Santa Clara, California-based Advanced Micro Devices (NASDAQ:AMD) is expected to report second-quarter earnings on July 28 after the close of market. Year-to-date, AMD stock is up nearly 34% — which technically means it is in a bull market. By comparison, the widely followed iShares PHLX Semiconductor ETF (NASDAQ:SOXX) is up about 14%.Source: Sundry Photography / Shutterstock.com Although chip stock like AMD were among those shares that sold off rapidly in the novel coronavirus triggered selloff during February and March, most chip stocks have had a remarkable comeback since hitting 52-week lows in late March. In fact, on March 18, AMD shares hit a 2020-low of $36.75. Now, they are around $61. Put another way, they are up an eye-popping 58%. If you were enough to invest $1,000 in the company then, you'd now have about $1,600.Today, I'd like to take a closer look at the outlook for the company for the rest of the year. We're in the midst of a busy earnings season. Many semiconductor stocks will report earnings in the coming weeks. Weaknesses in their fundamental metrics or even a potential warning by one of the large-caps for future quarters could affect the overall industry. However, in the long-run, I remain bullish on the future of the semiconductor industry and AMD shares.InvestorPlace – Stock Market News, Stock Advice & Trading TipsTherefore, investors should regard any dip in price as an opportunity to buy AMD stock. And here's why. Semiconductor Industry Is ImportantSemiconductors are the brains inside electronic devices. Chips are used in a wide range of products in computing, telecommunications, gaming, transportation, military systems and healthcare. They are typically behind technology innovation, and as a result, shares of semiconductor companies usually act as a bellwether for the technology sector as a whole. * 10 Cybersecurity Stocks We Need Now More Than Ever In turn, InvestorPlace readers are likely to be familiar with how the semiconductor industry is cyclical. During periods of high demand, upturns occur. There may also be supply shortages, which lead to higher prices and revenue growth. Thus, profits of chip companies may ebb and flow dramatically. It's never easy to know whether the downside of a given cycle might take longer than previously expected.At present, the current health and economic environments in the U.S. and globally present an array of uncertainty. For most semiconductor companies, China is both a consumer and a supplier. China consumes more than 50% of all semiconductors made worldwide. Furthermore, many U.S. technology companies either have manufacturing plants in China or use Chinese companies in their supply chains. Therefore, outlook form both the U.S. and China will be important in the rest of the year.Yet, in the coming years, new frontiers in technology — such as the internet of things (IoT), artificial intelligence (AI), autonomous driving, and 5G — will likely turbocharge many semiconductor shares, including AMD stock.That said, the company's two main competitors are Intel (NASDAQ:INTC) and Nvidia (NASDAQ:NVDA). Therefore, potential shareholders may also want to pay attention to these two stocks. What to Expect from Q2 EarningsAdvanced Micro Devices was founded in 1969 as a Silicon Valley startup focusing on leading-edge semiconductor products. Today, it has grown into a global chip company with a focus on developing high-performance computing and visualization products. It is also number 460 on the Fortune 500 company list.In late April, the company released Q1 results. It had revenue of $1.79 billion, operating income of $177 million and net income of $162 million. Moreover, diluted earnings per share came at 14 cents compared to diluted earnings per share of 1 cent year-over-year and 15 cents in the prior quarter. Finally, gross margin was 46% — up 5 percentage points YOY and 1 percentage point quarter-over-quarter, primarily driven by Ryzen and EPYC processor sales.The company reports in two segments: * Computing and Graphics (revenue was $1.44 billion, up 73% YOY and down 13% quarter-over-quarter); * Enterprise, Embedded and Semi-Custom (revenue was $348 million, down 21% YOY and 25% sequentially).In total, Q1 revenue was 40% YOY primarily driven by higher Computing and Graphics segment revenue. Yet, revenue was down 16% quarter-over-quarter due to lower revenue in both segments.That said, CEO Dr. Lisa Su had this to say about the company's performance:"We executed well in the first quarter, navigating the challenging environment to deliver 40 percent year-over-year revenue growth and significant gross margin expansion driven by our Ryzen and EPYC processors. While we expect some uncertainty in the near term demand environment, our financial foundation is solid and our strong product portfolio positions us well across a diverse set of resilient end markets…. Our strategy and long-term growth plans are unchanged."So when Advanced Micro Devices reports next week, the Street would like to see strong revenue numbers. It'd also like to get a better feel for the outlook in the rest of the year. The Bottom Line on AMD StockWe are entering a busy earnings season. As a result, and given the recent stellar increase in the prices of many semiconductor stocks, there may likely be short-term volatility and profit-taking in the sector.However, long-term investors can regard any dip in AMD stock, especially toward the $50-level, as a good opportunity to buy into the shares. Its 52-week price range has been $27.43-$59.27.During the bull run of the past decade, semiconductor stocks have been essential drivers of the broader technology sector's upside. I believe a similar story will likely unfold in this decade, too.And in 2-3 years, I expect AMD stock to reach $100.Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. As of this writing, Tezcan Gecgil 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 Why Advanced Micro Devices Stock Belongs in Long-Term Portfolios appeared first on InvestorPlace.

