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3 Stocks to Avoid at All Costs After the Recent Earnings Disasters

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Finding stable companies in a market downturn is vital to an investment portfolio. With Federal Reserve rates climbing to their highest levels since 2007 and the recent banking crisis, safe and robust companies are critical.

These three companies have stocks to avoid based on their recent earnings misses and the overall economic outlook.

Bed Bath & Beyond (BBBY)

Bed Bath & Beyond (NASDAQ:BBBY), a home goods retailer, has seen significant volatility in recent years. The stock rose to over $35 per share in early 2021 due to a short squeeze causing stocks like GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) to skyrocket in share price. And now, two years later, Bed Bath & Beyond is below $1 per share and is one of the most heavily shorted stocks in the market. In addition, with the delayed quarterly report for the company, net loss grew by over 40%, and negative EPS compounded by over 50%.

The company is staving off bankruptcy by raising capital from selling its preferred stock and warrants. But, unfortunately, this action may prolong its inevitable bankruptcy. It also needs help to keep up with other retailers like Walmart (NYSE:WMT) and Target (NYSE:TGT) in selling similar products. And this will probably just get worse with Bed Bath continuing to close retail locations.

Kohl’s (KSS)

Kohl’s (NYSE:KSS) is an omnichannel retailer that, similar to other companies, has struggled to keep up with much larger retailers and online sales from companies like Amazon (NASDAQ:AMZN). In February, Kohl’s named a new CEO and COO. This could be a good or bad situation based upon the direction new management takes the company.

Kohl’s stock has dropped by over 65% in the last year alone, with a net loss in Q4 2022 of $273 million compared to Q4 2021, which was a net gain of $299 million.

Retailers have struggled with decreased consumer spending due to inflation and Fed rate hikes. The company is in an interesting spot with its stock price tumbling and a growing deficit in net income. It will be interesting to see if anything changes for Kohl’s with the new management taking over.

Intel (INTC)

Intel (NASDAQ:INTC), a chipmaker, has fallen by almost 35% in the last year. Following its most recent earnings release, the company reduced its dividend from $1.46 to 50 cents annually for capital allocation.

From its disappointing Q4 earnings release, the company’s net income in 2022 was $8 billion, half of what it was in 2021. Intel and other semiconductor and PC makers saw a significant boost in sales in 2020 and 2021 due to the global pandemic and many people staying indoors. But now, that boost in sales is fizzling out in 2022. Intel has competed for market share with its rival companies and tried to become profitable with less consumer interest in high-priced computer products.

On the date of publication, Noah Bolton 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.

Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with
topics such as the stock market and financial news.

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3 Top Dividend Stocks to Buy Now for an Income-Based Portfolio

The start of a bull market is a good time to look for dividend stocks to buy. Is this the start of a new one? It could be, but we still have plenty of issues to sort through. For that reason, among many others, investors are still going to be on the hunt for the best dividend stocks to buy. Specifically, they’ll constantly be looking for names to build an income-based portfolio with.

Whether they consider themselves growth investors, tech investors, value investors or income-oriented investors, dividends provide a great deal of information.

Companies that are able to not only pay but raise their annual dividend year in and year out tend to have rather sound businesses. That criteria isn’t the only factor that matters of course, but it shines a light on decades worth of consistency and execution.

Because these stocks consistently raise their payouts and the names below do run solid businesses, they can become cornerstones to one’s portfolio. In other words, building blocks for future growth and income.

Let’s look at a few dividend stocks to buy now.

Realty Income (O)

Source: Shutterstock

I really like the long-term story of Realty Income (NYSE:O). The one complaint is obvious: The stock price continues to teeter between “reverse” and “neutral.”

It has been unable to sustain any meaningful upside rally, and I don’t just mean over the last year. Realty Income feels like one of the rare stocks that was unable to take out its pre-pandemic high. Despite a bull market that surged from the second quarter of 2020 until the very end of 2021, Realty Income failed to gain much upside traction.

That’s even as the share price was obliterated during the Covid-19 selloff.

Despite all the volatility, and the sluggish price appreciation, the company continues to dole out its dividend. Paid out monthly, Realty Income has now raised its dividend payout in 102 consecutive quarters. Forget annual raises. This company has raised its payout quarterly for more than 25 years.

Despite Covid, various selloffs, high rates, low rates and a financial crisis, the company has not skipped a beat. While it could be years before O stock takes out its all-time high, that simply gives investors time to accumulate the name and its 5% yield.

