Author: therawinformant

There's been a notable change in appetite for Netflix, Inc. (NASDAQ:NFLX) shares in the week since its second-quarter…

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How do you pick the next stock to invest in? One way would be to spend days of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of […]

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The European Union is reportedly in talks to make advance purchase deals of potential COVID-19 vaccines with drugmakers Moderna (MRNA), Sanofi (SNY) and Johnson & Johnson (JNJ)  as well as biotech firms BioNtech (BNTX) and CureVac.The most advanced talks appear to be those with Johnson & Johnson and Sanofi because the EU is already discussing details on the number of doses needed, Reuters reported. With U.S. giant Johnson & Johnson, the EU is negotiating a supply of 200 million doses of its potential vaccine, the Reuters report said, adding that additional supplies may also be available.“We are in talks with several companies on possible COVID-19 vaccines,” a spokesman for the Commission told Reuters on Friday, declining to comment on specific firms as negotiations were confidential.In the second half of next year, the EU is also planning to secure 300 million doses of the potential vaccine developed by France’s Sanofi in cooperation with British drugmaker GlaxoSmithKline.In addition, Sanofi told Reuters it was in “advanced talks with the EU for the delivery of 300 million doses”. Negotiations were also ongoing, with U.S. firm Moderna, whose experimental COVID-19 vaccine demonstrated last week that it was safe and provoked immune responses in all 45 healthy volunteers in an ongoing early-stage study.The EU is also in talks with German biotechnology firms BioNtech and CureVac to buy in advance their potential vaccines. BioNtech is developing a potential COVID-19 vaccine in cooperation with U.S. pharmaceutical giant Pfizer (PFE), for which 100 million doses could be available by the end of the year. Following the report, shares in Moderna jumped 16% to $94.85 at the close on Friday propelling this year’s rally to 385%. What’s more, Wall Street analysts have a bullish Strong Buy consensus on the stock’s outlook. Meanwhile, the $94.15 average price target suggests the stock is now fully valued. (See MRNA stock analysis on TipRanks).However, Oppenheimer analyst Hartaj Singh sees more room for stock gains ahead. The analyst reiterated a Buy rating on the shares with a $108 price target (14% upside potential) saying that he continues to find MRNA attractive as he believes that the company is the leader in the COVID-19 vaccine space.“Pricing dynamics, potential donation of free vaccine and distribution of mRNA-1273, its potential vaccine, are non-trivial issues,” Singh wrote in a note to investors. “We believe these can be navigated, but transit could be choppy.”Related News: AstraZeneca Pops Ahead of Covid-19 Vaccine Data Report Due July 20 Moderna Soars 16% As Covid-19 Vaccine Shows Strong Immune Response IMV Pops 134% In Pre-Market On “Rapid Progress” Of Covid-19 Vaccine Development More recent articles from Smarter Analyst: * Walgreens Partners With DoorDash For Online Delivery During Pandemic * Twitter Reveals Hackers Targeted 130 Accounts; Top Analyst Sees Stock ‘Overhang’ * Lockheed Wins $15 Billion U.S. Air Force Contract For C-130J Military Transport Jet * Uber Inks Agreement With Google Maps

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Joe Duran, Head of Goldman Sachs Personal Financial Management, joins Yahoo Finance’s Kristin Myers to discuss his outlook on the markets, as coronavirus cases continue to surge across the U.S.

