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3 Utility Stocks Short Sellers Are Pulling the Plug On: Is a Power Outage Looming?

One of the best ideas for surviving market ambiguity is to focus on utility stocks. Since the enterprises underlying this category benefit from a natural monopoly, they effectively command permanent relevance. Still, even this ecosystem can become a short-seller target.

Ordinarily, you wouldn’t look for short trades in the regulated power and resource space. Nevertheless, not all regions enjoy the same level of economic viability or resilience. Further, certain regions may suffer from unique headwinds that don’t impact other markets.

It’s a complicated narrative. However, with analysts dumping these utility stocks combined with their status as short-seller targets, these are the ideas you may want to avoid.

Avista (AVA)

Based in Spokane, Washington, Avista (NYSE:AVA) operates as an electric and natural gas utility company. It provides electric distribution and transmission along with natural gas distribution services in parts of eastern Washington and northern Idaho. On paper, it sounds relevant. However, it happens to be one of the utility stocks that are short-seller targets.

Conspicuously, analysts rate shares a consensus moderate sell. The assessment breaks down as one Hold and one Sell. Further, the average price target sits at $33, implying more than 3% downside risk. Yes, the company overall enjoyed a strong performance in fiscal 2023. Its average positive earnings surprise came out to 7.8%.

However, experts are looking for revenue to slip 3.9% to $1.68 billion. Further, fiscal 2025’s projected revenue of $1.78 billion is only marginally better than last year’s haul of $1.75 billion.

Data from Fintel indicates that AVA features a short interest of float of nearly 4% with a short ratio of 7.02 days to cover. Combined with the aforementioned Sell rating, AVA might be one of the utility stocks to avoid.

MGE Energy (MGEE)

Headquartered in Madison, Wisconsin, MGE Energy (NASDAQ:MGEE) operates as a public utility holding company mainly in the U.S. Per its corporate profile, MGE generates, purchases and distributes electricity and natural gas in Wisconsin and Iowa. It also owns and leases electric generating capacity and plans, constructs, operates, maintains and expands transmission facilities to provide transmission power services.

On the surface, it’s like most other relevant utility stocks: MGE gets the job done for its customers, which number around 163,000. However, Morgan Stanley’s (NYSE:MS) David Arcaro isn’t keen on the idea, pegging MGEE a Sell. In addition, the expert has assigned a $64 price target on shares, implying more than 15% downside risk.

Part of the disillusionment could stem from the erratic earnings performance last year. Back then, the average quarterly surprise came out to 3.08% below consensus expectations.

Adding to the pressure, MGEE represents one of the short-seller targets. Currently, its short interest comes in at 5.78% of the float. As well, the short ratio stands at 14.94 days to cover. Risk-averse investors may want to consider something else.

Hawaiian Electric (HE)

The island state of Hawaii is often considered a top destination spot for vacationing. However, its utility stocks don’t necessarily get the same love. Just look at Hawaiian Electric (NYSE:HE). With its subsidiaries, the company engages in the electric utility business. It provides production, purchase, transmission, distribution and sales of electricity on the islands of Oahu, Hawaii, Maui, Lanai and Molokai.

However, Hawaii depends greatly on tourism. With consumer discretionary sentiment under pressure from inflation and other headwinds, this narrative faces some questions. Sadly, the wildfires in the state devastated tourism, leading to a catastrophic loss of equity value in HE stock. Year-to-date, it’s down 24%. Over the past 52 weeks, it slipped more than 72%.

Now, there is an argument that Hawaiian Electric could make a comeback. That’s up to you. The fact of the matter is that analysts rate shares a Moderate Sell with an average price target of $9.75. That implies almost 10% downside risk.

Further, HE suffers from a short interest of 14.64% and a short ratio of 8.03 days to cover. Again, it’s your call if you want to speculate. However, it is an extremely risky idea.

On the date of publication, Josh Enomoto 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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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Western boot sales on the rise since ‘Cowboy Carter’

Beyoncé leaves the Luar fashion show at 154 Scott in Brooklyn during New York Fashion Week on Feb. 13, 2024.

James Devaney | GC Images | Getty Images

Western boots have a new protector in Beyoncé.

