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Yikes! Don’t Get Trapped as Super Micro Computer Stock Rolls Over.

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Some traders are buying Super Micro Computer (NASDAQ:SMCI) stock because the company sells artificial intelligence enabled servers. They’re looking for the “next” Nvidia (NASDAQ:NVDA). It’s a dangerous quest, though, and this is the worst possible time to invest Super Micro Computer stock.

Truly, this is a recipe for disaster. As we’ll discover, the sentiment and expectations surrounding SMCI are sky high. Chasers get punished eventually, and with Super Micro Computer, I believe the reckoning will be sooner rather than later.

The Dizzying Ascent of SMCI Stock

Why did SMCI stock zoom from $100 to around $1,200 during the past year? And, just as importantly, why is the stock apparently starting to roll over?

The most obvious answer is that, as I alluded to earlier, AI-hardware hype is in full effect and everybody wants the “next” Nvidia stock. That’s not the only contributing factor, though.

Currently, Super Micro Computer is “double-dipping” as it’s a member of both the S&P 500 and the Russell 2000. Thus, when funds and individual investors buy these indexes, they’re indirectly propping up SMCI stock.

One might whether Super Micro Computer can continue to be a member of a large-cap index and a small-cap index for much longer. Investors may also ask if Super Micro Computer’s GAAP trailing 12-month price-to-earnings (P/E) ratio of 73.93x is sustainable.

A Bad Sign for Super Micro Computer

Now, after the wild share-price ascent, Super Micro Computer has to live up to high expectations. For example, JPMorgan analysts set a $1,150 price target on Super Micro Computer stock, while Northland analyst Nehal Chokshi envisions the stock rallying to $1,300.

Moreover, Super Micro Computer lifted its fiscal 2024 revenue guidance from a range of $10 billion to $11 billion, to a range of $14.3 billion to $14.7 billion. That’s a big revenue-guidance hike, and it appears that the market has already priced its lofty expectations into the shares.

Yet, there’s a development that prospective investors can’t afford to ignore. Specifically, Super Micro Computer announced its plan to sell 2 million shares of the company at $875 apiece.

The news release for that announcement is dated March 19. On that day, Super Micro Computer stock traded at around $900; just a few days earlier, it traded at nearly $1,200. Thus, the company was evidently prepared to sell its shares at a discount.

It’s not a positive sign that Super Micro Computer is willing to sell millions of shares to the public to raise capital. This raises some questions.

How desperate is Super Micro Computer for capital? And, will the company resort to share-value-dilutive capital-raising measures in the future?

Super Micro Computer Stock Isn’t a Confident Investment

Super Micro Computer benefited from AI-hardware hype, “next” Nvidia fantasies and “double-dipping” in two major stock indexes. Now, with Super Micro Computer at a very high valuation, SMCI stock looks like it’s rolling over.

On top of all that, investors should be concerned about Super Micro Computer’s large-scale share sale.

In the final analysis, the risk-to-reward balance is unfavorable for Super Micro Computer stock. This is a great time to take profits on the stock, or if you’re not invested, just avoid it altogether.

On the date of publication, David Moadel 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.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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If You Can Only Buy One Meme Stock in April, It Better Be One of These 3 Names

For risk-tolerant investors, now might be a good time to consider these meme stocks to buy. The broader indices, such as the S&P 500 and Nasdaq Composite, have seen a steady rise in recent months. The upward trend in the major indices can be a compelling reason for investors to explore potential opportunities in the meme stock space.

The rise in the broader market indices suggests that investor sentiment is improving, which could positively impact meme stock performance. Meme stocks, often associated with high volatility and speculative trading, tend to be more sensitive to changes in investor sentiment and market momentum.

The appetite for risk is back and in full swing again, and I don’t expect it to subside anytime soon. So, to take advantage of this, here are three meme stocks to buy in April that are best positioned to capitalize on it.