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Lockheed Martin (LMT) has won a $15 billion contract to supply the U.S. Air Force with its C-130J Hercules transport aircraft.The contract was awarded for the development, integration and production of all the four variants of the military transport aircraft. The U.S. Air Force said that the contract is for an indefinite quantity and indefinite delivery. Work, which will be performed at Lockheed’s plant in Georgia, is expected to be completed July 16, 2030.The C-130J aircraft can carry tons of supplies more than 3,000 miles and deliver “the last mile” to remote operating bases, keeping trucks off dangerous highways. It operates with only two pilots and one loadmaster for most missions, exposing fewer flight crew members to potential combat threats. The aircraft is used by about 20 countries around the globe.“This contract involves foreign military sales and is the result of a sole-source acquisition” the U.S. Air Force said in a statement. “Fiscal 2018 and 2019 aircraft procurement funds in the amount of $3,300,000 are being obligated at the time of award.”Separately, Lockheed was awarded a $935 million contract by the U.S. Navy to procure support equipment, autonomic logistics information system hardware, training systems, site activations and integrated contractor support for its F-35 Lightning II.Ahead of the company’s Q2 financial results on July 21, Credit Suisse analyst Robert Spingarn cut the stock's price target to $400 (8.9% upside potential) from $433 and maintained a Hold rating, amid expectations that the Covid-19 impact will put pressure on its aeronautics business.The analyst forecasts Q2 EPS of $5.76, down from $5.87 previously, noting that Covid-19 cases have been rising both across the country and in areas where Lockheed has key manufacturing operations, including Fort Worth, creating some risk to near-term numbers from a supply-side perspective.Overall, LMT scores a Moderate Buy rating from the Street with 8 recent Buy ratings versus 5 Hold ratings. Meanwhile, with shares down 5.4% year-to-date, the $421.85 average analyst price target translates into about 15% upside potential from current levels. (See Lockheed’s stock analysis on TipRanks).Related News: American Airlines, JetBlue Partner To Boost Flight Options In Bid For Covid-19 Recovery Delta Posts $2.8B Quarterly Loss, Cuts Summer Flights Amid Rise In Covid-19 Cases Airbus First-Half Deliveries Drop 49% Amid Covid-19 Aviation Crisis More recent articles from Smarter Analyst: * Uber Inks Agreement With Google Maps * Nikola Sinks 15% In Extended Trading On Share Offering * Dynavax Teams Up With Mt Sinai On Universal Flu Vaccine * Norwegian Cruise Sets $15 Offering Price, As Downgrades Sweep Stock

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The aftermath of the coronavirus recession has split America in two: Those who have emerged from the crisis still financially intact versus others who are shaken.

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Michael Jones, Caravel Concepts Chairman and CEO, joins Yahoo Finance’s The First Trade with Alexis Christoforous and Brian Sozzi to discuss what’s moving the markets on Friday morning.