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Heritage Capital President and CIO Paul Schatz joins Yahoo Finance’s Akiko Fujita to break down the latest market action as tensions between the U.S. and China grow.

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(Bloomberg Opinion) — Oil’s recovery is being hit from both sides. Benchmark Brent crude prices have risen by 128% from their April low, remaining above $40 a barrel since the middle of June. But rising supply and faltering demand bode ill for those who want oil prices to keep climbing.The OPEC+ group of oil producers, who have implemented unprecedented output cuts since May, will soon begin to relax their restraint, adding more crude to a market that is also seeing the first signs of recovery in North American production.The group of 23 oil producing countries, led by Saudi Arabia and Russia, confirmed they would reduce the size of their output cuts to 7.7 million barrels a day from the start of August, which would add almost 2 million barrels to daily production levels. Some of that increase should be offset by deeper reductions from members who failed to cut what they promised in May and June, as long as they deliver on their promises this time.Most of this extra OPEC+ crude won’t reach the global market, according to Saudi Energy Minister Prince Abdulaziz bin Salman. Instead, it will be used to meet a seasonal spike in domestic demand for electricity to run air conditioners, as fewer citizens travel to Europe to avoid the scorching temperatures across the Arabian Peninsula.But that’s not the only source of rising crude supply. North American production is also starting to recover from the depths of the Covid-19 pandemic. Last week’s data from the Energy Information Administration showed the first week-on-week increase in U.S. crude production since March (after correcting for the impact of Tropical Storm Cristobal, which tore through the Gulf of Mexico in June and briefly took out more then half a million barrels a day of production). Shale fracking crews have been getting back to work too, bringing new wells into production while reactivating bores that were idled during the pandemic. The number of wells fracked in July is expected to show its first monthly gain this year, according to industry consultants Rystad Energy.Canadian oil sands companies are also slowly ramping up output as local refinery demand recovers, although they lag far behind their southern neighbors. But it’s not just rising supply that will put pressure on crude prices. The hoped-for recovery in oil demand is running into trouble as well.After a record purchasing spree in April, when crude prices were at rock bottom, China’s oil buying has eased off. The amount of oil held in storage tanks in Shandong province, home to the country’s independent refiners, has risen by 28% since mid-May and is close to hitting a five-month high. And there is still a huge backlog of vessels waiting off the coast to discharge their cargoes. Some have been there for two months.Meanwhile, processing rates at China’s independent refineries started to ease from record levels in mid-June. And massive floods across the country may reduce its demand for gasoline and oil by as much as 5%, according to consultants Facts Global Energy, although the disruption should be short-lived.In the U.S., the crucial summer driving season is shaping up to be a miserable one as far as fuel consumption is concerned. The recovery in gasoline demand stalled shortly after the Memorial Day holiday. Now vacation states, like Florida and California, are seeing a surge in Covid-19 cases, with record numbers of daily infections and rising death tolls. That’s limiting travel and hitting demand for both gasoline and jet fuel.Data from TomTom Traffic Index show that street congestion in cities like Miami, Los Angeles and Houston is still less than 40% of pre-pandemic levels — good news for drivers, bad news for gas stations. Only in northern cities, like New York and Chicago, are traffic levels picking up again.In European cities, congestion has plateaued, or even fallen again after climbing when lockdowns were eased. Some of that may reflect people leaving the cities to take holidays, as congestion has remained higher in coastal cities like Nice in the south of France.In Asia, which is generally seen as recovering much more strongly than other parts of the world, the rise in traffic congestion is patchy, to say the least. Second-tier cities, like Shenzhen in the chart below, are seeing busy streets. But in Beijing, Singapore, Mumbai and Manila, traffic delays are still only around 40% of pre-pandemic levels, suggesting there are far fewer vehicles on the roads.The recovery in air travel has also come to a halt. The number of commercial flights has plateaued at little more than 50% of levels seen at the start of the year, according to figures from Flightradar24.All of these figures paint a picture of crude being squeezed between rising supply and a stagnating demand recovery. That’s going to make the oil bulls uncomfortable, since the next major move in prices looks more likely to be down than up.