Elite Stocks

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>>> Saia sees 19% jump in February shipments


Freight Waves

by Todd Maiden

March 4, 2024


https://finance.yahoo.com/news/saia-sees-19-jump-february-224344083.html


Less-than-truckload carrier Saia Inc. reported an 11% year-over-year (y/y) increase in tonnage per day during February. The increase was the combination of a 19% jump in shipments, which was partially offset by a 6.7% decline in weight per shipment.

The y/y per-day growth rates accelerated from January, when the carrier’s shipments increased 11.8% and tonnage was up 3.3%. Inclement weather in January led to a larger-than-normal number of terminal closures during the month. Saia (NASDAQ: SAIA) also had an easier tonnage comp in February (down 7.6% last year), which was twice the decline that was logged in January 2023.

The February increases were a little better than the fourth quarter, when shipments were up 18% y/y and tonnage increased 8%.

March is a big month for LTL carriers and volumes in the period will dictate results for the first quarter. The month also provides a strong indication on demand for the full year.

Saia doesn’t provide any revenue-based metrics like yields or revenue per shipment in its intraquarter updates, however, management said on its fourth-quarter call in February that it expects revenue per shipment to increase by a low-single-digit percentage in 2024.

The company is executing a big growth plan this year. A $1 billion capital expenditures outlay includes roughly $550 million for real estate. The budget includes the 28 terminals it recently acquired from bankrupt Yellow Corp. (OTC: YELLQ) as well as other additions and expansions. In total, it expects to grow its net door count by 12% to 14% this year.

The bulk of the remaining budget will be used to purchase tractors and trailers.

Other carriers like ArcBest (NASDAQ: ARCB), Old Dominion (NASDAQ: ODFL) and XPO (NYSE: XPO) are expected to provide updates for February in the coming days.

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Morgan Stanley upgrades Pepsi - >>> Here's Why PepsiCo Stock Popped Today


by Jon Quast

Motley Fool

March 18, 2024


https://finance.yahoo.com/news/heres-why-pepsico-stock-popped-192623777.html


Shares of beverage and snacking giant PepsiCo (NASDAQ: PEP) popped on Monday after an analyst upgraded his outlook and raised his price target. As of 1:15 p.m. ET, Pepsi stock was up 4%, which is a big move for this usually sleepy stock.

Pepsi's most exciting opportunity

Morgan Stanley analyst Dara Mohsenian is one of the highest-rated and listened-to analysts out there and he's turning heads with his commentary on Pepsi stock today. Mohsenian reportedly is looking to Pepsi's growth in international markets and the valuation of its stock as reasons for bullishness. Accordingly, the analyst raised the price target for Pepsi stock to $190 per share, according to The Fly.

Mohsenian isn't alone in his bullishness for Pepsi in international markets; CEO Roman Laguarta shares his optimism. In the earnings call for the fourth quarter of 2023, Laguarta said, "The international opportunity continues to be probably the most remarkable and exciting opportunity that we have as a company."

Considering Pepsi is a business valued at over $230 billion, that's a big deal and why the market is excited today.

Is Pepsi stock undervalued?

Regarding Pepsi's valuation, it looks pretty average to me, which differs from Mohsenian's belief that the valuation is cheap. Its current price-to-earnings (P/E) ratio is 26, which is right at its 10-year average.

That said, the reason that Laguarta is excited about Pepsi's growth in international markets is because it's now almost a $40 billion business outside of the U.S., gaining enough scale to have better profit margins. Therefore, as business grows in those markets, profits should grow at a faster pace.

In light of this, it's possible that Pepsi's profits could go up faster than what some investors expect in coming years. If that happens, then perhaps Pepsi is undervalued on a forward basis even if its valuation looks average on a trailing basis. In this case, Mohsenian's point is well taken and his price target of $190 would be easily attainable.

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ADP, PAYX, BR - >>> 3 Stocks to Watch From a Growing Outsourcing Industry


Zacks

by Soumyadeep Bose

February 19, 2024


https://finance.yahoo.com/news/3-stocks-watch-growing-outsourcing-153300569.html


The Zacks Outsourcing industry has experienced significant growth, driven by various economic, technological and business factors. Key drivers include the pursuit of cost savings, access to a pool of skilled talent and the opportunity to focus on core competencies. According to a report by ReportLinker, the outsourcing sector is projected to see substantial expansion, with an estimated growth of $75.89 trillion between 2023 and 2027. This growth is expected to maintain a steady compound annual growth rate (CAGR) of 6.5%, reflecting the industry's resilience and attractiveness to businesses seeking efficient solutions.

Automatic Data Processing, Inc. ADP, Paychex, Inc. PAYX and Broadridge Financial Solutions, Inc. BR can be considered by investors from the in-focus Outsourcing market.

About the Industry

Outsourcing involves delegating a company's internal operations to external resources or third-party contractors to enhance operational efficiency. Within the Zacks Outsourcing sector, you'll find companies that provide human capital, business management and IT solutions, primarily catering to small- and medium-sized enterprises. These services encompass a broad spectrum, including HR support, payroll management, benefits administration, retirement planning and insurance services. Certain firms excel in delivering business process services, with a strong focus on transaction processing, analytics and global automation solutions. This outsourcing approach empowers businesses to concentrate on their core competencies while external experts manage these critical functions.

5 Trends Shaping the Future of Outsourcing Industry

Rising Demand Environment: The industry has gained traction over the past year, thanks to the recent advancements in the field of technology and the onset of remote work. Revenues, income and cash flows have been growing in the past year, aiding many industry players to pay out stable dividends.

Continued Growth of Business Process Outsourcing (BPO): Most outsourcing activities occur at lower levels within the organizational hierarchy. Per Grand View Research, the global market for BPO reached a valuation of $261.9 billion in 2022 and is expected to witness a compound annual growth rate (CAGR) of 9.4% from 2023 to 2030. The demand for these services remains high due to their advantages, including greater flexibility, cost reduction and improved service quality.

Relevance of IT Outsourcing: The IT Outsourcing market is projected to generate revenues of approximately $460.10 billion in 2023, with an anticipated CAGR of 11.07% from 2023 to 2028. The upside is expected to lead to a market size of about $777.70 billion by 2028. In the future, outsourced IT services will cover a wide range of functions, including programming and technical support. Organizations can outsource entire IT departments to cut costs and focus on core tasks. A significant driver of outsourcing trends will be the shortage of in-house engineering talent.

Rising Importance of Cybersecurity: Heightened public awareness and evolving cyber threats, like ransomware and national-level cyberattacks, have led to a growing demand for robust data encryption and cybersecurity measures. Companies prioritize employee security awareness training and breach detection systems to prevent cybersecurity incidents. To address these challenges, businesses increasingly turn to outsourced cybersecurity services to mitigate risks, maintain compliance and support scalability in their operations.

Emerging Technology Trends: Trends like the Internet of Things (IoT), cloud computing, Artificial Intelligence (AI) and Machine Learning (ML) are on the verge of reshaping the outsourcing sector. These innovations propel efficiency, foster innovation and bolster competitiveness, altering the delivery of outsourcing services and opening novel avenues for businesses to enhance their operational efficiency. For instance, IoT data can be collected, processed and analyzed in the cloud, enabling real-time decision-making and predictive maintenance for clients. By integrating AI and ML into customer support outsourcing, companies can provide faster, more efficient and consistent customer support while optimizing operational costs.

Zacks Industry Rank Indicates Encouraging Prospects

The Zacks Outsourcing industry, which is housed within the broader Zacks Business Services sector, currently carries a Zacks Industry Rank #93. This rank places it in the top 37% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates continued outperformance in the near term. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

The analysts covering the companies in this industry have been increasing their estimates. Over the past year, the industry’s consensus earnings estimate for the current year has increased 1.9%.

Before we discuss several stocks that investors may consider holding due to their growth potential, let's first examine the recent performance of the industry in the stock market and its current valuation.

Industry's Price Performance

The Zacks Outsourcing industry has lagged the broader Zacks Business Services sector and the Zacks S&P 500 composite over the past year.

The industry has gained 13.5% over this period compared with 22.4% gain of the broader sector and a 23% increase of the Zacks S&P 500 composite.

Industry's Current Valuation

On the basis of forward 12-month price-to-earnings (P/E), commonly used for valuing outsourcing stocks, the industry is currently trading at 20.41X compared with the S&P 500’s 20.72X and the sector’s 26.21X.

In the past five years, the industry has traded as high as 30.82X, as low as 18.23X and at the median of 24.4X, as the charts below show.

3 Outsourcing Stocks to Consider

Here are three stocks from the outsourcing space with bright near-term prospects. Paychex currently has a Zacks Rank #2 (Buy), while BR and ADP have a Zacks Rank #3 (Hold) each.


Paychex is a prominent provider of integrated HCM solutions, offering payroll, human resource, retirement and insurance services tailored to the needs of small- to medium-sized businesses. Paychex exhibits strength, driven by robust revenue growth and its commanding position in the outsourcing market. The company is actively pursuing opportunities in the professional employer organization industry. At the same time, its steadfast commitment to consistent dividend payouts and share buybacks enhances investor confidence and contributes to earnings per share.

Paychex provided its fiscal 2024 outlook wherein adjusted earnings per share are expected to register 10-11% growth, up from 9-11% expected previously. PAYX reaffirmed its expectation of total revenues to register 6-7% growth.

Management Solutions’ revenues are expected to grow around 5-6%. PEO and Insurance Solutions revenues are expected to grow 7-9%, up from the previously guided 6-9%. Interest on funds held for clients is anticipated to be in the range of $140-$150 million. The company expects operating margin in the range of 41-42%.

The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $5.33 billion, indicating a 6.5% increase from the year-ago reported figure. The consensus mark for earnings is pegged at $4.72, indicating growth of 10.5% from the year-ago reported figure. The estimate has been slightly revised northward in the past 60 days.


Broadridge Financial is a global fintech firm known for providing tech-driven solutions and investor communication services to banks, broker-dealers, asset managers and issuers, with a reputation for producing and distributing critical financial documents. Its robust business model, driven by growing recurring fee revenues and strategic acquisitions, positions it well for revenue growth, supported by a diverse product portfolio. Broadridge excels in implementing its growth strategy in governance, capital markets and wealth management, seizing opportunities in the tech solutions space, including digital, AI, cloud and blockchain, through acquisitions.

For fiscal 2024, Broadridge expects recurring revenue growth in the range of 6-9%. Adjusted earnings per share growth is expected to be in the 8-12% range. Adjusted operating income margin is estimated to be around 20%. Closed sales are anticipated between $280 million and $320 million.

The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $6.54 billion, suggesting an increase of 7.9% from the year-ago reported figure. The consensus mark for earnings is pegged at $7.72, indicating growth of 10.1% from the year-ago figure. The estimate has remained unchanged in the past 60 days.


Automatic Data Processing is a top-tier provider of cloud-based Human Capital Management (HCM) technology solutions, offering global employers comprehensive services such as payroll, talent management, HR, benefits administration, and time and attendance management. By strategically acquiring firms like Celergo, WorkMarket, Global Cash Card and The Marcus Buckingham Company, the company sustains its dominant position in the HCM market, underpinned by a robust business model, significant recurring revenues, attractive profit margins, outstanding client retention and minimal capital outlays.

For fiscal 2024, ADP still expects revenues to register 6-7% growth. Adjusted EPS is expected to register 10-12% growth. The adjusted effective tax rate is estimated to be approximately 23%. Adjusted EBIT margin is expected to grow 60-70 bps, down from the previously guided 60-80 bps.

Automatic Data Processing expects Employer Services revenues to grow at a rate of about 7-8%, while PEO Services revenues are expected to grow 3-4%.

The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $19.15 billion, calling for a 6.3% rise from the year-ago reported figure. The consensus mark for earnings per share is pegged at $9.14, indicating growth of 11.1% from the year-ago reported figure. The estimate has remained unchanged in the past 60 days.

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>>> Oracle Posts Biggest Gain Since 2021 on Cloud Revenue Growth


Bloomberg

Brody Ford

Mar 12, 2024


https://finance.yahoo.com/news/oracle-set-biggest-gain-since-091209365.html


(Bloomberg) -- Oracle Corp. shares posted their biggest gain in more than two years after reporting a spike in bookings in its cloud computing business, showing progress in its bid to capture more of the competitive market.