Coinbase Global (COIN)

Coinbase Global (NASDAQ:COIN) stands out in the finance sector, especially with the increasing interest in cryptocurrencies such as Bitcoin (BTC-USD). With COIN being heavily tethered to the health of the Bitcoin ecosystem, it follows that it, too, could go on an enormous rally, evidenced by its 295% climb over the last year.

Furthermore, the company anticipates favorable macroeconomic conditions for risk assets, supported by a continuation of disinflation trends. That is part of a broader phase transition for the asset class, moving away from the “crypto winter” of previous years.

COIN’s performance in 2023 was notable, with shares rising by approximately 40% since the beginning of the year, significantly outperforming the S&P 500’s gain of 10%. The growth was bolstered by the company’s Q1 earnings and revenues, which exceeded estimates.

I expect the best is yet to come for COIN, making it one of those meme stocks to buy, but it will be a choppy road ahead.

Uber Technologies (UBER)

Uber Technologies (NYSE:UBER) has seen its share of ups and downs but remains a key player in the gig economy.

In 2023, UBER experienced significant growth across its platforms, including a 24% year-over-year (YoY) increase in trips, reaching 2.6 billion. UBER also expanded its membership program, Uber One, to 25 countries and launched its advertising efforts across several new markets, achieving a 75% YoY increase in active advertising merchants.

For 2024, UBER has set ambitious targets. The company forecasts $5 billion in adjusted earnings and projects gross bookings to reach between $165 billion and $175 billion. It aims to be cash flow positive by the end of the year and anticipates its advertising business to generate $1 billion in gross bookings.

These factors and more make UBER one of those meme stocks to buy, as UBER’s financial performance in the fourth quarter of 2023 outstripped expectations, with adjusted EBITDA jumping 93% to $1,283 million.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) has garnered attention for its innovations in the semiconductor industry.

For 2023, AMD reported a diverse performance across its segments. Data Center revenue saw a substantial increase, primarily driven by sales of AMD Instinct GPUs and 4th Gen AMD EPYC CPUs, marking a YoY growth of 38% in the fourth quarter.

Looking ahead to the first quarter of 2024, AMD expects revenues of around $5.4 billion, with Data Center GPU revenues forecasted to grow significantly, reaching beyond $3.5 billion for the year. The company also anticipates a gross margin of approximately 52%.

What I like the most about AMD, though, is its valuation is far cheaper than its competitors in the semiconductor industry, trading at just 12 times sales. It could be an undervalued bargain if one wants to scoop up shares of a strong semiconductor company.

On the date of publication, Matthew Farley did not hold (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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Nasdaq Nightmares: 3 Stocks to Sell Before Reality Sets In

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The latest employment figures saw indices rise. However, losses earlier in the week persist as investors remain cautious of the Fed’s stance on interest rate adjustments. Amid this climate, it’s essential to highlight a few potential Nasdaq stocks to sell. They could represent a shift from the buoyant sentiment a month ago when the Nasdaq and broader markets reached successive record highs. While returns have been strong year-to-date (YTD), some analysts argue that exuberance may be fading as the Nasdaq posted near double-digit gains in Q1.

Expecting higher valuations to face corrections and better align with company fundamentals is reasonable. For context, the Nasdaq’s price-to-earnings multiple of 33.4 is at its highest since the dot-com bubble. This doesn’t imply there will be a definite turn, but it raises the prospects for certain Nasdaq stocks to sell as they have become overvalued.

Should the Fed refrain from or delay expected rate cuts in June, higher borrowing costs could impact firms with high debt. Such companies could become the prime Nasdaq stocks to sell before potential price reversals. Even without a major market downturn, price declines could still occur, with investors on the lookout for Nasdaq stocks to sell.

The three Nasdaq-listed companies that appear ripe for reassessment before reality sets in are:

DoorDash (DASH)

DoorDash (NASDAQ:DASH) is one of the Nasdaq stocks to sell as the delivery business faces intense competition. Despite surging demand during the pandemic and soaring delivery costs, the company has consistently failed to achieve profitability. DoorDash symbolizes this trend, as its revenues steadily increase year-over-year (YOY) while profits remain red.

