Elite Stocks

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OXY, MA, ULTA - >>> 3 Value Stocks to Buy as Berkshire Hathaway Hit an All-Time High on Warren Buffett's Birthday


by Daniel Foelber

Motley Fool

Sep 9, 2024


https://finance.yahoo.com/news/3-value-stocks-buy-berkshire-083000492.html


Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) stock price hit an all-time high on Aug. 30 -- Warren Buffett's 94th birthday -- before proceeding to rise even higher on Sept. 3 despite a 2.1% sell-off in the S&P 500. The shares of the giant conglomerate are now up more than 27% year to date, outperforming both the S&P 500 and Nasdaq Composite by a wide margin.

Its portfolio managers have been on something of a selling spree lately -- making a large reduction in its Apple stake earlier this year and trimming its Bank of America position by 14.5% since mid-July.

However, Berkshire has maintained a sizable holding in oil and natural gas exploration and production company Occidental Petroleum (NYSE: OXY), owns American Express, Visa, and Mastercard (NYSE: MA), and initiated a position in Ulta Beauty (NASDAQ: ULTA) earlier this summer.

Here's why Occidental Petroleum, Mastercard, and Ulta stand out as three top value stocks to buy now.


Oxy can rake in the cash even at mediocre oil prices

Berkshire Hathaway owns 27.3% of Occidental Petroleum -- commonly referred to as Oxy. That stake, Berkshire's sixth-largest public equity holding, is worth more than $14 billion. But Oxy hasn't been a very good investment of late. The stock is hovering around a 52-week low.

Oil prices affect the fortunes of the entire oil and natural gas value chain, but especially exploration and production companies like Oxy that build their businesses around selling hydrocarbons for more than it costs to get those resources out of the ground. Unfortunately for Oxy and its peers, the price of West Texas Intermediate (WTI) crude oil -- the U.S. benchmark -- just fell below $70 a barrel to its lowest level so far this year.

Although Oxy can break even at a much lower oil price, $70 is significant because Oxy has based some of its key decisions around the assumption that prices will be at or above that level. In its fourth-quarter 2023 investor presentation, it used that threshold to predict year-one free cash flow (FCF) from its $12 billion acquisition of CrownRock. The lower the oil price, the lower the FCF, and the worse the acquisition will look -- at least in the short term. The good news is that CrownRock has plenty of acreage where the estimated breakeven levels are below $60 per barrel for WTI.

Oxy has also done an excellent job improving the health of its balance sheet by paying down debt. It's also aggressively investing in carbon capture and storage projects that could have long-term benefits for the company, both from an ESG (environmental, social, and governance) perspective and as a potential revenue stream in the form of carbon credits.

Oxy today trades at a dirt-cheap price-to-earnings (P/E) ratio of 13.5 and a price-to-FCF ratio of 13 -- meaning its earnings and FCF could fall and the stock would still be cheap. Now is a great time to scoop up shares of Berkshire's top energy company on sale.


Mastercard has a powerful moat

Credit card companies have proven to be phenomenal long-term investments. Mastercard and its closest peer, Visa, now have a combined market cap of nearly $1 trillion. And yet, they aren't necessarily overvalued.

Mastercard trades now at a forward P/E ratio of 33.3. That's higher than the S&P 500's trailing P/E ratio of 28.8, so even if Mastercard generates the earnings analysts expect over the next 12 months, it will still be more expensive than the S&P 500. With Mastercard, though, the value isn't just in the earnings, but the quality of the company and its growth trajectory.

Mastercard is an incredibly efficient business, with a 58.6% operating margin. It also has just $8.2 billion in total net long-term debt on its balance sheet, which is very small for a company of its size. Few companies in the S&P 500 can compete with Mastercard's profitability and financial health.

It also benefits from a huge network effect. Mastercard and Visa process the majority of credit card transactions in the U.S., and both are growing internationally. Fees are collected on both the number of transactions and the payment volume of total transactions. The more Mastercard debit and credit cards are in circulation, and the greater the partnerships with financial institutions like banks and credit unions, the more useful the network becomes to all participants, and the more incentive other customers and businesses have to join it.

Mastercard is expanding its value-added services business as consumers and merchants seek fraud prevention tools, better analytics, and cybersecurity solutions. This segment grew faster than Mastercard's core business last quarter.

Add it all up, and Mastercard stands out as a quality company that can continue delivering strong returns for investors.


Ulta is a catch-all way to play a recovery in cosmetics spending

Ulta is a new addition to Berkshire's portfolio. Although the position is valued at about a quarter-billion dollars -- much less than its other holdings -- Berkshire Hathaway now owns 1.5% of the retailer.

Ulta checks a lot of the boxes that Buffett and his team look for when searching for quality value stocks. The stock's valuation is significantly below historical median levels.

