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

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

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

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

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

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

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Chinese premium electric vehicle maker NIO (NYSE:NIO) has taken off like a rocket ship in 2020, with NIO stock surging nearly 600% from a low of ~$2.40 in March, to a high of ~$16.40 in July. Because I was bullish on NIO stock down at the lows, many investors have asked me: what's the next electric vehicle stock ready to fly higher? The answer may be AYRO (NASDAQ:AYRO) stock.Source: buffaloboy / Shutterstock.com Texas-based AYRO is a nascent, freshly public, $90 million specialized EV maker with not much to show from a financial perspective. But the company finds itself at the epicenter of one of the EV market's most explosive verticals, with a compelling product portfolio, a unique and expansive distribution network and a clear opportunity to turn into a multi-billion-dollar EV giant within the next few years.Of course, this micro-cap stock is risky. But I think AYRO stock is worth the risk. Because, if things go right, AYRO stock could supercharge your portfolio over the next few years, in the same way NIO stock has over the past few months. Here's a deeper look.InvestorPlace – Stock Market News, Stock Advice & Trading Tips The Coming LSEV RevolutionThe electrification of transpiration promises to be one of the defining megatrends of the 2020s. In short, by the end of the decade, upwards of 20% of all vehicles globally will likely be zero-emission vehicles. That number will trend towards 100% over time. * 15 Growth Stocks That Are Being Propped Up By Low Rates One burgeoning yet often overlooked hyper-growth vertical of the EV market is what insiders call purpose-built, low-speed electric vehicles, or LSEVs. I'm talking three-wheel electric cars, electric golf carts, e-scooters, campus security EVs, so on and so forth.You might be thinking "OK, those are cool and all, but this is a niche market, isn't it?"Not really. Globally, there are about 40,000 golf courses, over 25,000 universities, over 200,000 hotels, nearly 18,000 airports, and countless more corporate campuses, fire stations, event stadiums, etc.Pretty much all of those properties use at least one and often several small, purpose-built vehicles — like golf carts or food trucks — meaning there are, at least, hundreds of thousands and likely millions of these small vehicles in the world. Most of those vehicles are gas-powered today.Almost all of them will be electrified over the next decade, as institutions strive to cut down carbon emissions and eliminate fuel costs.Thus, over the next several years, EV companies will sell hundreds of thousands of LSEVs to golf courses, universities, hotels, airports, corporations, stadiums, so on and so forth.To that end, the LSEV revolution will be huge. Like almost $25 billion huge. And companies exposed to this LSEV megatrend will see their revenues, profits and stock prices soar higher. Meet AYROReaders of mine are familiar with three-wheel EV pioneer Arcimoto (NASDAQ:FUV). It's a company which I've pounded the table on before as a great way to play the LSEV megatrend.FUV stock — like NIO stock — has been a big winner in 2020. Year-to-date, FUV stock is up about 300%.But, one freshly-public, under-the-radar, micro-cap LSEV company which the market is sleeping on is AYRO.Founded in 2017 (and only public since May 2020, following a merger with DropCar), Texas-based AYRO is a young, $90 million company that's in the top of the first inning of a huge, multi-year growth narrative.Here's the story. On the Cusp of Breakthrough GrowthAYRO has two LSEVs.First, there's the Club Car 411, a compact, four-wheel EV that looks like an electric golf cart and is built for cross-purpose use across a variety of end-markets, such as a security EV on college campuses or a transportation EV for resorts. Then there's the AYRO 311, a three-wheel EV designed specifically for last-mile delivery.AYRO hasn't done much of anything yet. Revenues in 2019 were under $1 million.But the company has scored a hugely