Investors betting on such companies are looking to achieve profitability in the future. However, with high inflation, increasing interest rates, and DoorDash’s ongoing struggles to get margins under control, it’s worth considering as one of the Nasdaq stocks to sell. The company will report earnings in early May. Failing to assure hopes of near-term profitability could negatively impact its stock price. This could mark it as a main Nasdaq stock to sell.

DexCom (DXCM)

DexCom (NASDAQ:DXCM) is yet another one of the potential Nasdaq stocks to sell. DexCom, which provides glucose meters, saw its stock tank when weight-loss drugs were released last year. This was expected to lower the demand for obesity-related monitoring devices. However, since last October’s market upturn, share prices have rebounded. They have surpassed last year’s levels despite DXCM providing no major changes to its outlook. Regardless of this resurgence, savvy investors looking for Nasdaq stocks to sell may want to focus on DexCom.

DXCM has surged 82% since last October, but the company anticipates only 16-21% organic revenue growth. Its P/E ratio has soared to 106x, which puts it at risk of returning to a valuation more in line with the healthcare sector average of 23x. For investors tracking Nasdaq stocks to sell, DexCom’s valuation could be an opportunity to reassess their positions before the stock realigns with the broader sector’s norms.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) is the final pick of the Nasdaq stocks to sell. The company has benefited from the growth in artificial intelligence. However, its performance has outpaced its results as its sales and earnings have not matched the stock price momentum. AMD was slow to offer its own AI chips, which explains its revenue decline. So, unless the company transforms its execution in the following quarterly report, investors may lose patience given its high P/E of 310x.

Given this inflated valuation, AMD’s stock could be one of the Nasdaq stocks to sell, as it is exposed to higher risks. Investors closely monitoring Nasdaq stocks to sell might consider AMD’s high valuation as a warning flag. This suggests the possibility of a realignment to a price level matching its performance.

On the date of publication, Stavros Tousios 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.

Stavros Tousios, MBA, is the founder and chief analyst at Markets Untold. With expertise in FX, macros, equity analysis, and investment advisory, Stavros delivers investors strategic guidance and valuable insights.

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If You Can Only Buy One Dividend Stock in April, It Better Be One of These 3 Names

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Looking ahead, the future of the US economy is shaped by ongoing debates over interest rate policy and inflation. Recent robust economic data has led investors to anticipate fewer interest rate cuts by the U.S. Federal Reserve in 2024. This has caused a reversal from earlier expectations of more aggressive cuts. This shift reflects a growing belief that the economy’s strength might warrant less monetary easing than previously thought. The Fed’s response to inflation and economic growth will remain as key factors influencing market sentiment and investment decisions in the coming months. With a bit of market uncertainty, it’s best you diversify into some dividend stocks so you can ensure some strong returns. These three are some of the best dividend stocks to buy.

Enbridge (ENB)

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Enbridge (NYSE:ENB) is an energy company that operates pipeline systems in Canada and the U.S. It offers oil and natural gas transport along with renewable energy.

Enbridge’s revenue declined by nearly 20% in 2023 compared to 2022, from $53.4 billion in 2022 to $42.8 billion in 2023. However, the company has massively increased its short-term investments by 559.87%, meaning it can quickly deploy its assets for future usage. This shows solid prospects for growth.

The renewable energy market in which Enbridge competes is expected to grow at a CAGR of 9.47%, reaching a valuation of $2450 billion by 2032. Urbanization will cause global power consumption to rise, thus leading to the increased demand for renewable energy.

Enbridge’s diversified portfolio of energy assets provides many opportunities for the company to expand into other markets. The firm has not restricted itself to only gas or renewable energy and instead has a mix of both types of resources. An example is its acquisition of U.S. gas utilities in 2023 and its recent acquisition of the East Ohio gas company.

Overall, Enbridge is one of the dividend stocks to buy for investors interested in energy.

T-Mobile (TMUS)

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T-Mobile (NASDAQ:TMUS) is a leading telecommunication service provider. The company also facilitates the sale of wireless devices, including smartphones, wearables, tablets, etc.

