Portfolio Ideas

[gfp927z]

>>> Trump announces blanket tariffs on steel and aluminum, reciprocal tariffs on other countries <<<

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175788990



---

[gfp927z]

>>> Maplebear Inc. (CART), doing business as Instacart, engages in the provision of online grocery shopping services to households in North America. It sells and delivers grocery products, as well as pickup services through a mobile application and website. It also operates virtual convenience stores; and provides software-as-a-service solutions to retailers. The company was incorporated in 2012 and is based in San Francisco, California.

<<<



---

[gfp927z]

>>> Why Wingstop Stock Absolutely Plunged Today


by Jon Quast

Motley Fool

October 30, 2024


https://finance.yahoo.com/news/why-wingstop-stock-absolutely-plunged-205102215.html


Shares of restaurant chain Wingstop (NASDAQ: WING) absolutely plunged on Wednesday after the company reported financial results for the third quarter of 2024. As of 3 p.m. ET, Wingstop stock was down a painful 20%.

Incredible growth, but profits not what investors expected

The Q3 headline numbers were incredible for Wingstop. The company had nearly 2,400 locations at the end of the second quarter, but still added 106 more in Q3 alone. The chain enjoyed 20% same-store-sales growth in the U.S., leading to year-over-year revenue growth of 39%. If investors were hoping for impressive growth, they got it.

Wingstop's Q3 net income was up 32% to $25.7 million. And that's strong growth as well in isolation. But profits were up less than revenue, and investors were hoping for more. In a nutshell, that's why Wingstop was down so much today.

The business is strong but the pullback unsurprising

Is the drop with Wingstop stock justified? Well, additional context is important here. Even with today's 20% drop, Wingstop stock is still up a hefty 65% in the past year, handily outpacing the historic returns for the S&P 500.

Even if Wingstop had hit its profit number, I don't think the stock was worth what it was trading for. For this reason, I'd say the pullback for the stock is justified, even though Q3 numbers were strong.

The valuation is still pricey for Wingstop stock. But for investors solely looking at the business, I see little reason for concern. Some are pointing to rising expenses with chicken wings, which is true. But as a primarily franchised business model, this rising cost doesn't impact Wingstop as much as restaurant chains with a company-owned model.

Therefore, while Q3 margins took a step back, I don't believe this is a trend that will meaningfully accelerate in coming quarters for Wingstop. Shareholders can take comfort in knowing that its brand is more popular than ever, and long-term growth is still on the menu.

<<<



---

[gfp927z]

>>> PC Connection, Inc. (CNXN), together with its subsidiaries, provides various information technology (IT) solutions worldwide. The company operates through three segments: Business Solutions, Enterprise Solutions, and Public Sector Solutions.

It offers IT solutions, including computer systems, data center solutions, software and peripheral equipment, networking communications, and other products and accessories; and portfolio of managed services and professional services, as well as provides services related to design, configuration, and implementation of IT solutions.

The company markets its products and services through its websites comprising connection.com, connection.com/enterprise, connection.com/publicsector, and macconnection.com. It serves small to medium-sized businesses that include small office/home office customers; federal, state, and local government and educational institutions; enterprise sutomers; medium-to-large sorporations through outbound inside and field sales; digital, web, and print media advertising; and targeted marketing program to specific customer populations. The company was founded in 1982 and is headquartered in Merrimack, New Hampshire.

<<<


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


---

[gfp927z]

>>> StoneX Group Inc (SNEX). operates as a global financial services network that connects companies, organizations, traders, and investors to market ecosystem worldwide. The company operates through Commercial, Institutional, Retail, and Global Payments segments.

The Commercial segment provides risk management and hedging, exchange-traded and OTC products execution and clearing, voice brokerage, market intelligence, physical trading, and commodity financing and logistics services.

The Institutional segment offers equity trading services to institutional clients; clearing and execution services in futures exchanges; brokerage foreign exchange services for the financial institutions and professional traders; and OTC products, as well as originates, structures, and places debt instruments in capital markets. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies, as well as engages in asset management business.

The Retail segment provides trading services and solutions in the global financial markets, including spot foreign exchange, precious metals trading, and contracts for differences; and wealth management services, as well as offers physical gold and other precious metals in various forms and denominations through Stonexbullion.com.

The Global Payments segment provides customized payment, technology, and treasury services to banks and commercial businesses, charities, and non-governmental and government organizations; and pricing and payments services.

The company was formerly known as INTL FCStone Inc. and changed its name to StoneX Group Inc. in July 2020. StoneX Group Inc. was founded in 1924 and is headquartered in New York, New York.

<<<


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



---

[gfp927z]

>>> MSA Safety Incorporated (MSA) develops, manufactures, and supplies safety products and technology solutions that protect people and facility infrastructures in the fire service, energy, utility, construction, and industrial manufacturing applications, as well as heating, ventilation, air conditioning, and refrigeration industries worldwide.

The company's core product offerings include fixed gas and flame detection systems, such as gas detection monitoring systems, and flame detectors and open-path infrared gas detectors; breathing apparatus products, including self-contained breathing apparatus; hand-held portable gas detection instruments to detect the presence or absence of various gases in the air; industrial head protection products; firefighter helmets and protective apparel; and fall protection equipment, such as confined space equipment, harnesses, lanyards, and self-retracting lifelines, as well as engineered systems. In addition, the company offers air-purifying respirators, eye and face protection products, ballistic helmets, and gas masks.

It serves distributors and end-users through indirect and direct sales channels. The company offers its products under the V-Gard, Cairns, and Gallet brand names. MSA Safety Incorporated was founded in 1914 and is based in Cranberry Township, Pennsylvania.

<<<


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


---

[gfp927z]

Badger Meter, Transcat - >>> Zacks Industry Outlook Watts Water Technologies, Badger Meter and Transcat


Zacks Equity Research

August 8, 2024


https://finance.yahoo.com/news/zacks-industry-outlook-watts-water-083000714.html


3 Instruments Stocks Set to Ride on Digitized Technology Demand

The Zacks Instruments – Control industry is likely to benefit from the diligent focus on energy-efficient production processes and integrated software systems. Rising demand for state-of-the-art technology for replacing legacy industrial control systems with automated products is expected to aid growth.

However, elevated customer inventory levels amid a challenging geopolitical environment might hurt the process automation and instrumentation market. Nevertheless, Watts Water Technologies, Inc., Badger Meter, Inc. and Transcat, Inc. are likely to gain from high digitized technology demand, greater emphasis on energy efficiency, focus on cost-reduction initiatives and broad-based endorsement of industrial automation and optimum resource utilization.

Industry Description

The Zacks Instruments – Control industry comprises manufacturers of precision and specialty motion-control components and systems used in a wide range of industries. These companies deliver sophisticated flow measurement, control and communication solutions for air, water and other forms of gas and liquid used for commercial and residential purposes. The companies offer an array of products for fuel, combustion, fluid, actuation, electronic applications, energy control and optimization, particularly for the process industry. Some industry players offer heating, ventilation and air conditioning products. These include water heaters and electric heating systems for under-floor radiant applications for boiler manufacturers and alternative energy control packages. Few firms provide water reuse products, consisting of drainage and rainwater harvesting solutions.

What's Shaping the Future of Instruments - Control Industry

Thrust on Industrial Automation: Greater focus on increased adoption of automation across all industry verticals and higher investments in new technologies are expected to drive growth over the next few years. North America is expected to continue dominating the market in terms of adopting automation. Rising infrastructural investments in the energy and power sector, increasing demand for organic food and nutritional beverages, and favorable government policies are aiding growth. The pharmaceutical industry's process automation and instrumentation market is also growing due to low-cost factors and an evolving regulatory environment. Focus on high-quality equipment indicates progressive buyer maturity and willingness to partner with process control industry players.

Solid Traction From Green Fuels: The industry participants are increasingly gaining traction from solid demand for power generation, especially in Asia, and continued requirement for backup power for data centers. Higher demand across transportation and power generation markets, especially on-highway natural gas truck business in China, has led to healthy growth momentum. In addition, higher demand for alternative fuels across the marine industry and solid impetus in the global marine market brought on by higher utilization and rising shipbuilding rates are likely to be long-term growth drivers.

Margin Woes Persist: Material cost inflation, resulting from constant inflationary pressures, has been affecting industry players’ margins. Transportation costs are also on the rise. Moreover, high raw material prices due to inflation, escalating Middle East tensions, the prolonged Russia-Ukraine war and the consequent economic sanctions against the Putin regime have affected the production schedules of various firms. While the companies are focused on improving their operating performances, the inability to obtain adequate supplies of raw materials and product parts at favorable prices is likely to hurt their businesses. With firms being unable to pass on the entire increase in raw material prices to customers due to stiff competition, profitability is mostly on the wane. The companies primarily operate in markets that are susceptible to high competitive pressures and are under constant threat from low-cost suppliers, primarily based in China. Due to an international footprint, these firms are further exposed to foreign exchange fluctuations that affect their cash flows. Changes in competitive conditions, including the availability of the latest products and services, the introduction of distribution channels and changes in OEM and aftermarket pricing, are likely to hamper operations and affect sales for industry participants.

Digitized Technologies at the Core: The industry’s growth is driven mainly by the emphasis on digitized technologies in manufacturing activities, such as the Industrial Internet of Things. The demand for process automation, instrumentation products, safety automation systems and multivariable pressure transmitters for the fast-track manufacturing process is likely to fuel long-term growth opportunities. The use of process instrumentation equipment offers a host of benefits, including improvement in the quality of the product and emission reduction. Therefore, the rapid adoption of technology across various industries and growing regulation and compliance requirements will continue to be major growth drivers. In addition, field instruments play a significant role in process control by measuring the key elements, such as temperature, pressure, flow and level, in process industries such as chemicals, mining and pharmaceuticals. These include transmitters that primarily measure the pressure, flow, temperature, level and humidity of liquids and gases, which are essential for achieving optimum productivity. A differentiated product offering gives greater opportunities for companies to strengthen their market positions.

3 Instruments Control Stocks to Keep an Eye on

Watts Water (WTS) : Headquartered in North Andover, MA, the company designs, manufactures and sells various water safety and flow control products to promote safety, energy efficiency and water conservation for commercial and residential buildings. It is benefiting from aggressive cost-reduction actions, along with a strong balance sheet. It is focused on enhancing organic growth, driving margin expansion and reinvesting in productivity initiatives. Watts Water aims to launch smart and connected products, which are likely to provide it with further differentiation in the marketplace. This Zacks Rank #3 (Hold) stock has a VGM Score of B. It has a long-term earnings growth expectation of 8% and delivered an earnings surprise of 11.7%, on average, in the trailing four quarters. The Zacks Consensus Estimate for current and next-year earnings has been revised 10.3% and 6.6% upward, respectively, over the past year.

Badger Meter (BMI) : Headquartered in Milwaukee, WI, the company provides flow measurement, control and communications solutions, serving water and gas utilities, municipalities and industrial customers worldwide. Its products measure water, oil, chemicals and other fluids, and are known for accuracy, long-lasting durability and providing valuable and timely measurement data. With its industry-leading ORION Cellular endpoints, along with communication and software technologies, Badger Meter is focused on creating robust digital solutions to operationalize real-time data into actionable insights. Its BEACON software-as-a-service offering facilitates the collection and analysis of data within the distribution network to improve operational awareness. The Zacks Consensus Estimate for current and next-year earnings for the stock has been revised 31% and 36.1% upward, respectively, over the past year. The stock has gained 14.5% in the past year. It has a long-term earnings growth expectation of 17.9% and delivered an earnings surprise of 12.9%, on average, in the trailing four quarters. Badger Meter sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Transcat (TRNS): Headquartered in Rochester, NY, Transcat is a leading provider of accredited calibration, repair, inspection and laboratory instrument services. It is focused on providing best-in-class services and products to pharmaceutical, biotechnology, medical device and other FDA-regulated businesses, aerospace and defense, and energy and utilities. The buyouts of Complete Calibrations provide Transcat with a local calibration presence to support the robust and growing life science market in Ireland, while the acquisition of Cleveland, OH-based e2b Calibration will likely help it strengthen its presence across the United States and Canada. The stock has gained 21.8% over the past year. It delivered an earnings surprise of 33.3%, on average, in the trailing four quarters and currently carries a Zacks Rank #2 (Buy).

<<<



---

[gfp927z]

>>> Why Transcat Stock Is Up Big Today


by Lou Whiteman

Motley Fool

May 21, 2024


https://finance.yahoo.com/news/why-transcat-stock-big-today-160021347.html


Testing and calibration equipment company Transcat (NASDAQ: TRNS) easily beat quarterly expectations and forecast continued strength into its new fiscal year. Investors are taking notice, sending Transcat shares up as much as 13% at the open and up 8% as of 10:45 a.m. ET.

Strong earnings and margin growth

Transcat provides calibration and testing services primarily to the life sciences industry, as well as to the aerospace, defense, energy, and utilities sector. The company earned $0.66 per share in its fiscal fourth quarter ending March 30 on revenue of $70.9 million, surpassing Wall Street's $0.53 per share on sales of $68 million estimate.

Consolidated adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 29.8% in the quarter, and EBITDA margin expanded by 200 basis points, fueled by a combination of strong organic growth and the benefit of acquisitions.

"Adjusted EBITDA growth of 30% for the fourth quarter reflects our ability to leverage organic service revenue growth and the successful integration of acquired companies," CEO Lee D. Rudow said in a statement. "Fourth-quarter consolidated revenue was up 14%, with gross margin expansion of 300 basis points year over year driven by our widened breadth of service offerings, excellent performance in the higher-margin rental business, and execution of automation and process improvement initiatives."

Is Transcat a buy following its strong earnings report?

Rudow is forecasting further gains in fiscal 2025 thanks to predictable, recurring revenue streams from highly regulated markets including life sciences. The rental business is a good hedge against potential economic headwinds, as it tends to hold up better through the cycle.

This is an under-the-radar stock serving an important role to a number of massive and growing industries. If Transcat can continue to execute as it did in the most recent quarter, the stock can go higher from here.