Federal Realty (FRT)

Commercial shopping center in a tropical climate

Source: mTaira / Shutterstock.com

Considered one of the most dependable, blue-chip REIT holdings, Federal Realty (NYSE:FRT) has built its legacy on dependability. The company has accumulated properties in some of the strongest markets with strong tenants.

In the words of Federal Realty, “We own, operate and develop award-winning retail environments and mixed-use neighborhoods in the nation’s most desirable markets.”

For years, the stock paid a small dividend yield, often paying out less than 3%. However, that’s not due to stinginess. Instead, it’s because the stock always traded with a rich premium. Now like Realty Income, this top-tier REIT stock has been under pressure.

In 2022, the company raised its dividend for the 55th straight year. That’s “the longest record of consecutive annual dividend increases in the REIT sector,” according to the company.

Now yielding 4.5%, shares do seem quite attractive at current prices. If commercial real estate and/or REITs in general come under pressure, FRT stock won’t be immune. However, for the long-term, Federal Realty and Realty Income are high-quality building blocks.

Johnson & Johnson (JNJ)

Source: Olga Kononok/Shutterstock

Last but certainly not least, we have Johnson & Johnson (NYSE:JNJ). Unlike the others on this list, JNJ stock doesn’t have as big of a dividend yield. Shares pay out a dividend yield of roughly 3% and even that yield is only a product of the stock’s prolonged correction.

Despite the positives, the share price declined in nine straight months, falling over 16% in that span. While not great for intermediate-term holders, it does give buyers a chance to establish a long position.

Over the years, JNJ has become a very dependable stock. While most stocks were rolling over to multi-month or multi-quarter lows in April 2022, Johnson & Johnson stock was hitting all-time highs.

Because of the company’s high-quality business, the stock has become a high-quality blue-chip holding. It’s also allowed the company to raise its dividend for 60 consecutive years. It’s in rare company being in the six-decade camp and in April, JNJ will look to go for 61 straight years.

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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The Next Big Short Squeeze.. | Top 5 Stocks to Buy (September 2021)

Trump to surrender Tuesday morning before court appearance: report

Former President Donald Trump plans to fly to New York’s LaGuardia Airport Monday night, then spend the night at Trump Tower and surrender Tuesday morning before a court appearance at 2:15 p.m. Eastern time, according to an NBC 4 NY report citing unnamed sources. Trump is expected to face an arraignment on Tuesday after a Manhattan grand jury voted Thursday to indict him.

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DWAC, BBBY, NKLA and more

An exterior view of a Bed Bath & Beyond store on February 7, 2023 in Clifton, New Jersey.

Kena Betancur | Corbis News | Getty Images

Check out the companies making headlines in midday trading.

Bed Bath & Beyond — Shares continued to slide in Friday’s session with a 28% tumble. On Thursday, the company once again warned that it may need to file for bankruptcy protection if its proposed $300 million stock offering fails. The retailer’s stock has lost nearly 40% of its share value this week.

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Pro Picks: Watch all of Thursday's big stock calls on CNBC

Digital World Acquisition — Shares of the SPAC linked to former President Donald Trump advanced 7.6%. On Thursday, a New York grand jury formally indicted Trump on charges related to “hush money” payments made before his 2016 campaign.

Nikola — Nikola shares sank 13.6% after the electric-truck maker announced plans for a $100 million secondary stock offering priced 20% below Thursday’s close.

Virgin Orbit — The satellite launch services provider dived 41.2% after announcing it will halt operations “for the foreseeable future” and eliminate about 90% of its workforce.

BlackBerry — BlackBerry popped 14% after the company posted a smaller per-share earnings and adjusted EBITDA loss than analysts polled by StreetAccount expected for the fourth quarter. The company’s revenue, however, missed analyst expectations.

Regional banks — Shares of closely followed regional bank stocks advanced, with the SPDR S&P Regional Banking ETF (KRE) up 1%. Metropolitan Bank led the index with a 33.6% jump. PacWest and Popular were also among top performers, adding more than 3% and 4%, respectively. Zions, on the other hand, was among the worst performers of the group with a 1.2% loss.

Ventas — The real-estate investing stock slid 1.5% after announcing it would take ownership of collateral supporting a nearly half-billion dollar loan.

Generac Holdings — The battery backup company dropped 3.5% following a downgrade to underperform from neutral by Bank of America. The firm said Generac’s fiscal year 2023 expectations could be out of reach.

