Category: Stock Market

Last week, the Senate passed a bill to take on Chinese companies listed on U.S. stock exchanges. Soon, the rest of Washington appears poised to act.

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Economic Policy Institute Senior Economist Robert Scott joins Yahoo Finance’s Zack Guzman to discuss the his outlook on the economy as states slowly begin to reopen.

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(Bloomberg) — Amazon.com Inc.’s talks to buy driverless vehicle startup Zoox Inc. has analysts speculating the deal could save the e-commerce giant tens of billions a year and put auto, parcel and ride-hailing companies on their heels.Shipping costs are one of Amazon’s largest expenses and may reach $90 billion in the coming years, Morgan Stanley’s internet, auto and transport analysts wrote in a report Wednesday. An autonomous offering could save the company more than $20 billion annually, they estimate.“Autonomous technology is a natural extension of Amazon’s efforts to build its own third party logistics network,” Morgan Stanley’s analysts wrote. They see the company being a “clear” competitor to the likes of Tesla Inc. and General Motors Co. and the potential for Amazon to compete in ride-sharing and food delivery. United Parcel Service Inc. and FedEx Corp. also “will have to respond to keep up.”Other companies in the automotive and chip industries have also held talks with Zoox about a potential investment, according to people familiar with the matter. At least one other business besides Amazon has offered to buy the company, they added. Zoox is unlikely to sell for less than the more than $1 billion that it has raised, according to the people, who asked not to be identified discussing private negotiations.“Zoox has been receiving interest in a strategic transaction from multiple parties and has been working with Qatalyst Partners to evaluate such interest,” the startup said Tuesday. It declined to comment on Amazon’s interest. A spokeswoman for Amazon declined to comment.Zoox had outsize ambition and financial backing. The startup wanted to build a fully driverless car by this year. However, after a 2018 funding round that valued Zoox at $3.2 billion, the startup’s board voted to oust Chief Executive Officer Tim Kentley-Klay. The executive criticized the move, saying the directors were “optimizing for a little money in hand at the expense of profound progress.”Dow Jones reported that Amazon is in advanced talks to buy Zoox for less than the $3.2 billion valuation from 2018.Amazon is willing to spend heavily to automate its e-commerce business. The online retail giant purchased warehouse robot-maker Kiva Systems Inc. in 2012 for $775 million and now has tens of thousands of robots in warehouses around the world.But paying drivers to deliver packages is still one of the biggest costs in the company’s operation. Chief Executive Officer Jeff Bezos announced plans for drone delivery in 2013, though they have yet to materialize at scale. Last year, Amazon revealed an experimental delivery robot called Scout in the Seattle area that rolls on sidewalks like a shopping cart.Last year, Amazon invested along with Silicon Valley venture firm Sequoia Capital in self-driving startup Aurora Innovation Inc., a startup led by the former heads of Google’s driverless car project and Tesla’s Autopilot team. Amazon also backed Rivian Automotive Inc., the electric pickup and SUV maker. Those bets left Morgan Stanley’s auto analyst questioning earlier this month whether Tesla’s rich valuation is warranted given the competitive threats the company faces.“We often hear from investors that Tesla could potentially be the Amazon of transportation,” Adam Jonas, who rates Tesla the equivalent of a hold, wrote in a May 17 report. “But what if Amazon is the Amazon of transportation?”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Which stocks are leading the pack out on Wall Street? Biotechs. Understandably, investors have taken a more cautious approach when navigating the confused financial environment, but focus is locking in on the biotech sector as it has been able to withstand the COVID-19-induced pressure on the market. Proving to be relatively defensive, the biotech indexes, XBI and IBB, have outperformed the broader market year-to-date, with each gaining over 10% compared to the S&P 500’s 8% decline.The space’s resilience combined with a limited impact on Q1 fundamentals and the elimination of macro headwinds regarding drug legislation, has caused sentiment surrounding 2H20 performance to swing