<<<



---

[gfp927z]

AVGO, SMCI, NVDA - >>> 3 Stock-Split Stocks to Buy Hand Over Fist Before They Soar as Much as 204% According to Select Wall Street Analysts


Motley Fool

by Danny Vena

Aug 12, 2024


https://finance.yahoo.com/news/3-stock-split-stocks-buy-220500617.html


One of the most intriguing developments for investors over the past few years is the return to popularity of stock splits. While the practice was commonplace in the late 1990s, it had fallen out of favor but has enjoyed a resurgence over the past several years. This corporate action is usually taken in response to years of strong operating and financial results, which ultimately drive a thriving stock price.

History suggests that top-performing businesses tend to continue firing on all cylinders. Companies that conduct forward stock splits generate share price increases of 25%, on average, in the year following the announcement, compared with average gains of 12% for the S&P 500, according to data compiled by Bank of America analyst Jared Woodard.

Here are three stock-split stocks with room to run, according to certain Wall Street analysts.

Broadcom: Implied upside 76%

The first stock-split stock with a lot of potential upside growth is Broadcom (NASDAQ: AVGO). The company occupies an enviable position in technology circles, supplying a wide range of software, semiconductor, and security offerings spanning the cable, broadband, mobile, and data center spaces. Broadcom says that "99% of all internet traffic crosses through some type of Broadcom technology," giving it a critical position in the ongoing artificial intelligence (AI) revolution.

Recent results show that business is booming. In the second quarter, revenue of $12.5 billion climbed 43% year over year, fueling adjusted earnings per share (EPS) of $10.96, which grew 6%. It's worth noting the recent acquisition of VMWare is weighing on the company's profit margin, which management expects to normalize by 2025. The company expects its strong growth to continue, raising its full-year revenue forecast to $51 billion, which would represent growth of 42%.

Its history of execution and robust growth led to Broadcom's 10-for-1 stock split, which took place in mid-July. Despite gains of 152% since early last year, many on Wall Street remain incredibly bullish. Just ahead of the split last month, Rosenblatt analyst Hans Mosesmann reiterated his buy rating and boosted his price target to a split-adjusted $240, which represents a potential upside for investors of 76% compared to Wednesday's closing price.

The analyst believes the accelerating adoption of generative AI will fuel greater sales of AI-related hardware, including application-specific integrated circuits (ASICs), networking, and switching chips. He also expects the integration of VMWare will begin to make a meaningful contribution.

He's not alone in his bullish take on Broadcom. Of the 38 analysts who offered an opinion on the stock in July, 33 rated the stock a buy or strong buy, and none recommended selling.

Nvidia: Implied upside 99%

The second stock-split stock with a boatload of potential is Nvidia (NASDAQ: NVDA). The company is the leading supplier of graphics processing units (GPUs) used in video games, cloud computing, and data center operations. This helped Nvidia quickly dominate the market for the chips used for generative AI, which supercharged its sales, as these GPUs provide the computational horsepower needed for AI.

For its fiscal 2025 first quarter (ended April 28), Nvidia generated record revenue of $26 billion, up a whopping 262% year over year, resulting in diluted EPS of $5.98, which surged 629%. The results were driven by the data center segment — which includes AI processors — as revenue for the segment soared 427% to $22.6 billion.

Nvidia's blockbuster results have propelled its stock price up 600% since the start of 2023, leading to its high-profile 10-for-1 stock split in June. However, some on Wall Street believe there's much more to come. Mosesmann has a buy rating on Nvidia and a Street-high price target of $200, which represents a potential upside of 99% compared to Wednesday's closing price.

The analyst believes that many of his colleagues fail to grasp the importance of the software integrated with Nvidia's AI processors, giving it a serious competitive edge. "We anticipate this software aspect will significantly increase in the next decade in terms of overall sales mix, with an upward bias to valuation due to sustainability," Mosesmann wrote in a note to clients.

He isn't the only one who believes there's much more to come. Of the 58 analysts who covered the stock in June, 53 rated the stock a buy or strong buy, and none recommended selling.

Super Micro Computer: Implied upside 204%

The last of our trio of stock split stocks with plenty of room to run is Super Micro Computer (NASDAQ: SMCI), also known as Supermicro. The company has been supplying custom servers to the tech industry for more than 30 years. Supermicro's building-block approach to rack-scale servers with direct liquid cooling technology is a perfect fit for the rigors of AI processing, as is the company's legendary focus on energy efficiency.

Supermicro has established strong working relationships with all the biggest chipmakers, ensuring it can get its hands on the most in-demand processors, including those from Nvidia, Advanced Micro Devices, and Intel.

In its fiscal 2024 fourth quarter (ended June 30), Supermicro generated record revenue of $5.3 billion, up 143% year over year and 38% quarter over quarter. This resulted in adjusted earnings per share (EPS) of $6.25, up 78%.

While some investors were concerned about the company's declining profit margin, CEO Charles Liang cited a bottleneck involving some server components, which pushed some deals into the next quarter. This, in turn, altered the product mix to include more lower-margin sales. He expects a rebound in the coming quarters.

Supermicro's robust results since early last year have driven stock price gains of 516%, leading the company to announce a 10-for-1 stock split just this week. Some on Wall Street believe this is just the beginning. Loop Capital analyst Ananda Baruah has a buy rating on the shares and a Street-high price target of $1,500. That represents a potential upside of 204% compared to Wednesday's closing price.

The analyst believes investors continue to underestimate Supermicro's sales potential, suggesting it can deliver a revenue run rate of $40 billion during fiscal 2026, up from less than $15 billion to close out fiscal 2024. Management is forecasting a similar performance, guiding for net sales of roughly $28 billion at the midpoint of its guidance for fiscal 2025.

Wall Street seems to agree. Of the 17 analysts who offered an opinion in July, 12 rated the stock a buy or strong buy, and none recommended selling.

A note on valuation

Each of these stock-split stocks has a long runway ahead, yet despite their prospects, remain attractively priced. Nvidia, Broadcom, and Supermicro are currently trading for 36 times, 29 times, and 14 times forward earnings, compared to a price-to-earnings (P/E) ratio of 27 for the S&P 500. While two of the three fetch a slight premium compared to the broader market, their track record of business and performance, blistering stock price gains, and solid future potential make them worth every penny.

<<<



---

[gfp927z]

>>> Super Micro Computer Just Made a Game-Changing Move. Here's What You Need to Know.


Motley Fool

by Billy Duberstein

Aug 12, 2024


https://finance.yahoo.com/news/super-micro-computer-just-made-075100491.html


As this earnings season has shown, large companies continue to invest heavily in AI. But one problem has been the massive electricity needs of these power-hungry AI servers. And with even higher-powered AI chips coming next year, this problem is set to compound.

To alleviate AI's massive power needs, data center operators are just starting to adopt direct liquid cooling (DLC) for AI server racks, as opposed to the traditional air-cooled racks used in the vast majority of data centers today.

Liquid-cooled data centers made up only about 1% of the market heading into this year but are now set to take off, perhaps leading to a big upheaval in the fast-growing AI server industry. With its long history of leading in new energy-efficient technologies, it's no surprise that Super Micro Computer is positioning itself to dominate this industry disruption.

From 1% to 15% in the blink of an eye

Liquid cooling has been only 1% of the data center market until now because, traditionally, it takes a long time to deploy, costs more, and leaks can cause component failure. Moreover, managing liquid-cooling systems takes a different kind of expertise than managing air-cooled systems.

However, it appears as though Supermicro may have cracked some sort of code in deploying liquid-cooled racks at scale. And that could be a big deal.

While analysts squirmed over the decline in Supermicro's gross margins last quarter, the decline may actually be good news for long-term investors. According to management, since unveiling its new liquid-cooled solutions at Computex in early June, the company has seen stronger-than-expected demand for its liquid-cooled racks. Therefore, the company had to pay for expedited shipping for liquid-cooling components, which cost more and hurt gross margins last quarter.

However, stronger-than-expected demand is not a bad problem to have. On the recent earnings conference call, Supermicro CEO Charles Liang said the company had shipped about 1,000 liquid-cooled racks in June and July, which Liang said amounted to more than 15% of all new global data center deployments globally over those two months. Liang also noted that Supermicro is forecasting that 25% to 30% of all new data center deployments will use DLC solutions over the next 12 months, "with most deployments coming from Super Micro, we believe."

Supermicro is investing to dominate this market

In the pre-AI world of traditional servers, Supermicro's premium, customized servers tended to have a relatively low market share in the fragmented industry of enterprise servers, at around 5%. However, Liang thinks Supermicro accounts for "at least" 70% to 80% of all the DLC servers shipped over the last few months.

While it's unlikely that Supermicro will hang on to that much market share over time, the company is clearly making the investments today to maintain a leading market share in DLC.

That could turn the enterprise server industry on its head, given that DLC is very rapidly going from 1% to potentially 30% of the server market in just one year. The explosion of DLC revenue is why Supermicro projects $26 billion to $30 billion in revenue over the next 12 months, roughly a doubling relative to the $14.9 billion it just made in the 12 months ending in June.

Why Supermicro isn't charging more

When executed well without leaks, DLC's advantages include up to 40% lower power consumption, better computing performance, and a faster time-to-online due to not having to install large air conditioners, all while lowering a data center's carbon footprint.

Given that, analysts are wondering why Supermicro isn't charging more. The company saw its gross margins fall to 11.3% in the quarter, partly due to expedited shipping costs, but it is only targeting a return to its traditional 14% to 17% gross margin range by the end of this year.

But if you have a value-add solution, such as DLC, you have two options: Either charge a higher price or try to disrupt the industry with large volumes at a lower price. Supermicro is apparently taking the latter disruptive path, at least at this early stage of the liquid-cooling era.

That may prove to be the smart long-term strategy, as it could pave the way for more market share. AI is a revolutionary technology, but it is expensive. Therefore, Supermicro keeping prices low could open more overall spending on AI servers from its customers. And if DLC eventually costs only on par with air-cooled servers, it could potentially be deployed even in traditional data centers, too.

With Supermicro also deploying a new data center building block solution (DCBBS) later this year — which incorporates end-to-end data center construction, including maintenance software and services — the company may generate more recurring maintenance/software revenue attached to its deployments than it did in the past when it was just a hardware parts provider.


So, getting more high-volume customers up front could be a smart move. Furthermore, Supermicro's costs are likely to come down next year as its new Malaysian manufacturing plant comes online in November with dramatically lower costs.

While many Supermicro investors appear to want more profits now, the company's heavy investments in taking the lead in direct liquid cooling for AI data centers — perhaps a big lead — could prove to be a game-changer.

<<<



---

[gfp927z]

>>> Why Occidental Petroleum Is Selling Shares of This 9.5%-Yielding Dividend Stock


Motley Fool

by Matt DiLallo

Aug 15, 2024


https://finance.yahoo.com/news/why-occidental-petroleum-selling-shares-094200259.html


Occidental Petroleum (NYSE: OXY) recently closed its needle-moving acquisition of CrownRock. It paid $12 billion for the fellow oil company, which will significantly enhance its position in the prolific Permian Basin. The acquisition should also boost its annual free cash flow by about $1 billion.

However, the oil stock took on a boatload of debt to close the deal (it issued $9.1 billion of new debt while also assuming $1.2 billion of CrownRock's existing debt). Because of that, the company's near-term focus is on paying down its debt as fast as possible. It recently took another step toward that goal by selling some of its interest in master limited partnership (MLP) Western Midstream Partners (NYSE: WES). That move should come as no surprise and might not be the last time it taps into this source of value.

Choppy progress on its plan

Occidental plans to repay at least $4.5 billion of debt within 12 months of closing its CrownRock deal via its increased free cash flow and the proceeds from asset sales. The oil company aims to raise $4.5 billion to $6 billion from selling assets over the coming years to help repay debt.

The company has already made some progress on that plan. It recently agreed to sell some non-core assets in the Delaware Basin to Permian Resources for $818 million. The company also sold some other non-core assets for $152 million. Those sales will give it $970 million to repay debt.

Occidental was working on an even larger deal. It had agreed to sell a 30% stake in CrownRock to its joint-venture partner in the Permian, Ecopetrol. The deal would have raised $3.6 billion, enabling it to achieve the low end of its target range well ahead of schedule. However, Ecopetrol opted out of that deal.

Despite that sale falling through, Occidental has made solid progress on its overall debt-reduction target. It had already retired $400 million in debt earlier this year. Meanwhile, it plans to make $1.9 billion of debt repayments by the end of this month, most of which it has funded with excess cash flow. The Permian Resources deal will give it another roughly $800 million to repay debt, which it expects to complete by the end of the third quarter. That would push its total debt reduction to $3.1 billion, leaving it about $1.4 billion away from its near-term target.

Trimming a little off the top

With the Ecopetrol deal falling through, Occidental Petroleum is pivoting by selling some of its stake in Western Midstream. Occidental is the largest unitholder of Western Midstream Partners, and until recently, the oil company owned 49.8% of the MLP's outstanding units. In addition, it has a 2% interest in Western Midstream Operating (the company that owns the operating assets). Occidental initially acquired its stake in Western Midstream when it bought Anadarko Petroleum in 2019, which had formed the midstream company to help support its operations.

The oil company has benefited from its relationship with Western Midstream over the years. The MLP has supported Occidental's growth by building additional infrastructure to handle the company's rising production volumes. The MLP has also supplied the oil company with a steady stream of cash flow via its lucrative cash distributions. Western Midstream has increased its base distribution by 52% this year, boosting its current yield to around 9.5%.

Occidental is now using the MLP as an additional source of cash. It recently launched a secondary offering to sell 19 million units. The sale has raised over $658 million in gross proceeds. That will put it even closer to achieving its near-term debt-reduction target.

The company could continue selling down its stake in Western Midstream if it needs additional cash to repay debt. It had reportedly shopped its entire stake in the company earlier this year. It could still sell its remaining interest to another midstream company or a private equity fund. Alternatively, Occidental could launch additional secondary offerings to raise cash when it wants to pay off more debt.

Almost there

Occidental Petroleum borrowed a lot of money to buy CrownRock, which is a concern given the oil sector's volatility (and what happened when it used that approach to buy Anadarko a few years ago). Because of that, the company planned to repay a big chunk of that debt by selling assets. It's now well on its way toward achieving its goals after selling some non-core assets and an interest in its MLP. With the company making progress, it's whittling away at a risk that could have weighed on its stock price if oil prices fall unexpectedly in the future.