Profits have been rising consistently, with a record-breaking $8.32 billion in 2023. It has a profit margin of 10.59% and an operating margin of 21.01%. Those figures are particularly impressive given that Verizon (NYSE:VZ), its competitor, currently has a profit margin of -7.7%.

The global telecommunications sector is projected to grow at a CAGR of 6.2% from 2023 to 2030, reaching $2.8 trillion by 2030. Rising profits also encourage corporations to roll out dividends. T-Mobile started dividends at the end of Q4 2023, with an annual dividend yield of 1.62%. However, this figure is stated to rise at 10% annually.

High dividend growth is a great indicator for investors, spurring confidence in the company. Growing margins will only increase the dividend yield, contributing to this stock’s being a great buy for dividend-centric investors.

Johnson & Johnson (JNJ)

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Johnson & Johnson (NYSE:JNJ) is a multinational pharmaceutical company that develops innovative medicine and medical technology. Valued at $151.59, JNJ has grown 11.35% in the past five years.

Johnson & Johnson dominates the pharmaceutical sector, with the largest market share being 49.1% of the Acne Treatment Industry. Thanks to this fact, it is one of the medical industry’s leaders, holds a mega market cap value of $373.52 billion as of 2024.

Johnson & Johnson reports strong figures across the board in fiscal year 2023. The company received revenues of $85.16 billion with a YOY growth of 6.46%. More substantial figures include net income at $35.15 billion and diluted EPS of $13.72, growing at astronomical rates at 95.94% and 103.94%, respectively.

JNJ has also been a dividend aristocrat for the past 60 years. The revenues and profits of JNJ have been highly stable due to its competitive advantage of having more experience in the pharmaceutical industry. Therefore, Johnson & Johnson ranks among the best dividend stocks to buy due to its strong history and predictable future growth.

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

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.

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‘Supercore’ inflation measure shows Fed may have a real problem

US Federal Reserve Chair Jerome Powell attends a “Fed Listens” event in Washington, DC, on October 4, 2019.

Eric Baradat | AFP | Getty Images

A hotter-than-expected consumer price index reading rattled markets Wednesday, but markets are buzzing about an even more specific prices gauge contained within the data — the so-called supercore inflation reading.

Along with the overall inflation measure, economists also look at the core CPI, which excludes volatile food and energy prices, to find the true trend. The supercore gauge, which also excludes shelter and rent costs from its services reading, takes it even a step further. Fed officials say it is useful in the current climate as they see elevated housing inflation as a temporary problem and not as good a gauge of underlying prices.

Supercore accelerated to a 4.8% pace year over year in March, the highest in 11 months.

Tom Fitzpatrick, managing director of global market insights at R.J. O’Brien & Associates, said if you take the readings of the last three months and annualize them, you’re looking at a supercore inflation rate of more than 8%, far from the Federal Reserve’s 2% goal.

“As we sit here today, I think they’re probably pulling their hair out,” Fitzpatrick said.

An ongoing problem

CPI increased 3.5% year over year last month, above the Dow Jones estimate that called for 3.4%. The data pressured equities and sent Treasury yields higher on Wednesday, and pushed futures market traders to extend out expectations for the central bank’s first rate cut to September from June, according to the CME Group’s FedWatch tool.

“At the end of the day, they don’t really care as long as they get to 2%, but the reality is you’re not going to get to a sustained 2% if you don’t get a key cooling in services prices, [and] at this point we’re not seeing it,” said Stephen Stanley, chief economist at Santander U.S.

Wall Street has been keenly aware of the trend coming from supercore inflation from the beginning of the year. A move higher in the metric from January’s CPI print was enough to hinder the market’s “perception the Fed was winning the battle with inflation [and] this will remain an open question for months to come,” according to BMO Capital Markets head of U.S. rates strategy Ian Lyngen.

Another problem for the Fed, Fitzpatrick says, lies in the differing macroeconomic backdrop of demand-driven inflation and robust stimulus payments that equipped consumers to beef up discretionary spending in 2021 and 2022 while also stoking record inflation levels.