As you can see, Ulta's forward P/E ratio is above its current P/E -- meaning that analysts expect earnings to shrink in the next 12 months. There's no sugarcoating that Ulta's second-quarter 2024 earnings call was bleak, with management cutting the outlook for the second time this year. Competition and weak consumer spending were the headline concerns. But taking a step back, a slowdown in Ulta's growth is completely understandable.

The cosmetic industry boomed in recent years. And consumer trends toward more value-focused products -- like those sold by e.l.f. Beauty -- and away from premium-priced products like those sold by Estee Lauder or L'Oreal means lower margins and fewer reasons for customers to shop in its stores, try new products, or use Ulta's salon services.

That all adds up to a sluggish near-term outlook for the retailer. However, for investors with the patience to hold on as they wait for the industry to turn around, Ulta's dirt-cheap valuation and market position make it worth considering now.

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>>> Palantir’s Addition to the S&P 500 Is ‘Validation’ for Stock. So Is This Deal.


Barron's

by Emily Dattilo

Sept 09, 2024


https://www.barrons.com/articles/palantir-stock-price-s-and-p-500-0dffec41?siteid=yhoof2


Palantir Technologies stock divides opinion on Wall Street, but its promotion to the S&P 500 has given the bulls ammunition.

After markets closed Friday, S&P Dow Jones Indices announced that Palantir would replace American Airlines, Dell Technologies would replace Etsy, and Erie Indemnity would replace Bio-Rad Laboratories in the index before the start of trading on Sept. 23.

Being added to the S&P 500 is a heavier lift than the Russell 1000, which relies mostly on large market capitalization. To join the S&P 500, companies need to be profitable under generally accepted accounting principles for four quarters based on the sum of their profits over that span—as well as being GAAP profitable in the most recent quarter— Barron’s Associate Editor Andrew Bary wrote in June, musing that Palantir could be a likely candidate.

Wall Street has been divided on the software and data-integration company, with bulls championing the company’s AI platform and its ability to drive profits higher as demand soars and bears wondering if the stock is overvalued.

Wedbush analyst Dan Ives, who rates Palantir at Outperform with a price target of $38, called the S&P 500 addition a “validation moment.”

“We believe this is the start of a multi-year cycle for PLTR to continue generating significant deal flow on the back of AIP [artificial intelligence platform] as more organizations look to add AI capabilities that provide value and innovation in real time across operations that are unique to each enterprise,” he wrote.

A prime example of this is Palantir and oil giant BP announcing on Monday a five-year enterprise agreement that will extend their strategic relationship and introduce new AI capabilities.

“Palantir’s AIP software will assist bp to safely and reliably harness large language models (LLMs) to improve and accelerate human decision-making with suggested courses of action based on automated analysis of the underlying data,” the company said in a press release.

Palantir shares gained 9.8% to $33.30, putting them on track for their highest close in more than three years, according to Dow Jones Market Data.

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>>> LeMaitre Vascular, Inc. (LMAT) develops, manufactures, and markets medical devices and implants used in the field of vascular surgery worldwide.

It offers human cadaver tissue cryopreservation services; angioscope, a fiberoptic catheter used for viewing the lumen of a blood vessel; embolectomy catheters to remove blood clots from arteries; thrombectomy catheters for removing thrombi in the venous system; occlusion catheters that temporarily occlude the blood flow; and perfusion catheters to perfuse the blood and other fluids into the vasculature.

The company also provides artegraft biologic graft, a bovine carotid artery used for dialysis access; XenoSure biologic patches, used for closure of vessels after surgical intervention; VascuCel and CardioCel biologic patches, used in vessel repair, heart repair and reconstruction, and neonatal repairs; cardiovascular patches; carotid shunts that temporarily shunt the blood to the brain during the removal of plaque in a carotid endarterectomy surgery; biosynthetic vascular graft indicated for lower extremity bypass and dialysis access; and vascular grafts used to bypass or replace diseased arteries.

In addition, it offers radiopaque tape, a medical-grade tape applied to the skin that enables surgeons and interventionalists to cross-refer between the inside and the outside of a patient's body and allows them to locate tributaries or lesions beneath the skin. Further, the company provides valvulotomes, which cut or disrupt valves in the saphenous vein to function as an artery to carry blood past diseased arteries to the lower leg or the foot; and closure systems to attach vessels to one another with titanium clips instead of sutures.

It markets its products through a direct sales force and distributors. The company was formerly known as Vascutech, Inc. and changed its name to LeMaitre Vascular, Inc. in April 2001. LeMaitre Vascular, Inc. was incorporated in 1983 and is headquartered in Burlington, Massachusetts.

