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4,515 | https://www.cnbc.com/2022/03/22/buy-sherwin-williams-as-higher-costs-are-already-baked-into-the-stock-bank-of-america-says.html | WMB | Williams Companies | Buy Sherwin-Williams as higher costs are already baked into the stock, Bank of America says | The inflation-driven decline for Sherwin-Williams has gone far enough, according to Bank of America. Analyst Steve Byrne upgraded Sherwin-Williams to buy from neutral, saying that the issues facing the chemicals sector are already accounted for in the stock priced. "While raw material cost pressures have continued to escalate since our downgrade on SHW last fall, and we are once again revising estimates to reflect further cost pressure in line with our aggregator, we believe these challenges are largely already reflected in valuation," Byrne wrote. "Given few specialty chems have SHW's pricing power, we expect SHW's gross margins be will among the first to expand, and thus we are upgrading to Buy." Additionally, Sherwin-Williams could be a way to bet on the U.S. economy over Europe. "We also note that Sherwin has the least EU exposure of the US specialty chems, and well below the other coatings companies," Byrne wrote. Bank of America did lower its price target on Sherwin-Williams to $296 per share from $325. The new target is still 20% above where the stock closed on Monday. Shares of Sherwin-Williams have significantly underperformed the broader in market in 2022, dropping 30% year to date. —CNBC's Michael Bloom contributed to this report.
Pigment is added to a gallon of ProMar 200 paint, an interior latex with zero volatile organic compounds, at a Sherwin-Williams store in Princeton, Illinois. Daniel Acker | Bloomberg | Getty Images | 2022-03-22T00:00:00 |
4,516 | https://www.cnbc.com/2021/05/17/seth-klarman-increases-tech-bets-in-the-first-quarter-here-are-his-top-holdings.html | WTW | Willis Towers Watson | Seth Klarman increases tech bets in the first quarter. Here are his top holdings | Seth Klarman's Baupost Group doubled down on a handful of tech stocks and made a big bet on a little-known insurance company in the first quarter of 2021. According to SEC filings released Monday, the widely followed investor and CEO of Baupost Group increased his major positions in Intel , Alphabet , Facebook and Qorvo . Klarman's Intel position is now worth nearly $1.5 billion. Baupost Group owns $600 million of Google-parent Alphabet, $382 million of Facebook and $954 million of semiconductor stock Qorvo. Klarman, a value investor who has drawn comparisons to Warren Buffett over the years, also made a $572 million bet on Willis Towers Watson . The insurance company is now 4.6% of the hedge fund. Shares of Willis Towers Watson are up 25% in 2021. Last week, the company, in partnership with Aon, sold a $3.5 billion portfolio of assets to Gallagher. Baupost Group also made large new bets on International Flavors & Fragrance, Nuvation Bio, Cullinan Oncology and Thomas Bravo Advantage. The hedge fund now owns nearly $300 million of International Flavors & Fragrance and $90 million of Nuvation Bio. In the first three months of 2021, Baupost Group also bought shares of Finch Therapeutics Group and SVF Investment Corp. Take a look at Baupost Group's top holdings as of March. 31: Klarman's fund sold shares of Atara Biotherapeutics, eBay, Fidelity National Financial, FNF Group and Fox Corp. in the first quarter. It dissolved positions in Marathon Petroleum and Radius Global Infrastructure in the first three months of 2021. The hedge fund also exited positions in Redball Acquisition Corp., Vesper Healthcare Acquisition, ViacomCBS and Vista Oil & Gas.
Seth Klarman, founder of the Baupost Group. Daniel Acker | Bloomberg | Getty Images | 2021-05-17T00:00:00 |
4,517 | https://www.cnbc.com/2020/10/15/maximize-tax-savings-from-workplace-perks-at-benefits-enrollment-time.html | WTW | Willis Towers Watson | How to maximize tax savings from workplace perks at benefits enrollment time | In this article WTW Follow your favorite stocks CREATE FREE ACCOUNT
EmirMemedovski
Take a few minutes to review your workplace benefits for next year. Your household finances for 2021 could depend on it. After one of the most difficult and financially stressful years for many Americans, digging back into the details of workplace benefits like health savings accounts, or HSAs, and flexible spending accounts (FSAs) is probably the last thing you want to do. Overcome that fatigue and get to it. More from Smart Tax Planning:
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Got a subsidy to buy health insurance? It could bite you at tax time "People have to think about these plans every year, but this year they have to use a different lens to evaluate their options," said Shannon Bailey, a senior director in health and group benefits at Willis Towers Watson. Covid-19 has dramatically changed the optics of these plans. For some, the coronavirus has led to much higher medical expenses than expected this year. For others, it has prevented them from accessing health care they expected to use, due to community lockdowns and overburdened health-care facilities.
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Workplace health-care plans require a fresh look going forward, especially after Covid-19. "If you're an employee that uses these plans, don't wait to consider the details of them," said Cari Weston, director for tax practice and ethics at the American Institute of Certified Public Accountants. "Go to your HR rep, figure out what you have and consider the options open to you."
The tax benefits of HSAs
Catherine Falls Commercial | Moment | Getty Images
HSAs, available to savers with a high-deductible plan — that is, one with a deductible of at least $1,400 for self-only health coverage — have three key tax benefits. First, they allow participants to contribute money to the account either pre-tax or on a tax-deductible basis. Second, the investable funds accumulate free of taxes. Finally, you can withdraw the money tax-free if it's used for eligible health-care expenses. You don't need to spend the balance down each year, as unused funds in the account roll forward, regardless of how much you spend. Employers can also boost your savings with a matching contribution.
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While many people use HSAs to cover ever-increasing out-of-pocket health-care expenses, their greatest benefit is as a savings vehicle to help pay for higher health-care costs you will have later in life. "You want to build up HSAs to use for health-care costs in retirement," said Kristen Appleman, a senior vice president at payroll provider ADP. She has contributed to an HSA for the last 15 years. "Everyone should contribute the maximum allowed every year." For 2020, that maximum is $3,550 for self-only insurance coverage and $7,100 for family plans. Accountholders over age 55 are eligible for an extra $1,000 contribution.
The ins and outs of medical FSAs
Tom Werner | DigitalVision | Getty Images
Medical FSAs share some commonalities with HSAs. Both allow for pre-tax contributions. Balances can also be used on tax-free basis if it's for qualified medical expenses. In 2020 and 2021, you can contribute up to $2,750 to a medical FSA. You generally can't contribute to both an HSA and a medical FSA at the same time. The major difference between the two accounts is that FSAs have a "use it or lose it" stipulation that requires participants either spend the money they save or forfeit the funds to their employer at year-end. Firms may choose to let employees roll over some of the money — that is, up to $550 for funds from the 2020 plan year — or they may give them a grace period up until March 15 of the following year to use the funding.
Some families have created daycare pods with other families to care for children or they hire people to take care of kids in their homes. Those are eligible expenses. Shannon Bailey senior director in health and group benefits at Willis Towers Watson
Costs eligible for reimbursement by the funds include doctor visits, prescription drugs, lab work, and dental and vision care. Click here for a list of eligible expenses. "I have teenagers with braces and a daughter with glasses," said Appleman. "I know I'm going to have these expenses and a limited-purpose FSA helps me cover the cost." With community shutdowns and business closures, many Americans haven't been able to get dental work or other medical-related procedures performed this year. In some cases, it's left people with large unused balances in their FSAs. In response, the IRS extended grace periods for filing reimbursement claims on 2019 plans through the end of this year. It also allowed people to make mid-year changes to the plan elections they made last year for 2020. Employers have discretion on whether to adopt the changes so check with your HR rep to see if you qualify.
Dependent care FSAs
FatCamera | E+ | Getty Images
Dependent care FSAs, which help employees offset dependent and childcare costs, have been dramatically affected by the pandemic and resulting community shutdowns. Generally, a worker can save up to $5,000 in one of these accounts on a pre-tax basis, but again, the funds must be used up by the end of the year or they're forfeited. Due to Covid-19, daycare centers in many parts of the country have been closed for much of the year. What's more, many employees found themselves working from home and taking care of their children themselves, which means they could have hefty balances in these dependent care FSAs. The IRS addressed this situation by allowing employers to give workers the option of changing the amount they'd normally defer in the middle of the year. That option may not be available next year, so be thoughtful about the money you commit to these dependent care FSAs as you decide how to proceed in 2021. | 2020-10-15T00:00:00 |
4,518 | https://www.cnbc.com/2021/04/02/why-getting-back-to-work-may-happen-quickly-with-covid-vaccines.html | WTW | Willis Towers Watson | Employees could be heading back to the office sooner than they think | watch now
The days of working from home may numbered. While some companies, including JPMorgan Chase, Salesforce and PricewaterhouseCoopers, are dumping office space, others are ramping up their return-to-work plans. Just this week, Google , one of the first major U.S. companies to send employees home last year because of the coronavirus, told staffers it is accelerating plans to get back in the office ahead of the Sept. 1 return deadline. In a memo to Bloomberg employees first reported by Business Insider, Michael Bloomberg said he expects workers to return to the office as soon as they are vaccinated.
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Roughly 8 in 10 employers said immunizations will pave the way to a new normal in terms of returning to the workplace, according to another poll of nearly 500 employers by Willis Towers Watson, a benefits consulting firm. "A common strategy for employers is to make vaccines an easy choice for employees by first helping convince them to get the vaccine and then making it easy for them to do so," said Jeff Levin-Scherz, Willis Towers Watson's population health leader. About a quarter of employers are going a step further by obtaining vaccines to administer to their employees directly or facilitating access to vaccines through a third party — and another 55% are planning or considering doing this, Willis Towers Watson found.
You'll see more employers providing access to the vaccines. Peter Cappelli Professor at the University of Pennsylvania's Wharton School | 2021-04-02T00:00:00 |
4,519 | https://www.cnbc.com/2022/06/16/more-high-earners-are-living-paycheck-to-paycheck.html | WTW | Willis Towers Watson | Amid high inflation, 36% of employees earning $100,000 or more say they are living paycheck to paycheck | More than a third of high-earning American workers feel strapped for cash — a share that has risen dramatically in recent years.
Thirty-six percent of U.S. employees with salaries of $100,000 or more are living paycheck to paycheck — twice as many who said they were in 2019, according to a survey conducted by Willis Towers Watson, a consulting firm.
That's more than the 34% of workers who earn $50,000 to $100,000 a year who are living paycheck to paycheck, though lower than the 52% of paycheck-to-paycheck workers with incomes of less than $50,000, according to the survey.
However, the high earners are the only group that saw an increase in their paycheck-to-paycheck ranks in the last three years.
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"Employees at higher pay levels aren't immune to living paycheck to paycheck," said Mark Smrecek, the financial wellbeing market leader for North America at Willis Towers Watson.
Willis Towers Watson polled 9,658 full-time employees from large and midsize private employers in December and January 2022, before the most recent inflation readings.
The findings are similar to a recent LendingClub survey that found 36% of people earning at least $250,000 a year live paycheck to paycheck. | 2022-06-16T00:00:00 |
4,520 | https://www.cnbc.com/2022/05/05/employers-boost-mental-wellness-benefits-amid-the-great-resignation.html | WTW | Willis Towers Watson | Employers boost mental wellness benefits amid the Great Resignation | The Covid-19 pandemic drove home the need for employers to address workers' mental wellness.
The "Great Resignation," also called the "Great Reshuffle," is showing that not following through could send employees walking out the door.
Millions of Americans have quit their jobs over the past year, including a record 4.5 million in March alone.
Many attribute their decision to being burned out. Some 89% of those who either recently left their job or were planning to do so said they felt burned out and unsupported, a survey by education tech firm Cengage found. The survey, conducted in November 2021, polled 1,200 U.S. adults age 25 and older who either quit in the last six months or said they plan to quit in the next six months.
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Meanwhile, the pandemic has had serious repercussions on people's mental health. More than 30% of Americans reported symptoms of anxiety disorder or depressive disorder from March 30 through April 11, according to the National Center for Health Statistics' Household Pulse Survey. Prior to the pandemic, in 2019, that number was 10.8%.
Many companies are stepping up to address the issue. Some 87% of U.S. employers said enhancing medical health benefits will be one of their top priorities over the next two years, according to a survey by benefits consulting firm WTW, formerly known as Willis Towers Watson.
"Mental health is in the forefront of employers' minds because the understanding of how much need we have is much better than it was a short while ago," said Jeff Levin-Scherz, population health leader at WTW and a medical doctor. | 2022-05-05T00:00:00 |
4,521 | https://www.cnbc.com/id/100180189 | WTW | Willis Towers Watson | Willis Group names Casserly CEO, effective Jan 7 | Insurance broker Willis Group Holdings has named McKinsey & Co. senior partner Dominic Casserley its next CEO, starting Jan. 7. Long-time Willis CEO Joe Plumeri will become non-executive chairman.
The London-based company also said Wednesday that Steve Hearn, 46, will serve as Willis Group deputy CEO. Hearn is currently chairman and CEO of Willis Global.
Casserley, 54, joined McKinsey & Co. in 1983 and has been working across Europe from London since 2000. He has led the firm's China and UK and Ireland practices.
Plumeri, 69, will serve as non-executive chairman through next July. He joined Willis as chairman and CEO in 2000 and led the company through a 2001 initial public offering of stock.
Willis shares finished at $36.90 on Tuesday. Its shares traded at a 52-week low of $33.81 in mid-February. They peaked for the year at $40.70 almost a year ago. | 2012-10-17T00:00:00 |
4,522 | https://www.cnbc.com/2021/06/17/stocks-making-the-biggest-moves-in-the-premarket-curevac-the-honest-company-fisker-more.html | WTW | Willis Towers Watson | Stocks making the biggest moves in the premarket: CureVac, The Honest Company, Fisker & more | Take a look at some of the biggest movers in the premarket:
CureVac (CVAC) – CureVac shares plunged 46.2% in the premarket after the German drugmaker reported disappointing results from a study of its experimental Covid-19 vaccine. The treatment was 47% effective in a clinical trial, compared to more than 90% for other mRNA-based vaccines from Moderna (MRNA) and Pfizer (PFE).
Novavax (NVAX), BioNTech (BNTX) – On the heels of the CureVac news, Novavax added 3.4% in the premarket while BioNTech rose 2.6%. BioNTech's Covid vaccine – developed in partnership with Pfizer – is already approved for use in the US, while Novavax reported 90% efficacy for its vaccine in a recent study.
The Honest Company (HNST) – The household products maker reported a wider-than-expected loss in its first quarter as a public company, although revenue was better than analysts had anticipated. Sales got a boost from pandemic-induced demand for sanitizing products. The stock tumbled 8.3% in premarket trading.
Tenet Healthcare (THC) – The hospital operator's shares jumped 3.5% in the premarket, after it announced the sale of five hospitals and associated physician practices in Florida to Steward Health Care for about $1.1 billion.
Lennar (LEN) – Lennar earned $2.65 per share for its latest quarter, beating the $2.36 a share consensus estimate. Revenue topped forecasts as well. The home builder is dealing with higher input costs and a labor shortage, but the lack of homes for sale in the U.S. helped push prices higher and expand Lennar's profit margins significantly over a year earlier.
Dell Technologies (DELL) – Dell was chosen by Dish Network (DISH) to build key parts of the 5G network the satellite TV operator is building in the United States. Dish will launch 5G service in Las Vegas later this year and plans to cover 70% of the U.S. with its network by mid-2023.
Fisker (FSR) – Fisker shares added 2.8% in the premarket after the electric vehicle maker signed a long-term manufacturing agreement with Magna International (MGA). Magna will build the Fisker Ocean electric SUV starting in November 2022.
Aon (AON), Willis Towers Watson (WLTW) – The U.S. Justice Department sued to block insurance company Aon's deal to buy consulting firm Willis Towers Watson for $35 billion. The department said the combination could eliminate competition in several different markets. Aon and Willis Towers said the move showed a lack of understanding of their businesses, clients and the markets in which they operate.
Akamai Technologies (AKAM) – A variety of financial institutions, governments and airlines experienced brief website outages early Thursday. Some of the outages were linked to a failure at web services company Akamai Technologies, according to people familiar with the matter who spoke to Bloomberg. Akamai said it was aware of the issue and was working to restore service as soon as possible. Shares fell 1.5% in premarket trading.
O'Reilly Automotive (ORLY) – The auto parts retailer struck a new $1.8 billion revolving credit agreement with a group of banks led by JPMorgan Chase (JPM).
Jack In The Box (JACK) – The restaurant chain was rated "outperform" in new coverage at RBC Capital, which noted the stock's discounted valuation compared to its peers as well as upbeat prospects for new restaurant growth. | 2021-06-17T00:00:00 |
4,523 | https://www.cnbc.com/2013/09/18/more-value-investing-congress-ideas-from-willis-to-wausau.html | WTW | Willis Towers Watson | More 'Value Investing Congress' ideas, from Willis to Wausau | The Value Investing Congress wrapped up Tuesday in New York City, but not before additional money managers added some new stock recommendations.
(Read more: Top picks from the Value Investing Congress)
ValueAct's Ubben: reinsurer Willis undervalued
Jeffrey Ubben of $11 billion activist investor ValueAct Capital recommended buying global reinsurance company Willis Group , saying the flat earnings that characterized the last five years are set to pick up.
Ubben noted that the company's North American and emerging markets businesses were growing again; new leadership under recent CEO appointment Dominic Casserley was positive; and cash flow was accelerating. He said the company has "strong positioning" in a growing industry and that recent entrants in the reinsurance business like hedge funds were "less sophisticated" than Willis (SAC Capital Advisors and Greenlight Capital are examples of hedge fund firms who have launched reinsurance arms).
Ubben declined to comment on one of ValueAct's highest profile investments, Microsoft . "We are excited to be working with them," he said slyly in response to a question from the audience about his firm's $2 billion investment. "I can't really talk...because we are in the middle of stuff."
(Read more: Microsoft's $40 billion buy back)
Starboard's Jeffrey Smith: I love toilet paper
Jeffrey Smith of $1.5 billion activist investor Starboard Value continued his effort to extract value out of Wausau Paper Corp . Smith, who has been engaged with the company since 2011 and has seats on the board, said the tissue maker was running a solid business but still had significant improvements it could make.
Smith detailed several examples of cutting overhead costs and growing market share. He said the company had enough cash to buy back up to $100 million of its stock.
He called the company's tissues—which includes unbranded toilet paper and other specialty tissue for offices—a "gem" and a "beautiful, beautiful" business. Smith said Wausau could go "up market" with premier toilet paper thanks to a new production machine and new recycling techniques.
Smith said Wausau Paper is "under followed, under levered, under valued." He urged the company to rebrand itself as the pure play tissue maker it has become since Starboard invested, not the paper-centric or Wisconsin-based business the legacy name incorrectly implies.
The stock jumped following Smith's comment to around $12.5 a share, up from $11.9. | 2013-09-18T00:00:00 |
4,524 | https://www.cnbc.com/2020/11/05/how-silicon-valley-facebook-salary-cuts-are-shaping-remote-worker-pay.html | WTW | Willis Towers Watson | From Facebook to Reddit, how Silicon Valley salary adjustments could redefine remote worker earnings | A richer talent pool
The tech industry has long been recognized for its ability to attract top talent with generous pay packets and lavish benefits. But that could be changing as employers consider localizing pay according to where the staff is based. That may be bad news for tech workers. In a recent survey of more than 2,000 tech professionals, more than half (53%) said that they would move to a lower-cost city if work-from-home policies became permanent, but the majority (56%) said they would not take a pay cut to do so.
Westend61 | Getty Images
However, it could be good news for leveling the field and broadening access to talent, according to the experts. "Employers will benefit from a richer talent pool," said Orly Lobel, law professor at the University of San Diego and the author of "Talent wants to be free." "Now companies are realizing that with new technological capabilities and the right structures in place, they can recruit from anywhere without requiring geographic mobility."
International implications
The shift away from expensive tech hubs would open up new opportunities for previously underrepresented workers in the United States — such as women, minorities and older workers, who typically face greater hurdles in working in major cities, said Lobel. But it could also present more options for overseas workers, too. "With a more permanent remote working arrangement, the competition for talent intensifies as the talent pool becomes less location-centric," said Sonia Liew, rewards practice leader for Singapore at global advisory firm Willis Towers Watson.
In Asia, this may apply to China's or India's tiers in cities — as it will only impact larger countries with differentiated pay levels. Godelieve Van Dooren regional industries and career products leader (APAC), Mercer
Those changes may, in turn, prompt international firms to follow the U.S. in adopting localized pay rates across cities and regions. Such strategies will be most applicable for larger countries with similarly divergent living costs, according to HR consulting firm Mercer. "In Asia, this may apply to China's or India's tiers in cities — as it will only impact larger countries with differentiated pay levels," said Godelieve Van Dooren, Mercer's regional industries and career products leader for Asia-Pacific.
Opportunities for employers and employees
International employers have yet to make such salary adjustment announcements, the experts noted. Indeed, in its latest salary report, Willis Towers Watson found that employers in Asia-Pacific are more likely to freeze salaries and bonuses this year. However, the changing landscape presents new challenges and opportunities for both employers and employees. Companies will need to consider how their existing employment contracts view compensation changes and what restrictions they may face, according to Guillaume Vergnaud, managing director of consultancy firm New Horizons Global Partners. Those who deem it appropriate to adjust salaries should inform those affected as soon as possible and confirm any changes in writing — ideally with an updated employment contract, he said.
luza studios | E+ | Getty Images
Meanwhile, employees will need to be aware of how any decision to relocate might impact their pay packet. Willis Towers Watson's Liew encouraged employees to be flexible and receptive to hybrid compensation packages that offer benefits beyond traditional remuneration, such as remote working allowances. "As companies navigate through this crisis and the uncertainties ahead, it is critical to ensure that employees understand how their pay is determined and perceive that their pay is fair relative to their contribution," she said.
A longer-term shift
That flexibility could be important going forward, according to Julia Pollak, labor economist at jobs marketplace ZipRecruiter, who predicted that theoretically, lower living costs and fewer work-related expenses for remote workers could translate to wage stagnation going forward. "Wage growth may slow in the coming years as a result of the shift to remote work because employees are saving large amounts of money on commuting, work attire and housing," said Pollak.
Organisations should strive to reward high performers based on their contributions, or risk losing these employees. Sonia Liew Rewards practice leader, Willis Towers Watson | 2020-11-05T00:00:00 |
4,525 | https://www.cnbc.com/2022/03/22/great-resignation-continues-as-44percent-of-workers-seek-a-new-job.html | WTW | Willis Towers Watson | The Great Resignation continues, as 44% of workers look for a new job | Thianchai Sitthikongsak | Moment | Getty Images
Almost half of employees are looking for a new job or plan to soon, according to a survey, suggesting the pandemic-era phenomenon known as the Great Resignation is continuing into 2022. To that point, 44% of employees are "job seekers," according to Willis Towers Watson's 2022 Global Benefits Attitudes Survey. Of them, 33% are active job hunters who looked for new work in the fourth quarter of 2021, and 11% planned to look in the first quarter of 2022.
"The data shows employees are prepared and open to go somewhere else," according to Tracey Malcolm, global leader of the future of work and risk at the consulting firm. The survey polled 9,658 U.S. employees from large and midsize private employers across a broad range of industries in December 2021 and January 2022.
Great Resignation
The Great Resignation, also known as the Great Reshuffle, has been a hallmark of the U.S. labor market since spring 2021, when the economy began emerging from its pandemic hibernation and demand for workers grew among businesses. Job openings and quits swelled to historic highs, and layoff rates fell to record lows. Wages grew at a fast clip as businesses competed for talent.
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Nearly 4.3 million people quit their jobs in January, just shy of a monthly record set in November, according to most recent federal data. Almost 48 million people quit in 2021, an annual record. Data suggests most aren't quitting to sit on the sidelines — a strong job market with ample opportunities and higher pay are luring them to find work elsewhere, according to economists. Some are reinventing their careers altogether. Over half of workers (56%) said pay is a top reason they'd look for a job with a different employer, according to the survey. Forty-one percent would leave for a 5% increase. Households have been battling persistently high inflation, which has eaten into budgets and outstripped raises for the average worker. | 2022-03-22T00:00:00 |
4,526 | https://www.cnbc.com/2016/10/20/are-industrials-the-achilles-heel-for-earnings.html | GWW | W. W. Grainger | Are industrials the Achilles' heel for earnings? | A General Electric (GE) GEnx next generation jet engine sits on display in the GE Aviation Systems LLC chalet on the opening day of the 51st International Paris Air Show in Paris, France.
This is the world we are living in: 1 to 2 percent growth, and no matter how many countries you sell in and no matter how many products you sell, you can't get much growth. It is hard to see any acceleration in growth.
Earnings beat by a penny, with revenue inline. The midpoint of the full-year guidance is $5.61, a couple of pennies below the $5.63 consensus. Here's the core of the problem: organic revenue growth of 1.6 percent.
You can see the problem just by looking at one company that reported Thursday: Illinois Tool Works. This is one of the most diversified industrial companies in the world, selling automotive equipment, food equipment, adhesives and sealants, welding equipment, construction products, and testing/measurement equipment in 57 countries.
Same problem with W.W. Grainger , which makes industrial supplies (janitorial products, ladders, safety gloves). They reported a slight beat on earnings, but full-year guidance was lowered at the midpoint. Overall sales are seen growing 1.5 to 2.5 percent year-over-year. Prior expectations were for growth of 1 to 4 percent. "We expect fourth-quarter demand to remain challenged," CEO D.G. Macpherson said.
This is all a bit maddening, because we were supposed to see improvement in the third quarter. Several companies (such as Pentair , which makes water and fluid controls used in the oil and food & beverage business) indicated in their second-quarter reports that Industrials were bottoming. That may be the case, but we are not seeing any lift at all.
Lackluster EPS growth prospects and pressure on margins: I expect to hear this repeated frequently as some of the companies most exposed to the global economy and manufacturer report in the next week, including Ingersoll-Rand , Pentair, and Flowserve .
There are a few positives. The U.S. consumer is still strong, so companies that sell into the consumer space like Stanley Black & Decker (tools), or Watsco (heating, ventilation and air conditioning distribution) should hold up.
And if oil can establish a new trading range of $50 to $60, that would certainly help companies exposed to Energy infrastructure like Dover , or Flowserve, which makes pumps and flow control systems for the oil industry.
One wild card is nonresidential construction — an awful lot of stuff goes into those office buildings — if the trends hold up, companies that sell into this space like Ingersoll-Rand, Honeywell and Xylem might have more positive commentary.
But that's a big if. General Electric reports tomorrow. This is the classic Industrial, even more important now that it has shifted its focus away from the Financial space and repositioned its portfolio to again concentrate on its industrial operations. They sell in more than 170 countries — virtually the entire world. They are intimately involved in infrastructure, with businesses in aircraft engines, appliances, medical imaging, water processing and wind turbines. Those businesses — Power, Aviation, and Healthcare — have been strong. That's one of the reasons they have been expecting organic revenue growth of roughly five percent for the second half of the year.
That's a tall order, especially considering other areas — Oil & Gas, Transportation (locomotives) are having a tough time.
That's why everyone will be watching GE tomorrow. | 2016-10-20T00:00:00 |
4,527 | https://www.cnbc.com/2022/06/29/recession-stars-the-best-stocks-in-every-industry-during-economic-downturns.html | GWW | W. W. Grainger | Recession stars: The best stocks in every industry during economic downturns | As Wall Street trots out stock picks for weathering downturns, CNBC Pro reviewed past recessions to find the best performers in each industry. More analysts this week are updating their ratings for the likelihood of a recession. On Wednesday, Bank of America upgraded shares of Goldman Sachs to buy from neutral, saying the bank can thrive during a downturn. UBS reviewed how online retailers would perform in a slowdown, downgrading shares of Ebay to neutral as discretionary purchases make up the bulk of its merchandise. Investors are preparing their portfolios as forecasts of a recession rise on Wall Street. During an appearance Tuesday on CNBC's " Squawk Box ," Ark Invest CEO Cathie Wood said the U.S. is already in a downturn . Wood, whose flagship tech-heavy fund has been devastated this year due to rising interest rates, said she underestimated the severity of inflation. To find winners in a declining economy, CNBC Pro reviewed the stock performance of S & P 500 companies during the past three recessions and in 2022 to pick out the top performers in each industry. Stocks that lost more than 20% during these periods were filtered out. This screen used FactSet data. Here are the recession stars in every industry: Historically speaking, AutoZone is the best performing stock in the retail sector during prior downturns, rallying 41.6% on average during the last three downturns and year to date. The company's focus on non-discretionary items — or auto parts that drivers need for repairs and replacements regardless of what the economy is doing — earned the stock a buy rating just this week from Goldman Sachs. Gilead Sciences is the recession outperformer in the health-care sector, posting an average gain of 32.9%. The company is diversifying from its HIV business into oncology, which it hopes will generate long-term growth for the company, according to a note last month from SVB Securities. Still, the firm gave Gilead a market perform rating, saying the company will need to generate more compelling products in its pipeline. NortonLifeLock made hefty gains during prior downturns, climbing 12.4% on average. The tech company could become the "dominant player" in consumer cybersecurity after it acquires Avast, according to a note last month from Argus Research. The firm is getting a boost from the rise of remote work and the increasing need for cybersecurity solutions. Other stocks in this list include: WestRock , Dollar Tree , Global Payments , W.W. Grainger and Consolidated Edison . | 2022-06-29T00:00:00 |
4,528 | https://www.cnbc.com/2016/06/08/cramer-forget-nonfarm-payroll-these-stocks-are-the-economys-crystal-ball.html | GWW | W. W. Grainger | Cramer: Forget nonfarm payroll! These stocks are the economy's crystal ball | "The railroad stocks are like crystal balls. Even though many of these cargoes are down big, especially coal, even though CSX told a tale of woe about the need to reset expectations lower, the rails are on fire. These stocks have not only bottomed, they are leading the market higher!" Cramer said.
The four big players on Cramer's radar are Union Pacific , CSX , Norfolk Southern and Kansas City Southern , and they all carry the same cargoes, which help with comparison.
Cramer always monitors the rails as a measure of the strength of the economy, because the cargo that they move such as chemicals, lumber, steel, oil and agricultural products touch almost every aspect of the manufacturing economy.
"These building block characters, these stalwarts of the U.S. economy, are all flashing green," the " Mad Money " host said.
Sometimes when it comes to the overall direction of the market, the stocks that really matter are under-the-radar. That is why Jim Cramer decided to highlight the stocks he is following to shed light on what is really happening in the economy.
I like HD Supply a heck of a lot more than the non-farm payroll report that everyone trades off of, like it or not, because the numbers from these guys are a lot more reliable.
While Cramer admitted he is baffled by the move, his explanation is that the move away from coal to natural gas has finally run its course, and that it has finally bottomed.
The second stock is International Paper , a company reinventing itself with technology. Cramer considers this company to be a tremendous barometer of commerce; linerboard is a commodity that goes up in price when there is more shipping, and down when there is less. Thus, he uses the stock as a predictor for commodity pricing.
"The more International Paper rallies, the better you should feel about the U.S. economy, as almost 75 percent of the company's business is domestic," Cramer said.
Next on Cramer's radar is Waste Management , which is a gauge for construction, especially for new homes, renovations and tear downs. When more houses are built, more junk needs to be hauled away by Waste Management.
The fourth stock is HD Supply , an industrial distributor that is involved with almost everything that relates to a growing economy: facilities maintenance, construction and waterworks.
"You can't beat this company as a gauge of the U.S. economy ... I like HD Supply a heck of a lot more than the nonfarm payroll report that everyone trades off of, like it or not, because the numbers from these guys are a lot more reliable," Cramer said.
The final choice was W W Grainger , the large distributor of many things, including abrasives, adhesives, hospitality furniture, food serve, heating and lab supplies. The stock is up 14 percent for the year and has managed to pull off better than expected numbers. Grainger has led the way down to almost every rough patch that Cramer can recall.
"With the averages either challenging or creating their highs for the year, you have to believe this rally is the real deal. You may fight it, you may dislike it, but in the end these stocks are saying don't sweat the program, embrace it," Cramer said. | 2016-06-08T00:00:00 |
4,529 | https://www.cnbc.com/2015/10/16/street-looks-to-data-earnings.html | GWW | W. W. Grainger | Wall Street looks to data, earnings | U.S. stock index futures indicated a flat to slightly higher open on Friday, with traders keenly anticipating the release of economic data for any signs of softness that would reinforce the pervading view that the Fed is on hold for now.
Stocks surged Thursday amid speculation the Fed would not hike rates until sometime next year, with weak economic reports feeding that view.
The market got a nudge from a comment by New York Fed President Bill Dudley, who said he would favor a rate hike this year, but it depends on the strength of the economy. He then added that recent data indicates the economy is slowing.
On the data front, industrial production declined 0.2 percent in September, with capacity utilization at 77.5 percent.