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Julian Lee is an oil strategist for Bloomberg. Previously he worked as a senior analyst at the Centre for Global Energy Studies.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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As I discussed earlier this month, it's hard to tell what's next for Nio (NYSE:NIO) and Nio stock. On the bull side, things may be just getting warmed up. After beating Wall Street's quarterly delivery forecast, it's clear this Chinese electric vehicle (EV) name could become a formidable player in its home market. Even as rivals like Tesla (NASDAQ:TSLA) have gained massive market share in China.Source: Sundry Photography / Shutterstock.com On the bear side, you can argue it's momentum, FOMO, and other non-fundamental factors driving Nio shares right now. With Tesla's recent success, investors have piled into any stock associated with EVs. Not only this stock, but names like Nikola (NASDAQ:NKLA) and Plug Power (NASDAQ:PLUG) as well.But, all have pulled back from their recent highs. If the "Tesla factor" diminishes, and investors take profit, shares in the non-Tesla EV names could take a breather in the near term. In other words, going short is starting to look tempting.InvestorPlace – Stock Market News, Stock Advice & Trading TipsEven so, betting against the major EV names remains a high-risk move. Even as each of them trades at a more-than-frothy valuation.Why? If and when ebullience for Tesla does a 180, expect big declines across the board for electric vehicle stocks. But, in the meantime, the "EV story" (that electric vehicle makers are fast making legacy car makers irrelevant) still holds. In other words, this "too hot to touch" EV stock could not only bounce back to recent highs, but head even higher. Cracks in the Bull Case for Nio StockWith EV stocks surging earlier this month, you'd think that the Chinese EV market is red hot right now. But, based on a recent article in the Wall Street Journal, this isn't exactly the case. According to WSJ, "new-energy vehicle" (which includes hybrids) sales fell 33% in June. * 10 Cybersecurity Stocks We Need Now More Than EverGranted, the premium market (where Tesla and Nio operate) saw gains. But, with not just Tesla, but legacy car makers like BMW (OTCMKTS:BMWYY) entering the scene, the company has its work cut out for them.In short, unless Chinese EV demand rapidly catches up, it's hard to say whether Nio stock can grow to their valuation. And, if results in the coming quarters fall short of expectations, shares of the company could fast fall back to the single-digits.With this in mind, there's good reason why most analyst price targets remain far below where shares trade today. Yet, while there's potential for shares to fall back from today's prices to prior price levels (under $5 per share), the short case for Nio stock is no slam-dunk. Despite Rich Multiple, Shares May Be Reasonably PricedWith the company still largely in the development stage, it's a tough stock to value. Traditional valuation metrics, like price-to-sales and price-earnings may not be relevant. It's tomorrow's potential, not today's results, that people are buying when they enter a position in Nio stock.So, what could Nio be worth down the road? Recently, InvestorPlace Markets Analyst Luke Lango ran the numbers. Based on his calculations, Lango estimates the company could be generating $1.50 per share in earnings by 2030. Assigning shares a market-average multiple, and discounting back to 2020, he estimates shares to be worth around $12.25 per share at present.In short, the stock today isn't overvalued, or undervalued, but accurately priced given its upside potential. So, what's the trade then?Depends on how you look at it. If you are bullish on Nio stock, waiting for shares to pull back, then buying (Lango's recommendation) may be the way to go.If you're bearish, you could make quick profits entering a short position at today's prices. As Robinhood traders and other speculators take profit, shares could fall back to $5 per share as the "EV bubble" takes a breather.Yet, there's no guarantee going short today will pay off. As seen over the last few months it's the story, not valuation or fundamentals, driving Nio stock. And the next page has yet to be written. Bottom Line for Nio StockIt's safe to say EV stocks are in the midst of a bubble. And, while some shrewd traders may be able to make quick gains shorting at today's valuation, covering at lower prices as EV exuberance cools, this name in particular isn't the strongest short opportunity.Granted, you can make a pretty strong bear case for Nio shares. As this commentator wrote back in May, the company's partnership with a Chinese municipality may mean the stock's underlying value is could be as little as $1.30 per share.But, given the recent strong results coming out of Tesla, the EV bubble could continue. So, what's the verdict? Nio stock could head lower short term, but it's still too risky to go short.Thomas Niel, contributor to InvestorPlace, has written single-stock analysis since 2016. As of this writing, Thomas Niel 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 Nio Could Head Lower, But Be Careful Going Short appeared first on InvestorPlace.

