to result in lower demand for SLB’s services, such as reservoir productivity and performance optimization.

SLB’s Modest Revenue Growth Despite Digital Investments

Although SLB is making substantial investments in digital transformation and artificial intelligence (AI)-driven solutions, these efforts have yet to result in notable revenue growth. This is evident in the company's modest 0.2% sequential revenue increase in the third quarter of this year. The slow pace of growth may raise concerns about the short-term effectiveness of these strategies.

Is SLB’s Premium Valuation Justified?

All these weaknesses are evident in SLB's price chart. Year to date (YTD), the stock has lost 15.3%, underperforming Halliburton Company’s HAL 12.4% decline and the 2.9% gain of the industry’s composite stocks. This could indicate ongoing investor concerns about the company’s ability to restore its previous levels of profitability.

YTD Price Performance

Image Source: Zacks Investment Research

Thus, despite SLB continuing to benefit from long-cycle projects in deepwater and gas, especially in offshore North America and the Middle East, which provide a stable revenue stream even when short-cycle activities are weak, its premium valuation may not be warranted. Therefore, it might be wise to avoid investing in the stock at its current overvalued price. The stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Don't Let "Buy Now, Pay Later" Ruin Your Holidays

Thu, 21 Nov 2024 19:26:00 +0000

The holiday season.

The time of year when we’re filling our carts with thoughtful, memorable gifts for everyone on our lists. It’s the season of giving — and let’s face it, spending. So there you are, scrolling through the sales and checking off names: a new tech gadget for your partner, toys for the kids, cozy sweaters for your parents, maybe even a little something for yourself.

You load everything up in your cart, feeling pretty proud of all those thoughtful picks, and then... you see the total. Your eyes widen. The number is huge, way over budget. But then, right below the credit card button, you spot it:

"Pay just $60 today!"

A holiday miracle, right? Suddenly, you can get everything on your list without the sticker shock. Just four little payments, spread out over time. No interest. No problem.

And just like that, you’ve discovered the magic of "buy now, pay later" (BNPL) — the payment option millions of people use to tackle shopping without feeling the full financial hit upfront. Maybe you’ve noticed it (or used it!) yourself, through payment platforms such as Affirm, Klarna, or Afterpay.

But could something that seems so easy really be risk-free?

Let’s dive into the pros, the cons, and how to know when BNPL is really a gift — or a trap dressed up in holiday cheer.

Why BNPL Feels Like the Ideal Holiday Solution

As "buy now, pay later" continues to increase in popularity, I’m expecting it to be everywhere this holiday season. Why? The answer is simple: It feels like a fix for almost every holiday spending problem.

This year, Americans are expected to set new spending records, with holiday retail sales anticipated to grow as much as 3.5% to nearly $989 billion. According to Deloitte, the average shopper now plans to spend around $1,778 on gifts and holiday expenses; but a Bankrate survey revealed only 29% of holiday shoppers have a specific budget or set-aside money for holiday spending.

That gap makes it easy to see why more people are turning to BNPL to afford their perfect holidays.

Here are the biggest reasons BNPL is so appealing when budgets are tight and wish lists are long.

1) Interest-Free Payments (If You’re on Time)

Unlike credit cards, which can pile on interest if you don’t pay them off each month, many BNPL plans let you split up payments (usually four payments over a six-week period) with no interest — as long as you pay on time. It’s a huge draw for shoppers trying to avoid the extra costs that come with credit cards. BNPL gives you some of that credit card flexibility without the worry of mounting interest charges, which can feel like a holiday miracle in itself.

2) Eases the Immediate Budget Crunch

Holidays get expensive — fast. BNPL offers a way to spread out that cost a bit more, turning what would be a huge December bill into smaller payments that feel more manageable. Instead of a big upfront hit to the bank account, you’re tackling smaller chunks, letting you get those perfect gifts without an immediate budget blow.

3) Easy to Qualify

BNPL offers interest-free installment payments, often split into four parts, paid biweekly or monthly, making it easier for shoppers to manage costs. And if you’ve ever applied for a traditional loan, you know how strict credit checks can be. However, most BNPL companies only run a "soft" credit check, meaning it won’t impact your credit score. This makes BNPL especially attractive to shoppers with limited credit histories or those who want to avoid adding to their credit card balance during the holidays. With just a few clicks, you’re approved and on your way to spreading that holiday cheer.

These are the reasons BNPL is on the rise, especially during the holiday season. It’s fast, it’s flexible, and it lets you pay without feeling the full weight of holiday spending all at once. But, as with most good things, there’s a catch.

The Downsides of BNPL: What You Need to Know Before You Click "Buy"

BNPL can seem helpful, but it comes with serious risks that could lead to financial trouble once the holidays are over. Here’s what to be aware of before relying on split payments.

1) BNPL Encourages Overspending

When you’re only paying a fraction of the total upfront, it’s easy to lose track of how much you’re actually spending. A $200 gift becomes "just $50 today," making it tempting to add more items to your cart. But each of these "small payments" adds up quickly. By January, you could be juggling several BNPL payments on top of regular expenses, and without careful planning, there’s less room in the budget for unexpected expenses.