strongly positive.While there certainly are exciting opportunities at play, biotech stocks aren’t for the faint of heart. Seasoned market watchers know that they are notoriously volatile, prone to huge movements on account of a single update. This makes them riskier investments, but it also enables them to deliver massive returns. Taking all of this into consideration, we used TipRanks’ database to search the Street for compelling, yet affordable names housed in the biotech space. We found three stocks trading for less than $5 that are backed by enough Wall Street analysts to earn a “Strong Buy” consensus rating. If that wasn’t enough, each boasts explosive upside potential.BioLineRx Ltd. (BLRX)Primarily focused on oncology, BioLineRX in-licenses cutting-edge compounds, develops them through clinical stages and then partners with pharmaceutical companies for further clinical development.Tuesday was a rough day for BioLineRx investors. Shares tumbled nearly 30% following the announcement of an equity offering. The company priced 5,142,859 shares at $1.75 apiece, which was well below the $2.39 per share where the stock had been trading. Yet, with significant potential catalysts slated for 2020 and a share price of $1.60, several members of the Street believe that now is the time to snap up shares.In spite of COVID-19, its upcoming data readouts remain on track for this calendar year, including top-line results from the Phase 3 GENESIS trial. The study is looking at its BL-8040 candidate as a stem cell mobilization agent for multiple myeloma patients undergoing autologous transplant, with the trial specifically comparing motixafortide and G-CSF versus G-CSF alone.With the trial’s patient accrual progressing according to plan and no material protocol deviations witnessed to date, Oppenheimer’s Mark Breidenbach believes the data release, which is slated for 2H20, will be a “large-impact catalyst.”Expounding on this, the 5-star analyst stated, “Assuming positive data, management would likely engage with a partner to assist with the registrational filing and potential launch of motixafortide in stem cell mobilization… Based on prior data from a lead-in cohort, we remain confident that GENESIS can hit its primary endpoint, which could help attract a strategic collaboration to support commercialization.”On top of this, motixafortide is being evaluated across several indications, and PFS/OS data from the COMBAT/ KEYNOTE-202 trial in pancreatic cancer is scheduled for a mid-year release, with it aiming to publish interim results from the randomized Blast trial in AML in 2H20.Additionally, PFS/OS results from the COMBAT/KEYNOTE-202 triplet regimen (motixafortide, pembro and chemo) could be presented at a medical conference early this summer. Breidenbach pointed out, “The triplet previously yielded a 32% ORR and 77% disease control rate as of December 19 data cutoff. If the triplet combination suggests a PFS/ OS benefit, we would expect BioLineRx to seek a strategic partner for continued development.”To this end, Breidenbach left an Outperform (i.e. Buy) rating and $11 price target on the stock. Based on this target, shares could soar 567% in the next twelve months. (To watch Breidenbach’s track record, click here)Like Breidenbach, other analysts also take a bullish approach. BLRX’s Strong Buy consensus rating breaks down into 3 Buys and no Holds or Sells. Given the $11.33 average price target, a possible twelve-month gain in the shape of 587% could be on the horizon. (See BioLineRx stock analysis on TipRanks)Aldeyra Therapeutics (ALDX)Hoping to develop medicines capable of improving the lives of patients with immune-mediated diseases, Aldeyra’s pipeline focuses on inhibiting inflammatory cells linked to ocular and systemic conditions that aren’t sufficiently addressed by available treatments. Currently going for $4.11 apiece, several members of the Street recommend that investors pull the trigger.Recently, ALDX has found itself on investors’ radar as a result of its potential COVID-19 treatment, ADX-629. Writing for Laidlaw, analyst Yale Jen points out that the urgency of the pandemic and the likely MOA of TH1, TH2 and TH17-related cytokines reduction prompted the company to design three Phase 2 studies looking at ADX-629 in COVID-19 respiratory compromise (reducing impact from cytokine storm), autoimmune disease (associated with TH1 cytokines) and allergy (associated with TH2 cytokines). The first’s initiation is slated for Q3 2020, and the others should start in 2H20.