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Artificial intelligence (AI) is a buzzword in tech these days. The term, which encompasses a range of technologies including machine learning and data analysis. The goal is to create systems that can perceive, learn, and reason in ways that mimic human capabilities. At its best, AI will allow machines to understand the gestalt of a situation and react accordingly, a capability that humans take for granted – but has tended to elude computer systems, which in their turn excel at analyzing minute details.A wide range of tech companies are working on AI systems; artificial intelligence holds the promise of real-time data analysis and situation monitoring, with the machines capable of handling routine decisions. While it hasn’t been achieved yet, the outlines of success are visible on the horizon.Every smart investor knows to keep his eyes on the horizon; that is, to plan every investment with long-range intentions. Just how long is up to the individual, but most investors agree that a move isn’t long-term unless it’s held for more than one year. Warren Buffett has famously said, “If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.”With this in mind, we used TipRanks' database to identify three AI stocks that have been highlighted by some of Wall Street’s best tech sector analysts. These are analysts with 5-star ratings, standing above their peers in accuracy and average returns – and they’ve tapped Artificial Intelligence as a tech segment for the long run. Veritone, Inc. (VERI)We’ll start with Veritone. This media tech company offers a cloud-based operating system for AI that uses machine learning to turn data into useful intelligence. The software allows users to process audio and video in real time, enhance analytics and research apps, reduce content review times, and streamline time spent on ‘low-value, high-effort’ tasks.The value of the product to the customers can be seen in the quarterly earnings trends and the share appreciation. The last six months – covering the worst of the global pandemic and economic recessionary pressures – have seen VERI’s earnings steadily improve and the share price rise to its best level in over two years. Earlier this month, Veritone showed its confidence by adjusting its Q2 revenue guidance upwards. The guidance, of $13.1 to $13.3 million, is well above the previous upper guide of $12.2 million.The share price has tracked the gains in revenue and earnings. The stock has more than doubled since the February/March market collapse, rising from $3.03 to $10.83 now. Patrick Walravens, writing from JMP Securities, was impressed by Veritone’s new revenue guidance, and reiterated his Buy rating on the stock. In his comments, he said, “Veritone seems to be gaining traction in its Government, Legal, and Compliance verticals as it experienced record bookings in the quarter… we believe the company is moving its cost structure in the right direction with recent cost-reduction initiatives and upgrades…”With his $17 price target, Walravens shows his own confidence that VERI will see 57% growth in the year ahead. (To watch Walravens’ track record, click here)Overall, VERI’s Moderate Buy analyst consensus rating is based on 4 Buys and just a single Sell. The stock’s current price is $11.80, and the average price target $16.25 suggests it has a 50% upside potential. Note that even the low-ball target estimate, of $15, is well above the current price. (See Veritone stock analysis on TipRanks)ZoomInfo Technologies (ZI)Next up is ZoomInfo, a marketing tech company. ZI offers the usual features and services that customers expect in digital marketing intelligence, including account management, data management, demand generation, and lead prospecting. The company’s AI cloud software is specifically