2) Missed Payments Come with Expensive Penalties

BNPL may seem like a convenient option, but missing even one payment can make it very costly. Late fees are often high — an average of $25 — and some BNPL companies will charge fees every time you miss a payment cycle. What starts as a way to avoid interest charges can end up piling on more debt if you fall behind, with each missed payment adding to your overall costs.

3) BNPL Doesn’t Build Your Credit, But It Can Hurt It

Although BNPL payments aren’t typically reported to credit bureaus, missed payments can be. If you default on a BNPL payment and it goes to collections, it will likely show up on your credit report, potentially damaging your credit score. Unlike credit cards, paying BNPL on time won’t improve your credit, but missing payments can harm it.

BNPL can make holiday shopping feel more affordable in the moment, but it also has the potential to create serious financial stress if not managed carefully. BNPL can be a helpful tool, but it can also create a budget mess if used without a plan.

A Tale of Two Holiday Shoppers

To see how "buy now, pay later" can play out, let’s look at two different holiday shoppers: Jamie and Alex. Both want to make the holidays memorable for their families, but their approaches to using BNPL lead to very different outcomes.

Jamie: Overextended and Stuck with Payments

Jamie loves the holidays and wants to get something special for everyone. She sees BNPL as a way to spread out the costs, loading her cart with a tablet for her sibling ($200), kitchen gadgets for mom ($150), toys for the kids, a designer watch for her husband, and a few stocking stuffers — $850 in total.

With BNPL, Jamie only has to pay $212 today. It feels manageable, and she’s sure that she’ll figure out the remaining payments after the holidays.

But by February, Jamie’s regular expenses are piling up alongside her BNPL payments, and a few missed due dates are adding unexpected fees to the total. Soon, Jamie is behind on multiple payments, with late fees piling up on top of the gift costs. What felt like a convenient option in December has turned into financial stress, with lingering payments and late fees hanging over them well into the new year.

Alex: A Planned Approach with Financial Cushion

Alex, on the other hand, has been saving for the holidays all year, setting aside a bit each month in a high-yield savings account (HYSA) with 4% interest. He uses his holiday fund to cover most gifts within his budget.

When he finds a beautiful necklace for his wife that’s a bit pricier than expected — $300 — he turns to BNPL. With zero interest, Alex uses BNPL to split up the payments into four, paying $75 today. He knows he can afford the rest of the payments comfortably with the money still in his holiday fund, but spreading out each payment over a period of time means he can keep earning more interest on those savings.

By planning ahead and limiting BNPL to one item he can afford, Alex enjoys the holidays without added stress. Each BNPL payment is covered, and he avoids any interest or late fees. His January budget is intact, and he starts the new year without extra debt (and a little extra money earned in interest!).

Now, obviously, I wrote these examples to be a little over the top. But slight hyperbole aside, they do show two sides of BNPL — one where it’s a helpful tool and another where it leads to unplanned debt. Used wisely, BNPL can ease holiday spending. But without a plan, it can quickly turn into more than you bargained for.

How to Use BNPL Responsibly This Holiday Season

If you’re thinking of using BNPL for holiday shopping, here’s a quick guide to keep your spending in check and avoid unwanted surprises come January.

Do: Set a holiday budget first. Decide on a total budget for holiday spending before you start adding items to your cart. This way, you know exactly how much you can afford to spend, even if BNPL makes those purchases look more manageable upfront.

Don’t: Use BNPL for everything. Avoid using BNPL on multiple items. The more BNPL plans you open, the harder it becomes to track payments and stay on top of due dates. Stick to one or two items to prevent an overload of installment payments next month.

Do: Set up payment reminders. Missed payments can add costly fees and even hurt your credit. Set up reminders in your calendar or phone for each BNPL payment, so you never accidentally miss one.

Don’t: Assume BNPL is "free." Remember that while BNPL isinterest-free, it’s still debt that requires timely payments. Be aware of late fees and know that missed payments can add up quickly, turning a manageable balance into a more significant burden.

Do: Use BNPL only if you can afford the full price. If you wouldn’t be able to buy the item outright, consider skipping it. Using BNPL when you know you can cover the full cost is a safer way to avoid potential debt issues if your budget gets tight.

Don’t: Let BNPL derail your financial goals. BNPL can make holiday shopping feel affordable now, but don’t let it interfere with other financial priorities. If it means delaying a savings goal or stretching your budget thin, it’s best to hold off.

Making the Most of the Holidays Without Sacrificing Financial Peace

The holidays are about giving, celebrating, and creating memories with those we love. And while it’s tempting to stretch our budget to make the season feel perfect, it’s important to keep the big picture in mind. Buy-now-pay-later can be a valuable tool to help spread out costs, but it’s not a magic solution — and, if overused, it can turn into a source of stress after the holidays are over.

By setting a realistic budget, using BNPL selectively, and keeping an eye on payment schedules, you can enjoy the benefits without the risks. Remember, thoughtful spending is just as meaningful as generous giving, and a financially sound start to the new year is a gift to yourself that lasts far beyond the season.

So here’s to a joyful holiday season — one that’s memorable, generous, and free of debt hangovers!

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What Lies Ahead for S&P 500 ETFs in 2025?