<<<



---

[gfp927z]

Heico >>> Berkshire Buys Ulta Beauty and Heico Stock, Sells Snowflake in Second Quarter


Barron's

by Andrew Bary

Aug 14, 2024


https://www.barrons.com/articles/berkshire-buffett-ulta-beauty-snowflake-chubb-13f-stocks-9f755841?siteid=yhoof2


Berkshire Hathaway bought small stakes in Heico (HEI) and Ulta Beauty (ULTA) in the second quarter, while adding to its holding in Chubb (CB), according to the company’s quarterly 13-F filing released Wednesday after the market closed.

Berkshire eliminated its holding of 6.1 million shares of Snowflake (SNOW), the software company, which it bought at the time of the company’s initial public offering in 2020. That holding was worth about $1.2 billion at the end of March.

Berkshire bought 690,000 shares of Ulta Beauty that were worth $266 million at the end of the second quarter and just over a million shares of Heico, a supplier to the aerospace industry. That stake was worth $185 million on June 30.

Berkshire also bought about a million shares of insurer Chubb. It held 27 million shares worth $6.9 billion on June 30.

Berkshire trimmed its stake in Capital One Financial by about 2.6 million shares to 9.8 million shares in the second quarter.

Berkshire was a light buyer of stocks in the second quarter, purchasing less than $2 billion, while selling about $77 billion, mostly Apple

That stake fell nearly 50% to 400 million shares and was reported in Berkshire’s recently released 10-Q report for the second quarter.

Ulta Beauty stock was higher in after-hours trading, rising 13% to $371.70. The stock was down about 33% in 2024 as of the close of trading Wednesday and Berkshire appears to have taken advantage of that weakness.

Berkshire CEO Warren Buffett oversees the company’s equity portfolio of more than $300 billion, but he delegates authority over about 10% of it to investment managers Todd Combs and Ted Weschler. They operate independently of Buffett.

The new holdings in Heico and Ulta Beauty could be investments by Combs or Weschler given their small size. Buffett tends to accumulate holdings of at least $3 billion in order to move the needle given the large size of the Berkshire portfolio and Berkshire’s market capitalization of $940 billion.

The Snowflake holding is believed to have been initiated by Combs. At the time of the Snowflake IPO in 2020, the company’s CEO Frank Slootman said most of his Berkshire interactions had been with Combs.

The Snowflake investment likely wasn’t particularly profitable for Berkshire—a demonstration of the dangers of buying richly priced IPOs. Snowflake went public in late 2020 at $120 and its stock price averaged about $150 a share in the second quarter. The stock is below that level now, trading down 1.5% to $125.41 in after-hours action on Wednesday.

Berkshire eliminated its holding in Paramount Global in the second quarter—a move that Buffett telegraphed at his company’s annual meeting in May.

The company reduced its sizable holding in Chevron by four million shares to about 119 million shares that were worth $18.6 billion on June 30. That move was disclosed in the 10-Q.

Berkshire also bought about 92 million shares of Sirius XM Holdings, the satellite radio company, in the second quarter. It held 133 million shares on June 30, a stake that is now worth about $400 million. Berkshire also is the largest shareholder of Liberty Sirius XM Holdings, a tracking stock for Sirius XM, with a stake of about 30%. The two companies are due to merge in September.

<<<



---

[gfp927z]

>>> Why Sterling Infrastructure Rallied on Tuesday


by Billy Duberstein

Motley Fool

Aug 6, 2024


https://finance.yahoo.com/news/why-sterling-infrastructure-rallied-tuesday-202608080.html


Shares of Sterling Infrastructure (NASDAQ: STRL) rallied as much as 11.1% Tuesday, before settling into a mere 4% gain as of 3:47 p.m. ET.

Sterling reported second-quarter earnings last night that handily surpassed expectations, and raised guidance, quelling some recent fears over the state of the economy generally and the construction industry specifically. But by pivoting to the hottest parts of the market, Sterling was able to fly by profit forecasts.

A beneficiary of the infrastructure bill and AI boom

In the first quarter, Sterling delivered 11.6% revenue growth to $582.8 million, along with 31% earnings-per-share (EPS) growth to $1.67 per share, with both figures handily beating analyst estimates. Management also raised full-year guidance to a range of $2.15 billion to $2.225 billion in revenue and $5.60 to $5.75 in diluted earnings per share. That was up from prior guidance of $2.125 billion to $2.215 billion and $5 to $5.30, respectively, on the first-quarter release.

Some analysts may not have been expecting results like these because a fair amount of the U.S. construction industry and consumer spending is hitting a slowdown. But Sterling was able to lean into the fastest-growing and higher-margin segments of its business, specifically riding the wave of infrastructure and AI spending.

Sterling has three main segments:

E-infrastructure solutions, which serves the data center and next-gen manufacturing sectors, as well as e-commerce warehouses and other commercial buildings

Transportation solutions, which executes projects for highways, roads, bridges, airports, ports, light rail, water systems, and others

Building solutions, which serves residential and commercial construction

Sterling has been able to capitalize on growing in the best parts of its end markets. For instance, e-infrastructure revenue declined 7%, but that segment's operating income grew 20%, as Sterling was able to achieve 100% growth in the higher-margin data center segment, even as other segments lagged. While the building solutions segment declined 2%, operating income in that segment was up 2%. Meanwhile, the transportation segment surged 54% and operating profits grew 57%, likely on the back of very strong public-private infrastructure investments resulting from the Bipartisan Infrastructure Act of 2021.

A top operator still looks like a good buy

Sterling Infrastructure is showing solid growth even as some parts of its business are challenged, along with impressive profit expansion, showing off management's execution and the ability to target the most attractive markets.

Trading at just 18.8 times this year's recently raised guidance for EPS and sporting a solid net cash position on the balance sheet, Sterling looks like a good buy, assuming the U.S. is able to avoid a recession.

<<<



---

[gfp927z]

>>> UFP Technologies Acquires Marble Medical


UFP Technologies, Inc.

Jul 16, 2024


https://finance.yahoo.com/news/ufp-technologies-acquires-marble-medical-200500449.html


NEWBURYPORT, Mass., July 16, 2024 (GLOBE NEWSWIRE) -- UFP Technologies, Inc. (Nasdaq: UFPT), a designer and custom manufacturer of comprehensive solutions for medical devices, sterile packaging, and other highly engineered custom products, today announced the acquisition of Marble Medical. Founded in 1988 and headquartered in Tallahassee, FL, Marble Medical develops and manufactures adhesive based medical components and single-use devices.


“Adding Marble Medical’s adhesives expertise is a great complement to our surgical robot drapes and stick to skin device platforms,” said R. Jeffrey Bailly, chairman and CEO of UFP Technologies. “Marble Medical is a 3M Preferred Converter, and along with their precision die cutting capabilities, gives our clients access to a broader range of innovative solutions incorporating highly specialized adhesive technologies.”

“In addition, Marble Medical is a longstanding partner to our DAS Medical operation, making them an excellent overall fit into our MedTech business,” continued Bailly. “This acquisition aligns with our strategic focus and provides valuable technologies in multiple key markets to bring more value to our client base. This expanded range of materials and capabilities will also allow us to vertically integrate in many existing application areas.

Joe Audie, Marble Medical’s president, stated, “We are excited to join the UFP family and be part of such a fast growing and dynamic company. UFP’s customer base, engineering skills, vast resources, and global manufacturing footprint is expected to help Marble accelerate growth by leveraging our biocompatible adhesives expertise in adjacent areas such as diagnostic patches, wound care, and other stick to skin applications.”

About UFP Technologies, Inc.

UFP Technologies is a designer and custom manufacturer of comprehensive solutions for medical devices, sterile packaging, and other highly engineered custom products. UFP is an important link in the medical device supply chain and a valued outsource partner to most of the top medical device manufacturers in the world. The Company’s single-use and single-patient devices and components are used in a wide range of medical devices and packaging for minimally invasive surgery, infection prevention, wound care, wearables, orthopedic soft goods, and orthopedic implants.

<<<



---

[gfp927z]

Winmark - >>> While Amazon is one of the best-known companies in the world, Winmark (NASDAQ: WINA) flies under the radar. Winmark is a franchisor of stores that resell used items. Its brands include Play it Again Sports, Plato's Closet, Once Upon a Child, and others. Winmark has been a winning stock for a long time, but it's still relatively small, with a market capitalization of $1.4 billion.

https://finance.yahoo.com/news/2-magnificent-stocks-im-never-134500518.html

What's attractive about owning Winmark's stock is its business model. As a franchisor, most of the costs associated with owning a retail business fall on the franchisees. This provides Winmark with attractive margins.

For example, in second-quarter 2024, Winmark's gross margin was 95.8%. Looking further down the income statement, this led to a net profit margin of 51.8%. These margins have also ticked up slowly and steadily over time.

While it's clear that the economics of being a franchisor work out well for Winmark and its shareholders, there's evidence that its franchisees are happy as well. In Q2 2024, Winmark had a 100% renewal rate in four out of five of its brands.

Winmark adds new stores throughout the year, but the pace is deliberate. So far in 2024, the company has grown its total store count by 1.2%. The fact that its franchisees renew in such high numbers is a good sign for the future of the business, as it helps supplement the slow but steady store growth.

<<<



---

[gfp927z]

>>> Coca-Cola (NYSE:KO), an iconic brand with a century-long history, is a staple income stock. Known for its robust and diversified product lineup, Coca-Cola has consistently delivered strong financial performance. Business tycoon and investment guru Warren Buffett considers Coca-Cola his "Secret Sauce," referring to its dividend prowess, as Berkshire Hathaway generates millions annually in payouts.

https://finance.yahoo.com/news/3-must-dividend-stocks-according-180056727.html

Coca-Cola currently pays $1.94 in dividends annually, yielding 2.85% on the current price. The company has raised its dividends for 63 years, making it a Dividend King.

Citigroup gave Coca-Cola a Buy rating with a price target of $75 last month, indicating a potential upside of over 10%. Argus Research also gave the company a Buy rating with a price target of $72, indicating a potential upside of nearly 6%.

<<<



---

[gfp927z]

>>> CosMc’s: McDonald’s finally reveals menu, details about spinoff restaurant


Today

by Joseph Lamour

Aug 8, 2024


https://finance.yahoo.com/news/cosmc-mcdonald-finally-reveals-menu-040943806.html


For its latest venture, McDonald’s is thinking outside the box — and into outerspace.

The fast-food chain officially announced its universe is expanding with CosMc’s, a new, small-format, space-themed, beverage- and breakfast-focused restaurant concept. McDonald’s CEO Chris Kempczinsk announced the news of the spinoff restaurant chain during its investor day on Dec. 6.

CosMc’s is based on McDonald’s beloved, extraterrestrial mascot from the ’80s and ’90s. CosMc is known for its zippy personality, which makes the menu, which features energy-boosting beverages and unique treats, perfectly fitting.

CosMc’s locations

The first location, which opened in December, is located in Bolingbrook, Illinois and is part of a limited test run.

In 2024, so far, McDonald’s has opened four more locations, all in Texas: Arlington, Dallas, Watauga and, most recently, San Antonio. See details on all the locations here.

CosMc’s has a pretty extensive menu, focusing heavily on breakfast and featuring more than 10 new beverages never before seen on a McDonald’s menu.

McDonald’s says CosMc’s menu is “rooted in beverage exploration, with bold and unexpected flavor combinations, vibrant colors and functional boosts.”

What this means is a broad range of drinks, from lemonades and coffees to energy-boosting beverages like Sour Cherry Energy Slush, Tropical Spiceade and S’mores Cold Brew. Patrons can customize their drinks by adding fruity boba, flavor syrups, energy shots and more.

As far as food goes, CosMc’s Spicy Queso Sandwich and Creamy Avocado Tomatillo Sandwich are its sandwich options, but there are many more sweet and savory snacks to pick and choose from.

On the savory side, CosMc’s offers Savory Hash Brown Bites and Pretzel Bites, and on the sweet side, it’s got a Blueberry Lemon Cookie Sundae, Caramel Fudge Brownie and more.

And yes, you can expect to find a few McDonald’s classics on the menu — but no combo meals.

CosMc’s is set to offer what McDonald’s calls a “seamless digital and Drive Thru experience,” where customers can use a dynamic menu board and cashless payment devices to “breeze through” ordering and payment processes. Drive-thru pickup windows will be assigned once your order is ready.

CosMc’s history

For those unfamiliar with CosMc, according to the McDonald’s Wiki, he was featured in a series of McDonald’s commercials and print ads from 1986 to 1992.

In one 1987 commercial, CosMc lands in McDonaldland, only to be discovered by Ronald McDonald, Grimace and the Professor (another character that has since faded into obscurity). The ragtag group’s initial interaction with the character introduces the alien as one who likes to trade, though without permission at first, so it’s less interplanetary commerce and more robbery with a parting gift.

After some hijinks, CosMc and the crew enjoy a meal together, where the alien calls McDonald’s grub “deliciously awesome,” the alien turtle-shells back into his space suit — which also functions as his spaceship — and zooms away.

McDonald’s CEO Chris Kempczinski first revealed it would be launching the spinoff restaurant chain on July 27 in a Q2 conference call.

News of CosMc being plucked from McDonald’s past comes after the extremely successful revival of Grimace. This summer, the big purple blob had his super viral moment in the sun with the release of the Grimace Shake, which led to a darkly humorous TikTok trend with nearly 4 billion views to date.

“This quarter, if I’m being honest, the theme was Grimace,” Kempczinski said on the call.

Q1, McDonald’s hopes, will be out of this world.

<<<



---

[gfp927z]

Pepsico - >>> People won't stop buying groceries

https://finance.yahoo.com/news/3-soaring-stocks-hold-next-131700831.html

Food and beverages are a no-brainer for long-term investors. Companies like PepsiCo (NASDAQ: PEP) may not set the world ablaze with growth, but slow-and-steady expansion has fueled durable investment returns for decades. PepsiCo sells its namesake soda but, in reality, is a conglomerate of food and beverage brands, including Mountain Dew, Gatorade, Quaker, Frito Lay, Doritos, Cheetos, and many more. You'll find PepsiCo's products throughout grocery stores worldwide, which makes it hard for the company to have a down year.