designed to improve efficiency in these tasks, letting sellers get to the business of selling.ZoomInfo is a newly public company, having held its IPO just this past June. The opening was a success, with share prices almost doubling on the first day and nearly tripling in the first few trading sessions. Even now, after nearly two months during which the initial excitement waned and the glow came off the rose, the stock is still trading 88% above its initial price of $21.The strong IPO prompted SunTrust Robinson analyst Terry Tillman – who is rated in the top 10 of the TipRanks analyst database – to initiate coverage of the stock with a Buy rating. Tillman wrote of ZoomInfo, “We believe ZoomInfo represents a rare combination of strong top-line growth and best-in-class profitability. Its go-to-market (GTM) sales intelligence platform drives positive outcomes for B2B sales and marketing organizations – increasing leads, customers and revenue. Premium valuation justified owing to accelerating demand for GTM intelligence and company-specific drivers leading to significant revenue and profit upside.”Tillman’s Buy rating comes with a $60 price target, implying an impressive 51% upside potential. (To watch Tillman’s track record, click here)ZoomInfo holds a Moderate Buy rating from the analyst consensus. This is based on 16 reviews, including 7 Buys and 9 Holds. The stock’s $55.07 average price target suggests it has room for 32% growth from the $41.66 trading price this year. (See ZoomInfo stock analysis on TipRanks)CareDx (CDNA)Last on today’s list is a tech company in the health care sector. CareDx develops and delivers diagnostic surveillance systems for heart transplant patients. The company’s AI-powered software monitors patient progress in real time, allowing both the patient and the doctors to respond to any rapidly changing health issues in time to ensure a more successful outcome. The result is a novel development in long-term care.While CareDx’s products were originally designed to monitor heart transplants, the company has expanded. Its products now monitor most human organ transplants – including kidneys, an important niche, as the first successful organ transplant was conducted with a kidney, and this procedure is still among the most common of transplants. CareDx also has cloud-based AI systems to monitor lab results, and to connect digital implants with remote monitors.The company’s earnings have proven mostly immune to recent economic instability, as medical transplant patients and doctors cannot simply stop using the monitoring systems. And with a firm user base, the stock recovered well from the late-winter market crash. CDNA is up over 130% since bottoming out in March.Covering the stock for Piper Sandler, analyst Steven Mah wrote, “We believe CareDx has the broadest transplant care platform in the industry and we remain confident that it is well-positioned to protect and extend its first-mover advantage in both pre- and post-transplant patient management to drive long-term growth. In addition, we are encouraged by the resiliency of its essential tests and ability to operate in a COVID-19 environment.”Mah gives CDNA a Buy rating, along with a $54 price target that implies an upside of 66% for the next 12 months. (To watch Mah’s track record, click here)All in all, with 4 recent reviews on record, all Buys, CareDx has a unanimous Strong Buy rating from the analyst consensus. The stock is currently selling for $32.59, and the average price target, at $42.75, suggests a one-year upside of 31%. (See CareDx stock-price forecast on TipRanks)To find good ideas for tech 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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Entegris held gains nicely on a tough overall for several chip-equipment firms.