The country fashion staple’s sales surged more than 20% in the week after the music superstar released her “Cowboy Carter” album, according to consumer behavior firm Circana. That can spell good news for companies making the iconic shoe, as well as other items that fit the same Wild West aesthetic.

“Cowboy Carter,” which came out late last month, marked the “Halo” singer’s foray into the country genre. Even before the full album dropped, Circana reported notable boosts to unit sales for this style of boot following the release of singles “Texas Hold ‘Em” and “16 Carriages.”

The 32-time Grammy winner’s latest project adds to a groundswell of cultural support for stagecoach-inspired styles. Louis Vuitton unveiled an American Western line during Paris Fashion Week earlier this year, featuring models in everything from cowboy hats to bolo ties. This look has also caught a bid through the ongoing Eras Tour, as some attendees opt to channel Taylor Swift’s pre-pop days as a country singer.

Retailers and industry followers have already taken note of the trend.

Beyoncé’s chart-topping album can provide a same-store sales boost and help lasso in women shoppers at Boot Barn, said Williams Trading analyst Sam Poser. He upgraded his rating on the California-based retailer to buy on Thursday and raised his price target by $33 to $113, which now implies an upside of about 12%.

Boot Barn, Year to Date

Adding to the momentum is the beginning of busy seasons for rodeos and music festivals, Poser said. With these positive trends, he said guidance for the current quarter and full fiscal year should exceed Wall Street consensus estimates.

“We have little doubt that there is a correlation” between the increased attention on Western clothing and the release of Beyoncé’s eighth studio album, Poser said.

Boot Barn shares have climbed more than 4% since the start of April, defying the broader market’s pullback. That adds to the stock’s rally over the course of 2024, with shares jumping about 30% compared with the start of the year.

‘Really trending’

Though cowboy boots may typify the Western look, other pieces can also ride the wave.

Levi Strauss CEO Michelle Gass told analysts earlier this month that the denim maker works to ensure the “brand remains in the center of culture.” That mission was aided by “Levii’s Jeans,” a song on the “Cowboy Carter” album featuring Post Malone.

Justin Sullivan | Getty Images

“I don’t think there’s any better evidence or proof point than having someone like Beyoncé, who is a culture shaper, to actually name a song after us,” Gass said on the company’s earnings call last week.

Gass said denim is “having a moment” and the Western style is “really trending,” including in fashion and music.

But denim suppliers have not been able to sidestep the recent market slide. Levi Strauss shares have dropped more than 3% in April. Kontoor Brands, whose styles under the Wrangler brand include a “cowboy cut” jean, has tumbled around 11% in the month.

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3 High-Potential Penny Stocks to Turn $100,000 Into $1 Million: April 2024

These emerging companies can growth significantly in the next five years in terms of revenue and cash flows

Penny stocks can be massive wealth creators. High-potential penny stocks that deliver 10x or 20x returns can have a huge impact on the overall portfolio. However, in an ocean of penny stock ideas, only dozens will deliver. The others will fizzle out and will be forgotten. There are ideas from the euphoria of 2021 that skyrocketed and subsequently crashed.

My focus in this column is on penny stock ideas that are worth holding until 2030. In my view, these high-potential penny stocks can deliver at least 10x returns by the end of the decade. Of course, with penny stocks, it’s difficult to judge the upside potential.

The key however is to identify penny stocks that represent companies with a strong fundamental and a quality business. Further, if industry tailwinds exist, the growth story can be exciting. Also, it’s important to continue holding with patience. Penny stocks are high-beta and 20% to 30% corrections are natural in a larger uptrend.

Let’s discuss three penny stocks to buy and hold for multibagger returns.

IAMGOLD (IAG)

Gold was surging higher on the back of potential rate cuts in the second half of 2024. While inflation remains stubborn, gold has inched towards $2,400 an ounce. Recently, Saxo Bank opined that the precious metal is likely to touch $2,500 an ounce.

Among the high-potential penny stocks, IAMGOLD (NYSE:IAG) is worth grabbing at current levels around $3.80. The company has quality assets, strong fundamentals and the positive tailwind of gold upside. With higher realized prices, free cash flows are likely to increase and will support further growth.