Remaining performance obligation — a measure of Oracle’s sales backlog — was $80 billion at the end of the quarter ended in February. That was significantly ahead of the $59 billion expected by analysts. Chief Executive Officer Safra Catz pointed to this figure, which she said was driven by “large new cloud infrastructure contracts signed in the third quarter,” as evidence of momentum.

The stock rose 12% to close at $127.54 in New York, a record high. Shares had been down about 10% over the past six months through Monday’s close, lagging the iShares software ETF, which gained 16%.

The Austin-based company, known for its database software, is focused on expanding its cloud infrastructure business to compete with Amazon.com Inc., Microsoft Corp. and Alphabet Inc.’s Google. That effort has faced headwinds in recent quarters as growth rates slowed. But there were signs of stabilizing in the third quarter, with sales gaining at nearly the same pace as the three months preceding it.

“We expect to continue receiving large contracts reserving cloud infrastructure capacity,” Catz said on a conference call, adding that Oracle is “very rapidly” opening new data centers to meet demand.

Cloud revenue jumped 25% to $5.1 billion in the period that ended in February, the company said, just ahead of Wall Street’s $5.06 billion estimate. Of that, $1.8 billion came from renting out computing power and storage over the internet and $3.3 billion from applications.

The results were “certainly better than feared,” said Jefferies analyst Brent Thill in an interview on Bloomberg TV, noting that other cloud vendors like Amazon and Microsoft have similarly reported strong results recently.

Total sales in the fiscal third quarter increased 7.1% to $13.3 billion, roughly in line with analysts’ estimates, according to data compiled by Bloomberg. Excluding some items, profit was $1.41 a share, compared with the average estimate of $1.38.

Sales of Fusion software for managing corporate finance increased 18% in the quarter from a year earlier. Revenue from NetSuite, enterprise planning tools aimed at small and midsize companies, was up 21%. Revenue from both businesses gained 21% in the previous period.

After acquiring Cerner, the electronic health records company, Oracle has been focused on modernizing the legacy software business. It finished moving “the majority of Cerner customers” to Oracle cloud infrastructure in the quarter, Chairman Larry Ellison said. Further updates over the coming year, such as a new suite of applications, will transform Cerner and Oracle’s health operations into “a high-growth business for years to come,” he added.

In the current quarter, which ends in May, revenue will be up about 5%, Catz said. Cloud revenue without Cerner will be about 23%, she said. Cerner will return to revenue growth in the fiscal year ending in May 2025, Catz said, adding that it has been a “significant headwind” to revenue growth this year.

Capital expenditures will be as much as $7.5 billion in the current fiscal year, Catz said. As the company builds more data centers to meet demand for cloud computing, that spending will increase to $10 billion in fiscal 2025, she added. That’s above the average analyst estimate of about $8.9 billion.

Investors are watching capital expenditures as a proxy for future cloud demand, as it means Oracle is constructing data centers, wrote Guggenheim analyst John DiFucci. “We believe Oracle continues to face a situation in which Oracle demand is outpacing the ability to meet it.”

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>>> Deere & Company (NYSE:DE) -- Number of Hedge Fund Holders: 55

https://finance.yahoo.com/news/14-best-robotics-stocks-buy-194148400.html

Deere & Company (NYSE:DE) is a global manufacturer and distributor of farming equipment, operating in four segments – Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. In 2021, the company announced a definitive agreement to acquire Bear Flag Robotics, a Silicon Valley-based startup specializing in autonomous driving technology for existing machines. The $250 million deal aims to expedite the development and deployment of automation and autonomy in farming.

According to Insider Monkey’s third quarter database, 55 hedge funds were long Deere & Company (NYSE:DE), compared to 56 funds in the prior quarter. Bill & Melinda Gates Foundation Trust is the leading stakeholder of the company, with approximately 4 million shares worth $1.5 billion.

ClearBridge Large Cap Value Strategy made the following comment about Deere & Company (NYSE:DE) in its Q4 2022 investor letter:

“Our industrials holdings produced robust absolute returns for the quarter. While the ISM Manufacturing Index fell in November to contractionary levels, our industrial holdings have largely been able to maintain earnings due to strong competitive positions, historically large backlogs and company-specific drivers. For example, Deere & Company (NYSE:DE) continues to benefit from a strong upgrade cycle as record farmers’ income is driving broad and rapid adoption of the company’s precision agricultural equipment.”

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Amphenol, Carlisle - >>> Electronics equipment maker Amphenol to buy Carlisle's unit for about $2 bln


Reuters

January 30, 2024


https://finance.yahoo.com/news/1-electronics-equipment-maker-amphenol-134720806.html


Jan 30 (Reuters) - Electronics equipment maker Amphenol said on Tuesday it plans to buy a unit of Carlisle Companies for about $2 billion in cash.

Carlisle Interconnect Technologies (CIT), the unit that supplies cables and connectors to defense and industrial end markets, is expected to broaden Amphenol's existing portfolio.

The deal comes at a time when Amphenol is seeing growing demand for its products as countries across the world expand their investments in defense technology amid the conflict in the Middle East and the Russia-Ukraine war.

The acquisition of CIT is expected to be accretive to Amphenol's earnings per share in the first year post-closing of the deal, the company said.

The deal is expected to close by the end of the second quarter of 2024 and will be financed through a combination of Amphenol's cash on hand and its existing credit and commercial paper facilities.

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>>> Iron Mountain Incorporated (IRM) is a global leader in information management, innovative storage, data center infrastructure, and asset lifecycle management. Founded in 1951 and trusted by more than 225,000 customers worldwide, Iron Mountain serves to protect and elevate the power of our customers' work. Through a range of offerings including digital transformation, data centers, secure records storage, information management, asset lifecycle management, secure destruction, and art storage and logistics, Iron Mountain helps businesses bring light to their dark data, enabling customers to unlock value and intelligence from their stored digital and physical assets at speed and with security, while helping them meet their environmental goals.

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https://finance.yahoo.com/quote/IRM/profile?p=IRM


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>>> Insurers Rake In Profits as Customers Pay Soaring Premiums


The Wall Street Journal

by Jean Eaglesham

January 25, 2024


https://finance.yahoo.com/m/422624f8-879a-33ab-ae1a-6c8e2cc0d00d/insurers-rake-in-profits-as.html


The pain for home- and auto-insurance customers is quickly becoming investors’ gain. Insurance giants’ shares and profits are hitting records, thanks in part to steep rate hikes. The jump came after the company reported a record profit for its fourth quarter, boosted by double-digit rate increases in its business and personal insurance units...

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>>> Insight Enterprises, Inc. (NSIT), together with its subsidiaries, provides information technology (IT) hardware, software services and solutions in the United States and internationally. The company's solution portfolio includes cloud enablement, data and AI, digital strategy, intelligent applications and edge, and IoT solutions, as well as digital transformation services. It also offers cloud and data center platforms; modern workplace; and supply chain optimization solutions. In addition, the company provides software maintenance solutions that offers clients to obtain software upgrades, bug fixes, help desk, and other support services; vendor direct support services; and offers Software-as-a-Service subscription products. Further, it designs, procures, deploys, implements, and manages solutions that combine hardware, software, and services to help businesses. Additionally, the company sources, procures, stages, configures, integrates, tests, refurbishes, and redeploys IT products spanning endpoints to infrastructure; and offers software life cycle and hardware warranty services. It serves construction technology, enterprise business, financial services, health care and life sciences, manufacturing technology, retail, restaurant, service providers, small to medium business, and travel and tourism industries. Insight Enterprises, Inc., was founded in 1988 and is headquartered in Chandler, Arizona.

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>>> Hubbell Incorporated (HUBB), together with its subsidiaries, designs, manufactures, and sells electrical and utility solutions in the United States and internationally. It operates through two segments, Electrical Solutions and Utility Solutions. The Electrical Solution segment offers standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures, and other electrical equipment for use in industrial, commercial, and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies, as well as components and assemblies. It also designs and manufactures various industrial controls, and communication systems for use in the non-residential and industrial markets, as well as in the oil and gas, and mining industries. This segment sells its products through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms, and residential product-oriented internet sites; and special application products primarily through wholesale distributors to contractors, industrial customers, and original equipment manufacturers. The Utility Solution segment designs, manufactures, and sells electrical distribution, transmission, substation, and telecommunications products, such as arresters, insulators, connectors, anchors, bushings, and enclosures cutoffs and switches; and utility infrastructure products, including smart meters, communications systems, and protection and control devices. This segment sells its products to distributors. Its brand portfolio includes Hubbell, Kellems, Bryant, Burndy, CMC, Bell, TayMac, Wiegmann, Killark, Hawke, Aclara, Fargo, Quazite, Hot Box, etc. The company was founded in 1888 and is headquartered in Shelton, Connecticut.

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>>> EMCOR Group, Inc. (EME) provides electrical and mechanical construction, and facilities services primarily in the United States and the United Kingdom. It offers design, integration, installation, start-up, operation, and maintenance services related to electrical power transmission, distribution, and generation systems; energy solutions; premises electrical and lighting systems; process instrumentation in the refining, chemical processing, and food processing industries; low-voltage systems, such as fire alarm, security, and process control systems; voice and data communications systems; roadway and transit lighting, signaling, and fiber optic lines; heating, ventilation, air conditioning, refrigeration, and geothermal solutions; clean-room process ventilation systems; fire protection and suppression systems; plumbing, process, and high-purity piping systems; controls and filtration systems; water and wastewater treatment systems; central plant heating and cooling systems; crane and rigging services; millwright services; and steel fabrication, erection, and welding services. The company also provides building services that cover commercial and government site-based operations and maintenance; facility management, maintenance, and services; outage services to utilities and industrial plants; military base operations support services; mobile mechanical maintenance and services; services for indoor air quality; floor care and janitorial services; landscaping, lot sweeping, and snow removal services; vendor management and call center services; installation and support for building systems; program development, management, and maintenance for energy systems; technical consulting and diagnostic services; infrastructure and building projects; small modification and retrofit projects; and other building services. It offers industrial services to oil, gas, and petrochemical industries. The company was incorporated in 1987 and is headquartered in Norwalk, Connecticut.

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>>> Applied Industrial Technologies, Inc. (AIT) distributes industrial motion, power, control, and automation technology solutions in North America, Australia, New Zealand, and Singapore. It operates in two segments, Service Center Based Distribution, and Engineered Solutions. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, automation solutions, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, filtration supplies, as well as other related supplies for general operational needs of customers' machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company provides technical support services; engages in the distribution of fluid power and industrial flow control products; advanced automation solutions, including machine vision, robotics, motion control, and smart technologies. It distributes industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, life sciences, mining, oil and gas, primary metals, technology, transportation, and utilities, as well as government entities. The company was formerly known as Bearings, Inc. and changed its to name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.

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>>> Medpace Holdings, Inc. (MEDP)

https://finance.yahoo.com/news/next-wave-biotech-3-stocks-170425474.html

Last on our list of biostocks to buy is Medpace Holdings, Inc. (NASDAQ:MEDP), a medical device services & drug research company that offers scientifically-driven clinical development services in the pharmaceutical, medical device, and biotechnology industries. It partners with several companies in the industry and provides them with product development services and execution of clinical trials. MEDP also offers full-service Phase I-IV clinical development services up to post-marketing clinical support. Its clinical trial services include bio-analytical laboratory services, imaging services, clinical human pharmacology, and electrocardiography reading support for clinical trials.

MEDP’s strong third quarter has showcased impressive results, with revenue growing 28.3% YoY. It also beat earnings estimates by 8.82% and is highly recommended by analysts. Even though the company experienced a slight dip in its net income margin to YoY (from 17.2% to 14.3%), its GAAP net income rose to $70.6 million and a strong EBITDA margin of 18.3%. Its consistent momentum and growth make it one of our top choices for biotech stocks right now.