Given that context, it's no shocker that PepsiCo is a magnificent dividend stock. PepsiCo is a Dividend King, with over five decades of consecutive dividend growth. The stock offers an excellent combination of income and upside due to its current 3% yield and five-year annualized dividend growth rate between 6% and 7%. PepsiCo pays about 66% of its earnings out as dividends, leaving enough cushion for PepsiCo to invest in growth or endure an unexpected slump.

While PepsiCo is recession-resistant, management has noted that consumers have resisted price increases. As a result, the stock has dipped to a price-to-earnings (P/E) ratio under 22 versus its five-year average of 26. The stock seems fairly valued today (not too expensive, but not cheap). Investors looking for a long-term stalwart that can deliver slow and steady growth should consider PepsiCo a stock they can trust.

<<<



---

[gfp927z]

>>> Houlihan Lokey to Acquire Waller Helms Advisors


Business Wire

Aug 8, 2024


https://finance.yahoo.com/news/houlihan-lokey-acquire-waller-helms-123000333.html


Acquisition Substantially Enhances Firm’s Coverage Capabilities in Insurance and Wealth Management Sectors, Doubling Size of Financial Services Group

NEW YORK & CHICAGO, August 08, 2024--(BUSINESS WIRE)--Houlihan Lokey, Inc. (NYSE:HLI), the global investment bank, has agreed to acquire Waller Helms Advisors (Waller Helms), an independent advisory firm that provides investment banking services to clients in the insurance and wealth management sectors. The transaction, signed on August 6, 2024, confirms Houlihan Lokey as the premier investment banking advisor in these sectors and underlines the firm’s leadership across the global financial services sector. The deal is expected to be completed before December 31, 2024, following regulatory approvals.

Founded in 2014, Chicago-based Waller Helms provides advisory services in connection with mergers and acquisitions, private capital raising, and valuation services, advising clients primarily in the insurance and wealth management sectors. Since its founding, the firm has advised on more than 230 transactions with over $40 billion of aggregate value. Recent notable transactions include the sale of Century Equity Partners’ portfolio company, DOXA Insurance, to Goldman Sachs Asset Management; The Mather Group’s recapitalization by The Vistria Group; and BenefitMall’s sale to Truist Financial Corporation (NYSE:TFC) on behalf of the Carlyle Group (NASDAQ:CG).

Waller Helms’ nearly 50 financial professionals, including 13 Managing Directors, will join Houlihan Lokey’s Financial Services Group. James Anderson, Chief Executive Officer of Waller Helms, will join as a Managing Director and Global Co-Head of the Financial Services Group alongside Jeffrey Levine, Global Head of Financial Services. In addition, John Waller and David Helms, Co-Founders of Waller Helms, will also join as Managing Directors to further support and enhance the firm’s coverage efforts for its clients across the financial services sector. The acquisition adds financial professionals in Chicago, New York, Miami, and the greater Atlanta area.

"The addition of this talented group of bankers is highly complementary to our Financial Services platform, adding meaningfully to our current coverage capabilities across numerous subsectors within insurance and wealth management. On a combined basis, the Group is now the number one advisor to clients in the insurance and wealth management sectors. We are delighted that the Waller Helms team is joining Houlihan Lokey and I look forward to partnering with James to lead the new team, now comprising nearly one hundred financial professionals," said Mr. Levine.

On a pro forma basis, and according to data from LSEG, the new combined group now ranks as the No. 1 advisor for all global M&A transactions in 2023 in the insurance sector; the asset management sector, including wealth management; and the financial services sector, excluding depositories.

"As we discussed a possible combination, it became clear that Houlihan Lokey shares our dedication to deep sector expertise and more importantly, a fierce dedication to client success," said Mr. Anderson. "It is this cultural compatibility and client-first ethos that makes this combination so compelling, and we’re excited to work with our new colleagues at Houlihan Lokey and continue delivering superior outcomes to clients."

"The addition of the Waller Helms team is exemplary of our desire to provide our clients with the greatest depth of sector expertise in the midcap space, alongside our market-leading private capital expertise, extensive relationships among financial sponsors, and other services," said Larry DeAngelo, Global Co-Head of Corporate Finance.

"Over the past ten years, we have built a talented and passionate team and have had the honor to assist incredible, best-in-class clients on industry-leading transactions. Houlihan Lokey is the ideal home for our team and clients to thrive for years to come," said Mr. Waller.

"The strength of Houlihan Lokey’s global platform and our shared philosophies on collaboration and attracting and developing the best talent in the industry has us truly excited about our collective opportunity," said Mr. Helms.

"We have known the Waller Helms team for many years, and their long track record of success in financial services advisory is truly impressive. We look forward to introducing our new partners to our global client base as we continue to grow and enhance our service offering in Corporate Finance," said Jay Novak, Global Co-Head of Corporate Finance.

About Houlihan Lokey

Houlihan Lokey, Inc. (NYSE:HLI) is a global investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and financial and valuation advisory. Houlihan Lokey serves corporations, institutions, and governments worldwide with offices in the Americas, Europe, the Middle East, and the Asia-Pacific region. Independent advice and intellectual rigor are hallmarks of the firm’s commitment to client success across its advisory services. The firm is the No. 1 investment bank for all global M&A transactions, the No. 1 M&A advisor for the past nine consecutive years in the U.S., the No. 1 global restructuring advisor for the past ten consecutive years, and the No. 1 global M&A fairness opinion advisor over the past 25 years, all based on number of transactions and according to data provided by LSEG (formerly Refinitiv).

<<<



---

[gfp927z]

Waste Management - >>> Turning trash into treasure

https://finance.yahoo.com/news/stock-market-sell-off-2-092800804.html

WM stock has fallen about 10% from its recent peak. That sell-off has come even though the leading waste management company is having another solid year. The company's revenue rose 5.5% in the second quarter, while its underlying earnings jumped 10.3% due to continuing margin expansion (its margin hit 30% for the first time ever).

The company has also made excellent progress on its strategic expansion plan. It spent over $750 million in the first half of the year growing its solid waste collection business via a string of strategic acquisitions, adding several new geographies while also expanding in some of its growth markets.

WM also continues to expand into adjacent areas to its core business to drive more growth. It recently opened two upgraded recycling facilities and is building several renewable natural gas projects. Meanwhile, it agreed to acquire leading medical waste services provider Stericycle for $7.2 billion, which should be an accretive deal for shareholders.

The company's growing cash flow will give it more money to return to shareholders. While WM plans to pause share repurchases over the next 18 months while it repays debt related to the Stericycle deal, it should continue increasing its dividend.

WM operates such a stable business that it rarely goes on sale. Because of that, the recent 10% discount in its share price looks like a compelling long-term buying opportunity. However, I'd like to see an even bigger discount before I buy more shares, with my target to buy them if they fall below $185.

<<<



---

[gfp927z]

Broadcom - >>> 1 Stock-Split Artificial Intelligence (AI) Stock to Buy Before It Skyrockets 67%, According to One Wall Street Analyst


by Adam Levy

Motley Fool

Aug 7, 2024


https://finance.yahoo.com/news/1-stock-split-artificial-intelligence-082800345.html


The growing demand for artificial intelligence (AI) has produced some massive stock gains for some companies and their investors. Several stocks have climbed so much in such a short period of time that management decided to split their shares.

While a stock split doesn't change the value of a company, it can make the stock more attractive to retail investors. Additionally, it can provide more precision for stock-based compensation packages, a common practice in the tech industry.

Recent high-profile stock splits in the AI industry include Nvidia and Lam Research, which both announced 10-for-1 stock splits earlier this year. But Broadcom (NASDAQ: AVGO), which recently underwent a 10-for-1 split, could be a better buy with the potential for its price to climb 67% within the next year, according to one Wall Street analyst.

Rosenblatt Securities slapped a $240 (split-adjusted) price target on the stock a few weeks ago. Here's why the analysts think the stock could climb 67% within a year.

The other AI chipmaker

While Nvidia gets all the headlines about the demand for its GPUs to help train large language models, Broadcom has also seen soaring demand for its AI-related chips. The chip designer provides two types of chips that are extremely useful in data centers focused on generative AI. Combined, AI-related revenue increased 280% year over year in the second quarter.

Broadcom's networking chips help data centers get the most out of the equipment they buy. Big tech is spending billions every quarter on Nvidia GPUs. However, those clusters of GPUs require the efficient routing of data in order to maximize their processing power. Broadcom's chips ensure data gets to where it needs to go as quickly as possible so that there's minimal time wasted without GPUs crunching data. As data centers bring more and larger clusters online, demand for networking chips can grow exponentially, and that's exactly what we've seen.

Broadcom also develops AI accelerators. AI accelerators are custom chips designed specifically for training and running generative AI algorithms. Broadcom works with Alphabet's Google and other hyperscale cloud platforms on custom solutions. These chips have proven very cost-efficient alternatives to Nvidia's GPUs. For example, Apple used Google's Tensor Processing Unit designs to train its Apple Intelligence foundation models.

Broadcom's management says cloud providers are accelerating their investments in accelerator designs. Not only does that mean more accelerator sales for Broadcom, but it should also support its networking chips. "Networking these AI accelerators is very challenging, but the technology does exist today in Broadcom," CEO Hock Tan told analysts during the company's second-quarter earnings call. In other words, when a customer uses its AI accelerator designs, it's also more likely to use its networking chips, too. That creates a strong cycle of growth for the business.

That trend is the primary reason Rosenblatt increased its Broadcom price target. But there's another reason as well.

AI chips are just one part of Broadcom's business

While AI chips might be the fastest-growing part of Broadcom's operations, it also has an excellent enterprise software business.

The most recent addition to its software solutions portfolio is VMWare, which the company acquired last year. It's since taken steps to transform the product into a simple subscription service. It's already signed 3,000 of its largest 10,000 customers to build self-service virtual private clouds, resulting in strong bookings growth. Management expects its annualized booking value to accelerate from $1.2 billion in the first quarter to reach a $4 billion quarterly run rate.

Importantly, the simplification of VMWare and the integration with its other software products and sales team should lead to strong synergies. Management has already incurred about $2 billion of restructuring costs related to the acquisition, but it's bringing down the costs of ongoing operations. Pre-acquisition VMWare had $2.3 billion in average quarterly operating expenses, management sees that falling to $1.3 billion by the end of the year by eliminating redundancies with its existing operations.

The improved synergies of the software segment with VMWare are another reason Rosenblatt is bullish on Broadcom. Ongoing progress in integrating VMWare should lead to strong margin expansion in the back half of the year.

Shares of Broadcom currently trade for a forward P/E of around 24. That's well below many other big AI companies. What's more, the company is well-positioned to support that valuation with strong earnings-per-share growth over the next few years from AI chip sales and improving software margin. While the stock might not climb another 67% from here by mid-year next year, it certainly looks like a good stock to buy at its current price.

<<<



---

[gfp927z]

>>> Super Micro Computer Misses Earnings Estimates, Announces 10-for-1 Stock Split


Investopedia

by Naomi Buchanan

Aug 6, 2024


https://finance.yahoo.com/news/super-micro-computer-misses-earnings-225616849.html


Key Takeaways

Super Micro Computer reported fiscal fourth-quarter earnings that missed analysts' estimates and announced a 10-for-1 stock split.

Revenue more than doubled year-over-year and came in slightly ahead of analysts' expectations, but the company's margins fell as costs rose, holding back profits.

Super Micro Computer CEO Charles Liang said the company has benefited from "record" demand for artificial intelligence infrastructure.

Net income of $353 million or $5.51 per share surged from the year prior, but missed analysts' projections.

Record Demand for New AI Infrastructure

The CEO added the company could be "well positioned to become the largest IT infrastructure company, driven by our technology leadership including rack-scale DLC liquid cooling and business values of our new Datacenter Building Block Solutions."

Super Micro Computer said it expects revenue to be between $6 billion and $7 billion for the first quarter of fiscal 2025, while its full-year sales outlook was in the range of $26 billion and $30 billion, above analysts' projections.

The company also announced a 10-for-1 forward split, with split-adjusted trading expected to start on Oct. 1.

Super Micro Computer shares were down more than 12% at $540.02 in extended trading as of 6:50 p.m. ET Tuesday following the company's earnings release.

<<<



---

[gfp927z]

Chubb - >>> Berkshire Hathaway Added 26 Million Shares of This Stock in the Past 3 Quarters: Here's Why It's a Smart Buy Today


by Courtney Carlsen

Motley Fool

Aug 3, 2024


https://finance.yahoo.com/news/berkshire-hathaway-added-26-million-222400906.html


Since becoming CEO at Berkshire Hathaway in 1965, Warren Buffett has delivered 19.8% compound annual returns to investors, or enough to turn a $100 investment into $4.4 million today. Buffett's extended track record of success is one reason investors eagerly await the release of Berkshire's quarterly report showing the stocks the conglomerate bought and sold during the quarter.

Over the past three quarters, Berkshire Hathaway has bought shares of Chubb stock hand over fist and kept its buying confidential for two quarters. Berkshire owns 26 million shares of the insurer as of March 31, worth roughly $7.2 billion today. Here's why Chubb is a smart buy for investors today.

Why Buffett is drawn to insurance investments

Buffett loves the insurance industry, going back to his days as a student at Columbia Business School. At the time, Buffett learned under Benjamin Graham, who invested in GEICO in 1948. It was one of the best-performing assets during Graham's career.

When Buffett acquired Berkshire Hathaway in 1965, it was a failing textile company that was barely staying afloat. In 1967, Berkshire acquired the insurer National Indemnity, which Buffett credits as a turning point in Berkshire Hathaway's history.

Insurance companies' cash flows make them appealing investments, which is why Buffett continues to invest heavily in them. A few years ago, Berkshire Hathaway acquired Alleghany for $11.6 billion, adding to its list of insurance companies owned by Berkshire Hathaway, including GEICO, National Indemnity, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group.

Chubb is one of the largest and best at managing risk

Chubb is one of the world's largest property and casualty insurance companies and underwrites various policies, including personal automotive, homeowners, accident and health, agriculture, and reinsurance.

The company has an excellent risk management history, which you can observe by its combined ratio. This essential insurance metric is the sum of claims costs (how much an insurance company pays out on a policy) and expenses (like employee compensation or fixed overhead) divided by the premiums the company collects.