From a financial perspective, IAMGOLD ended 2023 with a liquidity buffer of $754.1 million. The company has a strong pipeline of projects that includes Gosselin, Nelligan and Chibougamau district. With the possibility of robust cash flows, there is ample flexibility for aggressive investment in exploration and development.

Further, the Côté Gold asset has been commercialized with initial production in March. The mine life of the asset extends until 2041. For the current year, IAMGOLD expects production of 220,000 to 290,000 ounces of gold from Côté. The production bump-up will ensure healthy revenue and EBITDA growth. With all these positives, I expect IAG stock to remain in an uptrend.

Curaleaf Holdings (CURLF)

The U.S. Food and Drug Administration recently opined that there is “no reason” for the Drug Enforcement Administration to delay moving cannabis from Schedule I to Schedule III. The rescheduling seems very likely in the coming months and will be a major catalyst for cannabis companies with strong U.S. presence.

With Presidential elections round the corner, there is a strong case for potential federal level legalization of cannabis next year. Amidst these positives and with regulatory headwinds waning in Europe, I am bullish on cannabis stocks. Curaleaf Holdings (OTCMKTS:CURLF) stock trades just below $5 and is among the high-potential bets for multibagger returns.

The first positive is that Curaleaf is present in 17 states in the U.S. Further, the company has been aggressively expanding presence in the European markets with focus on the medicinal cannabis business. The addressable market is therefore significant for pursuing accelerated growth.

It’s worth noting that Curaleaf has indicated that 2024 is likely to be a “catalyst year” for the company. It’s therefore likely that growth will accelerate after being subdued last year. At the same time, Curaleaf has been delivering robust EBITDA margin and improved cash flows.

Joby Aviation (JOBY)

The flying car market is at a nascent stage with multiple companies preparing to commence commercial operations in 2025. The market potential is however huge with estimates pointing to a market size of $9 trillion by 2050. Of course, that’s more than two decades away. However, the key point is that the industry will continue to grow at a steady pace. Further, early movers with a good management and focus on innovation will create massive wealth.

Joby Aviation (NYSE:JOBY) is among the flying car stocks with high-potential. JOBY stock has been largely subdued with an upside of 13% in the last 12 months. However, with steady business progress, I believe that the stock is poised for a big breakout rally.

In February, Joby announced the completion of third stage of certification from the Federal Aviation Authority. With two more stages of certification due, it’s likely that commercialization of eVTOL will happen in 2025.

In anticipation of this, the company has acquired facility in Ohio. The facility will support building 500 aircraft annually. The company’s first international market will be Dubai where an exclusive agreement has been signed to operate air taxis in the Emirate for six years.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

On the date of publication, Faisal Humayun 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.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

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Why Intel Stock is Not the Best Chip Stock to Buy in 2024

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Intel stock (NASDAQ:INTC) is synonymous with the semiconductor industry. Their chips power everything, from laptops and desktops, to data centers and immersive gaming experiences.

Once the undisputed king of the semiconductor domain, the company is experiencing major setbacks that challenge its near term growth prospects. This includes the company’s large operating losses, use of debt, and declining margins. Right now, their valuation doesn’t make sense and investors will be better off picking other AI chip stocks in 2024.

Colossal Losses at Foundry Division

Intel’s recent foray into the foundry business has turned into a financial sinkhole. The company’s ambitions to compete with the likes of Taiwan Semiconductor (NASDAQ:TSMC) have been met with harsh realities.

In 2023, Intel stock reported that their foundry division posted a staggering $7 billion operating loss, signaling continued struggles. The reasons for these losses are due to a multitude of reasons. One being the company facing stiff competition from industry leaders with more advanced and streamlined chip-making processes.

Moreover, Intel has had to invest heavily in infrastructure and they’ve been using debt to do so. The company expects the business to turn around and report operating profit in and around 2030. This is bad news for investors who are betting on Intel’s turnaround as a pure play AI chip company in 2024.

Growing Competition in AI Chip Market

Artificial intelligence is rapidly transforming industries, and the demand for AI chips is growing rapidly. While Intel stock has historically dominated the PC Processor market, its player catch up in the AI chip arena.