“With this arrangement, ALDX could gain substantial insights into the anti-inflammatory effects ADX-629 might have in the clinic. We estimate the COVID-19 trial could be a placebo study for gaging the therapeutic impact of reducing or mitigating the disease worsening after the initial infection,” Jen commented. Additionally, the study could help the company design or adjust trial designs for the other two indications.Adding to the good news, ALDX is expected to have a meeting with the FDA to finalize the study design of part two of the RENEW trial, with it potentially kicking off the pivotal study in 2H20 after the COVID-19 situation improves.As for the Phase 3 ALLEVIATE trial data readout, it will most likely come in 1H21 due to the unexpected extended allergy season this year that increased the number of patients with red eye, which makes them ineligible for the study. Jen also acknowledges that COVID-19 has reduced the availability of doctors and patients able to participate in clinical studies. However, he argued, “Together, with ADX-629 taking the center stage, while other studies being slowing down, we do not view the fundamental of ALDX has been eroded in anyway… We think ALDX shares remain under-exposed and under-valued.”Based on all of the above, Jen stayed with the bulls. Along with a Buy rating, he kept a $30 price target on the stock. This implies upside potential of a massive 630%. (To watch Jen’s track record, click here) What does the rest of the Street think about ALDX? It turns out that other analysts also have high hopes. Only Buy ratings have been received in the last three months, 4 to be exact, so the consensus rating is a Strong Buy. In addition, the $26 average price target suggests 533% upside potential. (See Aldeyra stock analysis on TipRanks)Miragen Therapeutics Inc. (MGEN)Offering a compelling microRNA pipeline led by its cobomarsen asset, Miragen believes its therapies could potentially address the unmet needs in cancer and other diseases. At only $0.68 per share, the analyst community thinks that even though COVID-19 has presented headwinds, the share price reflects an attractive entry point.When it comes to MGEN’s SOLAR trial, it has come under pressure. While the trial is progressing with a modified design, the execution is facing challenges as patients have been missing doses and site visits due to COVID-19. Up to one month of medication can be missed per protocol and the implementation of home infusions has been lessening, but on-site evaluations are essential because they are required for mSWAT measurements and can’t be performed remotely. The implications? A data readout will most likely come later than previously expected.Representing Oppenheimer, 5-star analyst Leland Gershell remains unphased by the delay. “Following encouraging observations of prolonged disease stabilization with cobomarsen as seen in patients with residual disease post-chemo/other treatment, MGEN is exploring an expedited path to a label for this aggressive malignancy. It plans to soon request an FDA meeting to discuss, and while hopeful that this will occur in 3Q, cautioned on delay given agency prioritization of COVID-19-directed initiatives,” Gershell said.That said, there is a bright spot for MGEN, in Gershell’s opinion. According to the analyst, there’s a significant opportunity for its MRG-229 candidate in IPF because similar to remlarsen, “this candidate is an miR-29 mimic and hence may offer utility to address fibrotic conditions (in which miR-29 is profoundly deficient).”Gershell explained “MGEN's program has NIH/Yale grant support, and recent progress triggered additional funding. MRG-229 represents a differentiated approach to IPF, a progressive and fatal lung disease poorly met by current options.” He added, “With just a $12 million EV, we believe any pipeline progress could spark interest in MGEN.”All of this led Gershell to reiterate an Outperform (i.e. Buy) rating on MGEN along with a $5 price target, which suggest an explosive upside potential of 632%. (To watch Gershell’s track record, click here)      Looking at the consensus breakdown, other analysts are on the same page. With 3 Buys and no Holds or Sells, the word on the Street is that MGEN is a Strong Buy. At $5.33, the average price target puts the upside potential at 680%. (See MGEN stock analysis on TipRanks)To find good ideas for biotech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

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Yahoo Finance’s Brian Sozzi, Alexis Christoforous, and Rick Newman discuss President Trump’s latest moves after Twitter fact checked the claims in his tweets.