Over the past two decades, Chubb's average combined ratio was 90.8%, well below the industry average of 100%. This matters because it translates into free cash flow, which the company uses to pay dividends, buy back shares, or invest in things like bonds and stocks. Chubb's solid growth is why it has raised its dividend payout for 31 consecutive years.

Another benefit of investing in insurance is the timing of cash flows. Insurers collect premiums upfront and pay out claims down the road. In the time between, the company can invest this money, known as "float," usually in short-term Treasury bills. As policies expire, companies keep their profits and can build an extensive investment portfolio over time.

Chubb has a $113 billion investment portfolio primarily invested in fixed-income securities. Last year, it earned $4.9 billion in investment income, up 32% year over year, and its yield on average invested assets improved from 3.4% to 4.2% as it benefited from rising interest rates. Through the first six months of 2024, Chubb's net investment income has increased another 27% from last year.

Chubb is well positioned

The Federal Reserve is projected to cut interest rates sometime this year and into next, which could negatively impact Chubb's investment portfolio in the short term. However, some longtime market participants think interest rates could stay elevated.

For example, Howard Marks of Oaktree Capital Management has described a "sea change," saying, "For various reasons, the Fed is not going to go back to the ultra-low interest rates over the last 13 years" in a 2023 interview on the Motley Fool Money podcast. If that's the case, insurers like Chubb will benefit by earning more interest income than was possible in the decade and a half prior.

JPMorgan Chase CEO Jamie Dimon also cautioned that "there are still multiple inflationary forces in front of us" due to fiscal deficits, rising interest rates, and stubbornly high inflation. Chubb is already a solid company to own, and if inflationary pressures persist, it has the pricing power to adapt to rising costs, giving it stellar potential for the next decade and beyond.

<<<



---

[gfp927z]

>>> Why Booz Allen Hamilton Stock Is Sinking Today


by Lou Whiteman

Motley Fool

Jul 26, 2024


https://finance.yahoo.com/news/why-booz-allen-hamilton-stock-170740049.html


Government contractor Booz Allen Hamilton (NYSE: BAH) missed Wall Street's profit expectations for the quarter and set full-year profit guidance that underwhelmed expectations. Investors are looking elsewhere, sending Booz shares down 10% as of 12:30 p.m. ET.

Costs creep higher

Booz Allen Hamilton provides information technology and consulting services for civilian and military government customers. The company has outperformed the market over the past five years, and investors had big hopes coming into earnings season.

But Booz failed to deliver. The company earned $1.38 per share in its fiscal first quarter ended June 30, well short of the $1.52 per share Wall Street had expected. Revenue, at $2.94 billion, came in close to expectations.

The issue was costs. Headcount grew 7.7% year over year, but management said during the earnings call there was a gap between when the new hires came on and when they became billable under new contracts.

For the full fiscal year, Booz Allen sees earnings coming in at between $5.80 and $6.05 per share. That suggests some potential downside compared to Wall Street's $6.05-per-share expectation.

Is Booz Allen Hamilton a buy?

There is a lot to like in this report. Headcount tends to be a good indicator of future revenue, and Booz Allen said it booked $1.80 of new business in the quarter for every $1 it billed out. Overall, the company expects revenue to grow between 8% and 11% in its new fiscal year.

But the expenses are something to watch and the full-year guidance is not nearly as impressive as the numbers that Wall Street had hoped for.

Booz Allen Hamilton is a solid operator with strong connections inside some of the most important areas of the U.S. government and is set up well to be a long-term winner. But investors need to be on the lookout for further volatility until the market has more clarity about how fiscal 2025 is playing out.

<<<



---

[gfp927z]

>>> Procter & Gamble Dinged By Beauty and Diaper Sales Declines


Investopedia

by Bill McColl

Jul 30, 2024


https://finance.yahoo.com/news/procter-gamble-dinged-beauty-diaper-150851535.html


Key Takeaways

Procter & Gamble posted a decline in sales of beauty products and diapers, and shares tumbled Tuesday.

The consumer products giant missed revenue estimates, although adjusted profit was better than expected.

P&G also faced what it called "unfavorable foreign exchange impacts."

Shares of Procter & Gamble (PG) tumbled Tuesday when the consumer products giant missed revenue estimates as sales of its beauty products and diapers declined.

P&G reported fiscal 2024 fourth-quarter revenue was basically unchanged from last year at $20.53 billion, affected by “unfavorable foreign exchange impacts,” while the average of analysts surveyed by Visible Alpha came in at $20.75 billion. Adjusted earnings per share (EPS) of $1.40 was above forecasts.

CFO Says Supply-Chain Constraints Hit Luvs

Beauty division sales fell 1% year-over-year to $3.72 billion, hurt by lower demand for the super-premium SK-II brand and in Greater China. Sales at its Baby, Feminine & Family Care unit dropped 3% to $5.01 billion, and Chief Financial Officer (CFO) Andre Schulten explained in an interview that the company wasn't able to innovate its Luvs diaper brand because of supply-chain constraints.

Chief Executive Officer (CEO) Jon Moeller said the company faced "a challenging economic and geopolitical environment" during the year.

Even with today's 6% declines to $159.69 as of 11 a.m. ET, shares of Procter & Gamble are about 9% higher year-to-date.

<<<



---

[gfp927z]

>>> Gartner (NYSE: IT) is known for its research and consulting services, and the company works with businesses across 90 countries and territories around the globe. The company's Magic Quadrant report has become an industry standard for businesses in the tech space to look at competitors in a particular market and strategize their own growth approach.

https://finance.yahoo.com/news/2-unstoppable-growth-stocks-buy-084300768.html

Gartner makes money in several different ways. Its research segment is its largest source of revenue growth and is subscription-based. Most contracts are at least 12 months long, and roughly 70% are multiyear, giving the company predictable sources of recurring revenue. This segment delivers the research content and data-driven analysis that organizations of all sizes around the world use to align their business vision and streamline operations.

Gartner's second stream of revenue is from the conferences that it holds for information technology and business executives. Finally, Gartner makes money from consulting services provided to chief information officers and other senior executives at various companies.

Revenue from Gartner's research division is recognized over the term of the specific contract. Revenue from its conference division is recognized once the meeting or conference is completed. Consulting revenues often derive from fixed fees or are delivered as those specific services are provided.

To give readers an idea of the breakdown of Gartner's revenue sources as they translate to its overall balance sheet, in the full year 2023, the company reported just shy of $6 billion in total revenue. That was a nice 8% bump compared to the full year 2022. Of that total revenue amount, about $4.9 billion was derived from its subscription-based research segment, while conference revenue totaled $505.2 million and consulting revenue $514.7 million.

Gartner is a profitable company. Last year, the company brought in a total net income of about $883 million, up 9% from the prior 12-month period. Fast-forward to the first quarter of 2024, and the company brought in profits of $211 million on revenue of about $1.5 billion. That revenue figure was up about 5% one year ago, even though net income was down year over year.

The company is also consistently cash-flow positive. Gartner brought in an operating cash flow of $189 million in Q1 and a free cash flow of $166 million. Those two figures were up 15% and 16% from one year ago. Gartner's leadership in the technological research and consulting space has given it a considerable footprint in a vast total addressable market that management estimates is in the region of $200 billion. Shares are up about 30% from one year ago, and some investors might want to take a second look before they possibly edge higher.

<<<



---

[gfp927z]

>>> UFP Industries Announces Second Quarter Results


Business Wire

Jul 30, 2024


https://finance.yahoo.com/news/ufp-industries-announces-second-quarter-110000125.html


GRAND RAPIDS, Mich., July 30, 2024--(BUSINESS WIRE)--UFP Industries, Inc. (Nasdaq: UFPI) today announced second quarter 2024 results including net sales of $1.9 billion, net earnings attributable to controlling interest of $126 million, and earnings per diluted share of $2.05.

"Our second quarter results were in line with expectations in a more challenging business cycle, and I am grateful for the efforts of all of our UFP teammates to adapt to this environment and adjust capacity to meet demand," said Chairman and CEO Matthew J. Missad. "The weaker environment and expected near-term softness in demand have enabled us to more aggressively pursue our long-term expansion plans and improvement strategies. These efforts include investments in automation and consolidating operations to eliminate redundancies, lower costs and enhance the profitability of each of our facilities. Additionally, we are using our strong balance sheet to stay on offense by investing in acquisitions, new ventures, new value-added products, and organic expansion, while returning capital to shareholders through our recently increased dividend and share repurchase program. Our long-term outlook for growth remains strong."

Second Quarter 2024 Highlights (comparisons on a year-over-year basis except where noted):

Net sales of $1.9 billion decreased 7 percent due to a 6 percent decrease in selling prices and a 1 percent decrease in organic unit sales. Quarter over quarter, the price of Southern Yellow Pine (SYP) decreased 19 percent, which contributed to our decrease in selling prices.

New product sales of $134 million were 7.0 percent of total sales compared to 7.4 percent in the second quarter of 2023. Many products that were considered new products in 2023 were sunset and not included in 2024 totals.

Net earnings attributable to controlling interests of $126 million represents a 16 percent decrease from last year.

Adjusted EBITDA1 of $204 million represents a decrease of 13 percent while adjusted EBITDA margin1 declined 80 basis points to 10.7 percent.

________________________

1 Represents a non-GAAP measurement; see the reconciliation of non-GAAP financial measures and related explanations below.

Capital Allocation

UFP Industries maintains a strong balance sheet with $1.04 billion in cash on June 29, 2024, compared to $702 million in cash at the end of the second quarter of 2023. The company had approximately $2.3 billion of liquidity as of June 29, 2024. The company’s return-focused approach to capital allocation includes the following:

- Acquisitions and Organic Growth. The company continues to pursue strategic acquisitions and will invest in organic growth opportunities when acquisition targets are not available at valuations that will allow us to meet or exceed targeted return rates. The company is targeting capital investments in 2024 of up to $300 million for automation, technology upgrades, geographic expansion and increased capacity at existing facilities, specifically for its Deckorators, Site Built, metal packaging, and machine-built pallet businesses. Approximately $200 million of projects have been approved in 2024 and another $96 million in projects are pending approval. Longer lead times for equipment and site selection in the case of new locations may delay some investments until 2025.

- Dividend payments. On July 24, 2024, the UFP Industries Board of Directors approved a quarterly dividend payment of $0.33 per share, a 10 percent increase over the quarterly dividend of $0.30 per share paid in September 2023. The dividend is payable on September 16, 2024, to shareholders of record on September 2, 2024.

- Share repurchases. The company was authorized to purchase up to $200 million of outstanding stock through July 31, 2024. From July 26, 2023, through the end of the second quarter of 2024, the company repurchased approximately 1,477,000 shares at an average price of $110.96 (a total of $163.9 million). On July 24, 2024, the Board of Directors for UFP Industries authorized the company to repurchase up to $200 million of shares through July 31, 2025.

By business segment, the company reported the following second quarter 2024 results:

UFP Retail Solutions

Net sales of $809 million, down 14 percent compared to the second quarter of 2023, while gross profit increased 3 percent. Sales performance was attributable to a 7 percent decline in selling prices, a 5 percent decline in organic unit sales, and a 2 percent decline due to the transfer of certain product sales to the Packaging and Construction segments. Organic unit sales decreased 2 percent for Deckorators, 6 percent for ProWood and 4 percent for UFP-Edge. Overall, unit sales decreased 5 percent with big box customers, a decline that largely correlates with an easing in repair and remodel activity, and were flat with independent retailers. Gross profit for the retail segment increased 3 percent to $127 million, primarily due to operational improvements, SKU rationalization, and better inventory positioning and utilization of our managed inventory programs.

UFP Packaging

Net sales of $435 million were down 11 percent compared to the second quarter of 2023, due to an 8 percent decrease in selling prices and a 6 percent decline in organic unit sales, offset by a 3 percent increase from the transfer of certain product sales from the Retail segment. A 10 percent increase in organic unit sales for PalletOne, due to market share gains, partially offset an 11 percent decline in organic unit sales for Protective Packaging and a 12 percent decline in organic unit sales for Structural Packaging, attributable to weaker demand. Gross profit for the packaging segment decreased 29 percent to $84 million due to competitive price pressure and lower sales volumes.

UFP Construction

Net sales of $575 million increased 4 percent compared to the second quarter of 2023 as a 4 percent decrease in selling prices was offset by a 7 percent increase in organic unit sales and a 1 percent increase from the transfer of certain product sales from the Retail segment. Organic unit sales increased in Factory Built, up 19 percent due to an increase in industry production, and Site Built, up 4 percent, we believe due to market share gains in both existing and new product categories. Gross profit for the construction segment decreased 8 percent to $126 million due to competitive price pressure.

Short-Term Outlook

Lumber Market: We continue to anticipate lumber prices will remain at lower levels in 2024 based on current supply and demand dynamics.

End Market Demand: We continue to follow key indicators and forecasts in the markets we serve and have revised our outlook for the balance of 2024. We anticipate demand will decrease in Retail by mid-single digits, decrease in Packaging by mid- to high-single digits, and increase in Construction by low- to mid-single digits, reflecting continued strength in our Factory Built business. Generally, we expect the soft demand and competitive price environment will continue for the remainder of the year, resulting in more challenging year-over-year unit sales and profitability comparisons. We believe market share gains will help offset lower demand in each of our segments for the balance of the year.

CONFERENCE CALL

UFP Industries will conduct a conference call to discuss its outlook and information included in this news release at 9 a.m. ET on Tuesday, July 30, 2024. The call will be hosted by Chairman and CEO Matthew J. Missad and CFO Michael Cole and will be available simultaneously and in its entirety to all interested investors and news media through a webcast at https://www.ufpinvestor.com/news-filings-reports#events---presentations. A replay of the call will be available through the website.

UFP Industries, Inc.

UFP Industries, Inc. is a holding company whose operating subsidiaries – UFP Packaging, UFP Construction and UFP Retail Solutions – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates in North America, Europe, Asia and Australia. UFP Industries is ranked #493 on the Fortune 500 and #128 on Industry Week’s list of America’s Largest Manufacturers. For more about UFP Industries, go to www.ufpi.com.

<<<



---

[gfp927z]

>>> Why Watsco Stock Is Falling Today


by Lou Whiteman

Motley Fool

Jul 30, 2024


https://finance.yahoo.com/news/why-watsco-stock-falling-today-175712682.html


Watsco (NYSE: WSO) reported record sales, improving cash flow, and an improving balance sheet in its most recent quarter. But the results weren't quite what Wall Street had expected.