FAANG stocks like Nvidia (NASDAQ:NVDA) have already seized the initiative in developing robust chips specifically tailored to AI workloads. Additionally, their attempts to enter the AI chip market has been met with mixed reviews from Wall Street.

Intel’s new Gaudi3 accelerator is said to be capable of training specific LLMs 50% faster than Nvidia’s flagship H100 processor. However, this is merely speculation and their chips trail Nvidia’s dominance, especially in the data center segment.

The rapid pace and acceleration of next-generation AI chips means that any initial advantage can be erased quickly. It also doesn’t help that the company is likely to continue losing money for the next several years to fund its growth.

Intel Stock: Questionable Valuation and Growing Debt Problem

Intel stock has a questionable valuation, especially when you consider the headwinds they will face in the next few years. Even after its recent stock decline, Intel’s shares command a relatively high price compared to its earnings and projected growth.

Investors are essentially paying a premium for the hope that their AI strategy will pay off. Furthermore, the company has a looming debt problem. Intel’s long term debt increased by 24.66% to $46.97 billion from the 2022 levels. The company is currently burning through a ton of cash, and there is no sign that it will slow down anytime soon.

On the date of publication, Terel Miles 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.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

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Dividend Stocks: These 3 Dividend Kings are Strong Buys

dividend stocks - Wall Street Favorites: 3 Dividend Stocks With Strong Buy Ratings for April 2024

Source: Dmitry Lobanov/Shutterstock.com

The dividend kings are a select group of dividend stocks made up of companies that have increased their dividends for at least 50 consecutive years. That may be a throw-away statistic. But consider everything that’s happened to the economy in the past 50 years.

Being able to continually issue a dividend speaks to the blue-chip nature of these companies. They deliver rock-solid revenue and earnings with a commitment to returning capital to shareholders.

Naysayers will say those dividend payments come at the expense of growth. And, it’s true that you won’t find an Nvidia (NASDAQ:NVDA) among this group of stocks. But that’s not to say you won’t get share price appreciation and possible market-beating growth.

In 2024, only 54 stocks have earned the distinction of being a dividend king. And the three dividend stocks we’ll explore have the added benefit of receiving one or more strong buy ratings from analysts.

Johnson & Johnson (JNJ)

Source: Raihana Asral / Shutterstock.com

Founded in 1886, Johnson & Johnson (NYSE:JNJ) stock has been a tough hold in the last year. The stock was down around 7.8% in that time. And 2024 isn’t getting off to a much better start with JNJ down 2.9%.

The pharmaceutical giant will be paying the settlement in its talc lawsuit for some time to come. And investors are now pricing the stock without its consumer products division that it spun off and now trades as Kenvue (NYSE:KVUE).

But things could change quickly, Johnson & Johnson plans to buy Shockwave Medical (NYSE:SWAV) for $13.1 billion. The deal still must be approved by Shockwave shareholders. But if it goes through, JNJ will have access to Shockwave’s first-to-market Intravascular Lithotripsy technology (ILT).

Another potential catalyst is that JNJ stock is cheap at just 11x trailing earnings and 14x forward earnings. The consensus price target of 19 analysts is $176.38, which marks a 15.9% upside. Plus, 7 out of 23 analysts give the stock a strong buy rating.

Gorman-Rupp (GRC)

A zoomed in photo of a drop of water hitting a container of water's surface.

Source: Sambulov Yevgeniy/ShutterStock.com

Gorman-Rupp (NYSE:GRC) is a picks and shovel play on the country’s need to bolster its infrastructure. GRC makes pumps and pumping systems primarily for water-related products.

The company has delivered higher year-over-year (YOY) revenue and earnings in each of the last four quarters. Also, it’s increasing its cash while decreasing its debt, which justifies the 64% gain in the GRC stock price.

At 24x forward earnings, some investors may feel that Gorman-Rupp is richly valued. To be fair, you’re largely on your own when it comes to assessing GRC stock. Gorman-Rupp is a small-cap company with a market cap of just over $1 billion. Only two analysts have issued a 12-month price target for the stock. Yet both give GRC an upside of about 10%. Plus, the one analyst that has issued a rating in the last three months gives the stock a strong buy rating.