Today, he added, the picture is more complicated because some of the most stubborn components of services inflation are household necessities like car and housing insurance as well as property taxes.

“They are so scared by what happened in 2021 and 2022 that we’re not starting from the same point as we have on other occasions,” Fitzpatrick added. “The problem is, if you look at all of this [together] these are not discretionary spending items, [and] it puts them between a rock and a hard place.”

Sticky inflation problem

Further complicating the backdrop is a dwindling consumer savings rate and higher borrowing costs which make the central bank more likely to keep monetary policy restrictive “until something breaks,” Fitzpatrick said.

The Fed will have a hard time bringing down inflation with more rate hikes because the current drivers are stickier and not as sensitive to tighter monetary policy, he cautioned. Fitzpatrick said the recent upward moves in inflation are more closely analogous to tax increases.

While Stanley opines that the Fed is still far removed from hiking interest rates further, doing so will remain a possibility so long as inflation remains elevated above the 2% target.

“I think by and large inflation will come down and they’ll cut rates later than we thought,” Stanley said. “The question becomes are we looking at something that’s become entrenched here? At some point, I imagine the possibility of rate hikes comes back into focus.”

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3 Flying Car Stocks to Buy Before They Double This Year

These flying car stockss look attractive as they move toward commercialization in 2025 and geographic expansion

flying car stocks - 3 Flying Car Stocks to Buy Before They Double This Year

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Considering the progress on the business front, flying car stocks have been relatively subdued in the last two quarters. It’s a period of correction and consolidation before the big take-off.

The fact that the best flying car companies are on track for the commercialization of eVTOL in 2025 underscores this point. The next few quarters are therefore likely to be exciting in terms of certification completion and scaling-up of manufacturing operations.

Of course, from a long-term perspective, the early movers are likely to be massive value creators. By 2050, the market size is expected to swell to $9 trillion. For now, there is a good entry opportunity for at least 100% gains before the end of the year.

This column discusses three flying car stocks that are likely to be in the news for good reasons in the coming quarters. These ideas can make some quick money with the sector at an inflection point.

EHang Holdings (EH)

EHang Holdings (NASDAQ:EH) stock has already doubled in the last 12 months. With the commercialization of eVTOL aircraft, I expect EH stock trend to remain bullish. A sharper rally seems likely in the coming quarters as results reflect gradual scaling-up of operations.

In terms of positive news, EHang received production certificate from the Civil Aviation Administration of China for its EH216-S eVTOL aircraft. This clears the path for mass production and will contribute to revenue growth in the coming quarters. The company has a suggested retail price of $410,000 per eVTOL for international markets.

Besides plans for scaling up operations in China, EHang is also expanding internationally. In the UAE, Wings Logistics Hub will be purchasing 100 units of the EH216 series eVTOLs. In Europe and Asia, the company has conducted thousands of trial flights. The stage is therefore set for stellar growth in the next five years.

Joby Aviation (JOBY)

Joby Aviation (NASDAQ:JOBY) stock has been in a downtrend with a correction of 23% in the last six months. In my view, this is a golden opportunity to accumulate before JOBY stock skyrockets. While the stock has corrected, business developments remain positive, and that’s the reason for the bullish sentiment.

It’s worth noting that in 2020, Joby became the first eVTOL developer to receive military airworthiness approval. Recently, the company announced that it will deliver two aircraft to MacDill Air Force Base in 2025. This is a part of the company’s contract with the U.S. Air Force that’s worth $131 million. Having an early-mover advantage, Joby seems to be well positioned for bigger defense.

Joby also acquired a manufacturing operations facility in Ohio. The facility is likely to have the capability of building up to 500 eVTOL per year. Once the facility is commercialized, it will support scaling up of operations.

It’s worth noting that Joby has already completed three of the five stages of the certification process from the U.S. Federal Aviation Authority. Commercialization of operations in the U.S. is on track for 2025. Internationally, the UAE is likely to be the first market for commercialization.

