Category: Stock Market

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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Brown Advisory recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Equity Income Fund posted a return of 18.29% for the quarter, underperforming its benchmark, the S&P 500 Index which returned 20.55% in the same quarter. You should check out Brown Advisory’s top 5 stock picks for investors […]

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Right now the markets are facing down high unemployment and business closures, with a health crisis added to the mix. It's safe to say that this was not a good year for the American economy — and specifically not for banks. With interest rates close to zero, large bank stocks saw some of their biggest price drops in decades.There were some macro developments in the economy, such as the fall in unemployment rates each month as businesses begin to open up. However, the banking industry continues to remain one of the more befuddling sectors as corporations face the risk of loans gone bad and low interest rates.Companies kicked off earnings season this week and bank stocks saw some volatility on Tuesday in anticipation of the results. JP Morgan (NYSE:JPM) shares rose 0.6% while Wells Fargo (NYSE:WFC) stock dropped 4.6%, among others.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * 15 Growth Stocks That Are Being Propped Up By Low Rates However, speculations were soon put to rest when earnings were released. Based on the results, here are three stocks still worth a look: * Goldman Sachs (NYSE:GS) * JP Morgan * Citigroup (NYSE:C) Bank Stocks: Goldman Sachs (GS)Source: Volodymyr Plysiuk / Shutterstock.com If we were to crown a winner of the bank earnings season (thus far), it would have to be Goldman Sachs. In the hours prior to market open on July 15, the company released its earnings report and the numbers were a smashing success.Tensions ran high for many banks into earnings season but the same cannot be said for Goldman Sachs — it saw some of its best revenue in years. According to CNBC, the bank's revenue for the period was $13.3 billion which beat estimates by over $3.5 billion. Earnings per share (EPS) was not too shabby at $6.26 per share, which eclipsed the estimated $3.78 per share.There were a lot of shining stars in Goldman's earnings this year. These include a global markets division that secured $7.2 billion in revenue, asset management division that brought in $2.1 billion and investment banking with a $2.7 billion on the table.In terms of credit reserves, the company had $1.59 billion in its back pocket, but this wasn't enough as profits fell by 33%. However, this is hardly a cause for concern for investors, given the stellar revenue numbers across all operations.Goldman Sachs' strong performance can be attributed to two main drivers. The first is activities on Wall Street, like trading and banking. Customers' low-value deposits in retail banking have been a boon for the company's stock price. This was in tandem with market volatility that led many investors to hedge their losses and place risky bets.The second comes in the form of a fiscal stimulus from the government. The effect of the pandemic was detrimental to the economy's performance and the government did everything in its power to keep the credit markets afloat. The aggressive stimulus injected by the central bank enabled Goldman's currency and commodity market numbers to hit a record high.Nevertheless, we are only halfway through the year and analysts expect to see a fall in trading revenue in the second half. According to Goldman's CEO, David Solomon, the earnings are a testament to the company's diverse business model and although trading revenue has slowed down, it still remains at a "heightened level of activity." JP Morgan (JPM)Source: Bjorn Bakstad / Shutterstock.com Although the pandemic weighed heavily on the bank stocks, JP Morgan was able to put up some surprising results in this period. The company shattered analyst expectations with a high trading revenue that was aided by strong market volatility.According to a report by CNBC, JP Morgan posted earnings for this period at $1.38 per share, which was higher than the estimated $1.04 as per analyst estimates. As for revenue, the company earned an adjusted revenue of $33 billion in comparison to the expected $30.3 billion. The numbers provide a healthy cushion for the bank to sustain its dividends.JP Morgan's strong bottom line comes from its high trading revenue, which was up 79% in a year-over-year comparison. The bank also boasts a strong loss-absorbing capability thanks to a large credit reserve. According to its CEO, Jamie Dimon, JP Morgan has a liquidity of $1.5 trillion and $34 billion in credit reserves.However, the earnings call did have its low points. JP Morgan reported a loss of $176 million in its retail banking division which was significantly lower than the $4.6 billion profit last quarter. However, the bank's $8.9 billion set aside for its corona-induced troubles helped offset some of these losses.But despite the better-than-expected numbers, Dimon urged caution about the bank's future. He stated that the myriad of uncertainties that exist in the second half of the year could set back optimistic returns this period. This skepticism comes after governments have reversed the course of reopening in many states. * 7 Cybersecurity Stocks Perfect for Securing Your Portfolio Nevertheless, Dimon is optimistic that JP Morgan's "fortress balance sheet" is prepared to overcome what may come its way. In the coming months, investors can expect to see greater swings in this stock as the future of the banking sector is driven by the progression of the pandemic — for better or for worse. Citigroup (C)Source: TungCheung / Shutterstock.com Another bank stocks earnings call that came as a pleasant surprise and beat estimates is Citigroup. Like JP Morgan, the bank's earnings were also aided by its fixed-income trading revenue. However, it did sustain losses in some divisions.According to Business Insider, the company reported a net income of $1.3 billion for the earnings period which was 73% lower in a year over year comparison. However, the EPS was 50 cents, which was higher than the expected 38 cents per share. Revenue was also higher, at $19.8 billion, which beat the forecasted $19.2 billion.Citigroup's revenue surge comes after the sharp volatility in the markets as a result of the pandemic. The bank also received a fiscal stimulus from the government that helped soften the blow of its losses. The revenue from fixed income markets was 68% higher while investment banking revenue saw a spike of 37%.However, the company's earnings weren't entirely rosy. Citigroup suffered a credit crisis that hurt its numbers. One of the biggest divisions that was hurt as a result of the pandemic was consumer banking as customers defaulted on loans and credit card payments. This problem was reflected in Citigroup's numbers.The bank's total allowance for credit losses (ACL) for the period was a whopping $26.4 billion, well more than just $12.5 billion in the year-ago quarter. The ACL is the amount of money the bank puts aside for debts that it is unlikely to recover. The increased allowance rate comes as a result of customers' inability to repay loans. Total net credit losses were 12% higher compared to the previous year.Despite the high credit costs, the company's CEO, Michael Corbat, is confident of Citigroup's strength to weather the Covid-19 storm. Moving forward, the company will focus its efforts on risk management in order to prepare for the future. The pandemic has created an onslaught of uncertainty for most major banks but Citigroup has emerged relatively unscathed.While the future of the company is still up in the air, Citigroup's current earnings has restored a sliver of confidence in investors. This bank stock is definitely worth a second look.Divya Premkumar has a finance degree from the University of Houston, Texas. She is a financial writer and analyst who has written stories on various financial topics from investing to personal finance. Divya has been writing for Investor Place since 2020. As of this writing, Divya Premkumar did not own any of the aforementioned stocks. 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 These 3 Bank Stocks Are Still Worth a Look appeared first on InvestorPlace.