After the earnings release, shares of the industrial equipment distributor were trading down about 5% as of noon ET.

Growth, but short of expectations

Watsco is a distributor of parts and supplies for the heating, air conditioning, and refrigeration (HVAC) industry. The company earned $4.49 per share in the quarter on revenue of $2.14 billion, generating 7% year-over-year sales growth.

The company saw strong 8% growth in its HVAC equipment segment, which accounts for 71% of total sales. Operating cash flow also turned positive and improved by $100 million, with $58 million in reported cash flow in the quarter.

But Wall Street had expected $4.68 per share in earnings on sales of $2.2 billion, and gross margin in the quarter fell 100 basis points to 27.1%.

Is Watsco a buy?

Watsco has been an impressive performer over the years thanks to the company's ability to roll up small distributors and drive efficiency and scale gains. The stock was up more than 20% for the year heading into earnings and perhaps got ahead of itself.

On the post-earnings call, management said quarter-to-quarter margin fluctuations are to be expected as manufacturers adjust pricing and as inventories are replenished, but it sees business as usual up ahead. For long-term-focused investors, business as usual has generated market-beating returns, and there is nothing in this earnings report to suggest Watsco can't continue to deliver in the years to come.

<<<



---

[gfp927z]

Broadcom - >>> Forget Nvidia: Billionaire Ken Griffin Raised His Position in This Rival AI Stock by More Than 500%


by Adria Cimino

Motley Fool

Jul 31, 2024


https://finance.yahoo.com/news/forget-nvidia-billionaire-ken-griffin-094000273.html


Nvidia (NASDAQ: NVDA) shares have soared, resulting in a major boost for investors that got in on the shares early. And many billionaire investors have benefited -- including Ken Griffin, chief executive of Citadel. Griffin initially bought Nvidia back in 2013, and as recently as late last year his fund held more than three million shares of the artificial intelligence (AI) chip giant.

But Griffin wasn't a buyer of Nvidia in recent months. In fact, in the first quarter of this year, he reduced his position in Nvidia by 68% to about 1.1 million shares. And at the same time, he increased his holding of another AI stock by more than 500%. Does this mean that, like Griffin, you should forget Nvidia and bet on this AI player? Let's find out.

Citadel's track record

First, it's important to note investors have a pretty good reason for following Griffin's path. Since launching Citadel back in 1990, Griffin has built the fund to $63 billion in investment capital today. And Citadel has scored recognition as the most profitable hedge fund ever. So, when Griffin makes a particular bet on a stock, it's worth taking note -- and in some instances, you may decide to follow.

Now let's consider the billionaire's latest move. The hedge fund giant increased his position in Broadcom (NASDAQ: AVGO) by more than 500% to about 295,000 shares, a clear sign of confidence in this AI company. Griffin has probably already started to win from this move since the stock has advanced about 35% so far this year.

And the company completed a 10-for-1 stock split earlier this month, offering current holders additional shares to lower the per-share price of its stock. This doesn't change the value of Griffin's holding -- or yours if you're a Broadcom shareholder -- but it does offer shareholders a greater number of shares. A stock split is generally positive for a stock over time as it allows a wider range of investors to more easily buy it.

We don't know the exact reason why Griffin decided to increase his holding of Broadcom in the triple digits, but there's a lot of evidence showing Broadcom could be an AI winner down the road. In the most recent quarter, the semiconductor and networking giant said AI revenue surged 280% to more than $3.1 billion. Demand from mega-scale data centers for AI networking and custom accelerators is driving this growth, the company says.

Broadcom's new wave of growth

As these data centers, or hyperscalers, continue to expand, Broadcom is seeing more and more growth in its networking business. The company doubled the number of switches it sold in the quarter year over year and now is developing next-generation switches and optics that should drive a new wave of growth.

Broadcom is optimistic about this growth continuing, and considering forecasts for the AI market, there's reason for investors to be confident about the company's future too. Today's $200 billion AI market is set to reach more than $1 trillion later this decade. It's important to remember that right now more than 99% of Internet traffic travels through a Broadcom technology -- so the company, as a leader, is well positioned to benefit from the AI boom.

On top of this, Broadcom also is seeing growth from its acquisition of cloud software company VMware. In fact, it predicts VMWare will help drive a 42% increase in annual revenue this year to about $51 billion.

Nvidia vs Broadcom

So, is it time to forget Nvidia and turn to Broadcom? It's important to note that the companies could be considered rivals or peers because they are both chipmakers. But, while Nvidia is more focused on serving data centers with chips and other related products and services, Broadcom's business covers a lot more territory. The company makes thousands of products used not only in data centers but also in home connectivity, smartphones, and telecommunications in general. So, while Broadcom is growing thanks to AI, it doesn't depend on this market as much as Nvidia does -- this could make Broadcom a safer bet over time.

Still, it's also key to remember Citadel's Griffin hasn't exited his Nvidia position. He holds a considerable number of shares. So, the billionaire clearly hasn't lost faith in Nvidia and continues to believe the stock could generate solid returns.

All of this means there are reasons to be optimistic about both of these AI stocks. That said, one thing right now supports the idea of forgetting Nvidia and following Griffin into Broadcom, and that's valuation. Broadcom trades for 31x forward earnings estimates compared to 41x for Nvidia.

This is a very reasonable price considering the company's track record of growth and potential for gains from AI and the VMware acquisition. And that's why, right now you may want to forget Nvidia, and follow billionaire investor Griffin into Broadcom.

<<<



---

[gfp927z]

>>> Where Will Supermicro Stock Be in 5 Years?


by Will Healy

Motley Fool

Jul 31, 2024


https://finance.yahoo.com/news/where-supermicro-stock-5-years-091500517.html


Looking back on Super Micro Computer (NASDAQ: SMCI) five years ago, few likely envisioned it would reach the heights it has today. It has existed since 1993 and has traded as a stock since 2007. Despite building a large, successful business, the company was largely unknown outside its industry and drew little interest from stock investors.

Supermicro's fortunes changed dramatically when its partnership with Nvidia brought about exponentially higher sales of AI-capable servers. This helped lead to the AI stock rising by over 3,500% over the last five years. Admittedly, another 3,500% increase in the next five years is unlikely, but the stock can probably generate market-beating returns during that time. Here's why.

The state of Supermicro

The most surprising things about Supermicro are its longtime obscurity and meteoric rise to prominence. The company describes itself as a "rack-scale total IT solutions provider" that creates environmentally friendly and energy-saving machinery.

It produces first-to-market hardware for the edge, 5G, data centers, the cloud, and AI in approximately 6 million square feet of manufacturing space. Moreover, it operates in more than 100 countries, meaning it built an extensive footprint despite receiving little attention from investors until recently.

The company's growth has now become too significant for investors to ignore. In the first nine months of fiscal 2024 (ended March 31), it reported $9.6 billion in revenue, a 95% yearly increase. With that, net income surged to $855 million compared with $446 million in the same year-ago period.

Where Supermicro is going

Additionally, its rapid growth is on track to continue. Markets.us estimates the compound annual growth rate (CAGR) for the AI server industry will exceed 30% through 2033.

Fortunately for Supermicro's shareholders, company estimates far exceed that rapidly growing industry CAGR. In the most recent earnings report, the company raised its fiscal 2024 revenue guidance to $14.7 billion, which would mean a 107% growth rate if revenue levels match the company estimate.

As for the stock, it has risen by almost 130% over the last year. Still, nearly all of that growth occurred in the first three months of the calendar year, and the stock has pulled back by more than 40% since peaking in March.

However, that price correction could dramatically increase Supermicro's odds of outperforming the indexes. Its P/E ratio had reached 90 as its stock peaked. Now, with rising profits and falling stock prices, the earnings multiple has dropped to 39. Its PEG ratio of just 0.6 confirms that its P/E ratio is at a very low level, considering the rapid growth of its profits.

Furthermore, analysts forecast that Supermicro's net income will grow by an average of 62% per year for the next five years. Admittedly, this is a "way too early" estimate and will likely change significantly as more information becomes known. Still, if profits grow at an average close to this estimate, it is likely the rapid growth of Supermicro stock will continue.

Supermicro in five years

Although a lot can happen in five years, Supermicro stands a high likelihood of beating the market over that time. As stated before, investors should not expect another 3,500% gain over five years, nor should they expect the company to maintain revenue growth near the triple-digits over the long run.

Nonetheless, the AI servers produced by Supermicro are experiencing unprecedented demand, leading to massive gains in the stock price. Moreover, even if estimates for the future change significantly, both Supermicro and its industry should experience rapid growth rates for years to come.

Additionally, considering the growth rates of the recent past, the 39 P/E ratio and the PEG ratio under 1 arguably make Supermicro a bargain stock. Given its recent pullback, now might be a good time to add shares.

<<<



---

[gfp927z]

>>> Casey's General Stores to Buy Fikes Wholesale for About $1.15B


MarketWatch

July 26, 2024

By Denny Jacob


https://www.marketwatch.com/story/casey-s-general-stores-to-buy-fikes-wholesale-for-about-1-15b-update-852c69af


Casey's General Stores agreed to acquire Cefco Convenience Stores owner Fikes Wholesale in an all-cash deal worth about $1.15 billion.

The convenience-store chain's acquisition would include 198 retail stores and a dealer network throughout Texas, Alabama, Florida and Mississippi, which will increase Casey's footprint to nearly 2,900 stores. The transaction also includes a fuel terminal and a commissary to support stores in Texas.

Casey's Chief Executive Darren Rebelez said the acquisition expands its presence in the Lone Star State by bringing 148 additional stores to the area.

Expanding into Texas, Alabama, Florida and Mississippi extends its reach further from neighboring states such as Oklahoma and Tennessee. Casey's footprint is primarily concentrated in the Midwest, according to an investor-day presentation.

Casey's acquisition fits into a strategy laid out at its investor day in June 2023. The company guided for more than 350 additional stores to be built or acquired by fiscal 2026, putting it more than three-quarters of the way to its minimum goal.

The Fikes acquisition speaks to consolidation in the convenience-store industry that is facing declining tobacco sales, rising cost pressure and labor shortages.

Casey's said it expects to achieve about $45 million in annual run-rate synergies after kitchen installations in the acquired stores are completed.

The deal, financed through balance-sheet cash and bank financing, is expected to close in the fourth quarter.

Fikes and Cefco began as a single "filling station" in Cameron, Texas, in 1952 and grew to operate stores in multiple states.

<<<



---

[gfp927z]

>>> McDonald's same-store sales fall for 1st time since 2020 as tapped-out customers hold on to cash


by DEE-ANN DURBIN

AP

7-29-24


https://www.msn.com/en-us/money/companies/mcdonald-s-same-store-sales-fall-for-the-1st-time-since-the-pandemic-profit-slides-12/ar-BB1qOwqW?cvid=cabd17fe3ab14ebdc9d26ba87cedda68&ei=25


They're not lovin' it.

McDonald's global same-stores fell for the first time in nearly four years in the second quarter as inflation-weary consumers skipped meals out or chose cheaper options. The company said it's working on fixes, like meal deals and new menu items, but it expects same-store sales to be down for the next few quarters.

“Consumers still recognize us as the value leader versus our key competitors, it’s clear that our value leadership gap has recently shrunk,” McDonald's Chairman, President and CEO Chris Kempczinski said Monday during a conference call with investors. “We are working to fix that with pace.”

Sales at locations open at least a year fell 1% in the April-June period, the first decline since the final quarter of 2020 when the pandemic shuttered stores and millions stayed home.

In the U.S., same-store sales fell nearly 1%. McDonald’s saw fewer customers but it said those who came spent more because of price increases. Kempczinski defended those increases, saying McDonald's costs for paper, food and labor have increased as much as 40% in some markets over the last few years.

The company also reported lower store traffic in France and the Middle East, where people have been boycotting McDonald’s because of a perception that it supports Israel in the war in Gaza. Kempczinski said weak consumer sentiment in China has customers fleeing to lower-priced rivals.

McDonald’s earnings, revenue miss estimates as consumer pullback worsens

McDonald's warned in April that more of its inflation-weary customers were seeking better value and affordability. The Chicago burger giant introduced a $5 meal deal at U.S. restaurants on June 25, which was late in this financial reporting period.

McDonald's U.S. President Joe Erlinger said Monday that $5 meal deal sales are running ahead of expectations and are getting lower-income consumers back into McDonald's stores. Erlinger said 93% of McDonald's franchisees have agreed to run the promotion through August.

Other countries like Germany and the United Kingdom are also seeing success with meal deals, the company said. But Kempczinski said McDonald's needs to be providing broader value and boosting that message with better marketing.

“Trying to move the consumer with one item or a few items is not sufficient for the context that we’re in,” he said.

New menu items are also in the works. The company is testing its value-oriented Big Arch double burger in three international markets through the end of this year, Kempczinski said.

For the second quarter, revenue was flat at $6.5 billion and just off the $6.6 billion that Wall Street was expecting, according to analysts polled by FactSet.

The company's net income fell 12% to $2 billion, or $2.80 per share. Excluding one-time items such as restructuring charges, McDonald's earned $2.97 per share. That was far from the per-share profit of $3.07 that industry analysts had forecast.

Investors appeared satisfied with McDonald's plans to reverse its slide. McDonald's shares rose 3.5% in morning trading Monday.

<<<



---

[gfp927z]

>>> Trane Launches Climate Changer Magicube Air Handling Unit in Asia Pacific


PR Newswire

Jul 10, 2024


https://finance.yahoo.com/news/trane-launches-climate-changer-magicube-020000673.html


Modular Design Leads to New Experience of Convenient Installation

SHANGHAI, July 11, 2024 /PRNewswire/ -- Trane®, a strategic brand of Trane Technologies (NYSE: TT), a global climate innovator, announced the launch of the revolutionary Climate Changer Magicube (CLCM) air handling unit to address the challenges associated with the installation and maintenance of air conditioning equipment in modern buildings. Featuring with an innovative modular design, the CLCM unit simplifies installation and maintenance processes significantly, which also effectively reduces the cost associated with constructing, operating and maintaining the building's air-conditioning system, and creates a clean and comfortable environment with high-quality air for users.