Consumer sentiment and the job openings and labor turnover survey, or JOLTs, released at 10:00 a.m. | 2015-10-16T00:00:00 |
4,530 | https://www.cnbc.com/2022/03/23/technology-health-care-industrials-are-good-long-term-investing-bets.html | GWW | W. W. Grainger | Op-ed: Investors should look at technology, health care and industrials for long-term investing potential | Ridvan_celik | E+ | Getty Images
The current stock market, highly volatile and trending lower this year, makes this a daunting time for individual investors seeking to identify companies with reasonable risk and good long-term growth potential. Concerns about overall market performance — as of mid-March, the S&P 500 Index had had the fifth-worst start to a year since 1927 — means investors are acutely aware of various negative forces: the highest inflation in 40 years, an expected series of interest-rate increases that has already begun and Russia's invasion of Ukraine. Thus far, these and other factors have made 2022 a year of great uncertainty. Uncertainty muddies market waters, yet investors willing to wade in can do so more confidently with the informed vision to spot opportunities through the mud. More from Personal Finance:
Here's how retirees can navigate inflation
Skyrocketing inflation is taking a big bite out of your paycheck
Here's what the Fed's rate hike means for borrowers, savers and homeowners Currently, three sectors — technology, health care and industrials — have relatively high concentrations of companies with low-risk characteristics, low valuations and good earnings growth projections.
Say yes to technology
There are low valuations in technology? The poster-child sector for growth stocks and the polar opposite of value investing? That is correct. The sector's price-earnings ratios have declined significantly with falling prices this year. As of mid-March, at least 50 stocks in the Nasdaq Composite Index were down at least 50% from their highs, putting them well into bear territory. Also pushing prices down has been the market's anticipation of interest-rate increases, which tend to disproportionately punish growth stocks with high P/Es, a common tech characteristic. Yet even before this year's slide, Nasdaq 100 P/Es were in a slow decline that started in mid-2020. The cumulative effect: As of March 17, the index's average P/E was 27, down from 35 in August 2021.
watch now
This trend has sharpened the existing contrast between quality, earnings-rich tech companies (some even pay dividends) and earnings-challenged firms that, like Icarus in Greek mythology, perilously fly close to the sun with astronomical P/Es. For example, in late March, negative earnings of high-fliers Zscaler and Snowflake meant they had no positive P/Es and ethereal forward P/Es of 400 and 1,356, respectively. But quality tech firms with real earnings are firmly rooted in terra firma. For example, Oracle and Qualcomm , in mid-March, had forward P/Es of 8 and 15, respectively, significantly lower than the S&P 500's forward P/E of 19. The higher a company's P/E, the more investors pay for earnings and the less attractive it generally is, so high P/E stocks can drag indexes down. Thus, the widening P/E gap supports the case for investing actively by buying individual stocks rather than passively by buying index funds or ETFs.
The new category of low-valuation tech is heavily populated by companies in the semi-conductor industry, hardly surprising amid the current, unprecedented demand for chips, used in everything from cars to toasters — and even toilets. In addition to relatively low P/Es, some chip stocks — Applied Materials , KLA Corp. , Lam Research and Qualcomm, among them — have other fundamental characteristics indicating low risk, as well as projected average annual earnings growth well into double-digits over the next five years, according to Factset's average analysts' projections. Yet tech stocks with these characteristics aren't limited to the chip industry. Others include: Apple , Microsoft , Oracle, Seagate Technologies , Skyworks Solutions and VMware Inc. (Class A).
Seeking health care
Health-care costs haven't increased as much as many items in recent months, but with or without inflation, people are going to seek it, especially now that virus fears have ebbed. The big consumer group in this sector, of course, is baby boomers, many of whom are now in their late 60s and naturally seeking more care, including elective procedures they postponed during the pandemic. The return of elective surgery bodes well for medical and surgical device companies like Medtronic, and will have a follow-on effect for other types of health-care companies as these returning patients are prescribed more tests and medications. Like technology, this is a sector where passive funds may not be the best way to invest these days. Average valuations are now fairly low but share price trends have been sharply divergent recently; this is a split sector.
Morsa Images | DigitalVision | Getty Images
Looking at industrials
Industrials are hardly a sexy sector, but investors are keenly aware that industries need to make a lot of stuff to meet current demand. As industrials crank up to supply manufacturers with equipment and services, they face higher input costs. But many of these companies have pricing power in an environment where demand for many items far outstrips supply. This sector has declined less than most in recent weeks, but it didn't have as far to fall, as prices have been pretty flat for about a year for some companies and even longer for others. For example, in mid-March, Cummins , which manufactures commercial gasoline, diesel, and hydrogen-fuel-cell engines, was priced about where it was in 2018.
watch now | 2022-03-23T00:00:00 |
4,531 | https://www.cnbc.com/2017/07/24/amazon-business-has-more-than-1-million-customers.html | GWW | W. W. Grainger | Amazon's competitor to Staples and industrial supply shops now has 1 million customers | Jeff Bezos speaking at the new New York Economic Club luncheon in New York on Oct. 27, 2016.
Amazon isn't just going after retailers and grocery stores. It's capturing a bigger share of the business supplies space as well.
Amazon Business, a business marketplace launched in 2015, now has over one million customers, more than tripling in size from last May, Amazon announced Tuesday. It also said there are more than 85,000 sellers on its platform, up from the 30,000 it had last year.
Amazon Business also offers other services like business analytics and loans to its sellers. The marketplace is only available in the US, UK, and Germany.
The growth in Amazon Business, which sells everything from industrial supplies like screws and pumps to lab and medical equipment, reflects the e-commerce giant's continued expansion. As Amazon looks for the "fourth pillar" of its business — to go alongside the e-commerce marketplace, Amazon Prime and Amazon Web Services — some investors believe Amazon Business could be that next growth driver.
In a report last year, RBC Capital wrote, "The Business Supplies total addressable market is attractive ($5 trillion) and Amazon's offering is unique and leverages Amazon's core competencies. We believe Amazon Business has significant potential to be Amazon's Fourth Pillar," it said.
Besides the numbers of sellers and buyers, Amazon didn't share much data around Amazon Business's growth. Last year, Amazon Business disclosed that it saw over $1 billion in sales in its first year of launch.
Still, investors are keeping a close eye on Amazon's move into the business supplies space. Earlier this month, Susquehanna for Grainger , the industrial parts seller, citing "heightened anxiety about the potential negative impacts of rising online competition from Amazon and other players." Grainger stock is down 24% over the past year. | 2017-07-24T00:00:00 |
4,532 | https://www.cnbc.com/2016/12/06/the-fight-over-raising-2017-earnings-has-just-begun.html | GWW | W. W. Grainger | The fight over raising 2017 earnings has just begun | Should 2017 earnings estimates be raised? That's the heart of the debate raging among market participants right now.
Here's the problem: Even before the Trump victory, analysts had raised their 2017 earnings estimates on the simple theory that the economy would continue its modest expansion, and particularly that oil stocks would once again start producing higher profits. The cratering of oil company profits in 2015-2016 was a major reason for the S&P's "profit recession."
Analysts — who employ a "bottoms-up" methodology that looks primarily at corporate fundamentals in estimating earnings, expect the S&P to see a roughly 10 percent gain in earnings in 2017. These estimates are historically optimistic.
But that was before the Trump victory. Analysts and strategists are now struggling to quantify what — if any — boost to earnings we may see in 2017 from fiscal stimulus(infrastructure), tax reform, and fewer regulations.
Stocks are moving on an assumption that this will lead to higher earnings and GDP growth, but no one knows quite how to quantify this because we have no hard numbers.
The fight has just begun, but it's clear there is not a lot of agreement.
Take Bank of America Merrill Lynch, which on Tuesday issued a bullish note on airlines in general, raising United Continental to a "buy" and increasing the price target. Why? Because bookings are improving, but more importantly because airlines have a high sensitivity to GDP growth. On the theory that nominal GDP growth would be higher than the roughly 1.5 to 2.0 percent growth we have seen, BofA raised the revenue estimate to 3.2 percent. While they did not change their earnings estimate, the implication is that earnings could clearly go higher.
The problem, of course, is that market participants have swallowed the "Trump will expand GDP" story hook, line and sinker. | 2016-12-06T00:00:00 |
4,533 | https://www.cnbc.com/2022/01/28/one-positive-trend-emerges-from-rough-earnings-season-so-far-dividend-investing-is-back.html | GWW | W. W. Grainger | One positive trend emerges from rough earnings season so far: Dividend investing is back | After years where price growth was all that matters, 2022 may be the year of the dividend. Corporate America is again reporting strong cash flows as the recovery has proceeded. That means many companies can send more money back to shareholders in the form of buybacks and dividends. But there is reason to believe dividends may be gaining the upper hand over buybacks. With one-fourth of the S & P 500 reporting, 17 companies have announced dividend increases. Several have provided notable increases: Halliburton 167% Lennar 50% Wells Fargo 25% Marathon Oil 22% J.B. Hunt 33% Blackrock 18% Archer Daniels Midland 8% While these companies are reporting large dividend boosts, the overall trend is up. After dipping in 2020, total dividend payouts for the S & P 500 hit a new record in 2021 and are expected to rise 6% to 8% this year. S & P 500: yearly dividend payouts 2017 $420 billion 2018 $456 billion 2019 $485 billion 2020 $483 billion 2021 $511 billion (record) 2022 (est.) $541billion (record) Source: S & P Dow Jones Indices Why dividend hikes are more important than buybacks Companies have several ways they can distribute their cash flow. They can keep the money, buy back stock, pay down debt, make capital expenditures, or pay a dividend. In recent years, buybacks have been increasingly popular, because if a company can buy back enough stock to reduce share count, the earnings per share will increase. Where the cash flow goes (Q3 2021, based on GAAP net income) Buybacks: 39.0% Capital expenditures: 29.3% Dividends: 21.6% Retained earnings, paying down debt 10.1% Source: S & P Dow Jones Indices But now there are signs that dividends may become more important. While the S & P 500 still yields an historically low 1.44% yield, that is above the roughly 1.2% range it was in for much of last year and will certainly rise further this year. The historic average yield for the S & P is 3.5%. "With all the volatility, cash in hand has become what matters to a lot of investors," Howard Silverblatt, senior index analyst at S & P Dow Jones Indices. "Dividends don't matter as much if you're making 20% price returns," he said. "But if you are only expecting a price return in the low single digits for stocks this year, or even a down year, a 2 or 3% dividend will matter a lot." Dividends increases are a sign of corporate confidence "When companies increase their dividends, that is a very forward-looking indicator," Simeon Hyman, global investment strategist at ProShares, told me. "When they increase dividends, it is a sign of confidence in future cash flows," he said. "A buyback is not as sticky as a dividend increase. You can always stop buying back stock without a lot of complaints from investors. That's not true with dividends." Dividends as a hedge against inflation Companies with significant dividends, and those that are growing them, are likely to get increased attention for another reason: Dividends are a good hedge against inflation. "The growth of dividends is one of the most important contributions equities can deliver to defend against inflation," Hyman told me. What type of dividend stocks should you own? Another reason dividend paying stocks may be a better bet this year: Many of the stocks with the most attractive yields are in more defensive, value sectors like utilities and consumer staples and energy. They underperformed in recent years as growth stocks, which pay low dividends, got all the attention. That may now be changing as the Fed is raising rates, making value stocks more attractive in general. Not all stocks that pay dividends are alike. Some just pay a high dividend. Others — known as "aristocrats" — have a history of raising their dividend consistently over many years. Todd Rosenbluth, director of ETF and mutual fund research at CFRA, believes the "aristocrats" are likely to get increased attention this year. "In prior years, some investors bought high dividend stocks as an alternative to low bond yields," he told me. "That could be a riskier strategy this year, because if investors can get similar yields from a bond than a high yield stock, it would be less risk to own the bond over the stock." Simeon Hyman at ProShares, who manages the ProShares S & P 500 Dividend Aristocrats ETF , which holds S & P 500 stocks that have increased dividend payments annually for at least 25 years (including Hormel Foods, McCormick, Procter & Gamble, and W.W. Grainger), agreed. "You need dividend growth as a bulwark against inflation," Hyman said. "If you just go to companies that pay high yields and are not growing the dividend, you could be particularly exposed to inflation and rising interest rates." Note: Simeon Hyman and Todd Rosenbluth will discuss dividend strategies for 2022 on ETF Edge this Monday at 1 p.m. ETFedge.cnbc.com
Traders on the floor of the NYSE, Jan. 26, 2022. Source: NYSE | 2022-01-28T00:00:00 |
4,534 | https://www.cnbc.com/2022/01/20/these-are-morgan-stanleys-favorite-stocks-into-earnings.html | GWW | W. W. Grainger | These are Morgan Stanley's favorite stocks into earnings | As earnings season continues, Morgan Stanley picked out a handful of companies whose shares could rise after issuing their quarterly results. Fourth-quarter earnings should be strong, the firm said in a note to investors Thursday. However, companies are also likely to face tougher comparisons in the first half of 2022, as well as higher costs. "Ultimately, we think 2022 guidance provided on earnings calls over the next several weeks will inform the path of earnings revisions from here," Morgan Stanley equity strategist Michelle Weaver said in the note. "S & P 500 earnings are expected to rise 22% YOY during the fourth quarter; this marks a continued deceleration in earnings growth and what we believe is likely to be the last quarter of double-digit growth until the fourth quarter of 2022." Energy, technology and industrial sectors are expected to be big growth drivers, Weaver added. The firm's analysts picked several stocks whose earnings reports are expected to be positive catalysts that drive meaningful positive upside. Here are five of them: Morgan Stanley said it expects positive full-year 2022 topline and earnings guidance from Hostess and sees several positive catalysts in the near term for the stock. This includes better-than-expected fourth-quarter results, the announcement of a new CFO and the company's analyst day in March. The firm's price target on Hostess is $24, implying about 21% upside from its closing price Wednesday. Cloud security company F5 is also a top pick for Morgan Stanley. The firm is optimistic about F5's continued growth in software adoption and strength in hardware sales, the note said. Raymond James , investment bank Houlihan Lokey and industrial supply company W.W. Grainger are also among its favorites.
Hostess Twinkies and CupCakes are displayed on a store shelf on May 17, 2021 in San Anselmo, California. Justin Sullivan | Getty Images | 2022-01-20T00:00:00 |
4,535 | https://www.cnbc.com/2015/01/26/midday-movers-ibm-generac-mattel-more.html | GWW | W. W. Grainger | Midday movers: IBM, Generac, Mattel & more | Take a look at some of Monday's midday movers:
IBM - The technology firm edged higher as it dismissed a report by Forbes magazine that it would cut about 26 percent of its workforce.
Generac - The maker of home generators rose as a large snowstorm approached the East Cost. American Airlines Group , JetBlue Airways and Delta Air Lines declined amid thousands of cancelled flights.
Mattel - The toy maker dropped after removing its chairman and CEO and warning sales fell 6 percent in the holiday quarter.
| 2015-01-26T00:00:00 |
4,536 | https://www.cnbc.com/2022/05/10/investing-club-wynn-resorts-strong-quarter-in-vegas-boston-was-wiped-out-by-covid-restrictions-in-macao.html | WYNN | Wynn Resorts | Wynn Resorts' strong quarter in Vegas, Boston was wiped out by Covid restrictions in Macao | Wynn Resorts (WYNN) reported weaker-than-expected first-quarter results after the closing bell Tuesday. Operating revenue of $953.3 million missed expectations of $986 million, according to FactSet. An adjusted loss of $1.21 was slightly worse than estimates of $1.17 loss. Bottom line Overall, no real surprises here: Club holding Wynn Resorts' properties in the United States continued their run of strong results at impressive margins with upbeat commentary for the second quarter. Macao, however, remained under pressure due to Covid restrictions that the market knows all too well by now. That's why shares were down slight in after-hours trading after touching a 52-week low during the regular session. The stock has been cut in half in the past 12 months. The biggest question for Wynn continues to be about China's unsustainable zero Covid policy. Previously, we thought there was a good chance China would loosen its tough stance after the 2022 Winter Olympics. This view was shared by many, and it's one reason why this stock outperformed the market through the first two months of the year. As it turns out, the opposite has happened. China is currently back to its old ways, doubling down on enforcing draconian lockdowns to slow the spread of the coronavirus. We do not know if this lockdown will be the last but China's stance on Covid, which is crushing its economy in the process, continues to delay the recovery of Macao, hurting the stock of Wynn. Macao is a Chinese special administrative region. We continue to believe in the strength of Wynn's best in show properties in Vegas and Boston. We see the Macao recovery as an inevitability. While optimistic about the pent-up demand, we do acknowledge that it's getting tougher to stick with this stock as the expected 2021 recovery was pushed to 2022, and now it may be 2023. Q1 results by property Macao At Wynn Palace, quarterly operating revenue fell 31% year over year to $163.3 million, missing estimates of $211 million. Adjusted Property EBITDA — which stands for earnings before interest, taxes, depreciation, and amortization — was actually a loss of nearly $1 million, down from a profit of $27.4 million last year and a miss versus estimates for a profit of $18 million. At Wynn Macao, operating revenue was $135.1 million, a decline of 25% from last year and a miss versus estimates of $155 million. Adjusted Property EBITDA came in at a loss of $4.7 million, down from a $16.6 million profit last year and a miss versus estimates of a $7 million profit. To no one's surprise, the results were challenged due to restrictions on traveling and lockdowns in China. Despite the uncertain timing of when Macao will fully reopen, management remains very optimistic about the region's future due in part to pent up demand. Management cited that in periods where the market is accessible, they see demand "return very rapidly" with hotel occupancies levels in the 65% to 75% range during portions of the recent May holiday. Vegas Quarterly operating revenue from Vegas Operations rose nearly 60% year over year to $441.2 million, beating estimates of $426 million. Adjusted Property EBITDA was a profit of $159.4 million, up from $28.1 million last year and better than estimates of a $143 million profit. This result was also higher than pre-Covid levels despite a softer January due to the impact of the spread of the omicron variant. Wynn's Vegas properties are clearly benefiting from pent-up demand and permanent costs savings. Management said on the call that strength seen in March has continued into the second quarter and their forward bookings show no signs of a slowdown. Encore Boston Harbor Quarterly operating revenue from this property rose nearly 32% year over year to 190.8 million, matching estimates of $191 million. Adjusted Property EBITDA was a profit of $55.3 million, up from $30.4 million last year but a hair below estimates for a $57 million profit. It was an uneven quarter due to the impact of omicron, but EBITDA improved progressively month over month with March levels approximately 60% higher than January. Management said on the call that this positive momentum has continued into the second quarter with April EBITDA already exceeding the strong March. Wynn Interactive Wynn's digital gaming platform delivered strong results. Quarterly net gaming revenue increased 23% sequentially despite a sharp decline in user acquisition spend. As a reminder, on their third quarter of 2021 earnings call, management announced a pivot to its digital gaming strategy. While others in the industry have spent irrational amounts of money on marketing, Wynn has stayed focused on opportunities where they believe they can achieve a positive return on investment (ROI). This change in customer acquisition strategy has led to a meaningful reduction in EBITDA burn levels. This strategy is paying off: Wynn Interactive continues to improve its overall EBITDA burn rate, which was $31.5 million in the quarter compared to $79.4 million in the fourth quarter and $104 million in the third quarter of 2021. On a side note: Management sees the passage of a sports betting bill in Massachusetts as an important catalyst for the product. They see an advantage over competitors in the commonwealth through their brick and mortar presence. (Jim Cramer's Charitable Trust is long WYNN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Wynn Las Vegas remains closed as a result of the statewide shutdown due to the continuing spread of the coronavirus on April 27, 2020 in Las Vegas, Nevada. Ethan Miller | Getty Images | 2022-05-10T00:00:00 |
4,537 | https://www.cnbc.com/2022/09/15/stocks-making-the-biggest-moves-midday-netflix-adobe-wynn-resorts-humana-and-more-.html | WYNN | Wynn Resorts | Stocks making the biggest moves midday: Netflix, Adobe, Wynn Resorts, Humana and more | Check out the companies making headlines in midday trading.
Netflix — The streaming stock gained 7% after Evercore ISI upgraded Netflix to an outperform rating and said its stock could rally more than 30% as it rolls out an ad-supported service and cracks down on password sharing.
Adobe — Adobe shares slumped 15% on news that it's acquiring a design software firm known as Figma for roughly $20 billion in cash and stock. The company beat earnings estimates for the period but shares mixed guidance for the current quarter.
Oracle - Shares of the software company dropped another 2%, extending a 5% sell-off from the previous session on weak earnings. Oracle's earnings came in at $1.03 per share, adjusted, compared to the $1.07 per share expected by analysts, according to Refinitiv. Its revenue met expectations, however.
Rail stocks — Select rail stocks moved higher following the announcement of a tentative, last-minute deal between the railroad companies and the unions that represent their workers. Union Pacific and Norfolk Southern rose 1.6% and just below 1%, respectively. CSX Corp . was down more than 2% despite ticking up in extended trading before the bell.
Wynn Resorts — Shares jumped 8% after Credit Suisse upgraded Wynn Resorts to outperform, saying the casino stock could nearly double after its hotel convention center expansion in Las Vegas.
'Buy now, pay later' stocks — Shares of major "buy now, pay later" stocks slipped on the back of a report from the Consumer Financial Protection Bureau calling for more oversight into the sector. PayPal and Affirm Holdings both declined less than 1%, while Block 's stock added nearly 2%.
Fisker — The electric vehicle maker's share price jumped 3.6% after Needham initiated coverage of Fisker with a buy rating as demand for electric vehicles accelerates. Tesla shares rose about 1% amid an upgrade to a hold rating from underperform.
Humana — Humana shares climbed nearly 7% after upping its earnings guidance for the fiscal year. The health insurance company also announced a new addition to its board of directors.
Nordstrom — The department store stock gained 2% after Jefferies upgraded it to a buy rating. The firm said in a note to clients that Nordstrom is better positioned than some of its peers in a downturn.
Deckers Outdoors — Deckers Outdoor's stock edged more than 2% higher after Wedbush upgraded the footwear company to outperform, saying in a note to clients that it's well situated to ride out a difficult retail environment.
Danaher — Shares of the medical technology company were up about 1% a day after the announcement of spin-off plans for its environmental and applied sciences unit.
NextEra Energy — NextEra Energy ticked just shy of 3% lower the day after the alternative energy company said it plans to sell $2 billion in equity units.
Arconic Corp — Shares of the manufacturing company tumbled nearly 15% after Arconic cut its full-year forecast amid higher energy costs in Europe and declining demand.
Duckhorn Portfolio — Shares of the winemaker dropped 8% after being downgraded by JPMorgan to neutral from overweight. JPMorgan said it still likes Duckhorn, calling the company's long-term and operational performance track record since its initial public offering "impressive." However, the firm is concerned Duckhorn's guidance could disappoint.
— CNBC's Alex Harring, Michelle Fox, Yun Li and Sarah Min contributed reporting. | 2022-09-15T00:00:00 |
4,538 | https://www.cnbc.com/2021/11/29/investing-club-you-need-to-be-patient-on-wynn-resorts-as-the-stock-falls.html | WYNN | Wynn Resorts | You need to be patient on Wynn Resorts as the stock falls | (This article was sent first to members of the CNBC Investing Club with Jim Cramer. To get the real-time updates in your inbox, subscribe here .) Shares of Wynn Resorts (WYNN) , along with other Macao casino operators, are falling Monday, and the declines are not all about concerns related to the omicron variant. The group is sinking after the CEO of Suncity, the region's largest junket operator, and ten other people were arrested over the weekend in an investigation into an illegal gambling and money-laundering syndicate. Junket operators work with the casinos to bring in high-roller, VIP customers and are also responsible for extending credit and collecting debts. The news is certainly a blow to a Macao gaming industry that was already grappling with headwinds stemming from increased regulatory scrutiny and the uneven recovery from the pandemic. But it's important to note that the Macao gaming industry isn't as reliant on VIP customers as it once was. Junkets not as important anymore In the back half of 2019, junkets represented less than 15% of Wynn Resorts' EBITDA, and Suncity was about one-third of the junket business, according to the company. This is a manageable exposure, in our view. Wynn's junket exposure may continue to fall, as the company executes on a strategy that favors the higher-margin premium mass market over VIPs. This shift was discussed on the company's third-quarter earnings call. "So over the last three years, we've been pivoting luxury assets that were formally taken up by junket operators. And we've been opening them up for premium mass, whether it's villas in our towers, high-end fleets, and general gaming spaces. And we are fortunate to have the best assets and best service in market. So the pivot is very, very straight forward for us," Ian Coughlan, President & Executive Director of Wynn Macau Limited, explained on the conference call. While the news may have more of an impact on sentiment in Macao than earnings, you can't forget about Wynn Resorts' domestic interests at the current price level. In a November 9th note by Deutsche Bank, the analysts (who have a $131 price target on WYNN) said the value of the company's domestic portfolio was worth about $70 per share on a sum-of-the-parts basis, while the value of Wynn's stake in Macao was worth about $61 per share. We think the value of Wynn's domestic business is rock solid. The company's properties in Las Vegas and Boston are currently delivering record amounts of adjusted EBITDA, and Wynn Interactive is pivoting its business model towards a more targeted ROI-focused strategy. If Deutsche Bank is accurate in their view in that the domestic business is worth $70 per, then we can make the argument that the Macao business has been discounted to a point where there is not much room left for further downside. Bottom line: Patience required We may not be adding to our position on today's declines, but we are not selling either due to our belief that a lot of bad news about Macao is in the stock with it trading in the low $80s. A lot of patience and a stomach for volatility is still required due to ongoing COVID-19 related restrictions in Macao, but we are willing to wait this one out thanks to our long-term investment horizon. The CNBC Investing Club is now the official home to my Charitable Trust. It's the place where you can see every move we make for the portfolio and get my market insight before anyone else. The Charitable Trust and my writings are no longer affiliated with Action Alerts Plus in any way. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Typically, Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If the trade alert is sent pre-market, Jim waits 5 minutes after the market opens before executing the trade. If the trade alert is issued with less than 45 minutes in the trading day, Jim executes the trade 5 minutes before the market closes. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. See here for the investing disclaimer . (Jim Cramer's Charitable Trust is long WYNN.)
People use mobile devices to take photographs of a fountain outside the Wynn Macau casino resort, operated by Wynn Resorts Ltd., in Macau, China, on Tuesday, Jan. 30, 2018. Billy H.C. Kwok | Bloomberg | Getty Images | 2021-11-29T00:00:00 |
4,539 | https://www.cnbc.com/2022/07/11/stocks-making-the-biggest-moves-midday-twitter-wynn-resorts-lululemon-nio-and-more.html | WYNN | Wynn Resorts | Stocks making the biggest moves midday: Twitter, Wynn Resorts, Lululemon, Nio and more | Check out the companies making headlines in midday trading.
Twitter — Shares of the social media company dropped more than 8% after Elon Musk walked away from his $44 billion deal to buy Twitter. Musk alleged that Twitter under-reported the number of spam bots on the platform. The two parties are likely set for a protracted court battle, and Musk could also be faced with paying a $1 billion breakup fee.
Casino stocks — Shares of Wynn Resorts and Las Vegas Sands dove 9.4% and 8.8%, respectively, after Macao ushered in a week-long shutdown as it grapples with a Covid-19 outbreak. Monday marked the first time in more than two years that Macao has shut down all of its casinos.
Lululemon, Under Armour — Shares of the activewear retailers were lower following downgrades by Jefferies. Lululemon fell 4% after the firm lowered its rating on the stock to underperform from hold, citing "rising competition." Under Armour declined by some 4.7%. Jefferies downgraded it to neutral from buy, saying fundamentals are "lagging."
Meta Platforms — The social media company's stock dropped 4.2% after Needham downgraded it to underperform from hold. The firm pointed to Meta's heavy investments into the metaverse, which may take too long to pay off.
Uber — The ridesharing stock fell more than 4% following a report by the International Consortium of Investigative Journalists that said Uber has lobbied extensively to relax labor and tax laws and used "stealth technology" to block government scrutiny. The company issued a statement acknowledging prior mistakes and emphasizing Uber "is a different company today."
Nio — Nio shares slid 8.4% as China appears to be battling another wave of Covid-19. Reuters reported that multiple Chinese cities have imposed new health restrictions. The automaker also announced that it has formed a committee to investigate allegations made against Nio by a short-seller last month.
Amazon — The ecommerce giant lost 2.3% after Bloomberg reported that the number of U.S. Prime customers stalled in the first half of the year, possibly in part because of the $20 membership price hike that took place in February. Amazon had 172 million members on June 30, level with six months prior, the report said, citing Consumer Intelligence Research Partners.
Upstart — Upstart jumped as much as 2.6% Monday as investors looked to buy the dip. The company's stock took a hit last week after it announced it would not meet its already-reduced financial targets for the second quarter and JMP Securities downgraded it. Shares are down more than 80% this year.
— CNBC's Yun Li, Sarah Min, Samantha Subin, Carmen Reinicke and Jesse Pound contributed reporting. | 2022-07-11T00:00:00 |
4,540 | https://www.cnbc.com/2023/11/09/the-market-unfairly-docks-wynn-but-we-see-a-buying-opportunity-.html | WYNN | Wynn Resorts | The market unfairly docks Wynn after a strong quarter. But we see a buying opportunity | Wynn Resorts (WYNN) posted a better-than-expected third quarter on Thursday, with both revenues and profits bolstered by the continued strength of its Las Vegas operations and the post-Covid rebound in Chinese gambling hub Macao. But investor concerns over an unevenness to the Macao recovery sparked selling in afterhours trading, sending Wynn stock down more than 5% — and creating a potential buying opportunity. Operating revenue for the three months ended Sept. 30 increased 88% year-over-year, to $1.67 billion, beating analysts' expectations of $1.59 billion, according to estimates compiled by LSEG. Adjusted earnings-per-share (EPS) came in at 99 cents, outpacing the 75-cent consensus estimate, LSEG data showed. Adjusted property earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) — Wynn's key metric for profitability — climbed 206% year-over-year, to $530.4 million, well ahead of analysts' predictions of $488 million, according to FactSet. Bottom line Overall, Wynn delivered strong third-quarter results. Its two Macao properties are now generating 85% of 2019 levels and on a path toward full recovery, even if Wynn Macao is taking longer to recover than Wynn Palace. But we remain confident that management has the right playbook to stem any potential market-share loss at its one struggling property in China. Meanwhile, Wynn's Las Vegas property remains on fire, tracking to earn about double this year than what it did in 2019, with no signs of a let-up from its high-end customers. The Boston property showed some softness and could be topping out, but we're encouraged by management's plans to expand its footprint in the city in the near future. At the same time, the market is likely overlooking the not-yet-operational Wynn Al Marjan project in the United Arab Emirates, which broke ground this year. The company continues to see this as an exciting opportunity. Despite these positives, Thursday evening's sell-off brought Wynn stock to about $40 below the level at which was trading in 2019. While we understand how macroeconomic concerns about China are weighing on the stock, the company's properties in the country continue to perform — and at a higher margin than in prior years. With the stock trading at about 10-times its 2023 enterprise value to EBITDAR, a roughly two-times discount to its 2019 multiple, we think the stock is too cheap at these prices. And our plan is to seize the opportunity to add to our Wynn position on Friday morning. Quarterly commentary Macao The recovery at Wynn's properties in China's special administrative region of Macao continued with a total EBITDAR of $255 million, representing 85% of Wynn's pre-Covid levels in the casino hub. However, the company's two properties in the region – Wynn Palace and Wynn Macao – are not enjoying an equal pace of recovery. The results at Wynn Palace were robust and the property is firmly on track to return to pre-pandemic profit levels. In 2019, Wynn Palace generated $730 million in EBITDAR. The $177 million in EBITDAR the property generated last quarter at an annualized rate results in roughly $708 million, showing Wynn is back on track. At the same time, the third-quarter margins reported Thursday came in higher than that of 2019, a sign of strong leverage. Wynn Palace last quarter generated $177 million in EBITDAR , which is more than the $162 million earned in 2019 despite less operating revenue. Unfortunately, the recovery at Wynn Macao has been more checkered. That's partly a result of closures related to renovations. There's also the structural issue of Wynn relying too heavily on press junket and VIP customers at the expense of premium mass customers, who are now dominating the gambling space in Macao. In the third quarter of 2023, Wynn Macao generated about $78 million in profits, which when annualized is only $312 million. In 2019, the property earned a total of $649 million in profits, including $139 million in the third quarter. The weakness at Wynn Macao has the market concerned Thursday about a loss of market share. But CEO Craig Billings argued on the company's post-earnings conference call that Wynn can hold share without junkets at a structurally higher margin due to the costs taken out during the pandemic. Las Vegas Even against a tough year-over-year comparison, EBITDAR at Wynn's Las Vegas property increased 12%, to a new third-quarter record of about $220 million. Management also noted that its top-line trends in Las Vegas have continued to be strong through October, with "healthy" gross gaming revenue and strong RevPar (revenue per available room) growth. The company continues to point to high-profile events like the upcoming Formula 1 Grand Prix and NFL Superbowl as part of a pipeline generating strong forward group demand. For the former event, the company said it expects to exceed its all-time hotel revenue record by about 50% for the three-day period beginning Nov. 17. Encore Boston Harbor Wynn's Boston property proved relatively stable, even if disappointing with EBITDAR of $60 million coming in about 1% lower on the year prior. Wynn blamed some of the decline to construction of a major tunnel near the property, but the company said it's feeling the same macroeconomic pressures as other regional operators. Still, Wynn said its Boston business accelerated in October with month-over-month growth in slot handle, table drop and strong growth in RevPar. Wynn Interactive The company continues to take a disciplined cost approach to its digital gaming platform, focusing only on U.S. states where it has a physical presence. As a result, Wynn saw its "burn rate," or losses, improve sequentially to $5 million, down from $15 million in the second quarter. Balance sheet Wynn said Thursday it had repurchased $56.2 million worth of shares in the third quarter, at an average price $94.11 each. It's a small figure but worth noting given the company did not buy back any stock in the second quarter. When a company that does not regularly repurchase stock makes such a move, it's generally a sign of confidence in the future and a dislocation in the market. In this case, management explained tonight that it will buy back stock when it's "mispriced as we believe it has been." Wynn announced the resumption of a dividend earlier this year, paying out 25 cents per share quarterly. (Jim Cramer's Charitable Trust is long WYNN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
The Wynn Resorts logo stands illuminated as people sit by the fountain at the Wynn resort in Macao, China. Pual Yeung | Bloomberg | Getty Images | 2023-11-09T00:00:00 |
4,541 | https://www.cnbc.com/2022/04/01/stocks-making-the-biggest-moves-midday-tellurian-wynn-resorts-snap-walgreens-and-more.html | WYNN | Wynn Resorts | Stocks making the biggest moves midday: Tellurian, Wynn Resorts, Snap, Walgreens and more | Water from a fountain sprays into the air in front of signage for the Wynn Macau casino resort.