Walmart (WMT)

Source: Jonathan Weiss / Shutterstock.com

Over the past five years, Walmart (NYSE:WMT) has proven that it’s not just one of the best dividend stocks investors can own, it’s one of the best stocks period.

If you’re looking for growth, WMT is up 81% in the past five years. And if it’s income you’re looking for, Walmart has a highly reliable dividend that has increased for 52 consecutive years.

In 2023, the retailer continued to be a go-to location for consumers looking to get some relief from inflation. Walmart hasn’t been immune to the effects of inflation and notes that its consumers are prioritizing staple items over discretionary goods.

That’s why the company did post YOY gains in revenue and earnings. Plus, the company is forecasting high single-digit earnings growth in the next 12 months.

Currently, the stock trades for 31x earnings, and some investors may be concerned about its valuation. That could be a reason the stock has pulled back about 0.45% in the last month. But, analysts are forecasting 9.5% share price growth, and 26 out of 39 analysts give WMT stock a strong buy rating.

On the date of publication, Chris Markoch 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.

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

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7 Penny Stocks That Could Deliver 1,000% Returns by 2029

These companies are poised to deliver strong growth, margin expansion, and cash flow upside in the next five years

There is no doubt that blue-chip stocks are steady value creators and act as a fortress for the portfolio. However, it’s growth and high-potential penny stocks that can make millionaires.

A general tendency is to look at penny stocks purely as a speculative bet. That’s understandable in specific cases where the rally is driven by factors like short-squeeze. However, a deeper look into the world of penny stocks will reveal names that are fundamentally strong.

Further, selected penny stocks represent business that have immense growth potential in the long term. Of course, there’s many a slip between the cup and the lip. Exposure to quality penny stocks should be limited to 15% of the portfolio considering the high-beta factor.

Having said that, when the target is 10x returns, even 15% allocation is likely to have a significant impact on total portfolio returns. Let’s therefore talk about seven high-potential penny stocks to buy for multibagger returns by 2029.

Cronos (CRON)

Cronos (NASDAQ:CRON) is a high-potential penny stock that can deliver 10x or 20x returns by 2029. The cannabis sector has ample headroom for growth and regulatory headwinds has been waning.

It’s worth noting that CRON stock has trended higher by almost 35% in the last six months. The rally has been backed by positive business developments. Further, the news of Germany legalizing cannabis has been a catalyst for the rally. Additionally, there is a strong case for reclassification of cannabis as a Schedule III drug in the United States. If this happens in the coming quarters, CRON stock is likely to go ballistic.

From a financial perspective, Cronos reported a strong cash buffer of $862 million as of 2023. This provides flexibility for aggressive growth investments. Cronos has also been pursuing geographic expansion. The Company has presence in Canada and Israel. In the recent past, Cronos has ventured into Australia and Germany in the medicinal cannabis market. As the addressable market expands, growth is likely to accelerate.

Solid Power (SLDP)

In the solid-state batter space, Solid Power (NASDAQ:SLDP) is an attractive pick. If the Company can commercialize solid-state batteries in the next few years, multibagger returns are on the cards. After a deep correction, SLDP stock seems to have bottomed out and has trended higher by 22% for year-to-date. I expect the uptrend to sustain backed by positive business progress.

The first positive is that Solid Power has the backing of automotive majors that include Ford (NYSE:F) and BMW (OTCMKTS:BMWYY). In December 2022, the Company licensed its cell design and technology to BMW for parallel research and development. Additionally, Solid Power has continued to deepen its partnership with SK On. This will enable the Company to make inroads in the Korean market.

From a business development perspective, Solid Power shipped A-1 cells to automotive partners in October 2023 for validation testing. This year, the Company has shifted focus to A-2 sample cells. With a strong cash buffer, I don’t see any financial concerns. Once automotive validation delivers positive outcome, SLDP stock is likely to surge.

Blink Charging (BLNK)

Without a proper EV charging infrastructure, it’s impossible for the industry to achieve the EV adoption target in the coming years. EV charging companies are therefore likely to benefit in the coming decade.