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>>> Aon Agrees to Buy NFP for About $13.4 Billion in Cash, Stock


Bloomberg

by Josyana Joshua and Allison Nicole Smith

December 20, 2023


https://finance.yahoo.com/news/aon-agrees-buy-nfp-13-213641576.html


(Bloomberg) -- Aon Plc agreed to buy NFP Corp. for about $13.4 billion in cash and stock as part of a push into the middle-market segment of the insurance brokerage and wealth-management business.

Funds affiliated with Madison Dearborn Partners and HPS Investment Partners are the sellers, the companies said in a statement Wednesday. The transaction will be funded by $7 billion of cash and $6.4 billion of Aon’s stock.

Aon expects to fund the cash portion with around $7 billion of new debt, according to a filing. It plans for $5 billion of it to be raised in 2024 and $2 billion raised when it completes the transaction. The new debt will span a range of maturities, subject to market conditions. NFP Chief Executive Officer Doug Hammond will continue to lead the business as an independent, connected platform within Aon, reporting to Aon President Eric Andersen.

Aon said it expects about $400 million in one-time transaction and integration costs. The combination is expected to dilute adjusted earnings per share in 2025, and break even in 2026. It will add to earnings starting in 2027, according to the statement. The deal is expected to be completed in the middle of next year.

The sale is welcome news for holders of the NFP’s high-yield debt. The company’s 6.875% bond due 2028 rose more than 8 cents on the dollar, making it Wednesday’s biggest gainer, according to Trace data.

“Every now and then Santa Claus visits the high yield market in the form of investment grade M&A,” David Knutson, senior investment director at Schroder Investment Management, said in an interview. “Not something you plan for, but it is a nice surprise.”

From Aon’s perspective, “investment-grade spreads are very compelling right now for issuers,” said Bloomberg Intelligence’s Noel Hebert, “so the funding market is as compelling as it’s been in a while.”

Similarly, the high-yield bonds of United States Steel Corp. rallied after Nippon Steel Corp., an investment-grade company, agreed Tuesday to buy the Pittsburgh-based firm for $14.1 billion.

However, the sudden wave of investment-grade M&A won’t necessarily last, said Knutson.

“The market has embraced the ‘soft landing’ narrative. This has fueled an ‘everything rally,’” said Knutson. “If future data doesn’t support this narrative, the market and buyers will lose their appetite for risk.”

UBS Group AG served as financial adviser to Aon, and Cravath, Swaine & Moore and McDermott Will & Emery were external legal counsel. Evercore Inc. acted as lead financial adviser to NFP, while Skadden, Arps, Slate, Meagher & Flom and Ropes & Gray were external legal counsel.

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>>> AMETEK, Inc. (AME)


https://finance.yahoo.com/news/10-best-mario-gabelli-stocks-163023754.html


Number of Billionaire Investors In Q3 2023: 11

AMETEK, Inc. (NYSE:AME) is an industrial products provider that sells instruments, blowers, metals, and other products. The firm expanded its presence in the medical industry in December 2023 when it bought another company for $1.9 billion.

By the end of September 2023, 38 among the 910 hedge funds tracked by Insider Monkey were the firm's investors. AMETEK, Inc. (NYSE:AME)'s largest hedge fund investor is Phill Gross and Robert Atchinson's Adage Capital Management due to its $159 million stake.

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Winmark - >>> 3 Mighty Micro-Cap Stocks to Make a Move On in Q4


Investor Place

by Will Ashworth

Sat, Nov 18, 2023


https://finance.yahoo.com/news/3-mighty-micro-cap-stocks-192758186.html


Barron’s recently published an article discussing the promise of small-cap funds heading into 2024. The rationale behind the thinking is that it’s possible any recession next year will be a small one. Small and micro-cap stocks do poorly in extended recessions.

It’s hard to know what’s going to happen next week, let alone next year. However, even when buying micro caps, it helps if you look for quality. The stronger the business, the more likely it will survive any recession that comes our way in 2024.

As the Barron’s article points out, micro caps are less likely to get bank financing in a recession, or if they do, the interest rates would be much higher than what large cap could obtain.

So, it makes sense to look for micro-cap businesses that self-finance their operations through cash flow. It doesn’t hurt if they also have business models that won’t be hurt by lower consumer spending. I would say these are businesses with high return on equity.

Who are these businesses? I’ll find my trio of micro-cap stocks to buy from the iShares Micro-Cap ETF (NYSEARCA:IWC), which tracks the performance of the Russell Microcap Index, a collection of very small U.S. public companies with market capitalizations between $4 million and $4.6 billion.

Winmark (WINA)

If there is any business positioned for a recession, it would be Winmark (NASDAQ:WINA). The Minnesota-based franchisor operates five brands that focus on resale retail: Plato’s Closet (39% of stores), Once Upon A Child (31%), Play It Again Sports (22%), Style Encore (5%) and Music Go Round (3%).

Throughout the next couple of years, its revenues will fall, but not for the reason you think.

In the nine months ended Sept. 30, Winmark generated nearly $4 million in revenue from leasing income earned from its middle market equipment leasing business. In May 2021, it decided to get out of this business.

“Winmark Corporation (Nasdaq: WINA) announced today that it will no longer solicit new leasing customers and will pursue an orderly run-off for its middle-market leasing portfolio,” Brett D. Heffes, Chairman and Chief Executive Officer stated.

So, for example, while it generated nearly $4 million in revenue in Q3 2023, 32% less than a year ago. It will be lower in the fourth quarter and every quarter after that until it has no revenue.

But consider this, in the first nine months of 2023, its gross profit from the $4 million was approximately $578,200. Its operating profit in these same nine months was $40.8 million, or 65% of its $63.2 million in revenue.

The leasing business simply wasn’t cutting it. Worse, it was a distraction from its resale operations. Not surprisingly, its stock’s appreciated by 121% since that decision 29 months ago. If you are looking for micro-cap stocks, start here.

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>>> 3 Stocks I Bet Warren Buffett Wishes He Held Onto

Once these companies fell out of favor with the Oracle of Omaha, he sold them


By Joel Baglole

InvestorPlace

Oct 9, 2023


https://investorplace.com/2023/10/3-stocks-i-bet-warren-buffett-wishes-he-held-onto/#:~:text=While%20Buffett%20has%20never%20discussed,over%20the%20last%20five%20years.


In retrospect, some of Buffet’s stock sales may have been premature.

Costco (COST): Buffett sold this grocery retailer in 2020 at the height of its profits and sales.

Taiwan Semiconductor Manufacturing (TSM): He bought and sold his stake within just a few months.

Home Depot (HD): Buffett sold this stock during the financial crisis, taking a loss on his position.


Warren Buffett is widely considered the greatest investor of all-time.

His holding company, Berkshire Hathaway has a vast investment portfolio currently worth $340 billion. While Buffett is known as a long-term, buy-and-hold investor, at times he’s been known to change the holdings in his portfolio. Buffett hasn’t hesitated to expunge entire positions if he feels his investment thesis has changed.

For example, Buffett owned stock in most of the major U.S. airlines until the Covid-19 pandemic struck in 2020. He quickly sold them all. While many of his decisions appear wise in hindsight, including the airline stocks, Buffett may have sold some stocks too early. He may even regret dumping them. In fact, certain stocks Buffett sold have gone on to rise considerably.

Let’s dissect the three stocks that I bet Warren Buffett wishes he’d held firmly.


Costco (COST)

Buffett owned shares of Costco Wholesale (NASDAQ:COST) for 20 years before selling his entire stake in the grocery retailer in 2020. The optics of his timing may appear a bit strange.

In the summer of 2020, Costco’s profits were booming as people stocked up on groceries and supplies while sheltering-in-place during the pandemic. Costco’s sales were so robust in 2020 that the company declared a special, one-time dividend payment to stockholders of $10 per share in November of that year. Buffett missed it.

Over 20 years, Buffett built his COST stock position to $1.3 billion from an initial investment of $32 million in 1999. Additionally, Buffett’s business partner and Berkshire Hathaway Vice-Chairman Charlie Munger sits on Costco’s board of directors. He personally owns more than $60 million of Costco stock. Yet Buffett dumped his entire stake in Costco at its peak in 2020. While Buffett has never discussed his reasoning of selling his Costco shares, speculation reveals he felt the stock had become overvalued.

Since Buffett sold out of Costco, its share price has gained 60%. COST stock is up 145% over the last five years. By comparison, rival grocer Kroger (NYSE:KR), which Buffett currently has a $2.17 billion stake in, has seen its share price rise 60% in the past five years, which is less than half the gain of Costco’s stock.


Taiwan Semiconductor Manufacturing Co. (TSM)

Buffett’s relationship with Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) has been puzzling. He quickly bought and then sold the stock.

The Oracle of Omaha had initially taken a $4.1 billion stake in TSM stock during the Q3 of 2022. However, by February of this year, he had reduced his holdings in the stock by 86%. Come May, he’d exited the position altogether.

Analysts initially praised the purchase of TSM stock as prescient given the explosion of demand for microchips and semiconductors. Additionally, Taiwan Semiconductor fit with the type of stocks Buffett prefers. The company manufactures more than 60% of all the microchips and semiconductors worldwide, providing a near monopoly position. Although TSM stock is almost flat since Buffett sold his position in May, the share price is up 125% over the last five years.

Many analysts expect Taiwan Semiconductor to be a big beneficiary of the boom in artificial intelligence (AI) chips. In an uncharacteristic move, Buffett publicly explained his decision to quickly sell the stock after buying it, noting he was concerned about the China-Taiwan political situation.

“Taiwan Semiconductor is one of the best managed and most important companies in the world,” said Buffett, before adding, “I don’t like its location.”


Home Depot (HD)

Buffett was once a big fan of do-it-yourself home improvement retailer Home Depot (NYSE:HD). Berkshire Hathaway initially bought HD stock in mid-2005 during the housing boom.

At its peak, Berkshire’s position in Home Depot stock totaled 3.7 million shares worth nearly $150 million. Then, the 2008 financial crisis hit, plunging the U.S. housing market into collapse. Buffett wasted little time getting rid of his entire Home Depot stake.

Shedding a quarter of its position during Q2 of 2009, it was near the market’s low point. He sold the remainder of his position in 2010. At that time, the stock was trading between $20 and $25 a share, half the price Buffett paid a few years earlier. However, since the summer of 2010, HD stock has gained 875%. The stock peaked at an all-time high of $415 a share in December 2021 during the pandemic market boom.

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Costco - >>> Is This the Single Biggest Bear Argument for Costco Stock?


Motley Fool

By Neil Patel

Oct 6, 2023


https://www.fool.com/investing/2023/10/06/is-this-the-single-biggest-bear-argument-costco/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

The mammoth retailer's historical financial performance has been stellar.

Its stock has richly rewarded investors, but it trades at an expensive multiple today.

Investors have to ask if future growth prospects justify the stock’s valuation.


It's hard to find anything wrong with this outstanding business, but investors have to be mindful of one key factor.

Many investors would agree that Costco Wholesale (COST) is a wonderful business. It has an impressive track record of steadily growing revenue and earnings, possesses a cost advantage in the retail sector, and operates a successful membership model that drives customer loyalty.

These favorable traits have led to tremendous returns. In the past decade, its shares are up 395%, beating the Nasdaq Composite by a sizable margin.

However, investors would probably be more well-informed in their understanding of the business if they also knew about Costco's biggest bear case. Let's take a closer look at this top retail stock and what investors should keep in mind.

A steep valuation

A stock that has performed as well as Costco has in the last 10 years, and even more so in recent years, is something every investor seeks for their portfolio. But right now, the shares are extremely expensive.

As of this writing, the stock trades at a trailing price-to-earnings (P/E) ratio of 40.1. That's a premium to Costco's five-year historical average of 37.4, which indicates to me that there is little margin of safety if someone were to go out and buy shares right now. In other words, the optimism and favorable perspective about this business seem to be fully priced in (and then some).

It would be accurate to say that most everyone knows how great of a business this is. As I alluded to earlier, Costco has done a wonderful job at growing its revenue and income at healthy rates in the past. Sales and diluted earnings per share (EPS) have risen at compound annual rates of 8.7% and 11.8%, respectively, in the past 10 fiscal years . And this has translated to strong stock price performance.