During the installation of air handling unit in mixed-development and office buildings, it is often to encounter the issue of needing to dis-assemble and re-assemble the unit due to limited space. However, traditional air handling units are often complex to dis-assemble and re-assemble, making the process time-consuming and labor-intensive. Additionally, this can potentially damage the unit and lead to problems like air and heat leakages.

"With its compact individual modules, the innovative CLCM unit is easy to move and assemble on-site, making it especially suitable for mixed-development and office buildings with limited installation space that require multiple reassemblies," said Bruce Gu, Vice President of Engineering and Technology at Trane Technologies Asia Pacific. "Building on Trane's century-long history of climate control technology, we expect this new product to continuously provide our customers with more flexible and efficient air conditioning solutions."

Customize air conditioning solutions with flexible Magicube combinations

This new product features a unique modular connecting design that allows for flexible combinations: side-by-side combination to increase air volume; front-to-back combination to expand functionality. This innovative design enables customers to tailor the system according to their specific demand, providing better customization experience. Another significant highlight is its standardized design. All models are equipped with the fans, filters and other common components of standard sizes. Combined with the universal coil for left-hand and right-hand configurations and a pull-out coil design, the coil connection side can be flexibly adjusted on-site, making installation and maintenance more convenient. This not only expands the application range of the product, but also frees the customers from a large stock of spare parts. In addition, this product series is also smaller in size compared to traditional air conditioning units, which can further save costs for the customers.

For the appearance design, CLCM unit features a new casing made of high-strength frames. This robust casing not only prevents damage during transportation and re-assembly, which may lead to issues like air leakage and heat transfer, but also ensures the efficient performance with a low thermal transmittance. Additionally, the unit is equipped with a step-shape panel design that further reduces the air leakage rate and the risk of cold bridge condensation with multiple sealing measures, thereby improving the overall performance, quality and reliability of the product. Moreover, the interior of the new casing structure is smoother and cleaner, making it less prone to dust accumulation and easier to maintain.

In terms of energy conservation and environmental protection, Trane has set a higher benchmark with a forward-looking vision. The CLCM unit series is equipped with EC fans that offer superior economic value. Under full-load operation, these fans can save energy by 15%-30% compared with ordinary fans using AC motors, achieving the market-leading Grade1 of Grade 2 energy efficiency level.

In addition, the CLCM unit innovatively introduces a QR code solution for on-site assembly. Upon arrival at the installation site, the customer's personnel can simply scan the QR code on the product to access 3D installation instructions that provides a clear display of sorting information and installation sequence, enabling easy assembly of the equipment even without professional guidance. This significantly improves the efficiency and quality of the installation process.

Ensure healthy air with dual-mode sterilization

Given the significant rise in concern for health and environmental protection in recent years, the CLCM series is specially designed with a dual-mode system. This system includes a built-in high-voltage electrostatic sterilization device and a plug-in photocatalyst sterilization device, ensuring users enjoy better air quality.

In the high-voltage electrostatic sterilization mode, tiny particle pollutants smaller than 0.01 micron will be adsorbed on the dust collection plate by the energy instantly released from the high-voltage charge. This mode can achieve a PM2.5 purification rate of 99% and a sterilization rate of 99.6% within one hour, and it can eliminate 99% of influenza virus within two hours, effectively improving indoor air quality.

Additionally, in the plug-in photocatalytic sterilization mode, the CLCM unit can degrade organic pollutants such as formaldehyde, benzene and ammonia. It can achieve a disinfection rate of up to 99.99%, a sterilization rate of up to 99.68%, and a TVOC purification rate of 78.9% within two hours. Furthermore, negative oxygen ions are released during the sterilization process to further purify the air.

About Trane Technologies

Trane Technologies is a global climate innovator. Through our strategic brands Trane® and Thermo King®, and our portfolio of environmentally responsible products and services, we bring efficient and sustainable climate solutions to buildings, homes and transportation. For more on Trane Technologies, visit tranetechnologies.com.

About Trane

Trane – by Trane Technologies (NYSE: TT), a global climate innovator – creates comfortable, energy efficient indoor environments for commercial and residential applications. For more information, please visit www.trane.com or www.tranetechnologies.com.

<<<



---

[gfp927z]

>>> UFP Technologies Acquires Welch Fluorocarbon


UFP Technologies, Inc.

Jul 16, 2024


https://finance.yahoo.com/news/ufp-technologies-acquires-welch-fluorocarbon-200000577.html


NEWBURYPORT, Mass., July 16, 2024 (GLOBE NEWSWIRE) -- UFP Technologies, Inc. (Nasdaq: UFPT), a designer and custom manufacturer of comprehensive solutions for medical devices, sterile packaging, and other highly engineered custom products, today announced the acquisition of Welch Fluorocarbon Inc. Founded in 1985 and headquartered in Dover, New Hampshire, Welch Fluorocarbon develops and manufactures thermoformed, and heat sealed implantable medical device components utilizing thin, high-performance films.

“Welch Fluorocarbon will bring significant thin film thermoforming capabilities to our expanding MedTech portfolio of technologies and materials,” said R. Jeffrey Bailly, chairman and CEO of UFP Technologies. “Their expertise in developing and manufacturing components for implantable medical devices is an excellent complement to our existing thin film platform.”

“UFP and Welch Fluorocarbon share many clients and together, our expanded product development and manufacturing capabilities will allow us to serve our clients in a more comprehensive way,” continued Bailly. “Additionally, we are gaining a talented leadership team and overall, the Welch Fluorocarbon team is a very strong cultural fit.”

“We are thrilled to have selected UFP as our new home. Having a partner that understands how to support our rapidly expanding business in our niche is critical. UFP has demonstrated that they understand our needs and have the capabilities, experience, and resources to help propel Welch to its fullest potential,” said Kevin Wiley, Owner and CEO.

About UFP Technologies, Inc.

UFP Technologies is a designer and custom manufacturer of comprehensive solutions for medical devices, sterile packaging, and other highly engineered custom products. UFP is an important link in the medical device supply chain and a valued outsource partner to most of the top medical device manufacturers in the world. The Company’s single-use and single-patient devices and components are used in a wide range of medical devices and packaging for minimally invasive surgery, infection prevention, wound care, wearables, orthopedic soft goods, and orthopedic implants.

<<<



---

[gfp927z]

>>>Vertiv Holdings (VRT) -- Of course, all AI stocks need essential infrastructure to keep the lights on and GPUs running, and Vertiv Holdings (NYSE:VRT) is a standout in this segment. Vertiv owns and operates a range of key AI infrastructure, including power continuity, heat management and monitoring software services.

https://finance.yahoo.com/news/7-ai-stocks-overlooked-sectors-104200970.html

As with many AI stocks, Vertiv’s strength continues unabated. In the most recent report, order rates climbed 60% year over year, and net sales jumped 8%. Unlike many AI stocks, though, Vertiv is effectively agnostic to which hardware or software AI stocks come out on top. They’re selling picks and shovels to artificial intelligence gold miners and win no matter which companies ultimately dominate the industry.

Analysts widely see Vertiv as a top AI stock, with Oppenheimer saying shares are worth $100, more than 10% upside, and nearly every research firm or analyst covering the company affirming a buy rating. Shares may seem overvalued if you look at price-to-earnings ratio alone, it current sits at 44x. But, considering its growth trajectory and tailwinds, buying sooner rather than later may be the best move.

<<<



---

[gfp927z]

>>> Parsons (NYSE:PSN) might not have the name recognition of sister companies like Palantir. Still, it’s a powerhouse in the defense tech sector with a unique focus on AI-driven hardware solutions. Unlike firms concentrating on software, Parsons excels in applying AI to physical systems, making significant strides in several critical areas.

https://finance.yahoo.com/news/7-ai-stocks-overlooked-sectors-104200970.html

Parsons’ portfolio includes developing ballistic missile sites, advanced rocketry, nuclear facility management and vital infrastructure projects. These activities require sophisticated data management and AI oversight, positioning Parsons as a leader in hardware-centric AI applications.

Beyond defense, Parsons is innovating with AI-driven drone technology for infrastructure inspection. These tools revolutionize evaluating and maintaining critical infrastructure such as bridges, roadways and water treatment plants. This strategic expansion positions Parsons as a vital player in applying AI to complex and hazardous environments, ensuring comprehensive safety assessments and ongoing infrastructure integrity. Better yet, expect infrastructure to be a major political talking point as we near the elections, creating unique tailwinds for Parsons that few other AI stocks can adequately capture.

<<<



---

[gfp927z]

>>> Why Super Micro Computer Stock Is Plummeting This Week


by Keith Noonan

Motley Fool

Jul 26, 2024


https://finance.yahoo.com/news/why-super-micro-computer-stock-104500369.html


Super Micro Computer (NASDAQ: SMCI) stock is sinking in this week's trading. The high-performance server specialist's share price was down 12.7% from last week's close heading into this Friday's market opening, according to data from S&P Global Market Intelligence.

Tech stocks continued to pull back this week as investors assessed risks related to geopolitical dynamics between the U.S., China, and Taiwan. Sell-offs intensified after Alphabet and Tesla published second-quarter reports that worried Wall Street.

While there wasn't any business-specific news dragging Supermicro lower, the company's valuation is getting hit in a pullback that's impacting the broader market and having a particularly pronounced impact on otherwise high-flying artificial intelligence (AI) stocks. The timing of the server specialist's addition to the Nasdaq-100 index also didn't help the stock this week.

Bearish ripple effects from earnings season hit Supermicro

In addition to geopolitical risk factors continuing to pressure growth stocks, earnings season has gotten off to a shaky start for the technology sector. Alphabet and Tesla reported Q2 earnings after the market closed on Tuesday, becoming the first of the highly influential "Magnificent Seven" companies to publish updated financial results. Unfortunately, Wall Street considered both reports to be duds -- and the disappointment created ripple effects that extended to Supermicro and other AI stocks.

Alphabet posted per-share earnings of $1.89 on revenue of $84.74 billion, which actually came in better than the average Wall Street target's call for per-share earnings of $$1.85 on sales of $84.29 billion. But the company guided for higher costs and weaker operating income margins in Q3, and investors adopted a more bearish stance in response.

Tesla's quarterly report was significantly more concerning. While Q2 revenue of $25.5 billion topped the average analyst estimate by $760 million, non-GAAP (adjusted) per-share earnings of $0.52 fell short of the market's target by $0.10 per share. Comments from management about the business's near-term outlook and spending plans also worried investors.

Joining the Nasdaq-100 index didn't boost Supermicro stock this week

Super Micro Computer was added to the Nasdaq-100 on July 22, and the timing of the addition may also be playing a role in this week's sell-offs. While being added to major indexes is often a bullish catalyst because it causes exchange-traded funds (ETFs) to buy the stock, it's actually a negative catalyst when the underlying index level and corresponding ETF prices are dropping. For reference, the Nasdaq-100 index has fallen roughly 4.5% over the last week of trading.

Investors who are eager for the next major, business-specific updates that could Supermicro's stock price won't have to wait long. The company is scheduled to report quarterly results after the market closes on Aug. 6.

<<<



---

[gfp927z]

>>> Here's Why Danaher Stock Surged Today


by Lee Samaha

Motley Fool

Jul 23, 2024


https://finance.yahoo.com/news/heres-why-danaher-stock-surged-155045315.html


Danaher's (NYSE: DHR) core revenue decline of 3.5% in the second quarter might not seem like anything to write home about. Still, as ever in investing, it's about context, and the company's earnings report shows that it's set to return to its long-term growth track.

The good news encouraged investors to bid the stock up by more than 7% in trading before 10 a.m. ET today.

Danaher beats guidance

As you might expect from a biotechnology, life sciences, and diagnostics company, Danaher's core revenue and earnings have bounced around in recent years due to the pandemic. Not only did Danaher manufacture PCR tests used to detect COVID-19, but it also sold life sciences equipment used to research vaccines.

The retraction from the massive boost in demand caused by the pandemic creates near-term challenges for Danaher. Therefore, management still expects this to be a year of low single-digit core revenue declines, but the evidence from the second-quarter earnings suggests that investors might have to revise their expectations at some point.

Going into the second-quarter earnings, management's guidance called for a year-over-year core revenue decline in the mid-single-digit range (implying 4%-6%) with an adjusted operating profit margin of 26%. However, the second-quarter core revenue declined by just 3.5%, and the adjusted operating profit margin came in at 27.3%.

Better-than-expected revenue and margin performance led to earnings per share of $1.72 in the quarter, compared to the analyst consensus of $1.57.

Where next for Danaher stock?

Management continues to expect a core revenue decline in the low single digits for the third quarter and the full year, but it's hard not to think it's being conservative.

CEO Rainer Blair cited positive momentum in its bioprocessing business and market share gains in its molecular diagnostic testing business, Cepheid. If Danaher can sustain those improvements, the company can return to the high-single-digit growth rates Wall Street analysts expect in 2025 and 2026.

<<<



---

[gfp927z]

>>> Why Waste Management Stock Is in the Dumps Today


by Lou Whiteman

Motley Fool

Jul 25, 2024


https://finance.yahoo.com/news/why-waste-management-stock-dumps-152500560.html


Waste Management (NYSE: WM) reported second-quarter results that fell short of Wall Street expectations. Investors are moving on, sending shares of WM down 6% as of 10:45 a.m. ET.

Pricing drives revenue increase

Waste Management, which is rebranding itself as WM, is the nation's largest provider of collection, recycling, and disposal services for residential, industrial, and municipal customers. The company earned $1.69 per share in the second quarter on sales of $5.4 billion, falling short of Wall Street's estimates for $1.83 per share on sales of $5.43 billion.

Revenue was up 5.5%, fueled by a 6.8% increase in core pricing and an uptick in the value of the company's recycled commodities available for sale. Collection and disposal volumes declined by 0.3%.

Post-earnings, WM raised its full-year guidance for adjusted operating earnings before interest, taxes, depreciation, and amortization (EBITDA) and free cash flow by $100 million. WM continues to consolidate the industry, in the quarter closing deals in Long Island, Florida, North Carolina, and Arizona. It also has a deal in place to acquire medical waste specialist Stericycle for $7.2 billion.

Is WM stock a buy?