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https://finance.yahoo.com/quote/LMAT/profile/


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>>> PC Connection (CNXN) Reports Second Quarter 2024 Results


Business Wire

Jul 31, 2024


https://finance.yahoo.com/news/connection-cnxn-reports-second-quarter-200500679.html


Record Quarter for Net Income and Earnings per Share

SECOND QUARTER SUMMARY:

Net sales: $736.5 million, increase of 0.4% y/y

Gross profit: $136.5 million, up 6.9% y/y

Gross margin: 18.5%, up 112 basis points y/y

Net income: $26.2 million, increase of 32.8% y/y

Diluted EPS: $0.99, compared to $0.75


MERRIMACK, N.H., July 31, 2024--(BUSINESS WIRE)--Connection (PC Connection, Inc.; NASDAQ: CNXN), a leading information technology solutions provider to business, government, healthcare and education markets, today announced results for the second quarter June 30, 2024. The Company also announced that its Board of Directors declared a quarterly dividend of $0.10 per share of the Company’s common stock. Payment will be made on August 30, 2024, to shareholders of record on August 13, 2024.

"Connection achieved record net income and earnings per share of $0.99 cents for the second quarter of 2024. These results reflect the successful execution of our strategic priorities and our ability to adapt to the needs of our customers in this dynamic and rapidly evolving technology landscape," said Timothy McGrath, President and Chief Executive Officer of Connection.

Second Quarter of 2024 Results:

Net sales for the quarter ended June 30, 2024 increased by 0.4%, year over year. Gross profit increased 6.9% while gross margin expanded 112 basis points to 18.5%, compared to the prior year quarter. Net income for the quarter ended June 30, 2024 increased by 32.8% to $26.2 million, or $0.99 per diluted share, compared to net income of $19.7 million, or $0.75 per diluted share, for the prior year quarter. Adjusted Diluted Earnings per Share1 increased to $1.00 per share for the quarter ended June 30, 2024, compared to $0.80 per share for the quarter ended June 30, 2023.

Performance by Segment:

Net sales for the Business Solutions segment increased by 6.6% to $278.2 million in the second quarter of 2024, compared to $261.0 million in the prior year quarter. Gross profit increased by 8.1% to $66.3 million in the second quarter of 2024, compared to $61.4 million in the prior year quarter. Gross margin increased by 34 basis points to 23.8% for the second quarter of 2024.

Net sales for the Public Sector Solutions segment decreased by 14.0% to $159.5 million in the second quarter of 2024, compared to $185.4 million in the prior year quarter. Sales to state and local governments and educational institutions decreased by $17.6 million, while sales to the federal government decreased by $8.3 million, compared to the prior year quarter. Gross profit increased by 3.0% to $24.1 million in the second quarter of 2024, compared to $23.5 million in the prior year quarter. Gross margin increased by 250 basis points to 15.2% for the second quarter of 2024.

Net sales for the Enterprise Solutions segment increased by 4.1% to $298.8 million in the second quarter of 2024, compared to $287.1 million in the prior year quarter. Gross profit increased by 7.2% to $46.1 million in the second quarter of 2024, compared to $42.9 million in the prior year quarter. Gross margin increased by 45 basis points to 15.4% for the second quarter of 2024.

Sales by Product Mix:

Notebook/mobility and desktop sales increased by 7% year over year and accounted for 47% of net sales in the second quarter of 2024, compared to 44% of net sales in the second quarter of 2023.


Software sales increased by 7% year over year and accounted for 9% of net sales in the second quarter of 2024 and 2023.


Servers/storage sales increased by 19% year over year and accounted for 9% of net sales in the second quarter of 2024, compared to 7% of net sales in the second quarter of 2023.


Networking sales decreased by 33% year over year and accounted for 7% of net sales in the second quarter of 2024, compared to 11% of net sales in the second quarter of 2023.


Accessories sales decreased by 6% year over year and accounted for 11% of net sales in the second quarter of 2024 and 2023.

Selling, general and administrative ("SG&A") expenses increased in the second quarter of 2024 to $105.2 million from $101.0 million in the prior year quarter. SG&A as a percentage of net sales increased to 14.3%, compared to 13.8% in the prior year quarter. The increase in SG&A was primarily due to an increase in variable compensation due to higher levels of gross profit in the quarter.

Interest income in the second quarter of 2024 was $4.7 million, compared to $1.9 million in the second quarter of 2023.

Cash and cash equivalents and short-term investments were $385.8 million as of June 30, 2024, compared to $244.0 million as of June 30, 2023. During the second quarter of 2024, the Company repurchased 56,716 shares of stock at an aggregate purchase price of $3.6 million.

Six Months of 2024 Results:

Net sales for the six months ended June 30, 2024 decreased by 6.3%, compared to the six months ended June 30, 2023. Gross profit increased 1.8% while gross margin expanded 149 basis points to 18.6%, compared to the six months ended June 30, 2023. Net income for the six months ended June 30, 2024 increased by 16.0% to $39.3 million, or $1.48 per diluted share, compared to net income of $33.9 million, or $1.28 per diluted share, for the six months ended June 30, 2023. Adjusted Diluted Earnings per Share1 increased to $1.49 per share for the six months ended June 30, 2024, compared to $1.36 per share for the six months ended June 30, 2023.