The business benefits from having a cost advantage, which I believe is the key source of its economic moat. Due to its tremendous scale, as demonstrated by fiscal 2023 net sales of $238 billion, Costco is the world's third-biggest retailer. This means it can flex its bargaining power over its suppliers, obtaining favorable unit costs. And these savings get passed to shoppers in the form of low prices.

What's more, Costco is able to drive customer loyalty thanks to its membership business model. Having access to low prices and high-quality merchandise is worth the $60 annual fee for the basic membership option. Customers love this, as shown by the worldwide renewal rate of 90.4%. "We ended [the] fourth quarter with 71.0 million paid household members, up 7.9% versus a year ago," CFO Richard Galanti said on the fiscal Q4 2023 earnings call.

Growth outlook

It's kind of funny that a business which sells merchandise at the lowest prices around has a very expensive stock. Consumers have long been in love with what Costco offers, so it's not a surprise that investors have been drawn to the company's shares.

But Costco's P/E ratio is really only justified if the company possesses sizable growth prospects over the next five years. This is a mature business these days, so it's likely not worth the premium valuation.

To be fair, the management team is still focused on opening more warehouses -- 23 net new locations in the last fiscal year to be exact -- which is a primary driver of the expansion strategy. Costco now has 861 warehouses across the globe. But executives do think over the next 10 years the business could open 150 more stores in the U.S. alone, adding to its 591 today. That domestic outlook, coupled with international growth opportunities, particularly in China, is definitely encouraging.

Wall Street consensus forecasts call for 5.8% revenue growth and 10.5% gains in diluted EPS annually over the next five fiscal years. These might seem like strong estimates on the surface. But these figures indicate that shares are trading at 24.4 times fiscal 2028 EPS projections of $23.30. To me, that means the stock is clearly expensive right now, making the prospect of market-beating returns much more difficult to achieve from this point forward.

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>>> Lockheed Martin Corporation (NYSE:LMT) -- Goldman Sachs’ Stake Value: $566,208,511


https://www.insidermonkey.com/blog/goldman-sachs-defense-stocks-top-5-stock-picks-1190422/5/


Number of Hedge Fund Holders: 52

Lockheed Martin Corporation (NYSE:LMT) is a company specializing in defense and aerospace, and is organized into four segments – Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. It is the largest Goldman Sachs defense stock. Securities filings for Q2 2023 reveal that Goldman Sachs owned 1.2 million shares of Lockheed Martin Corporation (NYSE:LMT) worth $566.2 million.

On July 18, Lockheed Martin Corporation (NYSE:LMT) reported a Q2 non-GAAP EPS of $6.73 and a revenue of $16.7 billion, outperforming Wall Street estimates by $0.28 and $810 million, respectively.

According to Insider Monkey’s second quarter database, 52 hedge funds were long Lockheed Martin Corporation (NYSE:LMT), compared to 58 funds in the earlier quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the largest stakeholder of the company, with 791,700 shares worth $364.4 million.

Here is what Vltava Fund has to say about Lockheed Martin Corporation (NYSE:LMT) in its Q3 2022 investor letter:

“LMT is one of the world’s largest aerospace and defense companies. The war in Ukraine has reminded investors and the wider public just how important these companies are. The aerospace and defense industry in the USA is an established oligopoly. This means that a few large firms play a dominant role. While collectively they comprise an oligopoly, individually they often have monopoly positions in particular narrower segments. Their main counterparty is the US government, a key customer in what is known as a monopsonist position. This is a rather unusual situation, but one that is very advantageous for companies such as LMT.

LMT has a strong and long-term sustainable competitive advantage ensuing from the fact that its products are developed and manufactured at an extremely high level of technology and complexity, its development and contract cycles are measured in decades, and the costs for the government to switch to alternative suppliers are high. Moreover, part of the production is classified as secret, which further takes the wind out of the sails of potential competitors. This results in a very high return on capital and admittedly a slowly but steadily growing business.

In most NATO countries, which are LMT’s customers, defense outlays are based upon the size of GDP. This is currently growing very fast in nominal terms due to inflation in most countries. A number of countries have also announced significant increases in defense budgets, whether it be Germany, which aims to get to the NATO-agreed 2% of GDP, or Poland, which wants to spend more than twice as much on defense…”

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>>> Northrop Grumman Corporation (NOC) - Goldman Sachs’ Stake Value: $273,998,676

https://finance.yahoo.com/news/goldman-sachs-defense-stocks-top-035112162.html

Number of Hedge Fund Holders: 40

Northrop Grumman Corporation (NOC) functions as a global aerospace and defense company. Its operations are divided into Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems segments. At the conclusion of the second quarter of 2023, Goldman Sachs held 601,138 shares of Northrop Grumman Corporation (NOC) worth approximately $274 million.

On August 16, Northrop Grumman Corporation (NOC) declared a quarterly dividend of $1.87 per share, in line with previous. The dividend is payable on September 13, to shareholders of record on August 28.

According to Insider Monkey’s second quarter database, 40 hedge funds were bullish on Northrop Grumman Corporation (NYSE:NOC), compared to 45 funds in the prior quarter. Donald Yacktman’s Yacktman Asset Management is a prominent stakeholder of the company, with 409,839 shares worth $186.80 million.

Like Lockheed Martin Corporation (LMT), RTX Corporation (RTX), and The Boeing Company (BA), Northrop Grumman Corporation (NOC) is one of the top Goldman Sachs defense stocks.

Harding Loevner Global Equity Strategy made the following comment about Northrop Grumman Corporation (NOC) in its Q1 2023 investor letter:

“Our other purchase was Northrop Grumman Corporation (NOC), a US defense contractor whose stock price experienced a pullback. We like that Northrop has a larger presence than its rivals in the most favorable subcategories of the defense industry-namely, nuclear weapons, space systems, and what’s known as C4ISR (which stands for Command, Control, Communications, Computers. Intelligence, Surveillance, and Reconnaissance). C4ISR refers to digital systems that translate data picked up from different sensors-such as an incoming hypersonic missile or advancing troops-into a common format, and then escalate key information to the right people. These differentiated technologies are especially relevant in a time of increased geopolitical tensions. Northrop also benefits from large barriers to entry in this stable industry, which should enable continued strong earnings and cash flow.”

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>>> Lockheed Martin’s (LMT), a Maryland-based defense giant, is a critical defense supplier for the U.S. and its allies. The company develops and manufactures advanced military aircraft. In addition, it provides air-to-ground precision strike weapon systems, tactical missiles and air and missile defense systems.


https://finance.yahoo.com/news/3-best-defense-stocks-buy-210423930.html


Lockheed Martin’s F-35 program will be a key growth driver. In 2022, the F-35 program accounted for 27% of total sales and 66% of the Aeronautics segment’s net sales. Given the rising U.S.-China tensions, the U.S. and its allies are banking on F35 fighter jets to bolster their defenses.

There are reasons for optimism after the debt ceiling deal met President Joe Biden’s $886 billion request for fiscal year 2024. As a result, the F-35 will receive funding to produce 83 F-35 aircraft. Besides, there is increasing interest from allies. For instance, Israel recently approved the purchase of 25 F-35 jets.

As orders increase, revenue growth is accelerating. In the second quarter of FY2023, the aeronautics segment grew sales 17% year-over-year. The increase was mainly due to a rise in production contracts.

Looking at the Missiles and Fire Control segment, sales were flat. While the year-over-year growth was disappointing, the backlog trend was positive. The segment recorded a backlog increase of $5.3 billion to close the quarter at $34 billion.

With a record backlog and growing revenues, the company is in a strong position to return capital to shareholders. It has a strong record of shareholder returns, having repurchased 21% of its outstanding shares in the last 10 years. Additionally, it has increased its dividend for 20 consecutive years.

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>>> Tractor Supply Company (NASDAQ:TSCO)

https://www.insidermonkey.com/blog/5-best-sp-500-stocks-for-dividend-growth-1193160/

5-Year Average Dividend Growth: 28.16%

Number of Hedge Fund Holders: 37

Tractor Supply Company (NASDAQ:TSCO) is an American retail company that specializes in catering to the needs of rural and suburban customers. In the past five years, the company grew its dividends by 28.16% on average. It currently pays a quarterly dividend of $1.03 per share for a dividend yield of 1.89%, as recorded on September 11. It is one of the best dividend stocks on our list with 14 years of consistent dividend growth.

At the end of June 2023, 37 hedge funds tracked by Insider Monkey held stakes in Tractor Supply Company (NASDAQ:TSCO), compared with 39 in the previous quarter. The collective value of these stakes is over $560.7 million.

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>>> Marsh & McLennan -- These 3 Stocks Are Safe Bets in the Event of a Market Crash

Motley Fool

8-27-23

https://www.fool.com/investing/2023/08/27/these-3-stocks-are-safe-bets-in-the-event-of-a-mar/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article

In recent years, companies have dealt with a lot of uncertainty, including the pandemic, supply chain issues, capital market volatility, climate-related disasters, and geopolitical risks. It's in this environment where Marsh & McLennan thrives.

Marsh & McLennan advises companies on managing risks and connects companies with insurers to help protect against those risks. It also provides consulting services to companies to help deal with compensation and benefits, retirement plans, managing investments, and other workplace issues.

The consultant has seen solid business growth in recent years, led by its insurance brokerage business. Insurance is a product that will always be in demand, and its brokerage business is a steady source of cash flows that can help it weather challenging economic environments. The inflationary environment, in particular, has been a tailwind for its insurance brokerage business.

According to its Marsh Global Insurance Market Index, global commercial insurance prices have risen for 23 consecutive quarters. Marsh earns commissions and fees from insurers when it refers clients to them, and as insurance prices rise, so do its earnings. The company's risk and insurance services revenue has grown 11% through six months this year, helping total revenue increase by 8% compared to last year.

CEO Dan Glaser told investors that "when the world is unsettled, the demand for our services rises." He also pointed out that the company has grown its earnings per share during every recessionary period since 1962 -- making Marsh & McLennan another safe bet to own during a potential market crash.

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Current Bill Gates portfolio (May 2023) -

Top 10 holdings (over 90%) -

31% - Microsoft (MSFT)
17% - Canadian Natl Railway (CNI)
16% - Berkshire (BRK>B)
15% - Waste Management (WM)
4% --- Deere (DE)
4% --- Caterpillar (CAT)
2% --- Ecolab (ECL)
1% --- Walmart (WMT)
<1% - Danaher (DHR)
<1% - Waste Connections (WCN)


https://www.gurufocus.com/guru/bill%2Bgates/current-portfolio/portfolio?view=table



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>>> Palantir Expands Microsoft Cloud Computing Pact To Government Agencies


Investor's Business Daily

REINHARDT KRAUSE

04/05/2023


https://www.investors.com/news/technology/pltr-stock-palantir-expands-microsoft-cloud-computing-pact-to-government-agencies/


Palantir Technologies (PLTR) on Wednesday expanded its cloud computing partnership with Microsoft (MSFT) on federal government contracts. PLTR stock fell on the news as the Nasdaq composite sold off.

In addition, a government procurement arm, FedRAMP, has approved the Palantir cloud service using Microsoft's Azure cloud infrastructure.

"This milestone expands Palantir and Microsoft's strategic partnership from the private sector to the public sector, bringing the best in class cloud components to the federal marketplace," said a Palantir news release.

William Blair analyst Louie DiPalma holds a underperform rating on Palantir stock.

"We do not view the Microsoft Azure partnership as significant," he said in a report. "Palantir already offered its Gotham and Foundry application on Amazon Web Services as a SaaS (software-as-a-service) model."

On the stock market today, PLTR stock fell 4.4% to close at 7.98. Also, Palantir stock has gained 26% thus far in 2023.

PLTR Stock: Big Government Provider

In addition, Palantir gets nearly 60% of revenue from government agencies. They use Palantir software for intelligence gathering, counterterrorism and military purposes. Also, Palantir uses artificial intelligence tools in some products.

Further, PLTR aims to grow its commercial business. The software maker is looking to expand into the health care, energy, automotive and manufacturing sectors.

Also, Palantir's big government business remains key as some large U.S. government contracts are coming up for renewal.

Meanwhile, PLTR stock holds a Relative Strength Rating of 52 out of a best-possible 99, according to IBD Stock checkup.

