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JPMorgan to close 21 First Republic Bank branches

Business & Finance

01 June 2023, 5:31 pm 1 minute

Reuters exclusively reported that JPMorgan Chase & Co (JPM.N) will shut 21 branches of First Republic Bank by the end of the year as it integrates the failed lender into its operations.

Market Impact

JPMorgan is the largest U.S. lender, with more than 296,000 employees and 4,800 branches. It plans to invest in opening more locations while also expanding its digital offerings, executives told investors last month.

Article Tags

Topics of Interest: Business & Finance

Type: Reuters Best

Sectors: Business & Finance

Regions: Americas

Countries: United States

Win Types: Exclusivity

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Significant National Story

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3M, Caterpillar stocks lead unanimous rally in the S&P 500’s industrials sector

Shares of 3M Co.
MMM,
+8.36%
powered up 8.5% in midday trading Friday, toward their best one-day performance in three years, as part of a unanimous rally in the S&P 500’s
SPX,
+1.45%
industrials sector. Bloomberg reported Friday that 3M has reached a tentative settlement of at least $10 billion with multiple cities over water pollution claims related to perfluoroalkyl and polyfluoroalkyl substances, known as PFAS. The Industrial Select Sector SPDR exchange-traded fund
XLI,
+2.76%
climbed 2.7%, with all 77 equity components gaining ground. The sector’s second-biggest gainer was Caterpillar Inc.’s stock
CAT,
+7.57%,
which shot up 7.6% toward the best day since it climbed 7.7% on Oct. 27, 2022. 3M shares were having their best day since their record 12.6% rally on March 24, 2020. The stocks were also the best performers in the Dow Jones Industrial Average
DJIA,
+1.96%,
which powered up 619 points, or 1.9%, as investors cheered strong government employment data and the Senate’s passage of the debt-ceiling bill. The total price gains of 3M’s and Caterpillar’s stocks ($23.91) added about 158 points to the Dow’s price. 3M’s stock rally after it bounced 1.0% on Thursday, after closing Wednesday at the lowest price since Dec. 31, 2012, while Caterpillar’s stock closed Wednesday at a seven-month low.

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M, CRM, DG and more

People walk past Macy’s in New York City, January 26, 2023.

Leonardo Munoz | Corbis News | Getty Images

Check out the companies making headlines before the bell.

Nordstrom — Shares rose 4.7% after Nordstrom’s first-quarter results topped Wall Street’s expectations. The company posted earnings per share of 7 cents and revenue of $3.18 billion. Analysts had estimated a loss per share of 10 cents and $3.12 billion in revenue, according to StreetAccount.

C3.ai — The artificial intelligence company sank 21% after sharing disappointing guidance for the fiscal first quarter. That overshadowed a smaller-than-expected loss for the fiscal fourth quarter.

Salesforce — The software giant’s shares fell 6% after the company reported higher-than-expected capital costs and lower demand for consulting deals in its fiscal first quarter.

Okta — The cloud software company’s shares tumbled more than 20% Thursday. While Okta’s first-quarter results came above consensus analyst estimates, decelerating subscription revenue growth and smaller deal sizes from a worsening macroeconomic environment affected investor sentiment. BMO Capital Markets downgraded shares to market perform from outperform in a Thursday note.

Macy’s — Shares of the retail giant slid 7% premarket after the company missed revenue estimates for its most recent quarter, according to Refinitiv. Macy’s also slashed its full-year earnings and sales guidance, after “demand trends weakened” for discretionary items in March.

Lucid Group — The luxury electric vehicle maker saw its shares drop 12.5% after it said it’s raising about $3 billion through a new stock offering. It added that some $1.8 billion of the raise will come from a private placement with Saudi Arabia’s Public Investment Fund, which owns about 60% of the company.

Chewy — Shares jumped 17% after the pet products e-commerce company reported an earnings and revenue beat for the first quarter. The company also raised its full-year guidance and announced plans for expansion to Canada in the third quarter.

Dollar General — Shares tumbled 9% after the company reported an earnings and revenue miss for the first quarter. The company said the macroeconomic environment is more challenged than it had previously anticipated and reduced its number of expected new store openings.

CrowdStrike — Shares of the cybersecurity company fell 10% despite CrowdStrike’s first-quarter results beating analyst expectations. Sales reported 57 cents in adjusted earnings per share on $693 million of revenue. Analysts surveyed by Refinitiv were expecting 51 cents per share and $676 million per share. Several Wall Street analysts highlighted a slowdown in annual recurring revenue growth as a negative for the quarter.

Target — Shares traded down 1.4% after JPMorgan downgraded Target to neutral from overweight. The bank cited several factors, including a weakening consumer spending environment, ongoing share losses from recent controversies and grocery inflation headwinds.

Victoria’s Secret — The stock fell 13.6% after the company reported a quarterly earnings and revenue miss. The lingerie retailer reduced its full-year revenue guidance in the low single-digits range from the prior midsingle-digit range estimates.