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The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 821 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of March 31st, 2020. […]

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Gilead Sciences (GILD) and Arcus Biosciences (RCUS), an oncology-focused biopharma, have announced a 10-year partnership to co-develop and co-commercialize current and future therapeutic product candidates in Arcus’s pipeline.The agreement will also provide ongoing funding to support Arcus’s research and development programs. On the news GILD shares stayed flat in Wednesday’s pre-market, while RCUS dropped 15%.“We are very pleased to build on Gilead’s growing presence in immuno-oncology,” said Daniel O’Day, CEO of Gilead. “By gaining access to its broad, diverse pipeline and Arcus’s clear strengths in discovery and development, we believe that our partnership with Arcus will significantly accelerate our progress in developing transformative new therapies for cancer.”Upon closing, Arcus will receive a $175M upfront payment and a $200M equity investment from Gilead. Arcus is also eligible to receive up to $1.225B in opt-in and milestone payments. This includes immediate rights to zimberelimab, as well as the right to opt-in to Arcus clinical candidates, upon payment of an opt-in fee ranging from $150M to $275M.If Gilead opts-in to the program for the investigational anti-TIGIT monoclonal antibody AB154, Arcus can receive up to $500M in future U.S. regulatory approval milestones.Gilead will obtain exclusive rights to commercialize any programs outside of the US, for which it will pay tiered royalties from high-teens to low twenties. Gilead will also provide up to $400M in ongoing research and development support over the collaboration term, and can appoint two directors to Arcus’s board.The $200M equity investment will be priced at $33.54 per share. Gilead will also have the right to purchase additional shares from Arcus, up to 35% over the next five years, at a 20% premium at the time the option is exercised, or, if greater, the initial purchase price per share.The transaction is expected to close in the third quarter of 2020.Shares in GILD are up 13% year-to-date, and analysts have a cautious outlook on the stock. The Hold analyst consensus is made up of 8 recent buy ratings vs 16 hold ratings and 4 sell ratings, while the $79 average price target  indicates 8% upside potential lies ahead. (See Gilead stock analysis on TipRanks)Related News: Gilead and Galapagos Score Positive Topline Results For Ulcerative Colitis Trial Regeneron, Sanofi Get FDA Nod For Dupixent Treatment In Children AstraZeneca-Merck Lynparza Prostate Cancer Treatment Gets FDA Approval More recent articles from Smarter Analyst: * Papa John’s U.S. Pizza Sales Jump 33.5%; Shares Pop 7% In Pre-Market * WalMart Shutters Jet.Com 4 Years After Purchase * Domino’s Pizza Delivers Strong US Sales; Top Analyst Boosts Estimates * Walmart Partners With ThredUp To Enter Fashion Resale Market

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(Bloomberg) — At a factory near Germany’s border with the Czech Republic, Volkswagen AG’s ambitious strategy to become the global leader in electric vehicles is coming up against the reality of manufacturing during a pandemic.The Zwickau assembly lines, which produce the soon-to-be released ID.3 electric hatchback, are the centerpiece of a plan by the world’s biggest automaker to spend 33 billion euros ($36 billion) by 2024 developing and building EVs. At the site, where an East German automaker built the diminutive Trabant during the Cold War, VW eventually wants to churn out as many as 330,000 cars annually. That would make Zwickau one of Europe’s largest electric-car factories—and help the company overtake Tesla Inc. in selling next-generation vehicles.But Covid-19 is putting VW’s and other automakers’ electric ambitions at risk. The economic crisis triggered by the pandemic has pushed the auto industry, among others, to near-collapse, emptying showrooms and shutting factories. As job losses mount, big-ticket purchases are firmly out of reach—in the U.S., where Tesla is cutting prices, more than 36 million people have filed for unemployment since mid-March. Also, the plunge in oil prices is making gasoline-powered vehicles more attractive, and some cash-strapped governments are less able to offer subsidies to promote new technologies.Even before the crisis, automakers had to contend with an extended downturn in China, the world’s biggest auto market, where about half of all passenger EVs are sold. Total auto sales in China declined the past two years amid a slowing economy, escalating trade tensions, and stricter emission regulations. EV sales are forecast to fall to 932,000 this year, down 14% from 2019, according to BloombergNEF. The