Check out the companies making headlines in midday trading Friday:
Tellurian — The liquified natural gas company (LNG) surged 19.4% after Credit Suisse upgraded Tellurian to outperform, saying LNG prices are high and may continue to be for the foreseeable future.
Wynn Resorts — Shares of the casino and resort operator's shares advanced 1.1% after an upgrade from Citi to buy from neutral. The bank cited increasing clarity around regulation and Wynn's licenses in Macao, along with its attractive valuation.
GameStop — GameStop shares gained more than 4% before inching into red after the company said it will seek stockholder approval at its next shareholder meeting to implement a stock split. The company is proposing an increase to 1 billion shares from 300 million.
BlackBerry — BlackBerry shares fell 9.5% after the communications software company reported disappointing cybersecurity revenues for the previous quarter. The company said Thursday that revenues for its cyber came in at $122 million, below a StreetAccount estimate of $126 million.
Snap — The social media giant's shares rose 3.8% after Piper Sandler reiterated its overweight rating on Snap, saying it sees a "compelling pocket of user growth opportunity" in Mexico, Brazil, Italy and Spain.
Walgreens Boots Alliance — Walgreens dipped 2% after Baird downgraded the stock to neutral from outperform and cuts it price target on the drug store chain. The downgrade comes after the company reported second-quarter earnings that beat consensus estimates, but said it will take time for its health-care investments to pay-off. Investors are also concerned that Walgreens is losing momentum from pandemic traffic.
Chinese EV makers — Chinese electric vehicle makers' shares were higher after reporting a March surge in car deliveries despite a rise in Covid cases and raw materials costs. Shares of Li Auto and Xpeng each increased about 5%, while Nio added 4%.
Dell — Dell shares fell 2.7% after Goldman Sachs downgraded the computer builder to neutral from buy amid mounting pressure on the PC market. Dell "remains inexpensive compared to its peers, but we see increasing fundamental headwinds hindering this value unlock," the firm said.
Qualcomm — Shares of the chip stock fell 3.8% after JPMorgan removed Qualcomm from its Analyst Focus list for the month of April. The Wall Street firm cited "near-term challenges relative to consumer spending."
— CNBC's Maggie Fitzgerald, Sarah Min, Samantha Subin and Michael Bloom contributed reporting | 2022-04-01T00:00:00 |
4,542 | https://www.cnbc.com/2022/02/15/stocks-making-the-biggest-moves-after-hours-airbnb-roblox-wynn-resorts-more.html | WYNN | Wynn Resorts | Stocks making the biggest moves after-hours: Airbnb, Roblox, Wynn Resorts & more | The Airbnb logo is seen on a little mini pyramid under the glass Pyramid of the Louvre museum in Paris, France, March 12, 2019.
Check out the companies making headlines in after-hours trading:
Airbnb — Shares of the property rental company advanced 5% during extended trading Tuesday following the company's fourth-quarter results. Airbnb earned 8 cents during the period on $1.53 billion in revenue. Analysts surveyed by Refinitiv were expecting the company to earn 3 cents on $1.46 billion in sales. The company also gave strong guidance.
Wynn Resorts — The hotel company's stock slid more than 2% after Wynn missed earnings estimates for the fourth quarter. Wynn lost $1.37 per share excluding items, which was a wider loss than analysts had been expecting. Revenue, however, topped expectations. The company reported sales of $1.05 billion, compared to the $994 million analysts surveyed by Refinitiv were expecting.
Roblox — Shares of the gaming company dropped more than 12% after Roblox's fourth-quarter results missed expectations on the top and bottom line. The company lost 25 cents per share during the period and reported sales of $770 million. Wall Street was expecting the company to lose 13 cents per share on $772 million in revenue, according to estimates from Refintiv.
Denny's — Shares of Denny's dropped 10% after the company's fourth-quarter results disappointed Wall Street. Denny's earned 16 cents per share on $107.6 million in revenue. Analysts surveyed by Refinitiv were expecting the company to earn 17 cents on $111.8 million in revenue. | 2022-02-15T00:00:00 |
4,543 | https://www.cnbc.com/2022/01/14/stocks-making-the-biggest-moves-midday-jpmorgan-wynn-resorts-and-more.html | WYNN | Wynn Resorts | Stocks making the biggest moves midday: JPMorgan, Wynn Resorts, Sherwin-Williams, Disney and more | Check out the companies making headlines in midday trading.
Casino stocks — Las Vegas Sands and Wynn Resorts saw their shares jump 14.1% and 8.6%, respectively, after the Macau government said the number of casinos allowed to operate there would remain limited at six. Licenses of the current operators – which include Wynn Macau, Sands China and MGM China – are set to expire this year. Shares of MGM Resorts slipped slightly.
JPMorgan Chase — Shares of the major bank fell 6.1%, dragging down the major equity averages. The sell-off came after the firm posted its smallest quarterly earnings beat in nearly two years and the lender's chief financial officer lowered guidance on companywide returns. CFO Jeremy Barnum said on a conference call that management expected "headwinds" of higher expenses and moderating Wall Street revenue.
Wells Fargo — The bank stock jumped 3.6% after the company posted quarterly revenue that exceeded analysts' expectations and a significant jump in profit. Results were helped by a $875 million reserve release that the bank had set aside during the pandemic to safeguard against widespread loan losses.
Citigroup — Citi shares lost 1.2% despite the company reporting a beat on quarterly earnings and revenue. However, the bank also reported net income for the latest quarter dropped 26% to $3.2 billion, citing an increase in expenses.
BlackRock — Shares of the asset manager fell 2.1% after the company reported a quarterly revenue miss of $5.11 billion, versus expectations of $5.16 billion, according to FactSet's StreetAccount. The company beat earnings estimates, however, and grew its assets under management to above $10 trillion.
Monster Beverage — Shares of Monster Beverage fell 4.7% a day after the company revealed plans to acquire CANarchy Craft Brewery Collective, a craft beer and hard seltzer company, for $330 million in cash. The deal would bring brands such as Jai Alai IPA, Florida Man IPA, Wild Basin Hard Seltzer and others to the Monster beverage portfolio.
Boston Beer Company — The alcoholic beverage company's shares slid 8.1% a day after the brewer cut its annual earnings outlook, citing high costs related to supply chain issues and waning growth of its hard seltzer brand Truly.
Walt Disney Co — Disney shares dropped 2.2% after Guggenheim downgraded the stock to neutral from buy, citing slowing profit growth in streaming and parks. The firm also cut its price target on Disney to $165 from $205.
Sherwin-Williams — The paint company saw its shares fall 2.8% after it cut its full-year forecast, citing supply chain issues it expects will persist through the current quarter. Sherwin-Williams also said demand is still strong in most of its end markets.
Domino's Pizza — Shares of Domino's Pizza slid 1.7% after Morgan Stanley downgraded the restaurant chain stock to an equal weight rating. "DPZ still embodies many of the characteristics of a great long term growth compounder, we see limited justification for further multiple expansion, especially as DPZ's sales growth will likely being to normalize after experiencing substantial Covid (and stimulus) benefits in 20/21," Morgan Stanley said.
— CNBC's Yun Li and Hannah Miao contributed reporting | 2022-01-14T00:00:00 |
4,544 | https://www.cnbc.com/2024/01/05/biggest-stocks-to-watch-on-wall-street-friday.html | WYNN | Wynn Resorts | Here are Friday's biggest analyst calls: Nvidia, Apple, Sunrun, Wynn, Snowflake, Carnival, Costco and more | Here are Friday's biggest calls on Wall Street: Bernstein initiates Howmet Aerospace as outperform Bernstein said it's bullish on shares of the aerospace company. "We initiate on Howmet Aerospace ( HWM) at Outperform with a target of $67. We see more upside for Howmet even after outperformance by the stock in 2023." Bank of America reiterates Nvidia as buy Bank of America said it's standing by its buy rating on the stock. "In our view NVDA's solid FCF generation creates optionality in addressing these concerns, and in helping to expand its trading multiple back to its historical median 35x-40x." Stifel upgrades Elanco to buy from hold Stifel said in its upgrade of Elanco that the "party is just getting started" for the animal health company. "In fact, we believe the party is just getting started, and should last several years." Jefferies initiates IBM as hold Jefferies said "upside is capped" for IBM shares. "However, IBM is growing revenue below its software peers while operating at lower margins." UBS upgrades Boot Barn to buy from neutral UBS said the stock is underappreciated. " BOOT is a growth company but we think the market is valuing it otherwise. We think this changes by EOY [end of year]." JPMorgan upgrades Kymera to overweight from neutral JPMorgan said the biotech company has "best in class" pipeline potential. "Notwithstanding their early stage, we come away from Kymera's R & D Day highly encouraged by its pipeline expansion initiatives, offering best-in-class potential with oral medicines across a wide breadth of inflammatory disease indication." RBC initiates Snowflake as outperform RBC said it's bullish on the long-term growth opportunity. "We initiate on SNOW with an OP rating and $230 PT as we are bullish on their LT growth opportunity and think upside to consensus estimates seems likely." KBW reiterates Coinbase as underperform KBW said an SEC approval of a spot bitcoin exchange-traded fund is too uncertain for Coinbase shares. "Implications for COIN : Direct Revenue Opportunity from Spot ETF Approval is Modest, but Indirect Impacts Are Harder to Measure." Stifel names Wynn, Royal Caribbean and Bowlero top picks Stifel said owning these three stocks will allow investors to "to capture the Macau/LV Strip/cruise upside opportunity." "Our top three ideas ( > $2B market cap) for 2024 are Wynn Resorts, Limited (WYNN), Royal Caribbean Group ( RCL ), and Bowlero Corporation (BOWL)." Bank of America reiterates Sunrun as buy Bank of America said it's standing by shares of the solar company. "After doubling since early November on growth optimism, the next bogey will likely be read-throughs to RUN' s sustainable cash generation target of $200-$500Mn by year-end 2024, with contributions from adders that could accelerate tender of convertibles." Morgan Stanley reiterates Apple as overweight Morgan Stanley said it's standing by Apple after survey checks show App Store growth. "Dec Q App Store growth (+10% Y/Y) outpaced our forecast by 6 pts and implies 160bps of upside vs. our Services forecast." UBS names Boeing a top pick UBS said it likes Boeing shares in 2024. "see a 4Q FCF beat and in-line 2024 guidance of $5-7bn, the potential for a positive update on China delivery timing, and further discussion of MAX rates above 50/mo reflecting strong demand." BTIG downgrades PayPal to neutral from buy BTIG said in its downgrade of the stock that it's concerned about consistent revenue growth. "Following our recent assumption of coverage of PYPL, we are downgrading the stock to Neutral as we see the process of returning the company to consistent and profitable revenue growth as a multiyear initiative, rather than a FY24 story." Needham adds On Holding to the conviction list Needham said it's bullish on the shoe company. "We highlight ONON as our Top Pick for '24 and add it to the Needham Conviction List." Deutsche Bank reiterates Costco as buy Deutsche Bank said its survey checks show Costco remains "best in class." "61% of our respondents with club memberships are members of COST. In addition, the retailer is often the second choice among members with more than one membership." Bank of America initiates Knife River as buy Bank of America said the construction materials company is undervalued. "While KNF's shares are up 70% since the spin-off, it continues to trade at a discount to peers/recent transaction in the space." Jefferies downgrades Palantir to underperform from hold Jefferies said the stock is "overhyped AI." " PLTR – Overhyped on AI, Downgrade to Underperform." Barclays upgrades Leidos Holdings to overweight from equal weight Barclays said it sees accelerating growth for the engineering company. "Trading near its historical trough discount to peers, we expect recent bookings strength along with CEO change and reorganization to reaccelerate growth." Stephens reiterates Chipotle as overweight Stephens said the stock is a top pick in 2024. "We are reiterating our favorable stance on Chipotle Mexican Grill and naming CMG shares as our Best Idea for 2024." Bank of America names Salesforce, Microsoft and ServiceNow as top picks Bank of America said in a note Friday that Salesforce, Microsoft and ServiceNow were top ideas in 2024. " CRM – Enduring mid-teen revenue growth and margin expansion from sales productivity efforts. … MSFT – AI expected to drive incremental growth in core Azure and Office franchises, ongoing margin/FCF growth from scale. … NOW – Best-in-class growth likely to move higher with AI and ongoing consolidation of the large IT & custom apps markets." Bank of America names Exxon and Chevron top picks Bank of America said it likes the oil giants in 2024. "With tailwinds from recent M & A we see 'big oil' with some of the greatest risk adj value, led by XOM & CVX." Needham names DoorDash a top pick Needham said the stock is a top idea in 2024. " DASH has performed well post pandemic with frequency including DashPass adoption driving bookings growth." Wells Fargo upgrades Carnival to overweight from equal weight Wells Fargo said the cruise company is a favorite idea in 2024. " CCL : demand solid w/ 2/3 FY24 business on books, material 2x deleveraging in FY24, and we like here on its 10% pullback post F4Q report." Oppenheimer downgrades McDonald's to perform from outperform Oppenheimer said it sees a lack of catalysts for McDonald's shares right now. "Following outsized double-digit EPS revisions in '23, we are unable to identify another round of catalysts to the consensus model." UBS reiterates CrowdStrike as buy UBS said the cyber company is a top pick. "We are reiterating our Buy rating and increasing our PT to $300, and view that CRWD as still one of the best positioned stocks in cyber." | 2024-01-05T00:00:00 |
4,545 | https://www.cnbc.com/2021/11/09/wynn-resorts-ceo-matt-maddox-stepping-down-craig-billings-taking-over.html | WYNN | Wynn Resorts | Wynn Resorts CEO Matt Maddox stepping down, Craig Billings will replace him | Wynn Resorts CEO Matt Maddox, president and chief executive officer of Wynn Resorts Ltd., speaks during an opening day event for the company's Encore Boston Harbor casino in Everett, Massachusetts, June 23, 2019.
Wynn Resorts Chief Executive Officer Matt Maddox will step down at the end of January and hand over the reins to executive Craig Billings, the casino operator said on Tuesday.
Billings, who joined Wynn Resorts as its finance chief in 2017, most recently served as the head of Wynn Interactive, the company's 72%-owned unit housing its U.S. online sports betting and gaming business.
Billings will also become a board member.
Maddox took the helm at Wynn in February 2018 after founder Steve Wynn resigned in the wake of sexual misconduct allegations.
"This has not been an easy decision. I am leaving a company that I love and that's full of people I admire," Maddox said.
"But I believe now is the right time for me and for the business." | 2021-11-09T00:00:00 |
4,546 | https://www.cnbc.com/2021/10/17/americans-heating-bills-could-surge-this-winter-what-that-means-for-utility-stocks.html | XEL | Xcel Energy | Americans' heating bills could surge this winter. What that means for utility stocks | The spike in natural gas prices may lead to higher power bills for Americans this winter, but that is not necessarily a good thing for utilities companies, according to Wall Street analysts. European natural gas prices surged over the past month as countries across the Atlantic grappled with a supply shortage. The U.S. market has seen a smaller, but still substantial, rise, with natural gas futures climbing from $4.38 per one million British Thermal Units at the end of August to north of $6 earlier this month. The good news for customers is that utilities often hedge their power source costs, so a scary spike in natural gas prices will likely only impact bills if it is sustained, said Sophie Karp, an equity research analyst at KeyBanc Capital Markets. Still, the U.S. Energy Information Administration said on Wednesday that it expected U.S. households to pay 30% more for natural gas this year than in 2020. The increases for propane and heating oil were even higher. And, given the way that utility bills work in the United States, that will hit customers directly. "For regulated utilities commodity costs are a 'pass-through' to customers without a profit margin but there are indirect implications. Higher bills reduces the bill headroom or 'wallet share' available for utilities to invest in rate base that generates earnings," Bank of America analyst Julien Dumoulin-Smith said in an Oct. 5 note. The damage to utility stocks, on the other hand, is more indirect. When prices rise, the higher costs can anger customers and politicians and "crowd out" the fundraising need to fund infrastructure improvements, which need to be approved by regulators, Karp said. "You can only push the envelope so far. And if the customer bills begin to increase significantly faster than historical norm or than inflation … something will have to give," Karp said. Utilities, which often pay healthy dividends, can also be threatened by rising interest rates. Higher rates can lead to higher costs that again put upward pressure on customer bills, Karp said, while also making the dividends less attractive. So, what should investors who want to buy utility stocks examine in picking companies? Bank of America suggested looking for companies with low customer bills and high approval ratings, calling neutral-rated Xcel Energy at "clear standout" in this regard. Looking for utilities with varied energy sources, and therefore less reliance on natural gas, could also be a smart strategy, the firm said. On the other hand, utilities with high customer bills relative to their customer populations could struggle. Bank of America highlighted Eversource Energy as a utility with high cost and low customer satisfaction. Karp said geography also plays a role. "Northeast utilities would be in the toughest spot because the northeast historically has higher prices, and it's further away from all the pipelines and the producing regions, so the gas differentials are pretty wide going into New England," Karp said. KeyBanc upgraded CenterPoint Energy , whose customer base includes parts of Louisiana and Texas, to overweight last month. The overall outlook for utility stock is mixed among Wall Street pros. Here are the stocks with the highest approval rating among analysts, according to FactSet. -CNBC's Michael Bloom contributed to this report.
Steam rises from the cooling towers of the coal-fired power plant at Duke Energy's Crystal River Energy Complex in Crystal River, Florida, U.S., March 26, 2021. Dane Rhys | Reuters | 2021-10-17T00:00:00 |
4,547 | https://www.cnbc.com/2022/04/23/a-nutritionist-shares-the-best-grocery-foods-to-boost-mood-brain-energy-happiness.html | XEL | Xcel Energy | A nutritionist shares the 35 best foods to boost mood and brain energy levels: 'Put these on your grocery list' | Food and mood are so intricately connected that they've inspired a new area of brain study: Nutritional psychiatry, which examines how what we eat impacts how we feel. As a dietitian and nutritionist who has researched and experienced this connection firsthand, I find it infinitely fascinating that we can empower ourselves to feel partly — or sometimes entirely — better based on our dietary habits. The foods you eat can make or break everything from your work and productivity to your mental state and physical health. To boost your mood and brain energy levels, put these 35 foods on your grocery list:
Complex carbs
1. Pumpkin seeds
2. Apples
3. Chickpeas
4. Strawberries
5. Oatmeal Complex carbs pack in more nutrients than simple carbs and, due to their higher fiber content, take longer to break down. They also help stabilize blood sugar levels, which can stabilize your mood. Fluctuations in blood glucose can cause your mood to change rapidly, leaving you irritable, low on energy and feeling downright dreadful.
Lean protein
6. Eggs
7. Salmon
8. Lentils
9. Chicken
10. Lean beef Protein is necessary for healthy energy levels. It takes longer to digest than carbs, keeping your blood sugar balanced and providing lasting energy. It also affects hormones that control satiety, so when you eat enough of it, you can ward off "hanger." Amino acids, which are the building blocks of protein, help repair and replenish tissue — and your body needs them to make certain neurotransmitters.
Healthy fats
11. Avocados
12. Olives
13. Tofu
14. Dark chocolate
15. Sardines Omega-3 fatty acids are part of cell membranes, particularly in the brain, and eating foods like salmon and sardines has been shown to ease depression and boost mood. Beyond omega-3s, the unsaturated fats found in foods like avocados, olives and nuts may help keep inflammation at bay and reduce blood pressure, which are important for brain health. Eating enough healthy fats helps your immune system, too.
Folate
16. Spinach
17. Asparagus
18. Brussel sprouts
19. Pomegranates
20. Shellfish Folate plays a role in the production of dopamine and impacts other mood-related neurotransmitters, helping you keep calm and carry on. It has also been shown to help prevent neural tube defects, support cell growth and repair, and regulate sleep patterns, especially as you age. A deficiency in folate levels has been linked to a number of brain issues, including dementia and depression.
Iron
21. Potatoes
22. Turkey
23. Cashews
24. Kidney beans
25. Quinoa Low iron can cause fatigue and depression. The proteins found in iron also help maintain healthy brain function and development. Consuming too much or not enough of this mineral can impact both your innate and adaptive immune functions. When you have healthy levels of iron and use it effectively, harmful bacteria can't use the mineral for growth. And certain white blood cells fight off infection by carefully managing their iron levels.
Vitamin C
26. Oranges
27. Lemons
28. Kiwi
29. Bell peppers
30. Tomatoes Vitamin C is an antioxidant that assists the body's ability to make neurotransmitters, including dopamine and serotonin, which both work to stabilize mood. Your body needs vitamin C to maintain and repair all tissues, so it helps wounds and cuts heal. Plus, your adrenal glands require vitamin C to make stress hormones, including cortisol. The more stressed you are, the more cortisol you produce — and the more vitamin C you need.
Melatonin | 2022-04-23T00:00:00 |
4,548 | https://www.cnbc.com/2019/02/22/why-switching-to-a-green-new-deal-may-not-make-your-electric-bill-spike.html | XEL | Xcel Energy | Why switching to a Green New Deal may not make your electric bill spike | Representative Alexandria Ocasio-Cortez, Democrat of New York, and US Senator Ed Markey (R), Democrat of Massachusetts, speak during a press conference to announce Green New Deal legislation to promote clean energy programs outside the US Capitol in Washington, DC, February 7, 2019. Saul Loeb | AFP | Getty Images
It's a nearly religious point among climate-change skeptics, not least among them President Donald Trump: If America moves quickly to reduce carbon emissions, electric bills will spike and business will suffer. But it's not true, and a handful of leading-edge utilities, far from the liberal confines of California and years in advance of the enactment of a Green New Deal like the one proposed by newly elected Rep. Alexandria Ocasio-Cortez, are showing how a green electricity future can work. Already, carbon emissions from electricity are 28 percent lower than in 2007, according to the Edison Electric Institute, a trade group for investor-owned utilities. And inflation in electricity rates has averaged just 1.1 percent since 2010, by Labor Department figures — lower than the overall inflation rate. Now the utility industry is targeting the truly big numbers — reductions of 40 percent to 80 percent by 2030, with leaders like Minneapolis-based Xcel Energy , which serves 3.6 million electric customers in eight states from Minnesota to Texas, saying it's possible to go virtually carbon-free by 2050 with little to no rate impact. The basic notion is that the money used to pay for new wind and solar energy power plants can be financed with cash not spent on coal or natural gas, especially with interest rates so low. "The surprising thing is that when you do the math, it's cheaper to build the wind and not use your coal and gas plants as much," Xcel Energy CEO Ben Fowke said in a speech in Denver last year. "Most of our customers want a cleaner energy product. All of them want an affordable energy product."
On a path to 80 percent renewable by 2030
The first reason coal began going away has been the falling price of natural gas, but the falling price of renewables is now making coal's woes a one-two punch as wind power becomes the nation's fastest-growing electricity source, according to cost estimates from investment bank Lazard. Switching to gas from coal cuts a utility's carbon emissions by about half, and switching to wind, solar, or hydropower cuts them to zero. At Xcel, Fowke said the cost of making wind-based power has fallen to $20/megawatt hour from $65 in 2008, while solar power has dropped to $30 from $180. He noted that electricity has never been cheaper, adjusted for inflation, than it is now, and predicted that Xcel's power will be 55 percent renewable by 2026. It wants to reach 80 percent renewable by 2030. With a picture of stable prices and heavy capital investment, it may be a surprise that Xcel's stock is actually beating other utility shares handily. The company's shares have risen 78 percent over the last five years — and pay a 2.84 percent annual dividend yield. The company says profits are likely to rise 5 percent to 7 percent annually through 2023 as costs decline despite the capital investment. The Utilities Select Sector SPDR exchange-traded fund, the largest tracking the utility industry, has risen about 38 percent in the past five years.
"The reduction in the cost of renewables and especially natural gas has let them do this," said Emily Fisher, general counsel at the Edison Electric Institute. "Going forward, it will be a different suite of technologies. Xcel's plan is the boldest because they're talking about getting to 100 percent. But they're not alone." At Xcel, Fowke is overseeing a plan to spend another $20 billion by 2023 to make the company's goals for 2030 and 2050 happen. The company already has reduced its carbon emissions by 35 percent since 2005, while retiring coal plants that once generated 2,100 megawatts of electricity, enough to power 2.1 million homes. By 2021, Xcel plans to own 11,300 megawatts' worth of wind-powered plants, which is 10 times its 2005 total. As it does so, it will also phase out more expensive renewable power it buys from third parties using earlier-generation technology, another important source of cost savings. In 2012 Fowke characterized many of these moves as a way to get ahead of what he called a "tsunami" of upcoming regulations about mercury, carbon and other pollutants. "We've gotten ahead of the game,'' he said, in part by using tax credits designed to promote wind adoption.
Xcel customer bills are falling
While all this has been happening, the average electric bill at Xcel was falling. The average customer paid $83.52 a month for electricity in 2013, dropping to $81 by 2017. Natural gas bills fell from $61.64 in 2014 to $45.79 in 2017, the company says. "I think we can do it in a way driven by economics that is pragmatic," Fowke said in Denver. Xcel is in a unique position — geographically. "They are blessed with two things unlike any utilities," said Morningstar analyst Travis Miller. "Their territory crosses some of the most wind territories this side of the Himalayas. And that means their cost for wind is substantially less than almost anyone else," he added, cautioning that shares have become richly priced as earnings per share jumped 9.8 percent last year.
Xcel Energy President and CEO Ben Fowke III is leading a plan to make the utility 100 percent renewable-energy electricity generation by 2050. Zach Gibson | Getty Images News | Getty Images
Thomas Edison wouldn't recognize today's energy industry. And he definitely wouldn't recognize it in 10 years. Ben Fowke Xcel Energy CEO | 2019-02-22T00:00:00 |
4,549 | https://www.cnbc.com/2019/09/22/climate-change-did-we-just-witness-beginning-of-end-of-big-oil.html | XEL | Xcel Energy | Climate change: Did we just witness the beginning of the end of Big Oil? | Out of service fuel pumps are covered in plastic wrap and tarps at an Exxon Mobile gas station. Bloomberg | Bloomberg | Getty Images
Is the oil barrel half empty or half full? In the past week you had your pick of answers to choose from, and they were bookended nicely from the week's beginning to its end. The missile and drone attack on the largest Saudi Arabian oil-refining operation, which resulted in the largest single-day gain for crude oil ever on Monday, reminded a world that had gone a long time without a geopolitical shock how central the role of oil remains. By Thursday, though, Amazon CEO Jeff Bezos — a man whose every latest decision is equated with doom for whoever is on the other side of the competition — announced his company would reach a goal of carbon neutrality by 2040, a decade ahead of the Paris Agreement goal. Bezos said 10,000 electric-delivery vehicles will be on the roads in just three years (2022) and 80% of Amazon will be operating on renewable energy by as early as 2024. By 2030 all of Amazon and 100,000 delivery trucks will be 100% powered by renewable energy. On the same day, Google announced it was investing $2 billion in new renewable-energy projects, a record corporate purchase. One day later millions around the world took to the streets — including Amazon and Google employees — in a climate strike ahead of UN Climate Week. "The plain truth is that capitalism needs to evolve if humanity is going to survive," Patagonia CEO Rose Marcario wrote on LinkedIn. You could add the fact that Duke Energy — the largest utility in the U.S., which for years had resisted renewables — announced this week that it would reach an interim target of 50% carbon emission reductions by 2030, 100% by 2050. Or that Daimler, credited with inventing the modern gasoline engine, announced it will cease all research and development related to internal combustion in favor of electrification. And that was just one week. For more on iconic global companies and executives embracing change and transforming for the future, join us live on Sept. 24 in Chicago at CNBC Evolve, a summit for business decision makers seeking to innovate. But none of this week's events mean as much to the energy market as two recent milestones in the S&P 500. These stock market technicals did not make as much noise but speak volumes about crude oil. Exxon Mobil dropped out of the S&P 500 's top 10 stocks for the first time in nine decades, and the energy sector weighting in the S&P 500 hit a low of roughly 4%. Yes, oil and gas is a boom-and-bust sector and its valuation can be volatile, but the sector has not had a weighting this low based on S&P 500 data in four decades. That poses a question that no one can answer with conviction, but it won't be going away: Are we beginning to see signs of the end of Big Oil as an investment stalwart, regardless of what's still sitting in the underground reserves around the world?
Some investors are losing confidence
Sam Margolin, managing director and senior analyst at Wolfe Research covering energy sector stocks, said with some investors the oil industry has become its own hurdle, and the general fear about where the world is heading supersedes the need to be certain about a peak oil timeline. "To the extent anyone says, 'I can't look at the sector because I have no long-term confidence in oil as an energy source,' what is interesting about those comments is that the time frame is not relevant. Someone will say, 'Oil will be used in 10 years but I don't know about 20 or 50.' It is just at some point in the future it will be out of the mix, and that's a hurdle to overcome, and there are investors like that. It's not universal, and there are just as many people on the other side who say the next shortage will come sooner than anyone expects." One way to discount any correlation between the sector's S&P 500 decline and general investor souring on energy is to focus on how big the technology industry has become. As the weighting of the biggest U.S. tech companies have grown and consumed more of the total market return, other weightings decline. Over the past five-year period, 30% of the S&P 500 return was generated by the five biggest technology stocks — Alphabet , Facebook , Apple , Microsoft and Amazon . "The rest of the market has been getting bigger and leaving energy companies behind," Margolin said. "The market cap of Exxon Mobil is not lower than it was 20 years ago. It is just that the rest of the market has tripled." The stock market weighting is not the only place where this shift from energy to tech is evident. In 1982, when the Forbes 400 list was first published, 89 of the 400 richest Americans had made their fortunes in oil. By 2018, 59 of the Forbes 400 had made their fortunes in technology, including six of the top 10, Bezos among them. But oil has been down before, just never by this much in the S&P 500. "This is not the first time oil prices have been in the $50–$60 range, and yet the energy weighting is significantly less than it had been in the past," said Stewart Glickman, energy analyst at CFRA. When oil was trading between $50 and $60 during 2005 and 2006, the world was a different place. "Now alternative energy is a threat. It is still not a threat that renewables in a really significant way are taking over for fossil fuels," he said, noting that the intermittent generation of solar and wind and scaling of energy-storage solutions remain challenges. "But people are worried," Glickman said. "They've lost the growth investors even if they still have dividend investors." "I don't dismiss it as much as other people might," said Nick Colas, co-founder of DataTrek Research who worked in energy research earlier in his career on Wall Street. "I remember the first oil shock [of the 1970s] vividly. People who were 50-plus retail investors with capital to invest would be shocked to see where oil is in the S&P as a sector now. It is just not as interesting a place to invest. ... Venture capital money isn't going into carbon-based energy." "Stocks that have really worked are the ones where there is consensus," Margolin said. "Everyone knows online transaction counts are going higher, or streaming subscribers going higher. There is no consensus on a positive direction for oil."
Index funds play a role
More money also has been going into passive index funds. For the first time in August, U.S. index mutual fund assets matched the total assets under management in actively managed mutual funds. The adoption of environmental, social and governance screens by many passive fund managers is beginning to contribute to lower weightings for fossil-fuel companies. "Oil and gas does not screen well, so as passive grows that is another headwind," Margolin said. "Passive has no flexibility with respect to ESG. You could go into the office of a human portfolio manager and convince them that Exxon is working to lower their carbon footprint. You can explain that to a human, but not a robot." In fact, investors no longer need to accept any weighting to energy stocks. The amount of money invested in U.S.-based fossil-fuel free funds — investments constructed to hold no stocks in the fossil fuel business — has reached $100 billion, according to shareholder advocacy group As You Sow. "You're hands are no longer tied," said Andrew Behar, CEO of As You Sow. "It's obviously out of favor, and there is influence from ESG investors no matter what oil prices are doing," Glickman said. Some energy analysts say technology's dominance will only grow as a long-term, and direct, threat. "Investors are worried that oil demand will peak and the sector is not ready for it. Same as in European electricity, coal, autos and GE. The fear is that this is not just another cycle but a structural shift," said Kingsmill Bond, CFA and energy strategist at Carbon Tracker, a nonprofit that researches the impact of climate change on the financial markets. "The oil sector is just another example of an incumbency disrupted by superior technology. Markets have seen this many times and it does not play out well for the incumbents." Colas said while he remains unconvinced, analysts calling this the "Peak Oil" moment — Carbon Tracker's Bond is among them — have the upper hand for now. "From an investment standpoint, it seems prescient now that prices just won't lift." After the attack on the Saudi oil infrastructure crude ended the week up near-6%; the energy stock sector within the S&P 500 was up 0.99%, according to CNBC data.
