Madison Square Garden Entertainment Corp.’s stock
MSGE,
fell 5.3% premarket Monday, after the company said selling shareholder Sphere Entertainment Group LLC has launched a secondary offering of 7.2 million shares. Sphere intends to grand underwriters BofA Securities, Goldman Sachs and JPMorgan a 30-day option to purchase up to an additional 1.07 million shares. Madison Square Garden Entertainment said it will repurchase shares from the underwriters equal to about $50 million as part of its current share buyback authorization. It will fund the buyback with borrowings under its revolving credit facility, which has been amended to $150 million from $100 million. Once the buyback has closed, the company expects to have about $67 million remaining.
Klaviyo raises IPO price range to $27 to $29 a share
Klaviyo Inc.
KVYO,
the Boston-based digital marketing software-as-a-service platform, raised the proposed price range for its initial public offering on Monday to $27 to $29 a share from $25 to $27 previously. The news was reported late Sunday by Bloomberg. The company is scheduled to go public Tuesday on the New York Stock Exchange under the ticker symbol “KVYO.” Goldman Sachs, Morgan Stanley and Citigroup are the lead underwriters. Klaviyo is planning to offer 19.2 million shares to raise $556.8 million at the top of that range, at a valuation of $7.3 billion. The move comes after Instacart, which is also primed to go public this week, raised its price range Friday to $28 to $30 a share, from $26 to $28 previously, following the success of Arm Holdings’
ARM,
successful IPO last week. The Renaissance IPO ETF
IPO,
has gained 33% in the year to date, while the S&P 500
SPX,
has gained 16%.
Clorox expects August’s cybersecurity attack to have a ‘material’ impact on first-quarter results
Shares of Clorox Co. CLX dropped 2.2% toward a 7 1/2-month low in premarket trading Monday, after the cleaning and household products said a cybersecurity attack identified last month (Aug. 14) will have a “material” impact on fiscal first-quarter results. “Clorox is still evaluating the extent of the financial and business impact,” Clorox said in a statement. “It is premature for the Company to determine longer-term impact, including fiscal year outlook, given the ongoing recovery,” Clorox added. The company said it is operating at a lower rate of order processing, as the attack damaged parts of its information-technology…
3 Best stock to buy now | Stocks To Buy Now I 52 week low stocks to buy
3 EV Stocks With 10x Potential Over the Next 10 Years
Source: shutterstock.com/JLStock
Electric vehicles (EVs) are revolutionizing the global automotive industry. And, investing in EV stocks means tapping into a booming auto market. Established automakers are shifting to electric vehicles, and new players are joining the race, creating fierce competition with significant growth potential. EVs represent more than just cars. They encompass a whole ecosystem, from battery makers to charging infrastructure providers and autonomous driving software developers.
With that said, here are my top three EV stock picks for those looking for big-time growth over the next decade.
Byd Co. (BYDDF)
BYD Company (OTCMKTS:BYDDF) stock has climbed 12% in the past year, due primarily to the company’s impressive growth prospects. Despite this rise, BYDDF stock still looks appealing with a forward price-to-earnings ratio of 27.6x. Recently, BYD made a deal to acquire Jabil Inc.’s (NYSE:JBL) mobility business in China. This move could bolster its presence in electric components. Jabil produces printed circuit boards used in various sectors, including EVs and smartphones.
In August, BYD set a new sales record, delivering 274,386 vehicles. That represents a 5% increase from July and a substantial 57% jump from the previous year. The company aims to sell a minimum of 3 million vehicles this year, requiring an average monthly delivery of almost 302,000 vehicles for the rest of the year. Although Tesla (NASDAQ:TSLA) leads in global EV sales, BYD dominates in China and is the country’s largest automaker, ranking 10th globally in the first half of 2023.
Li Auto (LI)
Li Auto (NASDAQ:LI) is on a rapid growth path, driven by new models and an expansive retail presence in China. In Q2 2023, its revenue surged 229.7% year-over-year to $3.86 billion. The company boasts a 21% vehicle margin and $1.33 billion in free cash flow. With $10.17 billion in cash, Li Auto has ample financial flexibility for expansion and innovation.