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It’s that time of year again. Earnings season is in full swing, and investors are bracing for some bad news as companies report their second quarter results. Ahead of the upcoming prints, the Street is calling for a sharp profit decline as a result of the COVID-19 pandemic and the heavy blow it dealt to the economy. While the results could be rough for many, the pros from RBC Capital argue that the health crisis has altered consumer behavior for the foreseeable future. To this end, the investment firm, which lands within the top four on TipRanks’ list of Top Performing Research Firms, reevaluated several large-cap names in its coverage universe before their earnings releases, locking in on two FAANG stocks poised to emerge from the crisis as winners. Using TipRanks’ database, we pulled up the details on these two stocks to find out how the rest of the Street thinks each will fare when they publish their second quarter numbers. According to the platform, both have received plenty of love from other analysts, earning a “Strong Buy” consensus rating. Facebook (FB) It has been anything but smooth sailing for social media giant Facebook, with several of its advertisers boycotting the company. Still, RBC sees plenty of positives ahead of its July 29 earnings release. Representing the firm, five-star analyst Mark Mahaney acknowledges that a potential second wave of COVID-19 cases and the resulting reinstatement of lockdowns as well as the increasing number of advertisers taking their ad spend elsewhere could spur headwinds for this FAANG stock. However, after looking at intra-quarter data, he told clients, “…we view current Street June quarter and H2:20 estimates as reasonable to modestly conservative, given a material data point that suggests a stronger-than-expected recovery in U.S. Online Ad Spend and our analysis on U.S. Political Digital Ad Spend.” What are the exact estimates? Mahaney is calling for revenue, operating income and GAAP EPS of $17.62 billion, $4.15 billion and $1.23, respectively, versus the $17.13 billion, $4.73 billion and $1.37 consensus estimates. During the release, Mahaney will be paying close attention to advertising revenue growth, which he believes will slow significantly from Q1. That said, the analyst sees a recovery taking place at a much faster pace than other members of the Street, forecasting a near-full rebound in Q4. When it comes to political digital ad spend, he commented, “Our analysis suggests this spend could contribute as much as 6% to FB’s H2:20 North American Ad Revenue, which we believe is underappreciated in current Consensus numbers.” Margin levels are expected to dip, but investors could get good news when FB reports figures for user growth and engagement. Based on RBC’s eighth social media survey, FB’s penetration gained sequentially for the first time since June 2017, and the time spent and future Intent metrics notched record highs. On top of this, satisfaction and engagement for Instagram reached all-time highs, and commercial activity on Facebook Marketplace and Instagram got a boost. Expounding on the commerce activity uptick, Mahaney stated, “By making its properties more ‘transactionable’ thru Facebook Shops, advertisers should find greater utility in its ad units, thus potentially translating to higher eCPMs over time. The uptick in commercial behavior on its sites gives us greater confidence that Facebook can further penetrate e-commerce advertiser budgets.” In line with his optimistic take, Mahaney stayed with the bulls. In addition to reiterating an Outperform call, he kept a $271 price target on the stock, suggesting 12% upside potential. (To watch Mahaney’s track record, click here) Looking at the consensus breakdown, most other analysts agree with Mahaney’s assessment. With 28 Buys and 5 Holds, the word on the Street is that FB is a Strong Buy. At $256.92, the average price target implies shares could rise 6% in the next year. (See Facebook stock analysis on TipRanks) Amazon (AMZN) With respect to RBC’s other FAANG stock pick, it’s no secret that e-commerce titan Amazon has been one of the key beneficiaries of the COVID crisis, which should be reflected in its earnings release on July 30. Analyst Mark Mahaney, who also covers FB, recently lifted his estimates for the June quarter, now predicting $80.7 billion in revenue. How does this compare to the consensus? It is in line with consensus as well as at the high end of management’s guidance. For GAAP operating income and GAAP EPS, the figures could land at $1.5 billion and $1.90, respectively, based on Mahaney’s estimates. The key areas to focus on, according to Mahaney, will be the impact of COVID-related spend and operating margin trends. “We will be listening for details on AMZN’s $4 billion spend—did the company spend at expected levels; did the spend help the company get back to par in terms of speed of delivery; how much more does AMZN need to spend to get back to normal – i.e., when will One Day mean One Day and not one day,” he explained. As for Q2 GAAP operating margin, the analyst expects the figure to come in at 1.8%, which would reflect a year-over-year decline of 300 basis points thanks to COVID-related costs and higher fulfilment and shipping expenses. Additionally, Mahaney is eagerly waiting to see if its AWS segment has been a “structural winner from this crisis.” For this area of the business, he is calling for significant revenue growth of 33% year-over-year. When it comes to ad revenues, the analyst stated, “AMZN’s Ad revenue platform proved to be the most resilient in the March quarter, and we will be looking to see if it is true for the June quarter as well.” It should also be noted that a majority of consumers said the COVID-19 crisis increased their willingness to purchase online versus in-store, according to an RBC survey. Add to this the fact that “eBay’s intra-quarter announcement suggests that eCommerce continued to see a material demand surge”, and Mahaney thinks AMZN is positioned for success. Mahaney does point out that there’s still plenty of uncertainty going forward, so there is a broader range of H2 outcomes than is typical. However, all of the above make him optimistic about the giant’s long-term growth prospects. To this end, Mahaney maintained an Outperform rating and $3,300 price target. Should the target be met, a twelve-month gain of 11% could be in store.  Few disagree with Mahaney’s take on Amazon. Out of 39 total reviews published in the last three months, 36 analysts rated the stock a Buy, while 2 said Hold and only 1 said Sell. So, AMZN gets a Strong Buy consensus rating. Given the $2,991.34 average price target, the upside potential comes in at 1%. (See Amazon stock analysis on TipRanks)