CSX — Shares added 1.5% in premarket trading following an upgrade by UBS to buy from neutral. The Wall Street firm cited CSX’s strong network operation, which it believes will provide leverage to the next volume upturn. UBS also raised its price target to $37 from $33, suggesting nearly 21% upside from Wednesday’s close.

Veeva Systems — The computer application company got a 9% boost in its stock price after it posted better-than-expected earnings and revenue for the first quarter. Veeva also raised its full-year earnings per share guidance 26 cents.

Pure Storage — Shares rallied 5% following a better-than-expected first-quarter earnings report. The company’s full-year revenue guidance also topped analysts’ estimates.

— CNBC’s Tanaya Macheel, Samantha Subin, Jesse Pound and Michelle Fox contributed reporting.

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LI Stock: Li Auto is Still a Standout Among Chinese EV Stocks

As with most stocks, the “story” with Li Auto (NASDAQ:LI) is far from perfect. As I’ve argued in past coverage of LI stock, there is one major concern with this Chinese electric vehicle manufacturer.

At present, this risk is hindering the stock’s performance. It also underscores that it’s best to think twice before backing up the truck with this name, That said, don’t assume that LI is a “no-go” situation.

If you’re looking to make a calculated wager on the proliferation of EVs in China (the world’s largest EV market), LI continues to be one of your best bet among U.S.-listed Chinese vehicle electrification plays.

At least, that’s the takeaway, with the latest information available about the company. With metrics such as growth and profitability, the company continues to leave many of its peers in the dust.

A ‘Semi-Wait and See’ Situation

Sure, on the surface, Li Auto doesn’t seem to sport a discounted valuation. Based on sell-side consensus forecasts for 2023 earnings (64 cents per share), the stock trades at a price-to-earnings (or P/E) multiple of 45.4. Not exactly value stock territory.

Still, considering that forecasts call for this company’s earnings to rise by more than 70% in 2024, following another big jump in sales, it wouldn’t be all that unreasonable for the market to price LI stock at an even higher multiple. Perhaps, with this level of growth, Li deserves a valuation closer to that of the leading global name in the space, Tesla (NASDAQ:TSLA).

At current prices, TSLA trades for more than 58 times forward earnings. So, why doesn’t LI trade at an even more premium valuation? Like I hinted at above, it all has to do with a key risk with this company: falling margins.

The market may be bullish about Li’s sales growth potential, but unlike with Tesla, they are less sold on the prospect of Li turning this high sales growth into heavy earnings growth. In short, pricey but not fully priced, this is a ‘semi-wait and see” situation.

The Silver Lining

Admittedly, the aforementioned “situation” with LI stock hasn’t stopped shares from delivering a solid performance in 2023. Year-to-date, this EV play is up by nearly 38.5%. However, don’t take this performance to mean that, if you’ve yet to entered a position, you have “missed the boat.”

Shares have bolted higher over the past few months, because of some (but not all) of the “semi-wait and see” uncertainty clearing up.

For instance, Li keeps crushing it, in vehicle deliveries growth. During May, Li delivered a total of 28,277 vehicles, up 146% year-over-year (YoY), and up by double-digit on a sequential (month-over-month-basis).

In terms of earnings, the company also continues to win back the market’s enthusiasm. For the preceding quarter, although there was margin compression, non-GAAP net income nearly tripled YoY, and rose 46.1% sequentially. Li’s earnings for the quarter came in well ahead of analyst consensus.

Guidance for the coming quarters was also very promising. That’s where the silver lining comes in. If Li keeps trouncing expectations, with both sales growth and earnings growth, a further “clearing of uncertainty” could transpire, keeping the stock on an upward trajectory.

The Most Important Takeaway

Potential upside with LI (at around $29 per share) may go beyond shares merely re-hitting their past high-water mark (over $40 per share). The continued adoption of EVs in China points to even more runway.

Yes, Li is not the only company with this mega-trend in its corner. Other U.S.-listed Chinese EV makers, like Nio (NYSE:NIO) and Xpeng (NYSE:XPEV) also have it on their side. However, while NIO and XPEV have mostly just “talked the talk,” LI has, without question, “walked the walk.”

Perhaps hitting the sweet spot by focusing on electric SUVs for the mass affluent market, Li has been, and appears poised to continue being, adept at turning this trend into tangible strong fiscal performance.

With this, LI stock remains a much stronger vehicle for gaining exposure to the continued rise of EVs in China.

LI stock earns a B rating in Portfolio Grader.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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7 F-Rated Stocks to Sell in June

Summer is in full swing. June can be a great time of the year. It’s time to go to the beach, catch some rays and unwind. But if you’ve got F-rated stocks to sell in your portfolio, June won’t be fun for you at all unless you take some swift action.

Historically, June isn’t a great month for the stock market. On average, the stock market has been flat during June – a far cry from November, December and April, when the market does better.

That’s not to say you need to empty your portfolio this month, selling all your stock is never a good strategy. But it never hurts to evaluate your portfolio quickly and weed out those names that are most likely to underperform.

I suggest using the Portfolio Grader, a free tool that rates stocks on an “A” through “F” scale based on various metrics, such as earnings performance, momentum, analyst sentiment and qualitative factors.