LI has been in an upward trend since October 2022, reaching a high of $47 by August 2023.
Li Auto is a prominent Chinese electric vehicle manufacturer known for its smart SUVs with extended-range tech, notably the Li L7 SUV. It competes directly with Tesla’s Model Y and enjoys rapid growth in China due to the surging EV demand. Monthly sales consistently rise, highlighting strong demand, and its extended-range technology sets it apart.
Xpeng (XPEV)
XPeng (NYSE:XPEV) is a Chinese smart EV maker striving to accelerate the transition to smart electric vehicles through technology and innovation. The company is growing fast in its core segment, though there are other key factors worth considering when it comes to this stock.
Notably, XPeng made its X2 flying car debut in Dubai last October and later secured a special flight permit from the Chinese government. This means XPeng has become the first Chinese flying car stock with flight safety certification. The X2, introduced in July 2021, completed over 3,000 experiments and tests. Unlike competitors, it’s designed to fit in a home garage.
Moreover, the company acquired the self-driving unit of Chinese ride hailing company DiDi. This allows XPEV not only to develop low-cost EVs but also to collaborate on robotaxis. Xpeng’s advanced autonomous tech, already in testing for robotaxis, combined with DiDi’s extensive customer base, promises substantial future profits. Additionally, the $20,000 EV planned with DiDi is expected to feature autonomous driving. That’s likely to garner even more attention for the company in China and around the world.
On the date of publication, Chris MacDonald 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.
Ray Dalio warns of great disruptions, shares tips for new investors
Ray Dalio speaks during the 2023 Forbes Iconoclast Summit at Pier 60 on June 12, 2023 in New York City.
Taylor Hill | GGetty Images
U.S. billionaire Ray Dalio says new investors should have a diversified portfolio as economic and geopolitical headwinds persist.
“I would like to have diversification, because what I don’t know is going to be much greater than what I do know,” said Dalio, founder of one of the world’s largest hedge funds, Bridgewater Associates.
“Diversification can reduce your risk without reducing them sharply, if you know how to do it well,” he said at the Milken Institute Asia Summit in Singapore last week.
“Pay attention to the implications of the great disruptions that are going to take place because the world will be radically different in five years. And it’s going to become radically different year by year,” he explained.
It’s like going through a time warp. We’re going to be in a different world. And the disruptors will be disrupted.
Ray Dalio
Founder, Bridgewater Associates
The artificial intelligence evolution has caught the hedge fund manager’s attention too — but Dalio said he recommends investors put money in companies that adopt this new technology, rather than those creating them.
“It’s like going through a time warp. We’re going to be in a different world. And the disruptors will be disrupted,” Dalio said. “I don’t need to pick those who are creating the new technologies. I need to really pick those who are using the new technologies in the best possible way.”
Asia, an ‘exciting region’
Speaking to the audience at the summit in Singapore, Dalio said the city-state is a “very special place, in what will be a very exciting region.”
“The world landscape is changing, the world order is changing … And with Singapore as essentially a hub, it’s a terrific place to be.”
Asked about the growing number of family offices being set up in Singapore, Dalio shared the three biggest considerations one should take when choosing a country to invest in.
A country needs to have a good income statement and balance sheet, an environment of civility where “people [are] working together to make good things happen,” he said. The side that the country takes when an international conflict arises is also an important factor to consider, he added.
He highlighted that the biggest mistake investors make is “believing that markets that performed well, are good investments, rather than more expensive.”
Why Do 90% of Stock Traders Fail or Lose Money
3 Hypergrowth Stocks With Huge Potential Upside
Source: shutterstock.com/Lemonsoup14
Inflation is coming down, the economy remains robust, and anticipated rate cuts from the Fed are among key potential drivers soaring tech stocks higher. The excitement surrounding AI advancements further fuels investor interest in these stocks, as technology continues to reshape various industries.
Of course, investors looking at growth stocks remain focused on plenty of potential headwinds. Concerns persist for both high inflation or interest rates, or the prospect of a potential recession.
Let’s peer into three hypergrowth stocks with huge potential upside worth considering right now.
Li Auto (LI)
Li Auto (NASDAQ:LI) is thriving, nearly doubling its stock value with further potential, according to Wall Street.