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I have to admit, there's something to be said for Luckin Coffee (OTCMKTS:LKNCY). The company has had an accounting scandal involving millions of fraudulent transactions. That scandal caused the removal of its CEO. As a bonus, Luckin stock dropped so low it was delisted.Source: Keitma / Shutterstock.com And yet, like a phoenix rising from the ashes, Luckin stock continues to draw the attention of traders. Since beginning to trade again in May, shares have more than doubled and been more than cut in half. My InvestorPlace colleague, Mark Hake, makes a reasonable case that shares of Luckin stock may be priced just about right.But then again, Hake acknowledges his back of the envelope math is not based on full information. At the time of this writing, the company has not yet offered a date for the release of its earnings. And that should give investors a bit of concern. Because right now, it doesn't look like much has changed for Luckin.InvestorPlace – Stock Market News, Stock Advice & Trading Tips The New CEO Is…the Old CEO?To move on from its accounting scandal, Luckin needs to avoid even the appearance of impropriety, right? Maybe not. * 15 Growth Stocks That Are Being Propped Up By Low Rates In June, Haode Investments called a meeting for July 5. The purpose of the meeting was to vote off Chairman Charles Lu and three other Luckin board members. Haode Investments holds Luckin shares that Lu owns. So why would Lu allow a meeting to be called so he could be voted out?Lu has repeatedly denied involvement in the scandal. However, he reportedly refused to hand over his laptop and phone as part of the company's internal investigation. So it has to raise eyebrows that as part of the July 5 purge, the head of the internal investigation was also voted off the board.And Lu has apparently replaced the other two board members with his hand-picked representatives. Which means it's likely that Lu is still calling the shots from behind the scenes. China Is Not a Coffee CultureI've made this argument in a previous article about Luckin. The bullish argument is that young people love technology. China has a gigantic market of youths. The company has a "grab and go" model that allows customers to order via the app and then pick up their coffee at one of the over 6,000 stores the company operates throughout China.It's a sound model that has caught the attention of Starbucks (NASDAQ:SBUX). The coffee giant is taking some cues from Luckin in trying to compete with Luckin's lower priced offering.But there's a reason there's an idiom about "all the tea in China." China has an established, deeply rooted tea culture. Coffee? Not so much.I wrote about this cultural barrier in June:According to research from the University of Southern California, per capita coffee consumption in China is just five cups a year. That's not a misprint. In the U.S., per capita is 400 cups a year. And in some European countries that number can exceed 1,000 cups a year.I have had concerns about Nio (NYSE:NIO) investors in the past for a different logic problem.The narrative was that electric cars were popular in China. Therefore, Nio as a Chinese company would be a great investment. And while it's true that Nio has made strides, for a time they were in danger of running out of cash.But the point of that example is that Nio is leaning into an established market that has a high cost of entry to keep out competitors. Luckin is trying to compete in a market that even Starbucks is finding challenging because of the expanding competition.In short, there are a lot of companies chasing a group of customers that may be smaller than it seems. Luckin Stock Has a Lot to ProveRight now, it's probably fashionable to be negative about Chinese stocks. Luckin may turn out to be a success story. But I have concerns. Right now, despite an opportunity for a new lease on life, Luckin appears to be simply making cosmetic changes.Until I see some actual sales figures from the company, Luckin remains a hard pass for me.Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019. As of this writing, Chris Markoch 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 Only the Names Have Changed for Luckin Coffee appeared first on InvestorPlace.