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[Editor's note: "8 Dividend Aristocrat Stocks to Buy Now" was previously published in June 2020. It has since been updated to include the most relevant information available.]After the big shock in March, many investors are still looking for defensive stocks to buy now. Of course, in the most extreme example, you can elect to go all into cash. However, history has proven that to be the worst thing to do. Instead, this is a good time to consider dividend aristocrats.First, market uncertainty incentivizes stable dividend stocks to buy now. How so? Passive-income generating companies typically perform better than high-flying growth names during bearish phases.InvestorPlace – Stock Market News, Stock Advice & Trading TipsFor one thing, investors can still collect their payouts even if their portfolio isn't doing too well. Moreover, organizations that have a history of consistent payouts tend to be levered toward secular or otherwise steady industries. * 10 Cybersecurity Stocks We Need Now More Than Ever And there's no better paragon of stability than dividend aristocrats. For those who are unfamiliar with the term, dividend aristocrats have three main requirements: they must be equities traded in the S&P 500, have 25 years-plus of dividend increases and meet size/liquidity benchmarks.However, a word of caution. Just because you put dividend aristocrats in your list of stocks to buy now doesn't guarantee a smooth ride. If the markets turn volatile, you can expect virtually all names to incur red ink.But the major selling point is magnitude. With dividend aristocrats, you're limiting your potential losses due to the robustness of the target company. Better yet, the volatility provides a rare discount for these stalwarts of industry.So with that in mind, here are eight stocks to buy now with a long track record of payouts: Stocks to Buy: McDonald's (MCD)Source: Shutterstock Dividend Yield: 2.53%I'm going to start my list of stocks to buy now with a name I was wrong about: McDonald's (NYSE:MCD). One of the reasons why I didn't like MCD stock was that the Golden Arches apparently wasn't winning over millennials. But recently, I started eating out at McDonald's, and I discovered that the real fundamentals don't match the "paper" data.For instance, the McDonald's app is incredibly convenient. You order what you want on your phone and go up to the counter or the drive-thru. Very quickly, their employees deliver your selected items. And let's talk about the drive-thru: it's lightning-quick, even with rows of waiting cars. That's a major plus for MCD stock.Finally, McDonald's is a proud member of the dividend aristocrats. It has increased its payout consistently over a 43-year period. If a downturn were to impact the markets, MCD stock is a name you'll want to own. Colgate-Palmolive (CL)Source: Shutterstock Dividend Yield: 2.37%When you're on the hunt for stable stocks to buy now, you don't want to get too cute. Instead, you'll want to go with a proven name like Colgate-Palmolive (NYSE:CL).The investment thesis for CL stock is straightforward and simple.Even in times of recession, people still need to brush their teeth. Thus, I expect a steady revenue stream no matter what happens in the coming months and years. * These 7 Robinhood Stocks Have the Legs for Future Gains I believe CL stock will give you excellent protection over the coming months. Keep in mind that Colgate-Palmolive has increased its dividends for 55 years. That's an impressive feat, even compared to other dividend aristocrats.Further, it's a status that management won't give up without a fight. Cardinal Health (CAH)Source: Shutterstock Dividend Yield: 3.44%In recent years, the healthcare sector has suffered a black eye from a public relations standpoint. Thus, it's no surprise that many companies in this segment have faltered.However, I'd consider putting Cardinal Health (NYSE:CAH) on your list of stocks to buy now. Unlike other players in this broad category, CAH stock is strongly levered to secular demand.In other words, Cardinal Health has a wide range of professional medical products. They run the gamut from anesthesia-related equipment to laboratory products down to something as mundane as gloves.While medical technology is always improving, some things will always remain the same. For these everyday concerns in the medical field, Cardinal Health has folks covered. Ultimately, that's a great catalyst for CAH stock.Another factor is that the company very much belongs on the list of dividend aristocrats. While the exact number of dividend increases causes some disagreement, CAH is included in the Proshares S&P 500 Dividend Aristocrats ETF (BATS:NOBL). And whatever the case, it has reliably raised dividends for at least the last 14 years. Aflac (AFL)Source: Shutterstock Dividend Yield: 3.03%Simply put, Aflac (NYSE:AFL) is a great company with an incredibly relevant service. As you no doubt have learned through their quirky commercials, Aflac specializes in supplemental insurance.Essentially, its range of products protects you financially from incidents that "regular" insurance doesn't cover or