Analysts have this stock’s one-year upside potential pegged at around 30%, but that could be light. Indeed, while this stock is less-renowned than its peer of XPeng, it remains a strong contender in the Chinese EV market. The company’s Q2 deliveries soared by 202% to 86,533 vehicles, enabling a significant turnaround from losses to profits with improving margins. Li Auto has shifted firmly into positive territory.
Li Auto is on a robust growth path, marked by surging deliveries and revenue, driven by new models and retail expansion in China. In Q2 2023, the company saw a remarkable 229.7% year-over-year (YOY) revenue increase to $3.86 billion. That included a 21% vehicle margin and $1.33 billion in free cash flow. Also, they have a substantial $10.17 billion in cash reserves for further expansion and innovation. August deliveries reached 34,914 vehicles, up 663.8% YOY, indicating sustained growth and potential for the stock to rise.
Lithium Americas (LAC)
Lithium Americas (NYSE: LAC) stock has dropped 22% in the last six months, but it’s a potential hidden gem. Trading near its 52-week low of $16.07, it could offer substantial gains in the future.
Additionally, the Thacker Pass project, valued at $5.7 billion after taxes and with a 40-year mine life, is a key asset. Anticipated annual EBITDA of $1.1 billion suggests significant returns when production commences.
Further, the company will split into two divisions, focusing on lithium projects in Argentina and Nevada. This move, supported by a $650 million investment, is expected to be completed by October. Despite a recent dip in LAC stock, its impressive 289% growth over the past five years solidifies its position as a strong player in its niche.
Advanced Micro Devices (AMD)
Advanced Micro Devices’ (NASDAQ:AMD) extensive presence in tech includes an 83% market share in game console processors. This is thanks to exclusive deals with Sony and Microsoft, driving 2022 gaming segment growth by 21% despite PC market challenges.
AMD plays an expanding role in data centers, supplying chips to industry leaders like Microsoft, Google, and Oracle. Thus, this drove a 64% revenue increase in its data center segment last year. With its versatile chips, AMD’s potential appears limitless. Its forward PEG ratio has fallen 85% in the past year to an enticing 0.08, indicating the stock is undervalued and an attractive buy.
On the date of publication, Chris MacDonald 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
The 3 Most Undervalued Under-$20 Stocks to Buy in September 2023
Finding undervalued stocks in a volatile market can be challenging, but also rewarding. Some stocks may trade below their fair value due to various factors, such as market sentiment, industry trends or company-specific issues. However, if these stocks have solid fundamentals and growth potential, they may offer attractive returns for investors who are willing to take some risk. In this article, we will discuss three undervalued under-$20 stocks that have strong growth prospects.
Kyndryl Holdings (KD)
Kyndryl Holdings (NYSE:KD) is a global IT infrastructure services provider that was spun off from IBM’s (NYSE:IBM) infrastructure services business in November 2021. The company’s prior relationship with technology sector behemoth IBM allowed it to specialize in offering a range of services. These include cloud migration, data center management, network optimization, cybersecurity and digital transformation.
Kyndryl is undervalued from a profitability perspective. Currently, the IT infrastructure services company trades at 2.9x forward EBITDA, which is even lower than IBM’s 11.3 times forward EBITDA. The technology services sector has had a tough time this year in terms of acquiring new clients and growing revenue. Both have affected Kyndryl. However, the macroeconomic environment is likely to improve in the near and medium-term, which could spur Kyndryl’s top-line growth figures. With a positive second quarter report that saw Kyndryl’s net loss decrease significantly, the company could be on a steady path towards profitable growth.
ZIM Integrated Shipping Services (ZIM)
ZIM Integrated Shipping Services (NYSE:ZIM) is a company I mentioned in a piece written in July when containerized shipping rates were still hitting new lows. However, as higher oil prices and an ongoing pileup at the Panama Canal place upward pressure on shipping spot-rates, now may be the good moment to revisit the Israeli shipping giant. ZIM provides door-to-door and port-to-port transportation services for various types of customers. The company derives a significant portion of revenue from spot contracts, which would allow the shipping company to capture higher margins as shipping rates go up. For those who doubt ZIM’s ability to be nimble and take full advantage of elevated shipping spot-rates, I’d advise them to look at the shipping company’s 2022 and 2021 earnings report. Here, it posted $12.5 billion and 10.1 billion sales figures, respectively.