Thu, 21 Nov 2024 19:00:00 +0000

Key Takeaways

The S&P 500 has gained nearly 25% each of the past two years; will the trend continue?
Vanguard S&P 500 ETF, iShares Core S&P 500 ETF and SPDR S&P 500 ETF Trust all have benefited from the rise.
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The S&P 500 was up about 24% in 2023 and has similarly gained 24.9% this year. Cooling inflation, a less-hawkish Fed, an AI boom, a tech rally and an improvement in corporate earnings have led the key Wall Street stock index to log more than 20% gain in back-to-back years. But will the rally continue in 2025?

Probably not. At least, Wall Street experts believe so.

Inside Wall Street Experts’ Forecasts

Morgan Stanley has increased its 12-month base case price target on the S&P 500 to 6,500, the firm's equity strategist Michael Wilson and other strategists wrote in a note on Monday. This equates to around 10% of the current level.

BMO Capital set next year’s S&P 500 target at 6,700, or a 14% gain from here. UBS sees S&P rising to 6,400 in 2025, about 9% from here. Goldman’s 2025 stock market forecast calls for the S&P 500 to gain 11% (read: How to Play Wall Street Stocks in 2025? ETF Strategies in Focus).

Investors should note that if the S&P 500 is able to deliver another 20% gain in 2024, it would be the first time since 1998-1999 that the index experienced successive years of such high growth, per Yahoo Finance.

The End of Outsized Returns?

If we believe those strategists, we see that the exceptional returns of the past two years may not continue into 2025. Per BMO, periods of slower growth are normal and healthy for bull markets. BMO Capital also believes that 2025 will bring a more balanced performance across sectors, sizes and styles. It also noted that year three of a bull market typically yields returns below the gains of the first two years and underperforms the historical average return for the S&P 500.

Inside the Bullish Thesis

Morgan Stanleyexpects the recent broadening in U.S. earnings growth to continue in 2025 as the Federal Reserve is likely to cut interest rates next year and business cycle indicators improve further.Republican Donald Trump has won a second term as U.S. president. Trump’s previous term proved solid for U.S. stocks.

Most strategists agree that the Federal Reserve's expected interest rate cuts and strong U.S. economic growth could broaden the rally beyond mega-cap tech stocks. We also do not expect a massive economic downturn as the primary risk to the markets next year.

The S&P 500 Earnings Big Picture

Looking at Q3 as a whole, total earnings for the S&P 500 index are expected to be up 7.7% from the same period last year on 5.6% higher revenues. Excluding the contribution from the famous Mag 7 group, Q3 earnings for the rest of the 493 S&P 500 members would be up only 2.3% instead of 7.7%.

For the last quarter of the year (2024 Q4), total S&P 500 earnings are expected to be up 7.7% from the same period last year on 4.9% higher revenues. Unlike the unusually high magnitude of estimate cuts that we had seen ahead of the start of the Q3 earnings season, estimates for Q4 are holding up a lot better,

Earnings growth is expected to go up entering into 2025 with first two quarters likely to produce 11.2% and 12.5% growth rate, respectively, on 5% higher revenues each quarter. Also, note that on a calendar-year basis, the 7.9% expected earnings growth this year (2024) will be followed by double-digit gains in 2025 and 2026.

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Weak Consumer Spending Expected in 2025?

Analysts warn a trend of cooling inflation could quickly reverse if President-elect Donald Trump implements his proposed tariffs of 10-20% on all imports and up to 60% on Chinese goods. The Peterson Institute for International Economics (PIIE) estimates these tariffs could cost the average American household an additional $2,600 annually, as quoted on Yahoo Finance. A slowdown in consumer spending could act as a risk to the market’s strength in 2025.

Is Valuation Ripe?

Bank of America believes that the S&P 500 is statistically expensive by almost every measure. The estimated price/earnings (P/E) ratio for the S&P 500 Index is 26.58X (as of Nov. 19, 2024). The S&P 500’s last 10 years’ P/E average is 18.32X, while the 20-year average is 15.80X. For this reason, the current P/E can be considered expensive.

S&P 500’s price/book (P/B) ratio was 5.20X as of Nov. 19, 2024, way higher than the minimum of 1.78X recorded in March 2009 and even higher than the maximum of 5.06X recorded in March 2000. Current price/sales (P/S) ratio for the S&P 500 is 3.09X, again way above the minimum of 0.80X recorded in March 2009. The figure is also above the maximum of 3.04X recorded in December 2021.

However, the S&P 500 has considerable exposure to the Mag-7 group, which boasts rich valuation due to its focus on the booming artificial intelligence space. We do not expect this exposure to hurt the S&P 500 ETFs.

S&P 500 ETFs in Focus

Against this mixed backdrop, investors may track S&P 500 ETFs like Vanguard S&P 500 ETF VOO, iShares Core S&P 500 ETF IVV and SPDR S&P 500 ETF Trust SPY. Investors can also play the growth part of the index with SPDR Portfolio S&P 500 Growth ETF SPYG and the value part of the index with SPDR Portfolio S&P 500 Value ETF SPYV.