valuable, strategic partnership with Club Car — a subsidiary of the $12 billion conglomerate Ingersoll Rand (NYSE:IR) and one of the world's leading suppliers of golf carts and small utility vehicles to golf courses, universities, and the like.Thanks to this partnership, AYRO's Club Car 411 is now being pushed through Club Car's extensive and established global dealer distribution network.The implication is that, over the next few years, AYRO's Club Car 411 could start to land some pretty big contracts with universities, golf courses, and hotel properties as those organizations join the small vehicle electrification wave.Winning those contracts will help AYRO grow its brand and reputation as a top-tier LSEV provider early on in the LSEV revolution. Such branding power will enable AYRO to develop first-mover's advantage in the space. The company can then turn that first-mover's advantage into sustained leadership through word-of-mouth recommendations (universities talk) and more contract wins.Management can subsequently lean into the company's branding power to more efficiently drum up interest for and sell its AYRO 311 vehicles to restaurants looking to build out their own delivery networks, at a time when delivery is of increasing importance (thanks, Covid-19) yet food delivery platforms like GrubHub (NYSE:GRUB) are eating into restaurant profits (in many case, they cut into restaurants' profits by 30%).Big picture: AYRO is on the cusp of going from selling a handful of LSEVs in 2019, to potentially selling tens of thousands of these vehicles per year over the next few years. The Next NIO?To be clear, NIO sells premium passenger EVs. AYRO sells affordable, purpose-built, utility EVs. The two markets don't really overlap.But in terms of percent returns, AYRO stock could end up looking a lot like NIO stock.AYRO just expanded its Austin factory from 10,000 square feet to 24,000 square feet. The company did so because demand trends had outpaced AYRO's production capacity, which was sitting at 200 vehicles per month. The new factory can churn out 600 vehicles per month.Relative to the addressable market — which I see as potentially millions of LSEVs — that's still a tiny number.Given the company's strong product line-up and expansive distribution network, as well as strengthening demand tailwinds for zero-emission transportation, I can easily see AYRO outgrowing this new factory rather quickly, and scaling to several thousand LSEV deliveries per month.Realistically, I think AYRO could grow to 30,000+ LSEV deliveries per year. At $20,000 per vehicle, that equates to $600 million in revenue. Gross margins on the vehicles should round out to ~25%. The opex rate will likely wind up at 15%. Operating margins should clock in at 10%. On $600 million in revenues, that implies $60 million in profits.A market-average 17-times multiple on that equates to a potential future valuation for AYRO of $1+ billion.That implies huge, 1,000%+ long-term upside potential in AYRO stock. Beware of the RisksAYRO stock is not without risks.This is a tiny company. With a minimal track record. In a highly competitive space. With no guarantee that things will plan as I expect them to.Concurrently, AYRO stock is a micro-cap. That's less liquid than something like Tesla (NASDAQ:TSLA) stock. Less liquidity implies bigger downside risks in the event that things don't go as planned, or if underlying fundamentals start to meaningfully deteriorate.In other words, this is a speculative stock. It's not for your lunch money. Bottom Line on AYRO StockNIO stock has been a huge success in 2020. But the valuation on the stock now implies that the best of that mega-rally is over.So if you're looking for the next NIO stock, AYRO stock could be your answer.This micro-cap company appears to be on the verge of breakthrough growth in the explosive LSEV market over the next few years. If management successfully executes against the company's compelling market opportunity, then AYRO stock could turn into a ten-bagger.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been rated one of the world's top stock pickers by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he was long NIO. 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 The Next Big EV Stock to Buy Might Just Be AYRO appeared first on InvestorPlace.