Natural gas under attack by wind and solar
The next market where the disruptive potential is highest may be natural-gas fired power generation. If the past decade was about natural gas displacing coal in the utility sector, the next decade will be a competition between natural gas and renewables including wind and solar, say analysts. "We are just now shifting our focus to the competition between natural gas and renewable energy," said Travis Miller, utilities analyst at Morningstar. "Renewables were the sideshow as natural gas competed with coal, but we see natural gas and renewables increasingly competing with each other. Increasingly, there are a number of cases where it is more advantageous for customers and utilities to invest in solar and wind versus natural gas. Rewind to a decade ago and all the utilities were talking about natural gas." The CEO of the Northern Indiana Public Service Company said recently, "The surprise was how dramatically the renewables and storage proposals beat natural gas. I couldn't have predicted this five years ago." Exxon Mobil and its oil peers are heavily invested in natural gas projects around the world. While that means big bets on the liquified natural gas market won't be influenced by a faster shift in U.S. power generation, the cost equation is going to change globally. "The concern is going straight from coal to renewables," Margolin said. "It looks unlikely because of the scale of renewable investment required, but we are going into a period of time when we know eventually the world will be off oil; we don't know if the same can be said of natural gas." Royal Dutch Shell is the biggest global player in the liquified natural gas market and it expects gas demand to double by 2035 from current levels, which would imply a big supply shortfall and much more investment needed to meet that demand. "The vast majority is for power generation," said energy research firm Wood Mackenzie analyst Luke Parker. A recent report from the Rocky Mountain Institute argues that the investments being made today in gas-fired power plants and pipelines will quickly become a money loser. Utilities and investors have announced plans for over $70 billion in new gas-fired power plant construction through 2025, but its research suggests that 90% of the proposed capacity is more costly than equivalent clean energy portfolio options for utilities. Battery storage costs — key to making intermittent sources of power like solar more reliable as a primary part of the grid — are also expected to fall drastically. From 2010-2018 lithium-ion battery costs declined by 85% and they are forecast to decline by another 50% by 2030, according to Bloomberg New Energy Finance, with major implications for the utility and electric vehicle market. Announcements like Amazon's purchase of 100,000 electric delivery vans are good for every player in the battery market, said former Ford CEO Mark Fields on CNBC, as the increase in battery production will drive down pricing more broadly.
watch now
Before Duke Energy's commitment this week there was Xcel Energy in Minnesota, the first U.S. utility to say it was on the path to 100% renewable power generation. It had been one of the heaviest coal generators in the U.S., but also sits in a geographic footprint which maps with high wind potential, Miller said. "They have completely transitioned from coal to natural gas and now, in last two years, to an entire focus on renewables." A critical part of this shift for utility companies is getting all the stakeholders on board, he said, and the Xcel example shows that is happening, with regulatory support and customer support to invest substantially in renewables. "We think solar will be the story of next decade," Miller said. "The big winners will be investing heavily in renewables now. Companies that come to the table in a decade are going to be losers. They will be stuck with stranded assets." Natural gas will continue to be a huge part of the U.S. grid, up from one-third of generation not to as much as 40% in the next five years, but Miller said "it is looking more like bridge fuel rather than the primary fuel we thought it would be a decade ago. Everyone foresaw challenges coal faced. I don't think people saw the speed at which renewables would become such a primary source of investment in the generation business."
Big Oil's energy transformation?
The oil and gas management teams at companies like BP and Shell are talking a lot more about energy transformation. A recent analysis of presentations and investor calls done by Wood Mackenzie's Parker found an "exponential increase" in use of terms like "energy transition." "Energy transition terminology has gone from zero or near to zero five years ago to one of dominant themes of messaging to investors, and that speaks volumes about how investors have moved, and how companies are having to move themselves," Parker said. But he added "actions speak louder than words" and the low-carbon investments relative to the traditional oil and gas investments on the balance sheet of these companies are "still a fraction." Shell is planning to spend $2 billion to $3 billion annually on renewable energy out of a total budget of $30 billion per year through 2025. On average, oil and gas companies are spending 1% of their budget on renewables. There's a simple reason why: they still make a lot more money from fossil-fuel extraction, including in the U.S. shale plays. "There is no renewable investment that will compete with returns from the Permian Basin," Parker said. "With major oil and gas cos like Exxon and Chevron , the reason they keep reinvesting in oil and gas at this rate over renewables is not a philosophical thing," said Margolin. "They invest because this is where they see the financial case and if ever there is a clear signal the return profile was better in renewables, they would go there." He added, "The difference between them and a Kodak or a coal company is that they have much better resources, and $40 billion in cash flow annually with which they can pivot between projects. ... I see where are people tempted to make the analogy to other disrupted industries, but these others don't have the financial might of Exxon." Shell's investment will be a good test case of whether the oil and gas majors can generate comparable returns on investment from renewables. "Stable cash flows of offshore wind may be exactly what investors looking for in a super major to mitigate the type of risk we saw last weekend," Parker said. A record-setting auction for offshore wind power projects in the U.K. this past week priced them at lower rates than current coal and natural gas generation prices in the U.K. "Shell has the scope to make competitive returns in this area and they would not be investing if they did not think so, but at the same time, clearly the amount they are talking about energy transition and renewables versus the actual focus of the here and now is disproportionate," Parker said. The $2 to $3 billion Shell plans to spend on renewable investments per year compares to $125 billion in dividends and share buybacks Shell plans to deliver to investors between 2021 and 2025. That's not a surprise: analysts say as the commodity case for energy stocks has failed to compel investors, the oil and gas companies need to find other ways to attract their money. On its last earnings call with analysts, Exxon Mobil conceded under questioning that it had been holding meetings with investors asking about their interest in a buyback of its shares.
Lack of discipline has damaged oil industry
With geopolitical tensions rising after the attack on Saudi oil operations and the U.S. government contemplating its next move against Iran, which the U.S. and Saudi Arabia claim was behind the attack, the 6% rise in oil in the past week could turn into an extended risk premium in oil. Energy is cyclical, but time is not on the side of fossil fuels in the long run, and that means with each cycle during which it underperforms, the clock is ticking in a way it does not for other sectors. "It's been a chronically bad performer for several years," Glickman said. The loss of confidence among many investors stems from the most recent overspending period when oil prices were higher. From 2011 to 2014, crude oil traded above $85 a barrel. By 2015, it was in the low $40s. "Investors were burned," Colas said. "100% of complaints go back to 2011 and 2012. They lost all credibility. The lack of faith is not quite as bad as WeWork or Uber, but it will take oil going back to $85 and the drillers not going crazy for belief to come back. Any cyclical company that went through a near-death experience has to show the market they are more disciplined." Glickman said the companies have "found religion" since prices bottomed in 2016 in the $30s. "They made substantial changes." That has translated into stronger cash flow and earnings acceleration, but it has not translated into the one market indicator of renewed investor conviction: higher stock multiples. "The industry has a pretty checkered history when prices get better. Lack of trust," Glickman said. "Exploration and production companies are making more money and integrated oil and gas companies are generating good cash flows, but the changes have not manifest into demand for the stocks yet. All the stocks are languishing." It may take a significant rise in oil prices to dispel the belief of energy experts who are inclined to judge the current period as being one more cyclical trough. "If oil rises significantly and the stocks have not performed then clearly there is a question about long-term sustainability of the industry. But I don't think you can ask that question today," Margolin said. "We are dealing with a short duration of history here." It is also a period of time during which U.S. production growth has disrupted the global market balance. "This has been viewed as something that was possible only for the last four of five years. ... We have no track record of sustaining this level of supply growth at any price," he said.
Peak Oil | 2019-09-22T00:00:00 |
4,550 | https://www.cnbc.com/2022/07/25/cognitive-depletion-how-burnout-can-affect-your-shopping-habits.html | XEL | Xcel Energy | 'It's almost like shopping is an energy booster': The unlikely connection between burnout and your shopping habits | Bernadette Joy, host of the Crush Your Money Goals podcast, and her partner paid off $300,000 in debt in four years by living a "minimalist lifestyle." Now as a money coach, she uses what's she's learned to help others reach their financial milestones. Still, Joy says, she is not a stranger to overspending. And at the end of an "exhausting" day she loves to shop. "It's almost like shopping is an energy booster or a dopamine hit," she says. This trigger is not uncommon. Chris Browning, founder of the podcast Popcorn Finance, says his most thoughtless purchases happen when he is tired, too. "When it's late at night or I've had a long day and I'm just burnt out, I find that what would normally be a purchase I agonize over, because I'm too nervous or conflicted about spending the money, can become a quick impulsive decision," he says. You've probably experienced this, too. This tendency to overspend when you're tired can be explained by a psychological theory named cognitive depletion.
What is cognitive depletion?
When you wake up every morning, you have a limited amount of cognitive energy, or brain space, to help you make decisions, says Ross Steinman, a professor of psychology at Widener University who studies consumer behavior. You can increase your cognitive energy by getting a restful night's sleep, scheduling in some physical activity, or meditating. However, throughout the day you make thousands of little and big decisions — what to wear to work, what to have for lunch, how to phrase that email — so by the evening, your cognitive energy might be totally spent. If you browse a store or start shopping around online at the point in your day when your cognitive energy is at its lowest, you're less able to make a rational decision than you might have been at the start.
It's almost like shopping is an energy booster or a dopamine hit. Bernadette Joy found of Crush Your Money Goals
"Let's say somebody is buying mouthwash or toothpaste," Steinman says. "What they might do if they are operating at an optimal level in terms of sleep and decision-making is evaluate prices or search for coupons, but when they are sleep-deprived or tired they are going to do very little of that because they don't have those cognitive resources to allocate." Instead of researching the differences between toothpaste brands, for example, they might just choose Crest regardless of price or whether it's worth the extra money simply because it's familiar. If you've had an especially challenging day, you might also feel like you "deserve" an easy decision, Steinman says. This usually comes into play with bigger or unnecessary purchases rather than your everyday necessities. "Basically what is happening is people are giving themselves permission to splurge," he says.
To avoid overspending when tired try a 'cooling down period' | 2022-07-25T00:00:00 |
4,551 | https://www.cnbc.com/2021/03/17/dandelion-energy-offers-pathway-to-heat-cool-home-with-clean-energy.html | XEL | Xcel Energy | This Google X spin-off backed by Bill Gates is offering a pathway to heat and cool your home with clean energy | Kathy Hannun, founder and president at Dandelion Energy, on December 13th, 2019, on location at a geothermal heat pump installation in Westchester, NY.
Kathy Hannun wants to help reduce greenhouse gas emissions by making geothermal heat pumps mainstream. Hannun, 34, spent seven years working at Alphabet's X lab (formerly Google X), known as the tech giant's "moonshot factory." She helped launch several projects, like Project Loon, more than one of which were shut down because they were deemed not commercially viable. The experience taught Hannun that she wanted to focus her energy on ambitious innovations that are ready to be scaled and brought to market. It led her to geothermal heat pumps, which she started working on at X with a project called Tiny Lime. In 2017, Hannun and another X colleague, James Quazi, spun out Tiny Lime into start-up, Dandelion Energy. In February, Dandelion announced it has raised $30 million in a funding round led by Breakthrough Energy Ventures, the clean energy investment fund started by Bill Gates which includes money from Jeff Bezos, Michael Bloomberg, Ray Dalio, and others. Now Hannun and Dandelion are working to take geothermal heat pumps, an energy-saving way of heating and cooling homes, mainstream. They are doing this by making it easier and cheaper for people to have geothermal heat pumps installed in their homes, allowing homeowners to move on from furnace systems that rely on oil, natural gas and propane.
Kathy Hannun is holding up a vial containing methanol made from carbon dioxide extracted from seawater combined with hydrogen made with the prototype Google X Project Foghorn machine. Photo Courtesy Google X
Why geothermal heat pumps?
Geothermal heat pumps heat and cool indoor spaces in a more energy efficient manner than other heating and cooling systems. They can also be operated with electricity, offering a pathway to heating and cooling internal spaces with clean energy. Geothermal heat pumps work by using an underground pipe system to move heat between the earth and your home. They are used for both heating and cooling — fluid running through the pipes picks up heat from the ground in the winter and deposits excess heat in the summer. While geothermal heat pumps use energy to operate, the energy they use to operate is less than is used by non-geothermal systems (exactly how much varies). These pumps can use renewable, carbon-free energy, like solar or wind. "Geothermal heat pumps are part of the pathway to zero [greenhouse gasses]," says Forrest Meggers, a professor of architecture at Princeton University and founder of Cooling and Heating for Architecturally Optimized Systems Lab. Geothermal heat pumps also have the potential, with the addition of thermal or battery storage, to store heating and cooling energy for a home to draw on at a later time, which could help "decouple home thermal demand from energy demand," Megger says. That means the potential to put less strain on energy grids — something that could have benefitted Texas during the blackouts caused by the cold spell in February. (Dandelion Energy does not currently add battery storage as an option.) Other selling points for heat pumps include saving money on monthly fuel bills, quieter and more steady indoor heating and cooling, and they do not run the risk of causing carbon monoxide poisoning, according to Dandelion.
The Dandelion solution
A green future for geothermal heat pumps | 2021-03-17T00:00:00 |
4,552 | https://www.cnbc.com/2022/01/17/dietitian-shares-foods-and-drinks-for-energy-and-brain-focus-instead-of-coffee-or-caffeine.html | XEL | Xcel Energy | A dietitian who quit drinking coffee shares 5 things she eats and drinks now 'for energy and focus' | I was a coffee fanatic for most of my adult life. But four years ago, after a concussion from a car accident, my doctor suggested taking a break from caffeine to see if it would help reduce my symptoms of headaches and brain fog.
Although studies are limited, some researchers have found that too much caffeine can irritate your already-sensitive brain and slow recovery, especially during the first few weeks after an injury.
As a dietitian of 20 years, that was enough incentive for me to give up caffeine and find alternatives for energy and focus.
Keep in mind, though, that everyone tolerates caffeine differently. For healthy adults, the FDA says that 400 milligrams (about four or five cups) of coffee a day isn't generally associated with dangerous effects. But if you start to experience signs of excessive intake — difficulty sleeping, a rapid heartbeat, jitteriness — you may want to cut back.
Along with prioritizing sleep, physical activity and time outdoors, here are five foods and drinks I stock up on to stay energized — without the caffeine: | 2022-01-17T00:00:00 |
4,553 | https://www.cnbc.com/2024/04/10/harvard-nutritional-psychiatrist-best-breakfast-brain-foods.html | XEL | Xcel Energy | Harvard nutritionist and psychiatrist: I've studied brain foods for 20+ years—here are 5 of my favorite breakfasts | Breakfast provides the brain with its first source of energy every morning. Fueling the brain is key for focus, clarity, and optimal functioning throughout the day. Even if you happen to follow intermittent fasting, it's important to pick something nourishing at the start of your eating window.
Today, most people in the U.S. associate breakfast with colorful cereals, overloaded bagels and breakfast sandwiches, baked goods that border on dessert, and coffee drinks that are barely distinguishable from milkshakes.
These popular items are frequently loaded with sugars and simple carbohydrates that cause an initial spike in blood sugar followed by a crash. They also contribute to the neuroinflammation (inflammation around the brain) that's associated with brain fog and poor concentration.
Fortunately, as the Director of Nutritional, Lifestyle and Metabolic Psychiatry at Massachusetts General Hospital, my research and clinical work has helped me learn that there are plenty of other options for your morning routine that can help enhance your mental fitness.
And as a chef, I know those healthier choices can be delicious and easy to prepare.
I always suggest a glass of water when you wake up to combat dehydration and anxiety. After that, here are five of my favorite breakfast brain foods. They're rich in key nutrients and functional compounds that promote better energy, clarity, and mental health. | 2024-04-10T00:00:00 |
4,554 | https://www.cnbc.com/2021/06/30/china-musk-raise-alarm-on-bitcoin-energy-use-how-to-make-it-greener.html | XEL | Xcel Energy | China, Elon Musk raise alarm about bitcoin energy use: Here's how it could be made more 'green' | China cracking down on bitcoin mining and Elon Musk suspending Tesla's acceptance of bitcoin due to the large amounts of energy it takes to mine have both contributed to the cryptocurrency losing almost half its value from its high of over $64,000 in April. It's also making it hard for even bitcoin bulls to ignore what many say are bitcoin's sustainability issues. (Though not everyone agrees.) So what's the solution? Here's why bitcoin uses so much energy and a few ways bitcoin mining could be more eco-conscious, according to experts.
Why bitcoin mining has sustainability issues
Bitcoin's main sustainability issue is the huge amount of energy used in bitcoin mining. Bitcoin mining is how new bitcoin are released into circulation. Miners verify transactions on Bitcoin's blockchain to help avoid fraud and, as a reward, they are given new bitcoin. To verify transactions miners must solve extremely complex math problems, essentially by trial and error, which requires complex computer systems and a large amount of computational power. That much computing power uses a lot of electricity. "Right now, millions of Bitcoin mining devices around the world are generating 130 quintillion of such guesses every second of the day non-stop. Combined, these machines are now consuming as much electrical energy as a country like the Netherlands," says Alex de Vries, a financial economist who runs Digiconomist. And because of that, the higher the price of bitcoin goes, the more energy it takes for miners to get bitcoin. "That is why energy consumption usually grows or shrinks when Bitcoin respectively gains or loses value," says Marc Bevand, a computer security expert who developed the original methodology for the Cambridge Bitcoin Electricity Consumption Index. Those monster computer systems also pose an issue: "The other half problem is the large scale and frequent machinery replacement for supporting high-intensive mining activities. Production and disposal of those electronic machineries are emission intensive," says Dabo Guan, Chair in Climate Change Economics Department of Earth System Science, Tsinghua University, Beijing, China.
Using renewable energy could reduce greenhouse gas production
The problem with using so much electricity is that energy generated by burning fossil fuel releases greenhouse gasses into the atmosphere, which then cause climate change. So while transitioning bitcoin mining to use renewable energy may not reduce the overall energy consumption, it could reduce the use of fossil fuels. A research paper published by Guan and colleagues in April showed, for instance, that the energy consumption of the Bitcoin blockchain in China was expected was expected to generate an amount of greenhouse gas emissions equivalent to the yearly output of the Czech Republic or Qatar. It is unclear, however, exactly what amount of greenhouse gas emissions would be conserved if bitcoin mining transitioned to renewable energy 100%, because no one knows how much mining is already done with renewable energy sources. Commonly cited estimates range from 39% to 73% renewable energy. Jesse Morris, CEO of non-profit Energy Web says most estimates find 20% to 50% of bitcoin is powered by renewable energy, but all available numbers are based on self-reported data, which is unverifiable. Bitcoin miners in China for instance, are known to use both fossil fuel and hydroelectric energy (the most common renewable energy by bitcoin miners). But Since the Chinese government started cracking down on bitcoin mining, many miners are leaving and heading to Texas, among other potential new homes. That "might make even worse environmental impact if the miners move to Texas," says Guan. "Texas has the highest portion in the U.S. in terms of fossil fuel electricity." For progress to be made, there first has to be an accurate understanding of how much power is being used and what percentage is renewable. Musk said he had spoken with a group of miners who committed to publish data on their renewable energy usage, a development he called "potentially promising." The Crypto Climate Accord, a group working to make the cryptocurrency industry powered by 100% renewable energy, is building software that would allow miners to anonymously report the amount and kind of power they are using, says Morris. (Energy Web is a founding member of the accord.) Others, like de Vries, are skeptical that bitcoin miners would voluntarily be transparent about their energy usage. "I don't expect more openness from Bitcoin miners directly as the amount of illegal mining activities is growing rapidly," he says. "These miners won't disclose anything." Still, some, like Bevand, say that Bitcoin will naturally transition to clean energy as it becomes cheaper than electricity that releases carbon emissions. "Sustainability of bitcoin mining is a problem that will solve itself because of technological trends. ...[M]iners do everything in their power to find the cheapest electricity possible, and this often pushes them to use renewables because they have recently become the cheapest electricity," Bevand says. "For example, according to the International Energy Agency (IEA) the cost per megawatt to build solar plants is below fossil fuels worldwide for the first time." But fundamentally, powering mining with renewable energy is a "short-term solution" of debatable worth, says Guan. If there is limited renewable energy available — say a drought leads to limited hydro-electric energy — then some question whether that energy should be going towards Bitcoin to begin with. "Those electricity usually can serve for better purposes," Guan says.
A carbon tax could incentivise miners to go green
Since carbon emissions are triggered by mining activities, implementing a carbon tax on miners would be an "effective" way to motivate "greener mining activities," says Guan. A carbon tax would potentially make mining bitcoin less attractive, de Vries says. And "bitcoin losing its appeal would logically reduce the price of bitcoin. This, in turn, reduces the amount of money earned by miners and how much they spend on energy-hungry machines (so reducing the climate impact as well)," he says. But this solution has its issues, too. First, there would need to be an independent standard for tracking emissions associated with cryptocurrencies, a paper published on June 18, "The true costs of digital currencies: Exploring impact beyond energy use," suggests. The paper, of which de Vries is an author, says the cryptocurrency industry could use some iteration of the Greenhouse Gas Protocol, which is an international cooperatively designed accounting standard for tracking greenhouse gas emissions in the public and private sectors. But even if carbon emissions are centrally accounted for and independently verified, putting a carbon tax on a decentralized currency is hard to do. "Mining operations can be moved with relative ease and miners could simply relocate to jurisdictions where a carbon tax isn't implemented," says Peter Wall, the CEO of Argo Blockchain. Also, it would be inappropriate to levy a carbon tax on bitcoin before other parts of the economy, Morris says. "There are dozens if not hundreds of industries besides crypto/bitcoin that are responsible for much larger amounts of carbon emissions: oil and gas, transportation, aviation, steel, consumer electronic use and manufacturing....the list goes on," according to Morris. "To single out bitcoin individually and tax it's carbon footprint does not make a ton of logical sense in this regard."
Change how bitcoin is organized
Bitcoin was created to operate with what's called a "proof-of-work" mechanism, which results in high energy consumption mining. "With proof of work, the system selects [for a bitcoin reward] the first miner who solves an energy-intensive computation," Bevand says. So the more work, or computational power, a miner puts in, the more chance of getting bitcoin. But there is an alternative mechanism called "proof-of-stake," which some alt cryptocurrencies already use and which Ethereum 2.0 will use as part an upgrade. Proof of stake organizes the cryptocurrency based on how much of the currency a user owns, not based on which miner solved a problem. Generally speaking, if you own 3% of Ethereum 2.0, then you will be able to verify 3% of transactions, for example, Bevand says. There are some additional factors to consider, like users have to own a minimum amount, he says. But with proof of stake, there is no computation, so "it requires no energy expenditure," Bevand says. If bitcoin moved to a proof of stake mechanism, "the energy consumption of the network could go down by 99.95%," says de Vries. However, it's not necessarily realistic that such a change will happen. First of all, "the plane is in the air and attempting to change to proof-of-stake would be akin to trying to change the engine of the plane in mid-flight," Wall says. Additionally, many see the proof-of-work system as the most secure, says Walls. And the amount of centralization required (e.g., among only to those who have a certain amount of crypto) for proof-of-stake is deal breaker for many in the Bitcoin community, who take pride in the fact that bitcoin is decentralized, Bevand says. "This is part of the reason why they aren't very popular: many people don't trust them," he says. See also: Bill Gates: Stop shutting down reactors, build new nuclear power plants to fight climate change How this ex-Intel boss became an 'accidental environmentalist' fighting to eliminate single-use plastics Trillions of pounds of trash: New technology tries to solve an old garbage problem | 2021-06-30T00:00:00 |
4,555 | https://www.cnbc.com/2021/10/13/wednesday-street-calls-chipotle-tesla-apple-gm-amazon-more.html | XEL | Xcel Energy | Here are Wednesday's biggest analyst calls of the day: Chipotle, Tesla, Apple, GM, Amazon & more | Here are the biggest calls on Wall Street on Wednesday: DA Davidson initiates coverage of Workday DA Davidson said it's positive on the financial management and human capital management software company in the near and long term. "Along with ramping investments internationally, we look for this to enable the company to sustain 20% subscription growth to and through its $10B revenue target. With checks positive, we're positive on the near and long term for Workday. " Jefferies downgrades Wayfair to hold from buy Jefferies said in its downgrade of Wayfair that it's in "supply chain disarray." "3Q web traffic ended weak & 4Q started slow. Against a backdrop of supply chain disarray, 2H Street estimates are too high. Population demographics & suburban migration will fuel category growth, but we see a tactical opportunity for investors to avoid an 'air pocket' where demand falls shy of high expectations and rising costs mute profits.' Read more about this call here. Goldman Sachs reiterates Chipotle as buy Goldman said in a note to clients on Wednesday that it it sees "continued top-line strength" when Chipotle reports earnings next week. "Importantly, COVID-19 Delta-variant cases began to decelerate in early September (and continue to fall), and workplace mobility trends continue to improve, especially in key urban centers, supporting a re-acceleration in trends." Bank of America names Dick's Sporting Goods a top pick Bank of America said the sporting goods store is well positioned to handle supply chain issues. "Following our DKS /YETI CFO/IR catch-ups, we believe that both companies, while not immune to the current challenging supply chain and rising cost environment, are particularly well positioned relative to the broader competitive retail landscape heading into Holiday given relatively lower exposure to Vietnam production headwinds compared to retail peers, consumer willingness to substitute product in inventory constrained categories, & an outlook for lower industry promos compared to normalized levels. " Morgan Stanley reiterates Apple as overweight Morgan Stanley reiterated its overweight rating on the tech giant and said investors should buy the weakness after reports of slowing iPhone production. "We are buyers of any near-term AAPL share price weakness on iPhone supply chain disruption given AAPL is likely to receive more supply than competitors, demand isn't perishable, and our FY22 estimates are unlikely to change materially even if revenue and EPS shift across quarters." Read more about this call here. Goldman Sachs upgrades Xcel Energy to buy from hold Goldman said in its upgrade of the energy company that it views Xcel as a "high quality stock." "After lagging the sector index so far this year, XEL's shares appear more attractive – as they trade below the historical premium that we believe XEL warranted despite delivering solid, consistent EPS growth – we view this as a high quality stock for defensive oriented investors." Jefferies downgrades Monster to hold from buy Jefferies downgraded the beverage company due to supply chain issues. "We downgrade MNST to Hold from Buy/lower our PT to $92 given: i) US mkt share losses are worrisome as emerging brands disrupt the energy drink category; ii) Supply chain issues likely into '22 w/category pricing still on-hold." HSBC upgrades Constellation Brands to buy from hold HSBC said in its upgrade of the beverage giant that it likes Constellation's robust balance sheet. "Industry leader with strong brands, best-in-class operating margins and solid balance sheet, looking to add new capacity." Goldman reiterates Tesla and General Motors as buy Goldman reiterated its buy ratings on Tesla and GM and said it sees upside to consensus. "We are positive on Tesla , Ford, and GM this EPS season in particular. We expect Tesla's recently reported strong delivery numbers and higher vehicle pricing to more than offset any added costs from supply chain challenges in the quarter, and we expect units/margins to benefit as the company ramps additional Model Y factories in Austin/Berlin. We raise our 2021 EPS estimate for Tesla to reflect the better 3Q deliveries report. In addition, we expect Ford and GM to benefit from continued strong auto pricing." Mizuho initiates coverage of DuPont as buy Mizuho said it sees "secular growth momentum" for the chemicals company. "Plenty of Paths to Growth; Focus on Low-Risk Projects with Upside: The crux of DD' s competitive advantage lies in its extensive R & D (research and development) capabilities and resources, fueling continued innovation of customized and differentiated products." Morgan Stanley upgrades Plug Power to overweight from equal weight Morgan Stanley said in its upgrade of the stock that it sees an attractive risk/reward. " PLUG is well positioned to be a leader in the hydrogen economy. Upcoming investor day, accelerating growth, legislative support and attractive risk reward drive our upgrade to Overweight." Read more about this call here . Bank of American reiterates Amazon as buy Bank of America reiterated Amazon with a buy and said the e-commerce giant is "gearing up for strong growth." "Overall, there is no sign of slowdown of Amazon's fulfillment expansion, now expected to add 175mn sq. ft. in 2021. … Also, while labor and fulfilment build costs are likely margin headwinds in 4Q, no one can match Amazon's home delivery scale, and Amazon continues to optimize its network with L.T. cost savings from in-sourcing last mile delivery." Truist upgrades Freshpet to buy from hold Truist said in its upgrade of Freshpet that it sees a strong growth story for the healthy pet food company. "In our opinion, the hyper-growth story is about to enter its next chapter in which expanded production capacity enables it to meet full growth potential." Mizuho initiates coverage of Sherwin-Williams as buy Mizuho said sees "best-in-class pricing power" for Sherwin-Williams . "Our thesis is based on: (i.) multi-year strength across the US housing market driven by US home price appreciation, robust new and existing US home sales, and an eventual rebound in commercial activity, (ii.) best-in-class pricing power." Baird downgrades Skyworks to neutral from outperform Baird said in its downgrade of the semiconductor radio frequency company that it sees "worsening component constraints." " Skyworks' market share appears to be stabilizing going forward following significant share gains in past few years. Worsening component constraints are compounding on earlier-year shortages and are now negatively impacting iPhone13 procurement ramp, in our view."
Customers order from a Chipotle restaurant at the King of Prussia Mall in King of Prussia, Pennsylvania. Mark Makela | Reuters | 2021-10-13T00:00:00 |
4,556 | https://www.cnbc.com/2017/01/12/cashing-in-on-trumps-1-trillion-rebuilding-america-plan.html | XYL | Xylem Inc. | Cashing in on Trump's $1 trillion 'rebuilding America' plan | A bridge collapse on Interstate 5 near Mt. Vernon, Washington Getty Images
At a rally in Iowa last month, Donald Trump revealed a little more about his $1 trillion infrastructure plans. "My administration will follow two simple rules," he said. "Buy American and hire American." That's surely welcome news for the many U.S.-based construction, engineering and architecture firms who are salivating over the massive stimulus that may soon be coming their way. It's also good news for their investors, who could see equity gains climb higher as some of that $1 trillion in funding starts making its way into company coffers. Indeed, infrastructure stocks have climbed since the election, with the MSCI USA Infrastructure Sector Capped Index up nearly 7 percent since Nov. 11, days after Trump was elected.
While some stocks have already experienced large post-election gains — gravel companies Vulcan Materials and Martin Marietta Materials are up 4 percent and 11 percent, respectively, since the election, for instance — investors are still waiting to see exactly how these dollars will get doled out and to whom. Other companies, though, will ultimately benefit, said Pete Santoro, who runs Columbia Threadneedle Investments' Global Infrastructure fund. "It's possible to get double-digit returns annually on infrastructure on almost any forecast," said Santoro, who adds that companies won't just benefit from America's plan but from massive global infrastructure needs as well. "The stars are aligned for those kinds of returns."
It's still unclear how that $1 trillion will work its way through the economy and, eventually, into shareholders' hands. One option is to hand over some of that money to cities and states to fund projects, and these governments would hire the companies to do the work. Charles Lemonides, founder of ValueWorks, a New York-based investment firm, thinks we'll see a "fairly classic spend" on transportation infrastructure — spending on roads, bridges and other more traditional types of projects. That's why those gravel companies performed well after the election. Based on what's been said, though, Santoro thinks that the government might develop tax credits for private-sector companies to more easily finance projects. That would also make it easier to generate a positive return on those investments as it becomes much cheaper for companies to participate. It doesn't force Trump to raise government debt levels, either. More from Quarterly Investment Guide:
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"If a company can get a large tax credit, then they can make more money, give people more jobs, and then those people will pay taxes and that will trickle back into the U.S. and fund that tax credit," Santoro said. "In theory, there's a belief that $1 of investment in infrastructure would generate $3 or $5 for the economy. There will be a multiplier effect." Either way, companies will benefit. Investors, though, must figure out which ones will get the biggest boost.
watch now
Most initial infrastructure dollars tend to go to bridges and roads, and with the American Society of Civil Engineers saying $3.3 trillion is needed to repair and replace these assets, it's these kinds of projects that will be high on the to-do list. Repairing roads also has an economic benefit beyond new construction jobs — a smoother ride gets people to work faster, said Dennis Mitchell, the Toronto-based manager of Sprott Asset Management's Global Infrastructure Fund. "There's tangible benefit to spending money here," he said. "Improving roads to get people from A to B faster and more efficiently reduces unproductive time." Beyond the more obvious infrastructure items, Trump has also commented on the need to repair the nation's airports, specifically New York's LaGuardia, which he called "Third World." The Flint water crisis has also shown how important it is to fix America's water and wastewater treatment infrastructure. "Some water pipes are still made of wood," said Santoro, who thinks water infrastructure is going to be a major theme across the globe over the next several years. Energy infrastructure projects, such as pipelines, also benefit from a Trump presidency, said Lemonides. This is more of a result of the president-elect's pro-energy policies than stimulus, but if his spending brings more economic growth, then that's good for the oil patch. "If the economy is growing because of fiscal spending, then we could see energy use, demand for energy and then energy exploration go up," he said.