SPDR Portfolio S&P 500 High Dividend ETF Fund SPYD is a good bet for the dividend plays of the index. Investors can also bet on the leveraged S&P 500 ETFs like Direxion Daily S&P 500 Bull 3X Shares SPXL and ProShares Ultra S&P500 SSO, if the index manages to record some gains in 2025. If the S&P 500 falls, inverse ETF ProShares Short S&P500 ETF SH will rise.

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4 Crypto-Centric Stocks to Gain as Bitcoin Looks Set to Hit $100,000

Thu, 21 Nov 2024 19:00:00 +0000

Key Takeaways

Bitcoin reached new record highs on Wednesday, passing $97,000 for the first time.
Bitcoin-related stocks such as NVDA, BLK, CME and ACN look poised for strong growth in the near term.
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The cryptocurrency market has been on a rally, with Bitcoin (BTC) setting multiple new records since Donald Trump’s victory in the U.S. presidential election. On Wednesday, Bitcoin surpassed $97,000 for the first time, touching a high of $97,628.

Market experts had predicted Bitcoin would surpass $80,000 by the end of November after the cryptocurrency retreated in the second and third quarters of 2024 from its previous all-time high of $73,770 attained in March. However, Bitcoin has surpassed expectations in the past few weeks and is now on track to hit $100,000 anytime, fueled by hopes of a friendlier regulatory approach under Trump’s regime.

Given the positive outlook, investing in Bitcoin-centric stocks like NVIDIA Corporation NVDA, BlackRock, Inc. BLK, CME Group Inc. CME and Accenture plc ACN, which have strong growth potential for the near term, would be a prudent choice. Each of these stocks has seen positive earnings estimate revision in the past 60 days and carries a Zacks Rank #1 (Strong Buy) and 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Bitcoin on Track to Hit $100,000

The Bitcoin rally, which started after the Federal Reserve announced a 50-basis point rate cut in September, its first since March 2020, was fueled by Trump’s landslide victory in the U.S. Presidential election.

Bitcoin’s price has more than doubled in 2024, and in the past two weeks since Trump’s win, the cryptocurrency has rallied more than 40%. Over $4 billion has since flown into U.S.-listed Bitcoin ETFs.

During his campaign, Trump vowed to make the United States the “crypto capital of the planet,” including the creation of a strategic Bitcoin reserve and appointing regulators who support digital assets. This optimistic outlook is currently driving Bitcoin's rise.

Also, the Federal Reserve lowered interest rates by 25 basis points a day after Trump won the election week, marking its second consecutive rate cut in three months, which is being seen as a positive sign for the crypto market.

4 Bitcoin-Focused Stocks Likely to Gain

NVIDIA Corporation

NVIDIA Corporation is a major player in the semiconductor industry and has been one of the standout success stories of 2023. As a leading designer of graphic processing units (GPUs), the value of the NVDA stock tends to surge in a thriving crypto market. This is primarily due to the crucial role that GPUs play in data centers, artificial intelligence, and the mining or production of cryptocurrencies.

NVIDIA’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 1.4% over the last 60 days. Currently, NVIDIA sports a Zacks Rank #1.

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BlackRock

BlackRock is one of the world’s largest investment managers and is publicly owned. BLK was among the first companies from the traditional market to join the Bitcoin ETF race back in June 2023.

BlackRock’s expected earnings growth rate for the current year is 14.3%. The Zacks Consensus Estimate for current-year earnings has improved 4.4% over the past 60 days. BLK currently sports a Zacks Rank #1.

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CME Group

CME Group Inc.’s options give the buyer of the call/put the right to buy/sell cryptocurrency futures contracts at a specific price at some future date. CME offers Bitcoin and ether options based on the exchange's cash-settled standard and micro-Bitcoin and Ethereum futures contracts.

CME Group’s expected earnings growth rate for the current year is 9.4%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the last 60 days. CME presently has a Zacks Rank #2.

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Accenture plc

Accenture plc is a worldwide system integrator that offers consulting, technology and various other services. The company promotes Ethereum-based blockchain solutions to businesses, aiming to simplify payment processing.

Accenture’s expected earnings growth rate for the current year is 6.9%. The Zacks Consensus Estimate for current-year earnings has improved 3.2% over the last 60 days. ACN currently carries a Zacks Rank #2.

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AB InBev Invests $14M in Houston Brewery to Boost Beer Production

Thu, 21 Nov 2024 18:40:00 +0000

Anheuser-Busch InBev SA/NV BUD, alias AB InBev, has been keen on making investments in its portfolio to drive overall growth. The company has been investing to develop a diverse portfolio of global, international, and crafts and specialty premium brands in its markets. In the latest announcement, the company unveiled a $14-million investment in its Houston brewery, a cornerstone of BUD’s U.S. operations.

More on BUD’s Latest Announcement

Via this latest investment, AB InBev looks to upgrade facilities to retain industry-leading quality standards and drive efficiency; update the critical manufacturing equipment to make beer production possible; install air rinsers on can lines to lower water usage; replace plant infrastructure with the roof of the warehouse, elevators and doors; and update wireless, fiber and copper network connectivity.

This aforesaid investment, along with the prior investments in the Houston brewery and the $22.5 million investment made last year, looks to make advancements to the facility's internal systems in order to enrich workplace safety and boost brewery efficiency. With nearly 1,000 employees in its four facilities in Texas, the company boasts a leading position in the American brewing industry.