Archer Aviation (ACHR)

Archer Aviation (NYSE:ACHR) has remained sideways to lower in the last six months. This is a good opportunity for accumulation, as the business is moving in the right direction.

First and foremost, Archer is well positioned for eVTOL commercialization in the United States in 2025. The for-credit testing with the Federal Aviation Administration is due and once that’s cleared, ACHR stock is likely to trend higher.

Further, Archer has been aggressively looking at partnerships for global expansion. With Falcon Aviation, company will jointly develop vertiport network in Dubai and Abu Dhabi for the launch of operations in 2025. This will be followed by an entry into India in 2026.

It’s also worth adding here that Archer has an order backlog of $3.5 billion. The backlog will continue to swell in the next 12 to 24 months. This will set the stage for stellar growth in the next five years.

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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Aggressively buying these Small Cap Stocks | HOW you should investing NOW? | Akshat Shrivastava

Is NIO Stock Headed for the Junkyard? The Risks Investors Can’t Ignore.

“Down but not out” may be a great way to describe Nio (NYSE:NIO) stock, down more than 50% on the year. Since the height of its popularity in 2021, shares have fallen by nearly 93%. Headwinds have affected the company’s performance, leading to poor results.

While Nio’s management may still be pursuing something it believes will help overcome persistent issues, we are not so optimistic. Even if the company isn’t at the end of the road, expect more declines ahead for shares.

Nio Stock: Tough Times Continue

Based on recent developments with Nio, it’s no surprise that shares have continued to experience sharp price declines. For instance, look at the EV maker’s most recent vehicle delivery numbers. During March, Nio delivered 11,866 vehicles.

This represented an increase compared to delivery numbers in preceding months, and a 14.3% increase on a year-over-year basis.

However, because of the poor delivery figures during January and February, total deliveries for Q1 2024 came in at 30,053 vehicles. Reported deliveries not only barely beat Nio’s walked-back guidance.

Total deliveries during the quarter were down 3% year-over-year, and down 10% on a sequential, or quarter-over-quarter, basis. That’s not all. Poor fiscal results have also continued to be an issue for NIO stock. Last month, the company released its latest quarterly and annual results.

Although vehicle margins, on a sequential basis, went up during the December quarter, so too did net losses, rising 36.8% to $756 million.

For the full-year, Nio’s top-line grew by only single-digits. Margins declined, and net losses came in at nearly $3 billion. Clearly, the key issues that have knocked NIO lower in the past three years have yet to go away.

Nio’s Still Going for Broke With its Battery Swap Gambit

Much of the problems hurting the performance of this company, and in turn, Nio stock, have been driven by factors largely out of management’s control.

China’s sluggish post-Covid recovery has resulted in a slowdown in growth demand for EVs.

With the Chinese EV market growing at a slower pace, while competition rises, the “China EV price war” has intensified.

As a result, Nio now faces more hurdles than ever, when it comes to both ramping up vehicle sales, and doing it in a way that leads to profitability.

That said, like we hinted at above, Nio continues plugging away with its battery swap gambit, or its pricey buildout of battery swap station infrastructure throughout its home market.

Nio keeps believing that swap stations, which in theory increase potential range, will help to increase demand for its vehicles. However, there are two big risks with this strategy.

First, this buildout is pricey. As InvestorPlace’s Eddie Pan reported on March 25, Nio plans to build 1,000 new stations, at $500,000 each. That’s $500 million.

Second, Nio already operates thousands of stations, and based on the above-mentioned fiscal results, these have clearly done little to improve demand.

The Verdict: Sell or Avoid This Busted EV Play

At one point, Nio appeared primed to become not just a major global EV brand. Now, it may prove challenging for Nio to gain ground/become profitable in its home market of China. Much less, overseas markets like Europe and North America.

The company may believe strongly in its battery swap-focused growth strategy. However, as demand growth stays sluggish, this would-be differentiator could continue to have little impact on carving a path towards profitability.