Using the Portfolio Grader, you can more easily determine what F-rated stocks to sell this month. And you can give yourself a better opportunity to avoid the summer doldrums.

Here are seven F-rated stocks to sell now.

Nikola (NLKA)

Nikola (NASDAQ:NKLA) is a return entry on this list. It also made my list of F-rated stocks to sell in May. Nikola lost 29% over the last month, and I’m not expecting a reversal of fortune now.

Nikola is an electric vehicle company that makes hydrogen-electric trucks and heavy-duty vehicles. Earnings for the first quarter missed analysts’ estimates. Nikola reported $11.12 million in revenue, while analysts expected $12.35 million. Nikola also reported an EPS loss of 26 cents per share.

Nikola is having a hard time delivering and moving vehicles. It could only produce 63 of its Tre battery electric trucks in the first quarter and delivered only 31 to dealers.

Now facing a delisting threat from Nasdaq for failing to keep the stock priced over $1, Nikola called a June 6 shareholder vote to seek permission to share more shares to raise money. Could a reverse split be far behind?

I wouldn’t stick around to find out. NKLA stock has an “F” rating in the Portfolio Grader.

Mullen Automotive (MULN)

Mullen Automotive (NASDAQ:MULN) is another EV maker struggling – in fact; it’s already gone the reverse stock split route. Mullen executed a 1-for-25 split on May 4 to drive the stock price over $1 per share again and get back into Nasdaq compliance.

But did it work? Not for long.

Already the MULN stock price is down below $1 again. But the split also resulted in the company’s share price dropping lower than its authorized count.

That opens the door for rounds of heavy dilution from selling new shares and converting previously issued convertible shares.

So the result is that the stock is in a weaker position than it started, and it’s still not compliant with Nasdaq.

MULN stock lost another $1.30 per share with no revenue in its last earnings report. It has an “F” rating in the Portfolio Grader.

Lordstown Motors (RIDE)

This has not been a good year for many EV companies, so a third such name tops our list of F-rated stocks to sell.

Lordstown Motors (NASDAQ:RIDE) executed a 1-for-15 stock split in May to prop up its fading price. And while prices are now up to $3.40 per share (at this writing), RIDE stock is down 20% since the split went into effect.

Stock splits are rarely, if ever, an effective strategy.

Lordstown is only four years old. It was formed in 2019 to capitalize on EV interest by making and selling electric pickup trucks. Management envisioned making inroads into commercial use and developing pickup trucks for fleet use.

It hasn’t worked out that way at all. Lordstown announced in May that it planned to end production of its Endurance pickup because it was running out of cash and needed to find new capital.

The reverse stock split should appease investors and salvage the company’s funding deal with Foxconn, a Taiwanese manufacturer. Foxconn had bought 10% of Lordstown’s common stock for $47.3 million. But Foxconn says Lordstown is in breach of its agreement because the stock price fell below $1.

Lordstown is a mess right now, and RIDE stock is well-deserving of its “F” rating in the Portfolio Grader.

Astra Space (ASTR)

You can find F-rated stocks to sell in places other than EVs. You can look to outer space to find them as well.

Astra Space (NASDAQ:ASTR) is a company that’s specializing in the development and launch of satellites into space. Satellites are crucial in many functions, including weather monitoring, scientific research, military applications, communication and navigation.

It’s a heady business to be in, and for many investors, I’m sure it’s pretty exciting to invest in an industry that can be at the forefront of exploration. The idea of outer space—even the small area surrounding our globe—can be pretty exciting.

But profitable? Perhaps not.

Astra Space stock is down below 40 cents per share after losing 47% of its value since mid-February. The company didn’t report revenue for the first quarter, losing $44.89 million.

The company made a strategic shift late last year, laying off 16% of its workforce and announcing a switching focus to electric thrusters and a new launch vehicle. But that hasn’t mollified investors, who continue to avoid the stock.

They’ve got the right idea. ASTR stock has an “F” rating in the Portfolio Grader.

Ideanomics (IDEX)

Ideanomics (NASDAQ:IDEX) is another company that’s involved in the EV space. It got some attention in 2020 and 2021 during the meme stock heyday, but today you can pick up shares of IDEX stock for less than a nickel.

The early-stage EV company’s not on sound financial footing. Losses for last year were $282.1 million, and it had only $21.9 million in cash by Dec. 31. It can’t afford another year with those numbers.

There’s no telling if things got better or worse in the first quarter because Ideanomics has failed to file a Q1 report. On May 19, the company disclosed that it received a notice of noncompliance from Nasdaq because it could not file its 10-Q notice by the end of the first quarter.

IDEX stock is down 75% this year, getting an “F” rating in the Portfolio Grader.

Novavax (NVAX)

I’ve been skeptical about Novavax (NASDAQ:NVAX) for a while now. While the company and its investors had high hopes that it would develop and market a coronavirus vaccine in the U.S., it missed its window because it couldn’t get the regulatory approvals needed until October 2022.

Granted, it’s still pitching. Novavax got approval from a European Union agency in May for its Nuvaxovid protein-based Covid-19 vaccine. That opens the door for the EU to consider full authorization for the vaccine in adults.