Alphabet — The Google parent gained 2.8% after Piper Sandler reiterated its overweight rating on the stock. The firm said the company has undeniable market share but could see search revenues impacted by artificial intelligence.

Restaurant Brands — Shares of the parent company of Burger King rallied 2.9% after TD Cowen upgraded the stock to outperform from market perform. The Wall Street firm said it’s bullish on Restaurant Brands’ new chairman and CEO and the company’s potential to turn around the brand.

elf Beauty — The cosmetic company’s stock gained 4.4%, reaching a 52-week high. Shares jumped after Morgan Stanley said elf has nearly 20% upside. The analyst said the company has strong momentum on both near- and long-term growth and reiterated his overweight rating on the stock.

Mercadolibre — Shares rose 4.1% after Morgan Stanley named the Latin American e-commerce company a top pick. The firm said it sees multiple growth drivers ahead.

— CNBC’s Samantha Subin, Yun Li and Hakyung Kim contributed reporting

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Four more state AGs join lawsuit against JetBlue-Spirit merger

The attorneys general of California, Maryland, New Jersey and North Carolina on Friday joined an antitrust lawsuit to block JetBlue’s
JBLU,
+2.54%
proposed $3.8 billion purchase of Spirit Airlines
SAVE,
+0.35%.
The four attorneys general are joining a suit by the U.S. Department of Justice and the attorneys general of Massachusetts, New York and Washington, D.C., that was filed earlier this month. At that time, Attorney General Merrick B. Garland said the proposed merger would result in higher airfares and reduced competition. JetBlue Chief Executive Robin Hayes has said the merger would create a competitor to larger U.S. airlines.

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U.S. oil futures down 5 months in a row; natural-gas futures drop 50% for the quarter

Oil futures finished higher on Friday, but U.S. prices logged a fifth straight month of declines, as well as a loss for the quarter. “It’s been a difficult quarter for crude oil prices with expectations that a China reopening would serve to galvanize prices back to $100 a barrel proving to be wildly misplaced,” said Michael Hewson, chief market analyst at CMC Markets UK. Natural-gas futures, meanwhile, posted hefty losses for the quarter, with Matthew Sherwood, senior Europe and lead commodities analyst at The Economist Intelligence Unit, partly attributing the decline to a “weather-related slump” in U.S. demand. May West Texas Intermediate crude
CLK23,
+1.51%
rose $1.30, or nearly 1.8%, to settle at $75.67 a barrel on the New York Mercantile Exchange. Prices based on the front-month contract, lost 1.8% for the month and 5.7% for the first quarter, according to Dow Jones Market Data. May natural gas
NGK23,
+4.99%
added 11 cents, or 5.3%, to settle at $2.216 per million British thermal units, but fell over 50% for the quarter.

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The 3 Best Tech Stocks to Buy for Exposure to Artificial Intelligence

Artificial intelligence (AI) is at an inflection point, creating new possibilities for innovation and automation in numerous industries. With the ability to analyze massive amounts of data, recognize patterns and learn from experience, it has the potential to revolutionize the way we work and live. According to PwC, it could contribute $15.7 trillion to the global economy by 2030. As a result, there will be a massive tailwind for AI tech stocks that provide the necessary tools and infrastructure.

As broad AI adoption accelerates, businesses are using large language models (LLMs) and generative AI to transform their operations. In data analysis, machine learning algorithms can now identify patterns and trends faster than human analysts.

For instance, in healthcare, AI models are fast tracking the development of new treatments, providing quicker diagnosis and improving patient outcomes. Similarly, autonomous AI-powered robots and systems can perform complex tasks by learning from experience and making decisions based on real-time data. For this reason, AI will revolutionize transportation, logistics and manufacturing industries where autonomous systems can improve efficiency, reduce costs and increase safety.

Developing, training, managing and improving LLMs and machine learning algorithms requires high-performance chips and resources. Therefore, as AI adoption increases, AI tech stocks will be key beneficiaries.

Microsoft (MSFT)

While the Redmond-based technology behemoth is known for its traditional businesses, such as Windows and Office, it has made significant investments in AI in recent years.

Microsoft’s (NASDAQ:MSFT) AI research division, Microsoft Research, has made significant contributions to the field of AI. For instance, it developed the deep learning framework CNTK (Microsoft Cognitive Toolkit). Furthermore, the company is partnering with leading innovators in the field. The latest example is a collaboration with OpenAI to introduce a more powerful large language model to Bing search.