Choose companies wisely
With demand for infrastructure rising not just in America but abroad as well, valuations on some of these companies have climbed. For instance, the S&P 500 industrials sector, which includes railroads, steel companies, energy services and other infrastructure-related businesses, was trading at about 1 times discount to the S&P 500 in early 2015. It's now trading at a 0.6 percent premium. But Santoro thinks that many are still attractively valued when looking at future earnings. He thinks companies could see better earnings expansion as the dollars start flowing. So while some operations look expensive based on current earnings, if you factor in more infrastructure spending, the valuations don't appear as high. "From that standpoint, there are plenty of opportunities to find reasonably valued companies that will benefit from this movement," he said. Still, Lemonides said to be careful of companies that have jumped in price. "You want the ones that haven't exploded on the upside," he said. Overall, though, companies across numerous sectors should eventually see some sort of earnings uplift, said Mitchell of Sprott Asset Management. Cement, steel, energy, electricity and financial firms all have a part to play in rebuilding America's crumbling assets. However, engineering consulting firms, like AECOM , and large infrastructure conglomerates, such Macquarie Infrastructure , would be the first groups to see some of that money, he said. The former is currently trading at 13 times earnings, while the latter is trading at close to 19 times. The S&P 500, by comparison, is trading at 17.4 times earnings. "There's no end to the sort of second or third derivative companies that will benefit," he said. "But first it'll be companies that can help build, renovate and get started on new infrastructure projects." In the energy infrastructure space, a business such as Williams Company, which owns and operates pipelines, will be a big beneficiary, said Lemonides, as will equipment makers, such as National-Oilwell Varco , which sells drilling tools. It's currently trading at $38 a share, or about six times 2014 earnings, which was its best earnings year. The company should beat those earnings by 2020 and could get to as high as $90 a share, he said. "These are going to go from being completely unloved investor scapegoats to getting more investor interest," he said. On the water front, which is more of a longer-term infrastructure play, investors might want to look at Xylem , said Santoro. It provides transportation, water testing, water pumps and other water infrastructure products and services. "They address the full water cycle," he said.
It's currently trading at 22 times 2017 earnings. While that's higher than the 20 times it's traded at, on average, over the last three years, Santoro thinks that it has above-average earnings growth potential for this year and next compared to its peers. And compared to other companies in its sector, which have also seen valuations rise, it's undervalued. "Its relative valuation among industrials that will benefit from a better growth environment is quite attractive," he said.
A long-term play | 2017-01-12T00:00:00 |
4,557 | https://www.cnbc.com/2017/06/13/cramers-lightning-round-what-to-do-with-nxp-semiconductors-stock.html | XYL | Xylem Inc. | Cramer's lightning round: What I'm doing with the stock of NXP Semiconductors | It's that time again! Jim Cramer rang the lightning round bell, which means he gave his take on caller favorite stocks at rapid speed:
NXP Semiconductors : "OK, NXP. My charitable trust owns it. This is a company that's being bought by Qualcomm . There are some very large investors, mostly Elliott [Management], that want Qualcomm to pay more than they're currently paying. I don't know if they're going to do that, but we have chosen not to tender NXPI. We want to see if there can't be a higher bump-up by Qualcomm in order to satisfy Elliott."
Domino's : "You know what, people are always thinking [that with] Domino's, people are taking market share. Remember, it's a technology company. It sells pizzas. It's the best in the world. I think the stock can still go higher. Don't sell it."
Xylem : "I like Xylem as a pure play on water, but I've got to tell you, when Pentair splits into two, Pentair will be even better than Xylem."
Incyte Corporation : "You should be a buyer of Incyte because I think the product pipeline is terrific and I don't care if the stock is going down, I want you to own it."
MercadoLibre Inc. : "I didn't like that downgrade that we got today at Goldman Sachs. That concerned me. I'd like to see the stock off a little more. I say there's no hurry to pull the trigger."
HollyFrontier : "I think it's an inexpensive stock, but it's for a trade, and that's only because of the differential between domestic crude and foreign."
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Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com | 2017-06-13T00:00:00 |
4,558 | https://www.cnbc.com/2016/04/04/pro-exclusive-mario-gabellis-best-ideas-right-now.html | XYL | Xylem Inc. | Pro Exclusive: Mario Gabelli's best ideas right now | Mario Gabelli, founder & CEO at Gamco Investors, shared some of his favorite stock picks in an in-depth interview with CNBC's Kelly Evans for her " Spark " blog. Here are the companies he likes and the full interview video. Gabelli's comments in the video are summarized below. Viacom Tailwinds could develop with better monetization. Opportunity to reboot the Paramount movie business, which is one of handful movie studios with scale. The company is a statistically cheap stock. Genuine Parts It has generated 13 percent annual return for Gabelli's clients. It can do well in inflationary and deflationary environments. Good balance sheet with a limited amount of debt. Ryman Hospitality Properties Hotel assets real estate investment trust based in Tennessee during a time when Nashville and Country Western are hot. The company has great media content, which will be a good opportunity if they figure out better ways to monetize it. During the interview Gabelli also expressed bullishness on Xylem with water getting more scarce, and on U.S. asset management companies such as Legg Mason and T. Rowe Price . Read More Santoli: Will the bull be denied once again?
Mario Gabelli, founder & CEO at Gamco Investors, shared some of his favorite stock picks in an in-depth interview with CNBC's Kelly Evans for her "Spark" blog. Here are the companies he likes and the full interview video.
| 2016-04-04T00:00:00 |
4,559 | https://www.cnbc.com/2024/03/01/how-a-psychologist-stops-overthinking-everything.html | XYL | Xylem Inc. | A psychologist shares the 5 exercises she does to 'stop overthinking everything' | As a clinical psychologist, I've spent 14 years teaching people how to regulate their emotions and cope with difficult situations. One of the biggest issues my clients struggle with is overthinking. It's an exhausting habit that can turn a stressful challenge into even more anxiety. Here are five things I do when I need to stop overthinking everything:
1. Recognize when I tend to overthink
The first and most important step is pattern recognition. What times of the day do you get lost in your worries? Do you notice physical signs, like clenching your jaw? Are there negative themes that come up again and again in your head? Then reflect on when you are less prone to rumination, even when something difficult happens. You might worry less when you go to the gym after work, or when you listen to a funny podcast on your commute. Arming yourself with these details can help you be prepared with strategies as soon as you notice the warning signs.
2. Get some distance from myself
A big reason why overthinking when you are upset backfires is because it immerses you even more in whatever you're going through. The next time you notice yourself sinking into fruitless rumination, try to see the bigger picture. This strategy is called "self-distancing." Observe whatever difficult experience you are ruminating about as if you were a fly on the wall, rather than directly involved. Taking a step back can provide the perspective you need to feel like you can change the channel.
3. Swap 'why' with 'how'
The simplest way to replace negative thoughts with more constructive thinking is to shift from asking "why" questions ("why me?") to "how" questions ("how can I move forward?"). Notice the difference: "Why" is a dead end, while "how" leads to action. If you went on a date, for example, and the person didn't message you after what seemed like a great time, rather than ponder why, focus on how you can create a relaxing night for yourself. By doing this, you consciously shift from unproductive ruminating to empowered planning.
4. Write it out
When you need to process your feelings or an experience, instead of overthinking, practice expressive writing. Try this exercise over the course of three days: Day 1: Spend 15 to 20 minutes writing about the stress and trauma that is plaguing you.
Day 2: Write about how the experience has affected you.
Day 3: Describe how the experience relates to your current life and what you want for the future. This practice has been shown to help reduce symptoms of depression, even weeks or months later. Researchers say it's because writing can help you go deeper into your emotions, while also creating some distance and an end point.
5. Reschedule overthinking
To make your overthinking feel less compulsive, consciously postpone it until later. Give yourself 10 minutes to ruminate about a problem at 7:00 p.m. every night, then move on. Another bonus is that there's a good chance that you'll get so caught up in your day or evening that you'll forget to return to your worries at the appointed time. When you are conscious of them, you'll be able to see your thoughts with more perspective. You want to avoid the debilitating all-day background buzz of rumination. Instead, turn your overthinking into something more contained, and give yourself some freedom and power back. Jennifer L. Taitz is a licensed clinical psychologist and the author of "Stress Resets: How to Soothe Your Body and Mind in Minutes." She graduated Magna Cum Laude from New York University and earned her doctorate in clinical psychology from Yeshiva University's program at the Albert Einstein School of Medicine in New York. Want to land your dream job in 2024? Take CNBC's new online course How to Ace Your Job Interview to learn what hiring managers are really looking for, body language techniques, what to say and not to say, and the best way to talk about pay. CNBC Make It readers can save 25% with discount code 25OFF. Plus, sign up for CNBC Make It's newsletter to get tips and tricks for success at work, with money and in life. | 2024-03-01T00:00:00 |
4,560 | https://www.cnbc.com/2021/09/26/the-smart-grid-of-the-future-requires-billions-in-upgrades-these-stocks-will-benefit.html | XYL | Xylem Inc. | The smart grid of the future requires billions in upgrades. These stocks will benefit | The U.S.' electric grid, imagined for 20th century life, is in desperate need of an overhaul as 21st century challenges wreak havoc on the industry and the customers it serves. Infrastructure is outdated, technology has evolved, and extreme weather events fueled by climate change have shown again and again the vulnerabilities of our current system. And that desperately needed upgrade comes at a stratospheric cost: by the end of the next decade, the U.S. electrical grid is facing a $338 billion investment shortfall, according to the American Society of Civil Engineers. Widespread power outages this year, including two massive events in Texas alone — Hurricane Ida and the severe winter weather that hit the state in February — have garnered national attention, and President Joe Biden has emphasized the importance of upgrading the grid. The bipartisan infrastructure bill outlines $65 billion in spending for the electrical system, which includes the buildout of transmission lines as well as research and development funding for "smart grid technologies that deliver flexibility and resilience," according to the plan's fact sheet. The proposed, and massive, spending on infrastructure will be required to fundamentally transform the grid from a centralized operation, where power flows in one direction, to an interconnected network with two-way communication. On-site power generation means houses and vehicles will constantly be sending information back to the utility, providing real-time analysis and even stored power when necessary. This communication is the basic idea behind the so-called "smart grid" — not one specific change, but rather an overarching framework that utilizes the latest technology to make the grid more reliable, efficient, safer and economical, noted Andrew Little, research analyst at Global X ETFs. Where utilities once had a constant supply of coal or gas to meet any sudden spike in demand, intermittent power creates new challenges since it's impossible to bank on constant sun or wind. Monitoring the available supply is becoming more complex as distributed power and storage becomes integrated with the legacy grid, and as customers who generate their own power act as providers. "[The power grid] still looks, in its DNA, much like it did 100 years ago," said Mark Dyson, a principal with RMI's electricity practice. "There's a broad recognition that we need to reimagine some of the basic technology and even architecture of our power grid to meet the needs of where we see ourselves today." Opportunities for investors Large-scale problems can create opportunities for investors, of course, and rethinking the grid is no exception. Given the complexity of the electrical system and the many pieces it relies on, companies across sectors and industries are involved — from the nuts and bolts of the hardware, to the software, to the wiring, to the construction crews that install new equipment. For investors looking for broad exposure in the remaking of the grid, there are several funds that track the industry as a whole, including the First Trust Nasdaq Clean Edge Smart Grid Infrastructure Index Fund . The fund trades under the ticker GRID and has roughly $570 million in assets under management. Shares are up 19% for 2021 thanks to strength in names like MicroVision , Johnson Controls , On Semiconductor and Acuity Brands . Top holdings are Aptiv , Schneider Electric , Johnson Controls , ABB and Eaton Corporation . There's also the SPDR S & P Kensho Intelligent Structures ETF ; it's smaller, with around $54 million in assets under management. The fund's top holdings are Evoqua Water Technologies , Carrier Global , Xylem , Badger Meter and Johnson Controls . For investors looking for more specialized bets, one option is Itron . The company offers advanced metering infrastructure, which helps utilities better understand consumption practices through a constant flow of data. With this information, utilities can improve operational efficiency and enhance grid reliability. They can also utilize programs like demand-response systems, which focus on cutting usage to match available supply rather than ramping up supply to meet elevated demand. For example a smart thermostat could raise the room temperature to reduce demand, while an electric vehicle could be unplugged and charged at a later time when demand isn't as high. Itron's stock hit an all-time high back in March but has declined more than 30% since. In August, shares dropped a staggering 26% in one day after the company missed quarterly estimates thanks to component constraints, which management expects to persist through 2021 and into 2022. Still, Raymond James upgraded the stock from outperform to strong buy following the slide. While supply chain bottlenecks might be a near-term headwind, the firm said demand is not disappearing, and also pointed to strength in the company's software division. "Power grid modernization — a facet of both climate mitigation and adaptation — is a theme to which Itron is uniquely leveraged among U.S.-listed companies," the firm wrote in a note to clients. Analysts at Baird are less certain, however, and the firm cut the stock to a neutral rating in August due to the lack of clarity around the supply chain problems. But the firm did acknowledge Itron's leading position. "We view ITRI as the best pure-play smart grid company, and would recommend shares for investors looking for exposure to secular trends toward efficiency, smart metering, and networking," analysts led by Ben Kallo said in August in a note to clients. Smart meters are the foundation of a two-way communication network between individual homes, buildings and other devices and the grid, and can help with everything from load control to outage notification to shifting consumption in places that have time-of-use pricing. They've been around for more than a decade but are still not in every property across the U.S. An April study from The Edison Foundation estimated that 107 million smart meters were deployed in the U.S. by the end of 2020, which is about three-quarters of U.S. households. In addition to Itron, Switzerland-based Landis+Gyr is another company involved in smart metering and grid edge solutions. And then there are the companies that make the hardware and software to actually bring renewable energy to the grid. This is done through inverters, which are often referred to as the brains of a solar system since they convert the DC from solar modules into AC current for the grid. SolarEdge and Enphase Energy are among the companies that make these specialized inverters. Both stocks are down double-digits for the year amid broad weakness in renewable energy stocks. But research firm KeyBanc recently said it sees a rebound for Enphase on the horizon. "We like ENPH's core microinverters business, where it enjoys significant market share and is well-positioned to capitalize on growth in the U.S. resi solar market," the firm said while initiating coverage on the stock with an overweight rating. For investors who are wary of focusing on one specific technology, whether it be solar, wind, hydrogen, or battery storage, Morgan Stanley said targeting the equipment makers can be a safer bet. "We are confident in the long-term trends around energy transition but the adoption of individual technologies can happen at a different pace," the firm said in a recent note to clients. "Electrical equipment's integral role in all of these initiatives lowers the risk of imperfect timing...This is a megatrend in industrial markets and we expect a significant amount of capital to chase this trend," the firm added. Morgan Stanley pointed to Hubbell and Eaton Corp. as two specific beneficiaries. As more and more elements in our lives go electric, from cars to commercial buildings, the firm believes the electrification opportunity will hit $45 billion by 2030. There are also industrial conglomerates that, recognizing the opportunity in the space, offer software-as-a-service. Emerson Electric , Honeywell and Johnson Controls are among the companies that work along with utilities on such projects as a building's management system, which helps commercial buildings manage their energy needs. While there are many ways to take advantage of the evolving grid, Cowen was quick to note that investors should maintain a long-term timeframe rather than hoping for fast gains. "We caution investors that this transition in the electric utility network will not happen overnight; it will be a multi-decade-long process providing slow and steady growth," the firm said. - CNBC's Michael Bloom contributed reporting.
Kwanchai Lerttanapunyaporn | EyeEm | Getty Images | 2021-09-26T00:00:00 |
4,561 | https://www.cnbc.com/2016/10/20/are-industrials-the-achilles-heel-for-earnings.html | XYL | Xylem Inc. | Are industrials the Achilles' heel for earnings? | A General Electric (GE) GEnx next generation jet engine sits on display in the GE Aviation Systems LLC chalet on the opening day of the 51st International Paris Air Show in Paris, France.
This is the world we are living in: 1 to 2 percent growth, and no matter how many countries you sell in and no matter how many products you sell, you can't get much growth. It is hard to see any acceleration in growth.
Earnings beat by a penny, with revenue inline. The midpoint of the full-year guidance is $5.61, a couple of pennies below the $5.63 consensus. Here's the core of the problem: organic revenue growth of 1.6 percent.
You can see the problem just by looking at one company that reported Thursday: Illinois Tool Works. This is one of the most diversified industrial companies in the world, selling automotive equipment, food equipment, adhesives and sealants, welding equipment, construction products, and testing/measurement equipment in 57 countries.
Same problem with W.W. Grainger , which makes industrial supplies (janitorial products, ladders, safety gloves). They reported a slight beat on earnings, but full-year guidance was lowered at the midpoint. Overall sales are seen growing 1.5 to 2.5 percent year-over-year. Prior expectations were for growth of 1 to 4 percent. "We expect fourth-quarter demand to remain challenged," CEO D.G. Macpherson said.
This is all a bit maddening, because we were supposed to see improvement in the third quarter. Several companies (such as Pentair , which makes water and fluid controls used in the oil and food & beverage business) indicated in their second-quarter reports that Industrials were bottoming. That may be the case, but we are not seeing any lift at all.
Lackluster EPS growth prospects and pressure on margins: I expect to hear this repeated frequently as some of the companies most exposed to the global economy and manufacturer report in the next week, including Ingersoll-Rand , Pentair, and Flowserve .
There are a few positives. The U.S. consumer is still strong, so companies that sell into the consumer space like Stanley Black & Decker (tools), or Watsco (heating, ventilation and air conditioning distribution) should hold up.
And if oil can establish a new trading range of $50 to $60, that would certainly help companies exposed to Energy infrastructure like Dover , or Flowserve, which makes pumps and flow control systems for the oil industry.
One wild card is nonresidential construction — an awful lot of stuff goes into those office buildings — if the trends hold up, companies that sell into this space like Ingersoll-Rand, Honeywell and Xylem might have more positive commentary.
But that's a big if. General Electric reports tomorrow. This is the classic Industrial, even more important now that it has shifted its focus away from the Financial space and repositioned its portfolio to again concentrate on its industrial operations. They sell in more than 170 countries — virtually the entire world. They are intimately involved in infrastructure, with businesses in aircraft engines, appliances, medical imaging, water processing and wind turbines. Those businesses — Power, Aviation, and Healthcare — have been strong. That's one of the reasons they have been expecting organic revenue growth of roughly five percent for the second half of the year.
That's a tall order, especially considering other areas — Oil & Gas, Transportation (locomotives) are having a tough time.
That's why everyone will be watching GE tomorrow. | 2016-10-20T00:00:00 |
4,562 | https://www.cnbc.com/2016/09/03/five-gadgets-to-make-your-home-smarter-.html | XYL | Xylem Inc. | Five gadgets to make your home smarter | Robert Daly | Caiaimage | Getty Images
In today's technology-dependent society, houses are being enveloped by the next wave of technology: devices and mobile apps that aim to save energy, simplify everyday tasks and make the home "smarter."
Smart home solutions are an increasingly essential component for a growing number of households, with companies like Panasonic, Intel, Vivint and Google's Nest taking note. Just last month, U.S. water technology company Xylem said it would buy Sensus USA, a smart meter provider, for $1.7 billion in cash. CB Insights noted in a recent report that at least 67 private companies are operating in the smart home space, with a growing number of start-ups on track to pull in $526 million this year. As a result, owning the next "big" thing has made smart home products an easy purchase for many consumers. A 2015 survey by icontrol showed that 50 percent of consumers say they intend to purchase at least one smart home product within the year. And Gartner Research recently predicted that the typical home could consist of up to 500 smart home devices by the year 2022. CNBC recently took a look at the wide universe of smart home gadgets — which typically run the gamut from lawn maintenance systems to washing machines to solar panels — and found some cool compact versions. By Bryant McInerney and CNBC's Javier E. David
Additional reporting by Tyler Eyre Posted 3 Sept. 2016
The universal remote that does everything but cook
Savant device/home controller. Source: Savant
Universal device controllers have been around for years, but Massachusetts-based Savant takes it to another level with the Savant Remote. Sleek and futuristic, the $499 device operates by either touch or voice, and is compatible with some 380,000 different entertainment devices. With a few add-ons, the Savant wirelessly controls room lighting, television, disc/BluRay players as well as Wi-Fi speakers such as Sonos (whose ability to surround a room in sound is belied by its compact frame). One of the unit's catchiest hooks is its ability to preprogram — like a television set automatically tuning to the news in the morning, or dimming lighting and jazz playing in the evening — to create what the company calls "instant ambiance" in any room with just the tap of a button or a voice command.
'Both functional and fun'
Domgy, an artificial intelligence-powered dog. Source: Roobo
In June, Chinese artificial intelligence start-up Roobo pulled back the curtain on an artificial intelligence-powered "pet robot" named Domgy. An affectionate anagram of the phrase "my dog," Domgy could be yanked from an episode of the classic "Jetsons" cartoon — even though its functions are more like robotic housekeeper Rosie than the family's pet dog Astro. Domgy won't require long walks, feedings or bathroom breaks. The artificial intelligence powered pet has "smart-home" accouterments that include weather forecasts, remote control and guard-dog capabilities. Domgy has face recognition tech that can identify strangers, and even warns owners if an intruder enters the home. The pet's rechargeable battery lasts four to six hours and will automatically find its way to the charging station. Anthony Chen, Roobo's marketing director, told CNBC recently that "Unlike a lot of consumer robots on the market, it's both functional and fun." Domgy is expected to be released this fall at a price to be determined.
A $240 light bulb?
LED smart bulb from Sony. Source: Sony
Light bulbs have come a long way since the days of Thomas Edison, a fact Sony shows with its efficient new LED, which is smarter than the average bulb. This invention lights up a room as well as a user's ears: The bulb is a combination of a 2 watt Bluetooth controlled 3.0 speaker and an LED light bulb. It has the added bonus of connecting to smartphones and computers through a physical adapter, or controlled by a palm-sized controller to adjust brightness and volume. Along with playing music, the speaker bulb has a timer function that can set off a mini light show for a morning wake-up call. With a range of over 190 colors and 32 brightness levels, the LED can change the mood in the room with just a few touches. The LED bulb is being sold for $239.99.
Energy Sense-ability
Energy monitor MATTHEW GUILLORY | Sense
In a world that has become completely dependent on electronics — and can put a strain on the average homeowner's energy bill — Sense has found a way to help your wallet and the environment. Its new Energy Monitor connects wirelessly, tracks the energy output of your biggest energy hogs and recommends ways to save energy. Sense's monitor is installed in a home's electric panel and is controlled by a mobile app. The system then creates a timeline of the user's appliances, which can all be viewed on a smartphone. The product retails for $299.
Battling the bulge with high tech scales
Body cardio scale by Withings. Source: Withings
For those engaged in the never-ending battle against the bulge, Withings Body Cardio Scale has improved on the old bathroom scale. This upgraded version measures more than just weight — it gauges heart rate, body mass indexes, muscle mass, body fat percentages and cardiovascular health. Like most smart home products, the Withings scale is Wi-Fi enabled and can be operated via iOS or Android, but comes with a rechargeable battery with a very long life. The scale costs $179.95.
| 2016-09-03T00:00:00 |
4,563 | https://www.cnbc.com/2016/08/15/early-movers-pps-bby-deck-agn-fb-atvi-twtr-tsla-more.html | XYL | Xylem Inc. | Early movers: PPS, BBY, DECK, AGN, FB, ATVI, TWTR, TSLA & more | Check out which companies are making headlines before the bell:
Post Properties — The apartment real estate investment trust is being bought by rival MAA in a $4 billion stock swap deal. The two companies focus on apartments located in Sunbelt states.
Xylem — The water treatment company is buying privately held Sensus for about $1.7 billion in cash. Sensus is a maker of smart meters and also provides data analytics services for various utility industries.
Dollar General — The retailer's stock was downgraded to "hold" from "buy" at Jefferies, both on a valuation basis and from the potential threat of highly competitive pricing.
Best Buy — Jefferies also downgraded Best Buy to "hold" from "buy," with the call based on a maturing cycle for 4K television sets.
Deckers Outdoor — The maker of UGGS and other footwear was upgraded to "outperform" from "market perform" at Telsey Advisory Group, based on the idea that weather trends should be more favorable for Deckers than in the past.
American Eagle — The apparel retailer's stock was upgraded to "buy" from "hold" at Deutsche Bank, based on valuation and the firm's expectation that American Eagle's second-quarter results will be Wall Street consensus.
Valeant Pharmaceuticals — Mizuho upgraded the drugmaker's stock to "neutral" from "underperform," based in part on more optimistic management guidance.
General Motors — Ride service company Lyft rejected buyout interest from the automaker. General Motors declined comment on the report when contacted by CNBC.
Allergan — Hedge fund manager David Tepper increased his stake in the drugmaker by 981,700 shares to a total of 1.2 million shares during the second quarter. Tepper's quarterly Securities and Exchange Commission (SEC) filing also shows a new bet on Quorum Health and a 61 percent cut in his holdings in hospital operator HCA .
Tiffany — The luxury goods retailer lost Nelson Peltz's Trian Fund as a shareholder during the second quarter, according to Trian's quarterly SEC filing. Trian took a 5.5 percent stake in Tiffany in 2007, but cut its investment in recent months and has now exited it altogether.
Facebook , Activision Blizzard — The two stocks are among new investments by hedge fund manager Daniel Loeb's Third Point, according to a quarterly SEC filing. Third Point also exited its stake in Signet Jewelers .
Tesla — Tesla removed the word "autopilot" from its China website following a Beijing crash involving a car operating in autopilot mode.
Boeing — Boeing's KC-46 refueling tanker has been cleared for production by the Defense Department. That follows a delay in the program and some redesign work.
IBM — IBM will announce a seven-year deal to provide cloud services to business software provider Workday , according to The Wall Street Journal.
Twitter — Twitter has been in discussions with Apple about bringing the Twitter app to Apple TV, according to The New York Times. Such an agreement would allow Apple TV users to view National Football League games streamed by Twitter. | 2016-08-15T00:00:00 |
4,564 | https://www.cnbc.com/2016/07/01/cramer-remix-miss-the-brexit-bottom-heres-how-to-play-it.html | XYL | Xylem Inc. | Cramer Remix: Miss the Brexit bottom? Here's how to play it | In Jim Cramer's perspective, this week was a harsh reminder to investors that panic is not an investment strategy.
Unfortunately, investors may be put to the test again next week, ahead of the employment numbers on Friday.
The stock market panicked on Monday after news of a Brexit. Monday was the seventh biggest day of redemptions in 10 years, even through the financial crisis and great recession.
"I find the statistic infuriating because no matter how hard that I preach that nobody ever made a dime from panicking — and selling on Monday was pure panic — people just can't take it. They don't know what they own. They fear owning stocks. They don't' know how to stay put, let alone do some buying," the "Mad Money" host said.
While stocks did bounce by the end of the week, Cramer says it might have been too good. For those who bought near the bottom, it could be time to take something off the table, he said. For those who haven't bought yet, they must wait.
"I can't countenance coming in after a gigantic run right ahead of what might be a difficult earnings season," Cramer said.
Cramer will be watching for Lloyds Bank , Barclays and Royal Bank of Scotland , which were all at the center of the Brexit sell-off. He thinks that their bonds are doing well, and has his eye on Lloyds for speculation.
| 2016-07-01T00:00:00 |
4,565 | https://www.cnbc.com/2021/05/05/american-airlines-gap-among-names-expected-to-decline-analysts-say.html | XYL | Xylem Inc. | Look out below: These stocks have the furthest to fall, according to analysts | With the markets hovering around record highs, it's a stock picker's market. Wall Street analysts recommend steering clear of these names, which they expect to plummet from here. CNBC Pro screened for the stocks that analysts believe have the longest way down to go. The list of companies are S & P 500 names with the largest declines projected, according to the average 12-month price target from Wall Street analysts. The stocks also have less than 50% buy ratings. Take a look at the list here. CNBC Pro's list is full of reopening plays. Investors have rotated into value names from growth stocks in 2021 as they bet on a strong economic comeback from the Covid-19 pandemic. However, some names like American Airlines and retailers Gap and Hanesbrands , are expected to lose value in the next year. American Airlines is forecast to call more than 18% in the next 12 months. Gap is expected to drop nearly 15% and Hanesbrands is estimated to fall 8.5%. Lumen Technologies has the most downside on the list. The stock — which only about 13% of analysts recommend as a buy — is expected to drop more than 23% over the next 12 months. Enterprise software maker Oracle is projected to fall 7% in the next year. Oracle reported lower-than-expected quarterly earnings guidance in the first quarter, disappointing investors. Safra Catz, Oracle's CEO, told analysts on a conference call that she expects $1.20 to $1.24 in adjusted earnings per share and 5% to 7% revenue growth in the fiscal fourth quarter. Analysts polled by Refinitiv had expected $1.28 in adjusted earnings per share and the equivalent of 4% revenue growth. HP Inc. is another stock that is expected to fall more than 7% in the next year, according to Wall Street projections. J.M. Smucker , Mettler-Toledo and Consolidated Edison have no buy ratings for now. Analysts covering those names are either rating them "hold" or "sell." J.M. Smucker is expected to drop nearly 11%, Mettler-Toledo is projected to fall 9.6% and Consolidated Edison is forecast to shed 7.3% in the next 12 months. Other names that appear on the list are Nucor , Xylem , Waters Corp , Federal Realty , Genuine Parts and Expeditors International of Washington .
A Gap store in New York, August 2, 2020. Scott Mlyn | CNBC | 2021-05-05T00:00:00 |
4,566 | https://www.cnbc.com/2020/07/30/yum-brands-yum-q2-2020-earnings.html | YUM | Yum! Brands | Yum Brands same-store sales fall 15%, but company says trends stabilizing in June and July | A view of Taco Bell in New York City USA during the coronavirus pandemic on May 9, 2020 in New York City.
Yum Brands on Thursday reported that global same-store sales fell 15% in the fiscal second quarter, led by plummeting sales across the KFC brand, but the company said sales have begun to stabilize in its open locations.
Store closures peaked in early April, CEO David Gibbs said on a conference call with analysts to discuss earnings, adding that the company has gradually reopened stores for curbside pickup or off-premise sales.
"Digital sales were a big driver of the dramatic improvement in sales from the initial impact of COVID-19, reaching an all-time high of $3.5 billion for the quarter, an increase of more than $1 billion over the prior year," CEO David Gibbs said in a statement. "Same-store sales trends for open stores stabilized in June just a few points short of flat ... and these trends have continued into July."
Yum Brands shares were down 2% in premarket trading.
Here's what the company reported, compared with what Wall Street was expecting based on a survey of analysts by Refinitiv:
Earnings per share: 82 cents, adjusted, vs. 54 cents expected
Revenue: $1.2 billion, vs. $1.19 billion expected
Yum said net income for the quarter ended June 30 was $206 billion, or 67 cents per share, down from $289 billion, or 92 cents per share, a year earlier. The company's minority stake in Grubhub favorably impacted earnings per share by 21 cents.
Net sales fell to $1.2 billion, down 8.5% compared with a year earlier.
More than 95% of the company's worldwide stores were open in some capacity by the end of the quarter, Gibbs said. However, the company has about 24,000 dining rooms still closed across its portfolio, he said. He added that "in the U.S., we really just have a fraction of our dining rooms open."
"It's really quite impressive that we were able to get sales now globally back to approaching flat without those dining rooms in the majority of our stores," he said.
KFC was the weakest performing division, with same-store sales down 21% in the quarter. However, the fried chicken chain reported an 8% increase in U.S. systemwide sales. It's the only region where the chain reported a systemwide sales increase compared with last year. In China, which accounts for more than a quarter of the chain's annual sales, the company reported a 6% decrease in quarterly sales, excluding the impact of currency.
"We've got certain markets where brands are strong," Gibbs said on the call. "And then we've got other markets at the other end of the spectrum where there are still some closures and sales are still impacted by Covid."
Pizza Hut, typically the laggard of Yum's portfolio, reported a 9% drop in global same-store sales. Weakness in international markets was offset by gains in the U.S., where same-store sales rose 5%.
Looking at Pizza Hut's systemwide sales, which exclude currency, sales rose 1% in the U.S., which accounts for 42% of the chain's annual sales. In the chain's second biggest market, China, the company said systemwide sales fell 12%.
Gibbs said that both KFC and Pizza Hut have proven resilient amid dining room closures, largely because of their "great family meal solutions." He added that carryout and curbside pickup are "high-margin business" for franchisees and that he's optimistic about the next six months for both brands.
Taco Bell's quarterly same-store sales dropped 8%. The company warned earlier this month that the chain's U.S. same-store sales had declined by high-single digits so far in the quarter, although they turned positive from the end of April through May.
"Taco Bell was a bright spot on the quarter," Gibbs said, adding that Taco Bell was "impacted the most" of the company's brands because of the hit to their late-night and breakfast offerings. "They were the ones in some ways in the U.S. who were in dire straits, but quickly partnered with franchisees ... to get the business on much more solid footing."
Chris Turner, chief financial officer of Yum Brands, added that some restaurants that have temporarily closed might have to permanently closed. He said the company is supporting franchisees by providing payment deferral options and royalty grace periods.
Turner also announced that the company is ending its suspension of the share repurchase program. He added that Yum is still not offering a forecast due to uncertainty around the coronavirus pandemic.
Yum had $1.24 billion in cash and cash equivalents on hand as of June 30. Turner added that the company has begun to repay on its revolver withdrawals.
Yum is trying to recover after many of its stores were shuttered due to government responses to the coronavirus pandemic. At one point, 11,000 Yum locations were closed due to the pandemic, representing more than a fifth of its total restaurant base.
With coronavirus cases surging again across large swaths of the U.S., prompting some local and state officials to roll back reopening efforts, Yum has continued to struggle to navigate the public health crisis.