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Mark Fleming, First American Chief Economist joins the On the Move panel to discuss
to discuss the impact of COVID-19 on the housing market.

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We know that hedge funds generate strong, risk-adjusted returns over the long run, which is why imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, professional investors have to conduct complex analyses, spend many resources and use tools that are not […]

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As I write this on July 15, Southwest (NYSE:LUV) is having an excellent day on the markets with LUV stock up more than 8% on the day and just a little more than 60 minutes of trading until the 4 p.m. bell. Source: Carlos E. Santa Maria / Shutterstock.com The $2.81 move by Southwest puts it near its one-month high, a sign that its stock might be coming back to life. However, before you jump in, you might want to consider a couple of points that don't work in its favor. Donald Trump might like the novel coronavirus to magically disappear, but as anyone who's studied science knows, the data doesn't lie. The pandemic could be here in the U.S. well into 2021. InvestorPlace – Stock Market News, Stock Advice & Trading TipsDr. Robert Redfield, head of the U.S. Centers for Disease Control and Prevention, spoke at a July 14 webinar for the Journal of the American Medical Association, suggesting that the fall and winter could be the country's worst public health crisis in its history. "I do think the fall and the winter of 2020 and 2021 are going to be probably one of the most difficult times we've experienced in American public health because of … the co-occurrence of COVID and influenza," Redfield said in the webinar. * 15 Growth Stocks That Are Being Propped Up By Low Rates "Keeping the health care system from being overstretched, I think, is really going to be important. And the degree that we're able to do that, I think, will define how well we get through the fall and winter."Redfield makes it very clear that if people wear masks 100% of the time, they're outside their home bubble, the country will have a much better time coping. For Southwest's sake, and that of its fellow airlines, mask-wearing is essential to a return to anywhere near the number of flights it had a year ago. A Closer Look at LUV StockUnfortunately, I have almost no confidence in North Americans (yes, that includes Canada and Mexico) being conscientious enough to heed the call. And so, more people will die unnecessarily, and Southwest's revenues will go back into the toilet. Covid-19 is winning the battle in a landslide. The Motley Fool's Adam Levine-Weinberg does a good job highlighting why the improvements in air travel experienced between Memorial Day weekend and the July 4 holiday weekend are likely to be all for nothing. "[S]everal cities and states are requiring 14-day quarantines for anyone arriving from COVID-19 hotspots. The list of hotspots on the tri-state quarantine list for New York, New Jersey, and Connecticut has grown to encompass 22 states, accounting for more than half of the U.S. population," Levine-Weinberg wrote July 15. Right now, according to the Transportation Security Administration (TSA), the number of people it is screening per day appears to have plateaued at 25% of last year's figures. With Florida setting daily records of new cases, that number is likely to revisit 10% where it was in April. Luckily for Southwest, it has a relatively healthy balance sheet compared to its largest rivals, which means it ought to be able to ride out any downturn over the next few months and into 2021. The bad news, as Levine-Weinberg points out, is that a chunk of Southwest employees are going to get tossed to the curb come October when the restrictions on layoffs imposed as part of the airline bailout come to an end. It's impossible to know how many employees will be furloughed or laid off. However, because these employees must be given 60 days' notice, investors will start getting a better idea come August. Barring a miraculous disappearance of Covid-19 — something nobody anticipates except for President Trump — the numbers are going to be in the thousands. As of the end of 2019, Southwest had 60,800 employees. A 10% cut, which is not at all unthinkable, would be more than 6,000 people losing their jobs. Like the coronavirus itself, the reality is far worse than anyone could have possibly imagined. The Bottom Line on Southwest Airlines StockAs I stated July 14, if you're going to bet on Southwest — I wouldn't — hedge your bet by putting 50% of that bet into the U.S. Global Jets ETF (NYSEARCA:JETS). It will soften the blow should the U.S. return to a full lockdown scenario. With every passing hour, it's looking more and more likely. Will Ashworth has written about investments full-time since 2008. Publications where he's appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth 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 Now Might Not Be the Greatest Time in the World to Buy Southwest Stock appeared first on InvestorPlace.