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>>> Aspen Technology, Inc. (AZPN) provides enterprise asset performance management, asset performance monitoring, and asset optimization solutions worldwide. The company's solutions address complex environments where it is critical to optimize the asset design, operation, and maintenance lifecycle. It offers artificial intelligence of things, aspen hybrid models, asset performance management, OSI digital grid management, and performance engineering; production optimization for commodity polymers, olefins, refining, and specialty chemicals; subsurface science and engineering; and value chain optimization for energy and polymers and specialty chemicals solutions. The company serves bulk chemicals, consumer packaged goods, downstream, food and beverage, metals and mining, midstream and LNG, pharmaceuticals, polymers, pulp and paper, specialty chemicals, transportation, upstream, and water and wastewater industries; power generation, transmission, and distribution industries; and engineering, procurement, and construction industries. Aspen Technology, Inc. was incorporated in 2021 and is headquartered in Bedford, Massachusetts.

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InMode - >>> 3 Reasons Wall Street Thinks InMode Can Rocket 47% Higher in 2023


Motley Fool

By Cory Renauer

Jan 27, 2023


https://www.fool.com/investing/2023/01/27/3-reasons-wall-street-thinks-inmode-can-rocket-47/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

InMode is a medical device maker that specializes in minimally invasive treatments with results that resemble those of liposuction.

The average price target on Wall Street for InMode represents a 47% upside.

Analysts' price targets for this stock suggest it could soon put up some big gains.


Individual investors who want help picking stocks have more than a few options to choose from, including the recommendations of Wall Street analysts. Right now, InMode (INMD 0.25%) is a medical technology stock that analysts on Wall Street can't seem to get enough of. Among those who follow InMode, the average analyst is targeting a 47% gain for the stock over the next year.

Analysts usually have considerably more resources to work with than the average retail investor. That said, you shouldn't choose stocks for your portfolio based entirely on their eye-popping price targets. Let's examine three of the reasons analysts are pounding the table for InM0ode stock to see if it deserves a spot in your portfolio.

1. InMode's share of the market for cosmetic procedures is growing

InMode develops and markets a wide range of proprietary medical devices that cosmetic surgeons can use to shape body fat and smooth out wrinkled skin. With a narrow probe inserted under the skin, the company's BodyTite device produces results similar to those of liposuction, but without any incisions.

BodyTite and other subdermal ablative treatments are responsible for around four-fifths of the company's total revenue. It also markets hands-free devices, such as Evoke, that rest on the face during treatment without ever puncturing the skin.

Despite providing a temporary solution to wrinkles, cosmetic Botox injections generate more than $2.5 billion in sales annually for AbbVie. BodyTite and similar products, with their ability to permanently alter a person's fat composition, are raising InMode's share of the market for non-invasive procedures. In the third quarter of 2022, cosmetic Botox sales rose 17% year over year, while InMode's sales rose 29%.

In the U.S. alone, the market for non-invasive cosmetic procedures reached $16.4 billion in 2021, and it's expected to grow at a 14% annual rate through 2030, according to Grand View Research. In 2022, InMode racked up about $454 million in worldwide sales, suggesting there's a lot of room for its business to grow.

2. A razor-and-blades business model

There are only so many practicing providers of cosmetic procedures, and it's just a matter of time before most operations that could make use of InMode's workstations already have one installed. Analysts with an eye on the long term are drawn to InMode because it employs a razor-and-blades business model.

In addition to earning money on initial sales of its workstations, InMode sells the consumable goods that those devices use, which need to be replaced before each procedure, and services its machines. In the third quarter, revenues from services and consumables shot up 53% year over year.

Rapidly growing consumable sales suggest InMode's products are increasingly popular among both patients and providers. Over the long run, consumables sales could allow the company to continue growing long after its workstations become ubiquitous.

3. InMode stock looks like a bargain

One of the biggest reasons Wall Street expectations suggest big gains could be around the corner is InMode's relatively low valuation. The stock trades for just 14.3 times management's adjusted earnings estimate for 2022. By comparison, the average stock in the benchmark S&P 500 index trades at 18.9 times trailing earnings.

InMode is already the go-to provider of fat-melting subdermal ablative devices, and its proprietary technology gives the company a good chance of maintaining its lucrative position over the long run. Put it all together, and you'll see why this stock is a screaming buy right now.

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ZTS, ODFL, TSCO, ASML - >>> 4 Top Stocks With High Dividend Growth to Buy in 2023 and Hold Forever


Motley Fool

By Josh Kohn-Lindquist

Jan 28, 2023


https://www.fool.com/investing/2023/01/28/4-stocks-with-high-dividend-growth-to-buy-in-2023/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

Undeniable trends in semiconductor chips and veterinary care should buoy ASML and Zoetis.

Old Dominion's earnings per share have spiked eightfold over the last decade.

Tractor Supply's surprisingly strong rewards program highlights its customer loyalty.


While high-yield dividend stocks generate more excitement than the lower yielders, dividend growth stocks may be better for buy-and-hold-forever investors. That's because many high yields are unsustainable. And the remaining group that is well-funded can often only afford tiny payout raises -- just enough to keep their annual dividend increase streak intact.

With this in mind, let's focus on four fast-growing dividends that may offer more long-term passive income potential than their high-yield counterparts. Posting annual dividend growth rates between 25% and 46% since 2018, ASML (ASML -2.41%), Old Dominion Freight Line (ODFL 4.55%), Tractor Supply Company (TSCO -0.46%), and Zoetis (ZTS -1.82%) could make sense for investors looking to maximize their future passive income.

1. ASML

While ASML's lithography technology -- using light to make patterns on the silicon wafers used in semiconductor chips -- is undeniably complex, its investment thesis is far more straightforward. Do you believe the need for semiconductor chips will grow over the next few decades?

If you answered yes, ASML's dominant leadership position in its niche might make it a classic buy-and-hold-forever investment. Holding a monopoly with its bleeding-edge extreme ultraviolet (EUV) lithography system and a roughly 80% share of the more mature deep ultraviolet (DUV) market, ASML is of paramount importance to the semiconductor industry.

Thanks to this dominant positioning, the company has averaged a 26% free cash flow (FCF) margin across the last decade. With this incredible cash generation, ASML handsomely rewards its shareholders, as evidenced by its annual dividends skyrocketing 1,600% from its first payment in 2008.

In fact, using the last 12 months' figures, ASML could triple its 0.8% dividend and still have excess free cash flow. Going forward, ASML plans to make quarterly dividend payments, as opposed to their semi-annual payments in the last few years. This is great news for dividend reinvestment plans as they will now receive ASML shares at various price points throughout the year via its quarterly payouts.

As countries weigh becoming more technologically independent, the company's lithography systems should continue to see healthy demand. Trading at 27 times FCF, ASML brings incredible dividend growth potential at a reasonable price.

2. Old Dominion Freight Line

Boasting a total return north of 1,200% over the last decade, less-than-truckload (LTL) hauling specialist Old Dominion Freight Line has smashed the market.

Almost exactly as it sounds, LTL hauling consists of picking up partial loads from multiple locations and delivering them to one or many drop-offs. While far more complicated than traditional truckload hauling, this complexity acts like a moat for Old Dominion. With nearly 11,000 tractors, 43,000 trailers, 24,000 employees, 255 service centers, and linehaul dispatchers and software needed to coordinate everything, successful new entrants to the industry are rare.

Equally as important for investors, Old Dominion's operations are best in class. Consider its profit margin and return on invested capital (ROIC) -- a measure of a company's profitability from its debt and equity -- compared to its LTL peers.

Thanks to this outsized profitability, Old Dominion decided to initiate a dividend in 2017 and has raised it by 284% in the years since. Though the company's dividend yield of 0.4% may seem diminutive, it only amounts to 9% of its net income -- leaving an incredible runway for future increases.

To top everything off, Old Dominion's price-to-earnings (P/E) ratio of 27 is well below the 40 level it often saw in 2022. Posting 43% earnings per share (EPS) growth through the first three quarters of 2022, Old Dominion looks more enticing than ever.

3. Tractor Supply Company

With 27 million members in its Neighbor's Club rewards program, Tractor Supply and its 2,100 stores are a dividend growth success story in the footsteps of Home Depot and Lowe's. Since 2010, Tractor Supply has boosted its quarterly dividend payments from $0.035 per share to $0.92 today, an increase of over 2,200%. Buoyed partly by these dividends, the company has outpaced the market over the last five years.

So how exactly does Tractor Supply do it with behemoths like Home Depot and Lowe's in its backyard? In the simplest terms, it's by being the rural version of its giant peers. Consider that almost half of the company's sales come from its livestock and pet category. Through this niche offering, Tractor Supply draws millions of farmers, ranchers, and even suburban gardeners to its stores with its adjacent, yet quite distinct, product offering and hometown feel.

Once in the company's ecosystem, these customers often sign up for its rewards program and become loyal members. For example, since the pandemic's start, Tractor Supply saw 19 million new customers -- 55% of which became repeat purchasers.

The shares trade at just 23 times earnings, and the company's 1.8% dividend only uses 35% of its total net income. Raising its last dividend by 77%, Tractor Supply makes for a fascinating dividend-growth selection to hold forever.

4. Zoetis

In a recent survey by The Human Animal Bond Research Institute and Zoetis, 86% of pet owners and veterinarians said they would pay whatever was necessary for extensive vet care. While it is sad to consider any adverse outcomes concerning our beloved pets, the fact remains that Zoetis and its array of pet and livestock vaccines and medicines should only continue growing in importance.

In fact, since going public via a spinoff from Pfizer in 2013, Zoetis posted a total return of nearly 500%. Over the last five years, the company has almost tripled the returns of the S&P 500 Index despite falling by 19% in the previous year.

In the $45 billion animal health industry, Zoetis generates 61% of its sales from companion animals (cats and dogs) and 39% from livestock. Boasting a leadership position in pets, cattle, and swine (not to mention North America, Latin America, and Asia -- geographically speaking), the company maintains a portfolio of over 300 products.

Riding this success, Zoetis has grown sales and EPS by 9% and 13%, respectively, over the last three years. Over this same time, the company raised its dividend by 25% annually and now yields 0.9% with a small payout ratio of 26%. Thanks to the megatrends working in its favor and its steady growth, Zoetis trades at a rich 37 times earnings but makes for an outstanding dividend growth stock.

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>>> ResMed Inc. (RMD) develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients' device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; U-Sleep, a compliance monitoring solution that enables home medical equipment (HME)to streamline their sleep programs; connectivity module and propeller solutions; and Propeller portal. It offers out-of-hospital software solution, such as Brightree business management software and service solutions to providers of HME, pharmacy, home infusion, orthotics, and prosthetics services; MatrixCare care management and related ancillary solutions to senior living, skilled nursing, life plan communities, home health, home care, and hospice organizations, as well as related accountable care organizations; and HEALTHCAREfirst that offers electronic health record, software, billing and coding services, and analytics for home health and hospice agencies. The company markets its products primarily to sleep clinics, home healthcare dealers, and hospitals through a network of distributors and direct sales force in approximately 140 countries. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.

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[wow_happens28]

Wait til they get to EV's

Almost every Ferrari sold since 2005 is being recalled

https://arstechnica.com/cars/2022/08/almost-every-ferrari-sold-since-2005-is-being-recalled/

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Cintas - >>> 1 Current and 1 Future Dividend Aristocrat to Buy and Hold Forever


Motley Fool

By Josh Kohn-Lindquist

Apr 2, 2022


https://www.fool.com/investing/2022/04/02/1-current-and-1-future-dividend-aristocrat-to-buy/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

Nike's digital transformation is just beginning, and its brand is stronger than ever.

Cintas continues to post strong sales growth regardless of the economic climate.

Excellent return on invested capital metrics mean these two may outperform.

These apparel-focused stocks look to continue their decades-long histories of beating the market.

While most apparel stocks make for better buy-low and sell-high candidates than genuine buy-and-hold investments, two businesses stand out as the exception: Nike (NKE 2.10%) and Cintas (CTAS -0.32%).

Despite operating in wildly different segments of the broader clothing industry, the two behemoths have smashed the S&P 500 index's returns over the last three decades.