Earnings before interest, taxes, depreciation and amortization, adjusted for stock-based compensation expense and restructuring and other charges ("Adjusted EBITDA")1 increased 4% to $125.4 million for the twelve months ended June 30, 2024, compared to $120.2 million for the twelve months ended June 30, 2023.

_________________

1 Adjusted EBITDA and Adjusted Diluted Earnings per Share are non-GAAP measures. See page 9 for definitions and reconciliations of these measures.

Conference Call and Webcast

Connection will host a conference call and live web cast today, July 31, 2024 at 4:30 p.m. EDT to discuss its second quarter financial results. For participants who would like to participate via telephone, please register here to receive the dial-in number along with a unique PIN number that is required to access the call. A web-cast of the conference call, which will be broadcast live via the Internet, and a copy of this press release, can be accessed on Connection’s website at ir.connection.com. For those unable to participate in the live call, a replay of the webcast will be available at ir.connection.com approximately 90 minutes after the completion of the call and will be accessible on the site for approximately one year.

Non-GAAP Financial Information

EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted Earnings per Share are non-GAAP financial measures. These measures are included to provide additional information with respect to the Company’s operating performance and earnings. Non-GAAP measures are not a substitute for GAAP measures and should be considered together with the GAAP financial measures. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Definitions for each Non-GAAP measure and a reconciliation to their most directly comparable GAAP measures are available in the tables at the end of this release.

About Connection

PC Connection, Inc. and its subsidiaries, dba Connection, (www.connection.com; NASDAQ: CNXN) is a Fortune 1000 company headquartered in Merrimack, NH. With offices throughout the United States, Connection delivers custom-configured computer systems overnight from its ISO 9001:2015 certified technical configuration lab at its distribution center in Wilmington, OH. In addition, the Company has over 2,500 technical certifications to ensure that it can solve the most complex issues of its customers. Connection also services international customers through its GlobalServe subsidiary, a global IT procurement and service management company. Investors and media can find more information about Connection at http://ir.connection.com.

Connection–Business Solutions (800.800.5555) is a rapid-response provider of IT products and services serving primarily the small-and medium-sized business sector. It offers more than 460,000 brand-name products through its staff of technically trained sales account managers, publications, and its website at www.connection.com.

Connection–Enterprise Solutions (561.237.3300), www.connection.com/enterprise, provides corporate technology buyers with best-in-class IT solutions, in-depth IT supply-chain expertise, and real-time access to over 460,000 products and 2,500 vendors through MarkITplace®, a proprietary next-generation, cloud-based supply chain solution. The team’s engineers, software licensing specialists, and subject matter experts help reduce the cost and complexity of buying hardware, software, and services throughout the entire IT lifecycle.

Connection–Public Sector Solutions (800.800.0019), is a rapid-response provider of IT products and services to federal, state, and local government agencies and educational institutions through specialized account managers, publications, and online at www.connection.com/publicsector.

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>>> Palo Alto Networks Gains the Most in Six Months on Rosy Forecast


Bloomberg

by Redd Brown and Katrina Manson

Aug 20, 2024


https://finance.yahoo.com/news/palo-alto-jumps-strong-profit-205336645.html


(Bloomberg) -- Palo Alto Networks Inc. shares rose the most in nearly a year after the cybersecurity company gave a strong forecast and boosted its share buyback program.

The shares climbed as much as 9.3% in New York on Tuesday to $375.37, the biggest intraday gain since Feb. 26. Palo Alto had risen 16% through the close Monday.

In an earnings report on Monday, Palo Alto reported that earnings for the current fiscal quarter will be $1.47 per share to $1.49 per share. Analysts had expected $1.43.

The results come as a boon for Palo Alto, one of America’s leading cybersecurity companies, which hit a record market capitalization of $121 billion following the results, up from $91 billion at the start of the year. Chief Executive Officer Nikesh Arora had warned back in February that customers were suffering from “spending fatigue” in cybersecurity, as the company missed Wall Street expectations for annual sales, sending the value of the company plummeting by a record 27% at the time.

The company has attempted to refresh its sales strategy, with limited success, Bloomberg Intelligence said before the report.

Palo Alto managed to grow its sales 12% last quarter, faster than expected. The reported full-year sales of just over $8 billion was in line with consensus expectations that were moderated after it cut its outlook earlier this year.

Wall Street remained bullish overall on the stock of the Santa Clara, California-based company ahead of Monday’s earnings, which had 40 buys, 15 holds, and zero sell ratings among analysts tracked by Bloomberg.

Palo Alto also announced its board approved an additional $500 million to repurchase shares, increasing the total authorization to $1 billion.