To date, the Houston brewery has a crucial role in the $2.3 billion capital investments in Texas. The company operates over 120 facilities across the country and, along with its distributor partners, has 65,000 staff.

In the last five years, the company has invested about $2 billion in its facilities in the country to create and sustain jobs to boost the communities’ economic prosperity.

What’s More About BUD?

Year to date, BUD’s shares have lost 14.1% versus the industry’s decline of 15.4%. AB InBev has been witnessing increased costs, including commodity cost inflation and business investments. Also, the company is prone to the headwinds related to the beverage industry and other macroeconomic challenges.

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Nevertheless, BUD’s pricing actions, ongoing premiumization and other revenue-management initiatives have been growth drivers. The company’s relentless executions, investment in brands and accelerated digital transformation have been bolstering sales. The expansion of the Beyond Beer portfolio, and investments in B2B platforms, e-commerce and digital marketing bode well.

This Zacks Rank #3 (Hold) company’s digital transformation initiatives have been on track, with B2B digital platforms contributing about 72% to its revenues in the third quarter of 2024. The company noted that the monthly active user base of BEES reached 3.9 million users in the third quarter. Its omni-channel, direct-to-consumer ecosystem of digital and physical products generated $350 million in revenues in the same quarter.

Stocks to Consider

Freshpet, Inc. FRPT, a pet food company, has a trailing four-quarter average earnings surprise of 132.9%. FRPT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings per share (EPS) indicates growth of 23.4% and 193.3%, respectively, from the prior-year levels.

Vital Farms VITL, which provides pasture-raised products, currently flaunts a Zacks Rank of 1. The consensus estimate for Vital Farms’ current financial-year sales and EPS indicates growth of 31% and 40%, respectively, from the prior-year levels.

VITL has a trailing four-quarter average earnings surprise of 82.5%.

Nomad Foods Limited NOMD, manufacturer and distributor of frozen foods, currently carries a Zacks Rank #2 (Buy). NOMD has a trailing four-quarter average earnings surprise of 3.1%.

The Zacks Consensus Estimate for NOMD’s current financial-year sales and EPS indicates growth of 4.9% and 25.5%, respectively, from the year-ago figures.

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Will Launch of Dual-Beam Lasers Drive IPG Photonics' Shares?

Thu, 21 Nov 2024 18:37:00 +0000

IPG Photonics IPGP unveiled its YLR-AMB dual-beam fiber lasers, which are specifically designed for additive manufacturing applications. These cutting-edge lasers, featuring independent control of core and ring beams, aim to deliver unprecedented precision, productivity and cost efficiency.

The YLR-AMB series includes two models, the YLR-1000/3000-AMB with a 1 kW core and 3 kW ring, as well as the YLR-2000/2000-AMB with 2 kW each for core and ring beams. These lasers optimize heat distribution, enabling faster, high-quality builds and achieving build rates over 324 cm³/h with >99.9% density on titanium alloys like Ti-6Al-4V.

The lasers are designed with a compact, rack-mountable form factor, making them easy to integrate into existing systems while minimizing space requirements. It supports single-mode and multi-mode outputs, with a total power capacity of up to 4 kW. The dual-beam system is effective for complex geometries, making it suitable for aerospace, medical devices and custom tooling applications.

IPG Photonics Corporation Price and Consensus

IPG Photonics Corporation price-consensus-chart | IPG Photonics Corporation Quote

IPGP Underperforms Sector & Industry YTD

IPGP shares have lost 32.3% year to date (YTD), underperforming the broader Zacks Computer & Technology Sector’s growth of 27.8% and the Zacks Lasers Systems and Components industry’s decline of 9.4%.

The decline in IPGP share price can be attributed to its 23% year-over-year revenue decline in the third quarter of 2024, led by reduced demand in industrial and e-mobility markets.

Sales fell sharply across key regions — 20% in North America, 27% in China, 29% in Europe and 8% in Japan, highlighting global demand challenges and regional headwinds impacting the company's performance.

Despite challenges, the company is gaining from its product innovations, partnerships and solid standing in high-power laser systems, positioning itself for long-term success in the expanding global laser technology market.

It has outperformed its industry peers, including Cutera CUTR and Microvision MVIS. Shares of Cutera and Microvision have lost 91.4% and 65.2% YTD, respectively.

Innovations & Acquisitions Aid IPGP’s Prospects

Emerging products like LightWELD are expected to drive the company’s sales. IPG Photonics’ success in the EV battery manufacturing sector is supported by advanced laser welding solutions.

Partnerships with companies like Miller Electric for handheld welding solutions are expected to drive top-line growth.

IPG Photonics' focus on innovation and growth is demonstrated by its recent acquisition of cleanLASER — a move that helps the company capitalize on the expanding laser cleaning market.

IPGP’s Cautious Q4 Outlook

For fourth-quarter 2024, IPG Photonics anticipates sales of $210-$240 million. Earnings are projected between 5 cents and 30 cents per share.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $230.59 million, indicating a year-over-year decrease of 22.15%.