But at this point, it’s way too little, way too late. Novavax seems unlikely ever to recoup the money it spent on Covid-19 vaccine research. The stock once traded for more than $250 per share is now less than $10.

First-quarter earnings missed on revenue, with Novavax reporting $80.95 million in revenue and an EPS loss of $3.41. Analysts were expecting $87.61 million in revenue and an EPS loss of $3.46.

NVAX stock has an “F” rating in the Portfolio Grader.

Tattooed Chef (TTCF)

Tattooed Chef (NASDAQ:TTCF) is a plant-based food company that offers vegan, gluten-free, vegetarian, soy-free, grain-free and organic offerings.

While it became a publicly traded company in 2020 following a SPAC blank-check merger, things haven’t been so rosy in recent quarters. Tattooed Chef couldn’t release its annual report in March, which triggered a stock sell-off. And in April, it got a notification from Nasdaq that it was out of compliance.

Shares slid below $1 nearly a month ago and currently trade for just over 50 cents. That’s a drop of 55% so far this year.

Earnings for the first quarter included revenue of $59.09 million, a drop of 12.7% from a year ago. TTCF reported a loss of 23 cents per share in EPS.

It’s enough to give investors indigestion. TTCF has an “F” rating in the Portfolio Grader.

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3 Dividend Stocks That Are Raising Their Payouts

When it comes to dividend stocks increasing payouts, most investors think of the dividend aristocrats. These companies have increased their annual dividend payments for 25 years or longer.

However, out of the 503 companies in the S&P 500, only 66 names make the cut. It’s an exclusive club, to be sure. The problem is that dividends are no longer the big deal they once were. As the Washington Post observed in February, “For index members, buybacks have exceeded dividends in every quarter but two since 2010.”

There are many reasons for this which I won’t get into, or we would be here all day. For now, lets take a look at some of the best dividend growth stocks the S&P 500 has to offer.

Symbol	Company	Price
AAON	Aaon Inc.	$86.61
ESAB	ESAB Corp.	$58.72
MAR	Marriott International	$167.79

Aaon (AAON)

Residential neighborhood subdivision skyline Aerial shot

Source: TDKvisuals / Shutterstock.com

Aaon (NASDAQ:AAON) used to pay a semi-annual dividend in July and December. However, in March the HVAC solutions provider switched to a quarterly payment of 12 cents, or 48 cents for the year. This change meant an increase of 20% for shareholders in the annual dividend rate when compared to 2022.

In early May, Aaon reported Q1 2023 results that included a 45.5% increase in sales, to a record $266 million. On the bottom line, its net income increased 103.9% to $36.8 million, up from $18 million in 2022.

“We posted a fifth straight quarter of record sales. At the same time, our backlog continued to grow to record levels. Our bookings are still very strong and continue to grow, even when excluding the impact of price increases,” stated CEO Gary Fields.

AAON stock is up 18% in 2023 and 65% YOY.

ESAB (ESAB)

Plenty of shipping containers stacked at the Port of Hamburg and blue sky

Source: Hieronymus Ukkel / Shutterstock.com

ESAB (NYSE:ESAB) provides welding and cutting products and solutions for many industries, including shipbuilding, pipelines and wind energy. The company’s history dates back to 1904. However, it only became ESAB in April 2022 when it was separated from its former parent, Colfax, which was renamed Enovis (NYSE:ENOV).

On May 11, the company announced it would increase its quarterly cash dividend to 6 cents a share with the July 2023 payment, 20% higher than the previous amount. The annual payment of 24 cents yields 0.40%. It’s important to remember the increase is more important than the yield.

When ESAB reported its Q1 2023 results, it raised its full-year 2023 outlook. It now expects 5.0% core sales growth for the year at the midpoint of its guidance, with earnings per share of $3.95.

Marriott International (MAR)

Woman standing in hotel room with luggage looking at the view. Hotel stocks.

Source: Boyloso / Shutterstock

Marriott International (NASDAQ:MAR) was one of the many travel-related public companies that suspended their quarterly dividend during the pandemic. The hotel operator then resumed its dividend in June 2022 with a 30-cent quarterly payout.

With the June 2023 payment, Marriott is increasing its quarterly payment by 30% to 52 cents. That’s 4 cents higher than its quarterly payment immediately before it suspended its dividend in 2020.

Despite the company’s growth story over the next few years, analysts are decidedly lukewarm about Marriott’s prospects. Of the 23 analysts who cover its stock, only seven rate it outperform or an outright buy.

While analysts might be skeptical, I’m not. Its median target price of $187 is 11% higher than where it’s currently trading. Additionally, the company raised its guidance for the year. It increased its revenue per available room worldwide to growth of 10-13% with adjusted EPS of $8.20 a share at the midpoint.

Marriott will do just fine in the second half of 2023.

On the date of publication, Will Ashworth 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.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.

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DG, CRM, AI, CHWY and more

A sign is posted in front of a Dollar General store in Vallejo, California, March 17, 2022.

Justin Sullivan | Getty Images

Check out the companies making the biggest moves midday.