cover adequately. Plus, their solutions represent an incremental cost for much peace of mind, bolstering the case for AFL stock.And while most millennials probably think they're invincible, many will encounter situations that give them a reality check. * 7 Micro-Cap Stocks You May Want to Take a Chance On Additionally, they may hear horror stories about how coverage gaps financially ruined one of their peers. Whatever the case, Aflac, and by logical deduction, AFL stock, has opportunities to rise through word of mouth.Finally, Aflac is one of the most stable stocks to buy now among dividend aristocrats. Kimberly-Clark (KMB)Source: Shutterstock Dividend Yield: 2.91%I don't always prepare for recessions. But when I do, I take a long look at Kimberly-Clark (NYSE:KMB).If you're concerned about a prolonged downturn in the U.S. or global economy, you'll also want to consider KMB stock. As with Colgate-Palmolive, the bullish argument here is very simple: even in recessions, people need to use the bathroom.And without getting graphic, people also need to take care of themselves after a lengthy session with the porcelain throne. Kimberly-Clark offers some of the best products for this endeavor, and I speak from personal experience. Moreover, the company has other family-care products. If you think about it, KMB stock is truly a cradle-to-grave investment.Kimberly-Clark has traded among dividend aristocrats for 46 years. That makes its shares one of the stocks to buy now in my book. Chevron (CVX)Source: Shutterstock Dividend Yield: 5.67%With the U.S. and China trading barbs and sanctions, it's no surprise that oil companies like Chevron (NYSE:CVX) fell.On surface level, CVX stock currently faces two major headwinds. First, global volatility means lower demand overall for energy. Second, the push for clean and renewable energies makes CVX stock appear antiquated, and perhaps soon approaching irrelevancy.Admittedly, the first point is going to be a major distraction for Chevron. However, even in the middle of a recession, people still require transportation. Thus, I don't see demand falling completely off the cliff. * The 7 Best Cheap Stocks Under $10 Right Now On the second point, I believe green energy is more a gimmick than a practical reality. Our infrastructure is simply not ready to accommodate innovations like electric vehicles on a mass scale.Granted, CVX stock is a risky play among this list of stocks to buy now. That said, the trade war dynamic should drive shares to an attractive discount. At that point, I think Chevron becomes a bargain because the world still needs fossil-fuel-based energy. AT&T (T)Source: Shutterstock Dividend Yield: 6.96%With AT&T (NYSE:T), we're really getting into the riskier side of the dividend stocks to buy now. I say this for a couple of reasons.One, with a yield of 6.38%, sustainability becomes a concern. Second, and a perfect segue, the dividend payout ratio for T stock is on-paper astronomical. Therefore, many bears anticipate that AT&T will lose its status as one of the key dividend aristocrats.However, it's important to point out that telecoms usually have extremely large depreciation and amortization costs. That artificially depresses earnings, which makes the high payout ratio somewhat deceptive.Still, I concede the point that T stock is saddled with an unprecedented debt level. Its big-moat, slow-growth narrative is distracting, especially when we may be headed toward a recession.That said, this criticism focuses on the headline print. In reality, AT&T is one of very few companies that have the resources and know-how to roll out the 5G network. And because we're in a tech cold war with international adversaries, I see the government supporting T stock big time. 3M (MMM)Source: Shutterstock Dividend Yield: 3.69%Last on my list of stocks to buy now is applied-sciences firm 3M (NYSE:MMM). After providing largely steady gains over the last several decades, MMM stock is in trouble.Hitting a peak around February of 2018, shares have formed an ugly bearish trend channel. Efforts to time the bottom have badly bruised speculators, especially after the 2019 April peak that preceded a massive nosedive.Surely, I'm not alone when I say that I dislike the phrase "this time, it's different." It's almost bad karma to use those words when discussing an investment thesis. However, I genuinely believe that with MMM stock, this is a valid descriptor.One of the toughest challenges for MMM stock is that the underlying company didn't have a relevant product. That calculus has changed with their latest "Flex & Seal Shipping Roll." Essentially, this is a customizable shipping package that doesn't require tape or other cumbersome equipment.Looking at the video demonstration of Flex & Seal, I think it's a game-changer for retail. By logical deduction, then, it's a game-changer for MMM stock.As of this writing, Josh Enomoto is long T stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Large-Cap Stocks to Give a Wide Berth * 7 Potential New Stocks That Should Not Go Public * 5 Chinese Stocks to Buy Surging Higher The post 8 Dividend Aristocrat Stocks to Buy Now appeared first on InvestorPlace.

