The Energy Information Administration on Wednesday reported that U.S. commercial crude inventories fell by 2.1 million barrels for the week ended Sept. 15. Strategists at Macquarie had forecast a 700,000-barrel weekly decline. The EIA report also revealed supply declines of 800,000 barrels for gasoline and 2.9 million barrels for distillates. Macquarie strategists had forecast weekly inventory declines of 2.9 barrels for gasoline and 1.6 million barrels for distillates. Crude stocks at the Cushing, Okla., Nymex delivery hub fell by 2.1 million barrels for the week, the EIA said. Oil futures traded lower, with October…
Early indications show Klaviyo opening up to 20% above the IPO price
Klaviyo Inc. KVYO looks set to continue the trend of upbeat Wall Street debuts, as the profitable digital marketing software-as-a-service company’s stock is indicated to open up to 20% above the initial public offering price. The company said late Tuesday that its IPO of 19.2 million shares priced at $30 a share, above the expected range. The stock was expected to start trading on the New York Stock Exchange some time around midday Wednesday. An early indication from the NYSE suggests the stock will open between $34 and $36, or 13.3% to 20.0% above the IPO price. At the top of that range, the company would be valued at…
Nio’s stock bounces nearly 3%, a day after suffering its worst day in 4 years
Shares of Nio Inc. NIO bounced 2.8% in premarket trading Wednesday, a day after they suffered their worst day in four years, and their third-worst day since going public in September 2018, in the wake of the China-based electric vehicle maker’s announcement of a $1 billion convertible bond offering. On Thursday, the stock had tumbled 17.1% to $8.55, the lowest close since June 26, and has plunged 44.7% since it closed at a 10-month high of $15.46 on Aug. 3. That was the biggest one-day percentage drop since they fell 20.2% on Sept. 24, 2019, while the record decline was 21.2% on March 6, 2019. Among other China-based…
Stocks making biggest premarket moves: Pinterest, Instacart and more
Pinterest app on a mobile phone.
Andrew Harrer | Bloomberg | Getty Images
Check out the companies making headlines before the bell.
Dollar General — Dollar General shares fell 2% after JPMorgan downgraded the discounter to underweight from a neutral as the company’s core shopper grapples with persistent inflationary pressures and dwindling savings.
Pinterest — Shares climbed more than 3% premarket after management said at the company’s first investor day that it expects year-over-year revenue growth to accelerate following a slowdown in 2022 and 2023. Both Citi and D.A. Davidson upgraded to buy and increased their price targets in reaction Wednesday.
General Mills — The Cheerios and Yoplait maker rose 1% premarket after reporting fiscal first-quarter results slightly above Wall Street expectations, and reiterating its outlook for fiscal 2024.
Instacart — Shares of the grocery delivery company were down nearly 4% one day after its stock market debut. The stock opened at $42 on its first day of trading, after pricing its IPO at $30 a share late Monday.
Coty — The cosmetics maker gained nearly 6% premarket after raising its full year outlook for 2024, citing momentum in fragrances at its prestige brands, including Burberry, Calvin Klein and Gucci. It expects like-for-like sales to grow between 8% and 10% next year, compared to prior guidance of 6% to 8%.
Bausch Health — The pharmaceutical stock gained more than 5% before the open after Jefferies upgraded to a buy and raised its price target to $16. The investment bank cited strong third-quarter earnings, increased clarity on the Bausch + Lomb spinoff and likely legal victories as catalysts.
Goldman Sachs — Shares edged up fractionally premarket on reports the investment bank plans to sell lending platform Greensky as part of a broader pullback from consumer lending. The deal would be worth about $500 million, according to Bloomberg.
— CNBC’s Yun Li, Tanaya Macheel, Pia Singh and Samantha Subin contributed reporting
U.S. stocks open higher ahead of Fed rate decision
U.S. stock indexes opened higher as investors awaited the Federal Reserve’s interest-rate decision and Chair Jerome Powell’s comments. The Dow Jones Industrial Average DJIA was up 92 points, or 0.3%, to 34,601, while the S&P 500 SPX was rising 0.2% and the Nasdaq Composite COMP was advancing 0.1%. The U.S. central bank is widely expected to hold its benchmark interest rates steady at 2 p.m. ET, but investors will be scrutinizing the summary of economic projections and the press conference of Chair Powell for clues as to whether policymakers are determined to hike rates again in the remainder of 2023. Oil prices continued…
Double Your Returns: 3 Dividend Stocks Offering Income and Upside Double Your Returns: 3 Dividend Stocks Offering Income and Upside
Irrespective of the time and conditions of the stock market, savvy investors seek not only dividends but also growth prospects. The article lists three distinct stocks, each with its unique promise of returns and resilience. They’re all dividend stocks to buy for income.