The bottom-line numbers disappointed investors, but the quarter was largely business as usual for WM and a reminder of the consistency this business provides. So far in 2024, net cash from operating activities has increased by 21.6% to $2.52 billion and WM is putting that cash to work on expansion.

The issue is that WM is in a cyclical industry: Waste volumes tend to move with economic activity. With that in mind, the downtick in collection and disposal is a worrisome sign. Should that trend continue in the quarters to come it will be hard for WM to rely on pricing power to continue to fuel revenue growth. The added uncertainty that comes with the Stericycle deal is likely also pushing investors to the sidelines.

For long-term investors there is a lot to like about WM, but the near term is full of uncertainty. Those willing to stomach volatility could see this as a buying opportunity.

<<<



---

[gfp927z]

>>> The Progressive Corporation (NYSE:PGR) -- Number of Hedge Fund Holders: 85

https://www.insidermonkey.com/blog/10-best-financial-stocks-to-buy-according-to-hedge-funds-1317041/5/

The Progressive Corporation (NYSE:PGR), a leading insurance provider, reported its financial results for May 2024, showing consistent growth in premiums and policies in force, along with a slight increase in its combined ratio compared to the previous year. For the month ending May 31, 2024, The Progressive Corporation (NYSE:PGR) reported net premiums written of $5.975 billion and net premiums earned of $5.857 billion. The company’s net income was $235.7 million, or $0.40 per share available to common shareholders. Additionally, The Progressive Corporation (NYSE:PGR) recorded a total pretax net realized gain on securities of $117.6 million. The insurer’s combined ratio, a crucial performance metric in the insurance industry, was 100.4 for the current year, slightly up from 99.0 in the same month last year. BMO Capital Markets reiterated its “Outperform” rating for The Progressive Corporation (NYSE:PGR), maintaining a $235.00 price target. The firm highlighted an unexpected acceleration in Progressive’s Personal Auto organic policy count growth in May, which typically slows down as summer approaches.

In the first quarter of 2024, the number of hedge funds with stakes in The Progressive Corporation (NYSE:PGR) increased to 85 from 79 in the previous quarter, according to Insider Monkey’s database of 920 hedge funds. The combined value of these stakes is approximately $4.99 billion. Andreas Halvorsen’s Viking Global emerged as the largest stakeholder among these hedge funds during this period.

Artisan Select Equity Fund stated the following regarding The Progressive Corporation (NYSE:PGR) in its first quarter 2024 investor letter:

“The Progressive Corporation (NYSE:PGR) shares rose 30% during the quarter. After a difficult start to 2023, the company quickly adapted and finished the year with impressive growth in premiums and underwriting profits. In Q4 2023, it managed to grow its customer base even as it raised rates and improved its underwriting ratios—a trifecta that isn’t often seen in the insurance industry. This performance has continued, which should set the stage for another year of good results in 2024. Perhaps most importantly, it has been able to navigate the environment far better than its peers, many of whom are still reporting sub-par underwriting performance. Progressive has consistently gained market share in the personal auto market over our ownership period and now commands close to 15% of the total market. Its shares are no longer a bargain, but we continue to hold them due to the high quality of this business and the advantaged nature of its low-cost insurance franchise.”

<<<



---

[gfp927z]

>>> S&P Global Inc. (NYSE:SPGI) ranks second on our list of 10 Best Financial Stocks To Buy According to Hedge Funds. During Q1, 2024 the count of hedge funds holding positions in S&P Global Inc. (NYSE:SPGI) rose to 97 from 82 in the prior quarter, as reported by Insider Monkey’s database encompassing 920 hedge funds. These holdings collectively amount to around $9.57 billion. Chris Hohn's TCI Fund Management emerged as the leading shareholder among these hedge funds during this timeframe. On April 18, Stifel analyst Shlomo Rosenbaum reiterated a "Buy" rating for S&P Global Inc. (NYSE:SPGI) but lowered the price target from $460 to $442.

https://finance.yahoo.com/news/why-street-analysts-bullish-p-233834793.html

The London Stock Exchange Group and S&P Global Inc. (NYSE:SPGI) are reportedly among the contenders interested in acquiring data provider Preqin, reported Reuters. The owners of Preqin, which specializes in private equity industry data, are exploring options that include a potential full sale of the business. Goldman Sachs is advising on the sale process, which is currently in its second round. Analysts involved estimate that the sale could fetch over $2 billion, although specifics remain confidential.

Baron Durable Advantage Fund stated the following regarding S&P Global Inc. (NYSE:SPGI) in its first quarter 2024 investor letter:

“Shares of rating agency and data provider S&P Global Inc. (NYSE:SPGI) declined 3.1% during the quarter after the company provided financial guidance that missed Street expectations. While S&P guided to solid organic revenue growth of 7% to 9% and EPS growth of 9% to 11%, projected margin expansion fell short of investor estimates, which underestimated the correlation between improving top-line trends and variable employee comp (which is rising as a result). We are not concerned with this short-term dynamic that is the outcome of improving business fundamentals. S&P reported solid results for the most recent quarter, with 11% organic revenue growth, 23% EPS growth, and broad-based strength across the company’s business segments. Ratings growth was especially robust as debt issuance rebounded amid improving market conditions. Positive momentum has continued into 2024, with 66% issuance growth in January and February. We continue to own the stock due to the company’s durable growth characteristics and significant competitive advantages.”

Overall SPGI ranks 2nd on our list of the best financial stocks to buy. You can visit 10 Best Financial Stocks To Buy According to Hedge Funds to see the other financial stocks that are on hedge funds’ radar. While we acknowledge the potential of SPGI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SPGI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

<<<



---

[gfp927z]

>>> Republic Services (NYSE:RSG) provides waste disposal and recycling services, offering a unique investment opportunity in the environmental services sector. As the world continues to grapple with the challenges of waste management, Republic Services is well-positioned to meet the growing demands.

https://finance.yahoo.com/news/3-best-dividend-stocks-buy-114500212.html

Republic Services is a great company for investors seeking investment opportunities in a stable industry. The company’s extensive network of landfills, recycling centers, and transfer stations positions it as a leader in the industry. Its strategy of acquiring smaller waste management companies has significantly bolstered its market position and expanded its service offerings. Furthermore, its financial performance has been extremely impressive over the last few years. Its strong cash flow generation, stable business model, and growing demand for its services underpin its ability to sustain and grow its dividend.

This has allowed the company to increase its dividend for 21 consecutive years. Additionally, Republic Services boasts a dividend yield of around 1.11%. With a strong outlook for the 2024 fiscal year, discerning investors have a unique opportunity to capitalize on its long-term upside potential.

<<<



---

[gfp927z]

>>> Eaton Corporation (NYSE:ETN) is a multinational power management company headquartered in Dublin, Ireland. With a diversified portfolio spanning electrical, hydraulic, vehicle transmissions, and industrial control systems, Eaton is able to cater to a wide range of industries.

https://finance.yahoo.com/news/3-best-dividend-stocks-buy-114500212.html

Eaton’s relatively low payout ratio and growing cash flow display positive signs for future dividend raises. The company has raised its dividend for 15 consecutive years and has maintained a payout ratio of around 40-50%. This is a testament to its diversified business model, providing stable revenue and cash flow from operations. Furthermore, its business has never looked stronger after emerging from its pandemic slump in 2020. Management’s strong execution has translated to significant revenue and earnings per share growth over the last 3 years.

Additionally, its growth is accelerating in the 2024 fiscal year. In Q1 FY24, revenue increased 8% year over year to $5.94 billion. It saw record segment margins of 23.1%, up 340 basis points from the year prior. For investors seeking the best dividend stocks to buy in 2024, ETN stock should certainly be kept on your radar.

<<<



---

[gfp927z]

>>> Rollins (NYSE: ROL) is a leading pest-control company that provides protection against termites, rodents, and other insects to more than 2.8 million customers around the globe. The company reported steadily increasing revenue from 2021 to 2023, going from $2.4 billion to $3.1 billion. Net income increased from $365.6 million to $435 million over the same period.

https://finance.yahoo.com/news/3-growth-stocks-buy-hold-104500181.html

The company also dished out higher dividends, paying out $0.54 per share in 2023, compared with $0.42 back in 2021. During this three year period, the business also generated positive free cash flow averaging $435 million a year. These financial numbers point to a solid business with consistent growth in both revenue and profit.

The business continued its positive momentum in 2024's first quarter with revenue climbing 14% year over year to $748.3 million and net income improving by 7% year over year to $94.4 million. Rollins continued its track record of free-cash-flow generation, but investors should note that the company has spent a fair bit of money on acquisitions to expand.

Back in December 2021, the company expanded into Southeast and Southwest Florida through the acquisition of seven branches from Hulett Environmental Services and then rebranding them as Northwest Extermination. In April 2022, Rollins's subsidiary Orkin acquired NBC Environment, a pest-control company centered around bird control with more than 100 staffers. A year later, it purchased Fox Pest Control, which provided Rollins with good growth opportunities and was immediately accretive to earnings and cash flow.

Management has stated that the company operates in a large and highly fragmented industry, giving it ample opportunities to continue growing both organically and through acquisitions.

<<<



---

[gfp927z]

>>> Cintas (NASDAQ: CTAS) provides products and services to help a wide range of businesses keep their premises clean, such as uniforms, mops, fire extinguishers, and safety training. Like Accenture, the company's revenue and net income has increased steadily during the past three fiscal years.

https://finance.yahoo.com/news/3-growth-stocks-buy-hold-104500181.html

Total revenue increased from $7.1 billion in fiscal 2021 to $8.8 billion in fiscal 2023 (ended May 31). Net income rose at a slower pace but still posted consecutive year-over-year increases, going from $1.1 billion in fiscal 2021 to $1.3 billion by fiscal 2023. Free-cash-flow generation averaged $1.26 billion over the three fiscal years and demonstrates the impressive cash generation of Cintas's business.

For the first nine months of fiscal 2024 ended Feb. 29, Cintas saw revenue continue to climb, increasing by 9.1% year over year to $7.1 billion. Net income rose by 16% year over year to $1.16 billion. Free cash flow did even better over the same period, jumping 31% year over year from $820 million to $1.08 billion.

Cintas's latest quarterly dividend came in at $1.35 per share, a 17% year-over-year increase from the prior year's $1.15. The company boasts an enviable track record of raising its dividends consistently since it went public 41 years ago.

The company's vision is to expand its market by acquiring new customers and increasing its market share as only 1 million businesses out of a potential 16 million are its clients. With market penetration rates of less than 20%, management believes there's room for further growth. If the company is successful, investors should see its top and bottom lines continue to grow.

<<<



---

[gfp927z]

>>> Monolithic Power (NASDAQ: MPWR) isn't as well known as some other semiconductor companies, nor is it as big, with a recent market value near $41 billion. But it's been growing like gangbusters, taking market share from rivals with its data-center chips.

Its valuation seems steep, with a recent forward-looking price-to-earnings (P/E) ratio of 63, well above its five-year average of 43. So perhaps wait and hope for a pullback, buy in installments over time, or just jump in if you expect its amazing run to continue.

<<<

https://finance.yahoo.com/news/7-semiconductor-stocks-could-millionaire-093800468.html



---

[gfp927z]

>>> Broadcom (NASDAQ: AVGO) has lots of fans because it specializes not only in chips but also software — and its operations are very diversified, too, including wireless and wired technology, optical products, mainframe software, cybersecurity, and storage, among many others. Its customers include Apple, Microsoft, AT&T, Intel, and many other big names. Broadcom is executing a 10-for-1 stock split on July 12.

https://finance.yahoo.com/news/7-semiconductor-stocks-could-millionaire-093800468.html

<<<



---

[gfp927z]

>>> Nvidia (NASDAQ: NVDA) has grown at a torrential rate in recent years, with many expecting it to keep doing so. (Others see it as needing to take a breather.) The company made a name for itself with gaming chips, but now it's not only a leader in graphics processing units (GPUs) for games but also in chips for data centers. And data centers are booming, as much of our AI activity runs through them.

The stock's valuation is steep, but if it keeps growing like crazy, it can be warranted. Proceed with caution if you're risk-averse.

<<<

https://finance.yahoo.com/news/7-semiconductor-stocks-could-millionaire-093800468.html


---

[gfp927z]

>>> Sterling Infrastructure (NASDAQ:STRL) is a leading infrastructure services company that specializes in heavy civil construction, transportation, and e-infrastructure solutions. With the rise of infrastructure investment, Sterling stands as one of the top undervalued growth stocks with substantial upside potential.

https://finance.yahoo.com/news/3-undervalued-stocks-track-double-152307233.html

One of the key factors driving Sterling Infrastructure’s growth is the significant investment in infrastructure by the U.S. government and private sector. The recently passed infrastructure bill, which allocates billions of dollars for transportation, broadband, water, and energy projects, provides a strong tailwind for the company. Sterling’s expertise in executing complex projects positions it well to benefit from this increase in spending.

Furthermore, the company has a diverse project portfolio and a steadily growing backlog. In the first quarter of 2024, net earnings increased 58% YOY to $31 million. Additionally, its backlog hit a record high of $2.42 billion, with gross margins up 220 basis points to 17.5%. These positive developments make STRL stock an attractive option for long-term investors who are bullish on infrastructure modernization in the United States.

<<<



---

[gfp927z]

>>> Comfort Systems USA (NYSE:FIX) primarily provides mechanical services, specializing in heating, ventilation, and air conditioning (HVAC) installation, maintenance, and repairs for commercial and industrial buildings. The company operates in a highly fragmented market, offering a significant growth opportunity for discerning investors.

https://finance.yahoo.com/news/3-undervalued-stocks-track-double-152307233.html

Comfort Systems has been on a tear over the last few years, with the stock significantly outperforming the broader market. FIX stock has risen 502% in the last five years compared to the S&P 500, rising just 85%. This insane growth stems from expanding its revenue, earnings, and free cash flow.

Furthermore, management has remained committed to returning value to shareholders through its recent dividend increases and share buybacks. FIX stock will be a major beneficiary, with construction activity picking up on lower interest rates going into 2025. In the Q1 FY24, revenue increased 31% YOY to $1.54 billion. Net earnings swelled 68% YOY to $96.3 billion while generating $140 million in cash flow from operations. With a record backlog of $5.91 billion, FIX stock is among the top undervalued stocks to buy now.

<<<



---