Dollar General — Shares sank nearly 20% after the company reported an earnings and revenue miss for the first quarter. The company also slashed its full-year outlook, citing a macroeconomic environment that is more challenged than it had expected.

NetApp — Shares popped 9.5% following the company’s earnings and revenue beat after the close Wednesday. Adjusted earnings per share came in at $1.54 for its fiscal fourth quarter, versus the $1.25 expected from analysts polled by StreetAccount. Revenue was $1.58 billion, versus the $1.54 billion anticipated.

Chewy — The pet retailer’s stock surged about 25% after the company posted earnings per share of 5 cents, topping the 4-cent loss expected from analysts polled by Refinitiv. Chewy also beat on revenue. Its second-quarter revenue guidance also beat expectations, per StreetAccount.

Hormel Foods — The food producer’s stock gained 5.1% after the company reported fiscal second-quarter earnings per share of 40 cents, slightly above the 39 cents expected, per StreetAccount. However, revenue came in lighter than anticipated. Hormel also said it made progress on inventory levels and saw “meaningful improvement in fill rates.”

Pure Storage — The stock soared 21% on better-than-expected quarterly earnings and revenue. Pure Storage’s revenue guidance for the second quarter also topped estimates, per StreetAccount.

PVH — Shares tumbled 10% despite the company’s earnings and revenue beat after Wednesday’s close. Its full-year outlook was in line with consensus, but its second-quarter GAAP earnings-per-share guidance of $1.70 was below the $2.26 expected, per StreetAccount.

CrowdStrike — The cybersecurity stock lost 2% after the company reported quarterly results that showed slowing revenue growth.

Victoria’s Secret — Shares tumbled 8% after the lingerie retailer reported an earnings and revenue miss. The company also reduced its full-year revenue guidance in the low single-digits range from the prior midsingle-digit range estimates.

C3.ai — The artificial intelligence company dove 14% as a weaker-than-expected outlook eclipsed stronger-than-expected earnings for the previous quarter. The stock is still up sharply this year as investors bet on AI.

Salesforce — Salesforce shares lost about 4%. The drop in shares came as cost concerns and dwindling demand for consulting deals overshadowed better-than-expected results and an improved full-year earnings outlook.

Okta — The stock sank more than 18%. While the cloud software company lifted guidance for the 2024 fiscal year, management said “macroeconomic pressures are increasing.” JPMorgan Chase downgraded the stock to neutral from overweight Thursday.

Veeva Systems — The computer application company’s shares surged more than 18% after Veeva posted better-than-expected earnings and revenue for the first quarter late Wednesday. The company also raised its full-year earnings per share guidance.

Lucid Group — The luxury electric vehicle maker saw its shares drop 14% after it said Wednesday it’s raising about $3 billion through a new stock offering, and some $1.8 billion of the raise will come from a private placement with Saudi Arabia’s Public Investment Fund, which owns about 60% of the company.

bluebird bio — The biotech stock rose 4.9% following an upgrade to overweight from equal weight by Barclays. The firm said the company has several positive clinical trials on the horizon.

— CNBC’s Samantha Subin, Yun Li, Alex Harring and Tanaya Macheel contributed reporting.

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7 Long-Term Stocks to Buy and Hold Until 2033

Let’s take a quick look at stocks for investment until 2033. All are high-quality firms, meaning they’re stable and have the potential to continue growing. Granted, it might be hard to imagine some of these companies getting bigger. But that’s exactly what some detractors surely said a decade ago. The truth is that many of the best stocks of today will be the best stocks in a decade. Strong companies have many ways to maintain their dominance, including these seven.

Stocks for Investment Until 2033: Apple (AAPL)

Apple (NASDAQ:AAPL) is a no-brainer. Over the last decade alone, it’s become so omnipresent in our way of life that it’s hard to suggest it won’t continue to dominate. Better, its fan base is fervent, which won’t change any time soon. Those simple factors alone suggest that Apple is one of the most obvious long-term stock choices to invest in today. Further, Apple has grown so fast that it’s become very attractive to those determined not to miss out on gains this time around.

Back in 2013, AAPL shares traded at $15. Today they’re worth $175. No one knows precisely where they’ll be in 10 years but this forecast expects prices near $500. Investors should also consider that as Apple continues to mature that it will continue to raise its dividends as well.

Stocks for Investment Until 2033: Microsoft (MSFT)

Big Tech firms, like Microsoft, (NASDAQ:MSFT) have every chance of being just as strong as they are now in 10 years. Thanks in large part to the AI boom.

Microsoft has arguably set itself apart with a massive foray into AI ahead of others. The OpenAI investment gives it a first-mover advantage that will continue to matter. Google (NASDAQ:GOOG, GOOGL) has responded more slowly even as it makes inroads.

The other obvious question here is if AI is the future, why not invest in Nvidia (NASDAQ:NVDA)? Granted, there’s a strong case favoring Nvidia after its Q1 results for sure. It continues to make all the sense in the world, honestly. The only issue is that the chip sector’s cyclicality is very unpredictable making NVDA especially volatile. Therefore, holding for a decade may not be the best strategy.