The consensus mark for earnings is pegged at 22 cents a share, down by a couple of pence over the past 30 days. The estimate suggests a year-over-year decline of 75.28%.

IPGP’s Zacks Rank & Stock to Consider

IPG Photonics currently carries a Zacks Rank #3 (Hold).

Amphenol APH is a better-ranked stock in the broader sector, sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Amphenol’s long-term earnings growth rate is pegged at 16.39%.

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Airline Stock Roundup: CPA Q3 Earnings Beat, ALGT's Traffic & More

Thu, 21 Nov 2024 18:31:00 +0000

In the past week, Copa Holdings CPA reported better-than-expected earnings per share for the third quarter of 2024. However, quarterly earnings declined significantly year over year due to high operating costs. Another Latin American carrier Azul AZUL reported a wider-than-expected loss per share for the third quarter of 2024.

United Airlines UAL expects passenger volumes to be high this winter holiday season, driven by increased travel to European destinations. Allegiant Travel ALGT reported disappointing traffic numbers for October. Spirit Airlines filed for bankruptcy protection, which was widely expected after its merger talks with Frontier Airlines, which is owned by Frontier Group ULCC, halted.

Recap of the Recent Most Important Stories

1. Copa Holdings’ third-quarter 2024 earnings per share of $3.50 surpassed the Zacks Consensus Estimate of $3.48 but declined 20.3% year over year. Revenues of $854.7 million lagged the Zacks Consensus Estimate of $860.3 million and fell 1.5% year over year. Passenger revenues (which contributed 95.7% to the top line) decreased 1.8% from the third quarter of 2023. The downside was mainly led by the last-minute suspension of flights between Panama and Venezuela at the end of July, weaker currencies in Latin America, and increased industry capacity in the region. As a result, passenger yield declined 8.7% year over year and load factor (percentage of seats filled by passengers) decreased 1.6 percentage points.

CPA’s management expects current-year consolidated capacity to grow 9% year over year. The load factor is anticipated at 86% (prior view: 86.5%). The operating margin for the current year is expected to be 21-22%.

CPA was also in the news recently, owing to its upbeat traffic report for October. That news was covered in detail in the previous week’s write-up.

CPA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

2. Azul incurred a loss of 32 cents per share in the third quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 10 cents. Total revenues of $925.1 million lagged the Zacks Consensus Estimate of $953.2 million. With more people taking to the skies, Azul’s passenger revenues, contributing 92.8% to the top line, grew 4% year over year. For 2024, Azul expects capacity to increase 6% (prior view: 7% growth) from 2023.

3. United Airlines, which had a busy summer this year, carrying a record 48 million passengers, expects travel to surge this winter, led by increased travel to Europe. UAL stated that bookings to European destinations have been exceptionally strong, and have moved up nearly 30% from that recorded in 2019 and 10% year over year. Driven by upbeat passenger volumes, UAL expects to carry 25 million passengers during the holiday period, up 6% from the year-ago level.

4. At Allegiant, scheduled traffic (measured in revenue passenger miles) fell 15.7% from October 2023. Capacity (measured in available seat miles) for scheduled service fell 10.2% year over year. As traffic reduction was more than capacity contraction, the load factor in October 2024 declined to 78.5% from 83.7% a year ago.

5. Budget carrier Spirit Airlines filed for bankruptcy protection and reached an agreement to restructure its debt with its bondholders. Spirit Airlines flights will continue normally during the bankruptcy process. The financially ailing Spirit Airlines was dealt a body blow after the merger talks with Frontier Airlines fell through. Spirit Airlines' mounting debt, combined with declining revenues and rising costs, contributed to it ultimately filing for Chapter 11 bankruptcy protection. As part of the restructuring support agreement with existing bondholders, Spirit Airlines has received backstopped commitments for a $350-million equity investment. Spirit Airlines will complete a deleveraging transaction to equitize $795 million of funded debt.

Performance

The following table shows the price movement of the major airline players over the past week and during the last six months.

Image Source: Zacks Investment Research

The NYSE ARCA Airline Index decreased 6.9% to $63.94, as most stocks in the table above traded in the red. Over the past six months, the NYSE ARCA Airline Index increased 2.3%.

What’s Next in the Airline Space?

With the earnings season over, we expect updates from many carriers regarding their plans to meet the anticipated demand swell during the winter travel season.

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OSI Systems Wins $11M Healthcare Order: Time to Buy the Stock?

Thu, 21 Nov 2024 18:31:00 +0000

OSI Systems OSIS secured an $11-million order for its Optoelectronics and Manufacturing division.

The contract involves supplying critical electronic sub-assemblies to a prominent healthcare original equipment manufacturer known for its advanced and specialized medical solutions.

Will the Momentum in OSIS Stock Continue?

OSIS shares have gained 23.4% year to date, outperforming the broader Zacks Electronics - Miscellaneous Components industry and its peers like Allient ALNT, Kyocera KYOCY and Ouster OUST.

Over the same time frame, Ouster shares have risen 15.7%, while Allient and Kyocera shares have fallen 17.7% and 35.8%, respectively.