The first one, an automotive giant, is steering towards a greener future by embracing electric and hydrogen technologies and expanding into emerging markets. The second, riding the waves of the energy market capitalizes on the shifts in global oil production and cleverly navigates logistical challenges. Lastly, the third, in the maritime sector, sets sail with eco-friendly vessels, long-term charter agreements, and a focus on niche market dynamics.
The article explores these three companies, exploring their strategies, performance, and potential for investors seeking dividends and growth opportunities. Whether a seasoned investor or a curious novice, these stocks offer enticing prospects.
Toyota Motor (TM)
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Toyota Motor (NYSE:TM) offers a dividend yield of 2.25%. Its fundamental goal is to achieve carbon neutrality. By 2035, Toyota aims to reduce global new vehicle CO2 emissions by over 50% by adopting a multi-pathway approach.
It focuses on battery electric vehicles (BEVs), aiming to sell 1.5 million units by 2026 and launching 10 BEV models, ranging from luxury to compact and commercial vehicles. Collaboration with partners and in-house production capacity expansion is part of Toyota’s strategy to secure the necessary battery supply.
Furthermore, Toyota is investing in three new platforms for BEVs: the body and chassis, electronic platform, and software platform. This holistic approach aims to create a unique and rational vehicle structure for BEVs, enhancing their appeal and efficiency. While BEV is the central focus, Toyota acknowledges the significance of hydrogen as an energy source.
The company is actively advancing hydrogen technology, especially in regions with high hydrogen demand, like Europe and China. Toyota focuses on commercial applications of fuel cell electric vehicles (FCEVs). It underscores Toyota’s belief in the potential of hydrogen to power various mobility solutions. It’s one reason it’s one of those dividend stocks to buy for income.
Emerging markets, particularly in Asia, are expected to grow significantly (30% or more) by 2030. Toyota recognizes the importance of increasing its presence in these markets to secure long-term growth.
Therefore, the company plans to strengthen its earnings base by focusing on hybrid electric vehicles (HEVs) to capture market growth. Lastly, Hybrid technology remains a key strength for Toyota, bridging traditional internal combustion engines and full electrification, catering to diverse consumer preferences.
Frontline (FRO)
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One of the most specific indicators of Frontline’s (NYSE:FRO) upside viability is its exceptional financial performance. For instance, in Q2 2023, Frontline reported its highest Q2 profit since 2008, even when considering an adjusted profit of $0.95 per share. The consistent payment of dividends, such as the cash dividend of $0.80 per share (dividend yield of 15.73%), signifies delivering value to its investors.
Frontline has capitalized on the rise of new oil exporters, such as the United States, Brazil, and Guyana. These emerging players have increased demand for tanker services, boosting Frontline’s ton-mile growth. The OPEC-led production cuts, primarily in the Middle East, have driven ton-miles, particularly for VLCCs. Thus, Frontline’s position in this segment has allowed it to benefit from these production adjustments.
Fundamentally, the Russian price cap on crude oil at $60 per barrel has complicated the logistics of shipping Russian oil. As a result, some vessels have shifted away from serving the Russian market, returning to non-Russian markets such as Suezmax and Aframax. While this has put pressure on rates due to increased capacity in these segments, Frontline has navigated this situation by optimizing its fleet utilization.
The company is capitalizing on refinery maintenance schedules that directly impact tanker demand. Seasonal fluctuations in demand for products like diesel and gasoline create opportunities for Frontline to optimize its fleet deployment.
As refineries complete maintenance and prepare for increased production, Frontline anticipates a surge in demand for transporting oil. This proactive approach positions the company to take advantage of the seasonal uptick in demand, ensuring consistent business opportunities.
Finally, the limited order book for new vessels in the VLCC and Suezmax segments strengthens the Frontline’s long-term prospects.
Euroseas (ESEA)
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Euroseas (NASDAQ:ESEA) provides a dividend yield of 7.84%. It acquired the motor vessel Terataki, a modern, eco-friendly 2,800 TEU feeder container ship. This vessel complies with EEDI Phase 3 standards and incorporates sustainability-linked features such as Alternative Maritime Power.
Notably, the company secured a 36- to 40-month charter agreement with Asyad Lines for the motor vessel Terataki at a growth rate of $48,000 per day. Additionally, Euroseas extended the contract for the motor vessel Joanna for six to eight months at a daily rate of $13,900.
They also secured new charters for motor vessels Rena P and Emmanuel P, each for 20 to 24 months, at $21,000 per vessel per day. These charter agreements are expected to contribute substantial additional revenues, ranging from $2 million to $4 million, over the same period. Such long-term contracts provide revenue stability and enhance financial performance.