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Gold has moved to an all-time high, and many gold miners have rallied in response. But, somewhat quietly, silver stocks have gained as well.A move higher in the underlying commodity no doubt has helped. Indeed, save for a brief move last year, silver trades at its highest level in almost four years. And there's a case that silver stocks should continue to rally and potentially outperform its more valuable and more widely-held counterpart.To be sure, the setup for gold at the moment seems almost perfect. The coronavirus pandemic adds risk worldwide, and can lead investors to the safety of the yellow metal. A ballooning federal deficit, along with interventions by the Federal Reserve, raise the specter of inflation — another bullish catalyst for gold.InvestorPlace – Stock Market News, Stock Advice & Trading TipsBut silver and silver stocks, can benefit for similar reasons. Indeed, they have: silver has rallied some 65% from March lows. Meanwhile, silver can get a boost from industrial demand as well, meaning it might outperform if the global economy manages to recover. Electric vehicles and solar panels both require silver, which could drive demand in coming years as well.At the least, precious metals investors can look to the group for diversification. For those investors, here are eight silver stocks that deserve at least a long look: * 15 Growth Stocks That Are Being Propped Up By Low Rates * Pan American Silver (NASDAQ:PAAS) * Endeavour Silver (NYSE:EXK) * MAG Silver (NYSEAMERICAN:MAG) * Fortuna Silver Mines (NYSE:FSM) * Wheaton Precious Metals (NYSE:WPM) * Silvercorp Metals (NYSEAMERICAN:SVM) * First Majestic Silver (NYSE:AG) * iShares Silver Trust (NYSEARCA:SLV) 8 Silver Stocks: Pan American SilverSource: Shutterstock The simplest play among silver stocks is to go with the biggest play. As far as U.S.-listed names go, that's Pan American Silver.Pan American admittedly isn't the world's largest producer. That honor goes to Mexico's Fresnillo plc (OTCMKTS:FNLPF). In fact, despite its name, Pan American isn't even a pure-play silver stock.Revenue recently has been tilted more toward gold. But last year's acquisition of Tahoe Resources added substantial silver reserves, Tahoe's Escobal mine is the world's second-largest.After that deal, almost half of reserves come from silver. But regardless of where its revenue has come from, PAAS stock is a winner. The stock has rallied over 300% in the last five years, far outpacing gains in silver or gold.That's what miners are supposed to do: outperform the commodity when it rises. But as I've written relative to gold miners like Barrick Gold (NYSE:GOLD), the industry often has failed to provide that leverage.The fact that Pan American has delivered on its promise makes it a solid pick for silver bulls going forward. The diversification of the portfolio, and industry-leading all-in costs, provide downside protection as well. As far as long-term, "set it and forget it" picks in the mining space go, PAAS is at or near the top of the list. Endeavour SilverSource: Shutterstock Of course, there's a cost to Pan American's diversified portfolio and lower risk. It means lower reward as well. For ardent silver bulls, there are other choices in the sector that might be more appealing.One of those is Endeavour Silver. The Canadian company operates three mines in Mexico, is developing another, and has six properties in the midst of exploration projects. Reserves and revenue are more tilted toward silver, though Endeavour produces gold as well.The potential rewards here from a bounce in silver are greater than those at a miner like Pan American, given Endeavour's smaller size. But the risks are higher, too. Endeavour's execution hasn't always been on point: EXK stock is flat over the last three years despite a 20% increase in silver. Two of the three operating mines are in the midst of improvement efforts, which may or may not pay off. * 10 Work-From-Home Stocks That Are Beating the Pandemic Like most junior miners, EXK is a high-risk play. But as far as silver stocks go, few, if any, offer higher potential rewards. MAG SilverSource: Shutterstock MAG Silver offers an intriguing play on a massive project in Mexico. MAG owns 44% of the Juanicipio mine in the state of Zacatecas. Juanicipio lies in a region long known for its resources: mining has gone on in the area since the 1500s.Early exploration suggests that Juanicipio could be an enormous project, with high-grade silver as well as gold, lead, and zinc. MAG Silver has to fund its share of the costs — some $46 million in 2019 — but Fresnillo will operate the mine. With $130 million in cash and no debt, MAG should be able to contribute its share of costs until the mine is up and running.From that point, MAG will have options. It could leverage that asset to become a larger silver operator, much like Pan American. It could sell its interest; Fresnillo could be interested in consolidating its holding. Regardless of how the story plays out, the