Stocks for Investment Until 2033: Block (SQ)

Fintech stocks including Block (NYSE:SQ) hold massive potential. Over the next decade or so, consumers will continue to demand more modern methods of banking and financial services. Block’s current size, position, and growth mean that it is the best overall fintech stock to hold over that period.

Let’s pull back and consider the landscape here. Boston Consulting Group expects compound annual growth of 17% for U.S. fintech through 2030. Fintech revenues should grow from $245 billion to $1.5 trillion based on data released in early May. The sector is going to make a lot of investors rich in the coming years.

Block is the clear U.S. pick here. Truly risk-forward investors should consider Asian firms where 32% annual growth is expected through 2030. Square continues to be a massive part of Block’s performance. But Cash App has become an even bigger profit-generating machine for the company. Block continues to be positioned to capture that growth in the U.S. market.

Walmart (WMT)

I once read that Walmart (NYSE:WMT) fairly represents the U.S. economy. The idea was simple — Walmart offers a wide cross-section of the goods and services Americans buy. So, I’m sure there’s some truth to that notion.

However, from a growth perspective, Walmart outpaces the U.S. For example, U.S. GDP grew by 1.6% in the first quarter. GDP is a summation of the value of all the goods and services produced so it’s roughly analogous to revenue. And Walmart’s revenues increased by 7.6% in the first quarter so it continues to be a growth machine.

What many might not recognize when discussing Walmart is that the company is fast becoming an eCommerce force. eCommerce grew by 27% domestically and by 25% internationally. Walmart is not content to dominate brick-and-mortar retail. It is going to continue to chip away at Amazon (NASDAQ: AMZN) and other eCommerce-first firms well into the future.

JPMorgan Chase (JPM)

JPMorgan Chase (NYSE:JPM) has already shown investors the strategy it uses when it shrewdly took advantage of the recent banking collapse. While acting as a bulwark against total collapse, the company simultaneously played big brother and calculating advisor. It pledged funds to prevent a collapse of regional banks, sure. But it also swooped in and took what it wanted from First Republic: Wealthy coastal clientele.

JPMorgan Chase intends to get bigger – it’s already the largest bank in the U.S. – and become higher quality. It is getting bigger and making deeper inroads with the coastal elite. Unsurprisingly that has ruffled feathers and furthered divisions with political lines. In fact, GOP states have sent a letter to the company for religious bias in lending practices.

How does this all relate to JPMorgan Chase’s long-term prospects? It means the bank has become more entrenched with coastal wealth and the political associations therewith. That’s where the money is for the most part with tech in the west and finance in the east. It means the bank should only get stronger.

Applied Materials (AMAT)

Applied Materials (NASDAQ:AMAT) provides goods in the form of manufacturing equipment and services as software to the chip sector. It’s basically a high-quality stock that runs adjacent to the semiconductor industry and has growth prospects aplenty. The semiconductor industry should reach $1 trillion in revenues by 2030. That assumes 6% to 10% annual growth over the intervening years.

AMAT has been a tremendous growth stock over the last decade, providing 25.75% returns annually. Any investment placed 10 years ago and left untouched would have multiplied in value nearly 10 times. Some of that growth was due to 20% industry-wide growth in 2021 during the chip boom. Such spikes are unpredictable. But even absent that spike AMAT shares grew rapidly in the run-up.

One of my favorite ways to predict if a company will produce gains over time is by comparing returns on invested capital to the weighted average cost of capital (WACC). The greater the discrepancy, the better. Applied Materials’ ROIC is 33.92% and its ROIC is 9.68%.

Verizon (VZ)

The Verizon (NYSE:VZ) stock has not done well over the last decade. It provided 1.73% returns annually during the last decade. That means $1,000 would have grown to a “massive” $1,137 if left untouched. However, Verizon’s past, hopefully, won’t be its future.

The reason so many investors are keen on Verizon is 5G. The 5G market is expected to grow by roughly 60% annually between 2023 and 2030. Forget the recent past and embrace the potential of the future in other words. That’s what is required of investors in VZ stock over the coming years.

Verizon, though, is doing its part to sweeten that deal. It offers a dividend yielding 7.43% currently that hasn’t been reduced since 2000. That means investors get an actual return that is much higher in reality as long as Verizon continues to pay shareholders to hold onto their stock. Further, VZ stock has roughly 20% upside right now based on its target price.

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.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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7 Sorry Energy Stocks to Sell in June Before It’s Too Late

The landscape looks quite grim as we assess underperforming energy stocks. Despite the anticipation that China’s economic reopening would rekindle some lost vigor, many energy stocks are in a troubling position. Mounting oil inventories and growing concerns over recession have compelled investors to ponder over which energy stocks to sell in June to cut losses.

Although long-term supply constraints could eventually spur oil prices, the short-to-medium-term outlook forecasts lower energy prices. After a stellar performance in 2022, the energy sector has witnessed a significant downturn in 2023, with an 11.2% drop, according to the S&P Global 1200 Energy index, underperforming the broader S&P 500. Moreover, crude oil and regular gas prices in the U.S. are subdued, with projections hinting at continued low prices. Thus, it becomes imperative to identify the top underperforming energy stocks to sell now.