So what exactly makes these two stocks different than the rest of their apparel peers?

Let's take a look.

Cintas

While calling Cintas a genuine apparel company is a bit of a stretch, it is home to a uniform rental service that makes up the most significant portion of its sales. Helping more than 1 million businesses get "ready for the workday," Cintas offers everything from these uniforms to COVID-19 test kits, restroom supplies, fire extinguishers, and personal protective equipment.

Despite seeming like an unexciting operation, Cintas has posted stock returns that are anything but -- rising 1,000% in just the last decade.

Perhaps most incredibly, Cintas not only survived the onset of COVID-19 -- it thrived in it.

From 2019 to 2021, earnings per share (EPS) and free cash flow steadily increased despite lockdowns that hampered the broader economy.

This fact is important to investors today, with inflation rising to 7% in the United States and forcing us to consider just how recession-proof our favorite holdings may be.

Heading into its third-quarter earnings report, Cintas faced myriad worries: inflation, escalating political tension, rising fuel prices, labor shortages, and a travel and hospitality industry that has not yet returned to full strength. However, the company went on to post 10% and 14% revenue and EPS growth, respectively, for the quarter -- showing that even with two of its main verticals -- travel and hospitality -- still struggling, it could be counted on for growth.

Furthermore, like Nike, Cintas owns a strong and growing ROIC, which clocked in at 20% as of its most recent quarter.

Thanks to this growing ROIC, the recession-proof nature of its operations, and its history as a Dividend Aristocrat, Cintas looks to be an excellent option to consider holding for the long term.

While the soon-to-be (Nike) and current (Cintas) Dividend Aristocrats pay 0.9% dividends, Cintas holds a more robust dividend growth rate of 22% annually over the last five years despite having already bumped its dividend for 38 years straight.

Ultimately, both businesses have a maximum dividend potential of nearly 3%, highlighting their promising combination of a reasonable dividend yield and a low payout ratio. So whether it is Nike's brand power or Cintas' ability to weather any economic storm, these are two great dividend growers to consider in today's volatile times.

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EXR, SBAC, FR, SUI, EQIX - >>> Who Says You Can't Beat the Market? These 5 Stocks Did


Motley Fool

By Matthew DiLallo

Apr 9, 2022


https://www.fool.com/investing/2022/04/09/who-says-you-cant-beat-the-market-these-5-stocks-d/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

Many real estate investment trusts have beaten the market over the years.

Their ability to steadily expand their portfolios and dividends has been a key value creator.

These top-performing REITs should be able to continue enriching their investors in the future.

This group of stocks has significantly outpaced the S&P 500 over the past decade.


As a whole, investors have vastly underperformed the market. According to the most recent Quantitative Analysis of Investor Behavior survey, the average equity investor has only seen a 6.2% annualized return over the last 30 years. That vastly trails the S&P 500's 10.7% annualized return.

The issue is more human nature than stock picking ability. We often let emotion get the best of us, buying when momentum is high and selling when stock prices are low. If investors take a more patient approach and hold on to stocks that have consistently beaten the market, they'd have a much better chance of outperforming. Here are five stocks that have outpaced the market by a wide margin over the last 10 years. All are in the same sector -- real estate investment trusts (REITs) -- which shows that even lower-risk investments like commercial real estate can beat the market.

Cashing in on storing stuff

Extra Space Storage ( EXR -0.03% ) has delivered a nearly 900% total return over the last 10 years. That roughly 25.9% annualized return has significantly outperformed the S&P 500's 295% total return (14.7% annualized).

The self-storage REIT has a straightforward business model. It leases space in its mini storage units to people who need extra space to store their stuff. It also manages these facilities for third-party owners. Extra Space Storage has generated such amazing returns by steadily raising rental rates and expanding its portfolio. That's given it the cash to pay a growing dividend. With demand for storage space remaining strong, the REIT should be able to continue growing in the future.


Towering growth

SBA Communications ( SBAC 0.22% ) has delivered a nearly 630% total return over the last decade (22% annualized). The infrastructure REIT has provided those fantastic returns by steadily expanding its cell tower portfolio. That has allowed it to benefit from the growing demand for communications infrastructure.

Last year, SBA Communications bought cell towers in Tanzania and started building new ones in the Philippines, adding two more growth markets to its portfolio. It now operates in North, Central, and South America, South Africa, Tanzania, and the Philippines. With demand for data infrastructure expected to keep growing, SBA Communications should be able to continue expanding in the coming years.


Building value

First Industrial ( FR -1.09% ) has generated a nearly 550% total return over the last 10 years (20.5% annualized). The industrial REIT has benefited from growing demand for logistics real estate like distribution centers.

Development has been a significant contributor to First Industrial's ability to create shareholder value. It has invested over $1.1 billion to develop roughly 15.2 million square feet of warehouse space over the last six years. These investments have created an estimated $868 million in value for shareholders. With an extensive development pipeline, First Industrial should be able to continue growing value for its investors in the coming years.


Homing in on consolidated fragmented industries

Sun Communities ( SUI 0.40% ) has delivered a more than 510% total return in the last decade (19.9% annualized). The residential REIT has grown shareholder value by acquiring and developing non-traditional residential real estate like manufactured home communities, RV resorts, marinas, and holiday parks. It has purchased $9.6 billion of these properties since 2010.

Sun Communities' consolidation strategy saw it invest $1.5 billion to acquire 11 manufactured home communities, 24 RV resorts, and 21 marinas last year. The REIT also unveiled a $1.3 billion deal to acquire the second-largest holiday park owner in the U.K. The company sees an enormous opportunity to continue consolidating those fragmented sectors, which should drive steady growth for years to come.


Dialed into the data infrastructure boom

Equinix ( EQIX -2.22% ) has produced a more than 500% total return in the last decade (19.7% annualized). The data center REIT has benefited from the growing demand for infrastructure to store data.

Equinix has invested billions of dollars in building and buying new data centers. The company recently entered Africa by acquiring MaineOne in a $320 million deal and expanded into Chile and Peru by acquiring four data centers from Entel for $705 million. It also plans to invest more than $2 billion in 2022 to develop additional data centers worldwide. With demand for data infrastructure expected to continue growing, Equinix should have no shortage of expansion opportunities.

Lots of ways to win

Many REITs have beaten the market by steadily expanding their portfolios and dividends. The key for investors is to find a great REIT and then hold on and let it grow shareholder value over the long term. These five are an excellent place to start. They all have a history of creating value for investors and have a long growth runway still ahead.

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>>> Abbott Labs


By Justin Pope

Mar 17, 2022


https://www.fool.com/investing/2022/03/17/want-1-million-in-retirement-invest-150000-in-thes/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


The healthcare conglomerate has gone through some changes since spinning its pharmaceutical business out as AbbVie almost a decade ago. Today, Abbott Labs ( ABT 0.77% ) is positioned primarily in consumer products, medical devices, analytics, testing, and making generic drugs for emerging markets.

Abbott is positioned to cater especially to the cardiology and diabetes fields, which are both fast-growing; heart disease and diabetes are among the most prevalent health conditions in the population. Abbott sells devices for them, including pacemakers, catheters, stents for cardiovascular applications, and a glucose monitoring system for diabetes patients. The company's revenue growth has picked up, growing more than 15% annually over the past five years.

This renewed growth could set the company to perform well over the next decade. Analysts believe Abbott will grow EPS an average of 10% annually over the next three to five years. Abbott also has a storied dividend history that goes back decades before its split with AbbVie. Investors can get a dividend yield of 1.6% on today's share price, which results in low-double-digit total investment returns if the stock's valuation remains constant.

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[wow_happens28]

Food, like most other things are now controlled by the same corporations that control all the poiticians and government as a whole. The FDA? CDC? Etc. all controlled goverment agencies.

Like 2004 Pfizer gets Lipator on the maket the same time as acceptable levels of cholesterol are dropped by 30%. Yep, acceptable leves of bad chit in our food are lowered when ever if fits a food better.

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'Great minds think alike' :o)


Actually, nutrition/organic food is where people will logically gravitate toward after ~ age 50. Previously I had a steady diet of fast food, pizza, hoagies, and TV dinners, with minimal exercise. But at a certain age (~50) you can no longer get away with such brazen neglect, and have to get things together if you want to make it to 65 or longer.

But one thing about store bought organic food these days is they have made the 'organic' criteria less strict, allowing the use of 'non-persistent' pesticides/herbicides, etc. It's still way better than non-organic, but the best solution is to grow your own food, at least have a vegetable garden or small greenhouse.

One of the attractions of hydroponic and aeroponic farming is that it doesn't require use of pesticides/herbicides. But the downsides include the reliance upon humans (as opposed to nature) to determine the type and quantity of nutrients given to the plants, etc. Better to leave that complex aspect to Mother Nature.

Unfortunately, chemical farming quickly destroys the micro-organisms in the soil that provide the minerals and trace minerals for the plants. So you really need to grow your own food on your own land.

[wow_happens28]

gfp, it is interest you liked my ""Life is not measured by the number of breaths you take, but by the moments that take your breath away--Wows happen!!!"

Then you direct me to 'Food as Medicine'. We might have some kind of mental telepathy or such, lol. Look at my Twitter account>>>>>

wowhappens28
@EatAllOrganic

“Let food be thy medicine and medicine be thy food” ~Hippocrates

https://twitter.com/EatAllOrganic

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>> no longer young <<


I'm getting up there too (66), but figure the best strategy is to concentrate on the things we have some control over (family, diet, exercise, hobbies/interests, etc).

These days it's easy to get disillusioned, but the world has always been screwed up to a large degree, and that isn't likely to change. Individually, our lives are fleeting, so no sense dwelling too much on the negative.

You have a great philosophy - "Life is not measured by the number of breaths you take, but by the moments that take your breath away--Wows happen!!!"


Btw, here's a new board - 'Food as Medicine' -

https://investorshub.advfn.com/Food-as-Medicine-40084/

[wow_happens28]

Maybe some day you will find the Holy Grail, keep looking. I still am. I was once young and had dreams. Now after many years of hard work, I am now no longer young,

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>> all the work <<


And after all that work, I ended up using the S+P 500 ETF as the main stock vehicle, lol..

But it's fun and interesting to follow all these sectors and get things organized. I have this 'thing' for collecting and organizing, maybe a type of compulsive behavior.

Trump said he is 'borderline' OCD, and has his clothes perfectly organized, ties sorted by color, etc. I guess there are worse traits that a person could have. I figure it's better than getting in bar room fights and chasing floozies :o)

[wow_happens28]

WOW, thanks for all the work you put into all your boards, this one is incredible

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>>> Cadence Design Systems, Inc. (CDNS) provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification. The company also provides digital IC design products, including Genus logic synthesis and RTL power solutions, as well as Modus software solution to reduce systems-on-chip design-for-test time; physical implementation tools, including place and route, optimization, and multiple patterning preparation; and signoff products to signoff the design as ready for manufacture by a silicon foundry. In addition, it offers custom IC design and simulation products to create schematic and physical representations of circuits down to the transistor level for analog, mixed-signal, custom digital, memory, and radio frequency designs; and system design and analysis products to develop printed circuit boards and IC packages, as well as to analyze electromagnetic, electro-thermal, and other multi-physics effects. Further, the company provides intellectual property (IP) products consisting of pre-verified and customizable functional blocks to integrate into customer's ICs; and verification IP and memory models to verify the correct interaction with dozens of design IP interface protocols. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. Cadence Design Systems, Inc. was incorporated in 1988 and is headquartered in San Jose, California.

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>>> AptarGroup (ATR) Eyeing Voluntis to Expand in Digital Therapeutics


Zacks Equity Research

June 23, 2021


https://finance.yahoo.com/news/aptargroup-atr-eyeing-voluntis-expand-152703648.html


AptarGroup, Inc. ATR is in discussions to acquire Voluntis in a bid to expand its digital therapeutic solutions and digital health services across various chronic conditions and diseases.

Digital therapeutics (DTx) help patients and caregivers treat or prevent diseases through evidence-based interventions supported by high quality software solutions. DTx is used independently or in connection with medications, devices and other therapies to enhance patient care and health outcomes.