Among emerging players, Blink Charging (NASDAQ:BLNK) looks promising. In the last 12 months, BLNK stock has plunged by 65%. However, the correction is overdone and I expect a strong reversal.

For 2023, Blink reported revenue growth of 130% on a year-on-year basis to $140.6 million. For the current year, revenue is guided at $170 million. Therefore, there is growth deceleration. However, the good news is that expects full year gross margin of 33%. Further, the Company expects to achieve adjusted EBITDA break-even by the end of 2024.

With ample scope for growth in the United States and Europe, I expect renewed acceleration in top-line. Additionally, EBITDA margin expansion is likely to sustain in the coming years on the back of operating leverage and recurring services revenue.

Standard Lithium (SLI)

Lithium stocks have been depressed in the last few quarters and Standard Lithium (NYSE:SLI) is no exception. SLI stock has plunged by 65% in the last 12 months mirroring the deep correction in lithium.

However, purely based on the asset potential, I believe that it’s a good time to buy SLI stock. Once lithium reverses, the stock will surge from a deep valuation gap as indicated by the asset net present value.

Currently, Standard Lithium has a market valuation of $218 million. In comparison, the key asset of the company (South West Arkansas) has an after-tax net present value of $4.5 billion. Further, the Lanxess project has an after-tax NPV of $772 million.

Besides the upside in lithium, financing of construction for the South West Arkansas project is a potential game changer. The asset requires a development capex of $1.27 billion. Once financing is secured, SLI stock will skyrocket.

Aker Carbon Capture (AKCCF)

Aker Carbon Capture (OTCMKTS:AKCCF) has been under-the-radar as the stock trades in the OTC exchange. However, it’s among the high-potential penny stocks that can deliver 10x to 20x returns in the coming years.

As an overview, Aker Carbon is in the business of providing products, technology, and solutions in the field of carbon capture. With global focus on decarbonisation, Aker has positive industry tailwinds beyond the decade. Further, with a proven technology, the Company is well positioned for stellar growth. Aker Carbon has already delivered seven carbon capture units with the technology having 60,000 operating hours.

As of Q4 2023, Aker Carbon reported a strong order backlog of 2.6 billion Norwegian krone. It’s likely that the order backlog will swell significantly in the next few years.

Recently, the Company signed a memorandum of understanding with MAN Energy Solutions in the U.S. The country has a potential market of 200 tons of carbon capture by 2030. Of course, European markets will add to the backlog and Aker is targeting to capture 10 million tonnes CO2 per annum by 2025. This will translate into stellar growth and margin expansion.

Yatra Online (YTRA)

Yatra Online (NASDAQ:YTRA) stock is a micro-cap and hence carries significantly higher risk. However, YTRA stock is deeply undervalued and can surprise in the next few years. As an overview, Yatra is an online travel company in the business of air ticketing, hotels, holiday packages, and other travel related services. The Company’s business focus is in India, which is a market with big potential.

To put things into perspective, Indian travellers are set to be the fourth largest global spenders by 2030. In terms of value, the spending on travel and tourism is predicted at $410 billion by the end of the decade. Clearly, the opportunity is huge and the best part of growth is due for online travel companies.

Specific to Yatra, the corporate travel business is a differentiating factor among online players. Yatra has 800 corporate customers as clients with an addressable employee base of seven million. At the same time, the Company is increasing focus on the business-to-consumer segment. This is likely to ensure sustainable growth and continued margin expansion.

Archer Aviation (ACHR)

The flying car market is at a nascent growth stage. Early movers are likely to create immense value if the business is backed by innovation and a strong management. To put things into perspective, the flying car market is expected to be worth $9 trillion by 2050.

One company that looks promising is Archer Aviation (NYSE:ACHR). ACHR stock has been in a correction mode in the last six months and it’s a good opportunity to accumulate for multibagger returns.

Archer has made significant strides in terms of business progress. It’s likely that the Company’s eVTOL aircraft will be commercialized in the United States in 2025. During the same year, the Company is also targeting operations in Dubai. Further, Archer has plans to commence operations in India in 2026. In the next 24 months, I expect announcements related to entry into multiple other countries through local partnerships.