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There are several sectors where companies leverage for growth. Leverage can be productive when the industry or GDP growth is robust. On the other hand, in times of economic downturn, leverage can stress the balance sheet and result in potential bankruptcy.There are also less capital-intensive sectors that require less debt. Further, there are companies that prefer to infuse capital through equity than debt. These debt-free companies have strong fundamentals and ample financial headroom to pursue aggressive growth. * 15 Growth Stocks That Are Being Propped Up By Low Rates This column will discuss 4 debt-free companies with stocks to buy. Besides being debt-free, my focus is on stocks that are likely to be in limelight in the coming quarters.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * Kirkland Lake Gold (NYSE:KL) * Virgin Galactic Holdings (NYSE:SPCE) * Inovio Pharmaceuticals (NASDAQ:INO) * Moderna (NASDAQ:MRNA)These debt-free companies can be value creators in the near-term and the long-term. 4 Companies With Little Or No Debt Worth A Second Look: Kirkland Lake Gold (KL)Source: allstars / Shutterstock.com Gold has been trending higher due to aggressive expansionary monetary policies enacted by the Federal Reserve. Its not surprising that gold mining stocks have surged in fiscal year 2020. Among debt-free companies, Kirkland Lake Gold is an exciting name and a potential long-term value creator.As of June 2020, the company reported $537 million in cash and zero debt. For the same quarter, the company reported free cash flow of $191.4 million. This implies an annualized FCF of $800 million.Therefore, KL stock is well positioned to be a value creator with expanding EBITDA margin, higher cash flows, increasing dividends and zero debt.Kirkland Lake Gold also acquired Detour Gold in January 2020, which will result in higher production in the coming years. Their debt-free status gives the company ample financial headroom to pursue aggressive capital investments, which will help maximize the benefit from higher gold prices.Overall, KL stock is worth holding in your portfolio for its fundamental strength. In addition, the company operates in a sector that has multiple tailwinds. Virgin Galactic Holdings (SPCE)Source: Tun Pichitanon / Shutterstock.com Virgin Galactic Holdings, a major player in the commercial spaceflight sector, is among the debt-free companies worth considering. SPCE stock has been in a consolidation zone in the last few months and a breakout is imminent.In June 2020, the company announced the completion of a second test flight. With this, the company is closer to fulfilling its mission. It was also reported in June that the company is expected to receive a key FAA license within the next two space flights. Once the approval is received, SPCE stock is likely to trend higher. * 15 Growth Stocks That Are Being Propped Up By Low Rates From a revenue perspective, the company launched a "One Small Step" initiative where prospective customers can reserve their tickets for future flights for a $1,000 refundable deposit. By April 2020, the company had 400 customers registered. This implies $100 million in future revenues. This provides some insights on the company's long-term growth potential. Inovio Pharmaceuticals (INO)Source: Ascannio / Shutterstock.com With the frenzy around vaccines for the novel coronavirus, INO stock has stayed on investors' minds this year. In the past year, INO stock has surged by 760%, with most of the gains coming in FY2020. With a strong balance sheet and minimal debt, the stock is worth considering as vaccine development remains in focus.Specific to the COVID-19 vaccine, the company has already announced positive data for Phase 1 of the vaccine. Further, besides the coronavirus vaccine, the company has other DNA medicines in various phases of clinical trial.The risk factor is that the company still does not have any commercialized drugs or vaccines. However, the stock could go ballistic if one or more of its pipeline medicines are commercialized. It therefore makes sense to have some exposure to INO stock. Moderna (MRNA)Source: Shutterstock As the world eagerly awaits a vaccine for the novel coronavirus, another name to watch is MRNA stock. After surging by 405% over just one year, the company currently trades at a current market capitalization of $27.9 billion. However, even with the investments related to research & development, Moderna remains debt-free.In terms of developments related to the COVID-19 vaccine, Moderna is expected to commence Phase 3 trial of mRNA-1273 later this month. The trial will involve 30,000 participants.Moderna also has other drugs in Phase 1 and Phase 2 of clinical trials, including potential Prophylactic Vaccines and cancer vaccines among others. Therefore MRNA stock could be interesting beyond the present crisis. * 15 Growth Stocks That Are Being Propped Up By Low Rates Importantly, the stock upside will sustain in the near-term if the clinical trials deliver positive results. With a debt free balance sheet, Moderna has ample financial headroom to invest in research and development. This will allow the company to grow in the coming years.Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modelling. Faisal has authored over 1,500 stock-specific articles with focus on the technology, energy and commodities sector. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 4 Debt-Free Companies With Strong Stocks to Buy appeared first on InvestorPlace.