Also, Euroseas has new buildings in progress, including seven eco-friendly feeder containerships with a total carrying capacity of 16,000 TEU. This expansion is expected to increase the company’s total carrying capacity to over 75,000 TEU upon delivery in 2024.
Furthermore, Euroseas boasts a high charter coverage rate, with approximately 93% of its fleet fixed for 2023 and almost 64% for 2024. This stability in charter coverage at profitable rates provides a strong revenue foundation. It is reducing the company’s exposure to charter rate fluctuations.
Finally, the company’s focus on the 1,000 to 3,000 TEU range, including feeder vessels, aligns with favorable market dynamics, as this size category is expected to decline in the coming years. This positions Euroseas to benefit from reduced competition and improved charter rates in this segment. This makes it one of those dividend stocks to buy for income.
On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Instacart and Arm shares fall premarket as all eyes turn to Klaviyo
Grocery-delivery app Instacart CAR, known officially as Maplebear Inc., fell 4% in premarket trade Wednesday, a day after the stock debuted on Wall Street with a bang, opening 40% above where its initial public offering priced before easing later on — potentially paving the way for more IPOs after a two-year dry spell. Arm Holdings Plc. ARM, fell 1.8%. That stock, which went public last week with some fanfare, has now lost 9% in the week to date as the initial shine seems to be wearing off. The reception from Wall Street analysts hasn’t been very enthusiastic. Of the four analysts surveyed by FactSet, who have already…
3 AI Chip Stocks That Should Be on Every Investor’s Radar This Fall
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Nvidia’s (NASDAQ:NVDA) dominance in 2023 on the emergence of its AI chips has investors seeking the next AI chip stock that can provide similar returns. Pretty much every tech firm and every chipmaker is addressing the opportunity in some form or another. This has led to the rise of AI stocks to buy.
In reality, there are but a few firms in the chip space to consider. Nvidia has done so incredibly well that there’s no reasonable argument against it. I won’t discuss it here simply because it’s too obvious at this point.
Instead, the other big AI chip firms are discussed here because they are massive opportunities as Nvidia cools very, very slightly. So here are other AI stocks to buy.
AMD (AMD)
AMD (NASDAQ:AMD) isn’t that far behind Nvidia when it comes to AI chips. The stock has received a lot of press as the 1st runner-up this year in the AI race. It should receive a lot more, especially later in the fourth quarter.
AMD plans to debut its new AI chips, the MI300 series, later this year. The firm is already receiving strong enterprise interest in regard to the chips. That’s a strong signal that Nvidia’s chips, despite being heralded for their supremacy, are not the only chips that end users want. The truth is, they’re expected to challenge Nvidia’s chips when released.
AMD has a clear opportunity to challenge Nvidia for AI chip market share. It also has an opportunity to modify those chips for the Chinese market. Other firms have modified their chips for sale to China which faces performance limits on chips imported into the nation. AMD has not yet modified its chips and thus could open up additional revenue streams should it choose to do so.
Intel (INTC)
Intel (NASDAQ:INTC) is always in the conversation when it comes to chip stocks with potential. The firm has not had the greatest track record of late but its AI chips make it worth following, especially this fall.
In fact, Intel is already on record stating that its Gaudi 2 chip will beat Nvidia’s H100 GPU this fall. Intel’s Gaudi 2 chip went head-to-head against the H100 GPUs in a series of 8 tests. Nvidia’s chips were the fastest at all 8 tasks. However, it could soon outperform Nvidia’s H100 in some applications. The Gaudi 2 chips have emerged as the only viable alternative at this point which makes the stock highly intriguing moving into the fall
Beyond that, Intel is also planning to release its next-generation Gaudi 3 chip sometime in 2024. It’s clear that Intel has a chance to make inroads into enterprise AI that can meaningfully propel the firm forward and raise share prices.
Qualcomm (QCOM)
Qualcomm (NASDAQ:QCOM) is, in general, a very promising stock at the moment. It offers a substantial upside in its target price and a healthy dividend as well. The combination of both implies that investors could realize strong returns should they place their capital in its shares now.
Qualcomm is very well known as a major supplier of chips to Apple (NASDAQ:AAPL). It is well-established within that vertical. Perhaps unsurprisingly then, Qualcomm is planning to apply its knowledge of phone chips to AI. The firm intends to build Snapdragon chips that process AI tasks directly on smartphones. That would mean that smartphones would then not be reliant upon data center AI and cloud processing for AI applications. This makes it one of those AI stocks to buy.