Another important point to note is that Archer expects to complete the construction of its manufacturing facility in 2024. This will support production of 650 aircraft annually. This positions Archer to service the existing order backlog of $3.5 billion. It’s also likely that the backlog will continue to swell in the coming years.

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De beste ETF's voor passief beleggen

3 Pharma Stocks to Sell in April Before They Crash & Burn

There are some pharma stocks to sell in April. Holding these companies is too risky, especially as the industry faces increasing regulatory scrutiny and pricing pressures. Several major pharmaceutical firms are grappling with patent cliffs, where key drug exclusivities are expiring. This opens the door for generic competition.

Moreover, with the broader market presenting attractive investment options, holding on to these riskier pharma plays could result in significant opportunity cost. Many promising growth stocks and defensive value plays offer better risk-adjusted return prospects than these pharma stocks to sell.

Here are three stocks that lack the required risk to return payoff to justify investors holding. There are many opportunities in the market that don’t have these risky investment profiles. One should examine their positions carefully and understand if it meets their expectations or objectives for the future.

ACADIA Pharmaceuticals (ACAD)

pharma stocks to sell Acadia Pharma (ACAD)

As Investorplace reported previously, ACADIA Pharmaceuticals (NASDAQ:ACAD) is focused on the development of medications for central nervous system disorders. Recently, ACADIA’s decision not to proceed with further trials for pimavanserin in schizophrenia after failing to meet its primary goal in a Phase 3 study caused the stock to drop significantly.

This contrasts sharply with its guidance. For 2024, ACADIA has made ambitious targets, projecting DAYBUE net product sales to be in the range of $370 to $420 million and NUPLAZID net product sales between $560 to $590 million.

However, despite being down 30.96% over the past five years, the worst has yet to come for ACAD, making it one of the top pharma stocks to sell.

The almost non-existent shares insiders hold is a troubling sign, with only 0.49% held and 99.57% owned by institutions. Furthermore, the market has taken a bearish position on ACAD, with around 10% of its total float being sold short.

I don’t think the price in ACAD’s share fully reflects how badly it missed its revenue target, which makes it risky.

Moderna (MRNA)

Moderna’s (NASDAQ:MRNA) revenue decreased to $6.8 billion in 2023 from $19.3 billion in 2022, primarily due to a decline in COVID-19 vaccine sales. This decline was also reflected in the company’s net income. It turned from a profit in 2022 to a net loss of $4.7 billion in the same year.

For 2024, MRNA has set a revenue target of approximately $4 billion from its respiratory franchise. However, I don’t believe that MRNA is a great long-term play for investors. The company’s valuation crated 30.99% over the past year alone. Even still it’s not a bargain when compared to its peers such as Pfizer (NYSE:PFE).

The company’s P/E ratio is negative. Its forward P/S ratio of 9.47 compared with its trailing 12-month measure of 5.99. It’s expected to become even more expensive as time goes on. MRNA also doesn’t pay a dividend, compared with PFE’s yield of 6.38% with a 2.48% dividend growth rate, and PFE’s long-term forecasts are also stronger.

MRNA then presents a significant opportunity cost for investors, and that’s why it’s one of those pharma stocks to sell.

Royalty Pharma (RPRX)

Royalty Pharma (NASDAQ:RPRX) invests in biopharmaceutical royalties. While it has shown some positive financial metrics,there are concerns about its debt levels and other problems relating to its competitive moat.

The company has a concerning financial profile, with $1.23 billion in cash but a much larger $6.14 billion in debt. This results in a net cash position of -$4.90 billion, or -$10.97 per share. To put that number into perspective, it paid 187.19 million in interest expenses last year, which detracted around 16% of its pre-tax income.

Another concern is that its outstanding shares have ballooned 37.66% year-over-year to 446.69 million, with only around 3.8% of those being held by insiders and the rest by institutions.

It seems that RPRX is content to continue diluting shareholders, effectively offloading company risk as opposed to taking on more debt.

RPRX is a solid company, but consider shares have diminished almost 40% through dilution alone makes it particularly risky. This doesn’t take into account its share has dropped 19.38% over the same period.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

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Q1 Earnings Preview: 3 Stocks to Buy Before Reports Drop

I love earnings season.