Voluntis’ Theraxium platform helps patients manage their treatment with assistance from healthcare providers. This platform provides real-time decision support for an extensive range of chronic diseases, while enabling healthcare providers to remotely monitor the patient’s treatment process and the development of the disease.

This buyout will provide AptarGroup an immediate access to an established proprietary platform and algorithms, which will enhance digital solutions for biotech and pharmaceutical customers as well as other healthcare investors. The company will be able to serve patients and healthcare professionals with a varied range of effective tools to improve clinical outcomes by combining digital therapeutics with AptarGroup’s existing digital health portfolio of connected devices.

This strategic investment will help expand AptarGroup’s digital healthcare offerings and drive innovation in the healthcare space. Per the anticipated deal, Aptar will buy 64.6% of Voluntis share at €8.70 per share for €50.8 million ($61.5 million). The company plans to fund this deal with its existing cash in hand. After the deal’s closure, the transaction is likely to have a dilutive impact on the company’s adjusted earnings per share in the range of 1 cent per share to 2 cents per share for 2022.

AptarGroup’s innovative solutions and services serve a wide range of end markets, comprising pharmaceutical, beauty, personal care, home, food and beverage. Its Pharma segment has been witnessing higher sales to the injectables and active material science solution markets owing to solid demand for vaccine components and active material science solutions.

The Pharma segment’s active material science technology was selected to protect two new at-home COVID-19 tests that have received Emergency Use Authorization from the FDA. In the prescription drug market, the company’s unidose powder device is being used in a pivotal trial of intranasal powder-based Naloxone by Nasus Pharma. Also, a new nasal spray treatment for allergic rhinitis features AptarGroup’s nasal spray device. In the injectables market, the company continues to support various COVID-19 vaccine distributions across all regions.

Price Performance

The company’s shares have gained 35.2% over the past year compared with the industry’s growth of 43.8%.

AptarGroup currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the industrial products sector are Tennant Company TNC, Encore Wire Corp. WIRE and Arconic Corp. ARNC. All of these stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tennant has an anticipated earnings growth rate of 49.5% for 2021. The company’s shares have gained around 18%, year to date.

Encore Wire has an estimated earnings growth rate of 49.5% for the ongoing year. Year to date, the company’s shares have rallied nearly 36%.

Arconic has a projected earnings growth rate of 447% for the current year. The stock has appreciated around 21%, so far this year.

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>>> Neogen, Center for Aquaculture Technologies Partner to Develop Aquaculture Genotyping Tools


Yahoo Finance

June 24, 2021


https://finance.yahoo.com/news/neogen-center-aquaculture-technologies-partner-180000602.html


LINCOLN, Neb., June 24, 2021 /PRNewswire/ -- NEOGEN Corporation (NASDAQ: NEOG) announced today that they have partnered with the Center for Aquaculture Technologies (CAT) to deliver high-quality genotyping services customized to the unique needs of aquaculture producers.

The complementary expertise of NEOGEN and CAT will apply modern sequencing and genotyping technologies to aquaculture species. The partnership will enable organizations of any size to realize the benefits of increased accuracy of selection and gains in performance by incorporating genetic markers into their selective breeding programs.

"We are pleased to strengthen our partnership with the Center for Aquaculture Technologies and continue providing innovative genomic solutions that strengthen our global food chain," says John Adent, NEOGEN's President and CEO. "Together, we can empower members of the aquaculture sector to make more informed breeding decisions."

"We are very excited to have NEOGEN as a partner — they are world leaders in agricultural genotyping, and it's a great complement to our expertise in the aquaculture industry," said John Buchanan, CEO of the Center for Aquaculture Technologies. "They have been great partners, and we are looking forward to working closely with them on projects in the future."

"CAT's expertise in the aquaculture industry and our global leadership within the world of genomics make us the perfect partners going forward," says Marylinn Munson, NEOGEN's Vice President of Genomics. "In partnership with CAT, we will be able to create new products and solutions that enrich the aquaculture sector and ensure sustainable farming at every level."

NEOGEN and CAT have previously partnered to develop cost-effective genomic solutions for the aquaculture sector, including the GeneSeek® Genomic Profiler™ (GGP) 50K genotyping array for North American Atlantic salmon and whiteleg shrimp, which are now commercially available through CAT, as part of their AQUAarray line.

The Center for Aquaculture Technologies is a global, full-service, contract R&D organization that is focused on the application of technologies to improve productivity, efficiency, and sustainability in the aquaculture industry. CAT is home to a unique combination of world-class scientists bringing together complementary expertise in fish health, nutrition, and genetics working in state-of-the-art facilities to deliver innovative, tailor-made solutions for organizations in the sector. For more information, visit www.aquatechcenter.com.

NEOGEN Corporation develops and markets comprehensive solutions dedicated to food and animal safety. The company's Food Safety Division markets dehydrated culture media and diagnostic test kits to detect foodborne bacteria, natural toxins, food allergens, drug residues, plant diseases, and sanitation concerns. NEOGEN's Animal Safety Division is a leader in the development of genomic solutions along with the manufacturing and distribution of a variety of animal healthcare products, including diagnostics, pharmaceuticals, veterinary instruments, wound care, and disinfectants.

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>>> Is Cintas Stock a Smart Reopening Buy?

U.S. workers are getting back to on-site jobs -- and back into those jobs' uniforms. But is this big uniform rental company too optimistically priced?


Motley Fool

by Lee Samaha

Jul 23, 2021


https://www.fool.com/investing/2021/07/23/is-cintas-stock-a-smart-reopening-buy/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


Key Points

The post-pandemic period will open up new growth opportunities for Cintas.

Management's guidance looks conservative in the context of its historical growth rates and the expected boost from the reopening recovery.


Uniform rental and facility services company Cintas (NASDAQ:CTAS) has been a stellar performer over the years, with the stock rising nearly 300% in the last half-decade. The reason comes down to its success in convincing more companies to outsource their uniform provisioning to it, and also convincing them to buy an array of everyday facility servicing products (mops, floor mats, fire protection services, etc.) from it. The company has been a great long-term story, and as the economy reopens, Cintas is surely positioned to benefit. However, the key question potential new investors need to answer is whether the stock is a good value now.

Cintas as a reopening play

The case for Cintas being a reopening investment is simple: As workers return to their jobs in factories, healthcare facilities, foodservice outlets, hospitality industries, etc., revenues from its core uniform rental business will rebound. In addition, the COVID-19 pandemic has created a heightened interest in cleanliness and healthiness in the workplace. That should benefit Cintas' business of providing and routinely cleaning working uniforms, as well as its facility services segment.

None of the above is in doubt. Indeed, on the recent fiscal 2021 fourth-quarter earnings call, for the period that ended May 31, management guided toward revenue in the range of $7.53 billion to $7.63 billion for its fiscal 2022, which would amount to growth in the range of 5.8% to 7.2%. That's in line with the company's annual organic growth rates of 5% to 7% over the last decade.

Those are also the kind of numbers that gave CEO Todd Schneider the impetus to explain during the earnings call that Cintas' "successful long-term financial formula is organic revenue growth in the mid-to-high single digits, double-digit earnings-per-share growth, significant cash generation."

Frankly, any business that can grow its earnings at a rate above 10% over the long term deserves to be priced like a growth stock, and investors should be willing to pay up for it in terms of valuation. In addition, management's guidance assumes that sales of personal protection equipment (PPE) won't maintain their fiscal 2021 levels, on the basis that the pandemic is easing. However, Schneider did say that Cintas' revenue growth would be above 8% if PPE sales did match those levels again -- a wild card for investors to look out for.

Two flies in the ointment

The two caveats regarding Cintas' stock are arguably conjoined. First, the fact that its revenue guidance is only for growth within its long-term average range is somewhat disappointing. There's an argument to be made that fiscal 2022 should be a year of above-trend growth. As the economy reopens, workers get back on site, and uniforms get used, Cintas should see strong growth in uniform rentals. Moreover, comparisons with fiscal 2021 should set a relatively low bar to measure growth against.

For reference, the core uniform rental segment (half of which is uniform rentals) saw revenue decline in the first three quarters of fiscal 2021. It's very hard to know exactly what the PPE-related sales will be, but management only forecasts 8% plus growth if PPE-related sales stay at the highly elevated levels of fiscal 2021. That seems to imply uniform rental business sales might not trump the easy comparisons with fiscal 2021 as much as might be expected.

Some Wall Street analysts responded to the company's latest report by upgrading their price targets for the stock and suggesting that the relatively weak-looking guidance was a reflection of conservatism on the part of management. Time will tell if those analysts are right or not.

Second, the company's earnings and guidance must, as ever, be looked at in the context of its valuation -- in this case, its enterprise value (market cap plus net debt) to earnings before interest, taxation, depreciation, and amortization (EBITDA) -- a commonly used valuation metric.

As you can see below, Cintas trades at an EV-to-forward-EBITDA ratio of 22.5. Moreover, based on Wall Street estimates, its EV is 20.7 times its estimated fiscal 2023 EBITDA. These valuations look expensive compared to the stock's historic levels. Moreover, it's worth noting that these calculations are based on analyst estimates that forecast Cintas growing revenue at an average annual rate of 7.4% over the next two fiscal years -- above the high end of management's guidance for 2022.

Is Cintas a reopening stock?

The answer is an emphatic "yes," but that doesn't make the stock a buy at its current valuation. It looks like Cintas will need to beat its own guidance and Wall Street estimates to make the stock look a good value. There's a theory that in the post-pandemic environment, companies will find outsourcing their uniform provisioning to be a more compelling choice than it was before. That bullish investment thesis for Cintas will have to prove accurate for the company to outperform the analysts' forecasts.

Furthermore, around half of Cintas' uniform rental segment revenue actually comes from facility services like "dust" (mats, mops, etc.), hygiene products (soap, air fresheners, etc.), and linens. The company could also grow sales of these complimentary products as it expands its customer base.

All told, shareholders will have to hope Cintas can, indeed, beat guidance and estimates, because its stock is not looking a great value right now.

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>>> Steris Completes the Acquisition of Cantel Medical


Yahoo Finance

STERIS plc

June 2, 2021


https://finance.yahoo.com/news/steris-completes-acquisition-cantel-medical-130000399.html


DUBLIN, IRELAND, June 02, 2021 (GLOBE NEWSWIRE) -- STERIS plc (NYSE: STE) (“STERIS” or the “Company”) today announced that it has completed the previously announced acquisition of Cantel Medical, a global provider of infection prevention products and services to endoscopy, dental, dialysis and life sciences Customers.

“We are pleased to announce the closing of the Cantel Medical acquisition, which will complement and extend STERIS’s product and service offerings, global reach and Customers,” said Walt Rosebrough, President and Chief Executive Officer of STERIS. “We welcome Cantel people to the STERIS team, and look forward to working together to create more value for our Customers, our people, and our shareholders.”

Guggenheim Securities served as financial advisor to STERIS and Jones Day as legal counsel. JPMorgan Chase Bank, N.A., served as sole lead arranger and bookrunner in respect of certain financing. Centerview Partners LLC served as exclusive financial advisor to Cantel and Wachtell, Lipton, Rosen & Katz as legal counsel.

About STERIS

STERIS’s MISSION IS TO HELP OUR CUSTOMERS CREATE A HEALTHIER AND SAFER WORLD by providing innovative healthcare and life science products and services around the globe. For more information, visit www.steris.com.