MRO	Marathon Oil	$22.47
ENPH	Enphase Energy	$181.47
TELL	Tellurian	$1.22
NOV	NOV. Inc.	$14.81
BTU	Peabody Energy	$18.31
CHK	Chesapeake Energy	$76.15
COP	ConocoPhillips	$99.53

Top Underperforming Energy Stocks: Marathon Oil (MRO)

Marathon Oil (NYSE:MRO) is a Texas-based energy titan with strong profitability metrics and steadfast fundamentals. Despite this, its stock, intriguingly, has dipped more than 22% in the last six months. Though its lackluster stock performance last year was somewhat puzzling, it appears more justified as we progress further into this year.

The plunge in oil and gas prices is a major factor weighing down Marathon and its peers, casting a long shadow on forthcoming quarterly results. U.S. oil and gas prices, particularly, took a major hit in the opening months of 2023. Top-line growth rates for Marathon in the past couple of quarters are firmly in the negative. Moreover, the firm’s analyst consensus revenue estimate for the year is at $6.8 billion, with a 10.4% drop from 2022 levels. Therefore, it’s perhaps best to steer clear of the stock for now.

Top Underperforming Energy Stocks: Enphase Energy (ENPH)

Enphase Energy (NASDAQ:ENPH) is a top residential solar inverter realm player, boasting a robust growth pathway. However, a few prickly obstacles have greatly shadowed its prospects. The stagnation of the U.S. solar sector last year, along with the macro slowdown and reduced price credits under California’s NEM 3.0, are major headwinds. The new law clips the wings of solar customers, offering a staggering 75% less compensation for surplus energy sold to the grid.

Furthermore, Enphase Energy’s second-quarter revenue guidance was indicative of these growing tribulations. Its projected sales fall in the $700 million and $750 million, falling shy of Wall Street’s highly optimistic $772.8 million estimate. This downbeat forecast reflects the firm’s weakening position in the U.S. market, and rising interest rates threaten to dampen investor enthusiasm further for ENPH stock.

Tellurian Energy (TELL)

Natural gas play Tellurian Energy (NYSEAMERICAN:TELL) is coming off an extraordinary year in 2022, with its fourth-quarter production reaching a whopping 225 million cubic feet daily. However, the company doesn’t anticipate a further upswing in production for 2023, painting a subdued picture this year.

In the meantime, Tellurian keeps chiseling away at the Driftwood project; but the narrative remains as murky as ever. The challenging macro outlook pushes the company’s capital requirements for Driftwood’s construction upward. This is happening amidst a precarious financial position, with the firm ending the first quarter with just $150 million in cash and equivalents. Alarming forecasts suggest the firm could run dry within a year, further compounded by the potential shareholder dilution as convertible note holders are ready to cash in on $165 million of convertibles. With it burning through roughly $75 million of free cash flow in the first quarter, it’s no wonder why its investors are in a spot of bother.

NOV Inc. (NOV)

Prominent oil and gas player, NOV Inc. (NYSE:NOV) is facing an uphill battle as the U.S. oil and gas rig count drops. Reports suggest that the first quarter saw a drop of 24 rigs, the first quarterly decrease in over three years. The decrease in drilling activity and potential production will naturally lead to lower demand for equipment and services the company provides.

The recent banking crisis further complicates the situation for companies in the energy sector. Given the boom in oil prices this year, most companies have seen their sales and earnings surge. In contrast, the firm hasn’t turned a quarterly profit in nearly three years, leaving it incredibly vulnerable to more downside ahead if energy markets weaken further.

Peabody Energy (BTU)

Peabody Energy (NYSE:BTU) one of the world’s leading coal companies, is facing an inevitable twilight. Sure, 2022 was a comeback year for coal. Disruptions to the oil and natural gas markets sparked by Ukraine’s invasion fueled a surge in global prices. Consequently, BTU stock surged from $10 to $32.

However, coal is the dirtiest fossil fuel, and with the global emphasis on cleaner energy sources, Peabody is far from being an ideal energy stock. Moreover, as 2023 sets in, the coal sector is bracing for tougher times with natural gas prices tumbling. Thus, for Peabody and its counterparts, the future looks like a steep downhill slope. However, at this point, its business remains in relatively strong shape, with attractive numbers across both lines. Over the long run, though, it’s tough to get excited about the stock.

Chesapeake Energy (CHK)

A splendid ride on the energy price wave saw Chesapeake Energy (NASDAQ:CHK) registering a rock-solid performance last year. The firm mainly deals in natural gas, as it effectively cashed in on surging prices, more than doubling its sales to a whopping $11.74 billion. However, in all likelihood, expect its results to fall dramatically back to pre-pandemic levels. Hence, CHK stock sends a clear warning signal to prospective investors.