Currently, the company offers a range of AI-related products and services. An example is Cognitive Services APIs, featuring decision-making, speech, vision and language AI models, which allow developers to add AI capabilities to their applications. Recently, through Microsoft365 Copilot, it has also integrated AI capabilities into its Office productivity tools. By embedding the power of LLMs into Word, Excel, PowerPoint, Outlook and Teams, its users will improve their productivity.

In addition to its AI-related products, Microsoft will benefit from the growth of AI in the cloud computing industry. The company’s cloud computing platform, Microsoft Azure, provides the best AI supercomputing infrastructure to train models. Also, their Azure Machine Learning platform helps businesses build, optimize and scale high-quality models for their applications.

Finally, considering its breadth of investments in AI solutions, including Dragon Ambient eXperience for clinical note-taking, GitHub Copilot and Azure are set for growth in the coming years. Meanwhile, as the AI revolution plays out, Microsoft’s established business segments will continue to gush free cash flow. Moreover, as one of the only two AAA-rated companies, it is one of the safest stocks to invest in.

Alphabet (GOOG, GOOGL)

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), the parent company of Google, is a technology giant with a market capitalization of over $1.2 trillion. Although there are concerns due to the competitive threat from ChatGPT, Google’s AI research division, Google Brain, has been at the forefront of AI research for years. The company’s deep learning models, like LaMDA have made significant advancements in computer vision, speech recognition and natural language processing.

Google has made AI a core part of its products, including Google Assistant, Google Maps, YouTube and Google Photos. For instance, it uses AI in YouTube’s video recommendation engine and to maximize return on investment (ROI) for advertisers.

Beyond AI research and development, Alphabet is also well-positioned to benefit from the growth of the AI market. The company’s cloud computing platform, Google Cloud, is a major player in the cloud computing industry and offers a range of AI services, including pre-trained machine learning models that enable clients to customize their models.

As more companies adopt AI, demand for these services will likely grow, benefiting Alphabet’s bottom line. Meanwhile, the stock trades at a reasonable forward price-to-earnings (P/E) ratio of 19 and has $113 billion in cash on its balance sheet.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) is the perfect pick-and-shovel play to participate in the AI boom. It is the leading manufacturer of graphics processing units (GPUs), which are critical components in developing and training AI models.

Nvidia’s chips power the most energy-efficient supercomputers used for quantum computing, climate science research, material science and molecular dynamic simulations. Many of the world’s leading AI researchers and companies, including Microsoft, Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN) and Google, use the company’s GPUs.

The company’s GPUs are particularly well-suited for deep learning, a type of AI that involves training neural networks on large datasets. LLMs train on thousands of GPUs. As demand for powerful AI services grows, this only means higher demand for its chips. As LLMs continue to process more data, they will need more computing resources. Besides having the best AI chips, Nvidia is also scaling its AI ecosystem CUDA, a range of software tools for deep learning that developers use to build and train AI models.

Its AI-related revenue has been growing rapidly, with the company’s data center segment (which includes AI-related products) growing by 11% year-over-year in the most recent quarter. The company is set to grow revenues in the coming years as AI chip demand increases and cloud service providers continue to sign multi-year agreements for the new Nvidia AI cloud service offerings.

On the date of publication, Charles Munyi 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.

Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.

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New legislation could delay Biden administration’s $42.5 billion broadband program by several months

President Joe Biden’s $42.5 billion program to expand broadband faces a detour: Federal lawmakers want a bill that ensures that rural states are fully represented. Senators from both parties on Friday announced legislation that would require the Biden administration to perform an additional review before deciding how much funding each state will receive under the program. The bill would likely delay the final decision about state funding allocations by seven months, according to a Wall Street Journal report.

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Gold futures settle higher for the month and quarter

Gold futures declined on Friday, failing to finish above the key $2,000-an-ounce level but ending higher for the month as well as the first quarter. Gold prices have been boosted this month by concerns about the banking sector, but the fallout from Silicon Valley Bank and Credit Suisse have “broadly been contained, making equities more attractive to investors after they rushed to the safety of gold earlier in the month,” said Sanjeeban Sarkar, commodities editor at The Economist Intelligence Unit. “We expect pressures to ease in the short term, but also forecast that there will be a high floor under prices, as concerns about the broader economy linger,” he said. Gold for June delivery
GCM23,
-0.54%
fell $11.50, or 0.6%, to settle at $1,986.20 an ounce on Comex. Prices based on the most-active contracts finished 8.1% higher for the month and gained 8.8% for the quarter, according to Dow Jones Market Data.

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