— CNBC's Amelia Lucas contributed to this report. | 2020-07-30T00:00:00 |
4,567 | https://www.cnbc.com/2020/03/30/yum-brands-ceo-to-forgo-2020-salary-to-fund-general-manager-bonuses.html | YUM | Yum! Brands | Yum Brands CEO to forgo 2020 salary to fund general manager bonuses | Yum Brands said Monday that CEO David Gibbs will forgo the rest of his base salary in 2020 to fund one-time $1,000 bonuses to the company's nearly 1,200 restaurant general managers across KFC, Pizza Hut, Taco Bell and The Habit Burger Grill.
His salary will also help fund the Yum Brands Foundation Global Employee Medical Relief Fund, according to a regulatory filing. The fund will provide financial hardship grants to those directly impacted by the coronavirus pandemic, including company and franchise restaurant employees. Yum plans to also accept donations to the fund.
Gibbs stood to make $900,000 from his salary this year, excluding any performance-based bonuses.
Chief executives across the restaurant industry have been forgoing their salaries or accepting slashed pay as the pandemic hits sales and leads to layoffs. Among them: Darden Restaurants CEO Gene Lee, who is not taking a salary and The Cheesecake Factory CEO David Overton, who is taking a 20% pay cut. | 2020-03-30T00:00:00 |
4,568 | https://www.cnbc.com/2020/03/31/kfc-owner-yum-brands-breaks-junk-debt-markets-fast.html | YUM | Yum! Brands | KFC owner Yum Brands breaks junk debt market's fast | Yum's bond offering represented a glimmer of investor demand in one the riskiest corners of the corporate credit market, which seized up for much of March after the coronavirus outbreak morphed into an economically devastating pandemic.
Yum Brands , owner of Pizza Hut, KFC and Taco Bell restaurant chains, sold $600 million in bonds on Monday, reopening the U.S. market for junk-rated debt issues after its longest lull since the 2008 financial crisis.
Vehicles wait in line at the drive through lane of a Yum! Brands Inc. Kentucky Fried Chicken (KFC) and Taco Bell restaurant in Lockport, Illinois.
While U.S. companies last week issued new investment-grade debt at a record clip, there had been no new issuance in the so-called high-yield market for junk-rated debt issuers since March 4.
Yum boosted its debt offering by 20%, after planning to raise $500 million. However, Yum was forced to accept a considerably higher borrowing cost than in its prior debt deals.
The company sold bonds maturing in 2025 at a 7.75% yield. By comparison, Yum raised $800 million in September through 10-year debt with a yield of 4.75%. The higher the yield, the more expensive the bond is for the company.
The debt proceeds will go towards "general corporate purposes," Yum said in a statement.
The Federal Reserve said last week it will backstop the investment-grade market but has made no such pledge for high-yield debt.
Yum, which has over 48,000 Pizza Hut, Taco Bell and KFC restaurants across the globe, said last week it expects the coronavirus pandemic to impact its second-quarter same-store sales more significantly than in the first quarter, as the fast-spreading virus hits customer traffic at its stores globally.
Yum was among several restaurant companies that this month the White House for aid to help weather the coronavirus crisis.
Earlier on Monday, Moody's amended Yum's ratings outlook to "negative" from "stable."
"The negative outlook reflects the risk that there may be a sustained weakening in Yum's credit metrics as they are increasing debt levels at a time when the company is facing significant uncertainty surrounding the potential length and severity of restaurant closures and the ultimate impact that these closures will have on Yum's revenues, earnings and liquidity," Moody's Senior Credit Officer Bill Fahy said in a statement.
Yum shares, which are down 29.8% in 2020, closed up 3.1% at $70.67, giving it a market value of $21 billion. | 2020-03-31T00:00:00 |
4,569 | https://www.cnbc.com/2019/08/12/yum-brands-names-david-gibbs-to-replace-longtime-ceo-greg-creed.html | YUM | Yum! Brands | Taco Bell-parent Yum Brands' CEO Greg Creed to retire, to be replaced by COO David Gibbs | Taco Bell's parent company Yum Brands on Monday said David Gibbs has been tapped as CEO, effective Jan. 1, 2020.
Gibbs will be succeeding Greg Creed, who is retiring after being with Yum for 25 years. He's been CEO since Jan. 2015. Prior to that, he led Taco Bell and introduced the Doritos Locos tacos to the world.
Gibbs, 55, currently serves as Yum's president and chief operating officer, overseeing the global Pizza Hut, KFC and Taco Bell divisions. The company also is appointing Gibbs to its board, effective Nov. 1.
"I've had the privilege of partnering with our franchisees to grow the three iconic brands within the Yum! Brands portfolio for over 30 years and am honored to follow in Greg's footsteps," Gibbs said in a statement.
"I am excited to accept this new role as we conclude the third and final year of our company's strategic transformation," he continued. "Because of our journey to become more focused, franchised and efficient, we're now in the best position we've ever been in to accelerate growth and improve franchise unit economics, but we still have more to achieve."
Yum said Creed, 62, will serve as a part-time advisor next year and will remain on Yum's board of directors.
"The best of Yum! is still to come and I'm delighted we have an exceptional leader like David who will drive the next wave of growth for our company," Creed said in a statement.
Yum recently reported same-store sales growth of 5% during its second quarter, driven by strong performance at Taco Bell and KFC. Delivery has helped boost sales for the company, which also owns a minority stake in GrubHub .
Yum shares are up more than 25% this year.
—CNBC's Amelia Lucas contributed to this reporting. | 2019-08-12T00:00:00 |
4,570 | https://www.cnbc.com/2019/08/01/yum-brands-earnings-q2-2019.html | YUM | Yum! Brands | Shares of Taco Bell owner Yum Brands jump as earnings top estimates | Customers wearing Taco Bell foam taco hats exit the company's restaurant, a unit of Yum! Brands Inc. in Bangkok, Thailand.
Yum Brands reported second-quarter earnings Thursday that beat Wall Street's expectations, sending its shares up more than 6%.
Here's what the company reported compared with what Wall Street expected, based on a survey of analysts by Refinitiv:
Adjusted earnings per share: 93 cents vs. 87 cents expected
Revenue: $1.31 billion vs. $1.28 billion expected
Same-store sales: up 5% vs. 3.01% increase expected
"Second-quarter results maintained early year momentum and helped us to exceed our already high expectations for a strong first half of 2019," said Greg Creed, CEO of Yum Brands. "Our commitment to being a more focused, more franchised, and more efficient growth company positions us well for long-term success."
Net sales fell 4% to $1.31 billion, topping expectations. Sales at the company's stores open more than a year rose 5%, beating Wall Street's estimates of a 3.01% increase.
Second-quarter net income fell to $289 million, or 94 cents a share, down from $321 million, or 99 cents per share a year ago.
Excluding refranchising gains, tax benefits on special items and other items, Yum earned 93 cents a share, topping Wall Street's estimate of 87 cents.
Across the board, sales at Yum-owned stores open more than a year beat Wall Street's expectations.
Taco Bell's same-store sales grew 7%, compared with 3.75% expected. The chain has consistently been the best performer of the Yum brands, and same-store sales have grown for the past 12 quarters. In July, a shortage of 10-inch tortillas threatened sales at Taco Bell, limiting the availability of some of its popular items, such as burritos and quesadillas. In an earnings call, the company said the supply issue was limited regionally and was not material.
KFC saw same-store sales growth of 6%, topping expectations of 3.68%, while Pizza Hut grew 2% compared with an expected 1.10% increase. The company said it is using Yum's stake in Grubhub to enhance delivery options at KFC and give consumers an additional way to order at Pizza Hut.
Even though Pizza Hut delivered stronger results this quarter, it has consistently been the company's weakest division and is still struggling.
The company announced that it will need to restructure some of Pizza Hut franchisees' businesses to address issues such as having too much debt or a lack of access to capital, resulting in what could be more than 400 store closures.
Yum Brands has a market value of $34.4 billion and is up 22% so far this year.
Last week, the company named a new CEO to its Taco Bell division. Mark King, former Adidas president, will take over the role from Brian Niccol, who left for Chipotle in February 2018.
Yum opened 312 net new stores during the quarter that ended June 30, a growth of 7% from the previous year.
Read Yum Brands' full second-quarter results here. | 2019-08-01T00:00:00 |
4,571 | https://www.cnbc.com/2020/02/06/yum-brands-yum-earnings-q4-2019-miss-estimates.html | YUM | Yum! Brands | Yum Brands' stock tumbles as coronavirus and Pizza Hut's weak sales expected to hit 2020 results | Yum Brands on Thursday warned that its 2020 results could fall short of its long-term outlook as the Wuhan coronavirus outbreak weighs on sales in China and Pizza Hut struggles to turnaround its U.S. business.
Shares of the company slid more than 4% in morning trading.
"While Yum's business model is highly diversified such that the impact on our financial performance will not be as significant as what many companies will experience, this will certainly be a headwind for 2020," CEO David Gibbs told analysts.
Yum's long-term outlook includes annual same-store sales growth in a range of 2% to 3% and net new restaurant growth of 4%.
Here's what the company reported, compared with what Wall Street was expecting based on a survey of analysts by Refinitiv:
Earnings per share: $1, adjusted, vs. $1.13 expected
Revenue: $1.69 billion, vs. $1.66 billion expected
Same-store sales: 2%, vs. 2.3% expected
Taco Bell's parent company reported fiscal fourth-quarter net income of $488 million, or $1.58 per share, up from $334 million, or $1.04 per share, a year earlier.
The company's minority stake in Grubhub trimmed earnings per share by 5 cents. Grubhub struggled in 2019 as fierce competition with DoorDash, Uber Eats and Postmates put pressure on its business.
Excluding refranchising gains and other items, Yum earned $1 per share, missing the $1.13 per share expected by analysts surveyed by Refinitiv.
Net sales rose 9% to $1.69 billion, topping expectations of $1.66 billion. The company reported same-store sales growth across KFC, Pizza Hut and Taco Bell of 2%.
Yum announced in January that it would be adding a fourth brand to its portfolio: Habit Restaurants, which owns the Habit Burger Grill. The acquisition is expected to close in the second quarter.
Pizza Hut was once again the laggard during the quarter. Same-store sales at the pizza chain fell 2%, a steeper drop than expected by analysts. In the U.S., same-store sales fell even further, declining by 4%. Gibbs said Thursday that the company has named Kevin Hochman, who led KFC's turnaround in its home market as its U.S. president, as the interim president of Pizza Hut's U.S. division.
KFC's same-store sales increased by 3%, even as Popeyes Louisiana Kitchen's chicken sandwich returned to restaurants permanently in November. Taco Bell's same-store sales grew by 4% in the fourth quarter.
On Wednesday, Yum China , which was spun off in 2016, warned that the Wuhan coronavirus will likely "materially affect" its 2020 sales and profits. The Chinese licensee of KFC and Pizza Hut said it could report an operating loss in the first quarter. China is KFC's largest market by systemwide sales and Pizza Hut's second largest.
Gibbs told analysts that he has been in regular contact with Joey Wat, the chief executive of Yum China.
Yum China has temporarily closed about a third of its restaurants in the country, and those still open have seen sales drop dramatically. Same-store sales during the Lunar New Year holiday fell by 40% to 50% from a year ago. In response, Yum China has rolled out "contactless delivery" so customers do not have to engage with employees to pick up their food from a restaurant. | 2020-02-06T00:00:00 |
4,572 | https://www.cnbc.com/2019/08/07/do-these-4-things-to-grow-your-career-says-former-yum-brands-ceo.html | YUM | Yum! Brands | 4 key things you should do to grow your career, according to former Yum Brands CEO David Novak | watch now
It's not necessarily easy to move up in the workplace. At the same time, wading through all the advice on how to do it can be just as daunting. However, according to former Yum Brands CEO David Novak, there are four key things you need to do to be successful. And the more success you achieve at work, the more you can invest in your financial future.
Be a lifelong learner and I guarantee you, you're going to be successful. David Novak former Yum Brands CEO
Novak should know. He rose from humble beginnings and ultimately landed in the C-suite. "When I was growing up, I lived in 23 states, and the biggest house that I lived in was eight feet wide by 46-foot-long," said Novak, now the founder and CEO of oGoLead, a digital leadership development platform. He retired as CEO of Yum Brands, which he co-founded, in 2015 and as executive chairman in 2016. In 2015, he made headlines for topping the list of Fortune 500 CEOs with the largest retirement nest eggs. It was reported to be worth $234 million at the time. During Novak's tenure, the company, which includes KFC, Pizza Hut and Taco Bell, doubled in size to 41,000 restaurants. Prior to that he was president at both KFC and Pizza Hut and held senior management positions at Pepsi .
Former Yum Brands CEO David Novak Source: Yum! Brands
"I never had any idea that I'd end up becoming a CEO of a Fortune 500 company," said Novak, also a CNBC contributor. "I worked hard," he added. "I tried to learn everything that I could that could help me be better. I tried to impact the entire organization. "And guess what? I achieved things that I never thought would be possible." He believes you can do the same. Here is Novak's advice.
Be an avid learner
The single biggest thing you can do to grow your career is to be a "know-how junkie." That means reading everything you can and figuring out the people you can learn from, Novak explained. "You want to be someone who wants to learn everything you can about your trade, about what really makes your business tick," he said. It also doesn't stop early in your career. Instead, you need to keep at it. "Be a lifelong learner and I guarantee you, you're going to be successful," Novak said. More from Invest in You:
Here's the No. 1 reason why employees quit their jobs
10 remote jobs for professionals with associate's degrees
How women can grow their careers, according to Mika Brzezinski Some of the most famous business leaders have said they are constantly learning. "Without lifetime learning, you people are not going to do very well," Charlie Munger, billionaire and long-time business partner of Berkshire Hathaway CEO Warren Buffett, said in a 2007 commencement address. "You are not going to get very far in life based on what you already know. "If you take Berkshire Hathaway, which is certainly one of the best regarded corporations in the world and may have the best long-term investment record in the entire history of civilization, the skill that got Berkshire through one decade would not have sufficed to get it through the next decade with the achievements made," he added. "Without Warren Buffett being a learning machine, a continuous learning machine, the record would have been absolutely impossible."
Act like you own the place
watch now
When working for a business, think what would an owner do and act accordingly. By doing that, you look beyond just your job, Novak said. "Too many people just look at their job and say, 'If I do my job well, people are gonna see how great I am'," he said. "Where you really separate yourself is when you do your job and then you think like the owner, act like the owner, and contribute on the basis of helping the entire enterprise grow." It's something that managers look for. In fact, there are countless articles devoted to the topic of how to motivate your employees to do just that.
Love what you do
It may be a cliché, but doing what you love can actually help you climb the ladder. "When you love what you do, you can't get enough of it," explained Novak.
David Novak presents YUM! Recognition award to Yuan Yuan Chen, Director of Finance -Yum! China Division
"You can't wait to go to work, you can't wait to learn more," he added. "And guess what? You grow. I've never seen anybody do well at something that they weren't good at or that they didn't like." It's something Microsoft co-founder and former CEO Bill Gates addressed in 2005 on NPR's "All Things Considered." "Like my friend Warren Buffett, I feel particularly lucky to do something every day that I love to do. He calls it 'tap-dancing to work,'" said Gates, who was the tech giant's chief software architect at the time. He assumed the role after stepping down as chief executive in 2000 and ultimately left his daily job at Microsoft in 2008. According to the CNBC/SurveyMonkey Workplace Happiness Index, released in April, most Americans are pretty happy with their jobs. The survey found 85% of respondents are either somewhat or very satisfied with their work.
Stay true to yourself | 2019-08-07T00:00:00 |
4,573 | https://www.cnbc.com/2019/05/01/yum-brands-q1-2019-earnings.html | YUM | Yum! Brands | Yum Brands shares fall after Taco Bell and Pizza Hut same-store sales growth disappoints | Yum Brands reported first-quarter earnings Wednesday that beat Wall Street's expectations, but weaker-than-expected same store-sales growth at Taco Bell and Pizza Hut disappointed investors.
The company shares initially rose less than 1% in premarket trading before reversing and dropping by more than 3% after the market opened. The stock, which has a market value of $30.92 billion, is up about 10% so far this year.
"First-quarter results were a solid start to the year, reflecting particular strength at the KFC division and Taco Bell U.S.," CEO Greg Creed said in a statement. "With this quarter, we have a healthy foundation to help us achieve our 2019 guidance."
Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
Adjusted earnings per share: 82 cents vs. 81 cents expected
Revenue: $1.25 billion, matching expectations
Same-store sales: up 4%, vs. 2.66% increase expected
On an unadjusted basis, Yum's first-quarter net income slid 39% to $262 million, or 83 cents per share, from $433 million, or $1.27 per share, a year earlier. Yum's roughly 3% stake in Grubhub shaved 5 cents per share off its earnings during the quarter.
Excluding refranchising gains, a tax expense on special items and other items, Yum earned 82 cents per share, topping the 81 cents per share expected by analysts surveyed by Refinitiv.
The company was able to raise its operating margin for all three of its brands, pulling in more profit. It attributed those gains to same-stores sales growth, as well as gains from its refranchising initiative. Across all three of its brands, Yum has been selling off thousands of its company-owned stores to franchisees to cut costs.
Net sales dropped 9% to $1.25 billion, in line with expectations. The company reported worldwide same-store sales growth of 4%, beating Wall Street's estimates of 2.66%.
Taco Bell's same-store sales growth of 4% missed expectations of 4.47%. The maker of the Quesarito has long been the standout of Yum's brands, but the company is trying to accelerate sales even more by pushing it into new international markets. Creed told analysts on the conference call that the international division's same-store sales growth lagged behind that of its home market. During the quarter, Taco Bell opened 12 new international stores.
Taco Bell has also rolled out delivery to over 4,000 of its U.S. locations. Executives would not share specific data but said that they saw benefits to both traffic and ticket.
Sales at Pizza Hut stores open at least a year were flat during the quarter, while Wall Street expected a bump of about half a percentage point. The laggard of Yum Brands has lost market share as it struggles to win over new customers. In the U.S., its largest market, sales declined by 1%.
KFC, which makes up the biggest chunk of Yum's revenue, reported same-store sales growth of 5%, beating estimates of 2.74%. This quarter, the brand is lapping disappointing results from last year when a shortage of chicken in the U.K. dragged down sales. Sales in China, where more than a quarter of its sales now come from, rose by 11%. Yum China , Yum's spinoff of its Chinese business, owns those stores.
Yum opened 310 net new stores during the quarter ended March 31. | 2019-05-01T00:00:00 |
4,574 | https://www.cnbc.com/2019/07/09/a-tortilla-shortage-at-taco-bell-could-hurt-sales-and-yum-brands-stock-analyst-says.html | YUM | Yum! Brands | A tortilla shortage at Taco Bell could hurt sales and Yum Brands' stock, analyst says | A shortage of tortillas at fast food chain Taco Bell is effecting the chain's menu in some parts of the country and could weigh on parent Yum Brands' stock temporarily, according to Bank of America Merrill Lynch.
The firm lowered its Taco Bell's third-quarter same-store sales to a 1% decline due to the supply issues.
"[The] 10-inch tortilla shortage should be [a] near-term headwind," Bank of America Merrill Lynch's research analyst Gregory Francfort said about Yum Brands in a note to clients on Monday.
Last week, media reports came out that the Mexican food chain had a shortage of its 10-inch tortilla, which is used in products like burritos, quesadillas, grillers, and quesaritos, making up about 30% to 40% of entrees on Taco Bell's menu, Francfort said.
"We note that the supply shortage should only be temporary creating an easier 3Q20 lap...but also note the long-term risk seems to be at breakfast where the 10-inch is utilized more heavily and where we suspect volumes are only at questionably break-even profitability levels," said Francfort.
Despite noting the headwind for Taco Bell and Yum Brands, Bank of America raised its price target for Yum Brands to $110 from $103 and reiterated its neutral rating. The new target is right about were the shares were trading on Tuesday.
The firm also raised its 2019 earnings per share "modestly" to $3.83 from $3.80 as the "franchisor's valuations have recently spiked on the prospect of lower rates caused by softer economic data," Francfort said.
Shares of Yum Brands, which has a market value of about $33.7 billion, suffered after the company reported its first-quarter earnings in March and announced same-store sales that came in lower-than-expected.
Yum Brands's stock is down less than 1% since reports of the shortage. Shares are up about 20% since the start of the year.
"While some Taco Bell restaurants are experiencing supplier shortages, we are working diligently to replenish the supply of our tortillas (used for products like quesadillas and burritos) in those restaurants and encourage fans to try any of our other delicious menu items like the Power Menu Bowl or Cheesy Gordita Crunch in the meantime," a Taco Bell spokesperson told CNBC. "We apologize for any inconvenience this might cause and appreciate our customers' patience."
—with reporting from CNBC's Michael Bloom | 2019-07-09T00:00:00 |
4,575 | https://www.cnbc.com/2019/07/25/yum-brands-new-taco-bell-ceo-is-former-adidas-executive-mark-king.html | YUM | Yum! Brands | Yum Brands names former Adidas executive Mark King as new Taco Bell CEO | Yum Brands on Thursday named Mark King, former Adidas president, as the new CEO of its Taco Bell division. King will take over the role from Brian Niccol, who left for Chipotle in February 2018.
The company also promoted Artie Starrs from president to CEO of its Pizza Hut division.
"We believe this global brand division leadership structure at Taco Bell and Pizza Hut will enable the U.S. and international teams to further implement innovative best practices worldwide, strengthen digital and technology capabilities and accelerate growth for franchisees and shareholders," said Yum Brands CEO Greg Creed.
"We're investing in world-class executives like Mark and fortunate to promote incredible talent throughout our company like Artie," Creed said in a statement announcing the appointments. "Mark is an accomplished retail innovator, and Artie is an excellent growth strategist – both are strong culture leaders who will continue to elevate Taco Bell and Pizza Hut into relevant, easy and distinctive global brands."
King stepped down as president of Adidas in 2018. During his four years in the role, Adidas became the fastest-growing sports brand in North America and increased sales by 35% in 2017, according to the press release. Before Adidas, King was CEO of TaylorMade-adidas Golf, an American manufacturer of golf clubs.
King and Starrs will report to the company's operations and finance chief David Gibbs. Their appointments are effective Aug. 5.
Niccol, who left his role as CEO of Taco Bell last year, has since helped push Chipotle to modernize with technology and menu innovation. On Tuesday, Chipotle's stock jumped 4% after it reported that its digital sales nearly doubled in the second quarter. But that was only a continuation of the hot streak its shares have been on since Niccol arrived. The stock, which has a market value of $21.5 billion, has gained 80% so far this year, and hit an all-time high of $789.50 on Wednesday.
In May, Yum disappointed investors when it posted weaker-than-expected same-store sales growth for Taco Bell and Pizza Hut. | 2019-07-25T00:00:00 |
4,576 | https://www.cnbc.com/2022/03/15/cramers-lightning-round-bausch-health-is-a-buy.html | ZBRA | Zebra Technologies | Cramer's lightning round: Bausch Health is a buy | Loading chart...
SoFi Technologies Inc : "[CEO] Anthony Noto is not a loser, he is a winner and he will get this thing going. It is very low at $8 and yet I like it."
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Zim Integrated Shipping : "It's just got a lot of earnings power ... I thought that the rates would've gone down by now, and they're not, and I think Zim's winning."
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Zebra Technologies Corp : "The stock has been one day down after another. It does not make sense to me. The company had a good quarter."
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Dominion Energy Inc : "I think Dominion's terrific, it's got actual growth."
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C3.ai Inc : "I'm not recommending it. ... Again, these companies that don't make money, people want nothing to do with."
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QuantumScape Corp : "There's dozens of companies in this same space, and I just don't think QuantumScape fits my depiction of companies that make something for a profit and return some to you."
watch now | 2022-03-15T00:00:00 |
4,577 | https://www.cnbc.com/2017/11/08/google-cloud-partners-with-zebra-medical-vision-to-offer-ai-medical-image-scanning.html | ZBRA | Zebra Technologies | Zebra Medical Vision offers $1 AI medical scans on Google Cloud | Zebra Medical Vision, an artificial intelligence (AI) health start-up, is collaborating with Google to offer its algorithms on the search giant's cloud.
The Israeli firm has created AI algorithms to read medical scans and detect anything untoward before humans can. Currently, its software can spot issues such as liver and lung disease and it is working on capabilities to recognize breast cancer and lung cancer.
Zebra recently announced that all of its algorithms will be available to use for $1 per scan. So, each time a hospital uses the algorithm to study a medical scan it will be charged $1.
But currently, Zebra's software is installed on-site, which can be costly for hospitals having to pay for servers to store the imaging. That's why Zebra is offering its algorithms on the Google Cloud.
Major hospitals and health care systems are slowly moving their data storage to the cloud, which offers a cheaper way to keep large amounts of information. Companies like Microsoft , Google and Amazon offer such services. But these technology giants also provide added services on top of their clouds, such as data analytics and AI capabilities.
Both Microsoft and Amazon have special tools in the cloud focused on areas of medicine such as genomics or drug development. Google has been trying to push the health care side of its cloud platform in the past few months. | 2017-11-08T00:00:00 |
4,578 | https://www.cnbc.com/2017/10/27/zebra-medical-vision-is-using-ai-to-detect-cancer-before-humans-can-for-1.html | ZBRA | Zebra Technologies | This start-up is using AI to detect cancer before humans can for $1 | Medical scans provide doctors with the visual information they need to spot any disease or disorder that a patient might have.
The problem is, these scans are expensive, and human medical professionals might not be able to recognize very early signs of certain diseases, like cancer, until it's too late.
That's what Zebra Medical Vision, an Israeli start-up, is trying to solve. It is using artificial intelligence (AI) algorithms that can read a scan and detect anything untoward before humans can.
And it wants its product to go global into poorer emerging markets. On Friday, the company announced that all of its algorithms will be available for use for $1 per scan. So, each time a hospital uses the algorithm to study a medical scan it will be charged $1.
"The business model is aimed at all customers. We have initial customers that we informed will pay less than they are currently as we wanted a business model that can scale outside of the Western world," Eyal Gura, chairman of Zebra Medical Vision, told CNBC by phone ahead of the announcement.
"We recently scored accounts in Africa and India."
The aim, Gura said, is to provide next-generation health care technology into emerging markets.
Zebra recently did a test with the University of Oxford in the U.K. looking at osteoporosis, a fragile bone condition that is susceptible to fractures. Britain's National Health Service (NHS) runs a fracture prevention program, but this is aimed at preventing secondary fractures only.
One of the leads on this program, Kassim Javaid, used Zebra's algorithm to detect vertebral fractures, which Zebra said is missed 60 percent of the time. Javaid said in a report that Zebra's algorithm discovered 95 percent of vertebral fractures from scans.
The four-year-old start-up is now talking to the NHS about implementing this, according to Gura. Zebra's technology can currently detect disorders such as lung disease and it is working on developing new detection algorithms.
Zebra Medical Vision is not the only company in the space and will face competition from giants such as Microsoft, as well as newer entrants such as AIdoc Medical. | 2017-10-27T00:00:00 |
4,579 | https://www.cnbc.com/2017/03/22/25-year-old-high-school-dropout-emailed-mark-cuban-and-got-investment.html | ZBRA | Zebra Technologies | How a 25-year-old high-school dropout cold-emailed Mark Cuban and got an investment | When Adam Lyons completed a program at an intensive start-up accelerator in Pittsburgh, he had his insurance rate comparison start-up, The Zebra, in good shape, and he had also decided on a dream investor: Mark Cuban. Lyons didn't know how to get in touch with Cuban, but he guessed the billionaire's email address and sent a short email with the subject line, "Wanna disrupt the insurance industry?" Twenty minutes later, the 25-year-old got an email back. It was a response from the star of ABC's "Shark Tank" and owner of the Dallas Mavericks.
Photo by JEALEX Photo
For the next several weeks, Lyons and Cuban emailed back and forth about Lyons' business plan, which involved building a platform where customers could go and compare estimates for car insurance. Then, without ever meeting in person or talking on the phone, Cuban made an investment in Lyons. Cuban, who is obsessed with email as a preferred method of doing business, says the email from Lyons was perfectly timed. It was 2012, and Cuban thought the insurance industry could be improved with more technology and transparency.
I didn't know if he would respond. I was actually surprised when he did. Adam Lyons CEO of The Zebra
"He was talking about innovating and automating the process of comparing car insurance and it was an area that I thought was ready to be disrupted," says the investor, speaking at the SXSW Conferences and Festivals in Austin. Lyons, now 29, was on stage with Cuban for the talk. Cuban invested an undisclosed amount in Zebra and serves as an advisor to its founder, who says the billionaire is very responsive on email and provides invaluable advice. Since launching in 2012, Austin-based Zebra has raised more than $21 million and has 70 employees.
Making it to a stage with Cuban at SXSW represents a radical transformation for Lyons. At 15, he dropped out of high school, and at 16, he left home, taking a series of low-skilled jobs like bagging groceries, washing dishes and packing boxes in warehouses. He was fired from most of those, he says. Lyons started taking classes at the local community college and those credits allowed him to get into college, even without a high school diploma. He graduated from Temple University and got an internship at Lloyd's in London, which is how he became fascinated with insurance. He worked in insurance in Florida and then got a sales job in Philadelphia. After getting fired, again, he changed course, bought a one way ticket to Colombia and backpacked for almost half a year. But when he returned from South America, he got serious: He started his insurance start-up from a friend's basement, where he crashed while living off his unemployment checks. He got accepted at and completed his training at the accelerator program, AlphaLab in Pittsburgh. Then he emailed Cuban. | 2017-03-22T00:00:00 |
4,580 | https://www.cnbc.com/2018/11/12/cramers-lightning-round-how-to-play-nvidias-best-in-show-stock.html | ZBRA | Zebra Technologies | Cramer's lightning round: How investors should approach the 'best-in-show' stock of Nvidia | Nvidia Corp. : "Yes[, this is a good time to start nibbling on Nvidia]. OK, Nvidia reports on Thursday. I think the quarter is going to be just OK, not great. I think your next quarter is going to have a product gap because they've got this Turing chip that is so smart that nobody's running for it yet. But the answer is I agree. I'd buy a little before and then a little after. Do not make a big commitment because the stock is in free fall, but I like your thinking. Long term, it is the best in show."
Impinj Inc. : "This one is way too crazy for me. In this market, for identification [and] RFID, we like Zebra , not this one. Don't buy."
Roku Inc. : "You're still OK. It is coming down because it's one of those situations where what's happened is the market no longer likes these very high-multiple stocks. I would sell half and then see what happens, because it really did have a good quarter. It was not a bad quarter."
Cypress Semiconductor Corp. : "I think Cypress is way too low to be able to give up right now. I think the quarter's actually going to be OK. People don't like that group, but Cypress is doing well and the management is excellent and you can pocket that dividend."
Science Applications Intl. Corp. : "I like that military provider and I think it's really terrific. I'll tell you what: I don't understand why that company is still public. I think it's only a matter of time. I want you to stay long it. I would even buy some right here. Good idea."
Micron Technology Inc. : "No. Not cheap yet. I think that you haven't seen the estimates cut. As soon as the estimates are cut, then we can look at it. Until then, it can continue to go lower."
AvalonBay Communities Inc. : "That actually is doing well because people are having a hard time being able to afford a new home, so that's why it's doing well. I think it's a good stock here."
Prudential Financial Inc. : "I like Prudential here. I like the insurers. We are in a deflationary environment, not an inflationary environment. The Fed's got it wrong and I would say buy, buy, buy!"
Eaton Corp. : "I think Eaton's good. The quarter wasn't spectacular, but it's a good industrial. Now, you've got to deal with the fact that Europe is, I think, teetering on recession, but all that said, I would hold [it] for the long term. Management's done a good job."
Exxon Mobil Corp. : "You can't go wrong with Exxon Mobil, but you have to understand that I think that oil's probably headed to the low $50s, high $40s, and there, you'll be able to pick up a little bit more. So you can buy some now and some later, but 11 straight days of oil going down is not a good sign. Exxon did have a good quarter. It's got a great balance sheet."
SAP SE : "I have to tell you, I think [the Qualtrics deal] is one of those 'Keeping Up with the Joneses' situations. I think they're trying to stay in the game, stay relevant with Salesforce . I prefer Salesforce. I'm going to talk about Salesforce when [the ActionAlertsPlus.com club has] our conference call Wednesday and why I think that SAP, while good, is not as good."
Vornado Realty Trust : "Here's my issue: Vornado, Simon Property Group , Federal Realty , Kimco , they all act great, and that's because I think that they're not going to be able to get financing to be able to build a lot of other malls or shopping centers. VNO is right. And I've got to tell you, this guy Steve Roth who runs it? He's tough. I like him."
McDonald's Corp. : "Oh, man. McDonald's is probably best in show. We had a meeting this morning with my staff and I said, 'You know what? If that stock comes down, buy, buy, buy.' But it doesn't want to come in. [CEO] Steve Easterbrook's doing a great job." | 2018-11-12T00:00:00 |
4,581 | https://www.cnbc.com/2018/01/17/coming-to-a-grocery-store-near-you-self-driving-carts-smart-shelves.html | ZBRA | Zebra Technologies | Coming to a grocery store near you: Self-driving shopping carts and smart shelves | U.S. grocers are playing catch-up.
Held back by razor-thin profit margins, which have made investing difficult, grocery retailers lagged behind their peers in Europe and parts of Asia in making strides with technology that reduces the time shoppers spend navigating aisles, ringing up purchase and bagging items.
Then Amazon showed up and acquired Whole Foods. Now, there's more pressure to roll out projects that may have been in a pilot phase — or try new things entirely.
"The technology is more mature now, and these things are becoming easier to do," Mike McNamara, the executive vice president, chief information and digital officer for Target , told CNBC.