combination of success in Juanicipio and a higher silver price could make MAG one of the biggest gainers among silver stocks. Fortuna Silver MinesSource: Shutterstock For some investors, Fortuna Silver Mines might be a 'Goldilocks' play among silver stocks. The miner remains relatively small, with a market capitalization just under $1 billion, even with FSM stock at its highest level in almost two years.But it's not an early-stage play. Fortuna is established and profitable. Price-to-earnings multiples aren't the best way to judge mining stocks, but a 16x forward P/E multiple, and a price at about 1.3x book, both suggest valuation is reasonable.Fortuna will have some short-term issues to work through. Production in Mexico took a hit in the first half of the year amid closures driven by the coronavirus pandemic. The company is spending significant amounts of capital to complete its Lindero mine in Argentina, which already is well over budget. * 8 Presidential Election Stocks to Buy in Case Trump Wins Again On the other hand, there's the chance for significant upside. Lindero offers potentially huge reserves, and should improve profitability nicely in 2021 and beyond. Normalized production at the Mexican properties can help as well. Particularly if silver keeps rallying, FSM can be a big winner. Wheaton Precious MetalsSource: Shutterstock Wheaton Precious Metals formerly was known as Silver Wheaton, but as its portfolio shifted, the company changed its name to account for the new reality. According to a presentation this month, 53% of production over the next five years should come from gold, against just 40% for silver.Still, WPM stock does offer solid exposure to silver through a proven business model. Wheaton is a so-called streaming company, which funds exploration mines in exchange for a share of sales once production commences.It's a model executed well in the gold space by Royal Gold (NASDAQ:RGLD) and Sandstrom Gold (NYSE:SAND), but WPM stock has held its own. Over five years, the stock has more than tripled, and nearly matched the returns in SAND. Both names have sharply outperformed the more widely-held RGLD, which has 'only' doubled.Because of the portfolio, investors interested in WPM stock do need to be bullish on gold as well. But the value of the streaming model has been proven, and if silver outperforms gold Wheaton should outperform its rivals. Silvercorp MetalsSource: Shutterstock Silvercorp is an interesting pick among small-cap silver stocks. Silvercorp's three mines are located in China, and produce mostly silver along with lead and zinc.SVM stock isn't likely to be the biggest winner going forward, but it's been the biggest winner among silver stocks in recent years. Shares have risen more than 500% over the past five years as the mines have reached production and driven impressive free cash flow.The operational profile should continue to be solid, even if the stock isn't likely to gain another 500% going forward. Silvercorp has no debt. The mines should have at least 15 years of life remaining, according to the company. * 9 Stocks to Buy for a Wild Ride in July As a result, SVM presents a solid leveraged bet on the silver price. Its upside at this point probably doesn't match that of EXK or even MAG, but solid execution and a debt-free balance sheet minimize the downside as well. First MajesticSource: Shutterstock One reason to keep an eye on AG stock is that it's been somewhat left out of the rally in the industry so far. Shares are down 12.5% year-to-date, while silver is up about 9% and other silver stocks have gained at least 10%.Like Fortuna, First Majestic is taking a bit of a hit this year: its three producing mines all are in Mexico. But the company should get back to normal, which should be good for the stock. Over time, the stock has been a huge winner, with a nearly 1,400% return since going public.Bears have cited some concerns about underinvestment, and AG stock has seen unsustainable rallies in the past (notably in 2016). But as a mid-cap pick, AG still is worth a long look. iShares Silver TrustSource: Shutterstock Of course, investors can also buy the silver through an exchange-traded fund like SLV. The ETF does have an annual fee of 0.50%, but physical ownership entails cost (and risk) as well.With silver prices rising, there's perhaps a case that the rally has gone too far. But, again, secular trends suggest demand should rise. Production may not be keeping pace. And inflation, so often cited as a tailwind for gold, could benefit silver as well.The more aggressive way to play the metal is through silver stocks, which offer upside leverage. But those stocks also introduce execution risk. For some investors, the best strategy may be to keep it simple. For that strategy, SLV fits the bill.Vince Martin has covered the financial industry for close to a decade. He has no positions in any securities mentioned. 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 8 Silver Stocks to Consider If Gold Isn't Your Thing appeared first on InvestorPlace.