Analysts have been watching to see any impact on the cybersecurity market from the mass outages last month triggered by a flawed update from CrowdStrike Holdings Inc. That includes whether CrowdStrike customers were switching to rivals or pushing back on cybersecurity vendors in general.

Arora said in an investor call on Monday the company was “delighted” with its results, adding cybersecurity has risen up the agenda in C-suites following “a recent broad outage involving security tools.”

Palo Alto creates its own updates in a “fundamentally different way” from CrowdStrike, Arora said. Since the outage, customers have been reaching out and asking how Palo Alto deploys its updates compared with its rival, he said.

On Tuesday, Arora told Bloomberg TV that the cybersecurity market remains fragmented and ripe for consolidation. Growth will likely come from taking market share from smaller players rather than from its rival, CrowdStrike, he said.

Dipak Golechha, chief financial officer, said the company would no longer issue guidance on billings forecasts to investors in the future. That follows Arora’s contention in May that billings represent “an artificial metric” after the figure missed analyst estimates and disappointed investors.

Golechha said the company will instead issue guidance for annualized recurring revenue for part of its product offering and remaining performance obligations, known for short as RPO, a measure of how much revenue is already contracted.

Wall Street firms such as Guggenheim Securities have previously warned of pitfalls associated with relying on RPO. In November 2022, Guggenheim argued that RPO lacked crucial information, such as the time frame in which contracted revenues will be spent.

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FTI Consulting - >>> 3 Stocks to Buy From the Prospering Consulting Services Industry


Zacks

by Arghyadeep Bose

Aug 1, 2024


https://finance.yahoo.com/news/3-stocks-buy-prospering-consulting-144000822.html


Gartner: This research and advisory firm is currently riding on higher compensation costs. The company’s research segment, which is its largest and most profitable segment, serves leaders across all functions of an enterprise in every industry and geography.

IT currently has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its 2024 bottom line has increased 1.7% in the past 90 days. Earnings are expected to rise 2.7% year over year in 2024. IT shares have gained 47.1% in the past year.


Exponent: This science and engineering consulting company is benefiting from its reactive business, driven by demand across the transportation, utilities and medical device sectors. The company’s proactive business is observing modest growth in the utility sector.

EXPO presently carries a Zacks Rank #2. The Zacks Consensus Estimate for its 2024 bottom line has increased marginally in the past 90 days. Earnings are expected to rise 5.7% year over year in 2024. EXPO shares have gained 18.6% in the past year.


FTI Consulting: This business advisory services provider is benefiting from strong segmental revenues. The rise in Corporate Finance & Restructuring revenues has been driven by higher demand and realized bill rates for business transformation, and strategy and transaction services. On the Economic Consulting front, the company witnessed higher demand and realized bill rates for M&A-related antitrust and financial economic services. The Technology segment’s revenues are riding on higher demand for M&A-related second request services.

FCN currently carries a Zacks Rank #3. The Zacks Consensus Estimate for 2024 EPS has increased 3.2% in the past 90 days. Earnings are expected to rise 10% year over year in 2024. FCN shares have gained more than 18.1% in the past year.

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Novo Nordisk - >>> Ozempic Could Have a Terrible Side Effect. Is Novo Nordisk in Trouble?


by Prosper Junior Bakiny

Motley Fool

Aug 27, 2024


https://finance.yahoo.com/news/ozempic-could-terrible-side-effect-100000193.html


The diabetes medicine Ozempic has been a veritable cash cow for Novo Nordisk (NYSE: NVO). The company's revenue, earnings, and stock price have been on a tear in recent years -- and no single drug has contributed more to its performance than Ozempic.

However, various potential headwinds have popped up that could disrupt Ozempic's progress. One of them is competition. Novo Nordisk's longtime foe in the diabetes market, Eli Lilly, developed Mounjaro, a diabetes medicine whose sales are growing incredibly fast.

Elsewhere, the side effects of Novo Nordisk's crown jewel have come under increased scrutiny, and a recent study suggests that Ozempic could have a dangerous safety issue. Let's look at what it could mean for Novo Nordisk.

Could Ozempic cause suicidal thoughts?

One of Ozempic's side effects that has generated quite a bit of attention is muscle loss. However, an even more dangerous potential drawback that some researchers have warned about is the possibility that Ozempic could increase suicidal thoughts.

A recent study claims to shed more light on this topic. The study looked at two medicines in the GLP-1 receptor agonist class, to which semaglutide, the active ingredient in Ozempic, belongs. The other GLP-1 medicine featured was liraglutide, the generic name for Victoza and Saxenda, which treat diabetes and obesity, respectively.

Liraglutide was another one of Novo Nordisk's discoveries. Through a database from the World Health Organization that tracks suspected adverse reactions from medicines and vaccines, the researchers found that Ozempic was associated with a higher rate of reported suicidal thoughts compared to other drugs. Liraglutide did not seem to be linked with higher rates of suicidal thoughts.