drop-off is expected to stretch into a third year as China's leaders have abandoned their traditional practice of setting an annual target for economic growth, citing uncertainties. Economists surveyed by Bloomberg expect just 1.8% GDP growth this year.The global market contraction raises the prospect of casualties. French finance minister Bruno Le Maire has warned that Renault SA, an early adopter of electric cars with models like the Zoe,  could “disappear” without state aid. Even Toyota Motor Corp., a hybrid pioneer when it first introduced the Prius hatchback in 1997, is under pressure. The Japanese manufacturer expects profits to tumble to the lowest level in almost a decade.Automakers who for years have invested heavily in a shift to a high-tech future—including autonomous vehicles and other alternative energy-based forms of transportation such as hydrogen—now face a grim test. Do their pre-pandemic plans to build and sell electric cars at a profit have any chance of succeeding in a vastly changed economic climate? Even as Covid-19 has obliterated demand, for the car makers most committed to electric, there’s no turning back.“We all have a historic task to accomplish,” Thomas Ulbrich, who runs Volkswagen’s EV business, said when assembly lines restarted on April 23, “to protect the health of our employees—and at the same time get business back on track responsibly.”Volkswagen Pushes AheadGlobal EV sales will shrink this year, falling 18% to about 1.7 million units, according to BloombergNEF, although they’re likely to return to growth over the next four years, topping 6.9 million by 2024. “The general trend toward electric vehicles is set to continue, but the economic conditions of the next two to three years will be tough,” said Marcus Berret, managing director at consultancy Roland Berger.Volkswagen’s Zwickau facility became the first auto plant in Germany to resume production after a nationwide lockdown started in March. Before restarting, the company crafted a detailed list of about 100 safety measures for employees, requiring them to, among other things, wear masks and protective gear if they can’t adhere to social-distancing rules.The cautious approach has reduced capacity—50 cars per day initially rolled off the Zwickau assembly line, roughly a third of what the plant manufactured before the coronavirus crisis. (VW said Wednesday that daily output had  risen to 150 vehicles, with a plan to reach 225 next month.) Persistent software problems also have plagued development of the ID.3, one of 70 new electric models VW group is looking to bring to market in the coming years. Still, Ulbrich and VW CEO Herbert Diess over the past three months have reaffirmed Volkswagen’s commitment to electrification. “My new working week starts together with Thomas Ulbrich at the wheel of a Volkswagen ID.3 – our most important project to meet the European CO2-targets in 2020 and 2021,” Diess wrote in a post on LinkedIn in April. “We are fighting hard to keep our timeline for the launches to come.”Diess has described the ID.3 as “an electric car for the people that will move electric mobility from niche to mainstream.” Pre-Covid, the company had anticipated that 2020 would be the year it would prove its massive investments and years of planning for electric and hybrid models would start to pay off.A more pressing worry that could hamper VW’s ability to scale up production is its existing inventory of unsold vehicles. The cars need to move to make room for new releases, but sales are down as consumers are tightening their spending. One response has been to offer improved financing in Germany, including optional rate protection should buyers lose their jobs. VW also has adopted new sales strategies first used by its Chinese operations, such as delivering disinfected cars to customer homes for test drives, and expanding online commerce.Other German automakers are similarly pushing ahead with EV plans. Daimler AG is sticking to a plan to flank an electric SUV with a battery-powered van and a compact later this year. BMW AG plans to introduce the SUV-size iNEXT in 2021 as well as the i4, a sedan seeking to challenge Tesla’s best-selling Model 3.A potential obstacle for all these companies—apart from still patchy charging infrastructure in many markets—is the availability of batteries. Supply bottlenecks appear inevitable given that the number of electric car projects across the industry outstrip global battery production capacity. And boosting cell manufacturing is a complicated task.China's (Weakened) EV Dominance For VW and others, the first big test of EVs’ appeal in a Covid-19 world will come in China. Diess has referred to China as “the engine of success for Volkswagen AG.” VW group deliveries returned to growth year-on-year last month in China, while all other major markets declined.Not