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* This weekend's Barron's cover story presents the publication's latest annual ranking of the best annuities. * Other featured articles look at dividend aristocrats roaring back, the political considerations for vaccine makers and retail stocks bucking the trend. * Also: the prospects for index providers, an internet holding company a big bank and more.Cover story "The Best Annuities" by Karen Hube presents a look at the best of what the industry has to offer. For its latest annual ranking, Barron's compiled 100 of the best annuities based on assumptions such as age, gender, size of investment and time horizon.Darren Fonda's "Why MSCI and S&P Global Are Worth Buying at Any Price" points out that investors have rewarded the index providers' growth and could lift MSCI Inc (NYSE: MSCI) and S&P Global Inc (NYSE: SPGI) stocks further as profits climb.In "Dollar Stores Are a Retail Growth Story Even in a Downturn," Teresa Rivas shows why Dollar General Corp. (NYSE: DG) and the like are resilient while many other retailers are struggling. Could there be further upside in these stocks?What effect could the launch of a COVID-19 vaccine before Election Day have? That's what "The Vaccine Race Might Have Political Side Effects" by Josh Nathan-Kazis looks at — and what might it mean for Moderna Inc (NASDAQ: MRNA), Pfizer Inc. (NYSE: PFE) and others in the race.In Eric J. Savitz's "IAC Has Cash, Looks Cheap, and Is Shopping for Deals," see what New York-based internet holding company IAC (NASDAQ: IAC) looks like following the spin-off of the dating site Match.com. Is it a whole new company?See also: 5 Worst-Performing Stocks Of 2010: Where Are They Now?"Dividend Aristocrats Roar Back After Early-Year Stumbles. These 10 Recently Raised Their Payouts" by Lawrence C. Strauss takes a look at what dividend hikes from the likes of Cardinal Health Inc (NYSE: CAH) and Clorox Co (NYSE: CLX) may signal.Might it be time to consider the worst-performing of the big banks this year? So asks Carleton English's "Wells Fargo Stock Has Been Beaten Down. It Could Be a Buy." See how Wells Fargo & Co (NYSE: WFC) compares to its peers.In "9 Cheap Retail Stocks With High Expectations for Earnings," Teresa Rivas shows why, despite plenty of suffering in the retail sector, there are brick-and-mortar winners like Kroger Co (NYSE: KR) and Lowe's Companies Inc (NYSE: LOW).Also in this week's Barron's: * The market gatekeepers that wield enormous power * The annual ranking of the top 100 women advisors * Whether gold will overtake Treasuries in the global hedging battle * What to expect from the next stimulus bill * Why M&A has taken a backseat for activist investorsAt the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Bulls And Bears Of The Week: Apple, Facebook, Tesla And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will…

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