What should investors make of these findings? Should you sell the healthcare stock?

No reason to hit the panic button

Regulatory authorities are already aware of the potential association between Ozempic -- or at least its active ingredient, semaglutide -- and suicidal thoughts. Wegovy, an obesity medicine that shares this same active ingredient, has a warning for precisely that in the U.S.

Researchers sometimes learn even more about a therapy and its side effects after years of use in real-life settings. If studies establish a robust causal link between Ozempic or Wegovy and suicidal thoughts, that could cause regulators to take action. Perhaps they would add additional warnings or, in the worst-case scenario, take the medicine off the market. Either way, it would mean lower (or nonexistent) sales for Novo Nordisk's biggest growth driver, dragging down its revenue, earnings, and stock price.

But there's no reason to think this study will lead to that morbid scenario. Other studies have reached different conclusions. One published in Nature Medicine, one of the world's most prestigious science journals, found that semaglutide had a lower risk of producing suicidal thoughts than other non-GLP-1 anti-obesity medicines in real-life settings. This study, unlike the previous one, compared patients based on factors that can influence suicidal behavior, including sex, socioeconomic status, ethnicity, and mental health.

It would take a lot to reverse these findings. So, for now, investors can continue focusing on how Novo Nordisk is performing. And on that front, there aren't too many complaints.

Financial results continue to be strong. In the first half of the year, the company's net sales grew by 24% year over year to 133.4 billion Danish kroner ($19.8 billion). Ozempic's sales increased 36% year over year, while Wegovy's jumped 74%. Notably, Novo Nordisk continues to lead the GLP-1 market -- its share was 56% as of May, compared to 54% a year before.

Ozempic could win several label expansions, including in the exciting area of nonalcoholic steatohepatitis, where it's being investigated in a phase 3 study. Novo Nordisk has many more promising candidates. CagriSema, a next-gen GLP-1 drug, could be yet another multibillion-dollar medicine. The drugmaker is also looking to diversify, with several programs across a range of therapeutic areas.

Though various challenges to Ozempic will continue to appear, the recent study doesn't pose too much of a problem for the medicine and its maker. Novo Nordisk should continue delivering strong financial results and stock-market performance for the foreseeable future. I believe the stock is still worth buying.

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Celsius Holdings -


https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175015388


>>> Celsius Holdings, Inc. (CELH) develops, processes, markets, distributes, and sells functional energy drinks and liquid supplements in the United States, Australia, New Zealand, Canadian, European, Middle Eastern, Asia-Pacific, and internationally. The company offers CELSIUS, a fitness drink or supplement designed to accelerate metabolism and burn body fat; various flavors and carbonated and non-carbonated functional energy drinks under the CELSIUS Originals and Vibe name, as well as functional energy drink under the CELSIUS Essentials and CELSIUS On-the-Go Powder names; and CELSIUS ready-to drink products. It distributes its products through direct-to-store delivery, distributors, supermarkets, convenience stores, drug stores, nutritional stores, and mass merchants, as well as health clubs, gyms, the military, and e-commerce websites. The company was formerly known as Vector Ventures, Inc. and changed its name to Celsius Holdings, Inc. in January 2007. Celsius Holdings, Inc. was founded in 2004 and is headquartered in Boca Raton, Florida.

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>>> 3 Nuclear Energy Stocks to Buy and Hold Forever


Zacks

by Benjamin Rains

Aug 23, 2024


https://finance.yahoo.com/news/3-nuclear-energy-stocks-buy-110000268.html


Today’s episode of Full Court Finance at Zacks explores nuclear energy’s rapid rise and why nuclear energy is poised to become one of the most important industries in the economy and on Wall Street.

The episode dives into three nuclear energy-focused stocks—Rolls-Royce (RYCEY), BWX Technologies, Inc. (BWXT), and Constellation Energy (CEG)—that investors might want to buy now and hold for long-term upside.

Nuclear energy has become one of the hottest industries on Wall Street over the last year as investors realize its ability to power the growing global economy as the world attempts to curb fossil fuel use. On top of that, the energy-hungry artificial intelligence arms race sparked technology giants such as Amazon, Microsoft, and many others to commit to nuclear energy expansion and innovation.

Two of the top six performing S&P 500 stocks so far this year are nuclear energy companies. The buildout of the nuclear-powered economy will cost tens of trillions of dollars and take decades, even though nuclear energy has supplied around 20% of U.S. electricity for over 30 years running (and 10% of the current global total).

The U.S. and many other nations have done a 180-degree turn on nuclear energy technology over the last few years as key players across technology, finance, the government, and beyond finally throw their collective force behind nuclear energy. The U.S. government has rolled out multiple efforts to support the nuclear energy resurgence and pledged to help triple global nuclear energy capacity by 2050.