ZIM’s shares have gotten beat up in 2023 due to slowing growth, again related the shipping spot-market. This included the loss of its juicy dividend. ZIM still trades at an attractive valuation with a forward-looking enterprise-to-EBITDA ratio of three to four times. For investors looking to increase their exposure to the shipping space, ZIM will have to be among their choices.
Weave Communications (WEAV)
Weave Communications (NYSE:WEAV) is an end-to-end communications platform for small and medium-sized businesses (SMBs). The cloud-based software company provides solutions for small businesses to communicate with their customers via phone, text, email, chat and video. Moreover, integrated into Weave’s platform are features such as online scheduling, payment processing, marketing automation and customer relationship management.
Though Weave is not yet net income positive, the communications platform has made serious strides to improve bottom-line profitability. From 2021 to 2022, Weave was able to compress its net loss margins from 51.7% to 49.7%. Furthermore, the company has continued delivering strong results in 2023. Weave’s shares trade at 3.3 times forward sales, which is relatively cheap for a tech company not yet generating net income. As the global economy moves away from high inflation and economic stagnation, Weave should continue to benefit from the growing SMB end-market. This stock and the others mentioned all earn their spot on our list of undervalued under-$20 stocks.
On the date of publication, Tyrik Torres 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
Top Wall Street analysts say these stocks have growth prospects
CrowdStrike IPO at the Nasdaq exchange June 12, 2019.
Source: Nasdaq
While macro uncertainty continues to distract investors, it is prudent to focus on companies that are well-positioned to navigate challenges with their solid execution and deliver attractive growth over the long term by capitalizing on secular trends.
Here are five such stocks chosen by Wall Street’s top analysts, according to TipRanks, a platform that ranks analysts based on their past performance.
Zscaler
First, we will look at cybersecurity solutions provider Zscaler (ZS). Earlier this month, the company reported its fiscal fourth-quarter results and outlook, which topped Wall Street’s expectations. That said, management cautioned that deals are taking longer to close due to a challenging macro backdrop.
Praising Zscaler’s performance, TD Cowen analyst Shaul Eyal said that the rising demand for the company’s Zero Trust solutions and disciplined spending drove the fourth-quarter outperformance.
The analyst noted that over the past seven quarters, Zscaler’s annual recurring revenue (ARR) has doubled to $2 billion from $1 billion. Other interesting points that the analyst focused on included the company’s large deals, a strong pipeline, and growing federal contracts. (Zscaler serves 12 of the 15 U.S. cabinet-level agencies.)
Further, the company continues to invest in AI and sees huge growth potential for its AI-powered features. It provides data protection capabilities to prevent the leakage of sensitive data through generative AI.
Overall, the analyst reiterated a buy rating on ZS stock with a price target of $195, saying, “Investments in AI, Cloud and go-to-market are set to accelerate growth.”
Eyal holds the 9th position among more than 8,500 analysts tracked on TipRanks. In all, 70% of his ratings have been profitable, with each generating an average return of 25.5%. (See Zscaler’s Financial Statements on TipRanks)
CrowdStrike Holdings
Another cybersecurity stock in this week’s list is CrowdStrike (CRWD), which recently reported upbeat fiscal second-quarter results and issued solid guidance.
In reaction to the impressive performance, Needham analyst Alex Henderson raised his price target for CRWD stock to $200 from $170 and reiterated a buy rating on the stock. The analyst noted that the company achieved strong growth in new products under its Identity, Cloud, and LogScale Security Information and Event Management (SIEM) offerings.
The analyst also highlighted management’s commentary about the company’s generative AI cybersecurity product called Charlotte AI, which they believe can immensely improve execution for customers by automating workflows. He added that the use of AI helped the company enhance its own adjusted operating margin, which increased by 472 basis points to 21.3% in the fiscal second quarter.
Henderson called CRWD one of his top recommendations in cybersecurity and said, “Crowd is taking market share with relatively stable pricing and strong new product uptake.”