OSI Systems, Inc. Price and Consensus

OSI Systems, Inc. price-consensus-chart | OSI Systems, Inc. Quote

OSIS’s outperformance can be primarily attributed to record revenue growth, supported by higher product and service revenues across its Security, Healthcare and Optoelectronics segments. A substantial backlog of $1.8 billion reflects healthy future demand for its offerings.

The company reported revenues of $344 million in the first quarter of fiscal 2025, representing a 23% year-over-year increase. This growth was accompanied by a 34% rise in operating income.

OSI Systems’ Security division highlights strong growth, driven by a significant increase in demand for products and services. In the first quarter of fiscal 2025, the division's revenues rose 36% from the previous year, reflecting this heightened demand.

Optoelectronics and Manufacturing divisions delivered solid quarterly results. The divisions continue to benefit from the company's broad global manufacturing footprint and exposure to various end markets.

OSIS’ Prospects Ride on Continuous Contract Wins

OSIS has made progress on the $500-million contract with Mexico's defense agency, SEDENA, to improve port and border security. Additionally, the company obtained a $200-million major international project.

Through its Rapiscan Systems division, OSI was awarded a key contract to provide turnkey cargo screening services in Uruguay. The project includes installing, operating, and maintaining advanced cargo screening systems at critical border points to enhance security and customs efficiency.

OSI Systems secured a $17-million international order for Eagle P60 high-energy drive-through cargo and vehicle inspection systems, along with T60 trailer-mounted vehicle inspection systems.

The company received a $10-million order for Z Backscatter Van mobile inspection systems, which includes comprehensive training, service and support.

Zacks Rank

OSI Systems currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Deere Q4 Earnings Top Estimates, Sales Fall Y/Y on Low Volumes

Thu, 21 Nov 2024 18:30:00 +0000

Deere & Company DE reported fourth-quarter fiscal 2024 (ended Oct. 27) earnings of $4.55 per share, beating the Zacks Consensus Estimate of earnings of $3.90. The bottom line decreased 45% from the prior-year quarter.

The downside was mainly led by lower shipment volumes across all segments, reflecting weak demand. It was somewhat negated by the company’s pricing strategies and lower production expenses.

Deere & Company Price, Consensus and EPS Surprise

Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote

Net sales of equipment operations (comprising Agriculture & Turf, Construction & Forestry) were $9.28 billion, down 32.8% year over year. Sales topped the Zacks Consensus Estimate of $9.15 billion. Total net sales (including financial services and others) were $11.14 billion, down 27.7% year over year.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Deere’s Q4 Operational Update

The cost of sales in the reported quarter moved down 30.3% year over year to $6.57 billion. Total gross profit decreased 38.2% year over year to $2.70 billion. Selling, administrative and general expenses rose 2.4% to $1.23 billion from the year-ago quarter.

Total operating profit (including financial services) declined 52.1% year over year to $1.45 billion in the fiscal fourth quarter.

DE’s Q4 Segment Performance

The Production & Precision Agriculture segment’s sales declined 38% year over year to $4.31 billion. The figure beat our model’s estimated revenues of $4.03 billion for the quarter. The downside was led by lower shipment volumes.

Operating profit decreased 64% year over year to $657 million due to lower shipment volumes/sales mix, partially negated by reduced production expenses. Our estimate for the segment’s operating profit was $543 million.

Small Agriculture & Turf sales were down 25% year over year at $2.31 billion on low shipment volumes, somewhat offset by price realization. Our projection for the segment’s sales was $2.11 billion. Operating profit declined 47% year over year to $234 million. The figure was higher than our estimate for an operating profit of $147 million for the segment.

Construction & Forestry sales were $2.66 billion, down 29% year over year on lower shipment volumes. The figure lagged our projection of $2.92 billion. Operating profit decreased 36% year over year to $328 million due to lower shipment volumes/sales mix, partially negated by lower production expenses. Our estimate for the segment’s operating profit was $301 million.

Revenues in Deere’s Financial Services division were $1.52 billion in the reported quarter, up 13% year over year. The figure was higher than our estimate of $1.42 billion. The segment’s operating income was $231 million in the quarter under review, up from $229 million in the prior-year quarter. Our projection was $250 million for the quarter.

Net income for Financial services declined 9% year over year to $173 million in the fourth quarter of fiscal 2024.

Deere’s Q4 Cash & Debt Position

Deere reported cash and cash equivalents of $7.32 billion at the end of fiscal 2024 compared with $7.46 billion at fiscal 2023 end. Cash flow from operating activities was $9.23 billion in fiscal 2024 compared with $8.59 billion in the prior fiscal year.

At the end of fiscal 2024, DE’s long-term borrowing was $43.23 billion compared with $38.48 billion at fiscal 2023 end.

DE’s FY24 Performance

The company reported earnings per share of $25.62 in fiscal 2024, 26% lower than earnings of $34.63 in fiscal 2023. It beat the Zacks Consensus Estimate of earnings of $25.00.

Net sales of equipment operations (comprising Agriculture and Turf, Construction, and Forestry) decreased 19.4% year over year to $44.76 billion, which beat the consensus estimate of $44.63 billion. Total net sales (including financial services and others) were $51.72 billion, down 16% year over year.

Deere’s FY25 Guidance

Deere expects net income for fiscal 2025 between $5 billion and $5.5 billion.