Outside of the U.S., China, India, and tons of other key economies are going all in on nuclear. Investors are pouring money into the largest nuclear power producers, uranium (nuclear fuel) miners, and other standout players.

Now let’s look at our three nuclear energy stocks to consider buying now.

Rolls-Royce (RYCEY) is a historic engine maker of complex power and propulsion solutions for aircraft, ships, and beyond. Rolls-Royce is utilizing its expertise in nuclear propulsion systems to design cutting-edge small modular nuclear reactor (SMR) technology and micro-reactors. Rolls-Royce’s SMR tech is making its way through the approval process to be rolled out in the U.K.

Rolls-Royce will be able to achieve these lofty nuclear energy goals because it is successfully revamping and streamlining its business to boost profitability after a disappointing decade.

Former oil industry executive Tufan Erginbilgic took over as CEO in January 2023, aiming to quadruple Rolls-Royce’s profits in the next five years and complete other key initiatives. Rolls-Royce raised its full-year guidance on August 1 and said it plans to reinstate its dividend.

Rolls-Royce is projected to grow its adjusted earnings by 35% in FY24 and 19% in FY25 on the back of 30% and 7%, respective revenue expansion.

Rolls-Royce’s recent upbeat EPS revisions help it earn a Zacks Rank #2 (Buy) and extend its impressive run of positive EPS revisions over the past year and a half.

Rolls-Royce stock soared over 750% off its 2022 lows, including its 155% YTD surge. Rolls-Royce stock hit new 52-week highs of $6.50 a share on Thursday. Despite the climb, Rolls-Royce trades 34% below its average Zack price target and 70% below its all-time highs.

On the valuation front, Rolls-Royce trades in line with its 10-year median and near its industry at 24.9X forward 12-month earnings.

BWX Technologies (BWXT) is a top supplier of nuclear technologies, components, and fuel to the U.S. government, including U.S. naval submarines and aircraft carriers. BWX Technologies is actively growing its commercial nuclear power segment and other non-defense units.

BWXT owns one of the largest commercial nuclear equipment manufacturing facilities on the planet. BWXT is expanding that operation to “support ongoing and anticipated customers’ investments in Small Modular Reactors, traditional large-scale nuclear and advanced reactors, in Canada and around the world.”

BWX Technologies has landed deals and partnerships with GE Vernova, the Wyoming Energy Authority, Bill Gates-backed SMR company TerraPower, and beyond. BWXT’s beat-and-raise second quarter was supported, in part, by a growing “appetite for nuclear solutions across the global security, clean energy, and medical markets.”

BWXT is projected to post solid mid-single-digit sales and earnings growth in 2024 and 2025.

BWX Technologies stock has climbed 250% in the last 10 years to outpace the S&P 500’s 190% and its industry’s 110%. BWXT broke out to new highs last summer, with the stock up 38% the last 12 months.

BWXT is trading above its 21-week and 21-day moving averages while sitting 5% below its average Zacks price target.

Constellation Energy (CEG) is the largest nuclear power plant operator in the U.S., helping it produce 10% of the country’s total clean energy. Constellation boasts over 20 nuclear reactors at roughly a dozen sites across the Midwest, the Mid-Atlantic, and the Northeast.

Constellation benefits from the nuclear energy-focused aspects of the Inflation Reduction Act. The U.S. government is helping provide a price floor for nuclear power to boost the expansion of the domestic nuclear industry.

Constellation is retrofitting its current nuclear power plants to help keep them running for a lot longer. The company is also expanding into next-gen nuclear power plant technologies.

Constellation aims to grow through mergers and acquisitions and return capital to shareholders via buybacks and dividends. Constellation announced in early 2024 its plans to boost its dividend by 25% in 2024, exceeding its 10% annual growth target.

Constellation lifted its adjusted 2024 earnings guidance in early August and reaffirmed its ability to grow its adjusted EPS by at least 10% from 2024-2028. Constellation is projected to grow its adjusted earnings by 57% in 2024 and 18% in 2025.

Constellation shares soared since their 2022 IPO. CEG has climbed by 150% in the past two years and 70% YTD. Thankfully, for investors who ‘missed’ the run, Constellation trades 15% below its May records after falling alongside tech and other growth stocks.

CEG is attempting to retake its 50-day moving average. On top of that, CEG's improving EPS outlook, mixed with its recent downturn, has it trading at a 32% discount to Constellation's highs at 21.8X forward earnings.

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>>> 4 Hidden Stocks to Play the AI Data-Center Megatrend


Barron's

By Tae Kim

Aug 20, 2024


https://www.barrons.com/articles/ai-data-center-stocks-constellation-energy-teradyne-b1289ad0?siteid=yhoof2


In this article

WCC
CCOI
TER
CEG

The rise of artificial intelligence is sparking the construction of new data centers, which is providing significant opportunities for investors.