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What once was the joke of the major auto manufacturer is now the monster on Wall Street. Tesla (NASDAQ:TSLA) was the target of the comedy among the experts, and now the company market capitalization is more than four times that of Ford (NYSE:F) and General Motors (NYSE:GM) combined. F stock specifically has been pitiful, but I think this is about to change.Source: Jonathan Weiss / Shutterstock.com Today we discuss the opportunity of owning it into 2021, as the upside potential definitely outweighs the downside risk. That is the byproduct of being a laggard for so long that it runs out of incremental sellers.Ford stock has already disappointed the maximum number of people. Therefore there are probably more buyers than sellers.InvestorPlace – Stock Market News, Stock Advice & Trading Tips F Stock Needs Management to Step UpThe thesis is simple. Ford has proven over its 115 years that it can survive adversity and thrive thereafter. Going through tough times is normal part of existing for this long. Case in point — just last year consensus was that Tesla was going to run out of money and here they are with the best balance sheet of the U.S. auto makers. * 15 Growth Stocks That Are Being Propped Up By Low Rates It all starts with good leadership, and F stock's problems mostly stem from a mediocre team. This is not an insult to the people, but rather the decisions from the top. There has been nothing exciting from that company for so long that it is a miracle that they still have fans on Main Street.But recently, there is news that could be the light at the end of the tunnel. The Bucking Bronco is BackAfter a quarter of a century, Ford is bringing back the Bronco. My family is full of car buffs, and they all are big fans of it even though officially we are strictly GM truck owners. It is the nostalgia mixed with the special sauce that makes the Bronco unique. While this is the emotional reason behind my excitement today, the Wall Street spin on it is that this is a new direction that could put life into F stock.Source: Charts by TradingView The chart has been so bad for so long that the smallest breakout could launch a storm of buying. The passion from the cars is infectious and should carry into the stock especially since the entry cost is low. This does not always mean that it is cheap, but in this case it is. Ford stock price is under 0.2 times its full year sales. Compare this to GM at about 0.3 and Tesla at 10.7.Some would say it is not a fair comparison because they say that Tesla is not a car company. That may become true in the future but for now, from a revenue perspective it is indeed a car company.Timing to go long would have been perfect just a few days ago, because it just rallied 20% off the $5.70 base. This was a prior pivot and it did its job providing the bulls the platform they need to rally. The rally is not over though, because that is how stocks mount sustainable moves. The bulls have to tackle the ledges that they tried to defend on the way down because on the way back up they are resistance. Upside Potential Outweighs Downside RisksOwning F stock here for the long term has more upside potential than downside risk. However, it is also important that there is extrinsic risk from the stock market in general which can impact the progress. Stocks are too high given all the problems that we still have from the virus crisis. Still, in the end, this too shall pass and things will go back to normal.It does make sense to take the position in tranches to leave room to manage the risk. Options traders can even get long now for free.The strategy there is two-pronged. Step one is to buy March 2021 $7 call. Step two is to sell the March $6 put. The net effect is a near-zero cost and the investor would be then long the stock if it fall below it, and long at $7 if the rally continues and is sustainable. There would be virtually no damage if it fizzles because the stock has a strong base for the long term recovery opportunity.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Ford Stock Is Getting Ready to Go Into Top Gear appeared first on InvestorPlace.

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