He said retailers have complained that the technology for such innovations as speeding up checkout has been bulky and visually unpleasant. "You have to design something that's practical," he said.
The future of America's grocery stores will include more scanning devices, smart shelves with digital displays and self-driving shopping carts. The Innovation Lab at The National Retail Federation's Big Show this year featured a slew of companies showing off their ideas that would revamp the grocery shopping experience.
Start-up SwiftGo was previewing a device to weigh an item as it's placed into a cart, ensuring everything is accounted for as a shopper scans food and drinks, and checks out from a mobile app. As more companies look to add "scan and go" options inside their stores, theft remains a major issue of concern, but weight scales in carts offer one way to mitigate that challenge. SwiftGo had also added red lights to grocery carts that would light up to notify employees when it appeared a customer hadn't scanned an item to pay for it.
Focal Systems showed off grocery carts equipped with a tablet to help a shopper navigate the store, locate relevant promotional offers and automatically pay without a cashier. Anheuser-Busch InBev and other food brands are also working with Focal Systems to monitor out-of-stock items, by accessing the images taken from cameras on the sides of shopping carts.
Target's partnership with Zebra , which sells scanning devices and label printers, among other items, was highlighted at the Big Show. The big-box retailer is also working with payment platform Verifone , which can help a retailer "save the sale" on the floor of a store with portable credit card readers.
"All around the world people want to save money and they want to save time," Walmart CEO Doug McMillon said during a keynote speech at the event. "We want to foster a culture that supports change and helps us go along the journey we're all on, which will lead to even more change in the future." | 2018-01-17T00:00:00 |
4,582 | https://www.cnbc.com/2018/05/09/cramer-remix-higher-interest-rates-may-create-the-leadership-we-need.html | ZBRA | Zebra Technologies | Cramer Remix: Higher interest rates could create the leadership this market needs | watch now
CNBC's Jim Cramer has told viewers time and time again that the 10-year Treasury yield rising above 3 percent wasn't necessarily a doomsday signal for the stock market. "It's something we should embrace because it shows you that the economy is doing better," the "Mad Money" host said on Wednesday after the 10-year topped the key 3 percent level. With low unemployment and little wage inflation, the U.S. economy is currently strong enough to sustain rising rates, Cramer said. "So, in this environment, the yield on the 10-year going to 3 percent doesn't wreck the market. In fact, it provides precisely the leadership this stock market is looking for: the banks," he said. "Banks are my favorite group to lead the charge higher," Cramer continued. "Why? Because you get the best pin action as it's all about growth with no inflation." When the 10-year crossed the 3 percent threshold on Wednesday, Cramer saw money flood into shares of J.P. Morgan , Bank of America and even the scandal-ridden Wells Fargo . "This matters because historically the banks give us fantastic and long-lasting leadership," Cramer said. Later, he went over how a single research note from Morgan Stanley sparked a rally in everything cloud.
Defending Disney and Walmart
The logo of Flipkart is seen on the company's office in Bengaluru, India, May 9, 2018. Abhishek N. Chinnappa | Reuters
Cramer was taken aback when shares of Disney and Walmart got slammed after the companies announced new investments. Shares of Disney closed down nearly 2 percent on Wednesday after the entertainment giant revealed that it was spending heavily to boost ESPN Plus' online offerings. Walmart's stock also lost more than 3 percent of its value Wednesday after agreeing to take a majority stake in Flipkart, an Indian e-commerce company. But Cramer wouldn't cave to the sellers' fears. He pointed to what Disney CFO Christine McCarthy said on the company's conference call: that investing in its technology platform would allow Disney to "monetize much more programming than ESPN can now." He also talked about the benefits of Walmart's investment, lamenting that companies like Amazon , Netflix and Tesla seem to "get a free pass" when they make large investments in their businesses while Disney and Walmart, "trapped by the four walls of the spreadsheet," get criticized.
Etsy CEO on fending off Amazon
Josh Silverman, CEO, Etsy David Paul Morris | Bloomberg | Getty Images
When Amazon entered the handmade business, many investors thought Etsy was doomed. But Amazon's push into crafts hasn't derailed business at Etsy, which has seen its stock rise more than 100 percent since Amazon launched Amazon Handmade in 2015. For Etsy CEO Josh Silverman, who took the helm of the specialty retailer in March 2017, Etsy's ability to fend off Amazon stems from differing business priorities, he told CNBC on Wednesday. "If you think about the traditional strategic advantages of the mass e-tailers, it's about price, it's about convenience and it's about selection," Silverman said in an interview with Cramer. Companies like Amazon typically achieve their low prices by buying products in bulk — 1,000 or 10,000 at a time — and passing the discounts on to consumers. "Well, if you can buy 1,000 of anything, it doesn't belong on Etsy," Silverman said. "In terms of convenience, they warehouse everything in advance so they can ship it to you [the] next day. Well, a great many items on Etsy are made to order, so you simply can't warehouse them in advance." As for selection, Silverman emphasized that Etsy's pool of 1.9 million sellers produce some 50 million handmade items for the website. Although Amazon's total product count is in the hundreds of millions, "no one else comes close" in the handmade world, he said.
XPO Logistics CEO: Enabling e-commerce growth
Brad Jacobs, CEO, XPO Logistics Scott Mlyn | CNBC
Amazon may be growing at an astonishing 45 percent clip, but under-the-radar players like XPO Logistics enable that expansion, XPO Logistics Chairman and CEO Brad Jacobs said Wednesday. "We have Amazon as a customer. We have many other e-commerce players as customers. We're facilitating their growth," Jacobs told Cramer in an interview. With a new service called XPO Direct, Jacobs' shipping giant will open its network of 75 facilities to clients, allowing e-commerce companies to leverage XPO's warehouses, last-mile hubs and hybrid services for smaller shipments. "The problem that we're solving for them is they're now closer to the customer," the CEO said. "They're within 95 percent of the whole population within one or two days. It's very, very big." For more on XPO Logistics — and how it's using drones and robots to simplify shipping — watch Jacobs' full interview here.
Zebra Technologies CEO on fast growth in health care
Anders Gustafsson, CEO, Zebra Technologies with Jim Cramer on "Mad Money." Scott Mlyn | CNBC
Since its inception, Zebra Technologies has transformed from a productivity enhancement provider to a tech player that helps companies across industries execute on their corporate strategies, Zebra CEO Anders Gustafsson told Cramer in a Wednesday interview. "If you're, say, a retailer and you're looking to implement an omnichannel strategy, you need to have our type of technologies to give you the capabilities to deliver that," the CEO said. Over the last several years, Zebra has also been making its way into the health care arena, which currently represents the company's smallest, but fastest growing segment. "In hospitals, we help connect the physical to the digital," Gustafsson said. "We can take all that data about the patients and put it onto their medical record to make it easily available, and [it] basically helps to both improve the efficiency of how to run a hospital, but also the quality of care."
Lightning round: Trouble at THO? | 2018-05-09T00:00:00 |
4,583 | https://www.cnbc.com/2018/07/16/cramers-lightning-round-the-best-way-to-add-gold-to-your-portfolio.html | ZBRA | Zebra Technologies | Cramer's lightning round: The best way to add gold to your portfolio | Barrick Gold Corporation : “Look, I always think people should have some gold. I like the Gold , GLD, or I like gold, the bullion. It is really hard to own the stocks. Barrick? Sell, sell, sell.”
The Children’s Place : “[CEO] Jane Elfers is doing a great job. One quarter does not a stock make. I think you take advantage of it and buy it right here. It’s too low.”
Dynavax Technologies : “We’ve opined on this multiple times. It’s come down, I still like it and I’m going to tell you I think that it is actually, down here, down 3 percent today, a buy.”
Abiomed, Inc .: “Do you know years and years and years ago we had this company on – I always welcome them back – and I just thought it was the greatest story? I love cardiovascular products, and there you go again – it is still a good buy.”
Zebra Technologies Corporation : “[CEO] Anders Gustafsson has done such a fantastic job. We’ve liked it since $80; it’s almost a double. I’d stick with it.”
Chesapeake Energy Corporation : “Don’t want to go to that one. I say sell, sell, sell. I’m not a big fan of the natural gas market.” | 2018-07-16T00:00:00 |
4,584 | https://www.cnbc.com/2018/02/01/cramer-remix-how-you-should-approach-alphabets-earnings.html | ZBRA | Zebra Technologies | Cramer Remix: How you should approach Alphabet’s earnings | watch now
CNBC's Jim Cramer has noticed a pattern of "downward bias" among investors in the stock market. "I'm talking about the notion that a slowdown lurks around every corner, as people thought would be the case with Apple tonight, or that pricing is going to get worse, a fret about Alphabet , or demand is about to taper off, the whisper that drove down the stock of Amazon in [the] late afternoon," the "Mad Money" host said. "Did you know that none of these happen to be the case?" "So many supposed experts and analysts keep giving you second-rate, or even just plain wrong, information," Cramer continued. "They're used to things going bad for so many years and they just can't shake the prejudice even when everything is, arguably, coming up roses." So, to make sure investors got a more comprehensive look at one of the market's most hotly contested sectors, technology, Cramer dove into the earnings reports from Facebook , Alphabet, Amazon and Apple after the giants delivered their quarterly results. Alphabet delivered what was perhaps the most mixed quarter of the bunch, but Cramer still believed in the Google parent's story despite its weaker-than-expected results. "I was a tad disappointed, but then again, it had run up so much in anticipation of a blowout quarter that there was a letdown for certain," Cramer said. "My take? Don't lose hope, don't lose sleep, it's doing well."
Embraer planes Source: Embraer
In looking at the overall market layout, Cramer has determined that some stocks are simply "on a mission" to greatness. "These are the stocks that blast out of orbit, and that orbit may have had them stuck for ages. And once they are in motion, they stay in motion until they get to where they need to go," Cramer said. "You either get long or you get out of their way." Cramer has found few stocks that are on as determined a mission as Boeing , the massive aircraft manufacturer that took the No. 1 spot in the Dow Jones industrial average for 2017. "This stock has been going up pretty much in a straight line ever since we had the CEO, Dennis Muilenburg, on the show in December when he confirmed that business is stronger," Cramer said.
Marathon Petroleum CEO on 2018 demand
Gary Heminger, CEO of Marathon Petroleum Adam Jeffery | CNBC
The oil price recovery has sparked a resurgence in U.S. production, and for refinery giants like Marathon Petroleum Corporation , that translates into profits, CEO Gary Heminger told CNBC on Thursday. "[Gasoline exports have] been, really, I think, one of the most important fundamentals of the refining industry over the last five, six years," Heminger told Cramer in an interview. "We exported 314,000 barrels per day in the fourth quarter. Exported. That's about 17 percent of what we make. So that is very important, to be able to hit the foreign markets." Foreign markets will likely drive Marathon's success in 2018 as well, according to Heminger's forecasts. "We're expecting 2018, globally, to be up about 1.5 million barrels per day," the CEO said. "That's going to require more and more exports from the U.S. And the U.S. Gulf Coast refineries, they're the best engines in the world."
ServiceNow CEO: Right product, right platform, right time
As companies increasingly go digital, racing to simplify customer and employee interactions, ServiceNow is emerging as a key beneficiary of the trend, President and CEO John Donahoe told CNBC on Thursday. "This is a wonderful situation where it's the right product, right platform at the right time," Donahoe told Cramer. "Companies everywhere are embracing digital transformation where they're being forced to deliver better consumer and customer experiences and better employee experiences." But ServiceNow's offerings aren't only about ease of use. They also help C-suite executives determine the effectiveness of the technologies they're using. "Companies have been spending millions and millions and tens of millions, if not hundreds of millions of dollars or billions of dollars on technology over the last five or 10 years, but it's really hard to measure the impact or the effect," Donahoe said. "What ServiceNow enables our customers to do is to demonstrate how they can get clear productivity improvement from their investment in ServiceNow and other technologies and how they can get demonstrable improvements in their employees' experience and in their end customers' experience."
Playing the Big Game with Zebra Technologies?
Ahead of the Super Bowl, Eagles super-fan Cramer tends to get a little bit distracted from the gyrations of the stock market. "But what if there was a way to mix my two greatest loves, the NFL and the stock market? What if there was a high quality company with exposure to football that trades well as a stock?" Cramer wondered. Sure enough, the "Mad Money" host found one: Zebra Technologies , a leader in enterprise asset intelligence that specializes in barcodes, mobile printing, data capture and, most importantly, real-time locating systems. In 2015, Zebra signed with the NFL to put real-time trackers in all of their players' shoulder pads and footballs creating what Cramer called a "treasure trove of data" for televised football games. "[Zebra Technologies is] running at full tilt … but the stock still remains cheap," Cramer said. "I'd start to be a buyer of Zebra right here — of course it would be more attractive if the stock takes a nice dip — so put it on your shopping list and actually hope it goes down."
Lightning round: Aligned with ALGN | 2018-02-01T00:00:00 |
4,585 | https://www.cnbc.com/2018/04/23/cramers-lightning-round-buy-ingersoll-rand-on-economic-tailwinds.html | ZBRA | Zebra Technologies | Cramer's lightning round: Ingersoll-Rand is the right stock for this economic phase | Ingersoll-Rand PLC : "Oh, I like Ingersoll-Rand. It's precisely the kind of cyclical industrial that works well at this phase of the tightening cycle."
Blackstone Group : "You know I've been a backer of that one, honestly, for 10 years, I think. I think that [CEO Steve] Schwarzman's real good. Don't know the gent myself, though."
Thermo Fischer Scientific : "Oh, what a great stock. You know, we made really good money off it for the ActionAlertsPlus.com club and we ended up leaving 50 points on the table. This thing is a horse."
Newtek Business Services : "I think that Newtek is a business development company that I don't really understand, meaning that it's opaque and I'm not going to recommend an opaque stock."
Albemarle Corp. : "Well, I actually would prefer FMC because FMC has that terrific piece of business that it got when the DowDuPont deal needed to close, which is ag[riculture], and so that's my favorite."
Nike : "You know what? Nike has had such huge executive turnover and the stock doesn't come down. What happens when the turnover stops? Buy, buy, buy."
Zebra Technologies : "That is one that we've been eyeing. Jeez, we've been behind that. That stock is up 30 points since we recommended it last."
Aimmune Therapeutics : "I've looked at this company and we did like it. We do think that that's an important niche business." | 2018-04-23T00:00:00 |
4,586 | https://www.cnbc.com/2020/12/03/these-stocks-hit-hard-by-the-covid-pandemic-now-look-cheap-based-on-future-earnings-ubs-says.html | ZBH | Zimmer Biomet | These stocks hit hard by the Covid pandemic now look cheap based on future earnings, UBS says | (This story is for CNBC Pro subscribers only). Positive news around multiple vaccine candidates has helped boost the stock market in recent weeks, but the economic reopening does not appear to be fully priced in for some stocks, according to UBS. Researchers at the firm looked for stocks that had been hit hard during the pandemic, and their stock price didn't reflect the earnings potential in 2022 and possible margin improvement. "We present a list of stocks that have been relatively hard hit by COVID impacts but are more attractive in the early stages of normalization," the firm said in a note to clients. Many of the stocks on the list are tied to the travel industry, which has been hit hard by movement restrictions between and within countries during the pandemic. Two of the travel names that made the list were TripAdvisor and Choice Hotels . Both stocks had big rallies on Nov. 9 after positive results from Pfizer's phase-three trial were announced, but they have still underperformed the S & P 500 by more than 10 percentage points so far this year. TripAdvisor's shares remain in negative territory for 2020. Another area that is expected to benefit greatly from a vaccine is health care, as the pandemic has limited the amount of medical procedures that would typically take place. UBS identified Zimmer Biomet as an underpriced stock in the space. The company, whose products include artificial hips, saw its revenue fall 38% year-over-year during the second quarter before rebounding over the summer. The stock is down 2% year to date. Though tech broadly has been the best performing sector this year, some names in the space made the UBS list. One of those is Alliance Data Systems , whose shares are down more than 26% this year. The company was one of several removed the S & P 500 earlier this year , likely hampering its rebound from the spring lows for the stock market.
Traders work on the floor of the New York Stock Exchange. NYSE | 2020-12-03T00:00:00 |
4,588 | https://www.cnbc.com/2017/07/17/cramer-remix-why-its-still-worth-owning-procter-gamble.html | ZBH | Zimmer Biomet | Cramer Remix: Why it’s still worth owning Procter & Gamble | watch now
Monday's proxy fight between activist investor Nelson Peltz and the board of consumer goods giant Procter & Gamble captivated plenty of market-watchers, including Jim Cramer. "There's no glossing over it," the "Mad Money" host said. "But let's not lose sight of the prize here as the market stands at what I regard as a truly make or break level ... and I think the fulcrum will be a slew of earnings that represent every important group I follow. The results we get this week I think could determine where stocks are headed for the rest of the quarter." Given Peltz's track record of successfully turning companies around, Cramer did not understand why Procter took such a hard line against letting him onto the board. However, considering how hard the company has worked to improve without much to show for it, Cramer said it was worth wondering how much Peltz can truly contribute. "Still, my feeling is that Procter & Gamble is worth owning — that's been my view the whole way — because you've just gotten still one more way to win. The uglier this proxy fight gets, maybe the more shareholders stand to gain," Cramer said. With that in mind, Cramer looked ahead to the rest of the week's earnings reports to see what they can reveal about the road ahead for stocks.
Zimmer Biomet: CEO You Later
Getty Images
While Cramer likes cases where the best thing for a company is its CEO stepping down, they are few and far between and often quite bad for shareholders. "But every now and then, investors will have such a low opinion of management that a CEO departure can actually send a stock soaring higher," Cramer said. "Just look at what happened with an old favorite of mine, Zimmer Biomet , the big medical device company that specializes in orthopedic implants, just last week." When David Dvorak, Zimmer Biomet's CEO, announced he would step down from his post with no permanent replacement in line, the medical device company's stock barely budged. Since the news broke, shares of Zimmer have actually gone higher, suggesting that investors were optimistic about Dvorak's departure, Cramer said. "To be really diplomatic about it, lately, Zimmer Biomet has been plagued by sub-optimal execution," the "Mad Money" host explained.
Thinking Outside the States
Investors gather to check share prices in a security firm in Shanghai. STR | AFP | Getty Images
With investors worried about President Donald Trump's stymied agenda, the Federal Reserve's interest rate hike schedule and overvalued stocks, Cramer flagged one growth area they seem to be ignoring. "What isn't getting enough attention by anybody is how we're seeing such strong turns in so many countries and continents around the globe," Cramer said. One after another, European countries are resolving their banking crises, signaling full speed ahead for the euro , one of Cramer's favorite currencies, to run higher, he said. "It's why I think the EZU , the iShares MSCI Eurozone ETF makes so much sense to own," Cramer added, referring to the exchange-traded fund he sees as the best way to play the euro's moves. But Europe is not the only continent where Cramer sees economic data supporting a pickup in growth.
Rover.com CEO: Barking Up the Right Tree?
Cramer also sat down with Aaron Easterly, the CEO of privately-held pet care network Rover.com. After a $65 million fundraiser last week and a recent acquisition of a rival dog-sitting service, Rover has become the undisputed leader in the pet-sitting space, helped by its comparably low cost of care to services like kennels and its intuitive e-commerce platform. "We've been called the Airbnb for dogs, the Uber for dogs. I think it's a decent connotation, although most people, once they use it, they realize there's a very different experience and it's a richer experience with the service providers," Easterly told Cramer on Monday. And with 76 percent of U.S. survey respondents saying they see themselves as parents to, not owners of, their pets, Easterly expects his business to evolve far beyond dog-walking. "We think we can be the dominant brand in all of pets. Most pet companies, they either have small penetration of the target audience or very low loyalty. We're one of the few brands that actually have high penetration as well as high share of wallets, which puts us in a unique position," the CEO said.
Aurinia Pharmaceuticals: A Speculative Savior?
Finally, Cramer took up a former caller on his request to learn more about Aurinia Pharmaceuticals , a small-capitalization, development-stage biotechnology company known for its lupus treatments. The "Mad Money" host went straight to the source with Aurinia's CEO, Dr. Richard Glickman, to learn more about the company's leading drug, a Phase-3 treatment for lupus nephritis, a condition where lupus causes kidney inflammation. Glickman told Cramer on Monday that while the clinical trial process is not always optimized per treatment, which can cause problems in how the results are perceived, treating a specific kind of lupus gave Aurinia an opportunity. "At least in lupus nephritis, when you're looking at proteinuria, or protein in the urine, if you could drop protein in the urine down to a normal level, that has a big implication for patients. It makes it easier to study and easier, eventually, to get regulatory approval for," the CEO told Cramer. Glickman is currently leading the company through its Phase-3 trial of its top drug, which will involve 320 patients and 200 sites around the world. Aurinia is aiming to reproduce the successful results of the drug's Phase-2 trial, which Glickman hopes would lead to regulatory approval. But watch where you invest, the CEO warned. "These are speculative stocks. They are. And I think that's a reality and I think people, when they make a decision, they should do their homework," Glickman said. "They should really understand the diseases they're investing in and the program they're investing in and the quality of the management they're investing in. I think we have an excellent opportunity ahead of us. There's no guarantees, but I think when you look at a risk profile, I think we look pretty good."
Lightning Round: More Room to Run for DATA | 2017-07-17T00:00:00 |
4,589 | https://www.cnbc.com/2014/06/16/medtronics-43-billion-covidien-deal-may-signal-more-to-come.html | ZBH | Zimmer Biomet | Medtronic’s $43 billion Covidien deal may signal more to come | Medtronic 's deal to buy Covidien for $42.9 billion may just be the first domino in a lineup that consolidates the medical-device industry.
The acquisition, announced Sunday night, brings together the No. 4 and No. 8 players in medical devices to create the second-largest company in the industry, after Johnson & Johnson , according to Wells Fargo analyst Larry Biegelsen. While Medtronic will reincorporate in Covidien's home country, Ireland, in yet another inversion to take advantage of lower taxes outside the U.S., this deal is driven by more than tax considerations.
Read MoreMedtronic's$43B Covidien deal—and Irish tax move
"We believe that the Covidien deal is being driven by the need for Medtronic to have access to its OUS [outside the U.S.] cash, management's interest in becoming more relevant to hospitals by gaining scale across multiple segments of medical technology, and cost savings," Biegelsen wrote in a Monday research note. Medtronic has about $14 billion in cash, most of it outside the U.S.
| 2014-06-16T00:00:00 |
4,590 | https://www.cnbc.com/2017/01/24/inside-the-controversy-around-hhs-nominee-tom-prices-stock-portfolio.html | ZBH | Zimmer Biomet | The controversy around HHS nominee Tom Price’s stock portfolio, explained | U.S. Health and Human Services Secretary Nominee Rep. Tom Price Alex Wong | Getty Images
Rep. Tom Price, President-elect Donald Trump's pick for health and human services secretary, spent 12 years in Congress writing legislation on health care issues. And for at least the past four years, he bought and sold more than $300,000 in health care stocks — stocks whose value was affected by the legislation he was working on. Price's stock trades have become the issue that could derail his confirmation hearings. Democrats hammered him on them at his first Senate hearing on Wednesday, trying to get Price to admit he'd traded stock based on insider knowledge in Congress, which would be illegal. He's likely to face more pressure when he goes before the Senate Finance Committee for a confirmation hearing today. Price's trades might not be illegal, but they look bad; ethics experts advise that members of Congress refrain from trading individual stocks and stick to mutual funds while they're in office. More from Vox:
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Why Super Bowl ads are so expensive They're also part of a bigger pattern for the incoming president-elect and his nominees: From Trump's own conflicts to his nominees' struggles to finish their ethics paperwork on time, the new administration is repeatedly sending the signal that it doesn't seem to care much about the norms and traditions of ethics.
Price traded stocks while he was a member of Congress
Price appears to have advocated for legislation affecting his financial interest fairly routinely, and he continued to invest in companies his bills would affect rather than sticking to safer, diversified mutual funds.
Similarly, a 2012 law, the STOCK Act, prohibits insider trading among members of Congress, meaning they can't use information not available to the general public that they've learned in the course of their duties to make money buying and selling stock. There's no evidence Price violated that law. But that hasn't stopped a slow drip of anecdotes about his decisions to buy and sell health care stock over the past year while introducing legislation that would affect those companies' bottom lines: In March 2016, according to a CNN investigation, Price bought up to $15,000 worth of stock in Zimmer Biomet, a medical device company that specializes in hip and knee implants. Two days later, he introduced legislation to delay a regulation that would have hurt the company's business by changing how Medicare and Medicaid reimburse those procedures. Zimmer Biomet then donated to his campaign. (Price says he was not aware of the purchase, which was made by his broker.)
Price also bought shares in six pharmaceutical companies a week after a federal regulation was proposed that would lower reimbursements for doctors who prescribe expensive drugs for cancer and arthritis, according to Time magazine. The regulation was meant to help control health care costs by encouraging doctors to prescribe generic drugs and cheaper alternatives instead, and would have hurt pharmaceutical companies' bottom lines. The companies lobbied against the regulation, and Price sponsored legislation to block it. It was never enacted.
Price was able to take advantage of a special deal in another biotech firm, Innate Immunotherapeutics, an Australian company developing a multiple sclerosis drug, according to Kaiser Health News. Price was offered discounted shares for "sophisticated investors" in summer 2016 after making a smaller investment in the company in 2015. (A fellow member of Congress, Rep. Chris Collins, is on the company's board; members of the Collins family own about 20 percent of the company.)
It’s not clear Price broke the law — but it does look shady
Trump's transition team argues that Price's broker at Morgan Stanley bought the stocks and that Price didn't make the decisions personally. He didn't even know he owned the Zimmer Biomet stock for nearly three weeks, and he'd opposed the regulation on reimbursements for hip and knee replacements since long before he bought the stock. But Price also told the Senate Committee on Health, Education, Labor, and Pensions on Wednesday that he made the decision to invest in Innate Immuno, the Australian drug company, himself after a conversation with his House of Representatives colleague Collins. Regardless of who made the decision, there isn't evidence proving that Price broke the law by trading on his insider knowledge. Proposed federal regulations are public, and he bought stock in Zimmer Biomet and pharmaceutical companies during a period when those companies' stock prices had fallen considerably, due in part to concern about high drug prices. He or his broker, whoever made the decision, might have just thought they were good buys. Still, Price did work on legislation that would affect companies he was invested in, and ethics rules for the House of Representatives find that to be dicey at best. The House doesn't have strict rules on income from investments; the House Ethics Manual says those matters are handled through disclosure and the "discipline of the electoral process" — if voters are angry, they can vote you out. But the manual does say that while it's okay for members to vote on legislation affecting corporations of which they're stockholders, being more directly involved — co-sponsoring the bill, for example, or advocating for it — warrants "added circumspection" and a check-in with the House Ethics Committee. Price appears to have advocated for legislation affecting his financial interest fairly routinely, and he continued to invest in companies his bills would affect rather than sticking to safer, diversified mutual funds.
The Trump transition’s ethics problems don’t stop with Price | 2017-01-24T00:00:00 |
4,591 | https://www.cnbc.com/2020/06/25/apple-watch-mobility-metrics-lets-doctors-monitor-aging-patients.html | ZBH | Zimmer Biomet | Apple Watch will soon let doctors remotely monitor patients as they age — here's what experts think | Apple Watch Series 3 Nina Raja | CNBC
Apple introduced a slew of new features for its Apple Watch this week, ranging from sleep tracking to hand-washing reminders, most of which were targeted to all consumers. All except for one: An update to its motion sensors that is designed to help the clinicians monitor patients' remotely as they age. Apple shared in a news release that the watch and iPhone can now track low-range cardio fitness, walking speed, double support time, step length and six-minute walk distance, among other metrics. The data will be available in the Health app in the fall. Apple has described the metrics as "validated" because it compares them in internal studies to the gold standard for measurement. The company said that, because of these updates, it now has a way to track "functional (aerobic) capacity" through the Apple Watch. That means it can start to assess a patients' mobility in a standardized way. Most of what Apple does is intended for consumers at large, but these new features are most relevant to those who are aging or experiencing events that impact their ability to move freely because of an injury or procedure.
Measuring recovery from medical procedures
Apple said it is currently working with Zimmer Biomet, an orthopedics products company, on a service called mymobility, which uses Apple Watch's gait metrics to collect a user's walking speed and double support time — a measurement of when both feet are on the ground — on flat surfaces without GPS. This could be useful data for physicians after a procedure, like a knee or hip replacement, to assess their patients' rate of recovery between clinic visits. Many doctors focused on heart health will use a "six minute walk test" in their clinics to measure how well someone is walking or recovering. Historically, patients have needed to go into a clinic to measure how far they've walked between set of cones or markers, while a supervisor wears a stopwatch. "The goal isn't just to see how you walked in six minutes," explained Dr. Paul Friedman, a Professor of Medicine and Chair of the Department of Cardiovascular Medicine at Mayo Clinic. "But to see how you compared to others your age and sex - and to look at that as an overall marker of health." Dr. Friedman thinks that wearables can certainly play a role when it comes to measuring functional capacity, particularly in how it's changing over time. It's also a window into patients' everyday lives, where they might move differently than in the lab or the clinic. But it's still early days, and it's too soon to say whether health developers will flock to incorporate the new metrics into their apps. But some studies are currently underway to assess the role of wearables in monitoring patients' mobility. The Palo Alto Veterans Institute for Research is testing whether a mobile medical app called VascTrac that monitors movement using Apple devices can predict endovascular failure of patients with peripheral artery disease, which refers to a narrowing of peripheral arteries serving the legs, stomach, arms and head. "Think of it as a clinically validated way for us to know how you're doing in the real world," said Dr. Oliver Aalami, a vascular surgeon at Stanford University and a researcher behind the study.
It can help doctors check in on declines in physical activities over time
Where he sees Apple Watch or the iPhone playing a role is by providing doctors with an activity index of sorts, so they can check in on general declines in physical activity over periods of time. Wearables can play a particularly important role during the pandemic, he notes, because patients might prefer to perform such tests or exercises at home. Ideally, he'd like for the data generated from wearables to be used as part of a structured program, which is supervised by a doctor or exercise specialist. Dr. Jeffrey Wessler, a cardiologist based in New York, said he could see Apple Watch being particularly useful for monitoring how patients are faring during clinical trials. That's because it could allow for researchers to measure participants asynchronously, and without extra resources to track how they're responding to an intervention over time. There's also the potential for health systems to team up with Apple and strike deals with health plans willing to pay for exercise interventions down the road. There are even cases where patients can enroll in physical therapy in lieu of needing a surgical procedure. In the Netherlands, for instance, exercise therapy programs are covered for vascular patients with peripheral artery disease. Vascular surgeon Joep Teijink told CNBC by phone say that patients after six weeks of physical therapy are seeing promising results, and many do not require a procedure. Teijink said he's still determining how wearables can play a role in helping these patients. In the United States, Dr. Aalami said that integrated health systems are most likely to be investing in exercise therapy programs using wearable devices because they get paid based on patient outcomes. At fee-for-service hospitals, there's less of a financial incentive to do so as they typically get paid for performing the procedures. Most doctors agree that it's an area that needs more investment and resources in using wearables to monitor patients. For Dr. Aalami, there's even potential down the road to "make physical activity a vital sign".
Some say Apple needs to do more | 2020-06-25T00:00:00 |
4,592 | https://www.cnbc.com/2017/01/17/trump-team-defends-health-pick-tom-price-over-ethics-charge.html | ZBH | Zimmer Biomet | Trump team defends health pick Tom Price over ethics charge | U.S. President-elect Donald Trump's transition team defended his nominee for health and human services (HHS) secretary, Tom Price, from charges that he bought shares in a company days before introducing legislation that would have benefited the firm.
A Senate confirmation hearing is scheduled for Wednesday for Price, a Republican congressman from Georgia who, if confirmed, would be a lead agent in carrying out Trump's plans to overhaul President Barack Obama's signature health care law.
CNN reported on Sunday that Price bought between $1,001 and $15,000 worth of shares last March in Zimmer Biomet a medical device manufacturer.
Days later, he introduced legislation to the House of Representatives that would have delayed a regulation that could have ultimately damaged the company, CNN said.
The Trump transition team said late on Monday that the stock purchase was directed not by Price but by a broker and that Price himself did not become aware of the stock buy until well after the legislation was introduced.
"Any effort to connect the introduction of bipartisan legislation by Dr. Price to any campaign contribution is demonstrably false," said transition spokesman Phil Blando.
"The only pattern we see emerging is that Senate Democrats and their liberal media allies cannot abide by the notion that Dr. Tom Price is uniquely qualified to lead HHS and will stop at nothing to smear his reputation," he said.
Senator Chuck Schumer of New York, the leader of the Democratic minority in the Senate, called on the Office of Congressional Ethics to investigate whether Price had violated the 2012 Stock Act, a law designed to combat insider trading.
"The President-elect claims he wants to drain the swamp, but Congressman Price has spent his career filling it up," Schumer said in a statement.
Price is one of eight Trump Cabinet nominees who will face Senate confirmation hearings this week, starting on Tuesday with Ryan Zinke, a Republican Montana congressman pegged as interior secretary, and Republican philanthropist Betsy DeVos who is the education nominee.
Trump's presidential inauguration is on Friday and his team is hoping to have as many of his nominees as possible, perhaps as many as seven, confirmed by then. | 2017-01-17T00:00:00 |
4,593 | https://www.cnbc.com/2017/01/18/here-are-three-things-to-watch-during-tom-prices-confirmation-hearing.html | ZBH | Zimmer Biomet | 3 things to watch during Tom Price’s confirmation hearing | Rep. Tom Price, R-Ga., tears a page from the national health-care bill during a press conference at the U.S. Capitol on March 21, 2012, in Washington, DC.