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Bill Gates - Investment portfolio -


Microsoft -------------------------- (26.6 Bil)
Republic Services -------------- (11.9 Bil)
Deere ------------------------------- (10.2 Bil)
Canadian Natl Railroad -------- (9.6 Bil)
Ecolab ------------------------------ (6.5 Bil)
Fomento Economico ----------- (2.4 Bil)
Waste Management ------------- (2.3 Bil)
Diageo ------------------------------ (1.8 Bil)
AutoNation ------------------------ (1.5 Bil)
Sika ---------------------------------- (1.4 Bil)
Arch Capital ----------------------- (1.3 Bil)
Grupo Televisa -------------------- (446 mil)
Liberty Global --------------------- (241 mil)
Fomento de Construcy Contra - (200 mil)
Western Assets Infl-link OPPS - (177 mil)
Otter Tail ------------------------------ (172 mil)
Coca Cola ---------------------------- (133 mil)
Orascom Construction ---------- (33 mil)

Coca Cola Femsa - (130 mil) (All went to Melinda)


Private Companies -
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Convoy Inc
Ginkgo Bioworks
Delos Living LLC
CoGen Lyondell Power Generation Facility
Signature Aviation PLC
268,984 Acres of land (largest private farmland owner in the US)

Four Seasons - (3.4 Bil) (47.5% stake bought in 2007, Saudi prince owns the rest)


https://www.bloomberg.com/graphics/2021-bill-gates-melinda-french-gates-divorce-fortune-split/?srnd=premium

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>>> McCormick CEO: 'We've been hard-pressed to keep up with' Old Bay Seasoning demand


Yahoo Finance

Brian Sozzi

April 19, 2021


https://finance.yahoo.com/news/mc-cormick-ceo-weve-been-hard-pressed-to-keep-up-with-old-bay-seasoning-demand-180702023.html


McCormick's Old Bay Seasoning appears to be the continued flavor of choice for home chefs amid the COVID-19 pandemic.

"Oh my gosh, the demand for Old Bay has been extraordinary, and we've been hard-pressed to keep up with it. And even now, it's one of those items that we are still struggling with to keep in stock. The demand is just high for favorites like that," McCormick Chairman and CEO Lawrence Kurzius told Yahoo Finance Live.

Kurzius said McCormick (MKC) is working hard to bring back supplies of products it decided to cut at the height of the pandemic in 2020, when it focused on getting its top-selling items such as Old Bay seasoning to grocery-hoarding customers.

"We hired 1,400 additional people mostly in our supply chain and we have added roughly the equivalent of an entire new factory by changing shift patterns and bringing in human resources. And so today, we are finally beyond the worst of the allocation time, and are rapidly closing in on the remaining 50% of all the items that we had on suspension. You should see that shelf position really accelerate," Kurzius explained.

Despite people beginning to venture outside post vaccination, McCormick hasn't seen a drop off in business at its key consumer solutions segment. First quarter sales for the segment surged 35% from the prior year on the back of demand for spices, French’s mustard and Frank’s Red Hot sauce.

"Demand from consumers has really been strong through the entire pandemic, and really still is," Kurzius said.

Meanwhile, the flavor solutions segment — which supplies products to restaurants — remained under pressure in the quarter. Sales for the segment only rose 4% from a year ago.

For 2021, McCormick sees sales up 8% to 10%. Earnings are pegged at 5% to 7% growth from last year.

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>>> Why women investors outperform men in the long run


Yahoo Finance

Jared Blikre

March 12, 2021


https://finance.yahoo.com/news/why-women-investors-outperform-men-in-the-long-run-trader-205931074.html


When it comes to investing, women tend to outperform men over time, according to several studies.

"We're wired differently. Women have strong activity in planning and self-control. I think that lends themselves to be better traders," says Kathy Donnelly, proprietary trader and co-author of "The Lifecycle Trade."

Donnelly cites a 2017 Fidelity Investments study that concluded women earn higher returns than men when investing — to the tune of 40 basis points, or 0.4% — and that women save more. Over time, these small differences add up, notes Fidelity.

Of the findings, Donnelly says, "[The study] basically tied to trading less, saving more and willing to learn — I think that fits me to a T."

A separate study in the U.K. found that men outperform the country's benchmark FTSE 100 (^FTSE) index by 0.14%, but women tend to beat it by 1.94% — a difference of 1.8 percentage points. Warwick Business School conducted the study with the assistance of Barclays and found that men trade more often than women — 13 times per year versus nine times over the same period.

The Warwick study also found men are more likely to take profits on winning trades while holding onto the losers — concluding that female investors tend to avoid "lottery style" speculation. Men are more likely to buy lower-priced shares, which helps explain the modern meme stock phenomenon. Many of the targeted stocks like GameStop (GME) and AMC Entertainment (AMC) are considered to be penny stocks (or at least they used to be when they traded at lower prices).

A Nasdaq report adds: "Generally speaking, women are more patient and allow their investments to grow. This is important because frequently trading and acting on short term fluctuations cultivate negative outcomes. In this regard, men could borrow a page from women."

When asked about her experience as a female investor, Alissa Coram, multimedia content editor at Investor’s Business Daily, says, "I think that the market doesn't really care what I look like, where I'm from, my age. I look at it as being optimistic ... [T]here are endless opportunities out there, as long as you have a great set of rules and strategies that you are abiding by when you're investing, and making sure you don't blow up your account. I think that the opportunity out there is for everyone, and that females out there should just go for it, and not let stereotypes of Wall Street or the financial world get in their way."

Trading in stocks has historically been male-dominated, but there are signs that cryptocurrencies are helping to disrupt that hegemony. Robinhood recently reported that among its customers, the number of female crypto traders has grown seven-fold this year — with 40% of their active women customers trading in crypto assets, such as bitcoin (BTC-USD), ethereum (ETH-USD) and dogecoin (DOGE-USD). “These figures are encouraging and prove that crypto can be a powerful tool in decentralizing power in finance," Robinhood says.

Donnelly wraps it all up, saying, "It’s all in the brain: Men are on a mission, women are on a journey."

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>>> Service Corporation International (SCI) provides deathcare products and services in the United States and Canada. The company operates through Funeral and Cemetery segments. Its funeral service and cemetery operations comprise funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and other businesses. The company also provides professional services relating to funerals and cremations, including the use of funeral facilities and motor vehicles; arranging and directing services; and removal, preparation, embalming, cremation, memorialization, and travel protection, as well as catering services. In addition, it offers funeral merchandise, including burial caskets and related accessories, urns and other cremation receptacles, outer burial containers, flowers, online and video tributes, stationery products, casket and cremation memorialization products, and other ancillary merchandise. Further, the company's cemeteries provide cemetery property interment rights, such as developed lots, lawn crypts, mausoleum spaces, niches, and other cremation memorialization and interment options; and sells cemetery merchandise and services, including memorial markers and bases, outer burial containers, flowers and floral placements, graveside services, merchandise installations, and interments, as well as offers preneed cemetery merchandise and services. Service Corporation International offers its products and services under the Dignity Memorial, Dignity Planning, National Cremation Society, Advantage Funeral and Cremation Services, Funeraria del Angel, Making Everlasting Memories, Neptune Society, and Trident Society brands. As of December 31, 2019, it owned and operated 1,471 funeral service locations; and 482 cemeteries, including 290 funeral service/cemetery combination locations covering 44 states, 8 Canadian provinces, the District of Columbia, and Puerto Rico. The company was founded in 1962 and is headquartered in Houston, Texas.

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>>> Apple is taking control, and a risky bet, with its M1 chip


Yahoo Finance

by Daniel Howley

Technology Editor

November 11, 2020


https://finance.yahoo.com/news/apple-m1-chip-taking-control-and-a-risky-bet-205657151.html


Apple is trying what no other computer company has been able to pull off
Apple’s most widely known product, by a country mile, is its iPhone. It’s the device that has helped turn the company into an empire and pushed its market valuation past the $2 trillion mark in August, a first for a publicly traded U.S. company.

And while the new iPhone 12 lineup is expected to kickstart a major increase in device upgrades and sales, the biggest news out of Apple (AAPL) in 2020 has little to do with its popular smartphone. Instead, the company’s most significant advancement in years comes in the form of its new M1 system on a chip, or SoC.

Apple CEO Tim Cook introduced a trio of new Mac products powered by the company's first M1 chip, replacing Intel's processors in its laptops and desktop products.

The tiny piece of silicon, which Apple debuted during a virtual press conference out of its Cupertino, California, headquarters on Tuesday, is the first of its own design to power its Mac line of products. As Wedbush analyst Dan Ives puts it, the chip “has been a vision 15 years in the making in Cupertino.”

With the new chip, Apple isn’t just signaling that it’s no longer willing to remain beholden to Intel’s (INTC) product pipelines and delays. It’s telling the world that it’s about to transform everything from how users interact with their favorite apps to what they should expect of their laptops and desktops.

But it’s a risky bet. Other companies have tried to use Arm-based chips in laptops before, but couldn’t squeeze out the kind of power Apple is touting. If it fails, the firm’s carefully laid plans could crumble beneath the weight of its goals.

Apple is making some big promises

During its announcement, Apple said that its new M1 chip offers improvements over leading PC processors in terms of both CPU and GPU performance, hitting right at the heart of Intel and AMD (AMD). In a statement, the firm said the M1 has “the fastest integrated GPU in the world,” and features “the world’s fastest CPU cores in low-power silicon.”

From a practical standpoint that means, as Apple tells it, that its new MacBook Air will offer 3.5 times the CPU performance and 5 times the GPU performance of the previous generation Air, all while extending battery life from 12 hours of video playback to a whopping 18 hours. What’s more, the Air won’t have an internal fan, so you won’t have to listen to the annoying whir of your laptop as it struggles to cool itself down while streaming Netflix.

The MacBook Pro, meanwhile, gets a 2.8 times faster CPU thanks to the M1 chip and a 5 times faster GPU. That’s a massive gain for a system that professionals rely on for things like high-end video and photo editing. Oh, and it gets, according to Apple, 20 hours of battery life when using video playback.

What makes this all the more impressive is that Apple is doing this using what’s referred to as a 5-nanometer process, which generally refers to the size of the transistors packed into a chip. Transistors are, more or less, on/off gates on a processor that allow it to perform instructions. The smaller the transistor, the more tightly it can be packed onto a chip alongside other transistors, allowing for greater energy efficiency and power. Apple’s chip, for instance, holds 16 billion transistors.

With the M1, Apple has jumped past both Intel and AMD in terms of sophistication. Intel still hasn’t delivered its 10-nm processors for desktops and, in its latest earnings report, announced delays for its 7-nm chips, sending its stock price plummeting. AMD, meanwhile, is currently using 7-nm chips.

If that weren’t enough, Apple is doing something that no other laptop or desktop maker has done before: using Arm-based processors, which have been traditionally found in low-power machines like smartphones and tablets, to power full-fledged laptops and desktops.

We’ve seen companies like HP and Microsoft (MSFT) use Arm-based Qualcomm (QCOM) processors to power their own laptops before, and while they’ve provided impressive battery life, the performance just wasn’t there.

That’s what makes Apple’s bet so massive. It’s aiming to do something other firms simply haven’t been able to accomplish: taking its own Arm-based chips and crushing the likes of Intel in terms of performance and power efficiency. If it fails, it will sour some of the company’s most loyal fans and could push them to Intel and AMD-based Windows PCs.

And the three Macs the company unveiled are just the beginning. Apple is going to use Arm-based chips throughout its entire laptop and desktop lineup by 2022.

And what about those apps?

So, Apple wants to make its chips its own secret sauce. But what does that have to do with apps? Well, since Apple is leaning on the same style of chip used in its iPhone and iPad, that means the majority of iOS and iPadOS apps will be usable on Macs.

That opens up Apple’s laptops and desktops to the millions of apps available through the App Store. That could be a game changer for Apple, which would bring users access to their favorite apps to the very laptops and desktops they’re now using more than ever due to the pandemic.

Those apps aren’t just going to be the same version from your smartphone slapped onto your Mac’s display with loads of distortions, either. They’ll function as full Mac apps complete with their own windows.

The App Store has been a goldmine for Apple, and to open it up to even more devices could allow for use cases that developers haven’t imagined before.

“We view the chip announcement as the first step of many more on the horizon in our opinion as Cupertino takes the reigns of its architecture and the cross pollination between software and hardware become ubiquitous over the coming years,” Ives wrote in a research note following Apple’s announcement.

Apple is taking control

Of course, it’s important to point out that Apple’s move is also a pragmatic one. Apple coughed up $2.9 billion for Intel’s processors in 2019. By ditching Intel, it cuts out the need to pay the firm for its chips, and allows it to create desktop and laptop experiences more akin to what you’d expect from an iPhone and iPad.

That means a more seamless user experience with advanced features like instantly waking from sleep like the iPhone. How that plays out down the line remains to be seen. But for now, Apple is clearly taking control of its own future — and placing some big bets on it.

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