Despite the clean slate, critics argue whether its previous missteps overshadow its future. Moreover, the firm’s tale is laced with past tribulations, notably its 2020 bankruptcy filing and subsequent emergence as a new public equity in 2021. Coupled with the U.S. government’s commitment to net zero by 2050, the firm faces a proverbial ticking clock. Hence, CHK stock appears less like an investment opportunity and more like a gamble against time and tides of change at this time.

ConocoPhillips (COP)

ConocoPhillips (NYSE:COP) has been struggling lately due to uncertainties surrounding its Willow Project in Alaska’s North Slope. The project faced a critical environmental review, resulting in the Biden Administration rejecting two out of five proposed drilling sites, shrinking its overall footprint by 40%. Speculation before the decision had also cast doubts on the project’s economic viability under a reduced scope.

On top of that, its business is struggling immensely, with forward revenue growth estimates to just 9.7%, from its 5-year average of 31%. It finds itself in an unconducive energy market, likely to result in an incredibly weak market. Moreover, profitability metrics are firmly in the red, yielding just 1.3%, with a 5-year growth rate of 0%. Hence, avoiding the stock is best, as it trades over 10.3 times its forward cash flows.

On the date of publication, Muslim Farooque 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

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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3 Warren Buffett Stocks to Buy (and Never Sell)

Many investors are looking for predictable and safe retirement stocks to buy. They want something sturdy, dependable and that (preferably) pays some sort of dividend. More than that, they want a business that they know and understand, and one that they are confident will have longevity.

Those are the best stocks to own for a peaceful retirement.

Of course, this completely varies by the investor, especially these days. Some investors simply want to collect a reliable dividend while the stock enjoys a somewhat steady march higher. Others are comfortable with a bit more risk, and are willing to forego a larger dividend payment in lieu of better stock performance.

The man behind Berkshire Hathaway (NYSE:BRK-B) has made a career out of picking excellent businesses. Some of these Warren Buffett stocks have produced enormous gains over the years and have become staples in many portfolios.

Let’s look at a few of the best retirement stocks for stability, regardless of whether investors are going for growth or income.

AAPL	Apple	$179.85
V	Visa	$224.79
KO	Coca-Cola	$59.97
JNJ	Johnson & Johnson	$154.75

Apple (AAPL)

Source: sylv1rob1 / Shutterstock.com

By far, Warren Buffett’s largest single-stock holding in Berkshire’s public portfolio is Apple (NASDAQ:AAPL). Given that the company commands a $2.8 trillion market capitalization and is the largest company in the world, it’s no wonder that Buffett has made Apple his largest stock holding.

It makes up almost 50% of the firm’s portfolio of public stocks, although it’s worth noting that Berkshire holds many private companies in its holdings. At Berkshire’s recent annual meeting, Buffett said, “Apple is different than the other businesses we own. It just happens to be a better business.”

Apple outperformed the Nasdaq on a peak-to-trough pullback basis, and while investors are clearly plowing into the name despite lackluster growth in 2023, it’s hard to criticize its 36.5% year-to-date rally. Further, shares are down just 3% from their all-time high.

Visa (V) or Coca-Cola (KO)

coca-cola bottles and cans. coke is a blue-chip stocks

Source: Fotazdymak / Shutterstock.com

I wanted to go with Visa (NYSE:V) as the number two pick, because I believe it offers a lot of long-term growth. And, as long as there is commerce, Visa will capitalize. That said, we’re looking for safe retirement stocks and for many investors, that means yield. Visa’s yield of only 0.8% isn’t going to get many retirees out of bed.

Coca-Cola (NYSE:KO) is the third or fourth largest holding in Buffett’s portfolio of public stocks, as it goes back and forth with American Express (NYSE:AXP), reiterating Buffett’s love for credit card companies.

Coca-Cola pays a dividend yield of roughly 3.1% and recently raised its dividend for the 61st consecutive year. By comparison, Visa yields less than 1% but has raised its payout in 14 consecutive years, with an average five-year growth rate of about 17%. Both companies are impressive on their own merits.

For Coca-Cola’s part, analysts expect mid-single-digit revenue growth this year and mid- to high-single-digit earnings growth in 2023 and 2024. Those figures slide to double-digit growth for Visa.

So the “safer” pick with the higher yield and more consistent income is Coca-Cola. The more volatile, but higher growth name that’s plenty consistent is Visa.

Johnson & Johnson (JNJ)

Source: Alexander Tolstykh / Shutterstock.com

I don’t know when things will turn around for Johnson & Johnson (NYSE:JNJ), and fully admit that the stock price could go lower from here. That said, investors who are looking for safe retirement stocks have one here with J&J.

The firm has been in business for more than 135 years and it has built quite a consistent base in that time. When it comes to income, consistency is also in the company’s job description.

That’s as Johnson & Johnson recently raised its dividend for the 61st consecutive year. It currently yields 3.1% and trades at less than 15-times this year’s earnings estimates. Further, analysts expect mid-single-digit earnings and revenue growth.

Lastly, the company recently spun off Kenvue (NYSE:KVUE) in an effort to create value for shareholders. J&J still holds a large stake in the firm (and will look to pare it down), but for now, Kenvue is still trading above its initial offering price.

On the date of publication, Bret Kenwell held a long position in JNJ. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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