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Shares in Nikola Corp. (NKLA) plunged almost 15% in extended market trading on Friday as the maker of hydrogen-fueled vehicles filed an offering to sell 23.9 million shares of common stock.The stock dropped to $41.78 in after-market trading on Friday. According to the SEC filing, the 23,9 million shares of common stock are issuable upon the exercise of 890,000 warrants originally issued in a private placement in connection with the initial public offering of VectoIQ and up to 23 million shares. The company expects to receive $11.50 per warrant and generate up to $274.7 million from the exercise of the warrants.In addition, the preliminary share prospectus disclosed that shareholders may offer from time to time to sell 53.4 million shares of common stock.Since Nikola went public on June 4 via a merger with VectoIQ, the stock soared from below $15 before the deal was announced to $48.84 at the close on Friday. Shares in the company, which plans to manufacture hydrogen-electric trucks but has not yet produced or sold any vehicles, have plunged 28% over the past month.J.P. Morgan analyst Paul Coster this month raised NKLA to Buy from Hold and maintained a $45 price target, saying that the stock is “starting to look attractive for long-term investors”.“We believe the stock does not fully price in successful execution of the multi-year growth strategy, which yields earnings power of ~$1.7bn EBITDA in 2027,” Coster wrote in a note to investors. “We could get less constructive in a hurry, if the firm fails to execute to plan, or if competition ratchets up faster than we anticipate.”The analyst pointed to a “number of potential positive catalysts in coming weeks and months” such as a partner to produce its Badger pick-up truck, plans for hydrogen charging stations in the UK, and “potentially accelerated implementation plans for the FCEL truck in the U.S”.For now NKLA has four analysts covering the stock, who are divided between 2 Buy ratings and 2 Hold ratings adding up to a Moderate Buy consensus. The $56 average price target puts the upside potential in the shares at 15% over the coming year. (See NKLA stock analysis on TipRanks).Related News: Tesla Car Registrations In California Sink 48% in Q2 – Report Tesla Climbs 6% In Pre-Market, Boosted By ‘Accelerating’ China Projects Tesla’s Elon Musk Overtakes Buffett On Billionaires Rich List More recent articles from Smarter Analyst: * Top Ships (TOPS): Potential Newbuild Delivery Delays Put This Analyst on the Sidelines * Celsion (CLSN) Stock Loses a Wall Street Supporter * $1000 Is the Number to Watch for Shopify Stock, Says 5-Star Analyst * Q2 Semiconductor Preview: What to Expect

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They used to be shunned. Now, on any given day it seems Wall Street can't get enough of them. And I'm not discussing blue-chips or large-cap tech stocks. The reference is directed at recent "special purpose acquisition companies" or SPACs. And if investors are still turning a blind eye or aren't familiar with these stocks to buy, they might be missing out on the next big thing.Let me explain.The market has been on fire in recent months. Specifically, the likes of Apple (NASDAQ:AAPL), Tesla (NASDAQ:TSLA) and Amazon (NASDAQ:AMZN) are up double and even triple digits on the year and setting new record highs almost daily. It's crazy, right? Blame it on the Federal Reserve. But they're not alone and it's not the only reason either.InvestorPlace – Stock Market News, Stock Advice & Trading TipsOther companies such as Zoom Video (NASDAQ:ZM), Teladoc (NYSE:TDOC) or Peloton (NASDAQ:PTON) have also seen their businesses boom in today's more socially distanced novel-coronavirus-based work, life and play environment. Those stocks are also sporting big-time returns and even larger valuations. The combination ensures they'll be on the radars of investors trying to keep up with the Jones' for some time to come. * 15 Growth Stocks That Are Being Propped Up By Low Rates However, there is another group of stocks to buy — consisting of SPACs — that is making unprecedented inroads with investors too. This group includes: * DraftKings (NASDAQ:DKNG) * Virgin Galactic (NYSE:SPCE) * Workhorse (NASDAQ:WKHS)SPACs have seemingly crashed onto the scene overnight. The reality is they're far from new. But a handful of high profile business acquisitions in popular industries and/or dearly held themes by investment