Having served as the chair of the House Budget committee, Rep. Tom Price knows a thing or two about congressional hearings. But this time President-elect Donald Trump's pick for secretary of Health and Human Services will be in the hot seat, when he goes before the Senate in the first of two confirmation hearings on Wednesday.
The six-term Republican from Georgia has been one of the leading opponents to Obamacare in Congress, and an advocate for the restructuring of the Medicaid and Medicare health entitlement programs. Democrats have vowed to fight the nomination of Price, an orthopedic surgeon.
Price's confirmation hearing before the Senate Health, Education, Labor and Pensions Committee will be a warmup for his appearance before the Senate Finance Committee, which will actually vote on his nomination.
Here are three hot-button issues to watch: | 2017-01-18T00:00:00 |
4,594 | https://www.cnbc.com/2016/10/31/zbh-plummets-13-after-weak-third-quarter.html | ZBH | Zimmer Biomet | ZBH plummets 13% after weak third quarter | Shares of Zimmer Biomet fell nearly 14 percent Monday after the company cut its sales guidance for the year, following weak third-quarter results.
The musculoskeletal-healthcare company now expects full-year revenue growth of between 1.65 and 1.9 percent after previously reporting growth expectations of between 2.5 and 3 percent. It also lowered the high end of its earnings expectations for the year.
The stock saw its worst day since Oct. 2007 when it fell 15.09 percent. Monday was the stock's second-worst day ever.
The healthcare sector fell more than 0.5 percent on Monday. Other laggers include Edwards Lifesciences , Perrigo , Alexicon and AbbVie . Healthcare continues to be one of the worst-performing S&P sector, down more than 6 percent. | 2016-10-31T00:00:00 |
4,595 | https://www.cnbc.com/2017/12/20/cramer-remix-buying-the-iphone-x-made-me-even-more-bullish-on-apple.html | ZBH | Zimmer Biomet | Cramer Remix: Buying the iPhone X made me even more bullish on Apple | watch now
When CNBC's Jim Cramer went to buy the iPhone X as a holiday present for his wife, what could've been a mad dash turned into a bull case for Apple . The "Mad Money" host was lucky enough to visit an Apple store that had one silver iPhone X left. Cramer happily bought it, but his Twitter followers weren't as pleased. About half of the internet told Cramer it was awful that he could even get the iPhone X because that meant demand was light and inventory was heavy. The other half said Apple misjudged the demand for silver iPhones. It was "damned if you do, damned if you don't," Cramer said. But Cramer wasn't having it. How could both sides of the argument possibly be bearish, he wondered? "Can we just admit that you can't fault them both ways?" he said. "You should be thrilled that they had some inventory, but not too much inventory, because too much inventory is, quite frankly, the bane of a retailer's existence. I think this is ideal. Now, granted, this whole story is anecdotal, but it suggests that Apple threaded the needle about as well as you could possibly expect them to." "If anything, I think they've made the bull case for Apple, not the bear case," Cramer concluded. "That's why I believe that, even up here, you should own, not trade, the shares of the greatest consumer products story the world has ever known."
Wall Street's most wanted
President Donald Trump celebrates with Congressional Republicans after the U.S. Congress passed sweeping tax overhaul legislation, on the South Lawn of the White House in Washington, December 20, 2017. Carlos Barria | Reuters
Cramer has noticed Wall Streeters saying that certain companies "fit the profile" for success in 2018 and others don't. "What exactly does it mean to 'fit the profile?' It means the company has to be a direct beneficiary of the new tax law and it needs to come from a cohort that's under-loved by Wall Street," Cramer said on Wednesday. Cramer started by looking at Nucor , a steel producer with a stock that has struggled through much of 2017, up only 7 percent for the year. Last week, Nucor pre-announced that it would only earn between 50 and 55 cents a share in its fourth quarter, lowering its estimates for the third quarter in a row. But shares of Nucor only momentarily dipped on the news, and the stock proceeded to climb higher. "It's a company that can do much better if the economy accelerates [and] it pays a 31 percent effective tax rate, so it stands to make a lot more money under the new law," which would cut the corporate rate to 21 percent, Cramer said. High-quality cyclical stocks like Nucor's make up Wall Street's most wanted going into 2018, so much so that Nucor could climb to $70 in the near future, Cramer predicted.
Getting bullish on Zimmer Biomet?
A robot grinds a medical implant at a plant of medical implants maker Zimmer Biomet in Winterthur, Switzerland, January 23, 2017. Arnd Wiegmann | Reuters
Over the summer, Cramer acknowledged that replacing Zimmer Biomet's CEO could be good for the company, but he didn't exactly pound the table on the stock. "Good thing we didn't jump on the bandwagon, because for the last five months, Zimmer's stock has continued to fall, almost entirely as a result of two fairly ugly quarters," the "Mad Money" host said. "But this whole time, you could see just how badly people wanted to believe." Then, on Tuesday morning, Zimmer named a permanent CEO. To Wall Street's delight, the company announced that former Medtronic executive Bryan Hanson would take the helm. "The response was as bullish as it was dramatic," Cramer said. "Immediately after the news broke, two analysts upgraded the stock, and a third analyst who upgraded it beforehand in anticipation of a good hire named Zimmer her top pick for 2018." Still, Zimmer's recent weakness is worth considering, especially for investors who are eager to jump on board with the orthopedic implant manufacturer's new leadership, Cramer said.
Foot on the gas?
A Hess truck sits at a fueling station at the company's petroleum terminal in Bogota, N.J. Emile Wamsteker | Bloomberg | Getty Images
With oil prices on the rise and in striking distance of the $60 mark, Cramer sought what he called "a spur" — a way for investors to play oil's potential turnaround. "If you don't have any oil exposure here, ... maybe you should be thinking about buying the stock of Hess , because not only does it have a spur, it's got someone saber rattling for the CEO to go and the company to put itself up for sale," the "Mad Money" host said. Elliott Management, an activist fund run by hedge-fund billionaire Paul Singer, has held a stake in Hess since 2013. But while the fund has made fortunes for investors with other energy investments like Marathon Petroleum , it hasn't had as much luck in Hess, building a large position in the oil and gas play just before oil's peak in 2014. "Hess has been a dog," Cramer said. "The stock's now at $44. Elliott wants to put the company up for sale. I don't blame them because I think the sum of the parts could be north of $75 a share."
Lightning Round: Buckling down on BKE | 2017-12-20T00:00:00 |
4,596 | https://www.cnbc.com/2016/08/03/zoetis-shares-pop-after-beating-the-street.html | ZTS | Zoetis | Zoetis' shares pop after beating the Street | Zoetis shares rose 3 percent on Wednesday after the global animal-health company beat the Street's expectations and raised its outlook.
The New Jersey–based company reported second-quarter earnings of 48 cents per share on revenue of $1.2 billion, which beat estimates of $1.17 billion, according to Thomson Reuters.
Zoetis raised its guidance for fiscal year 2016 at $1.52 to $1.63 earnings per share and forecast its revenue to be in between $4.8 billion and $4.9 billion, the company said in a Wednesday release.
The company, which researches and creates medicine for pets and livestock, attributed its positive outlook to the growth of the cattle business, sales and strong operational revenues.
"We also continue to reap the benefits of a productive, world-class R&D organization focused on new discoveries like APOQUEL and SIMPARICA, as well as lifecycle innovations across our approximately 300 product lines. Our investments in internal R&D and external business development opportunities have us well-positioned as the world leader in animal health today and into the future," said Zoetis CEO Juan Ramon Alaix.
Zoetis shares closed at $51.21 on Wednesday. The stock has gained nearly 7 percent since the beginning of the year. | 2016-08-03T00:00:00 |
4,597 | https://www.cnbc.com/2020/03/11/cramer-lightning-round-zoetis-could-be-resistant-to-recession.html | ZTS | Zoetis | Cramer's lightning round: Zoetis could be 'resistant to recession' | Zoetis : "Zoetis is a humanization-of-pets story. That story is going to be a resistant to recession, however, at the same time, the stock is up gigantically over time so I would buy it on the way down, but I do like it."
Coupa Software Inc. : "Coupa Software's the kind of company that's probably going to exceed the number and people are probably going to sell it anyway, 'cause this is the kind of market where while it's a high-growth stock, which I like, it has gone up so much over multiple years and that's when I do want you to buy 'cause this company does — is a way for companies to save money. Wait for the report."
AMN Healthcare Services : "Susan Salka is a great CEO and that is about finding about people in the health-care system. Temporary health care, well could you think of a better moment for temporary health care. I don't think I can."
Oneok : "Oneok is such a good company and Walter Hulse, who's the terrific CFO ... they do a lot of good stuff. It would be the last one I think that would cut, but they could cut 'cause they're talking about cutting the capex. ... If you have to own one of these how about that, Oneok would be the one to do it. It is the most conservative, but that group is NSH — not so hot."
BP : "BP is tough. ... It's just nasty and horrible and it stinks." | 2020-03-11T00:00:00 |
4,598 | https://www.cnbc.com/2016/05/10/william-ackman-sets-out-to-sell-800-million-in-shares-of-zoetis.html | ZTS | Zoetis | William Ackman Sets Out to Sell $800 Million in Shares of Zoetis | William A. Ackman, the billionaire founder of the hedge fund Pershing Square Capital Management, is paring back a stake in a health care stock. But it is not the one that has been generating lots of negative headlines.
On Monday, Pershing set out to sell 16.85 million shares in Zoetis , the former animal health arm of Pfizer , for a price range of $46.75 to $47 per share, according to two people with direct knowledge of the deal who requested anonymity because they are not authorized to speak publicly.
The transaction is expected to be valued around $800 million and will be managed by Bank of America Merrill Lynch and Credit Suisse. Pershing will continue to own 25 million shares in the company.
More from The New York Times:
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WilliamAckman Sets Out to Sell $800 Million in Shares of Zoetis
The hedge fund paid $1.5 billion for an 8.5 percent stake in Zoetis in November 2014, according a filing with the Securities and Exchange Commission. The stock has since gained 8.6 percent. Last year, Zoetis added William F. Doyle, a representative for Pershing Square, to its board of directors. On April 22, Pershing Square said Mr. Doyle, would step down from the board of Zoetis this week. | 2016-05-10T00:00:00 |
4,600 | https://www.cnbc.com/2024/02/28/new-pet-drugs-are-looking-a-lot-more-like-human-medications.html | ZTS | Zoetis | The pet drugs vets are now prescribing look a lot more like human medications | In this article ZTS Follow your favorite stocks CREATE FREE ACCOUNT
Monty Rakusen | Digitalvision | Getty Images
If you want to understand how different the human and animal medicine and vaccine industries have historically been, you don't need to look much further than weight loss drugs. On the human side, Novo Nordisk and Eli Lilly struggled to meet the demand for Ozempic, Wegovy, Mounjaro and Zepbound, respectively, since introducing them, as the popularity of these diabetes and weight loss treatment drugs surged in 2023. Other drug makers, like Pfizer and AstraZeneca , have outlined their strategies for getting into a market that could be worth tens of billions of dollars in the next decade, while small pharmaceutical companies are trying to grab a share in what has become the hottest part of health care. Comparatively, the first medication designed to combat obesity in dogs was ultimately pulled from the market in 2014 due to lack of interest. "I think I had one of the only dogs that was on it, and I'm going to make myself sound really bad when I explain why," said Zoetis CEO Kristin Peck, named CEO in 2020 and named to the inaugural CNBC Changemakers list on Wednesday. "I don't think a lot of people wanted to get their dogs weight loss drugs because if your dog is overweight, you have to admit that the reason is probably you're not walking it and are feeding it too much."
As the saying goes, dogs, and pets in general, have long been viewed as man's best friend. But pet pharmaceuticals haven't always matched that, and often a tick or flea collar was the lone preventive medicine many pets saw, outside of necessary vet visits. But Peck said she has seen a shift in mentality from pet owners, as well as a shift in the pharmaceutical pipeline, that is bringing animal medicine more in line with human medicine. "Newer generations see their pets very differently than previous generations," Peck said. "Fifty, sixty years ago, your dog was in the backyard; now it has moved into your house, often your bed and sometimes replaced your children — your dog or cat has a stroller, a backpack and an outfit." When Pfizer spun off its animal health business in 2013 creating Zoetis, about 65% of the company's business was livestock-related. That has flipped now, with 64% of the company's revenue coming from products for companion animals like cats and dogs. Peck has kept the company's emphasis on innovation, developing products in pet categories that didn't previously exist. For example, the company had more than $1.3 billion in revenue from dermatology-related dog and cat drugs in 2022, compared to less than $1 million from products in that same category in 2013. The company's top product in that category is Apoquel, which is designed to treat dogs who suffer from allergic itches and dermatitis. "When we said we were going to have dermatology, [the reaction] was that dogs don't need dermatology, they take some Benadryl if they itch," Peck said. "But we said we think we can create a market, and to now have over $1.3 billion in dermatology sales, if I told you that was even remotely possible five or six years ago you would have said that was crazy." Peck credits the Pfizer spinoff for allowing Zoetis to better balance what the company wanted to do in animal health versus the human health side. "We only have one customer, and we are only thinking about that every day and with every dollar we spend, whether that's on R&D, commercial or manufacturing," she said. This approach has led to the next product that Zoetis and Peck are betting on to become a $1 billion franchise: the treatment of osteoarthritis pain in dogs and cats.
watch now
In May, the FDA approved Librela, which is a monoclonal antibody treatment that can provide long-term control of OA pain symptoms in dogs, improving their mobility and overall quality of life. According to Zoetis, 40% of dogs have signs of OA, which can make it difficult for them to go up or down stairs, a hesitation to jump, limping after exercise and becoming more withdrawn. A similar product was approved for cats, marking the first time that monoclonal antibody treatments, which have become increasingly popular for treating human illnesses, have been used to treat pet osteoarthritis pain. "You can't make a monoclonal antibody for dogs in a human health facility, so you have to be willing to outlay capital during clinical trials, and that's a bold, large capital decision," Peck said. "We've demonstrated that pet owners will pay if you find a product that has value." While Zoetis is focused on bridging that gap between human and animal health products, Peck said the company is also aiming to tackle some of the unique differences, like the diagnosis process. "People with osteoarthritis, they go to the doctor, they get medication so they can live a healthier, longer and a better quality of life," Peck said. "But if my hip is killing me but no one knows that because I don't have a limp, it's like the assumption that your dog doesn't have osteoarthritis because it's not limping." In June 2022, Zoetis spent more than $50 million to acquire pet care genetics company Basepaws, which produces DNA testing for dogs and cats focused on health and early detection of disease risks. "You're going to be able to extend life by looking at genetics and biomarkers to run diagnostics," Peck said. "We'll be able to get better at predicting, which will massively improve the quality of life of animals who can't speak and can't tell you they're feeling some of the things that they are." Artificial intelligence is helping with that as well. Cats generally get less medical care than dogs due to the difficulty many owners face in bringing them to the vet, Peck said, so Zoetis has invested in AI technology that will allow cat owners to record their cat's movements, upload those videos and have AI analyze it to see if the cat is dealing with any osteoarthritis issues. Peck said Zoetis will remain focused on innovative approaches to animal health, taking some queues from human health but also forging its own path to deal with the unique challenges that come from taking care of cats and dogs. Unlike 2014, could there now be an Ozempic for dogs and cats that works? Peck said while the company continues to explore GLP-1s to treat pet diabetes, weight loss is not a current area of focus. Challenges related to cardiology, oncology and kidney disease are the highest priorities. "We recognize the success this class of medications has had in human health. In terms of treating pet obesity, our work with genetic markers could yield a more targeted opportunity for a treatment that could be effective for pets and a solution pet owners would value," she said. "A lot of the same technologies will work from humans to animals. And from animals to humans." | 2024-02-28T00:00:00 |
4,601 | https://www.cnbc.com/id/100426916 | ZTS | Zoetis | Zoetis IPO Opens at $31.50 in Largest US Deal Since Facebook | The deal for Zoetis comes as its parent Pfizer, the world's biggest drugmaker, is divesting its non-pharmaceuticals units in order to focus on its core prescription drugs business.
Last April, Pfizer sold its infant nutrition business to Nestle for $11.9 billion.
Zoetis, with annual sales of about $4.2 billion and 9,000 employees worldwide, is the largest player in the $22 billion animal health industry. It sells vaccines, diagnostics, anti-infectives and other medicines.
About two thirds of its sales are from products and services for livestock, including dairy and beef cattle, pigs, poultry and sheep. Its pet products include Revolution, a heartworm and flea-control medicine for cats and dogs, and Palladia, a cancer drug for dogs.
The business began in 1952 as the Agriculture Division of Pfizer, and has steadily grown through in-house research and almost a dozen acquisitions, including the animal health units of rival drugmakers.
French drugmaker Sanofi, Merck & Co.. and Eli Lilly have held onto their animal health units because of their dependable sales growth. Although profit margins on veterinary products are far lower than human drugs, their patent expirations are not as big a concern.
Zoetis has operations in 60 countries, including emerging markets in Asia and South America.
"As the biggest firm in the industry, Zoetis has scale that gives it significant advantages over competitors," Morningstar analyst Jim Krapfel said in a report earlier this week. "Its large product portfolio can justify an extensive salesforce and reduce distribution costs while smaller competitors must rely on expensive and less efficient distributors."
Pfizer will control roughly 80 percent of Zoetis after the IPO, which accounts for 413.9 million Class B shares. Juan Ramon Alaix, who served as Pfizer's animal health president, will be Zoetis' chief executive officer. Pfizer Chief Financial Officer Frank D'Amelio will serve as board chairman.
Large corporations like Pfizer are increasingly using spinoffs as a way to unlock value for shareholders.
In 2012, spin-offs and divestitures accounted for nearly 47 percent of all deals, the highest percentage in 20 years, according to Thomson Reuters data.
Earlier in January, Cincinnati Bell Inc spun off its data center unit CyrusOne through an initial public offering. Shares of CyrusOne are up around 12 percent since their market debut.
Last October, WhiteWave Foods spun off from dairy company Dean Foods. Shares of WhiteWave are down slightly since the offering.
"The financial engineering we see with these various spinoffs is really helping to unlock some value with larger companies," Mike Simmons, managing director and partner at HighTower Advisors, said on Thursday. HighTower manages $25 billion in client assets.
JPMorgan Chase, Bank of America/Merrill Lynch, and Morgan Stanley led the offering.
Zoetis will list its shares on the New York Stock Exchange under the symbol "ZTS." | 2013-02-01T00:00:00 |
4,602 | https://www.cnbc.com/2024/03/22/general-electric-is-among-the-most-overbought-names-on-wall-street.html | ZTS | Zoetis | General Electric is among the most overbought names on Wall Street. Here are the others | After significantly outperforming the broader market this year, shares of General Electric could see a pullback, at least according to one popular chart metric. Stocks have continued their upward march this week as the Federal Reserve left rates unchanged and maintained that cuts are coming this year. The major U.S. averages are on pace to end the week higher, with the Dow Jones Industrial Average on track for its best week since December. The S & P 500 and the tech-heavy Nasdaq Composite are both pacing for weekly gains of more than 2%. Using the CNBC Pro Stock Screener tool, we searched for the most overbought and oversold names in the S & P 500 based on their 14-day relative strength index, or RSI. Stocks with an RSI above 70 are considered overbought and may be at risk of falling, while a reading below 30 suggests a stock may be oversold and could be a buying opportunity. Here are some of the most overbought names: General Electric 's 14-day RSI of nearly 83 indicates that shares could be overbought. The company is days away from its final spinoff, in which GE will jettison its power business. On April 2 , the entity will begin trading as GE Vernova on the New York Stock Exchange under the ticker "GEV," and investors are hoping the move will unlock more shareholder value . According to LSEG, formerly known as Refinitiv, analysts still have a consensus buy rating on the stock, but think shares could lose 2.1% based on their average price target. The stock has climbed 38% since the start of the year. The GE Vernova spinoff will mark the final part of the company's process to break up its operations into three parts: health care, aviation and energy. Several oil and gas names are also overbought, according to their RSI. Valero Energy and Marathon Petroleum each have an RSI of roughly 84, while Marathon Oil and NRG Energy both have an RSI of more than 86. Each of these names are still buy-rated, according to analysts polled by LSEG. Analysts foresee declines for NRG, Valero and Marathon Petroleum, based on their consensus price targets. However, Wall Street anticipates nearly 17% upside for Marathon Oil, according to LSEG. Wells Fargo analyst Roger Read recently kept his overweight rating but upped his price target by $4 to $36 a share, saying lower material costs, faster drilling and well completion efficiencies should lead to lower costs throughout the year, mitigating inflationary pressures for oil companies. Here are the most oversold stocks in the S & P 500: Buy-rated drug company Zoetis could gain a whopping 32.6% over the next 12 months, according to analysts' average price target, per LSEG. The stock has an RSI of nearly 27, and it has slipped nearly 15% in 2024. Zoetis, a former Pfizer subsidiary that produces medicine and vaccinations for animals, last month reported fourth-quarter adjusted earnings per share that fell short of analysts' expectations. DISCLOSURES: THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer. | 2024-03-22T00:00:00 |
4,603 | https://www.cnbc.com/2023/10/10/animal-health-stock-could-gain-30percent-on-sales-of-dog-arthritis-treatment.html | ZTS | Zoetis | This animal health stock could gain nearly 30% as it ramps up sales of dog arthritis treatment | Zoetis shares have fallen about 10% since their recent peak in late July amid concerns that a weakening economy will prompt consumers to spend less on their pets. But investors may be overlooking the opportunity from a key product launch that could become one of the biggest in animal health history. A recent survey conducted by Piper Sandler shows most of the 101 veterinarians it polled expect the prices they charge and the volume of patients they see to mostly hold up in the months ahead. Pets have increasingly been elevated to the status of furry children , so it stands to reason that spending on their health-care needs would be prioritized in household budgets. "While this survey did show some modestly weakening macro data, we think the sell-off over the last month likely reflected that," said analyst David Westenberg. While Piper Sandler "modestly" trimmed earnings estimates for 2024 for animal health-care companies Zoetis, Idexx Laboratories and Elanco Animal Health , Westenberg said Zoetis' products performed well in the survey. "Librela looks like it's going to be widely used in the first year, and we think Zoetis will actually gain share in parasiticides even with new major competition," Westenberg said. Librela is a monoclonal antibody that treats the pain associated with osteoarthritis in canines. It is the first drug of its kind in the U.S. market, and about a quarter of dogs will be diagnosed with the condition at some point in their lives, according to the U.S. Food and Drug Administration. Westenberg's survey indicated more than three-fourths of the vets polled were planning to order it in its first year of launch. Zoetis already sells Solensia, a version of the drug for cats that was approved last year. Solensia rang up $30 million in sales last year, but the opportunity for Librela is even bigger, according to the analyst. ZTS YTD mountain Even with the recent pullback in Zoetis stock, shares are up more than 18% year to date. In parasiticides, Zoetis sells Simparica Trio, a chewable medication dogs can take once a month to prevent heartworm, ticks and fleas, as well as roundworms and hookworms. According to FactSet, 87% of analysts rate Zoetis a buy and carry an average price target of $223, which implies nearly 30% upside from current levels. If there is one thing clouding the picture for pet health care, according to Piper Sandler, it is continued concerns about the labor market and whether practices will be able to find enough vet technicians and veterinarians to fully staff up. Piper Sandler said 58% of the vets it surveyed said their clinics were understaffed, which means the situation has gotten worse since the firm's last poll in the first quarter. Heading into 2024, Westenberg expects the overhang of the pandemic pet boom to finally fade on vet visits. This could be helpful over a longer time horizon to Idexx, which makes diagnostic tests, because its comparisons to prior periods will improve, he said. As for Elanco, its stock is down 20% this year. FactSet said the majority of analysts, some 55%, rate the stock a hold. In the Piper Sandler survey, few vets said they would pick the company's Credelio Quattro as their primary parasiticide when it is released. While that observation isn't encouraging for Elanco, it further supports the strength of Zoetis' business. Quattro is expected to be approved in the first half of next year, Westenberg said. | 2023-10-10T00:00:00 |
4,604 | https://www.cnbc.com/2024/02/28/cnbc-changemakers-women-remaking-the-business-world-on-their-terms.html | ZTS | Zoetis | CNBC Changemakers: Fortune 500 CEOs, Naomi Osaka and Alex Cooper share a success secret | On Wednesday, CNBC is unveiling Changemakers, a new annual list of 50 women who are innovating and transforming business at the largest companies, at startups and at philanthropic organizations.
CNBC received 720 nominations and has spent the past several months, with guidance from the Changemakers Advisory Board, evaluating the applicants' impact through both quantitative and qualitative lenses, with a particular focus on their accomplishments during the past year.
The inaugural class of 2024 Changemakers spans 17 sectors. Leading the way are health care, with 22%; tech, with 14%; and consumer products and financial services, tied at 10%. It includes 15 startup CEOs and founders whose companies have a total valuation of more than $47 billion, and 11 public company CEOs overseeing firms with a combined market cap of about $170 billion. In addition, it features five women deploying technology to amplify the philanthropic impact of their organizations and four women shaking up the world of sports business. Nearly one-fifth of the women are based outside the U.S.
Each has accomplished a meaningful achievement in 2023, propelling a major business to a new level of growth and often tackling issues of significant importance to society.
Anat Ashkenazi, the CFO of pharmaceutical giant Eli Lilly, secured key manufacturing capacity at the dawn of a blockbuster weight-loss drug era and worked to lower the prices for insulin drugs amid heightened political scrutiny of prescription costs. RePurpose Global CEO and co-founder Svanika Balasubramanian is working to minimize and repurpose plastic waste alongside hundreds of consumer brands. Bobbie CEO Laura Modi has taken on the baby formula shortage with a new product, while Baby2Baby co-CEOs Norah Weinstein and Kelly Sawyer Patricof are upending the status quo in diaper manufacturing and distribution.
In some cases, Changemakers are taking their star power to build out new market opportunities. Alex Cooper is changing the podcast business and building a new kind of audio media empire. Actor Tracee Ellis Ross is changing the hair-care industry and more with Pattern Beauty. Naomi Osaka is shaking things up both on the tennis court and off with her media company and skincare line.
In reviewing the Changemakers, CNBC identified a couple of key trends. First, this new generation of women leaders is aligning purpose and profits, creating businesses that succeed when they achieve environmental or social good. At rePurpose Global, Balasubramanian created a model that succeeds when companies take steps to reduce their plastic production and environmental impact. Jessica Chang, the CEO of Upwards, is reimagining the business of child care to make it more widely accessible and affordable. Maayan Cohen created Hello Heart to help individuals manage cardiovascular health, while helping employers manage costs. | 2024-02-28T00:00:00 |
4,605 | https://www.cnbc.com/2024/02/10/5-things-next-week-that-could-determine-if-wall-street-win-streak-continues.html | ZTS | Zoetis | 5 things next week that could determine if Wall Street's winning streak continues | Wall Street wrapped up another positive week, with the S & P 500 closing Friday above 5,000 for the first time ever. The Nasdaq finished less than 0.5% away from its November 2021 record-high close. It was another big week for Club company earnings, with Estee Lauder , Eli Lilly , GE Healthcare , DuPont , Linde , Ford , Disney and Wynn Resorts all reporting. Twenty-one of our 32 portfolio names have now delivered their results this quarter. Looking more broadly, according to FactSet, three-quarters of the 67% of S & P 500 companies that have issued their numbers reported upside earnings surprises, while just about two-thirds reported better-than-expected revenue. It was a pretty light week in terms of economic data releases, though we did get a favorable ISM Services number on Monday. Things will pick up next week with several closely watched macroeconomic updates, including two key government inflation reports. While no Club earnings are scheduled to report earnings in the week ahead, 61 companies in the S & P 500 will deliver their latest quarterly results. 1. Consumer inflation: The main event of the week will come on Tuesday when the January consumer price index (CPI) is released. Economists are looking for headline CPI to advance 2.9% year over year and core CPI, including food and energy prices, to gain 3.8%. While the core PCE (personal consumption expenditure) price index is the Federal Reserve's preferred measure of inflation, CPI will provide valuable insight into what areas of the economy are seeing sticker price pressures. That, in turn, can help forecast whether there's any chance for a March interest rate cut. Right now, the market odds favor a Fed rate reduction in May or June. A cooler core CPI print, closer to the Fed's 2% target inflation rate, would likely be taken as a positive by the stock market. Really weak data could be less well received on the thought the Fed held rates high for too long. We, however, do not believe the latter to be the case. 2. Wholesale inflation: The January producer price index (PPI) is out on Friday. Economists are looking for a year-over-year headline PPI increase of 0.6%. The CPI carries more weight because it reflects the prices consumers pay. Price stability and maximizing employment are the two pillars of the Fed's dual mandate. However, PPI is important because it provides insight into input costs that companies pay. A greater-than-expected rise in input costs could lead to companies trying to protect profits by passing those higher costs through to consumers, which would be a negative in terms of getting the rate of inflation down. 3. Retail sales: January retail sales are on Thursday. While this report doesn't provide nearly as much insight into the rate of inflation as CPI, it is a gauge of consumer health. That's because nearly 70% of U.S. gross domestic product (GDP), or economic growth, is based on private consumption. If the economy is going to avoid a recession (and we think it will), we need to see consumer spending and shopping remain relatively resilient. Economists are expecting a 0.1% monthly decline, not too surprising given the comp for a January monthly reading is December, which is the last month of the holiday shopping season. 4. Other data: January's industrial production and capacity utilization report is also released on Thursday, and the January housing starts and building permits report is out on Friday. The former will provide insight into the state of manufacturing, which provides indirect insight into the health of consumer and business demand. The latter, however, is likely to garner more attention as an ongoing shortage of houses remains a key factor keeping prices high. Shelter costs are a real thorn in the Fed's side because they represent large, unavoidable cost for Americans. Anything that points to more housing supply coming online should be taken as a positive. 5. Earnings: We get a break from Club earnings next week. But things will pick back up for our portfolio names the following week. That's when Palo Alto Networks , Nvidia , Coterra Energ y and Bausch Health report. However, between now and then, there are tons of releases from non-portfolio companies to monitor for a better understanding of industry dynamics and the economy overall. As important as macroeconomic updates are, they're backward-looking and extremely high-level. Earnings releases, on the other, hand provide more up-to-date information. The reported numbers may be backward-looking but the information management teams share on their post-earnings conference calls are real-time and often provide insight as to what is currently happening on the ground. Monday, Feb. 12 Before the bell: monday.com (MNDY), Trimble (TRMB) After the bell: Arista Networks, (ANET), WM (WM), Cadence Design Systems, (CDNS), ZoomInfo Technologies (ZI), Avis Budget (CAR), Brighthouse Financial, (BHF), Goodyear Tire & Rubber (GT), Vornado Realty Trust (VNO) Tuesday, Feb. 13 8:30 a.m. ET: Consumer price index Before the bell: Shopify (SHOP), Datadog, (DDOG), Coca-Cola (KO), Biogen (BIIB), Marriott International (MAR), Hasbro, (HAS), Restaurant Brands International (QSR), GlobalFoundries (GFS), Moody's (MCO), AutoNation (AN), Zoetis (ZTS), Molson Coors Beverage (TAP), Krispy Kreme, (DNUT), Incyte (INCY) After the bell: Airbnb, (ABNB), Upstart Holdings, (UPST), Robinhood (HOOD), Lyft (LYFT), MGM Resorts (MGM), Akamai Technologies, (AKAM), American International Group (AIG), Zillow (Z), Instacart (CART), DaVita (DVA) Topgolf Callaway Brands (MODG), GoDaddy (GDDY), New Gold (NGD), Denny's (DENN) Wednesday, Feb. 14 – Valentine's Day Before the bell: Barrick Gold (GOLD), CME Group (CME), Kraft Heinz (KHC), Sony (SONY), Generac (GNRC), Blackstone Mortgage Trust (BXMT), Martin Marietta Materials (MLM), Ryder System (RR), Sunoco, (SUN), LouisianaPacific (LPX), Owens Corning (OC) After the bell: Albemarle (ALB), Twilio (TWLO), Occidental Petroleum (OXY), Energy Transfer (ET), Cisco Systems, (CSCO), AppLovin (APP), Fastly (FSLY), Upwork (UPWK), TripAdvisor, (TRIP) Thursday, Feb. 15 8:30 a.m. ET: Initial jobless claims 8:30 a.m. ET: Retail sales 9:15 a.m. ET: Industrial production & capacity utilization Before the bell: Crocs (CROX), Deere (DE), Penn Entertainment (PENN), Yeti (YETI), Wendy's (WEN), Oatly (OTLY), Shake Shack (SHAK), Southern Company (SO), Stellantis (STLA) After the bell: DraftKings (DKNG), Coinbase Global (COIN), Roku (ROKU), Trade Desk (TTD), Applied Materials (AMAT), DoorDash (DASH), Toast (TOST), Yelp (YELP), Ingersoll-Rand (IR), Texas Roadhouse (TXRH), Dropbox, (DBX) Friday, Feb. 16 Before the bell: Cinemark (CNK) 8:30 a.m. ET: Housing starts and building permits 8:30 a.m. ET: Producer price index (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
People walk by the New York Stock Exchange in New York City on Dec. 29, 2023. Spencer Platt | Getty Images | 2024-02-10T00:00:00 |