But, I am also someone who wants proof for everything. The earnings season is a chance for me to get the proof I need before I make a stock investment. And, it’s a great chance to load up on companies that beat market expectations and are ready to take on the challenges of another quarter. Whether you are a beginner or an expert, reading quarterly results to identify the stocks to buy before earnings can be tedious. But I am here to make the job easier for you.

I’ve identified three companies that are set to beat analyst expectations, and the results will take these stocks higher. If you’ve been waiting and watching for the market to slow down, wait no more. While trading at a premium, these stocks are set to keep rallying this month, and we may also see a dividend hike.

Let’s dig deeper into the stocks to buy before earnings.

Chevron (CVX)

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Oil and gas sector giant Chevron (NYSE:CVX) is Warren Buffet’s favorite stock that enjoys robust cash flow. With oil prices steadily rising and now trading at over $85 per barrel, Chevron preps to report impressive quarterly results. The company aims to increase production and free cash flow through the Hess (NYSE:HES) deal. This means higher dividends.

A dividend aristocrat, Chevron has steadily paid dividends for over two decades. Trading at $162, the stock is up 8% year-to-date (YTD) but lower than the highs it achieved at the end of 2022. So, the stock has potential to keep moving upward. It boasts a dividend yield of 4.02%. And, the strong cash flow will allow it to sustain the dividends for years to come.

Also, Chevron has managed to report solid earnings even when oil was trading in the range of $70. But this quarter has seen the oil sector soar which will impact the top and bottom line. Since its performance is dependent on oil and gas prices, it looks undervalued now.

In Q4 results, the company saw a revenue of $2.3 billion while increasing the quarterly dividend by 8%. It is diversifying in other areas and has invested in a solar-to-hydrogen project set to commence in 2026. The cash-heavy business will continue to enjoy steady returns and reward investors.

Chevron is set to report results on April 26. The stock is moving closer to $200 and is a hot buy now.

Microsoft (MSFT)

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Tech giant Microsoft (NASDAQ:MSFT) has been in the buy range for a long time now. However, the upcoming earnings could see the stock rally. Driven by its artificial intelligence (AI) prowess and growing revenue, Microsoft may report record numbers in upcoming earnings.

The safe and steady stock is exchanging hands for $426 today and is already up 14% YTD. It’s gone from $370 in Jan to $426 today and is up 47% in the year.

The company’s hefty investment in OpenAI is paying off, leading to increased interest in the AI space. Further, its cloud business is thriving, and it recently announced an investment of $2.9 billion in AI and cloud infrastructure in Japan.

Additionally, MSFT’s Co-Pilot has become an integral part of several organizations. In the second-quarter results, the company proved the cloud division’s monstrous growth.

Specifically, the cloud segment generated revenue of $25.88 billion, up 20% in the quarter. Microsoft reported a revenue of $62 billion and has guided revenue in the range of $60 and $61 billion in the third quarter. It managed to beat analyst expectations.

With a new AI hub in London, MSFT has an explosive future. Thus, buy the stock before the reports drop.

Netflix (NFLX)

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Blue-chip stock Netflix (NASDAQ:NFLX) is set to soar higher after the earnings report on April 18. Optimism is soaring about anticipated results. It has bounced back from the lows of 2022 , reporting impressive numbers in the last quarter.

Also, the company’s Q4 revenue hit $8.83 billion. Now, it’s expecting the Q1 revenue of $9.2 billion, which will be a significant year-over-year (YOY) jump. NFLX cracked down on password sharing and then started a cheaper subscription plan which has been favorable.

So, this led to subscriber increase and boosted the company’s revenue growth. Further, Netflix is adding premium content to prevent losing customers amid the streaming wars.

Finally, the stock has always traded at a premium and is exchanging hands for $618 and is up 31% YTD. NFLX started the year at $468 and has been moving higher over the past three months. It is already up 82% in the year. And, the stock could hit a new 52-week high after smashing the analyst expectations in the upcoming results.

JP Morgan has already raised the price target of the stock to $650 with an overweight rating. Several analysts raised the price target of NFLX. Make it a clear buy before the results print.

On the date of publication, Vandita Jadeja 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.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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