KeyBanc Capital Markets’ research team on Monday shared its top ideas about what companies will benefit from the AI infrastructure trend. The stocks include Wesco International (WCC), Cogent Communications Holdings (CCOI), Teradyne (TER), and Constellation Energy (CEG). All four stocks have Overweight ratings.

“For our names exposed to data center hardware/infrastructure, C2Q24 earnings season largely continued to showcase robust demand trends around the theme,” the team wrote.

Wesco stands to gain because investment spending on data centers should add to demand for logistics services among the company’s cloud-computing and enterprise customers, according to industrial tech analyst Ken Newman. He has a target of $195 for the stock price, while shares were down 0.9% to $157.46 on Tuesday afternoon.

Communications services analyst Brandon Nispel is optimistic about Cogent’s data-center connectivity solutions, including its optical wavelength services, which provide data transportation across long distances. He has a $80 price forecast for the shares; the stock was up 0.5% to $76.11.

Semiconductor capital-equipment analyst Steve Barger said Teradyne’s testing services will thrive as demand for AI chips grows. And electric utilities analyst Sophie Karp is bullish on Constellation Energy because of rising electricity demand from data centers. Barger has a $180 target for Teradyne and Karp has a $230 price forecast for Constellation.

Teradyne stock dropped 1.5% to $132.01. Constellation stock was down 1.1% to $190.58.

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>>> Hyliion Awarded Government Contract to Create a Megawatt-Scale Concept of the KARNO Generator Technology for the United States Navy


Business Wire

Aug 8, 2024


https://finance.yahoo.com/news/hyliion-awarded-government-contract-create-123000371.html


AUSTIN, Texas, August 08, 2024--(BUSINESS WIRE)--Hyliion Holdings Corp. (NYSE: HYLN) ("Hyliion"), a developer of sustainable electricity-producing technology, is pleased to announce that it has been awarded a Small Business Innovation Research (SBIR) government contract by the United States Navy. Phase 1 of the award, N241–060, will allow Hyliion to create a preliminary design of a modular generator system that integrates the Navy’s specifications with Hyliion’s cutting-edge KARNO™ generator technology.

With this contract, Hyliion will showcase a design concept of the KARNO generator in a megawatt-scale modular system. The system will be engineered to offer a versatile and flexible approach to meet the U.S. government's Unmanned Surface Vessel (USV) cross-platform requirements, scalable to various power needs and adaptable to the available platform space. Hyliion plans to leverage its foundational 200-kilowatt (kW) KARNO genset, combining multiple units together to achieve the desired power output.

"We are honored to receive this SBIR contract from the United States Navy," said Thomas Healy, Founder and CEO of Hyliion. "This award is a testament to the KARNO generator’s expected ability to offer efficient, flexible, and low-maintenance power generation. We are excited to contribute to the Navy’s mission and explore higher power solutions for their USV initiative."

The SBIR program is an initiative that supports scientific excellence and technological advancements by investing federal research funds in key American priorities aimed at strengthening the national economy and defense infrastructure. The primary objective of the N241-060 program is to develop and demonstrate a megawatt (MW) scale, ultra-reliable, and efficient USV modular generator concept tailored to the Navy’s requirements. This concept involves configuring smaller kW-scale building block power units in a high-density package to achieve a 4,000-hour no-touch maintenance periodicity for continuous operation in a naval environment.

This government contract underscores Hyliion's commitment to innovation and its leadership in developing sustainable energy solutions. The KARNO generator, with its exceptional form factor and ability to operate on multiple fuels, including NATO F-76, is ideally suited for the Navy’s USV program. The system’s hermetically sealed architecture, with only one moving part per shaft, is designed for maintenance-free operation over long running hours.

For more information on Hyliion or the KARNO generator, please visit www.hyliion.com.

For additional details on the SBIR, please visit https://www.navysbir.com/n24_1/N241-060.htm.

About the KARNO Generator

The KARNO generator is a linear heat generator that leverages advanced 3D metal printed components and proprietary flameless oxidation technology to produce clean electricity. Modular in design, the generator is expected to show an improvement in fuel efficiency, require significantly lower maintenance costs and have a much lower emissions profile than conventional generators. It is also capable of operating on over 20 different fuels, including hydrogen, natural gas, propane, ammonia and conventional fuels.

About Hyliion

Hyliion is committed to creating innovative solutions that enable clean, flexible, and affordable electricity production. The Company’s primary focus is to provide distributed power generators that can operate on various fuel sources to future-proof against an ever-changing energy economy. Headquartered in Austin, Texas, and with research and development in Cincinnati, Ohio, Hyliion is initially targeting the commercial and waste management industries with a locally deployable generator that can offer prime power as well as energy arbitrage opportunities. Beyond stationary power, Hyliion will address mobile applications such as vehicles and marine. The Company aims to offer innovative, yet practical solutions that contribute positively to the environment in the energy economy. For further information, please visit www.hyliion.com.

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