firms, followed with reduced paperwork and less onerous listing requirements have pushed SPACs into the spotlight as IPO alternatives. At the end of the day, the merged company is a new stock for investors to buy, sell and, on occasion, avoid altogether. Right now, let's take a look at above group of SPACs, which are setting up as stocks to buy for tomorrow's investors. SPAC Stocks to Buy: DraftKings (DKNG) Source: Charts by TradingViewIn the booming trend of online sports betting, DraftKings stock is a hot property. Between the company's hugely popular Daily Fantasy Sports leagues and NFL partnership, DraftKings' opportunities are enormous as states look to legalize sports betting and put a little something in Uncle Sam's coffers.DraftKings' capitalization of more than $12 billion and nosebleed price multiple may seem a certain recipe for a knockdown or two. And it has already happened over the past month. DraftKings' shares retraced a full 50% of its recent rally to all-time-highs. But as with any company in an advantaged spot inside an emerging market, shares are also poised to grow beyond today's fears.Technically, this week's bullish bottoming candlestick in DraftKings is hinting strongly that those betting on red have left the premises.It's worth going long in this stock if shares find modest follow-through next week to confirm the corrective low. Given the stock's volatility, I'd also advice using a limited risk spread or outright call option to enhance the risk-to-reward profile in this stock to buy. Virgin Galactic (SPCE) Source: Charts by TradingViewSir Richard Branson's space tourism venture needs no introduction and it has been on many investors' lists of stocks to buy lately. From the get-go shares have been a highly active battleground stock. But the company's plans of putting civilians into zero gravity are ever closer to becoming a reality later this year. And this week's CEO appointment of Disney (NYSE:DIS) exec Michael Colglazier should prove instrumental in ensuring all systems are go. * 7 New Stocks to Buy for 2021 and Beyond On the weekly price chart a meteoric rally in early 2020 followed by a healthy correction now finds SPCE stock blasting higher in an emerging uptrend within the right side of the crater-sized base. I'd expect this SPAC stock to buy to see a bit of profit-taking next week. But be sure to keep it on the radar for pullback opportunities. My best guess is any price weakness should prove short-lived. Workhorse (WKHS) Source: Charts by TradingViewThe last of today's SPAC stocks to buy is Workhorse Group. Many investors are familiar with fellow SPAC play Nikola (NASDAQ:NKLA) and the company's promise of bringing electric trucks and semis into the market. Those plans are only in the prototype stage of what could be a long and ultimately unsuccessful build.For investors wanting something more tangible within this exciting market, there's Workhorse. The company is already delivering on its electric cargo vans and pickup trucks with orders from the likes of United Parcel Service (NYSE:UPS) and Germany's DHL (OTCMKTS:DPSGY). But there's more to WKHS too.Workhorse maintains a comparatively lithe market cap of around $1.50 billion and offers investors a well-positioned drone delivery business. The company's 10% stake in privately held Lordstown Motors, whose Endurance electric truck is making some noise, could also prove to be a big win. And there's the possibility the company lands a piece of the United States Post Service next-generation vehicle contract, estimated at $6.3 billion.All told, there's a lot to like about this SPAC stock. And that includes the price chart too.Technically, shares are putting together a decent-looking corrective triangular base. The pattern has found support off the 38% retracement level of its month-long rally. Specifically, this rally was established in June, immediately after shares were re-engineered into Workhorse. I'd advise buying WKHS stock, along with a protective put or collar strategy, if shares can maintain its chart supports and motor back above $16.25 along with a bullish crossover in stochastics in tow.Disclosure: Investment accounts under Christopher Tyler's management do not own any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. 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 3 Special Purpose Acquisition Companies That Have Become Stocks to Buy appeared first on InvestorPlace.

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