The analyst also said that the company’s managed services, which are core to the Falcon Complete offering, are enjoying high demand and differentiate the platform from others like Microsoft (MSFT).
Henderson ranks 162nd among more than 8,500 analysts tracked by TipRanks. His ratings have been profitable 58% of the time, with each rating delivering a return of 15.1%, on average. (See CrowdStrike’s Technical Analysis on TipRanks)
Chipotle Mexican Grill
Next up is Mexican fast food chain Chipotle Mexican Grill (CMG). Baird analyst David Tarantino, who ranks 357 out of more than 8,500 analysts on TipRanks, said that CMG remains his top idea for investors with a 12-month horizon.
The analyst observed that the stock has pulled back since the mixed second-quarter results due to concerns about late Q2 2023 and early Q3 traffic, subdued Q3 restaurant margin outlook, and macro factors. Nevertheless, he feels that this pullback has created an attractive opportunity to buy CMG stock based on multiple positive catalysts that could emerge in the months ahead.
“Specifically, we expect signs of strong same-store traffic momentum and further pricing actions to lead to an upward bias to EPS estimates and support robust valuation metrics on CMG heading into year-end,” said Tarantino.
Additionally, he sees the possibility of CMG accelerating its unit growth to the high end of its target of 8% to 10% annually, supported by the hiring of additional construction managers this year. Tarantino estimates that a combination of about 10% unit growth and mid-single-digit comparable sales could drive low-to-mid teens revenue growth and more than 20% EPS increase, a profile which he believes deserves a premium valuation.
Tarantino reaffirmed a buy rating on CMG stock with a price target of $2,400. His ratings have been successful 62% of the time, with each rating delivering an average return of 10%. (See CMG Hedge Fund Trading Activity on TipRanks).
Lululemon
Athletic apparel retailer Lululemon (LULU) impressed investors with its fiscal second-quarter performance and improved outlook. The company experienced strong momentum in North America and a spike in its international business, mainly due to robust sales in China.
Commenting on the 61% growth in sales from Greater China, Guggenheim analyst Robert Drbul said that he continues to believe that China holds significant growth potential for Lululemon, as the company aims to quadruple international revenues by 2026. He also highlighted that Lulu intends to open a majority of its 35 new international stores, scheduled for this year, in China.
The analyst raised his Fiscal 2023 and 2024 earnings estimates and believes that demand for the company’s merchandise remains strong, as competitive pressures from upcoming athletic brands seem overestimated.
Drbul maintained a buy rating on LULU and a price target of $440, justifying that the company “stands to benefit from favorable secular tailwinds (health, wellness, casualization, and fitness, including at-home).”
Drbul ranks No. 958 out of more than 8,500 analysts tracked on TipRanks. Additionally, 57% of his ratings have been profitable with an average return of 5%. (See Lululemon Insider Trading Activity on TipRanks)
Acushnet Holdings
The last stock on this week’s list is Acushnet Holdings (GOLF), a manufacturer of golf products. Tigress Financial analyst Ivan Feinseth believes that the company is well-positioned to benefit from the ongoing growth in golf, driven by product launches and biannual new golf ball design introductions.
The analyst highlighted that GOLF’s strong brand name continues to be a growth catalyst, as its Titleist brand golf balls remain the preferred choice of PGA and LPGA Tour players. He also noted the strong growth in Titleist golf clubs, Titleist gear, and FootJoy golf wear segments, fueled by a wide range of innovative launches, including new TSR models that rapidly emerged as the most-played model on the PGA tour.
Feinseth increased his price target for GOLF to $68 from $62 and reiterated a buy rating, while emphasizing that the company is enhancing shareholder returns through ongoing dividend increases and share repurchases.
“GOLF’s incredible brand equity, driven by its best-in-class and industry-leading product lines, including FootJoy and Titleist, are major assets and the primary drivers of its premium market valuation,” said Feinseth.
Feinseth holds the 289th position among more than 8,500 analysts tracked on TipRanks. His ratings have been profitable 58% of the time, with each rating delivering an average return of 10.9%. (See Acushnet Stock Chart on TipRanks)