long ago, China appeared to be leading the world toward an electric future. As part of President Xi Jinping’s goal to make the country an industrial superpower by 2025, the government implemented policies that would boost sales of EVs and help domestic automakers become globally competitive, not just in electric passenger cars but buses, too.With the outbreak seemingly under control in much of the country, China is seeing some buyers return to the showrooms, but demand for passenger cars is likely to fall for the third year in a row, putting startups like NIO Inc.  at risk and hurting more-established players like Warren Buffett-backed BYD Co., which suffered from a 40% year-on-year vehicle sales decline in the first four months of 2020.The Chinese auto market may shrink as much as 25% this year, according to the China Association of Automobile Manufacturers, which before the pandemic had been expecting a 2% decline. EV sales fell by more than one-third in the second half of 2019.NIO, the Shanghai-based startup that raised about $1 billion from a New York Stock Exchange initial public offering in 2018 but lost more than 11 billion yuan ($1.5 billion) last year, was thrown a much-needed lifeline when a group of investors, including a local government in China’s Anhui Province, offered 7 billion yuan last month.Other Chinese manufacturers are counting on support from the government, too, including tax breaks and an extension to 2022 of subsidies, originally scheduled to end this year, to make EVs more affordable.For now, the government will also look to help makers of internal combustion engine vehicles, at least during the worst of the crisis, said Jing Yang, director of corporate research in Shanghai with Fitch Ratings. But, she said, “over the medium-to-long term, the focus will still be on the EV side.”America is Tesla CountryCompanies can’t count on that same level of support from President Donald Trump in the U.S., where consumers who love their SUVs and pickup trucks have largely steered clear of electric vehicles other than Tesla’s.The U.S. lags China and Europe in promoting the production and sale of EVs, and that gap may widen now that Americans can buy gas for less than $2 a gallon.“When you’re digging out of this crisis, you’re not going to try to do that with unprofitable and low-volume products, which are EVs,” said Kevin Tynan, a senior analyst with Bloomberg Intelligence.Weeks after announcing plans to launch EVs for each of its brands, General Motors Co. delayed the unveiling of the Cadillac Lyriq EV originally planned for April. Then on April 29, the company said it would put off the scheduled May introduction of a new Hummer EV. The models are part of CEO Mary Barra’s strategy to spend $20 billion on electrification and autonomous driving by 2025, to try to close the gap with Tesla.In another move aimed at winning over Tesla buyers, Ford Motor Co. unveiled its electric Mustang Mach-E last November at a splashy event ahead of the Los Angeles Auto Show. The highly anticipated model had been scheduled to debut this year. Ford has not officially postponed the release, but the company has said all launches will be delayed by about two months, potentially pushing the Mach-E into 2021.Elon Musk, whose cars dominate the U.S. electric market, cut prices by thousands of dollars overnight. The Model 3 is now $2,000 cheaper, starting at $37,990. The Model S and Model X each dropped $5,000.Musk engaged in a high-profile fight with California officials this month over Tesla’s factory in Fremont, California, which had been closed by shutdown orders Musk slammed as “fascist.”  In a May 11 tweet, he said the company was reopening the plant in defiance of county policy. On May 16, Tesla told employees it had received official approval.During most of the shutdown in California, the company managed to keep producing some cars thanks to better relations with local officials regulating its other factory, in Shanghai. That plant closed as the virus spread from Wuhan in late January, but the local government helped it reopen a few weeks later in early February.First Zwickau, Then the WorldThe ID.3’s new electric underpinning, dubbed MEB, is key to VW’s strategy to sell battery-powered cars on a global scale at prices that will be competitive with similar combustion-engine vehicles. Automakers typically rely on such platforms to achieve economies of scale and, ultimately, profits. MEB will be applied to purely electric vehicles across all of the company’s mass-market brands, including Skoda and Seat.VW said it spent $7 billion developing MEB after Ford last year agreed to use the technology for one of its European models. Separately, the group’s Audi and Porsche brands are built on a dedicated EV platform for luxury cars that the company says will be vital in narrowing the gap with