Net sales for Production & Precision Agriculture are expected to decline 15% year over year in fiscal 2025. Sales of Small Agriculture & Turf are expected to drop 10%. Sales of Construction & Forestry are projected to move down 10-15%. The Financial Services segment’s net income is expected to be $750 million.

DE’s Share Price Performance

Deere’s shares have gained 10.8% in the past year compared with the industry’s 8.3% growth.

Image Source: Zacks Investment Research

Zacks Rank

Deere currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Farm Equipment Stocks

Let us take a look at how other farm equipment stocks fared in their earnings releases.

Lindsay Corporation LNN delivered adjusted earnings per share of $1.17 in fourth-quarter fiscal 2024 (ended Aug. 31. 2024), beating the Zacks Consensus Estimate of $1.04. However, the bottom line fell 33% year over year.

The company generated sales of $155 million, down 7% from $167 million in the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $154 million.

CNH Industrial N.V. CNH came out with third-quarter 2024 earnings of 24 cents per share, missing the Zacks Consensus Estimate of 28 cents. This compares with earnings of 42 cents a year ago.

CNH posted sales of $5.65 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate of $4.78 billion. The top line decreased 22.3% year over year.

AGCO Corporation AGCO delivered adjusted earnings per share of 68 cents in third-quarter 2024, missing the Zacks Consensus Estimate of $1.07. The bottom line fell 83% year over year. Low commodity prices and elevated input expenses impacted equipment demand in the quarter.

AGCO’s sales decreased 24.8% year over year to $2.6 billion in the September-end quarter. The top line missed the Zacks Consensus Estimate of $2.9 billion. Excluding the unfavorable currency-translation impacts of 0.6%, net sales fell 24.2% year over year.

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Container shippers hedging green transition with dual-fuel vessel orders

Thu, 21 Nov 2024 18:22:38 +0000

Blue Dolphin Q3 Earnings & Revenues Decline Y/Y Amid Weaker Margins

Thu, 21 Nov 2024 18:22:00 +0000

Shares of Blue Dolphin Energy Company BDCO have demonstrated a strong recovery, gaining 12.2% since reporting third-quarter 2024 earnings. The stock significantly outperformed the S&P 500 index’s 1.5% decline over the same period. Over the past month, BDCO shares have risen 26.1% compared with the S&P 500 index’s 1.2% increase.

Q3 Revenues & Earnings Performance

For the third quarter of 2024, Blue Dolphin reported total revenues of $82.1 million, down 19.9% from $102.6 million in the same quarter of 2023.

The company posted a net loss of $5 million or 34 cents per share against a net income of $7.1 million or $0.47 per share in the year-ago quarter.

The decrease was primarily attributed to less favorable refining margins and lower sales volumes, reflecting a challenging market environment.

Blue Dolphin Energy Co. Price, Consensus and EPS Surprise

Blue Dolphin Energy Co. price-consensus-eps-surprise-chart | Blue Dolphin Energy Co. Quote

Segment Performance

Refinery Operations: The adjusted refinery operations segment reported a deficit of $4 million for the third quarter of 2024, a sharp decline from a margin of $9.7 million in the year-ago quarter. This was attributed to inventory impairments of $1.9 million, resulting from the valuation of inventory at the lower of cost or net realizable value, along with a decline in refining margins.

Tolling & Terminaling: This segment reported a margin of $0.1 million for the third quarter of 2024, down from $0.2 million in the third quarter of 2023. Decreased revenues from tolling and terminaling contributed to the reduced performance.

Management Commentary

Blue Dolphin's gross margin for the third quarter declined significantly due to adverse market conditions. The company reported a total cost of operations of $86.9 million, exceeding its revenues of $82.1 million. This resulted in a gross deficit, with higher input costs and inventory impairments weighing heavily on profitability.

The operating margin was negative for the reported quarter as Blue Dolphin incurred a loss of $4.8 million from operations against an operating profit of $8.9 million in the prior-year period.

The net margin for the third quarter was -6.1%, reflecting a net loss of $5 million against revenues of $82.1 million. This is a stark contrast to a positive net margin of 6.9% in the same quarter of 2023.

Liquidity & Guidance

As of Sept. 30, 2024, Blue Dolphin reported $1.7 million in cash and cash equivalents, and restricted cash, a sharp decline from $18.7 million at the end of 2023. However, the company improved its working capital position significantly. It reported $9.9 million in working capital against a deficit of $6.1 million at the end of 2023.

Factors Influencing Headline Numbers

The company faced a combination of macroeconomic and operational challenges during the quarter. Key factors included:

Lower Refining Margins: Blue Dolphin cited unfavorable market conditions, including weak pricing dynamics for refined products.

Inventory Buildup: Inventory accumulation during low-margin periods and limited customer opportunities in export markets pressured working capital and profitability.

Maintenance Costs: Costs related to the turnaround of refinery equipment further constrained margins.

Other Developments

In the quarter, Blue Dolphin continued addressing regulatory and operational challenges, including decommissioning offshore assets mandated by regulatory authorities. The company’s efforts to resolve compliance issues and reduce liabilities reflect its broader strategy to enhance operational and financial flexibility.

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