As high losses continue, investors will also continue to lose confidence that this busted EV play will ever break free of its current “also-ran” status. High losses could also mean an increase in concerns about future shareholder dilution.

Just as we put it previously, it’s hard to be confident about Nio stock right now. With this in mind, consider it best to sell or avoid it.

Nio stock earns an F 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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3 High-Yield Dividend Stocks to Buy With Payouts Over 8%

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With the S&P 500 yielding less than 2% on average right now, high dividend stocks are hard to find. Even though interest rates have risen significantly over the past few years, the major equity indices are broadly unappealing for income investors.

Fortunately, investors can still find high dividend stocks… even in this market. The following three high-yield dividend stocks have payouts above 8%, making them attractive options in an otherwise low-yield stock market.

Altria Group (MO)

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Altria (NYSE:MO) is a consumer staples giant. It sells the Marlboro cigarette brand in the U.S. and a number of other smokeless tobacco brands, including Skoal and Copenhagen. Marlboro commands over 40% retail market share in the United States.

Altria has increased its dividend for over 50 years, placing it on the exclusive Dividend Kings list.

The decline in the U.S. smoking rate is a headwind for the tobacco industry, but Altria is positioning its portfolio for future growth in new areas. During 2023, Altria focused on expanding its smoke-free product portfolio, including the integration of NJOY into its family of companies.

Altria ranks very highly in terms of safety because the company has tremendous competitive advantages. It operates in a highly regulated industry, which virtually eliminates the threat of new competition in the tobacco industry. Altria enjoys strong brands across its product portfolio, including the No. 1 cigarette brand. As a result, it has pricing power and brand loyalty.

Altria maintains a target dividend payout ratio that is 80% of annual adjusted EPS. Its 2024 expected dividend payout ratio should be near this target, meaning the dividend payout is sustainable.

In addition, the yield is very attractive at 9%.

Energy Transfer (ET)

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Energy Transfer (NYSE:ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States. Operations include natural gas transportation and storage along with crude oil, natural gas liquids and refined product transportation and storage. It also owns the Lake Charles LNG Company and has stakes in Sunoco (NYSE:SUN) and USA Compression Partners (NYSE:USAC).

Fortunately for Energy Transfer, the outlook is positive for natural gas, which is considered a cleaner fuel than coal. In the last decade, U.S. electricity production has shifted dramatically from coal to natural gas. Energy Transfer has a healthy backlog, with the expectation to spend about $2.4 billion to $2.6 billion in growth capital expenditures this year.

ET’s distribution has been restored above the pre-pandemic level and is currently well-covered by cash flows, with a coverage ratio of 2.4x. Therefore, in the absence of another severe downturn, the 8% forward distribution yield should be considered safe.

BCE (BCE)

A mobile phone displaying the BCE homepage on its screen

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BCE (NYCE:BCE) is a telecommunications and media company that provides communications services in the following business units: Bell Communication and Technology Services (“CTS”), which includes Wireless and Wireline, and Bell Media. It supports residential customers as well as small- and medium-sized businesses and large enterprise customers.

The future looks positive for BCE. Its free cash flow is likely to rebound in 2024 as it completes 5G investments. It has also trimmed its workforce by 9% to boost profitability and cut costs.

Last quarter BCE increased its quarterly dividend by 3.1%, equating to an annual payout of 3.99 CAD per share. BCE produces cash flows that are typically significantly higher than its net earnings. This means that normally, its free cash flow better supports its dividend than its earnings, but its recent FCF payout ratios have been stretched because of intensive capital investments.

In the short term, BCE can choose to sustain its dividend, having financial flexibility from available liquidity of 5.8 billion CAD at the end of Q4 2023. Additionally, its FCF should improve over the next few years, which should bring the FCF payout ratio down to a more comfortable level again. BCE stock currently yields 8.4%.

On the date of publication, Bob Ciura 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.

Bob Ciura has worked at Sure Dividend since 2016. He oversees all content for Sure Dividend and its partner sites. Prior to joining Sure Dividend, Bob was an independent equity analyst. His articles have been published on major financial websites such as The Motley Fool, Seeking Alpha, Business Insider and more. Bob received a bachelor’s degree in Finance from DePaul University and an MBA with a concentration in investments from the University of Notre Dame.