Tesla.VW plans to escalate its electric-car push by adding two factories, near Shanghai and Shenzhen, that it says could eventually roll out 600,000 cars annually, more cars than Tesla delivered globally last year.While China is the initial goal, making a dent in Europe and the U.S. is the long-term one. Like China, Europe had been tightening emissions regulations significantly before the pandemic. New rules to reduce fleet emissions will gradually start to take effect this year, effectively forcing most manufacturers to sell plug-in hybrids and purely electric cars to avoid steep fines.Because of the mandates, Europe’s commitment to electrification isn’t going away, said Aakash Arora, a managing director with Boston Consulting Group. “In the long term, we don’t see any relaxation in regulation,” he said.For VW, this crisis wouldn’t be the first time it started a new chapter in difficult times. Diess saw an opportunity coming off the manufacturer’s years-long diesel emissions scandal that cost the company more than $33 billion to win approval for the industry’s most aggressive push into EVs. When VW unveiled the ID.3, officials compared its historic role to the iconic Beetle and the Golf, not knowing that this might hold in unintended ways: The Beetle arose from the ashes of World War II, and the Golf was greeted by the oil-price shock in the 1970s.“We have a clear commitment to become CO2 neutral by 2050,” VW strategy chief Michael Jost said, “and there is no alternative to our electric-car strategy to achieve this.”(Updates with Tesla price cut starting in the third paragraph. An earlier version corrected the spelling of Berret in the ninth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Shares in Tractor Supply (TSCO) surged 9% in Tuesday’s after-hours trading, after the company pre-announced surprisingly impressive Q2 trends, featuring +24-29% sales growth and +20-25% comparable store sales growth.“Our outlook for record-breaking sales and earnings in the second quarter demonstrates the potential for Tractor Supply to emerge stronger than before as we continue to gain market share and build our business for the future,” said Hal Lawton, Tractor Supply’s CEO.Notably, TSCO’s e-commerce business has experienced substantial growth quarter-to-date with many customers choosing Buy Online, Pickup At Store and the new contactless curbside delivery option, the company stated.And while there is still a significant portion of the second quarter ahead, Tractor Supply is now forecasting net sales growth of 24% to 29% and comparable store sales growth of 20% to 25%.Building on first quarter momentum, the company’s gross profit performance continues to be strong with gross margin expansion anticipated for the second quarter.“For the second quarter, the net incremental operating expenses related to the COVID-19 pandemic are estimated to be at the high end of the Company’s previous guidance range of $30 million to $50 million” Tractor Supply said, with diluted earnings per share forecast at $2.45 to $2.65.Following the news Wells Fargo analyst Zachary Fadem exclaimed “Holy cow… reason to believe comps could be even better.” He continued: “Considering the timing of today’s release, we believe sales likely accelerated throughout the month of May, and with all of June remaining in Q2, we believe comps could be tracking even higher today (+30%).”In a category comprised of many sub-scale players, he sees TSCO as increasingly advantaged, and clearly benefitting from robust category demand (lawn/garden, pet, etc.), Omnichannel investments and its recently launched national ad campaign.“While we can’t help but think about next year’s tough compare, we continue to view TSCO a core holding in today’s market, favoring its staples-like offerings, high quality execution, and ample long-term comp drivers” he concluded. As a result, Fadem ramped up his price target to $130 from $105 previously.Similarly, Oppenheimer’s Brian Nagel boosted his price target from $110 to $135 on the news, while Baird’s price target rose to $130 from $115 previously. Overall the stock scores a Moderate Buy analyst consensus rating and $107 average analyst price target. Shares are currently trading up 19% on a year-to-date basis. (See Tractor Supply stock analysis on TipRanks).Related News: Autodesk Earnings: Here’s What To Expect Today Tilray To Shut Ontario Cannabis Greenhouse In Money-Saving Move Uber In Partnership With MoneyGram For Driver Discount During Pandemic More recent articles from Smarter Analyst: * Domino’s Pizza Delivers Strong US Sales; Top Analyst Boosts Estimates * Walmart Partners With ThredUp To Enter Fashion Resale Market * Regeneron, Sanofi Get FDA Nod For Dupixent Treatment In Children * Six Flags Set to Partially Reopen in June, Stock Jumps on News

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