Qualcomm could then sell those chips to Apple which would be a major victory. Apple has long sought to distance itself from Qualcomm and bring chip production in-house. However, the efforts have not panned out. Qualcomm would score a massive victory if it could achieve that goal and hold Apple hostage as an AI-chip supplier for its iPhones.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Exscientia’s stock rockets toward a record gain after AI-driven drug discovery collaboration with Germany’s Merck KGaA
The U.S.-listed shares of Exscientia PLC EXAI soared 28.5% toward a record one-day gain, and enough to pace all premarket gainers on major U.S. exchanges, after the U.K.-based precision medicine company announced a collaboration with Germany-based Merck KGaA MKKGY XE:MRK for the discovery of drug candidates across oncology, neuroinflammation and immunology. The multi-year collaboration will utilize Exscientia’s drug design and discovery capabilities, which are driven by use of artificial intelligence. As part of the collaboration, Exscientia will receive an upfront payment of $20 million in cash, and will be eligible…
Beware! 3 Value Stocks Waving Massive Red Flags Right Now.
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Value stocks are the perfect haven in today’s choppy stock market. Instead of looking to high-flying tech stocks, many investors are flocking to companies with low price-to-book ratios and other undervaluation metrics.
But value traps abound in today’s market. Investors must be more discerning than blindly buying a stock when a ratio hits an arbitrary mark, or when the share price falls substantially. Instead, look past ratios and explore why the company’s metrics are what they are. In many cases, institutional investors and smart money are moving away from these value stocks and bringing share prices down with them. Don’t fall for the value trap. Before buying, determine what’s happening under the hood: Is the company selling its product as well as it used to? Can it operate at full capacity in today’s economy? Does it have a viable long-term strategy?
These are just a few questions to ask before picking a value stock. Unfortunately, these companies are waving red flags as soon as you peek below the surface. Here are three value stocks to avoid.
Realty Income (O)
Realty Income (NYSE:O), the Monthly Dividend Company, is a favorite among value investors. The REIT has a diversified, well-established commercial consumer base that ensures investors keep seeing reliable cash flow. But, cash distributions aside, the REIT faces substantial issues and limited growth prospects. REITs have fallen 30% since 2021 as interest rates and a tight economy wreak havoc on real estate. But the pain may not be over for Realty Income.
The company’s real estate portfolio and lease holding companies are particularly susceptible to inflation and interest rates. Realty Income’s own statement affirms that “rent increases may not keep up with the rate of inflation and other costs.” And serving as a warning sign for Realty Income investors, inflation ticked up last month. This month seems to be on the same trajectory. Likewise, elevated interest rates are here to sign, putting further pressure on Realty Income’s holdings.
Analysts are also concerned with Realty Income’s growth potential. One assessment noted that lacking viable prospects aligned with its current business model, Realty Income could “[be pushed] to take more risk as competition expands for its traditionally targeted assets.” Realty Income’s watchword is stability, but if it eschews stability for greater growth, the company’s bottom line could be at risk.
Imperial Brands (IMBBY)
Many see tobacco company Imperial Brands (OTCMKTS:IMBBY) as an ideal value stock at today’s price. And it is, compared to giant competitors like Altria Group (NYSE:MO). But whereas Altria and similarly large firms have a diversified portfolio and are firmly entrenched in the market, Imperial Brands boasts neither.
Cigarette smoking rates have halved in the past 20 years, with further decline on the way. And, while competitors diversify into e-cigarettes, vaping tech and even cannabis, Imperial’s unwavering commitment to cigarettes means it has limited long-term viability. Even within the cigarette segment, Imperial struggles. One analyst noted, “Brand loyalty to Imperial’s value brands is weak.” Slipping cigarette sales, a non-diversified product portfolio and limited brand loyalty are the perfect storm to make this value stock not worth of your investment.
Moderna (MRNA)
Moderna (NASDAQ:MRNA) seems like a great value stock today, trading at less than a quarter of its 2021 high. But ultimately, the pharmaceutical stock is a value trap as declining sales and tight margins make this stock not worth buying.
Quarterly sales fell over the past five periods, with last quarter reporting a pathetic $344 million in revenue. That’s a stark difference from the same quarter in 2022 when Moderna posted $4.75 billion in sales. The slip means Moderna posted a $1.38 billion loss last quarter, down from an already-bad $79 million profit the preceding period.
While Moderna might have legs with upcoming cancer treatments and experimental flu vaccines, remember that pharmaceutical development is a costly endeavor. As sales fall, long testing lead times serve to burn more cash than the company brings in. Ultimately, this value stock’s mid-pandemic heyday is over, and investors should jump ship now if they haven’t already.
On the date of publication, Jeremy Flint held no positions (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.