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Bullion Bullseye: 3 Gold Stocks for Precious Metal Profits

These gold miners have an investment grade balance sheet and a quality asset base that will deliver healthy cash flows

gold stocks for profits - Bullion Bullseye: 3 Gold Stocks for Precious Metal Profits

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After testing investor patience for an extended period, gold has finally surged higher. Currently, the precious metal trades at all-time highs of $2,350 an ounce. The sentiments look bullish and it’s a good time to look at gold stocks for profits.

There are multiple reasons that have supported the rally in gold. The most important factor is the possibility of multiple rate cuts in the coming quarters. Expansionary monetary policies translate into a weaker dollar, and hard assets surge higher.

Further, global geopolitical tensions have contributed to the increased interest in gold as an asset class. It’s worth noting that central banks globally have continued to buy gold to diversify their reserves.

For gold mining companies, higher realized price will translate into EBITDA margin expansion and cash flow upside. This will provide ample headroom for dividend growth and aggressive capital investments. Therefore, let’s discuss three gold mining stocks to buy that are likely to surge from attractive valuations.

Barrick Gold (GOLD)

Barrick Gold (NYSE:GOLD) stock has recovered from lows of the year but remains sideways for year-to-date (YTD). This is a good opportunity to accumulate the undervalued precious metal stock before it surges higher. GOLD stock trades at an attractive forward price-earnings ratio of 18 and offers a dividend yield of 2.26%. Besides capital gains, I expect healthy upside in dividends in the coming quarters.

As of 2023, Barrick Gold reported proven and probable mineral reserves of 77 million ounces. Since the end of 2019, the company has delivered 140% reserve replacement. With quality gold assets comes clear revenue and cash flow visibility.

Another point to note is that Barrick Gold reported adjusted EBITDA and operating cash flow of $5.5 billion and $3.7 billion, respectively, for 2023. With higher realized prices, OCF and free cash flow will swell this year. Barrick Gold will be positioned to increase dividends, share repurchase and capital investments.

Newmont Corporation (NEM)

Newmont Corporation (NYSE:NEM) is another blue-chip gold stock to buy. In the last 12 months, NEM has declined by 21% and trades at a valuation gap. As gold surges, it’s a matter of time before the stock delivers robust returns.

As of 2023, Newmont reported a strong asset base. This included 96.1 million ounces in gold reserves, 30 billion pounds of copper reserves and nearly 600 million ounces of silver reserves. With the acquisition of Newcrest, the company added 47 million ounces of gold reserves last year. This comes at the right time with significant EBITDA margin expansion is likely in coming quarters.

From a financial perspective, Newmont has an investment grade balance sheet. This provides flexibility for aggressive investments, and the company is positioned for steady growth in gold production. For the current year, Newmont has guided for 6.9 million gold ounces of production. Also, as cash flows increase, healthy dividend growth is likely.

Kinross Gold (KGC)

Kinross Gold (NYSE:KGC) is among the relatively smaller gold mining companies that looks attractive. KGC stock has trended higher by 31% in the last 12 months but remains attractive at a forward price-earnings ratio of 18.5. Further, from a 2024 expected enterprise value to EBITDA perspective, KGC is undervalued as compared to Barrick Gold and Newmont Corporation.

An important point to note is that Kinross Gold has a strong financial profile. The company ended 2023 with a liquidity buffer of $1.9 billion. Further, it’s likely that operating cash flow for the year will be more than $2 billion.

In 2022, Kinross Gold had to sell Russian gold assets due to geopolitical factors. The company still has a sizeable gold reserve of 22 million ounces.

It’s likely that with high financial flexibility, the company pursues acquisition to boost the production outlook. Currently, Kinross Gold has guided for stable gold production through 2026. However, as gold trends higher, it’s likely that revenue growth will be robust coupled with free cash flow upside.

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