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Initially, many optimists viewed Luckin Coffee (OTCMKTS:LKNCY) as China's answer to Starbucks (NASDAQ:SBUX). Certainly, it was a bold move as China is not exactly what you call a coffee-drinking culture. Nevertheless, Luckin stock enjoyed a remarkable performance, particularly when relations between the U.S. and China improved following bitter escalations of their trade war. Then, everything changed.Source: Keitma / Shutterstock.com As you know, the novel coronavirus ravaged China, shuttering its economy as its government went into full lockdown mode. But Luckin didn't do itself any favors when an ugly accounting scandal was exposed. This was particularly problematic because LKNCY is a growth stock, and growth was what Luckin lied about. Not surprisingly, investors didn't take too kindly to the company fabricating sales.Since the Nasdaq exchange delisted Luckin stock, some bold contrarians have speculated that it could be a turnaround play. Personally, I think the "exoticness" of the China play has caused western and non-Chinese investors to see opportunity where it doesn't exist.InvestorPlace – Stock Market News, Stock Advice & Trading TipsHere's a thought: the Chinese are first and foremost human beings. As such, they don't like to be lied to, which is a completely understandable reaction.Nevertheless, as our own Patrick Sanders pointed out, there is a limited rationale behind the bull case for Luckin stock. In summary, the underlying company's reconstituted board could take the organization private, then launch an initial public offering in China or Hong Kong for a higher valuation. Also, Luckin's convertible debt is trading for pennies on the dollar. * 10 Cybersecurity Stocks We Need Now More Than Ever Admittedly, the idea of wagering on one of the most despised companies as a contrarian move has a "bad boy" appeal. But given the deteriorating relations between the U.S. and China, I'm not inclined for unnecessary drama. A Deluge of Ugliness Awaits Luckin StockAs you've undoubtedly heard, the U.S. ordered China's consulate in Houston, Texas to be closed. According to the New York Times, the Chinese government retaliated, ordering the U.S. to close its consulate in the southwestern city of Chengdu.It's the type of back-and-forth accusations that we've seen throughout the trade war. What makes Luckin stock optically unsightly is that the coffee shop makes the Chinese spin doctors lose credibility. Still, that's not why I'm pessimistic about LKNCY.Rather, this diplomatic row is the last thing that either country needs right now. But the matter may end up hurting the Chinese economy more. Prior to the pandemic, the Wall Street Journal reported last year that China's slowdown posed challenges to American companies. Further, Chinese consumers began closing their wallets, a practice many weren't accustomed to during years of China's economic miracle.Of course, the coronavirus completely disrupted Chinese consumption. And as an export-driven economy, this new beef with the U.S. will likely be deflationary to the Asian juggernaut.After all, the trade war made American companies question exposure to China. Now, the Covid-19 pandemic, along with China's belligerence, has made this question priority number one among major multinationals. Invariably, less international investments will lead to fewer jobs. Thus, there's every incentive to save money, not spend it.Also, another WSJ article states that "The unemployment rate among college graduates aged between 20 and 24 climbed to a record high of 19.3% in June." Essentially, this is Luckin's target demographic. So, if young, progressive Chinese consumers are hurting, that doesn't augur well for Luckin stock.And for every demo, the easiest thing in the world to do is to cut back on extraneous purchases. You can buy coffee for cheaper at the grocery store. It's Not Exactly a BargainWhen you think of Chinese-made products, "cheap" is probably the first attribute that comes to mind. We live in a Walmart (NYSE:WMT) world where Chinese sweatshop labor subsidize our relatively extravagant lifestyle.Therefore, I became curious: how much does it cost to buy a cup of Luckin coffee?Unfortunately, Luckin's website was down when I attempted to research this topic. However, a Qz.com article from May 2019 revealed that some drinks range from 24 yuan to 27 yuan (in 2020 dollars, that's $3.42 to $3.85).Frankly, I was rather shocked at these price points. The most expensive beverage at my local Starbucks is priced only 36% higher than the 27-yuan Luckin drink. But the average U.S. salary is around $57,000. According to Statista.com, an urban Chinese employee makes on average the equivalent of $11,746. Coincidentally, that's a 385% differential.In other words, Luckin sells to an exclusive demographic, which is not suitable for its mass-growth strategy. Add in the geopolitical crisis on top of an economic one and you can see why I don't care for Luckin stock.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. 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 Luckin Coffeea€™s Hopes for a Recovery Got Trumped appeared first on InvestorPlace.

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